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
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
6,441 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
681 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. 
analoguefan's avatar
analoguefan OP
56 posts
 
Thank you all for sharing your opinion!
twoleftears's avatar
twoleftears
5,318 posts
 

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.

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