Went to Unique Photo today with a lens to trade. They sell the lens new for $849- but offered me $150 for a like new lens. B&H gave me $279 for the same lens.
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The UK retail model was always 100% mark up on new gear, plus VAT, currently running at 20%. Since the internet I suspect those margins are way down. The B&H offer seems about right.Went to Unique Photo today with a lens to trade. They sell the lens new for $849- but offered me $150 for a like new lens. B&H gave me $279 for the same lens.
Also depends how quick the shop can turnover the secondhand gear they're buying. A friend sold an FM3 to a shop last year, and they offered him £295. Admittedly he'd bought it new and used it twice before going digital, but even so I thought he might get that price via ebay, not from a retailer. I can only guess they had a buyer lined up who would pay their margin for an exception condition FM3.I doubt that there is a 100% markup on new gear anywhere nowadays. As for used, yes, a 100% markup would be the target + or - depending on the market for a particular piece, and of course, condition.
For wholesaling a lens (i.e. selling it to a retailer), comparing it to the price of a new one isn't a valid comparison. The comparison to make would be to the price of a similar condition used one, then take at least 1/2 of that, in most cases.
Based on B&H's offer, the other price does seem quite low, however.
No equipment has an intrinsic value, things are "worth" what you can get for them and how desperate the vendor is to sell them at the time, if you paid $100,000 for a Rolls Royce and the maximum anyone offered for it was $1000 that's what its worth, I learned this from bitter experience.
The "market" these days is open and visible, and defined by Ebay.
Is this a question of ethics?
Is that so? There is Ebay and there is local market. And for the rest applies what Ben just said above.
"Normative ethics takes on a more practical task, which is to arrive at moral standards that regulate right and wrong conduct."
To me, offering $125 LESS than a dealer in an even higher-cost area (NYC) is unethical.
Mate, so what's new??
Dealers trading second-hand equipment have been doing this since Nelson lost an eye. .
The dealer also has to pay 20% V.A.T. in the U.K. on second hand equipment when he buys it and also when he sells it so that's 40% before he adds any mark up for profit (and the company I worked for used to guarantee used equipment for six months which was a potential loss too) that's why you get so little for used gear.I'm surprised you sold your Rolls Royce so cheaply, the profits from camera sales must have bbeen high
Joking apart the margins on new camera sales plummeted in the 70's & 80's and never returned to the 100% mark up level, but the OP is talking about selling second hand items to a dealer. That dealer has to finance his stock and unsold goods cost money in interest etc, some dealers as well have better infrastructure and reputation (and are much larger) and can turn items over faster.
In the UK it's better to sell as a commission sale through na dealer, that way the tax (VAT 20%) is on the commission only so far better for the buyer, it's better for the dealer as well because they've not had to pay before the items sold. The down side as a seller is you only get paid when the items sold but then you get a far better price. That's been my experience anyway.
It is supply and demand, I was amazed today when doing a Google search to see how many UK shops just sold analog cameras & film, many successfully. But I know one who's prices in his shop & on Ebay are way too high, but friends who jo him says he's been paying far too much for stock.
All shops /dealers have to make a living. the moral is sell to one who's turning over stock and check ot the best options, in the past for me it's been commission sales when through a store.
Ian
Cheapest Buy it Now price was $429 which is $279 MORE than they offered. http://www.ebay.com/itm/262240381847?
It's an offer. No one has to take it. If no one accepts the offer and they want to have lenses like that to sell, they will have to offer more."Normative ethics takes on a more practical task, which is to arrive at moral standards that regulate right and wrong conduct."
To me, offering $125 LESS than a dealer in an even higher-cost area (NYC) is unethical.
The dealer also has to pay 20% V.A.T. in the U.K. on second hand equipment when he buys it and also when he sells it so that's 40% before he adds any mark up for profit (and the company I worked for used to guarantee used equipment for six months which was a potential loss too) that's why you get so little for used gear.
P.S The only time in my life I have ever travelled in Rolls Royces Ian was to weddings and funerals
If a UK dealer is buying from a member of the public there's no VAT involved, if they were buying from a company (or photographer) that was VAT registered then there is, and they can claim it back, in practice it's offset by the increased VAT on the eventual sale.
Ian
If a UK dealer is buying from a member of the public there's no VAT involved, if they were buying from a company (or photographer) that was VAT registered then there is, and they can claim it back, in practice it's offset by the increased VAT on the eventual sale.
Ian
Cheapest Buy it Now price was $429 which is $279 MORE than they offered. http://www.ebay.com/itm/262240381847?
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