A Research Question - Could you help?

Hi all,

I've been a poster here for a while, though I haven't done much lately. Today I come to you to do a bit of research on an idea I have.

I run half a small pawn shop in Minnesota. We have had some success selling used smart phones and cell phones, but they don't come in very often.

We have the option to purchase new phones from a wholesaler and sell them at a lower price than the non commitment price at a ATT/Sprint/Tmobile store.

Here is my question. Let's say you find our phones on Craigslist or walk into the store. Are you going to be more likely to buy from a small handful of used phones or pay more for a new one that still costs less than it would at the dealer store?

If it were the same phone, would you purchased the phone used or new if the phone was priced less than a store?

The price difference being that the new phone is pretty unlikely to break down or have any wear and tear.
Better yet, would you go into a pawn shop at all?

Thanks in advance for any responses. Let me know if you want more detail.

I buy phones new - as my friends say, I change phones like they change socks. I've had too many problems with new phones (usually batteries) and needed to get them replaced. That's easy to deal with from the Verizon store. I don't go into pawn shops, but I can imagine that the people who do are very keen on saving a few bucks.

I buy new from my local AT&T store. I only buy when I'm elligable for the discounted upgrade. I prefer the company stores in case I have any warranty or technical issues with the phone. To me it's like buying my camera gear. I prefer the peace of mind I get dealing with Adorama, B&H, or my local store as opposed to some eBay or Craigslist seller.

I wouldn't mind buying from a pawn shop if they have the cheapest phone. And I'd only buy new.

It's still cheaper in the short term to buy a new phone on contract or on a "tab" for the monthly ones. I would think that alot of people would rather buy a for for $0 on a 3yr contract than pay $100 outright, and have the newest model.

I enjoy going into pawn shops but it's the last place I would be looking for a phone, especially for a "new" one.

I used to buy certain items from pawn stores on a regular basis, but around here in the last few years their prices have gotten totally insane, often within a small percentage of what I can buy the item new for, so I rarely go into a pawn shop anymore.

As for the phone, I would always buy new. Like most people on here I am a tech junkie and want the latest/greatest so it would be unlikely you would have anything used I would consider. As far as buying from your store personally, if you were an established business that has been around and had a good reputation, and were an authorized dealer for the phone, and it was cheaper than the company store, I would consider it. My main concern being, as CRN3371 said, warranty issues.

I have been with the same company (AT&T is it's name currently) since the mid 1980's and have always delt with the company-owned stores since I had a problem with a private dealer 12 years or so ago. Had problems with a phone and and every time they would have to send it in and I'd be without a phone for several days. With the company-owned store, if they can't fix it they either give me a new phone or a loaner.

I happen to be in the anti-counterfeitng business -- you need to be absolutely sure that those units are not stolen or just fake.

The reason is that if the customer attempts to activate a stolen phone these days, the odds are good they'll get caught, and bring that problem to you.

And, for sure, if they take a stolen or fake phone in for service, they'll get nicked, and come back to you.

Just be sure.