are we are own worst enemies?


Why do audiophiles sell their used equipment for 50% or more, off of the retail price. I feel that if a piece of used equipment is in mint condition, 65% of retail would be a fair asking price. Since most of the sellers on audiogon sell their equipment for 50% of retail, I am forced to do the same, if I want to make a sale. I find this practice strange, especially when dealers will only discount 10% of retail on new equipment. Anyone care to comment?
jazz_nut

Showing 2 responses by kthomas

Assuming you get 10-20% off MSRP if you buy new from a dealer, buying used from an individual at 65-70% of MSRP could be saving you as little as 10-15%. Price has to be your overriding concern by a large margin to make this attractive - if I can buy a new piece of gear for $4000 ($5000MSRP) from a local dealer vs. paying $3500 to an individual for a used piece, it's probably worth the $500 to be sure of warranty coverage, proper operation, exact condition, possible audition opportunities, etc.

If you know exactly what you want, you can often find something as a demo or a clearance from the dealers that actively sell online for 60-80% of MSRP. Some of my best purchases were exactly that - peace of mind, confident of what I was getting, etc.

Ultimately, the individual selling a piece of gear has to inhabit the price points below that or it's not compelling, leaving the 50% of MSRP price (give or take) as the natural target. If you have something almost brand new, where the model is still hot off the press and the great reviews are just coming out, you can get above that level, but for the typical sale there's just not enough to justify going much above that pricing point. -Kirk

Jazz_nut - that's the point, though - if a local dealer has a trade-in and is asking $6500 for that same amp, why would somebody buy it from an individual over the internet at the same price? There's a lot of things that can go wrong, which are offset by getting a VERY good price. You mitigate the risk by buying from somebody you know and paying a bit more.

I know what you're getting at - I have bought some mint pieces from individuals that could have been fairly priced higher, knowing what I came to know after the purchase. But I've seen other things that sounded as good in the ads that didn't turn out to be as good, so you have to average it all out. If you have a truly mint piece, you can probably get a bit more by following the marketing advice given earlier in the thread - go out of your way to make contact with a potential buyer and be sure they know "mint" means MINT. -Kirk