2. misc-audio
  3. 157577-15202

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
petg60
1,486 posts
 
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. 
ebm
9,311 posts
 
This is very worrisome dude!!
twoleftears's avatar
twoleftears
5,318 posts
 

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.

stereo5's avatar
stereo5
6,414 posts
 
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. 
snapsc
676 posts
 
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. 
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