Once and for all 60% is fair?

Discussion in 'Bad Dog Cafe' started by Chick-N-Picker, May 15, 2017.

  1. Chick-N-Picker

    Chick-N-Picker Friend of Leo's

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    We've seen many many threafs about used gear, CL, Reverb, and the transactions that ensue. Lowballers, persistent buyers, and fair offers.

    All having their own definition to each and every person. So I'm here to hopefully settle it, at least for myself.

    I feel Ive seen it said a lot that 60% is fair. So, Is 60% of the new price a fair offer (you know if all is in at least working order)

    If a guitar sells brand SPANKING new for $800 would $480 be a fair offer in your opinion? That is 60%. I'm curious to everyones opinion.
     
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  2. BritishBluesBoy

    BritishBluesBoy Former Member

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    It depends entirely on the guitar. How rare it is, how popular it is, what condition it's in, who made it etc etc etc...
     
  3. Colors

    Colors Tele-Holic

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    Sure, I'll go along with the creation of that rule... but I don't follow the rules.
     
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  4. rich815

    rich815 Friend of Leo's

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    I typically won't pay too much more than that especially if I can get new with full warranty and from a reputable dealer who will take it back if there are any issues, or perhaps anytime in the first 30 days for any reason.
     
  5. Chick-N-Picker

    Chick-N-Picker Friend of Leo's

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    I understand your point on that. And thats all true. But I'm mainly talking about general used gear thats not really rare or vintage.

    Like say a Baja telethat you can get brand new, at say, sweetwater for $800. After its used and the seller is trying to sell it. Would $480 be fair?
     
  6. mauer62

    mauer62 Tele-Holic

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    Nope, I like to get them at least 50% off or no deal and even then I will still try to get it cheaper if I can.
     
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  7. KokoTele

    KokoTele Doctor of Teleocity Vendor Member

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    I think you're on the wrong track. The market decides what a fair price is, and these days it's relatively easy to see what used items are selling for. If a particular thing is selling somewhere in the range of $400-500 on the used market, then a fair offer is probably somewhere in that range. New price isn't that important.

    Say a guitar sold new for $800, but was a fad that only stayed popular for a year. Three years later, people might be moving them for $300-350. If you've got yours listed for $500 and someone offers $350, it's probably a fair offer.
     
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  8. brookdalebill

    brookdalebill Tele Axpert Ad Free Member

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    I generally agree, though traditionally, 50% is where I think negotiations should begin.
    I have been a music store and pawn shop manager, as well as a (former) wheeler-dealer.
    60% is not unreasonable.
     
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  9. JustStartingOut

    JustStartingOut Tele-Holic

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    I talked a guy down to $380 for a year old 60's Baja that was barely played. I didn't like it so sold it for $425. It really just depends on who is willing to sell for how much and who will pay how much.

    Had I known they were killing the CAR Baja's I would have held on to it and sold it for millions since it will be "rare" soon. :D
     
  10. TMMC

    TMMC Tele-Afflicted

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    As has been stated, it depends on the item.

    Like new? Maybe closer to 80%, depending on ease of availability.
    Beat up? 50% or less maybe.

    If it's a $1000 guitar new, and it's in great condition with a hard case, $750 is fair. Used but decent condition without case, $500-600 is totally fair.
     
  11. Chud

    Chud Poster Extraordinaire

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    Depends on whether I'm the buyer or the seller. As the buyer, 50-60% is fair. As the seller, 70-80% is fair.
     
  12. dsutton24

    dsutton24 Doctor of Teleocity Ad Free Member

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    That's not a 'once and for all' question. There's no way to make a blanket statement about the worth of anything.
     
  13. Mike Eskimo

    Mike Eskimo Telefied Ad Free Member

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    Keep in mind that a minute after you walk out of GC w/ a regular production/non-special edition item (like an Am Std Strat, '65 DRRI, etc) it loses 20%-25% of its value.


    From my experience on CL - folks think it's the opposite ! :lol::lol::lol::lol: (for those that went to state colleges - that means they think it's worth 20%-25% more )
     
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  14. chris m.

    chris m. Poster Extraordinaire

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    When you say "new price" do you mean list price or out-the-door, street value price? My general rule of thumb is that out-the-door, actual price from a big retail seller like Guitar Center here in the U.S. is typically around 35% off of the list price. Something that lists for $1,000 should be available for around $650 brand new, in other words. If you can get it for $650 brand new, like a new car it goes down in value immediately on the next sale even if it is kept in immaculate condition with all the case candy, etc. For one thing, upon transfer you might lose any warranty coverage so there is the value of the one-year warranty to factor in. So a guitar that sells brand new in real life for $650 might go for $400 used, even if it's in almost mint condition. But as other posters have mentioned there's no hard rule on that. If something is in high demand and hard to get then maybe you get much closer to the original $650 new price. If it is something that hit the market with a big thud and no one wants one then good luck selling it at half the new price or even less.
     
  15. chris m.

    chris m. Poster Extraordinaire

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    Sometimes trading gear can work out real well. Something you're not using may be worth a lot to someone who has something that they're not using that is worth a lot to you. It's nice when you don't have to deal in $$ but can deal directly in gear. (Although in the back of their heads everyone is factoring in the likely re-sale price to make sure they're not getting totally hosed). I've got a boutique amp that is not working out for me and a line on a guy who has a different boutique amp that isn't working out for him. We might just have a deal in which case we're both going to get a higher value in trade than what we likely would have gotten if we sold our items for cash.
     
  16. 8barlouie

    8barlouie Friend of Leo's Gold Supporter

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    There's no such thing as a one size fits all when it comes to open markets. The old story of supply and demand rules. EC brings the house down at Crossroads playing a Daphne Strat, then next thing ya know, ya can't get near a Daphne Strat. The true value of any item whether it be guitars or cars, or watches is this: What someone is willing to pay.
     
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  17. MilwMark

    MilwMark Doctor of Teleocity Ad Free Member

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    No rules. Do some research and offer what you think makes market sense and you can afford.

    As you see - people in this thread think it's reasonable to pay $750 for an excellent condition used item that retailed for $1000.

    Others think that you pay $650 for that same item brand new, and set your used value from there.

    Reverb has about the easiest price guide to see what same item sells for and the trend line. Those lines tend to move a fair bit over time. Up and down.

    Fair isn't a relevant concept in a way. Know as much as you can about the market value and offer that. Someone will either accept or not, for reasons beyond your control.
     
    Last edited: May 15, 2017
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  18. FerruleCat

    FerruleCat Tele-Holic

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    The occasional item that I sell is nearly always in like-new condition, and 60% of retail (actual, not MSRP) is where I typically price.
     
  19. chris m.

    chris m. Poster Extraordinaire

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    One thing that always surprises me is how guys in the UK often have to pay the same or higher street price in pounds that we pay in dollars. And yet, as of today, 1 pounds is worth $1.29. And they have to pay a higher VAT than our typical sales tax. One thing we definitely have going for us in the U.S. is we often see the very lowest prices on new gear....for example we can probably get better deals on Japanese cameras, Yamaha instruments, etc., than the Japanese can get in Japan for the exact same stuff. I guess there's some advantage to being in the biggest consumer market in the world. Maybe China will take over that role one day and we'll be jealous of the prices they can get.
     
  20. KC

    KC Friend of Leo's

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    a deal is a deal, what it's worth to the buyer, what the seller has in it & is ready to let it go for. Prices seem to drift around a bit depending on condition, desirability, weather, who knows? But it seems like the Jimmie Vaughan strat I bought used for under $500 is worth a bit more. They were everywhere for that kind of money and now there are a bunch of them on Reverb for $850 -- asking price, I know, but still. The ones that bug me are the guys on CL who are asking sticker price or more, generally for amateur-grade instruments. Makes me wonder where they bought them from.
     
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