Determining Sale/Trade Value

[BradleyS]

With the condition of the instrument a given, how do y'all determine a sale and trade value of your guitar?

[RP]

Check completed Ebay sales and Reverb valuation...

[kdn]

^this x 2. ^

[Rev Roy]

Originally Posted by RP

Check completed Ebay sales and Reverb valuation...

Yep...that's what I do.

[Napman41]

Originally Posted by RP

Check completed Ebay sales and Reverb valuation...

I also scoure dealer listings and do a quick check of the Vintage Guitar Price guide, which isn't just for vintage guitars.

[rokdog49]

Originally Posted by RP

Check completed Ebay sales and Reverb valuation...

That and call one or more of the vendors on the AGF who sells lots of used guitars of all makes. They can be very helpful in the validating of what you might find on the internet.

[DavidE]

Originally Posted by BradleyS

With the condition of the instrument a given, how do y'all determine a sale and trade value of your guitar?

I've never understood how sale and trade value could be different. If you artificially inflate the value for trade, so should the other trader on his/her gear. So it's all artificially inflated b.s. If you're dealing with a store, the trade value is lower than the sale value because the store has to make a buck on your trade in.

[SFCRetired]

There is a difference in what things sell for on ebay and reverb and what a guitar is actually worth. Many times when people put things on ebay or reverb they want to sell it to buy something else and will take what they can get, within reason of course. I have watched guitars sell on ebay and reverb almost as a hobby and prices are all over the place.

But with that said, that is where I go to as well. But be careful with ebay. I had my DM listed there and they tried to recommend a price of 340. Yeah right, like I would ever sell my DM for 340 bucks. And pay their fees? No

[SFCRetired]

Originally Posted by DavidE

I've never understood how sale and trade value could be different. If you artificially inflate the value for trade, so should the other trader on his/her gear. So it's all artificially inflated b.s. If you're dealing with a store, the trade value is lower than the sale value because the store has to make a buck on your trade in.

Well, they don't have to make a buck on the trade but for some reason they all think they have to. If they get back what they allowed for the trade then don't they get full value for the new guitar? That seems like a reasonable deal to me.

And I don't want to hear about rack space. I have seen some dealers put used instruments in the back and bring them out to show people if someone asks to see used or they will bring them out if someone is looking for a specific guitar they might have in the back. It's a racket.

[roylor4]

Originally Posted by SFCRetired

Well, they don't have to make a buck on the trade but for some reason they all think they have to. If they get back what they allowed for the trade then don't they get full value for the new guitar? That seems like a reasonable deal to me.

And I don't want to hear about rack space. I have seen some dealers put used instruments in the back and bring them out to show people if someone asks to see used or they will bring them out if someone is looking for a specific guitar they might have in the back. It's a racket.

I respectfully disagree. I don't think it's reasonable at all. Selling two guitars takes extra time and effort. It also takes longer to see a profit. Why would you expect them not to make a profit on a trade in and the extra work required? How is that a racket? The stores job is to maximize profits, not give consumers the best buy possible.

Every musician I know accepts the fact that if you trade that you are going to take a beating versus selling and then buying.

Buyers make better deals buying used from individual and sellers get better ROI when selling to individual rather than trading. It's the way it is and the way it is likely to stay.

[kydave]

Of course the sale value and trade value are (and justifiably so) different.

If you don't understand why ...

[H165]

Well, they don't have to make a buck on the trade but for some reason they all think they have to.

Having worked in a shop where we saw many instruments offered for trade, I can tell you most trade-in offers would be a dead loss to a retail store.

We were able to routinely buy new stock at 40% of our 'selling price + tax'. (major brands, up to 50%, sometimes 60%) and sell within 2 weeks (good buyers, good marketing, good word-of-mouth, and good management).

"A dealer has to make 5 to 6% net/net profit to keep his doors open. That's after paying the rent/mortgage, employees, benefits, the inevitable losses due to "shrinkage", advertising and promotion, maintenance, the accountant, his bank interest etc. If they aren't making 50% on accessories and 25% on instruments, then they will be out of business." and you will not have a shop to visit.

So, if you offer to trade a guitar that is absolutely worth $500 in a "street value" cash deal, and will also sell for $450 + tax after less than 2 weeks on our wall, a trade-in offer (maybe 50-60%) is going to look pretty bad.

[devellis]

Originally Posted by kydave

Of course the sale value and trade value are (and justifiably so) different.

If you don't understand why ...

For a private transaction? Okay, I don't understand why. Please inform me.

The only reason I can think of is if someone is looking for a guitar to flip rather than to actually own and play. When I see ads listing different prices for purchase and trade, I typically just skip over them. If it's a guitar I'm really interested in, I might contact the seller but would inflate the "trade value" of my guitar to be commensurate with their increase. It all seems like a silly waste of time to me.

I see things differently for dealers, who aren't looking to acquire another guitar for themselves but are looking for inventory to move for cash. I understand that. Some private sellers may have the same philosophy and they're entitled to expect trading a $2500 they already own for a $2700 guitar they want to acquire. But it won't be me who is on the other end of that deal.

[rokdog49]

Originally Posted by SFCRetired

Well, they don't have to make a buck on the trade but for some reason they all think they have to. If they get back what they allowed for the trade then don't they get full value for the new guitar? That seems like a reasonable deal to me.

And I don't want to hear about rack space. I have seen some dealers put used instruments in the back and bring them out to show people if someone asks to see used or they will bring them out if someone is looking for a specific guitar they might have in the back. It's a racket.

I agree with H165. If I were in business I would TRY to make a buck everywhere I could. That doesn't mean I will be able to and there are times when my judgement and sense of "fair play" would enter into it. If I gave someone $500 for a guitar trade-in and the street value is $600, Im going to try and get something near $600. If a car dealer takes a used vehicle in on a new one he's going to get all he can for that used one and generally his margins are significantly better than they are on the new one he sold. I fail to see what's wrong with that. If you have never been in business you would not see how difficult it can be to turn a profit. Of course there are folks who are dishonest and go too far and that's sad and disgusting.
Frankly, and nothing personal here, I get amped up at the thought that it's somehow bad that a business can't try to make money. If you own a shop and you can't turn 5-6% net profit what's the point of doing it? Nobody opens a business to get paid a salary only.

[Ted @ LA Guitar Sales]

Originally Posted by RP

Check completed Ebay sales and Reverb valuation...

This is the best, quickest way to get an idea of the value.

Originally Posted by SFCRetired

Well, they don't have to make a buck on the trade but for some reason they all think they have to. If they get back what they allowed for the trade then don't they get full value for the new guitar? That seems like a reasonable deal to me.

And I don't want to hear about rack space. I have seen some dealers put used instruments in the back and bring them out to show people if someone asks to see used or they will bring them out if someone is looking for a specific guitar they might have in the back. It's a racket.

If we simply "got back" the value, than you would be right, but selling a trade-in involves the same effort as selling any other guitar.