Second hand lenses.. The bloody cheek of it !!!

Nick_Reading.UK wrote in post #16528558
Of course I know that!

Then what is your problem? Why laugh in the guys face if you know that?

You have to understand the dynamics of a business that buys and sells used equipment to understand the shop owners position. I used to have a gunsmithing shop and did work for the local gun shop and pawn stores. A significant percent of used equipment they took in on trade or pawn was defective in some respect and needed repairs or were out right unsellable. The gun shop for instance had a whole room full of guns that were not cost effective to repair. The cost of these losses had to be spread out over their entire inventory.

Hogloff wrote in post #16528633
Then what is your problem? Why laugh in the guys face if you know that?

I am not going to argue with you, I just didn't like the price, period...

Never sold a lens, never will.

My local shop is the same way, but when I ask a price for something I don't laugh or smile depending on quote. If I have the extra bucks ill buy it local and support them but if I'm on a budget and there is a 200+ difference ill look into b&h. Taxes are a killer here in california on top of the mark up.

There is another aspect of this you are not taking into consideration. The Shop buys NEW stock at wholesale prices. Think about that. Why should they buy your used lens for anywhere near what they can buy new stock for On credit and flip three times before they owe the money? Shops have to be very careful to not complete against themselves on used gear purchases.

A new item may sell for 1000 dollars
The shop buys that item wholesale for 600 dollars on 30 net credit.

They will want to pay you around 300 for your used item so then can turn it fast so it does not sit there and devalue/compete with new stock.

This is the business model that brick and morter speciality shops Must live with do to costs and simple math.

This is also why in another 10 years Walmart/costco/amazon will rule the world.

Dear Nick,

You pretty much describe the feeling most people have when they trade anything, a lens, a car, a boat, a lawn tractor.

There is a balance to be stuck between the buyer and the seller/trader. The camera store can always increase their initial offer but it's virtually impossible to lower the initial offer once it is on the table. As the person offering the lens nothing stops you from negotiating for a better offer.

Put yourself in his shoes for a moment. He has a lens that apparently hasn't sold at his asking price, why would he want to be into another one if he cannot get it for a good price? Generally, that means he needs to get the lens you are offering for significantly less than has in the other one.

If he has heavy store traffic and he is a proficient shop keeper the knows his market and he knows who will buy that lens and at what price. You think he lowballed you, but he thinks he is buying to cover the cheapskate buyer he has on the hook. That's how the used market in just about any field works.

There are places that consistently under value trades and over price used items but they typically don't stay in business long unless they are well funded. Even then, they often don't succeed.

Regards,

Tim Murphy

Kirth Gersen wrote in post #16527972
But here's the thing. Nick could flog it on ebay for probably between £400-£450. Its no wonder that camera shops are dying out.

And what warranty would ebay give? Where I live, shops needs to give a warranty even on used items.

KirkS518 wrote in post #16528079
From an accounting standpoint, the amount of the mark-up is 1/2 of the selling price. I know what you're saying, but it's called 50%.

With all due respect, I think you're confusing mark-up with margin. A product with a seller cost of $100 and a sales price of $200 has a 100% mark-up, but a 50% margin.

Either way, I'm not surprised with the retailer's initial offer to the OP of £300 for a used lens that they retail for £600. It may be a little aggressive, but there are carrying costs to consider as well as several risk factors, such as the risk that the lens is damaged in a way that is not immediately discernible, the risk that Canon offers a rebate or lowers the price on their new lens or announces tomorrow that the lens is discontinued for a Mark II version. Unless there's a high demand for the lens you are selling, there's a good chance the lens is going to sit there for weeks or months before it sells.

Henry's is a large camera shop in Ontario with dozens of locations. They offer excellent service and a good amount of in-stock inventory. The sales folks allow you to play with the equipment and offer real advice. Most of the folks at the retail location I go to are professional photographers and know what they are talking about. They have a plan where they offer 1/2-back of the price you paid on any [Canon] lens towards the price of another new lens as long as it's within a year (or close to it). It's a way to upgrade very easily, especially with the more moderately-priced lenses. Once you go to $1000+ lenses, it becomes less attractive, but still a viable alternative.

I've done it once or twice and thought it was pretty fair.

to say nothing of the fact the OP stated that he really had intention of selling the lens anyway, so the shop owner has to take into account time wasters like him. That was time the shop owner could have potentially been making a sale to a real customer.

You went to a bricks-and-mortar store. How much does the shopkeeper pay for rent, labor, insurance, utilities, interest paid (or foregone) on stock held, and inappropriately returned goods? All of that has to come out of his markup, before he makes any profit at all. Even the person talking to you cost the shopkeeper money while he was doing it.

If you don't like the resulting price, don't sell.

I just sold three lenses to KEH, and I would do it again without hesitation. I tried selling them online, but when I didn't get bids, I shipped them to KEH instead. Yes, I made a little less. So it goes. They have to make a living too.

Nick_Reading.UK wrote in post #16527685
So......
I was in a camera shop today looking at the overpriced lenses (second hand and new) and I saw a 2nd hand 17-55EF-S 2.8 for £599 (same as mine) and thought sh1t that's a it steep !! Just then the sales guy came up to me and asked can I help you... I pointed to the lens and said how much would you buy mine for in good Nick(=condition for the none UK people out there) he walked back to his sh1tty little cash machine(till) and started calculating and said to me.... Wait for it!!
"We'll depending on the condition between 300-310" I looked at him laughed in his face and walked out of the store....
So after he saw me looking at a 2nd hand lens at 600 did he really expect me to give my lens up for 300...? Of course they have to make money... But 100% markup.. Kiss my southern English arse...
Anyone else had the same sort of experience.?

Sounds like a reasonable offer to me. He has a business to run and a lot of bills and taxes to pay before he makes a profit, assuming he can sell it.

lehmanncpa wrote in post #16529481
With all due respect, I think you're confusing mark-up with margin. A product with a seller cost of $100 and a sales price of $200 has a 100% mark-up, but a 50% margin.

OOPS! You're right.... I'll go hide in a corner....

I totally agree that shops/businesses have to make money... But not at my expense !!
I was testing the water to see how much it "could" be bought for because I actually was toying with the idea of selling but that had many factors one being the return, but as said I decided to keep it. And for that price I would definitely keep it as I am not broke so it's not about needing the money..
So I ask you this, don't you try to get as much money as you can for stuff that you sell? House, car, camera gear or do you give stuff away because businesses have to make money... ?

At whose expense, then?