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Store credit for trade-ins - What's a fair % of sale price?

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  • 04-11-2017 7:14pm
    #1
    accensi0n
    Registered Users Posts: 2,738 ✭✭✭


    Let's say you're trading in some items in a store and you're looking for store credit, not cash. What do you think is a fair % of the sale price that you should get?

    Since you're getting store credit, looking at it naively, you could say maybe you should get 100% as the store isn't losing out, no net change for them.

    But there are probably tax implications for the store from that transaction, then there's the fact the store had to spend time dealing with you instead of someone else that may be there to make a regular purchase, or that they wouldn't want to facilitate being treated like a library. Plus they're a business so at the end of the day, while they probably want to keep customers happy and coming back they also want to make as much money as possible.

    So, what do folks think is reasonable, something like 70% of their sale price?


Comments

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    #2
    tkd93
    Registered Users Posts: 348 ✭✭tkd93


    I dont think you understand either how retail or accounting works.


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    #3
    accensi0n
    Registered Users Posts: 2,738 ✭✭✭accensi0n


    tkd93 wrote: »
    I dont think you understand either how retail or accounting works.

    Correct.

    What % do you think makes sense and why?


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    #4
    tkd93
    Registered Users Posts: 348 ✭✭tkd93


    accensi0n wrote: »
    Correct.

    What % do you think makes sense and why?
    For the sake of my poor fingers I will only address the second part of your original statement.

    It would make no sense for a store to charge the same percentage trade in for all items. Some items are far more difficult to sell than others. A retro store for example wants rarer classics but will do everything it can to stop people trading in fifa 01 for the ps2.

    I think maybe a little under 60% ideally but this will be influenced by huge amount of factors.


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    #5
    BGOllie
    Registered Users Posts: 1,593 ✭✭✭BGOllie


    a very rough and probably very conservatively generous way to look at it is that to be viable, any business need to, at the very least, double their money.

    Meaning that an item selling for €100 (to make things easy for percentages) will be purchased for €50. however that's not quite true because if it sells at 100, €23 will go to VAT. Meaning that the profit for the store is only 22 (100 - 50- 23 ) ... sooo for a retail price of 100, they will need to purchase it for around half the retail price minus VAT, (100-23)/2 : 38.5% of the retail value.
    Store credit is a bonus to the seller in the sense that they offer a bit more since no money is exchanged. 8 to 15% at the discretion of the store is customary if I recall correctly

    So realistically you're looking at around 50% , give and take a few, of the retail price in store credit but like it said it's a very oversimplified version of actual accounting .


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    #6
    CiDeRmAn
    Moderators, Category Moderators, Computer Games Moderators, Society & Culture Moderators Posts: 34,528 CMod ✭✭✭✭CiDeRmAn


    I would say that this isn't an arcade, retro or emulation question at all.
    As such it might be better answered in the gaming forum.

    but, as it's asked here....

    I worked in retail for a while and the figures offered for trade on either cash or credit, varies with each store or chain of stores.
    The figures primarily differ given the rrp of a game, or more likely the market value of a game.
    So, a shop may sell a game for €40 new, €30 pre-owned and offer €15 cash for a trade, depending on it being CEX, GS or Smyth's.
    They have no reason to offer more, unless an item is in demand, so the NES Mini was being sold to CEX for cash in an amount more than the rrp, as it was an in demand title.
    On the other hand, a game like Just Cause 3 got very cheap very quickly, as it wasn't particularly popular, so if you bought it at the rrp of €60 you were going to get a pittance from most retailers on trade.

    It never seems fair, we all seem to be on the losing side of these transactions, but then the people behind the stock of those stores have their stock numbers at their finger tips, as well as the going rates for those items, so they can actively alter the game prices to reflect the market.

    We see, say, Argos, having a sale of say a Pokemon title, selling it for €20 instead of €45, there is a small window of opportunity for some to buy up and trade it in with GS or CEX and make a profit, but this window shuts quickly, with the stock levels driving down the value of the game.

    A lot of game retailers make more from pre-owned sales and trades anyway, certainly CEX are entirely based around such sales, but even in GS, they make more from the CoD:WWII they sell pre-owned than new, because of the profit to the company is higher with the preowned item than new.

    But, ultimately, it is entirely in the stores gift to set their trade in prices, as unfairly or otherwise as they like.
    The universe doesn't appear to care about fairness, nor does business practice, the prices are set where the market will tolerate it, end of.
    If the prices on offer offend, then sell it on ebay or Adverts, a person may have more profits there but will have to tolerate lowballers and the possibility of not selling the item at all, as well as paying fees that will eat into profits eventually earned.


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