Does GC discount used gear?

[Jim C]

With the big sale weekend ahead, I'm wodering if any of you have been able to get a discount on used GC gear.
I've bought a few used items but could never get them to give a discount even for items that had been listed for awhile.
Is there a coupon or any advice for negotiating with these guys?

 

[jimmyb]

Used a 10% used gear coupon that came out a year and a half ago. Those coupons are few and far between though

 

[tlite]

It's case by case. For something that has been in inventory for awhile, they usually will haggle a bit with you. For something they just got in, they typically won't.

 

[derekeugene]

Its always worth asking, especially if its been there for a bit. Sometimes they'll at least cover shipping just to get the sale vs. you just going online and buying.

 

[Cliff Colton]

GC buys a used bass for $100 and sells it for $500. When the bass is returned to a store because it wasn’t in ‘great condition’ as advertised, GC records the value of the bass on its books as $500 since that was the sale price, despite the return. Instant paper profits, a healthier balance sheet, better credit rating, more ‘secured’ loans... why should it discount used gear?

If GC was interested in selling used gear instead of cooking the books, it might want to consider showing more than one photo of the gear taken with a cell phone camera from 20 feet away.

 

[dave79]

GC buys a used bass for $100 and sells it for $500. When the bass is returned to a store because it wasn’t in ‘great condition’ as advertised, GC records the value of the bass on its books as $500 since that was the sale price, despite the return. Instant paper profits, a healthier balance sheet, better credit rating, more ‘secured’ loans... why should it discount used gear?

If GC was interested in selling used gear instead of cooking the books, it might want to consider showing more than one photo of the gear taken with a cell phone camera from 20 feet away.

That's a pretty serious fraud allegation you've made, what evidence do you have that it is true?

 

[briandavismurph]

Here is their selling model for used gear as I have been told by GC employees and experienced having sold them some gear I felt would be a "tough sell"
Establish price of the item using E-Bay, Reverb, etc [let's use $100 for simplicity]
Pay the seller $60 for the used article [60%]
Re-list the article online and in store for $100
After the item sits around for 2 months start marking it down 10% at a time.
They typically do NOT negotiate the sale price unless there is some kind of event on used which is rare.

 

[NecroticImbecil]

I asked an employee recently about a used bass that they had priced at $300 which sold new for $250 in 2012. Employee told me they had no control over pricing, but that after 100 days the price would drop.

 

[Cliff Colton]

That's a pretty serious fraud allegation you've made, what evidence do you have that it is true?

You first. What evidence do you have?

 

[dave79]

You first. What evidence do you have?

You have to be joking. Sometimes I wish the internet wasn't invented.

 

[yodedude2]

That's a pretty serious fraud allegation you've made, what evidence do you have that it is true?

what part of that would be fraud?

 

[dave79]

what part of that would be fraud?

Pretty much all of it. "Cooking the books" to make the company appear to have more financial assets than they do and acquiring loans etc. off of the fraudulent figures would be the source of multiple felony charges at both the state and the federal level.

 

[dave79]

...and saying in print online that they are committing a slew of crimes with absolutely no evidence to speak of is libel...

 

[soulman969]

Back on the main topic. Used gear is not included in this sale or virtually any other sale they conduct throughout the year. Neither are blems and/or returned open box merchandise. As others have posted they will eventually begin to lower prices after a certain period of time but those I know who've worked their including a store manager say dealing on used gear is out of their hands. Corporate policy prevails.

GC is not the place to go if you're looking to bargain or horse trade.

 

[soulman969]

GC buys a used bass for $100 and sells it for $500. When the bass is returned to a store because it wasn’t in ‘great condition’ as advertised, GC records the value of the bass on its books as $500 since that was the sale price, despite the return. Instant paper profits, a healthier balance sheet, better credit rating, more ‘secured’ loans... why should it discount used gear?

If GC was interested in selling used gear instead of cooking the books, it might want to consider showing more than one photo of the gear taken with a cell phone camera from 20 feet away.

IF that's true it would be an odd way to keep the books. Certainly not something an independent auditor would sign off on.

 

[dave79]

IF that's true it would be an odd way to keep the books. Certainly not something an independent auditor would sign off on.

Legally they’d have to list their assets for what they’re worth for taxation purposes when they acquire them. Even if it doesn’t sell for $500 it is taxed in inventory at 500 since that’s what they are selling it for, the thought that they would only value it at 500 after it’s returned is absurd and ridiculous...along with being incredibly illegal. The best way I can think of to describe this to someone who hasn’t run a business is to think about your taxes you pay yearly on a car or a house. If you pay 500$ To buy a 5,000$ car you still get taxed for a 5,000$ car.

 

[soulman969]

When I ran the division of a company selling capital assets (medical equipment) if an item was returned for credit it was assigned a new inventory number but it's cost remained as whatever we had paid for it. It was not entered as if we had repurchased it at it's sales price. The sales figures were simply adjusted to reflect the credit.

Based on anything I know or have worked with that is how it's done according to GAP accounting principals.

 

[yodedude2]

The best way I can think of to describe this to someone who hasn’t run a business is to think about your taxes you pay yearly on a car or a house. If you pay 500$ To buy a 5,000$ car you still get taxed for a 5,000$ car.

i get that, but in the example, they sold the item at 500. and bought it back for the same amount, 500. so for a nominal inventory tax, they are now valuing it at 500., not 100, and are taxed at the higher amount. it seems like a dumb business practice to me, but i don't see the fraud.

(i ignored the whole bit about 'cooking the books' as opinion and conjecture.)

as far as the o.p. goes, any discount on used gear is a 'phantom' discount in my opinion. used gear is worth what the market at large will bear. specifically, 'will they negotiate?' i expect the general answer is 'no.'

 

[dave79]

i get that, but in the example, they sold the item at 500. and bought it back for the same amount, 500. so for a nominal inventory tax, they are now valuing it at 500., not 100, and are taxed at the higher amount. it seems like a dumb business practice to me, but i don't see the fraud.

(i ignored the whole bit about 'cooking the books' as opinion and conjecture.)

as far as the o.p. goes, any discount on used gear is a 'phantom' discount in my opinion. used gear is worth what the market at large will bear. specifically, 'will they negotiate?' i expect the general answer is 'no.'

Claiming that you have more assets than you do to get a loan is fraud. Not sure how I can make that any clearer.

 

[yodedude2]

sorry i don't get it. if it sold recently for 500., and can reasonably expect to sell again for 500., then it should be an asset valued at 500. thanks for trying to explain it to me, though. cheers!