Inverse elasticity of demand. Place a $6.00 sticker on a bottle of wine and people will think it is garbage. Place a $36.00 sticker on the same bottle and suddenly people will take notice, discussing what a fine bouquet it has.
Baffled by Pricing Strategy
Over the course of the last two years, I’ve been on here and AudioMart roughly daily. Like most of us, I always have some items on my Watchlist but I’m especially active looking at the gear in my price point right now. One oddity that I can’t wrap my head around: Person posts their used gear, it doesn’t sell for months even after lowering the price, and their strategy is to raise the price?!?? People certainly have the right to ask for whatever they want but each time I see this I think to myself “yup, that’ll get it sold…”. From what i can tell, it’s not been in response to manufacturer’s price changes, product scarcity etc…. and it’s not like the community hasn’t seen the previous, lower price. What’s the logic here?
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Scared to death to buy anything used? It may work out but what if it doesn’t. Keep in mind anything you buy retail immediately gets marked down 50% when you trade it in. Maybe you’ll get a little bit more selling it on your own used. Solid-state probably sells better than anything with tubes. Well-known brands do better. But if you buy an amplifier or heavy preamp and then it requires repair out of warranty good luck. At least if you buy something new and plan to keep it for a while you’ll be better off in the long run. Don’t cheap out when you buy something that’s on the pricey side. Why don’t they sell more used cables? This would be tempting. Estate sale purchases can be awfully good if you’re lucky |
As an occasional seller, I have in fact noticed that no matter whether I price something high or at a bargain low, buyers ask for, and often insist on, a reduction in the selling price. $)#*@ |
I am an active buyer and seller of gear and other stuff. Over the past 20 years of being an eBay member and a user of Audiogon, Craigslist, FaceacheMarketplace, etc. I have come to a few conclusions: 1) Sellers often hallucinate that a lottery winner will magically overpay for their item. 2) Sellers price a thing at what they wish it was worth. 3) Sellers recall how much they paid at retail and imagine they should recoup as much of that high number as possible. 4) the Seller doesn't really want to sell- unless a fool longs to part with their money. In the end when a seller and buyer are similarly motivated a fair market price is achieved. Normally neither will think it was an optimal transaction. That's how you can tell it was actually a FMV transaction. On the flip side if a seller is panicked and or must sell he will wind up with a low number. |
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