At what point does it become...Tape Gouging ?

[Nathan Eldred]

I bought 18 reels of 2" right after the news of the Quantegy Alabama plant closing. The most I paid for any one reel was $169. Most were less, I bought from about 4 different places. I also bought about 17 reels of BASF 911 1/4", all for about what I normally ever paid $28-30 per reel.

The guy from Texas Tapeworks just called me 5 minutes ago, he just got a large shipment of 2" Quantegy 499 (which is what I was buying) and he was calling me back since he took my name down. He tells me $307 per reel (that is double his listed price of $154.XX and change which was posted online the day I called him -- he said "oh, the price online is wrong").
Keeping in mind, he paid the same price for these reels that he did. He basically said: he put his purchase order in long before they closed and he lucked out.

I also turned down 22 reels of 2" 499 at $199 each 2 weeks ago from a different retailer.

I'm not going to make any commentary, make your own judgement call here. Any one else?

[KennyLusk]

Well, it sounds like gouging to me.

Personally, I think any distributor that tries to take advantage of this temporary panic will find themselves with less of a customer base when all is said and done.

This won't last long.

[slowblue]

Agreed, unless he's leaving the business entirely why would anyone support his future business? Some may call it supply and demand but the PR hit far outweighs the gain he's going to make.

[prince turbo lung]

i have heard rumor of people paying $500 a reel in los angeles.

[i am monster face]

We've been keeping the same price at our store. And I think customers are very appreciative of that. We made on last large shipment, and since we know nothing of this new company, (as in if we will be blessed with as distributors or not), we've been selling discounted bulk to our customers. If they buy more, they get a better bulk price. We feel sorry for our best tape customers because they're losing part of their livelihood. Some of them have altogether abandoned tape already and gone digital. Wow, I hope we become dealers of that new company.

Ian

[bigtoe]

no real shock, but i think ebay will get nuts...that's where it's somewhat fair...free market insanity...i mean if you need it and it really is a bidding thing? nuts.

distributors should really keep in line with their old prices unless they've paid more from it. my tape distributor showed me their true colors a couple weeks ago. i found a new one that would get off their tail to even locate tape.

Mike

[snatchman]

Yeah, they will probablly try to do the same for Adat tape too..! ...

[rpowell]

Yeah, they will probablly try to do the same for Adat tape too..! ...

Doubtful, as there are several suppliers of S-VHS. Q didn't even make their own.

RP

[snatchman]

[Professor]

The dealer may well have paid the same price for the tape, but that doesn't mean he is obligated to pass it on at 10% over cost. He actually has to have the tape in-stock to sell it, and if a new company starts producing tape that has a dealer cost of $250 a reel, you would expect the company to have it in stock.
Think of gas stations. The prices change at the pumps BEFORE they have to purchase the next tanker delivery.
And then, what if tape sales are that company's livelihood? When the tape is gone you will be too. You probably won't be calling them for hard drives, so they may need to make the money they can before closing the doors.

Don't get me wrong, $300 is a lot to pay for a reel of tape, and that particular company has obviously decided that they are going to try and play the tape crisis in that way. For whatever reasons. It's a gamble to them. They offer you tape at $300 a reel and you'll either buy it, or you won't, or maybe you'll counter offer. You didn't buy it, but the next guy they call might have just called a dozen dealers who were out and will be willing to pay $400 a reel for the tape. And yes, maybe they will lose you as a customer, but then maybe they won't ever sell tape again anyway so you were already lost.

It's shitty that it's happening, but it is happening.

-Jeremy

[ladewd]

A box of 1/4" 456 pancakes just sold on ebay for $350! Damn that new tape better come out reel (sic) soon.

CA