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Thread: Pricing Guideline when Buying/Selling Used Gears

  1. #1
    Senior Member Zeckson Chow's Avatar
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    Default Pricing Guideline when Buying/Selling Used Gears

    I browsed through the Buy/Sell section of ClubSNAP pretty often and have noticed that the price owners are letting go of their used gears (seldom/frequent used). I feel that owners are pricing it way too high, often making purchasing a used gear meaningless.

    Members browsing the section in search and hoping to purchase a used product from a previous owner at a cheaper price, given the conditioning of the product itself, its current market value and it warranty status. I see the way the products are priced, it often shuns me away from it and always have the thought of buying new products off the shelves gives better value.

    A lot of times we want to use a gear for a situation but do not want to pay a steep price for the gear for we know we may not need it as often as we need them now. Of course, a good remedy is to rent the gear from stores. However, if we require the gear for a period of time, renting is not a solution as it the cost will be as high as purchasing the gear itself. We often would choose to purchase a usable used equipment from an owner who is willing to let go at a reasonable price.

    But the prices offered by owners are far from being reasonable. I understand that we want to get back as much return value as the gear could fetch but we also need to be considerate about the pricing. By giving a value of offer close to the gear's current market value is absurd!

    Therefore, I am suggesting a guide so that owners can refer to as a good reference point.

    Guidelines:
    All equipment that to be released into the used market
    - must be accompanied by a certification/service report/workshop order that the equipment has passed its functional tests and is certified to be 100% working condition, endorsed by the branding workshop, or its approved appointed workshops.

    - must not be priced at a value that is equivalent to its current market value.

    - must not be priced at a value lower than 50% of its current market value.

    - must not be priced at a value higher than 70% of its current market value, if the LOCAL warranty of the equipment has expired.

    - must be priced at a value which includes its remaining warranty value, if the LOCAL warranty of the equipment has not expired. Warranty cards / Proofs of Purchases must be accompanied.

    - can be priced at current market value provided that the packaging is not opened within 7 calendar days after the date of purchase (receipts to be accompanied). It can also be priced CLOSE to current market value after 1st use, provided it is offered into the used market within 7 calendar days after the date of purchase (receipts to be accompanied). Any offering into the used market after 7 calendar days from the date of purchase, it is considered as the equipment has expended its first month of warranty, which means 11 months warranty left.

    Examples in obtaining this value are as follow:
    Since the maximum offering price of the equipment is 70% of its current market value, take the remaining warranty period (in months) divided by its full warranty period (usually 12 months) and multiply it with the remaining 30%.

    Example 1:
    Current Market Value = S$1,000
    Remaining Warranty = 5 months left before expiration

    Offer Value = 70% of Current Market Value + Remaining Warranty Value
    Offer Value = (70% x S$1,000) + (5/12 x 30% x S$1,000)
    Offer Value = S$700 + S$125
    Offer Value = S$825



    Example 2:
    Current Market Value = S$2,500
    Remaining Warranty = 11 months left before expiration

    Offer Value = 70% of Current Market Value + Remaining Warranty Value
    Offer Value = (70% x S$2,500) + (11/12 x 30% x S$2,500)
    Offer Value = S$1,750 + S$688
    Offer Value = S$2,438



    Example 3:
    Current Market Value = S$760
    Remaining Warranty = Totally expired

    Offer Value = 70% of Current Market Value + Remaining Warranty Value
    Offer Value = (70% x S$760) + (0/12 x 30% x S$760)
    Offer Value = S$532 + S$0
    Offer Value = S$532



    ASSUMPTIONS:
    1. All used equipment buyers are to purchase their preferred equipment at their own risks if there are no certificate/service report/workshop order from the branding workshop. Visual inspections should obtain a minimum of 9 ~ Mint condition.

    2. LOCAL Warranty = 12 calendar months after Date of Purchase in Singapore and equipment servicing is to be carried out in Singapore.

    3. All used equipment offered into the used market is purchased from store outlets operating in Singapore.

    4. International warranties are not applicable in this guide.

    5. Current Market Value is based on ClubSNAP's Price Guide sub-forum. If there are more than 1 store outlet offering the same equipment, Current Market Value is obtained from the averaging their consumer selling price in the market.

    6. No personal guarantee of any sort.

    7. Further price negotiation is between buyer/seller if condition of equipment falls below '9' from ClubSNAP's equipment condition guide.


    Advantages in using this Guideline:
    - Used market buyers are more guaranteed of a good resale value from used equipment.
    - No more 'I sell whatever price I like and try to make more money out of it' price situation.
    - Con-man situation is reduced.
    - No more low-ballers price negotiations.
    - No more personal guarantee/warranty needed. Sell/Buy & Forget.
    - Creates more meaning and more value in choosing gears in used markets.






    What do you guys think?
    Last edited by Zeckson Chow; 4th October 2010 at 04:24 AM.
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  2. #2
    Member Sispecho's Avatar
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    Default Re: Pricing Guideline when Buying/Selling Used Gears

    I think we leave it to market forces. Regulating it will be too darn messy. Supply and Demand rules in this kind of market i feel. Shows the true monetary worth of the commodity. If seller is serious in wanting a transaction he will price it reasonably. If he is serious and still charges high, then in that case he has the right to, as his item can fetch the price.

  3. #3

    Default Re: Pricing Guideline when Buying/Selling Used Gears

    Let the 2 parties decide!

  4. #4

    Default Re: Pricing Guideline when Buying/Selling Used Gears

    Quote Originally Posted by Sispecho View Post
    I think we leave it to market forces. Regulating it will be too darn messy. Supply and Demand rules in this kind of market i feel. Shows the true monetary worth of the commodity. If seller is serious in wanting a transaction he will price it reasonably. If he is serious and still charges high, then in that case he has the right to, as his item can fetch the price.
    Second to sispecho.
    I truly respect TS effort for drafting such a long and detailed guidelines.
    I find one particular suggestion interesting, is this feasible at all?

    All equipment that to be released into the used market
    - must be accompanied by a certification/service report/workshop order that the equipment has passed its functional tests and is certified to be 100% working condition, endorsed by the branding workshop, or its approved appointed workshops.


    If I am a seller, I will be very happy to follow the guideline price formula, but will the buyer agree to the price? Example, a 2 mths lens (bought $820), base on TS selling price guideline, selling price should price at $779.

  5. #5

    Default Re: Pricing Guideline when Buying/Selling Used Gears

    when it comes to buying and selling, there is no better method than to leave it to the market forces, demand and supply and let's the buyers beware.
    always the Light, .... always.

  6. #6
    Member kwttan's Avatar
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    Default Re: Pricing Guideline when Buying/Selling Used Gears

    TS, I trust your good intention in coming up with the B&S guidelines. I believe there are also factors such as "demand and supply" and "goods condition". It is also nature a seller wants to sell high and buyer wants to buy low. I believe eventually the final selling/buying price will be compromised between them. IMHO.
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  7. #7
    Senior Member
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    Default Re: Pricing Guideline when Buying/Selling Used Gears

    simple, when there is demand, there is supply... y even try to control pricing? if both buyer and seller are happy, y not?
    same as you don't go out shop and control the pricing of each shop.

    just to add on, sometimes it is a strategy to price item at higher price due to the tendency of people negotiating for lower price even when the price is already low to begin with.
    Last edited by ExplorerZ; 4th October 2010 at 09:46 AM.

  8. #8
    Deregistered allenleonhart's Avatar
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    Default Re: Pricing Guideline when Buying/Selling Used Gears

    yep. leave this as a free market. let it self regulate. i'm personally against the idea of having guidelines. i'll just give up buying etc. just use buyers beware...

  9. #9

    Default Re: Pricing Guideline when Buying/Selling Used Gears

    By fixing rules and regulation on the price and gear condition will only force members to ditch the BnS section and instead post on Ebay. If the price and condition are agreeable to both buyer and seller then there shdn't be much complaints.

  10. #10

    Default Re: Pricing Guideline when Buying/Selling Used Gears

    The CS buy and sell section is full of lowballers, and anyone selling *expects* some negotiations, which is why they price it higher than what they are expecting to be able to sell at.
    Alpha

  11. #11

    Default Re: Pricing Guideline when Buying/Selling Used Gears

    CS is known as a 'Highballers' or 'Highrollers' club.

  12. #12

    Default Re: Pricing Guideline when Buying/Selling Used Gears

    i applaud TS to post such a long post.
    but nobody will follow the guidelines, if there is 1 in the first place...

    everyone got their used gears price...

    eg. cheapo like me... even if the owner open up the gears and just snap a few shot, and decide to sell the very next day, i would not be interested in it unless there is a minimum of 20% off the market value.

  13. #13
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    Default Re: Pricing Guideline when Buying/Selling Used Gears

    First of all, let me thank you for your efforts in this post.

    Your proposal guidelines are not feasible as there cannot be 100% agreement between seller and buyer on them at any single point in time per se transaction. If you dont let market forces determine the price, then there is no elasticity of demand and supply of used gears. The prices of 2nd hand gears would already have been decided based on your calculations.

    Moreover, it defits the purposes of testing the gears and negotiations which I believe is part and parcel of Buying/Selling Used Gears.

    Buyers would pre-know what minimum price he has to pay and Sellers would know what the maximum he will receive.

    Do we really want that to happen in CS? I believe that we should let both parties decide whats the final agreeable price acceptable.

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