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Trade in value to a dealer

I have some items I would like to liquidate and reinvest the proceeds into upgraded equipment.  I have no feedback on Audiogon and wouldn't enjoy selling if I did.  I am interested in experiences you have had with trade in value to a dealer.  Let's say I have an amplifier which I would normally sell for $3,000 and a set speakers which would sell for $1,500 if I were to sell them to an individual.  What expectation might one have if trading these items in on more expensive pieces? 

I have no experience in this area, but in comparing it to the automotive market, I would be getting a wholesale trade in value.  Do most audio dealers operate on the same basis, wherein they feel they must make a profit on the inventory they receive via trade in, or might they allow a fair market value if they are making a profit on the item I am buying from them?  I am sure it varies from dealer to dealer, but am interested in other's experiences.  Should I expect to take a big hit?  Or maybe just a slight cuff?  Thanks.
abnerjack
gdhal's avatar
gdhal
1,641 posts
 
I do have some first hand experience in this regard...

Generally speaking an authorized dealer for any particular manufacturer can discount the MSRP of a brand new item by no more than 20% (and sell as new for MSRP-20%).

If you then wish to sell an item (in excellent condition and within two years of newly released) back to the dealer, the dealer will typically offer about 45% less than MSRP.  

If you look to sell privately, expect to get around 30% less than MSRP.

If the gear you're looking to sell is in poor condition and/or is very old (with respect to when it was manufactured), all bets are off and other variables such as vintage, market demand and phase of the moon come into play.
chlv0ter's avatar
chlv0ter
31 posts
 
I typically just buy/sell on here but I have done a few trades with The Music Room in Colorado.  Rob there is great and all my deals with them have been stress free and met or exceeded my expectations...

octet11
41 posts
 
Selling to a retailer will always intail a loss. For me it's not worth, though their are some great people to deal with. I suggest if you want to work with a dealer, find something you like they have for sale to negotiate your trade against. 
blang11's avatar
blang11
37 posts
 
Great thread here. I agree that selling used gear to a dealer is usually not the best deal, especially if you have a relatively new, in-demand component. However, I've had wonderful experiences selling/trading with Echo Audio in Portland, Oregon for older stuff or when I just want the deal done right away. It's true that they can be selective and sometimes decline to buy/trade based in their current inventory. But they are phenomenal people to work with and they pay better prices than any other dealer I've come across. I wish I still lived there. A great place to visit. 

Im curious why the original poster and another commenter feel they "wouldn't enjoy" selling on Agon or "don't feel comfortable". Why not? Is it a fear of not getting paid? I've had nothing but positive encounters with folks in this "community". Often times I'll chat with the other person on the phone and realize they are much like me. Friendly and knowledgeable enthusiasts. 
abnerjack OP
204 posts
 
blang11,

I used to enjoy, buying, selling, trading, bargaining, dickering, etc.,  but somehow I have lost the urge to do so.  If I find that I am going to take too large of a loss on a trade in, I will either swallow hard and do some selling or keep the equipment and enjoy it in a second system.  Or, I could take a road trip from Indianapolis to Portland to visit inlaws and just happen to take my old gear with me.  I love the left coast in the summer.
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