How is this price gouging? Its called supply and demand!

[88horizon5speed]

Amazon is price-gouging Pixel XL buyers to the tune of over $1,500

I don't understand how people think this is wrong? The phone is selling at a higher rate than it can be supplied. Therefore price goes up because its obviously a desired good. Obviously whoever wrote the article has never taken an economics class before....

I don't think its wrong, it may suck for those who can't shell out the money (or who don't like having contracts either carriers) but this is how it works. If many people desire a good that is in low demand then the price of the good rises because people WILL and DO pay for their desire. If they wouldn't pay....the price wouldn't have risen...

 

[Aquila]

It's not "wrong" if you are talking math or ethics. What it is, is inconvenient to customers who are hoping to spend a more reasonable amount when compared to the MSRP.

You could make an argument that it is unethical for Amazon as a seller to do so, because they are an official partner for so many Google Products... But Amazon prices aren't set by humans, that's an algorithm reading the market. But even if it were 100% human driven, we wouldn't be able to ignore that Amazon is also a major competitor to google, especially in the emerging AI space and has an interest in google AI products not being in consumer hands.. they want you to buy Alexa products.

 

[IAmSixNine]

Saw the same thing with the Pokemon Go watch and nes classic. Low amount of initial quantities led to lots of people selling them for higher amounts.

 

[anon(5630457)]

It's nothing but a cash grab. The Pixel XL 128GB is only worth ~$869. For Amazon to charge upwards of $1,500 for it is unforgivable. I gave them an unfavorable review for doing that.

 

[anon(847090)]

F amazon. the stocks are getting replenished now. google is just stupid to not make use of the demand.
HTC clearly is selling less of their handsets and they have the capacity to make more in just 2 weeks time.
why cant google just add more devices. apple and samsung know how to sell devices.
google still havent learned from all nexus sales. and this makes me really angry.

good news is that many are now showing shipping in 4 days verizon has devices now but google store is still missing some varient.

they could have done better

 

[Wiley_11]

“An item is only worth what someone is willing to pay for it”


Buy local.............

Amazon is going to kill more American jobs than China did - MarketWatch

 

[ctk4949]

I sold a couple of Pixel XL 128GB for $1300

 

[B. Diddy]

I'm not an economist, but I would agree that this isn't how a retailer should be selling goods. Supply and demand can certainly affect prices, but a retailer shouldn't be acting in the same volatile way as an auction site or a commodities exchange. If they want to hike the prices like that depending on micro-changes in supply and demand, then perhaps they should create their own auction-type site.

 

[IAmSixNine]

Lets not forget Amazon is not selling them for 1500. Pavilion Electronics is selling it for $1399.00 as a listing on Amazon. But not sold by Amazon.

Also leaving negative feed back for a product just because you dont agree with the price is pretty lame. Just my opinion. This is not an item thats necessary for life. Its a Phone, a luxury phone, so if they want to price it like that let them. Dont buy it.

 

[Aquila]

As of yesterday people were freaking about the one that was sold and shipped by Amazon

 

[frozenchosin]

A thing or a service is worth whatever somebody is willing to pay for it. Doesn't mean that it's worth the same amount to anybody/somebody else. Gouging is in the eye of the buyer.

 

[cbreze]

It's still a free country and nobody's holding a gun to my head. Charge whatever they want, I'm not buying at a grossly inflated price.
As for leaving poor feedback, don't you have to buy it first in order to leave feedback?

 

[Amele]

It's called capitalism, buyer beware and really, anyone dumb enough to pay this for this phone or honestly any phone, deserves whatever they get.

 

[B. Diddy]

Here's a definition of price gouging: Price Gouging - Definition, Examples, Cases

"Price gouging is a term that refers to the practice of raising the price of goods, services, or commodities, to an unreasonable or unfair level. Such an increase in price is often a result of a sudden increase of demand and shortage of goods, such as in the event of a natural disaster or other crisis, and it is illegal in most jurisdictions.

In most states with price gouging laws, the act is defined by the presence of three criteria:


Emergency or Crisis Situation – applies to abrupt price increases during a time of disaster or other emergency
Essential Items or Services – applies exclusively to items or services that are essential to survival
Price Limit – sets a limit on the price that can be charged for essential goods or services"

So technically, it wouldn't be illegal price gouging, since none of those criteria are met (regardless of how much the desire to have the latest phone might be considered essential to the buyer). But it's still pretty lousy business practice.

 

[bhatech]

Huh? What am I missing. I don't see any ships and sold by Amazon listing. All are third party sellers on Amazon who charge whatever they want.
I'll find it hard to believe Amazon direct listing will be that price.

 

[cdd543]

Huh? What am I missing. I don't see any ships and sold by Amazon listing. All are third party sellers on Amazon who charge whatever they want.
I'll find it hard to believe Amazon direct listing will be that price.[/

Edit...I've never seen them either. Their post shows it as sold by amazon. Who knows.

 

[bhatech]

Yes you're correct. The whole article was written based on an item being sold by a third party and they didn't realize it. Same thing on Reddit. I pointed out the same thing, but people don't get that amazon can fulfill an item and not be the seller. I've been watching for pixel xl 128s there and have never seen one actually sold by amazon.

Hmm yeah even if it was from ships and sold from Amazon for few hours or minutes it would have been a mistake probably

 

[Aquila]

Hmm yeah even if it was from ships and sold from Amazon for few hours or minutes it would have been a mistake probably

On the day the OP's article came out it was listed as Amazon.

 

[Aquila]

This listing

 

[juliesdroidsync]

I sold a couple of Pixel XL 128GB for $1300

Assuming you paid less for them than that, all I have to say is, "YHWH Bless America". Entrepreneur on!

I wouldn't personally pay that, but who am I to say it's too much for someone else to pay?