Retail Selling Experience?

[jibberish]

Anyone ever worked in an instrument store?

I am curious how much a used guitar is marked up.

For example, if a place is selling a 1966 J-45 (example) for $3,999, what's a reasonable guess on their bottom line?

[Dave F]

Depends on the store. GC usually pays 65% of the current market (what they’re actually selling for, not unsold listings) value for a used instrument and if it’s a vintage one they cannot deal on it unless they go through corporate. I’ve got a couple deals from them but you have to grab it when it comes in the door before they call it in and put it up for sale on line. 

[Boyd]

13 minutes ago, Dave F said:

 I’ve got a couple deals from them but you have to grab it when it comes in the door before they call it in and put it up for sale on line. 

My experience is just the opposite. Saw a 1965 J-50 for $3400 at a local Guitar Center on their website. It just sat there for over 9 months and they marked it down to $2400. I went to the store, played it, liked it and offered $2000. The salesman had to talk to the manager, who made one or two phone calls. Came back and accepted my offer with no haggling. So, in other words, my experience was the longer it sits around with no sale, the more likely they are to lower the price.

Of course, I have no idea what they paid for the guitar. And this was back around 2015, so the pandemic may have changed everything for all I know. But I bought a used 2020 J-50 1960's original online from Guitar Center last spring. It was truly in "like new" condition. At that time, a new one was going for $2500 (now it's up to $2600 IIRC) but I only paid $1700. Seemed like a very good deal to me, and I love the guitar. Would be interesting to know what they paid for it. Clearly, it had hardly been played. And I also snagged it right after they listed it online, they didn't even have a picture available yet.

Edited December 20, 2021 by Boyd

[Salfromchatham]

For "liquid instruments" they pay 60% of FMV.  So if 10 ebay and reverb sold listings show a 2016 guitar selling for $2,000, they will  pay $1200 - MAYBE $1300.

 

For "illiquid instruments" - which any older guitar is - its a much more limited demographic that will buy a vintage guitar... I am guessing they will pay at most 60% of FMV   at most.

 

 

[RBSinTo]

22 minutes ago, Boyd said:

  "....So in other words, my experience was the longer it sits around with no sale, the more likely they are to lower the price.".......

 

Isn't this a general policy of selling? Nothing new here.

RBSinTo

[Seagull]

There is nothing really acting normal at present.  There seems to be a shortage in most of the new market.  Pushing more people to go used than might normally consider it. 

I have not seen many bargain's on the used market right now.  

All I'm saying is that the "rules" on what a place would normally pay, might be a little lax at present just to keep stuff on the wall.

[Boyd]

1 hour ago, RBSinTo said:

Isn't this a general policy of selling? Nothing new here.

RBSinTo

I agree completely, I was responding to DaveF who posted the only way to get a good deal was to "grab it when it comes in the door". 

[Dave F]

21 hours ago, Boyd said:

I agree completely, I was responding to DaveF who posted the only way to get a good deal was to "grab it when it comes in the door". 

I didn’t say “ the only way”. My comments are based solely on my experience at the GC near me. I have personal friends that work there and they're instructed to notify corporate when they acquire a decent vintage instrument and then they are instructed to take photographs. Corporate then decides value and if the store holds on to it while it's listed or if they ship the guitar to one of the major markets like Hollywood. They have one day to report the guitar. I'm sure the policies vary according the the local market, type and condition of the guitar. I'm in total agreement that when a guitar sets around unsold the price will drop and willingness to deal does happen. I've bought a couple that way,

Edited December 21, 2021 by Dave F

[rct]

The bottom line for any GC is determined by the manager and/or the district.  There is no magic potion that will tell you how much to offer plus 25 cents to get the screamingest deal in the history of deals ever.  Today it is one number, tomorrow it might be completely different.  Make them an offer, take your chances.  Worst that happens is they say no.

rct

[zombywoof]

I used to help out in a music shop.  Not a big box store but a small Mom & Pop place.  The kind of store which turned into a picking parlor on Saturday afternoons when the gang of regulars tended to show up.  When it came to used instruments the owner's general rule of thumb was to lay out 50% of what he felt he could get for an instrument.  Not to be unexpected the longer a guitar hung on the wall the more willing he was to cut you a deal.  

On another note everyone who plays should do a stint working in a music shop.  It is an interesting experience sitting on the other side of the counter.   

Edited December 21, 2021 by zombywoof