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Determining Used Prices / Making an Offer


daniemare
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Hi Hubbers.

 

The last 2 months or so, I shopped around the Hub with some serious intent rather than just browsing. I looked for a bike computer as I am moving from Polar to Garmin and some Di2 bits and pieces to convert my wife’s bike.

 

But what really got me is how many items are priced the same or even more than a new item. So, the family is gone and I have some time for a long post. 

 

As the Hub does not actually publish transactional data (rather than the advertised price) how do you determine the price:

- Sellers: you advertise for?

- Buyers: you offer for?

 

Firstly, let me just state, I agree fully that you can advertise for whatever, and buyers can low ball offer to their heart’s content. This is not a marketplace ethics thread. 
 

Considering that:

- almost no brands transfer warranties on secondary re-sales (including the Consumer Protection Act),

- Discovery and other Programs give you money back etc at places like Sportsman’s and Cycle Lab,

- and Shimano and SRAM Stuff can still be had from Chain Reaction

I just do not understand how you justify being R100 less than new on a R3000 item, nor who will fall for that price. 
 

Thus I offer 50% of new (CRC) price. Which I think is fair as it is used and I will have no warranty, even if it is “brand new in box”. I thus do not really factor in the asking price all that much. But being regularly branded as a low baller, I was wondering what others thought?

Edited by daniemare
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My opinion is that you can offer what you want to...

It is up to the seller as to how he reacts...sometimes badly/ sometimes with a polite No Thanks!

 

I always do my research on current prices - local (and international) and you are so right in saying that second hand sales don't come with a warranty (also could come with hidden defects).

 

We can conclude that 'most' sellers are trying to make as much money as they can from their sale.

 

It's up to you if you want to keep an eye on the item (if you don't need to buy it urgently) and if it

doesn't sell within a month or two then making an offer at what you feel is 'your' price.

 

I have bought quite a lot of stuff from Bikehub recently and sellers have been quite happy to lower their initial price requested.

 

And of course always keep in mind..."Let the Buyer Beware!"

Edited by robbybzgo
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I agree that in most instances secondhand items are way too expensive. In some instances it's a previous generation model being sold for quite a lot of money. But at the end of the day it's still "willing buyer, willing seller" and I just won’t pay what they ask. In some instances you can buy a very nice new bike with slightly lower spec for the same amount (if not less). The price of some new bikes is ridiculous though...

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We bought a new bike for our 8-year old last month.

 

At the time there were nothing in the Classifieds, at least nothing in good condition.

 

Last week I saw two 2019 models, but actually 2018 spec, of the same bike in the Classifieds.  The asking price was 80% of the new listed price, and I KNOW that I get discount at Bike Addict.  Thus there was hardly R500 discount in buying a second hand bike.

 

 

Going by the photos both these bikes looked in good condition, still 90 to 95% of the new price just does not make any sense ....

 

 

 

PS - we went for the 2020 spec bike, and the next model up which allows us to go tube-less, which the lower spec rim does not allow for.  

 

 

PPS - It would have to be an exceptional deal before I would pay more than 50% of the current sales price.

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Hi Hubbers.

 

The last 2 months or so, I shopped around the Hub with some serious intent rather than just browsing. I looked for a bike computer as I am moving from Polar to Garmin and some Di2 bits and pieces to convert my wife’s bike.

 

But what really got me is how many items are priced the same or even more than a new item. So, the family is gone and I have some time for a long post.

 

As the Hub does not actually publish transactional data (rather than the advertised price) how do you determine the price:

- Sellers: you advertise for?

- Buyers: you offer for?

 

Firstly, let me just state, I agree fully that you can advertise for whatever, and buyers can low ball offer to their heart’s content. This is not a marketplace ethics thread.

 

Considering that:

- almost no brands transfer warranties on secondary re-sales (including the Consumer Protection Act),

- Discovery and other Programs give you money back etc at places like Sportsman’s and Cycle Lab,

- and Shimano and SRAM Stuff can still be had from Chain Reaction

I just do not understand how you justify being R100 less than new on a R3000 item, nor who will fall for that price.

 

Thus I offer 50% of new (CRC) price. Which I think is fair as it is used and I will have no warranty, even if it is “brand new in box”. I thus do not really factor in the asking price all that much. But being regularly branded as a low baller, I was wondering what others thought?

Offer what you think is a fair price. It's that simple.

 

Bought a bike here the other day. In really good condition, 2015 model, 25% of new price.

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"Willing seller willing buyer " is really the way to gauge a deal on paper . Do your homework before you buy . I have been buying and selling on The Hub for a few years ( i funded my cycling start up by selling all my retro pre 90s road bikes and equipment +_ R50,000 worth . ) and sold it all because i was not  greedy and prepared to negotiate .My personal policy is to be able to buy the item at 60%of the lowest advertised retail  price of said new item ..

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"Willing seller willing buyer " is really the way to gauge a deal on paper . Do your homework before you buy . I have been buying and selling on The Hub for a few years ( i funded my cycling start up by selling all my retro pre 90s road bikes and equipment +_ R50,000 worth . ) and sold it all because i was not  greedy and prepared to negotiate .My personal policy is to be able to buy the item at 60%of the lowest advertised retail  price of said new item ..

 

Agreed on the 60% of lowest advertised price as in my dealing (selling and buying) that seems to be a sweet spot.  A buyer that only ever goes to 50% will barely ever transact, whereas a seller going no lower than 75% will be the same.  At 60% transactions go quickly.  To each his own - if you are more patient you may get that better price.  A lot comes down to the value of your time.

 

Naturally I'd advertise a bit higher than said sweet spot in order to have some room for negotiation!

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"We can conclude that 'most' sellers are trying to make as much money as they can from their sale."


 


 


The original idea for the classifieds was a space for both buyer and seller to have a platform where good deals could be had and the initial idea was for the buyer to benefit a bit more - sort of a sport promoting thingy.


 


I could of course be completely wrong.


 


Sadly some have built a business around it (yes) which is really really a disadvantage to the cycling community.


 


Cycling has become an expensive sport way over the top.


It limits the enthusiast as many can't afford it.


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What sellers don't seem to realise is that people buy used in order to get a bargain. If it's not a bargain, then most buyers would rather go new.

 

The amount of ads with the words "price drop" next to it lays testament to that.

 

My pet hate is when a seller advertises his product as a "bargain" when it's actually over priced.

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Thus I offer 50% of new (CRC) price. Which I think is fair as it is used and I will have no warranty, even if it is “brand new in box”.

If you're buying in SA then I'm assuming the CRC price you're using as your base has had delivery, customs duty & VAT added?

Edited by NC_lurker
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If you're buying in SA then I'm assuming the CRC price you're using as your base has had delivery, customs duty & VAT added?

Yes - Bike parts have no Custom Duties - thus only VAT (shipping normally free when buying above a easy to reach value) and DHL/Skynet handling. 

 

Example: Di2 junction box A

CRC: Landed at my door all in 923

CWC: R1650

Hubber: R1350 + shipping 99

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It’s pretty easy really.

 

Make the seller an offer and if he doesn’t accept then order online.

 

I have been buying and selling online for ages now and often explain to the seller why I made the offer I did.In most cases they will be understanding and accept it.

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My rough rule of thumb:

 

For recent model 2nd hand bikes and components - take new price, deduct 25 % for immediate depreciation / loss of warranty. Then take 10 off that for every year the bike is old.

 

Add a bit for scarce / desirable models. Deduct a bit for run off the mill / plentiful ones. Add a bit for great condition, deduct a bit for above average scratches and dents. Deduct a fair bit more for models with a known weakness like cracked frames or stay away altogether. Deduct replacement cost of worn cassettes / chainrings etc. or walk away. Deduct replacement cost of stuffed shocks / suspension forks / pivot bearings or walk away. 

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I don't have space to sit with a bunch of spares and I regularly have as I like changing, upgrading and just building bikes. I look at new prices and then think wat I would like to pay for something like that and advertise it at that price. So I never sit with something more than a day or two.

You can ask what you like it's not to say you will get it.

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My rough rule of thumb:

 

For recent model 2nd hand bikes and components - take new price, deduct 25 % for immediate depreciation / loss of warranty. Then take 10 off that for every year the bike is old.

 

Add a bit for scarce / desirable models. Deduct a bit for run off the mill / plentiful ones. Add a bit for great condition, deduct a bit for above average scratches and dents. Deduct a fair bit more for models with a known weakness like cracked frames or stay away altogether. Deduct replacement cost of worn cassettes / chainrings etc. or walk away. Deduct replacement cost of stuffed shocks / suspension forks / pivot bearings or walk away. 

 

So how long does it take for you to determine a price  ?? :w00t:

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So how long does it take for you to determine a price  ?? :w00t:

:D  :D  :blush:  Let's just say that sometimes the item is gone by the time I decide. At other times the seller is a bit more prepared to negotiate after a few days of no interest.

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