Some Used Marketing Behaviours And The Explanation Why...

[V]

Well.. let's do some marketing lessons (although this is not my field and someone else could have explained it better)

There is a product (let say something related to our hobbie to narrow our examples)

Retail price of the product if for example 200$.

This product does medium volume sales. At the same time in the Used market you can see this product in big volume sales (compared to other products) for around 60$ in very good condition (hardly used).

Now here comes the question of the poll...

Why is that happening and the specific product is sold at that low price ?

Especially in a 'like new condition' ?

Answer in the poll... Some people may feel what I want to say with this post some others won't, but let say it is something related to/or a replica watch (watch/ strap/ watchcase/ aftermarket stuff/ etc etc).

[cornerstone]

I think there are a variety of reasons depending on the product. Here are few that occur to me:

1. The product is commonly given as a gift.

2. The product is one that tends to be bought on 'impulse' or without usual caution.

3. The product is often superceded by newer, better technology

4. The product wears out quickly

5. The price of the product is suffering price deflation

6. There is oversupply or new cheaper supply of the product, existing sellers may try to protect their margins

7. There is a dominant player in the supply of the product that can charge a very high premium and act defensively, competing products may be much cheaper - creates a gap for resale.

Just a few ideas.

Cheers!

[pubus]

imo its because of the lower price. We expect the piece overall quality same as the retailers one, but used, and checked and valued lower price. But I will definitly not buy from unknown seller, if the price is in that big difference from the retailers price I must have certain confidence that its gonna be good quality. If the price range would be close to retailers one, than nobody with common sense would buy used one.

Another things is that used market, f/e some auction web services, are excluded of paying tax for the particlar piece. That makes the price lower for the same articule.

Thats my point of view

[slay]

1. the product is not worth a lot to the greater mass of the buyers, but theres still a bunch of collectors who are willing to pay a lot more

2. the product has been sold many times and the market is saturated and there arent very many potentialk buyers anymore, but theres a lot of ppl who have the item and therefore theres more supply than demand.

[V]

Answers according to the description I gave above... In general all may be good reasons.

1. that's not the case.. the product is selling for a high price

2. that's true.. but we cannot justify this reason on a big market (just to a few small occasions)

3. A very good reason. But willing to give it away without even test it before? It is selling as i said in like new condition

4. read the above...

5. Wrong.. the price even if the buyers try to lower the price, the RRP remains the same without taking into consideration the mass resale price. This means someone actually still buys the product.

6. True... this may look like a reasonable action

7. There are many sellers of similar products so it rules out this opinion.

I think there are a variety of reasons depending on the product. Here are few that occur to me:

1. The product is commonly given as a gift.

2. The product is one that tends to be bought on 'impulse' or without usual caution.

3. The product is often superceded by newer, better technology

4. The product wears out quickly

5. The price of the product is suffering price deflation

6. There is oversupply or new cheaper supply of the product, existing sellers may try to protect their margins

7. There is a dominant player in the supply of the product that can charge a very high premium and act defensively, competing products may be much cheaper - creates a gap for resale.

Just a few ideas.

Cheers!

[V]

imo its because of the lower price. We expect the piece overall quality same as the retailers one, but used, and checked and valued lower price. But I will definitly not buy from unknown seller, if the price is in that big difference from the retailers price I must have certain confidence that its gonna be good quality. If the price range would be close to retailers one, than nobody with common sense would buy used one.

Another things is that used market, f/e some auction web services, are excluded of paying tax for the particlar piece. That makes the price lower for the same articule.

Thats my point of view

I agree that's my opinion too.. .although it is a strange behaviour of the buyers when they clearely see that the products price new is 200$ and used is 60$ if we rule out the option of Scam (the offers are legit), then why the hell someone:

1. decided to buy overpriced products from the source and not buy the product like new (lightly used) with significantly less??? Even then if he likes it he can try the brand new (if the used factor is the thing that keeps him back)

2. and MORE important.... Decided to buy the product when it is quite obvious that it is not the quality that it is expected?

[V]

1. the product is not worth a lot to the greater mass of the buyers, but theres still a bunch of collectors who are willing to pay a lot more

2. the product has been sold many times and the market is saturated and there arent very many potentialk buyers anymore, but theres a lot of ppl who have the item and therefore theres more supply than demand.

Read my above reply for number 1.

For number 2 you have a point here... but the product keeps selling from the source in the original RRP, because if not, the seller would have lowered the price.

[cornerstone]

5. Wrong.. the price even if the buyers try to lower the price, the RRP remains the same without taking into consideration the mass resale price. This means someone actually still buys the product.

Sorry - I just meant as a general year-on-year trend. For example, if the price of a new product RRP (eg cars or LCD tvs) comes down year-on-year (deflation) there is less incentive to buy second-hand - thus the second-hand prices fall even further (people are buying new).

1. decided to buy overpriced products from the source and not buy the product like new (lightly used) with significantly less??? Even then if he likes it he can try the brand new (if the used factor is the thing that keeps him back)

Not all buyers are equally informed, and not all can pay right away. A lot of people prefer to buy retail (they go to travel agents for plane tickets when you can buy online etc). Some people are lured by retail advertising (the importer from China doesn't do that) or by interest free offers, etc., etc. Retail can also give it to you straight away - the most expensive thing any buyer can do is be impatient or in a hurry i.e. the extra money can be the convenience.

Are we discussing a particular product?

[V]

- Some people are lured by retail advertising

- the extra money can be the convenience.

Are we discussing a particular product?

Two points that are very good for taking into consideration.. Advertising and convenience.

About the particular product I have something in my mind, but let say it is something related to/or a replica watch (watch/ strap/ watchcase/ aftermarket stuff/ etc etc).

[cwai02]

demand/supply...

[Edge]

Let us not forget the GREED of the second hand buyer. The fact that something is NOT new gives the second hand buyer a good EXCUSE to low ball.

People always see that there is a significant reduction in price even if an item has NEVER been used.

Take the car business, say I buy a brand new car, as soon as it goes off the lot it is second hand and has lost a SIGNIFICANT portion of it's value, a $10000 becomes more like a $75000 in the space of SECONDS. If I wanted to sell it on 5 minutes after buying it having done less than a 100 yards it in it would depreciate by approx 1/5 to 1/4 of it's worth.

Rediculous IMHO.

But there will always be people who pay the premium to have something FIRST and new, and then there are always the people who want a bargain and will haggle for $0.01 and drive the price as low as possible that is the nature of our economy and the nature of the business place.

My thoughts...

[V]

demand/supply...

Not that simple.. I agree that may be the case but this should have ended in the DECREASE of the Retail Price.

If there is not general demand (as the used market indicates) you lower the price.

So I guess if the price remains high, there is a demand for the RRP seller and not a demand for the used market?

Or maybe selling one product of 200$, if in the first place has only costed you 20$ you don't give a [censored] if you will sell a lot?

[V]

Chris I understand what you say about the cars.. Different markets are working under different rules.

I am talking about our replica watch/strap/parts market specifically.

According to the FIRST I can agree but the time frame is very limited in the time till other dealers get the similar product.

Let us not forget the GREED of the second hand buyer. The fact that something is NOT new gives the second hand buyer a good EXCUSE to low ball.

People always see that there is a significant reduction in price even if an item has NEVER been used.

Take the car business, say I buy a brand new car, as soon as it goes off the lot it is second hand and has lost a SIGNIFICANT portion of it's value, a $10000 becomes more like a $75000 in the space of SECONDS. If I wanted to sell it on 5 minutes after buying it having done less than a 100 yards it in it would depreciate by approx 1/5 to 1/4 of it's worth.

Rediculous IMHO.

But there will always be people who pay the premium to have something FIRST and new, and then there are always the people who want a bargain and will haggle for $0.01 and drive the price as low as possible that is the nature of our economy and the nature of the business place.

My thoughts...

[cwai02]

double post.

Edited June 5, 2006 by cwai02

[cwai02]

Not that simple.. I agree that may be the case but this should have ended in the DECREASE of the Retail Price. If there is not general demand (as the used market indicates) you lower the price.

Second hand market and first hand market have two different sets of demand/supply with different elasticity. For example, you won't buy a used condom at any price, but it doesn't mean the price of a condom should go down.

So I guess if the price remains high, there is a demand for the RRP seller and not a demand for the used market?

It really depends on the product that you are talking about. Some luxary watches sell for much less on ebay and the daytonas are selling above MSRP.

So, you do need to tell us what is the product before we can make any reasonable analysis.

[V]

Second hand market and first hand market have two different sets of demand/supply with different elasticity. For example, you won't buy a used condom at any price, but it doesn't mean the price of a condom should go down.

I think I have been more than clear that I am talking about the replica watch/strap/aftermarket stuff market.

Giving examples of condoms or are not of our subject.

It really depends on the product that you are talking about. Some luxary watches sell for much less

on ebay and the daytonas are selling above MSRP

Again the genuine watches are targeting a different market.

[cornerstone]

Okay, cool - if it's a watch product that does rule out used condom prices! They would be a tough gig to sell!

You might find some answers to what you are talking about not so much in marketing and economics but in behaviour.

Since this is a consumer forum, and everyone here has taken the time to find it, I wonder if other people too have obvserved that the consumer habits of friends and family are very different. The buyers here are disproportionately rational for a product which is marketed as emotive (even all you PAM nuts!!). They research what they want, and want the best quality at the best price.

Despite years of effort, some people I know simply cannot be persuaded not to be foolish with their money. They, for example, would think that a Sony DVD player bought in Harrods was better than the same Sony DVD player purchased at an electrical store, let alone the unbadged version bought online for a fraction of the price.

This consumer will always pay the $200 you talk about. They would always buy a watch from an AD, and not haggle.

These are "dream customers". You should try to get some of this action too!