Question about markups in for sale

[nn3453]

I know some people will interpret this as whining. I am not. I am just trying to figure out how the for sale forums work better, so I may use them better. I was under the impression that you listed your item and posted a reasonable price. If it was a common item, you posted it for below what you would pay a dealer/retailer.

Seems like the way things go these days is that sellers post their items at a markup because they know that buyers will try to lowball them so the latter feel like they are getting a deal. In the end, the selling price is close to what it would have been if the seller and buyer didn't engage in this little courtship ritual over PMs. I have a feeling that sellers often engage in auction like activities over PMs (get a bunch of offers and honor the highest one irrespective of when it was received).

Again, I am not really bitter. If that is how it works, that is how it works. I have had better luck selling my items at the listed price on other forums because I usually go with a 10-40% below retail price depending on the item.

Just confused and I want to know as a seller what markup I should post my items at on calguns: 10%? 20%? 30%?

[Spyder]

Capitalism.

[nn3453]

Capitalism.

I am all for capitalism. I don't think capitalism says anything about charging a phony markup and then behind the scenes haggling as seems to happen often in the for sale forums.

[Cokebottle]

An item is worth what someone will pay for it.

Just because we may have seen item X at $75, doesn't mean the person offering it up for sale didn't pay $90 for it.

There's a current thread running (actually started last January) where the seller is asking about $50 more than a local gun shop offers the current version brand new... yet a few members have bumped the thread asking if it's still available. The posted price is $100 below gungallery's listed price.

It can be even worse with vehicles, particularly motorcycles. Someone will buy a new bike, spend $4,000 on accessories, then post it for sale at KBB retail plus $4,000... the truth is, he would be better off stripping the accessories and selling them on FleBay where he might get 50% of their cost. They won't add more than a couple hundred to the selling price of the bike, and the bike is going to sell for somewhere between trade and retail.

Many sellers have unrealistic expectations, especially in today's market. In other cases, they honestly have no idea what the item is worth, so they price it high and hope for the best. Any quick sale is usually followed by "seller's remorse"

And yes... buyers love to lowball. Again, particularly in today's market, nobody wants to spend more than they have to. If I can spend 20% more and get a brand new one, I'm going to do it.

[troysland]

When someone puts obo next to the price, I understand that to mean all offers considered. In our market economy, the best offer takes the cake. The problem I would have is if someone posts a price and then gradually increases it after someone has committed to buy it at the original asking price. I've yet to see that, but that would make me quite bitter.

[freakshow10mm]

Price your item what you think the market is and sell for a price you and the buyer agree on.

[zman]

In the end, the real price is what the market will bear. If nobody bites, that when you see them add the phrase "Price Drop!".

[Spyder]

Cap. It. Alism.

If you don't want to pay the asked-for price, make an offer. If the seller doesn't want to sell at that price, they can say nope or they can counter offer. That's the way capitalism works.

[nn3453]

I do comprehend what you guys are saying.

I guess I can make my point better through an example.

Seller posts an item for 20% of what he thinks it will sell for. Buyer "lowballs" him by PMing with an offer than is 20% lower than his asking price. Buyer thinks he is getting a deal. Seller is happy because he got his expected price.

Buyers are automatically used to doing this. So if seller posts an item for what he thinks it will sell for, buyers will try to lowball 20%. So the seller would have been better off posting his item at a price that was higher than his expected price.

I see $600 guns being marked up at $800 and in the end they sell for $600. But if the same seller had priced it at $600, a bunch of buyers will offer him a lot less than $600, which is lower than what the actual market price would be.

So the seller is motivated to always price the item higher. That is why you see so many items that are posted at fanciful prices.

[Jicko]

I do comprehend what you guys are saying.

I guess I can make my point better through an example.

Seller posts an item for 20% of what he thinks it will sell for. Buyer "lowballs" him by PMing with an offer than is 20% lower than his asking price. Buyer thinks he is getting a deal. Seller is happy because he got his expected price.

Buyers are automatically used to doing this. So if seller posts an item for what he thinks it will sell for, buyers will try to lowball 20%. So the seller would have been better off posting his item at a price that was higher than his expected price.

I see $600 guns being marked up at $800 and in the end they sell for $600. But if the same seller had priced it at $600, a bunch of buyers will offer him a lot less than $600, which is lower than what the actual market price would be.

So the seller is motivated to always price the item higher. That is why you see so many items that are posted at fanciful prices.

Not a good example.... "$600 gun".... how do you justify that being a "$600 gun"? You may THINK that it is a $600 gun... while in someone else's mind... it is a $650 gun? or it is a $550 gun? So, what is "fanciful prices"? you think we should "regulate" the prices that people are allowed to post for their items....

ECON101, free market, man...

And forum rules are rules..... no auctioning off things (ie. must have a price), must have a location, and no thread crapping.... everything else.... it is a free market...

PS. who is there to "regular" how much a share of GOOG or BRK.A should cost?

[berto]

I do comprehend what you guys are saying.

I guess I can make my point better through an example.

Seller posts an item for 20% of what he thinks it will sell for. Buyer "lowballs" him by PMing with an offer than is 20% lower than his asking price. Buyer thinks he is getting a deal. Seller is happy because he got his expected price.

Buyers are automatically used to doing this. So if seller posts an item for what he thinks it will sell for, buyers will try to lowball 20%. So the seller would have been better off posting his item at a price that was higher than his expected price.

I see $600 guns being marked up at $800 and in the end they sell for $600. But if the same seller had priced it at $600, a bunch of buyers will offer him a lot less than $600, which is lower than what the actual market price would be.

So the seller is motivated to always price the item higher. That is why you see so many items that are posted at fanciful prices.

As a buyer do the expected haggling or don't, it's up to you.

As a seller price however you see fit. Do the expected haggling or don't, it's up to you.

Nobody here is forced to sell or buy for more or less than they feel is appropriate.

[Spyder]

I sell stuff. I ask more than I'm willing to take for it all the time. If I'd be willing to let someone give me $600 for something but I ask $800, once in a while someone will just pay the $800. That's as good as free money. It would be dumb to not have haggle room.

Same thing for the buyers side. Why say "oh, yea, I'll give you that much for it" instead of making an offer for less. Doesn't make sense to do it any different.

[Spyder]

...For example. I once sold an old beat up salvage titled 4Runner. It was beat all to hell and I wouldn't have thought it'd bring more than five hundred bucks. I loved the hell out of the truck and didn't REALLY want to sell it, but I threw it on craigslist for $1500. It sold for $1200. I was happy, the buyer was happy. Capitalism, man. That's the way it works.

[nn3453]

And forum rules are rules..... no auctioning off things (ie. must have a price), must have a location, and no thread crapping.... everything else.... it is a free market...

And I maintain that sellers are conducting auctions behind the scenes by posting an inflated price and waiting for the best offer.

Nevermind, you guys missed the point. The price is decided by the market. Yet, if buyers always make a lower offer and sellers know this and always post a higher price, it penalizes the odd man out seller who does not ask for a price that is higher than market price. Basic game theory. So I wondering what this higher price should be for the seller. I see this going on more on calguns compared to other forums.

[Scratch705]

this is why i always "lowball". to bypass even the inflated markup that seller put in for haggling.

but then again... that is probably why i haven't had much luck in buying... haha