Why not more dealers take trade ins?


Our hobby is definitely an amazing hobby! I know some of us would like to demo or probably purchase new gear but with the economic uncertainty this days, it could be a challenge. I know many audio sites represent a great outlet to save some hard earned$$. I want to help my dealer when I can because they also have employees and payroll responsibilities. My question is, why not more dealers accept trade ins? Wouldn’t that be a win win situation for dealers and audio enthusiasts/Audiophiles? 
128x128analoguefan
I think you will find dealers perfectly willing to take trade-ins. When you have something they know they can sell for a profit, they will. 
Something to consider,

I had a shop and repaired equipment. If the equipment was used, or taken in as a trade, the SELLER had some obligations, in brick and mortar stores.
I had to be listed as a Pawnbroker on my business license.  Where I did business, was subject to some pretty intrusive BS, if the local PD wanted to.
The word, "Refurbished" or "Used",  gave local PD a lot of power to pretty much do what they wanted.  Could pop in unannounced look the place over... I did't care, but I didn't like some of the rules.  In 20 years, 3 visits and  always a rookie..

Always a BOLO for some high dollar stereo, or computer gear.

Back then computers cost more than stereo gear, by a long shot..No inexpensive computers back in the 80s 90s.

Maybe that some of the reason for NO TRADE IN...

Regards
 
I think that almost any dealer will take a trade-in. The problem is the delta between what most buyers expect to receive for the trade-in gear vs. what a dealer can actually pay for that gear and cover additional direct expenses such as service and/or cosmetically restoration (if required), insurance, advertising and still make a reasonable profit.

My experience as a dealer was that most (but not all) guys expect a dealer to credit them for their gear at "retail"; that is the same as they see units advertised on Audiogon and other sites. Then they want a healthy discount on new gear, typically 10% of which is returned due to audiophile buyer's remorse, plus onsite setup and free support for all audio gear (purchased from the dealer or not) for life.

Sorry, what was the OP asking about? Oh yeah, trade-ins. I think that almost any audio dealer...

Adcom takes trade ins. I won’t buy adcom these days, as they are not the same company from them80’s.
 Even them80’s, amps were so bright,it hurt my ears.

 I listened to those 80’s 565’s or 575. MOnos through house klipsch horns, at 103-104db @ 1W/1/M
 it was painful.


Ebay and Audiogon.

Honestly.  They are competing with them, and they'd rather you just go ahead and do the work yourself.  Not to mention covid is really slowing down everything, why should they double their stock of used goods??

I mean, of course this will be dealer/item dependent.
A dealer here will sell your used item for you on Audiogon when you buy the replacement from them. They take the photos and place the ad. You get the funds, minus all Audiogon fees -- the dealer doesn't take a cut. The gear often sells for more when offered by a dealer, so it's a good deal all around.
Hi,
There are so many places to buy and sell used equipment.
All depends from dealer, store traffic and unit. Normally a trade in is a very nice profit biz but nowdays can become something of a piling stock plus some warranty and after sales service is dealer's responsibility. 

They have to test it, store it, provide a minimal warranty, have someone market it, have it sitting around for months, etc. etc. all the while competing with all the internet venues.

Sounds like a great business plan to me.

The question is, why do you think they should take trade ins?
when I sold Audio, some of the trades we took in sat for a few years. When a dealer takes in a trade, it takes away from their profit on the new item and they don’t recoup their money until the trade is sold as well. It seems like a lot of Work and time to make your profit.  I ever refused a trade, but I would give a very low price for it if I knew the piece was a dog. 
Let’s look at the math. A typical item on one of the marts fetches 50-60% of retail. As a dealer trade in... given their carrying cost the dealer would incur, they would likely offer in the 20-25% range and less for many brands. 

Most of their customers would be offended... better to avoid trade in except for the rare instance where a buyer has already been identified. 

Why should dealers take trade-ins?

How many buyers are first-time, and how many upgrading?

I bet it's 1:4 or higher.  Most of the upgraders will no longer have use for some component or other, and a good percentage of them don't want to hack the usual internet channels, and are prepared to get less for their stuff for the convenience factor.

Hence: for a significant % of buyers, taking trades is a significant incentive to do business with that dealer.