BuyBack | Determining Your Price Strategy
Where do we aim? How do we do? Is there a science to it?
This is always a big question in our chats. Lets have a look at the topic.
The Market | Summary Details
You can always lowball for a quick profit but you will never scale this way. The ceiling is low and customer retention will always be an uphill fight.
There is no victory at bargain basement prices.
“Dwight D. Eisenhower”
With fair, accessible and competitive prices you can dominate your market, keep your clients smiling and build volume.
If we do the math we do have a pretty easy market to manage here. Your customers will likely check trade in offers with their carrier first as over 75% of the US population is post paid.
Remember, the carriers are going to upsell and require new lines/purchases. Not only can you find a sweet spot where you have a better offer (see below), you have the ablity to pay your customer in cash/zelle/venmo/paypal/etc.
It will be clear to your customer that your local offer is better than what is happening in the corporate world.
So how do we find the sweet spot? Lets have a look at “the markets today”
Device | 12 Pro Max 512GB, Unlocked
Prices below were pulled on 3/28/2022
The Math | What are the big guys doing?
We only have a few big players to check here.
Lets have a look.
Apple is offering up to $630.
They do not ask carrier or memory size. They only offer trade in credit.
We will assume this $630 is for an unlocked, brand new 12 Pro Max 512gb.
Our Direct Buyer pays $865. You can use any buyer with our system. We are happy to share price lists.
Anything under 27% margin will beat Apple.
AT&T is offering $525.
They will only give you statement credits.
Our Direct Buyer pays $865. Anything under 39% margin will beat AT&T.
Tmobile is offering $435.
They will only give you statement credits.
Our Direct Buyer pays $865. Anything under 50% margin will beat Tmobile.
Verizon is offering $550.
They will only give you statement credits.
Our Direct Buyer pays $865. Anything under 36% margin will beat Verizon.
The wild card..
GameStop 3/28/22 was offering $704.. (4/7/22 Update GameStop is down to $546)
These guys are burning money, they will pay you cash or a prepaid card. The prepaid card price is what we are using for this example. You can expect these prices to come back down to reality soon.
Our Direct Buyer pays $865. Anything under 18% margin would beat GameStop.
The Solution.
Your healthy margin play room is 10% to 25% of your selling cost to outperform the top corporate buyers.
Your relaxed margin playroom can go as high as 35% and you will still beat the carrier stores and their credit only offers.
To learn more about how we can use this math to automate your BuyBack Site or Trade In Platform please click the button below.
If you are old enough to remember this you get a discount