Ever gone to trade in a used car? Same thing. Trade-in offers vary widely, at least in my experience.
Why might trade-in values for hi fi equipment vary widely? It’s all about the dealer, their current inventory, and the ways they like to do business.
In all sorts of luxury retail, dealer divide into those who focus on profit-per-unit vs. those who focus on profit-per-week (or month or whatever). Some dealers would rather keep a unit in inventory than discount it that extra % that it takes to make a sale. Others take a ‘move it out, get the cash, and then restock’ approach.
Same with trade-ins. Some dealers are happy to make less profit but in the process perhaps make a new customer, sell a cable or other accessory along with it, etc etc.
I’ve made offers on expensive wristwatches, been turned down, and then seen the same watch at the dealer 3 months later. My offer was not below cost; they just didn’t want to sell it to me at that price. Their decision! And when I go to sell a watch, I shop it to 3 well-known used watch retailers and always get 3 different offers.
… and of course the element that lubricated that entire process was the sale of CD555 … add that to the equation and you have a very different picture.
… just as the sale of the CDS3 to the customer who had originally bought the CDX2 did the same.
He seemed to take the view that if you were both buying and trading in units bought from him in the first place, then he could afford to keep both himself and the customer happy.
I regularly used to hand over substantial sums of money, yet still manage to feel that I was coming away with something of a bargain.
And that, as I suggested above, is how to run a successful retail business.
Well OK … but how about this? buy a CDS3 from him … then 6 months later tell him that the serial number gives you bad vibes and you’d like to change it for a new one with a different number. He’ll give you a price. Then tell him that you’ve changed your mind and you’d prefer a CD555 this time. I would guess … a different price might be available.
Look, there’s the trade-in value a dealer gives you, and the price a dealer gives you for an item they’re selling you.
The simple math, just as with the car trade-in process, is that the dealer can raise the value of the trade-in and lower the discount on the new item without changing the total value of the deal to them (or you) by one farthing.
If you’re a customer who trades in / trades up every few months, obviously the dealer knows this and factors that in. (Some profit on each of many transactions) > (More profit on one transaction)
This really isn’t very complicated. It’s just a matter of finding a dealer who works with you in a way that suits you.
Perhaps i wasn’t really used to high end audio dealers acting like used car dealers…
I didn’t so much find the low trade-in price insulting to my wallet, as that i found it insulting towards Naim. I think the Nova is a great piece of equipment well worth more than 40% of it’s retail price after 2 years. The fact that a Naim carrying dealer approached it like it really wasn’t worth much at all left a bit of a sour taste. It devaluated the Nova on another level than just financially.
You can think what you want to think, but what it’s worth is what a buyer will pay you. And there is no way a dealer will pay you retail; they are paying you wholesale. If another dealer will give you more then the simple fact is that the first dealer was wrong. It’s not insulting, it’s just an indicator that they don’t know the market and/or don’t care. Again, if they have 2 more in the back to sell, the value to THEM will be lower relatively.
Perhaps things work a bit differently in the States (i really don’t know), but where i live in Western Europe this is not really normal. High end or luxury stores tend to take both their customers and the brands they represent very seriously, and they don’t just throw around with numbers. There are only a handful of high end audio dealers in the country, and they know the market well. It’s normal for them to want to establish a long term relationship, and not just get the best deal of the day.
Anyhow, it was an interesting and insightful experience for me. We live and we learn.
Yes the way I described it is definitely the way things work here in the States. With dealers who are independent and thus able to strike whatever deal they wish to make . . . with the proviso that their suppliers (talking about new products here) absolutely threaten them with pulling the product line if they discount. And for some luxury goods (some watch brands), the dealers at least claim that their invoices are audited by the manufacturer.
(The US Supreme Court has held that setting a minimum price for a retail item is not per se illegal.)
Many luxury watch manufactures hate discounting. They discovered that the best way to prevent discounting is to open company-owned boutiques and to pull the lines from the independent dealers. It also results in them selling all watches at retail, vs. wholesale. Win-win for the manufactures but it means they now run stores, lease real estate, etc.
On used items – there is no one to restrict prices and it’s a total free market. And dealers generally behave that way. It’s all about supply, demand, and what a dealer will accept. Negotiations are very common.
It’s a very subjective answer, what is « good enough » or « great » for someone could be « far from decent » for someone else. Lot of combinations sounds great until you compare them to another combo and even then, sometimes you loose something when you pick something else.
I am far from being an audiophile and my system is relatively modest compared to lot of members systems but I can share my experience. I didn’t have your budget when I picked my system but i listen to classical music too (and also jazz) and the Nova is good enough for me, the sound is pleasant and the emotional impact is there too. Maybe you should try Sonus Faber Speakers too, I find them easy to live with (they are detailed and warm with less edgy highs).
If you want to have a second system for headphones you can get a pretty decent one (I bought an Hugo 2 / Sennheiser HD800s before the Atom HE release) and still fit into your budget.
I didn’t try one but you can get a good dac / headphones amp and a SN3 with very nice speakers for your budget.
I also believe that you either make up or lose money on your initial purchase (follows my thinking that true value is what purchasers are prepared to pay). With that in mind, I don’t often buy new unless I can get a decent discount.
The first dealer offered 40%, not 60%. Just imagine going to a Aestheix dealer with your 2 year old $8000 Audio Mimas to upgrade and they offered you $3200 for trade in, you would surely not be pleased.
The second dealer offered 75%, which is a huge difference ofcourse. Angst justified!
