Why are Trade in Prices so bad?

[golfsaint]

Been looking at trading in some clubs to finance the prurchase of another Driver, but the quotes i get back for trading in our bad ? does anybody know why they are ? yeah i understyand that they are business but mark ups off over 50% higher than the trade in seems a bit much.
American golf seem the worst but even golfbidder are not much better.Has anybody else found this ?

 

[Holty]

Because generally they recognise it can be a hassle to sell a second hand club, which is never worth as much as the original purchaser thinks it should be worth!

That, and if people keep using them there is no need to pay any more than the minimum necessary!

 

[patricks148]

i suppose it depends on the clubs and where.

I get all my stuff from a local pro, and he looks after you to a certain extent. Of course he has to make money, but you are never going to get back what you pay for things with anything you sell.

I recently traded in my mp32 irons when i purchased my JPX PRO, he gave me that same price as i paid for them 3 years ago SH... from him

 

[Doon frae Troon]

Yes it has been going on for many years now.
Mainly due to:
Recession, established golfers giving up
No new golfers starting to play
Cheap starter sets
Desperate retail companies.

 

[Akie]

If you compare to how much the club is worth to replace off eBay or from the shop itself then it will never match up. With eBay you go through all the hassle of selling yourself and these trade-in places always have a big markup on second hand whether its golf clubs or computer games etc.

 

[Fish]

I don't think 50% is that much when you've experienced it yourself.

If they offer you £17.50 for something that they will sell for £35.00, they will also have to declare VAT within that resale figure but they will not have VAT to offset against it from buying it off you, so that erodes that gross profit immediately. Then factor in wages, rent, rates, telephone, internet, advertising plus a host more fixed and variable costs and then attempt to imagine how many individual sales they will need to do just to break even each day!

High turnover minimum margin doesn't always work unless you have a guaranteed mass footfall every day because when that footfall slows or stops, your dead in the water, like many large very well known companies have experienced of late!

Its not easy out there at the moment, I closed a very successful business of 13 years in December as rising costs both at home and at the business and having to take less margins to compete, meant we became vulnerable to smaller, non-visible companies on the internet only with much lower overheads.

You can only cut your cloth to suit so much.

They will also offer a price based on a quick turnaround so it will also be marked down to what you could possibly sell it for privately.

 

[One Planer]

It's like anything, I suppose prices rise and fall on the strength of demand.

2 examples. I got shot of as set of R7 irons through GolfBidder at the start of 2012. They offered me £147 for them, which was about what I was after..... Winner.

A few weeks back I asked them to quote me a price for my Scotty Cameron. They offered me £100, when they are selling them for £200+..... Loser.

Win some, lose some.

 

[BTatHome]

No trader would be in business for long, or be financially successful, if they offered close to their own selling prices. Simple economics dictates that they must have a markup on the items.

 

[mykweb]

Do american golf etc actually pay vat on second hand goods. I read somewhere a while ago that secondhand goods are exempt from vat as the vat has already been paid.

I attempted to trade in my cobra amp driver, only 6 month sold and in great condition. Ag offered me £50, that was against a cobra amp cell driver priced at £249. But they had a trade in amp in worse condition than mine in the 2nd hand section for £130.

Mike

 

[Fish]

Do american golf etc actually pay vat on second hand goods. I read somewhere a while ago that secondhand goods are exempt from vat as the vat has already been paid.

I attempted to trade in my cobra amp driver, only 6 month sold and in great condition. Ag offered me £50, that was against a cobra amp cell driver priced at £249. But they had a trade in amp in worse condition than mine in the 2nd hand section for £130.

Mike

If you are registered for VAT, you must charge VAT on all supplies/sales of goods and services that you make within the UK unless they are zero rated, which second hand goods are not.

 

[pbrown7582]

the resale value of something is not relative too how much you paid it is relative to what someone will currently pay, and trading in guide is about half this amount, pretty much the same with cars and any other goods.
Do an ebay search on completed items to compare what youve been offered and what the current going rate for 2nd hand is, then deduct the approx 10% fees involved and see where you stand?

 

[MetalMickie]

Do american golf etc actually pay vat on second hand goods. I read somewhere a while ago that secondhand goods are exempt from vat as the vat has already been paid.

I attempted to trade in my cobra amp driver, only 6 month sold and in great condition. Ag offered me £50, that was against a cobra amp cell driver priced at £249. But they had a trade in amp in worse condition than mine in the 2nd hand section for £130.

Mike

I think you will find that secondhand or otherwise they will still have to charge VAT. Cars, golf clubs; it makes no difference if the business is VAT registered and this is still largely determined by size of turnover.

Therefore, if AG or whoever give say £100 as a trade-in price and their business model dictates a 50% gross (not net) margin they would have to sell that club at £100 + £50 (margin) = £150 + £30 (VAT) = £180

 

[shivas irons]

I used to work for a big golf chain and I can assure you they all use this http://valueguide.pga.com/
The guide is in dollars but to compensate for the higher original cost of the equiptment here in the Uk they go like for like IE;$50 value they will give £50.The prices are chronically low from PGA guide

 

[stevie_r]

I used to work for a big golf chain and I can assure you they all use this http://valueguide.pga.com/
The guide is in dollars but to compensate for the higher original cost of the equiptment here in the Uk they go like for like IE;$50 value they will give £50.The prices are chronically low from PGA guide

My wedges are worth 55p each

 

[Hacker Khan]

I used to work for a big golf chain and I can assure you they all use this http://valueguide.pga.com/
The guide is in dollars but to compensate for the higher original cost of the equiptment here in the Uk they go like for like IE;$50 value they will give £50.The prices are chronically low from PGA guide

Jees, the trade in values are like peanuts. Then again I suppose once manufacturers start bringing new clubs out at least every year, plus the shrinking market of new golfers due to the silly dress codes (only joking ) then the value of old clubs will be low. 19 bucks for my Mizuno driver that is only 3 years old!

 

[garyinderry]

just ebay the stuff. its not that much of a hassel!

 

[lee_leggett]

Ebay, golf bidder, are main reasons for low trade in prices. Along with the new products, look how quickly clubs change ping are now on g25 or i60 or whatever their new products are, taylormade with the new or old r range. There is a new one every 6/8 month's. The more volume they make and the more advancement in technology mean new products meaning your new r1 is now old as the r1 stage 2 has been released.

Golf clubs are only worth what someone wants to pay for them. With ebay you can get real deals, or you could use a buy now because you want them, you may pay more but you have what you want.

I know dguk donot sell trade in clubs as there is a poor market.

 

[shivas irons]

Ive currently got a very nice Titleist 905t driver for sale,The PGA value guide value it at £11,if I walk in to AG to PX it its value will depend on what I was after,if theres a good profit they will give me more for it,if theres not much profit for them on the club i'm after they will give me £11 possibly a couple of quid more.Nice 905t's generally sell on ebay in good nick for £35-£40....simple don't PX your gear,they don't want it. I know theres a bit more hassle involved with gumtree and ebay but that's where you'll get better money.

 

[Tim67]

just ebay the stuff. its not that much of a hassel!

Never a truer word spoken, hang off until mid May if you can, when demand & prices are sky high, I have a couple of items waiting in the garage. Ching ching!

 

[Wayman]

Best thing to do is go to local pro or eBay