Second hand goods prices

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Technofreak

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#112796 20-Dec-2012 15:26

I've been lurking around on Trade me recently looking for a couple of items mainly electronic stuff. It really surprises me to see what some sellers expect to get when you see their buy now price etc. In many cases the buy now price is greater than or close to the current retail price. Sure in some cases they may have bought at a much higher price than this, case in point mobile phones.

My rule of thumb price for a second hand item is about half current retail price at least for the initial offer and generally no more than two thirds as a final price. My reasoning is there is a high likely hood the item has wear and tear, you don't know the history of the item, (it may have been dropped ), some accessories may be missing, it's very often an older model, and there is usually no warranty, i.e there is more risk buying this way and the price needs to reflect this.

The selling prices tend to reflect my rule of thumb especially for the items I have been looking at. The expensively priced items don't sell even when they are relisted several times.

With one item I was interested in recently I used the "ask a question" to point out the asking price was slightly higher than current retail and made an offer accordingly. Also as I didn't want my comments to taint the auction for the seller I told the seller only to reply to the question if they wished to take up or negotiate on my offer, otherwise leave the question unanswered. They answered my question and turned down my offer. How dumb was that, now all bidders can see my comments, who will bid on that auction now.

Another person also "asked a question" pointing out that my comments re the asking price were very valid. They were told not all of these items sold for the price I had mentioned, in other words the seller was saying "I paid more for this therefore I can expect someone to also pay a high second hand price. I don't think they understand how the market actually works.

I know we all want to get as much as we can when we sell something, but you have to look at what the market is saying it's worth and price accordingly. I have seen at least one item not reach reserve because it was priced to high, it got relisted with a different reserve and eventually sold for less than the highest bid for the previously unsuccessful auction. The old adage often applies, "The first offer is very often the best offer"

What do other Geekzoners pay for second hand items?

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#735582 20-Dec-2012 15:32

My rule of thumb price for a second hand item is about half current retail price at least for the initial offer and generally no more than two thirds as a final price.

+1, I follow exactly the same rule of thumb when either buying or selling... though I have sold a few things where the buyer is so pleased with the deal I wonder if I should have aimed higher ;-) Really depends on the item, age and whether it still has warranty left, etc.

doublehell

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#735617 20-Dec-2012 16:21

The price I'd pay depends on several factors:

1) The current price of the item locally, and/or bought online from overseas.

2) If the item is still under warranty, and how much longer the warranty is for.

3) The history of the item.

4) The type of item.

In general, no more than 50% of the new cost, if the item is out of warranty, and is a type of item that can be consumed by wear and tear. Even at 50%, I'd expect the item to be in excellent condition - at least 7/10 or 8/10.

If the item is still under warranty, I might go up to 75% or 80% of the lowest current and discounted retail price

For an SLR camera lens, I'd go up to 70% of the price of a new lens bought online from overseas.

On a side note - the 2nd hand trade me prices on apple gear is insane. Many would pay more than $200 for an out of warranty ipod touch, when the same item might be found on apple's refurbished item page for less - and come with a full 1 year warranty and new exterior shell.

reven

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#735620 20-Dec-2012 16:28

too often you see things that retail for around $900 on trademe with a buy now of around $700-$750 second hand. i wont buy those, i'll just buy it brand new for such a small saving.

it does make it good though if you want to sell something second hand at a fair price. eg i sold
- iphone 4 16gb for $450 last week, was on trademe for about 4 hours before someone hit buy now
- mbp 15" core i5, paid about $3k for it, sold it for $1200 buy now, it was about 2.5 years old, also sold within a few hours.

dclegg

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#735622 20-Dec-2012 16:36

reven:- mbp 15" core i5, paid about $3k for it, sold it for $1200 buy now, it was about 2.5 years old, also sold within a few hours.

OT: What were the exact specs for that? I'm thinking of upgrading my 2010 MBP, and am wondering what it would be worth if I sold it on TradeMe.

Its a 2.53GHz core i5 with 500GB 7200RPM HDD and after market 8GB RAM upgrade. Its in good condition, with the only external blemishes being slight wear and tear in the palm rest area, as its been my work machine for the last couple of years. Apart from that, no scratches or dents anywhere.

clicknz

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#735625 20-Dec-2012 16:40

yep - altho' I agree with the sentiments outlined above, I think you're forgetting the auction process (ie. emotions) and the fact that some people are not close to a big brand retailer and are happy for someone else to have 'broken in' a product for them and ship it to them in a provincial or rural location (or they are not fussed on that 'new gadget' aroma).
Also, with regard to the 'don't bother to answer my question if you don't want it to be seen' comment - they weren't being dumb - they were weighing up the prospect of other viewers of their auction speculating that your question may have been even more destructive to their auction than it actually was... remember that people see "1 unanswered question" if they don't answer - so I think you were setting out to rain on their parade by even mentioning a retail price and managed to do just that. An auction is an auction - you either participate or not - the market will decide what the price should be.

Cheers,
Mike

Photographer/Videographer clickmedia.nz

mattwnz

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#735629 20-Dec-2012 16:46

I find trademe is great to sell stuff, but not buy stuff. I was the highest bidder on one auction for a power tool which was over 10 years old and was in relatively poor condition, but works. The buyer wouldn't accept the offer because they wanted more, and the price they wanted was about half of the RRP of a brand new one. The thing is that they will probably get that price too eventually.With the RRP, you can usually get a discount of the price of a new one anyway.

gzt

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#735650 20-Dec-2012 17:11

Yes, many sellers are unaware of current retail prices and do not look before listing. I get the impression some choose to keep the item after becoming aware of the trademe market value. Personally this is a decision I make before listing ; )

On the other hand there are items that hold value. Anything in the last 4 years from Apple for example. As a price guide there are sellers offering 'refurbished' Apple items with 1 year warranty on both Sella and Trademe.

rayonline

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#735667 20-Dec-2012 17:51

Maybe they assume many people know prices as the large chain stores and negate the online stores. What I have seen is that some things are used, no warranty and they ask for 80% or what DSE sells ....

I don't buy used electronics. I use online stores in NZ or overseas. I also use flea bay as well. And I use them for a good couple of years, ie my PC is 4yrs old now and hasn't been upgraded at all.

The only electronic things I buy used or new on auctions is just things like cables, ports converters like PS/2 to USB but they're just like $6. I buy used stuff film cameras or those that date back to the 70s so they are cheap due to the demand.

Edit - if I were to buy a used item (electronic). Knowing they are in decent condition. 33% cheaper to the same item that is being sold today at the chepaer maybe online shops. And the item is something substantial. So not something like $20 wheen 33% is just $6.

kingjj

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#735671 20-Dec-2012 18:10

I buy very little from the likes of TradeMe and if I do its usually a specialist item that I can't easily get elsewhere, therefore I'm usaully more inclined to spend a bit more. +1 to technofreak's equation, half new value plus or minus for circumstances is a good base for most items, esp tech.

I've recently been shopping for a tablet so made TM one of my ports of call to see what the market value is. I ended up going to NL and using a discount to get a Samsung Tab and accessories for less than the price of several 2nd hand ones on TM. As a kid of the 90's I'm part of the "give me give me give me" generation, if I buy something I want it now so TM really doesn't suit!

I've only ever sold items on TM for $1 Reserve, either as I can't establish a fair market value or I want rid of the item. If it goes on TM then its not there to make money for me usually, therefore I'm happy to let the market decide its value.

freitasm

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Geekzone

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#735674 20-Dec-2012 18:20

I have seen many auctions for mobile handsets where the final bid for a USED phone was 10 - 15% more than a brand new one in store, with warranty, accessories, no scratches, etc.

Some people see an item on Trade Me and automatically think "bargain" without even checking retail prices.

What really annoys me is people as for a Buy Now price then don't buy. I don't bother, these days just reply "Keep biding".

On the other hand the impression I have is that some people buying on Trade Me try to push hard to get items very cheap so they can then either resell themselves or just go to Cash Converters and unload there for a minimum profit.

Technofreak

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#735683 20-Dec-2012 19:07

clicknz: so I think you were setting out to rain on their parade by even mentioning a retail price and managed to do just that.

Absolutely not, I had no desire to rain on their parade. They had already auctioned the item once and got no bids because of the very high starting bid and buy now price. This was the second listing with the same buy now price. There were no bids when I asked the question on the second auction. Their listing asked for offers, my idea was to make them aware of the current retail price and make an offer at the same time.

clicknz: An auction is an auction - you either participate or not

Most auctions lower the starting bid to get things going and then the price climbs to a figure where either it's sold or not. No point in participating when the starting price is above new price and the seller keeps opening at the same price.

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reven

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#735684 20-Dec-2012 19:10

dclegg:
reven:- mbp 15" core i5, paid about $3k for it, sold it for $1200 buy now, it was about 2.5 years old, also sold within a few hours.

OT: What were the exact specs for that? I'm thinking of upgrading my 2010 MBP, and am wondering what it would be worth if I sold it on TradeMe.

Its a 2.53GHz core i5 with 500GB 7200RPM HDD and after market 8GB RAM upgrade. Its in good condition, with the only external blemishes being slight wear and tear in the palm rest area, as its been my work machine for the last couple of years. Apart from that, no scratches or dents anywhere.

late 2010, 2.53GHz i5, 320gb hdd, 4gb stock ram. no marks, with original box, install discs + moutain lion installed.

Mark

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#735984 21-Dec-2012 12:21

Why bother to point out if you think it is overpriced ? Just don't buy from that person or bid up to the point you are happy to pay.

I know I find it irritating when people say something I have is too much money, I know how much I want, if someone desires what I have then we can come to a deal, he gets the object I get the money ... just plain irritating when people complain when it's not the bargain of the century and that it's not going to be given to them for free!

maxeon

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#736003 21-Dec-2012 13:10

I have been to a Police auction and to a Earthquake damaged electronics auction by Turners in Penrose. The viewing was completed and the bids started very close to the actual retail price of the item. Specifically for the electronics such as TVs and Home Theater items. The actual price sold was few dollars of a brand new retail priced of the same model.

I was unsure if they realize they have to pay a buyers premium at turners plus gst and it comes with "as is where is" condition.

I could not bid on any of the items i wanted and walked away.

scuwp

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#736022 21-Dec-2012 13:54

Some people get carried away. I have sold some items well above retail price...but hey they bid and won, so their problem. On the other hand I have seen some really good items go for the $1 reserve. That's the gamble you take if you are going to set a low reserve. Personally I would be embarrassed to collect a $500 cellphone for a gold coin donation.

For me I am pedantic about what I buy and research well. I know what I think it's worth and work to that, but yes 50% as a ball park figure is a good start. I use the same rule of thumb for selling based on the days price (not what I paid for it 3 years ago).

Some buyers and sellers are plain unreasonable, but hey I just leave them alone if they are not on planet earth.

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