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Old December 4, 2012, 09:53 PM   #12
Double Naught Spy
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Join Date: January 8, 2001
Location: Forestburg, Montague County, Texas
Posts: 10,423
Cowboy, absolutely!!! As I said above, you will never get full value trading in an item to a dealer (not realistically anyway) and certainly NEVER selling to a dealer.

Selling to a dealer or trading in to a dealer is sort of the lazy way to do things. It saves you all the hassle of having to deal with all the yahoos that want to look at, touch, toy with, and more often than not, not buy what you are selling. So when you sell or trade to the dealer, you are transferring to the dealer all the hassles that come with the dealer then having to resell the item. That involves time. Time = money or cost to the dealer.

If folks watch some of the hokey pawn shop shows like pawn stars, they bring in an expert who states the value of an item and then the customer virtually always says that is how much they want for the item. However, the pawnbrokers then always have to explain that they can't ever make money by paying full price for an item because then when they sell it for full price, the make ZERO money. Making $0 actually translates into an actual operating loss because of the time and overhead that then go into trying to sell the item.

There is a very good reason why there are wholesale prices and retail prices. The difference between wholesale and retail has to account for all of the related expenses in bringing a given item to market and hopefully making a little profit along the way, which may only be a few percent.

Contrary to popular belief, businesses really never break even on anything. Either they make a profit or they take a loss. Actually breaking even given all the expenses of overhead and such make it virtually impossible for the sale of a given item to actually break even.
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