What you would call fair is not important. The dealer is already struggling to break even so will want as much as possible for his demo stock.

Have you not noticed that B&O dealers are closing faster than village pubs!

It depends what are you buying tv?,music system? speakers? .Tvs suffers the biggest depreciations  imho  depends which one?,but like every thingelse depends what the dealer paid for the item trade in ? desperate sellers etc👀

seethroughyou wrote:

Does anyone have an idea of what the trade price is for items bought by dealers from B&O? The dealer then adds on their margin to pay for rent, utilities, staff fees etc... I'm trying to work out what a fair depreciation is on a used item without upsetting the dealer.

Two things I'd point out here: 1) the dealer makes a relatively small margin compared to other industries. I don't think it's much more than 30% 2) you can't work out a "fair depreciation" yourself as that's the dealers call. If he makes an offer, you choose to accept. If you don't, look for another avenue for selling the product.

The simple fact here is the B&O products do not have a 'fair depreciation' like they did even 5 years ago. Sadly it's far from fair now. You'd be very lucky to receive 30% of the original price, in my experience.

Remember the dealer has to account for VAT on purchasing/selling pre-loved items, too. Consumers often forget about this - when the dealer buys a TV from B&O, they can claim the VAT back. When they buy from an individual, there's no reclaimable VAT and then if they sell to a pre-loved company (such as Lee's LifeStyle), they have to deal with the VAT element as both companies are VAT registered.

So, taking the UK's VAT rate into account, that's 20% of the cost taken up just from the VAT component.

joeyboygolf wrote:

What you would call fair is not important. The dealer is already struggling to break even so will want as much as possible for his demo stock.

Have you not noticed that B&O dealers are closing faster than village pubs!

Regards Graham

moxxey wrote:

Two things I'd point out here: 1) the dealer makes a relatively small margin compared to other industries. I don't think it's much more than 30% 2) you can't work out a "fair depreciation" yourself as that's the dealers call. If he makes an offer, you choose to accept. If you don't, look for another avenue for selling the product.

The simple fact here is the B&O products do not have a 'fair depreciation' like they did even 5 years ago. Sadly it's far from fair now. You'd be very lucky to receive 30% of the original price, in my experience.

Remember the dealer has to account for VAT on purchasing/selling pre-loved items, too. Consumers often forget about this - when the dealer buys a TV from B&O, they can claim the VAT back. When they buy from an individual, there's no reclaimable VAT and then if they sell to a pre-loved company (such as Lee's LifeStyle), they have to deal with the VAT element as both companies are VAT registered.

So, taking the UK's VAT rate into account, that's 20% of the cost taken up just from the VAT component.

seethroughyou wrote:

moxxey wrote:

 

Two things I'd point out here: 1) the dealer makes a relatively small margin compared to other industries. I don't think it's much more than 30% 2) you can't work out a "fair depreciation" yourself as that's the dealers call. If he makes an offer, you choose to accept. If you don't, look for another avenue for selling the product.

 

The simple fact here is the B&O products do not have a 'fair depreciation' like they did even 5 years ago. Sadly it's far from fair now. You'd be very lucky to receive 30% of the original price, in my experience.

 

Remember the dealer has to account for VAT on purchasing/selling pre-loved items, too. Consumers often forget about this - when the dealer buys a TV from B&O, they can claim the VAT back. When they buy from an individual, there's no reclaimable VAT and then if they sell to a pre-loved company (such as Lee's LifeStyle), they have to deal with the VAT element as both companies are VAT registered.

 

So, taking the UK's VAT rate into account, that's 20% of the cost taken up just from the VAT component.

 

 

 

 

Thanks moxxey, that's a detailed reply and quite a few things for me to consider. I'm after a win win situation that works for me as customer and the dealer. I'm not trying to take the **** and appreciate he has to put food on the table for his/her family. The VAT explanation was especially helpful and something to factor into the soft negotiations.

What are you looking to buy - I'll let you know if I think the price is reasonable...

seethroughyou wrote:

....and then holds on to it for years and when approached only offers 10% off a TV that was end of line several years ago.

Hmmm....  I see both points of view here, and it has frustrated me too - many times.

I've had numerous occasions when I've walked into a B&O Dealership and asked them if they wanted to offload a demo product which is old model, or discontinued.

I've offered the 'pre-owned' trade price, and had a look as if I was holding them up at gunpoint.  My reply was usually along the lines of "well, you can let it go now whilst it's still worth something - or you can still be staring at it in 2-3 years when it's worth nothing.."

On the flip side, though, the dealer isn't in business to make a loss - and some people have trouble letting things go for less than they paid.

When I was in the motor trade, getting rid of a vehicle for a loss, for the greater good, was called "wiping your mouth". It always hurt - but you could replace it with something else you could make a profit on, then you'd be back to square one and could move on from there.  The next deal, you'd be back in profit - or the other scenario could be staring at the same car you'd had for a year, with the same minimal chances of selling...

Lee

9 LEE wrote:

I've offered the 'pre-owned' trade price, and had a look as if I was holding them up at gunpoint.  My reply was usually along the lines of "well, you can let it go now whilst it's still worth something - or you can still be staring at it in 2-3 years when it's worth nothing.."

This is very true and a reason why the old (original) Bath store went bust. They accepted nearly anything and gave known customers a very decent price. Problem is, they were then lumbered with a tonne of stock and it built up and up. I remember going out back and seeing about 10 TVs and questioning why they had so many....for them to answer "this isn't even a 1/4 of the pre-loved stock, you want to see what's in the basement". A sure sign of issues to follow.

I have excellent memories of my old Bath dealer offering me such a decent trade-in for a 2-year-old TV that it's somewhat warped my view of B&O! I'd get a BV7, go back to him two years later and he'd often give me at least 50% of the original price. Often more. I'd then only have to find £2000 towards a new TV - so effectively I had "rented" a brand new BV7 from him for two years for only £1xx/month.

This must have lasted around 6 years or so, with me going back every two years and getting the latest model!

I had a couple of dealings with the Bath B&o on Pulteney Bridge, really nice folk to deal with.:)