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(MSN)   Teen "entrepreneur" allegedly scalped $1.7 million of goods during the pandemic, supposedly making $110,000 profit. Notably missing from article, how a 16-year-old got the capital to buy $1.7 million in goods   (msn.com) divider line
    More: Unlikely, Limited liability company, Max Hayden, Corporation, Price, Marketing, young consumers, Limited liability, Adolescence  
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2964 clicks; posted to Main » on 11 Jun 2021 at 2:20 AM (5 days ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



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6 days ago  
Hayden was quick to buy items that could go out-of-stock during the pandemic and resell them to willing customers for steep prices.


How is this legal?  He's certainly not helping anybody but himself.
 
6 days ago  

SoundOfOneHandWanking: How is this legal?


Capitalism.
 
6 days ago  
How is he selling items for double their cost but only making a 6.5% profit?  Either he's shipping everything under armed guard or he's sitting on tons of stock he can't move.
 
6 days ago  

Ivo Shandor: SoundOfOneHandWanking: How is this legal?

Capitalism.


1) Buy 10% of the water
2) Poison the other 90
3) Profit
 
6 days ago  
That is so much capital at risk for so little profit. He could have bought some rental houses and be rolling in the dough right now.

That's like grocery store margins.
 
6 days ago  

SoundOfOneHandWanking: Hayden was quick to buy items that could go out-of-stock during the pandemic and resell them to willing customers for steep prices.


How is this legal?  He's certainly not helping anybody but himself.


It isnt. Price gouging during emergencies is illegal in every state.
 
5 days ago  

cman: SoundOfOneHandWanking: Hayden was quick to buy items that could go out-of-stock during the pandemic and resell them to willing customers for steep prices.


How is this legal?  He's certainly not helping anybody but himself.

It isnt. Price gouging during emergencies is illegal in every state.


I found the relevant statute.

2019 New Jersey Revised Statutes
Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices
Section 56:8-107 - Findings, declarations relative to excessive price increases at certain times.
Universal Citation:NJ Rev Stat § 56:8-107 (2019)
56:8-107 Findings, declarations relative to excessive price increases at certain times.
1. The Legislature finds and declares that during emergencies and major disasters, including, but not limited to, earthquakes, fires, floods or civil disturbances, some merchants have taken unfair advantage of consumers by greatly increasing prices for certain merchandise. While the pricing of merchandise is generally best left to the marketplace under ordinary conditions, when a declared state of emergency results in abnormal disruptions of the market, the public interest requires that excessive and unjustified price increases in the sale of certain merchandise be prohibited. It is the intention of the Legislature to prohibit excessive and unjustified price increases in the sale of certain merchandise during declared states of emergency in New Jersey.


It says 'certain merchandise'. It doesn't define specifics. I would guess that that refers to essentials such as food, water, medicine, medical and emergency supplies. According to the article he was selling video games, outdoor heaters, above-ground swimming pools, dumbbells and nail clippers. It could be that those items are exempt as they're nonessential. Maybe nail clippers are essential. I'd be pretty uncomfortable after a while if I didn't own one.
 
5 days ago  
Headline, as usual, is misleading. He made $110k ON TOP of the 1.7mil.
 
5 days ago  
So, the Young Republicans Club?
 
5 days ago  

SoundOfOneHandWanking: Hayden was quick to buy items that could go out-of-stock during the pandemic and resell them to willing customers for steep prices.


How is this legal?  He's certainly not helping anybody but himself.


How could it not be legal? He bought them legitimately then, once he owned them, resold them to willing buyers who were okay with paying more. We do that with houses all the time.
 
5 days ago  

jjorsett: SoundOfOneHandWanking: Hayden was quick to buy items that could go out-of-stock during the pandemic and resell them to willing customers for steep prices.


How is this legal?  He's certainly not helping anybody but himself.

How could it not be legal? He bought them legitimately then, once he owned them, resold them to willing buyers who were okay with paying more. We do that with houses all the time.


It's the same thing as people who buy up limited collectibles and then immediately turn around and resell them on eBay for inflated markups. You don't need a pandemic to be a selfish douche, just an ability to predict demand and a willingness to be a selfish douche.
 
5 days ago  

Kitty2.0: Headline, as usual, is misleading. He made $110k ON TOP of the 1.7mil.


...well yeah...that's how profit works.
 
5 days ago  

dyhchong: Kitty2.0: Headline, as usual, is misleading. He made $110k ON TOP of the 1.7mil.

...well yeah...that's how profit works.


Everyone in this thread thinks he only made $110k and took a bath on the 1.7 million.
 
5 days ago  

SoundOfOneHandWanking: Hayden was quick to buy items that could go out-of-stock during the pandemic and resell them to willing customers for steep prices.


How is this legal?  He's certainly not helping anybody but himself.


Lol

Wait no wait you're serious?

LOLOLOLOLOL

do you even America bro?
 
5 days ago  
Next up, a conservative podcast.
 
5 days ago  

Gordon Bennett: cman: SoundOfOneHandWanking: Hayden was quick to buy items that could go out-of-stock during the pandemic and resell them to willing customers for steep prices.


How is this legal?  He's certainly not helping anybody but himself.

It isnt. Price gouging during emergencies is illegal in every state.

I found the relevant statute.

2019 New Jersey Revised Statutes
Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices
Section 56:8-107 - Findings, declarations relative to excessive price increases at certain times.
Universal Citation:NJ Rev Stat § 56:8-107 (2019)
56:8-107 Findings, declarations relative to excessive price increases at certain times.
1. The Legislature finds and declares that during emergencies and major disasters, including, but not limited to, earthquakes, fires, floods or civil disturbances, some merchants have taken unfair advantage of consumers by greatly increasing prices for certain merchandise. While the pricing of merchandise is generally best left to the marketplace under ordinary conditions, when a declared state of emergency results in abnormal disruptions of the market, the public interest requires that excessive and unjustified price increases in the sale of certain merchandise be prohibited. It is the intention of the Legislature to prohibit excessive and unjustified price increases in the sale of certain merchandise during declared states of emergency in New Jersey.

It says 'certain merchandise'. It doesn't define specifics. I would guess that that refers to essentials such as food, water, medicine, medical and emergency supplies. According to the article he was selling video games, outdoor heaters, above-ground swimming pools, dumbbells and nail clippers. It could be that those items are exempt as they're nonessential. Maybe nail clippers are essential. I'd be pretty uncomfortable after a while if I didn't own one.


Bingo, non essential items do not count

Bread, milk, medicines, gas etc are covered

Everything else is what the market shall bear.

America!
 
5 days ago  

Kitty2.0: dyhchong: Kitty2.0: Headline, as usual, is misleading. He made $110k ON TOP of the 1.7mil.

...well yeah...that's how profit works.

Everyone in this thread thinks he only made $110k and took a bath on the 1.7 million.


Literally nobody in the thread said that.
 
5 days ago  

omnimancer28: Kitty2.0: dyhchong: Kitty2.0: Headline, as usual, is misleading. He made $110k ON TOP of the 1.7mil.

...well yeah...that's how profit works.

Everyone in this thread thinks he only made $110k and took a bath on the 1.7 million.

Literally nobody in the thread said that.


*waves hand* Maybe not the way you read it, but there is one comment lamenting a 6% profit on a million freaking dollars worth of stuff.

/could.still.be.drunk.don't.care.
 
Al!
5 days ago  

NikolaiFarkoff: He could have bought some rental houses



Not if he started with $500.
 
5 days ago  

Stile4aly: How is he selling items for double their cost but only making a 6.5% profit?  Either he's shipping everything under armed guard or he's sitting on tons of stock he can't move.


Those numbers point to heavy risk in an unstable business model.
 
5 days ago  

nytmare: Stile4aly: How is he selling items for double their cost but only making a 6.5% profit?  Either he's shipping everything under armed guard or he's sitting on tons of stock he can't move.

Those numbers point to heavy risk in an unstable business model.


He's flipping PS5s and hot tubs at 100% mark up.

Sound sustainable to you?
 
5 days ago  

Kitty2.0: omnimancer28: Kitty2.0: dyhchong: Kitty2.0: Headline, as usual, is misleading. He made $110k ON TOP of the 1.7mil.

...well yeah...that's how profit works.

Everyone in this thread thinks he only made $110k and took a bath on the 1.7 million.

Literally nobody in the thread said that.

*waves hand* Maybe not the way you read it, but there is one comment lamenting a 6% profit on a million freaking dollars worth of stuff.

/could.still.be.drunk.don't.care.


That's not how any of this works. He made 110k profit on top of 1.7 million on purchases. Including paying two employees 15 an hour. That doesn't mean 1.7 million was his working capital. It was total outgoing cash flow over a year spent on acquiring goods for resale. He could have started with a few grand selling hair clippers and was good at growing his business.
 
5 days ago  

Kitty2.0: *waves hand* Maybe not the way you read it, but there is one comment lamenting a 6% profit on a million freaking dollars worth of stuff.


And that's correct, too.

He had 1.7 million in revenue.  He made 0.11 million in profit, meaning he had 1.59 million in expenses, since profit is revenue minus costs/expenses.

0.11 / 1.7 is about 6.5% profit.
 
5 days ago  
I'm guessing his old man gave him seed capital.
 
5 days ago  
OK subby let me explain.

Buy something for $100 sell it for $200 - Now you have $200.
Now you buy something for $200 and sell it for $400. Now you have $40 to buy something worth $400.

Now you have bought a total of $700 worth of goods for an initial investment of $100.

I guess subby never played Lemonade Stand.
 
5 days ago  
Revenue = total income.
Profit = income - expenses.
Expenses include buying the items, shipping costs, labor costs, rent for his warehouse, etc.

6.5% may not sound like a lot, but it's $110,000, which is more than most adults make and an incredible amount for someone his age.  We also don't know if he paid himself before that profit is calculated or not.  Most business owners should pay themselves a salary and only count their profit as money the business made in addition to their pay.

For those complaining that 6.5% isn't a good profit, I'd point to Amazon.  Their total profit is almost always well under 3%.

I don't see anything wrong with what he's doing.  Every store you buy from makes a profit on that sale.  They buy it cheaper than they sell it for.  Just like he's doing.
 
5 days ago  

Gordon Bennett: cman: SoundOfOneHandWanking: Hayden was quick to buy items that could go out-of-stock during the pandemic and resell them to willing customers for steep prices.


How is this legal?  He's certainly not helping anybody but himself.

It isnt. Price gouging during emergencies is illegal in every state.

I found the relevant statute.

2019 New Jersey Revised Statutes
Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices
Section 56:8-107 - Findings, declarations relative to excessive price increases at certain times.
Universal Citation:NJ Rev Stat § 56:8-107 (2019)
56:8-107 Findings, declarations relative to excessive price increases at certain times.
1. The Legislature finds and declares that during emergencies and major disasters, including, but not limited to, earthquakes, fires, floods or civil disturbances, some merchants have taken unfair advantage of consumers by greatly increasing prices for certain merchandise. While the pricing of merchandise is generally best left to the marketplace under ordinary conditions, when a declared state of emergency results in abnormal disruptions of the market, the public interest requires that excessive and unjustified price increases in the sale of certain merchandise be prohibited. It is the intention of the Legislature to prohibit excessive and unjustified price increases in the sale of certain merchandise during declared states of emergency in New Jersey.

It says 'certain merchandise'. It doesn't define specifics. I would guess that that refers to essentials such as food, water, medicine, medical and emergency supplies. According to the article he was selling video games, outdoor heaters, above-ground swimming pools, dumbbells and nail clippers. It could be that those items are exempt as they're nonessential. Maybe nail clippers are essential. I'd be pretty uncomfortable after a while if I didn't own one.


You have teeth don't you? And if you can't reach your toes a helpful friend?
 
5 days ago  

SoundOfOneHandWanking: Hayden was quick to buy items that could go out-of-stock during the pandemic and resell them to willing customers for steep prices.


How is this legal?  He's certainly not helping anybody but himself.


Yep, but nobody bats an eye when a company does it
 
5 days ago  
Doesn't the stock market get you like 10% average over a year? My stocks do. Ish. Seems easier.
 
5 days ago  

NikolaiFarkoff: That is so much capital at risk for so little profit. He could have bought some rental houses and be rolling in the dough right now.

That's like grocery store margins.


This is what I was thinking.

Dude appears to be cutting it pretty thin which I guess means most people don't like paying double for /reads article...kinda/ ah, pool heaters.
I mean I know a pool heater is a super emotional buy but I'm glad folks can show restraint.
 
5 days ago  

asmodeus224: Gordon Bennett: cman: SoundOfOneHandWanking: Hayden was quick to buy items that could go out-of-stock during the pandemic and resell them to willing customers for steep prices.


How is this legal?  He's certainly not helping anybody but himself.

It isnt. Price gouging during emergencies is illegal in every state.

I found the relevant statute.

2019 New Jersey Revised Statutes
Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices
Section 56:8-107 - Findings, declarations relative to excessive price increases at certain times.
Universal Citation:NJ Rev Stat § 56:8-107 (2019)
56:8-107 Findings, declarations relative to excessive price increases at certain times.
1. The Legislature finds and declares that during emergencies and major disasters, including, but not limited to, earthquakes, fires, floods or civil disturbances, some merchants have taken unfair advantage of consumers by greatly increasing prices for certain merchandise. While the pricing of merchandise is generally best left to the marketplace under ordinary conditions, when a declared state of emergency results in abnormal disruptions of the market, the public interest requires that excessive and unjustified price increases in the sale of certain merchandise be prohibited. It is the intention of the Legislature to prohibit excessive and unjustified price increases in the sale of certain merchandise during declared states of emergency in New Jersey.

It says 'certain merchandise'. It doesn't define specifics. I would guess that that refers to essentials such as food, water, medicine, medical and emergency supplies. According to the article he was selling video games, outdoor heaters, above-ground swimming pools, dumbbells and nail clippers. It could be that those items are exempt as they're nonessential. Maybe nail clippers are essential. I'd be pretty uncomfortable after a while if I didn't own one.

Bingo, non essential items do not count

Bread, milk, medicines, gas etc are covered

Everything else is what the market shall bear.

America!


Yeah it isn't like they idiot from KY that bought out all the hand sanitizer from dollar stores in 2 states and tried to sell it at a huge markup. People actually needed it, this kid was just buying stuff people wanted to occupy their free time with. So kinda douchy but not full blown ahole.
 
5 days ago  

groppet: Yeah it isn't like they idiot from KY that bought out all the hand sanitizer from dollar stores in 2 states and tried to sell it at a huge markup. People actually needed it, this kid was just buying stuff people wanted to occupy their free time with. So kinda douchy but not full blown ahole.



Lets see, all the barber shops are closed, so lets buy up every set of hair clippers available and resell them at double the price. I'd say that qualifies as full blown asshole.
 
5 days ago  

NikolaiFarkoff: That is so much capital at risk for so little profit. He could have bought some rental houses and be rolling in the dough right now.

That's like grocery store margins.


Unless you inherit the rental unit, returns are typically 2-3% due to property taxes, maintenance, mortgage fees and interest, and the absurd 6% brokerage fees to sell.  If you bought a home with a mortgage in the last 20 years you have lost a substantial amount of money.  Of course relative to renting you got to keep a little bit of what you spent ;)
 
5 days ago  

Al!: NikolaiFarkoff: He could have bought some rental houses


Not if he started with $500.


buy the stuff get rid of it - it's gone smart kid

rental houses yuck

Turn and Burn Baby Turn and Burn
 
5 days ago  
In other related news, war profiteers are now being classified entrepreneurs.
 
5 days ago  

ReapTheChaos: groppet: Yeah it isn't like they idiot from KY that bought out all the hand sanitizer from dollar stores in 2 states and tried to sell it at a huge markup. People actually needed it, this kid was just buying stuff people wanted to occupy their free time with. So kinda douchy but not full blown ahole.


Lets see, all the barber shops are closed, so lets buy up every set of hair clippers available and resell them at double the price. I'd say that qualifies as full blown asshole.


I did miss that item, yeah he is an ahole. I actually did get clippers over the pandemic from Target and they were only $25 and came with all the attachments, the results have been mixed.
 
5 days ago  
That's an ad.
 
5 days ago  

groppet: ReapTheChaos: groppet: Yeah it isn't like they idiot from KY that bought out all the hand sanitizer from dollar stores in 2 states and tried to sell it at a huge markup. People actually needed it, this kid was just buying stuff people wanted to occupy their free time with. So kinda douchy but not full blown ahole.


Lets see, all the barber shops are closed, so lets buy up every set of hair clippers available and resell them at double the price. I'd say that qualifies as full blown asshole.

I did miss that item, yeah he is an ahole. I actually did get clippers over the pandemic from Target and they were only $25 and came with all the attachments, the results have been mixed.


I was able to get some clippers on Amazon for maybe $35(?), I don't remember. They charge via USB (weird), and work great on facial hair, but actual hair-hair? Not so much.
 
5 days ago  

leeksfromchichis: nytmare: Stile4aly: How is he selling items for double their cost but only making a 6.5% profit?  Either he's shipping everything under armed guard or he's sitting on tons of stock he can't move.

Those numbers point to heavy risk in an unstable business model.

He's flipping PS5s and hot tubs at 100% mark up.

Sound sustainable to you?


He was smart enough to anticipate the demand for "dumbbells and hair clippers, which became hot when gyms and salons closed." He's smart enough to move from PS5s to the next hot commodity.
 
5 days ago  
jaytkay:

He's also from a rich family most likely and the kind of asshole who would just double the price if commodities like a farking NES rpg shop than consider others.

A parasite.
 
5 days ago  

powhound: Doesn't the stock market get you like 10% average over a year? My stocks do. Ish. Seems easier.


Yes, but it depends what your principal is.

If the kid had $1.6 million lying around, this was a mediocre investment. He probably didn't.

If he started with, say, $10k, and ratcheted it up to $1.7 million, he may have spent $1.6 million along the way, but he got a 10,000% return on his principal.
 
5 days ago  

nmrsnr: powhound: Doesn't the stock market get you like 10% average over a year? My stocks do. Ish. Seems easier.

Yes, but it depends what your principal is.

If the kid had $1.6 million lying around, this was a mediocre investment. He probably didn't.

If he started with, say, $10k, and ratcheted it up to $1.7 million, he may have spent $1.6 million along the way, but he got a 10,000% return on his principal.


And suppose he didn't start with any cash at all and used a credit card for his initial seed money. My calculator says his return is "Er."
 
5 days ago  
Kid is going places.
 
5 days ago  

Kitty2.0: dyhchong: Kitty2.0: Headline, as usual, is misleading. He made $110k ON TOP of the 1.7mil.

...well yeah...that's how profit works.

Everyone in this thread thinks he only made $110k and took a bath on the 1.7 million.


No pretty sure you are the only one that thinks this.  Head line specifically says "profit" and that term means he recouped is $1.7M investment and had an additional $110K on top of that when all the dust settled.
 
5 days ago  

cman: It isnt. Price gouging during emergencies is illegal in every state.


No. No, it's not. Price gouging on essential items is illegal. He was selling PS2s and swimming pools.
 
5 days ago  

Northern: NikolaiFarkoff: That is so much capital at risk for so little profit. He could have bought some rental houses and be rolling in the dough right now.

That's like grocery store margins.

Unless you inherit the rental unit, returns are typically 2-3% due to property taxes, maintenance, mortgage fees and interest, and the absurd 6% brokerage fees to sell.  If you bought a home with a mortgage in the last 20 years you have lost a substantial amount of money.  Of course relative to renting you got to keep a little bit of what you spent ;)


I just went thru this exercise as someone wanted to rent my old house (we moved the week before Memorial Day and it went on the market this week as we had some stuff that wasn't feasible to do with our belongings still in it). I would have had to charge almost as much as what luxury 3BRs go for around here to cover the mortgage, taxes, utilities, insurance, and to have a buffer for maintenance, and it basically left enough to cover the taxes I would pay on the rental income. I'm guessing there are things in there we would be able to deduct to lower that tax hit, but I also really didn't want to have to deal with filing quarterly returns, a schedule C, maintaining a second property, getting calls in the middle of the night if there are issues, having to worry about tenants throwing parties and having cops show up, chasing ppl down for rent, etc.
 
5 days ago  
In the before time I remember reading a story about folks like this but they'd agressively search for crazy sales in box stores then resell the products online. Basically work out of their garages. This isn't much different except the kid is 16 and he zeroed in on products that would be popular during the pandemic. If he doesn't have a plan for the post-pandemic market then his business will probably falter.
 
5 days ago  

morg: In the before time I remember reading a story about folks like this but they'd agressively search for crazy sales in box stores then resell the products online. Basically work out of their garages. This isn't much different except the kid is 16 and he zeroed in on products that would be popular during the pandemic. If he doesn't have a plan for the post-pandemic market then his business will probably falter.


The linked article says that he started by flipping sneakers to sneakerheads. That's not a bad place to go back to since that entire sector is nuts. That being said, I always roll my eyes at these stories. For one thing, I don't love the idea of glorifying a kid who is making money while adding nothing to commerce. He's just exploiting people by profiting off of scarcity that he is helping create. He's goddamn Ticketmaster of pandemic items. Secondly, I'm always skeptical of these stories because the subjects are hustlers by nature, and part of these hustles is convincing people you're successful. Does he really make a six figure profit, or is that just a number he's reporting because a lower number wouldn't be newsworthy?
 
5 days ago  
Why is 'entrepreneur' in quotes?  This is literally how every asshole makes money.
 
5 days ago  

NikolaiFarkoff: That is so much capital at risk for so little profit. He could have bought some rental houses and be rolling in the dough right now.

That's like grocery store margins.


Grocery store margins are closer to 1 or 2%. 6% is actually pretty good. Most businesses are not Apple.

As for actual investment, I'm guessing he has access to a credit card. If he can pay off the balance each month, that gives him (time to end of billing cycle + time to payment due) weeks before he has pay for inventory at no interest. 

Then if he gets payment instantly by PayPal, venmo, etc, he can run (or at got started) with very little money of his own.

Yes, this is risky if he doesn't sell and collect payment before his bills are due, but it always works coontil it doesn't). He very easily could have moved $1.7m of merchandise and never had more than a few thousand cash on hand.
 
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