Pricing used instruments

I've been to buy/ sell ad spaces online recently. It's none of my business how much people are valuing their  instruments but some of the prices are downright disagreeable to say the least. I'm not contesting extravagant tags per se but prices in light of the circumstances, the least being demand-supply considerations, is rather unbecoming. Let me share some situations with you so that you might re-think your urge to buy something online which you might think a bargain otherwise.

1. Used instruments in general

Here's a rule of thumb adopted by many price guide literature pertaining to used instruments; 70% of the paid-for price. This is a workable figure to begin with, the instrument would then be further appreciated by some special features or unique circumstances (limited finish release, anniversary pickups, etc.) or depreciated by condition. This is especially true for instruments equipped with irreplaceable parts or spares which are not easily obtainable at the stores. 

70% here is no issue for brands with very strong goodwill, Gibson & Fender are the top two references. Over time, these instruments would further appreciate in value due to a strong demand for discontinued models. However, these remain to be a case-by-case affair. The 60th Anniversary American Fenders did not experience a surge in re-sell prices, ditto the PRS's CE (bolt-on) models. The 2015 range of Gibson guitars feature all the undesirable attributes associated with the brand name- imagine buying one now, how much re-sell value does it have in time to come?

2. Condition

It is often the case that the instrument in question is further considered in light of its condition. A 5-year old instrument would command a reasonable asking price if it's in a very playable, presentable condition. Most of the time, it has everything to do with wear & tear. Imagine buying one with a further refurbishing cost factored in; it's just not worth it especially if it's still in production & the off-the-shelf tag is lower than all this trouble. 

There's this dude selling his 'original' Ibanez RG550 (whatever that means) in the $1K range but the instrument has a buckle rash which he deems 'normal'. You mean it's so normal, they have it right at the start in the factory? Also, please do not re-assure buyers the fact that your instrument used to sport a broken neck/ headstock/ whatever which had been repaired & restored to a stronger-than-original status. Can you really prove this? I'd rather you don't quote a re-sell price for such instruments, advise the buyer its original price & invite him to value it accordingly. I personally feel this is a more honest & forthcoming way to deal with the situation.

3. Rare

This is perhaps the most misunderstood term used to put a pre-loved instrument in a likable stead. What is 'rare' to you? Whatever it is, your 'rare' may not be my 'rare'. This is indeed the fundamental breakdown of this understanding. The local instrument ads here see many sellers labeling their instruments as 'rare' simply because it's discontinued. 

A discontinued instrument does not necessarily mean it's totally unavailable at the stores so this affects the supply consideration at the very least. Someone else out there might still have it for all you know & that affects your instrument's rarity, yes? The remedy here (personal take) is to highlight the limited status of your instruments; highlight to the buyer a little history & this doesn't hurt. If the buyer is someone guitar-inclined or understands your good intentions in telling him/ her it's not just buying another guitar out there, most likely, it would lead to a win-win situation.

4. Re-issue

Oh, damn. This is another one that sickens me. No apologies for letting you know that it's mostly Fender related. Do not be quick to agree that someone out there is selling you a re-issued '54 Fender Strat, especially if it's made in Japan. I have no issues with Japanese Fenders, they are top notch in many ways than just tone (I own a few Japanese Fenders myself). 

The confusion here is that the Japanese range of Fender instruments used a set of alpha-numeric references for their models that would suggest a faithful re-production to the unwary. Take the ST62 for instance- is this really a re-issued '60s Strat- you mean back in the 60's, Fender used a basswood body? Duh! Let's not get any further. The Japanese Fenders were manufactured with good intentions, they are by no means re-issues because re-issues here come with the understanding of the need to be accurate. Otherwise, why call it a re-issue? They are re-interpreting the spirit of those Fenders at that era, absolutely no contest about this but re-issues they are not. To date, the Americans have taken over the Japanese production & they are pretty clear of what they are offering.

5. Upgrades

You have an Ibanez RG which you bought for say $700 but you did a mojor face-lift to it; new hardware, 'superior' bridge, DiMarzio pickups, pro set up- the works. You have barely owned it for half a year & you wish to sell it for a good price of $1,000. Good luck to you.

We often assume buyers are agreeable with the so called upgrades to our instruments but the reality here is the contrary. Buyers appreciate instruments in their original status. If they wish to soup up their instruments, they would wanna do it at their own accord subsequently. It's not really practical to revert your modified instruments to its original features, it can be costly. The deal here is for you to highlight these upgrades & explain the hike in price. Offer the buyer the original parts as goodwill, no compulsions, of course. Negotiate accordingly. I come across such circumstances too often; sellers did 'upgrades' to their instruments & tagged a fixed price thereafter.

Alrighty! I'm not saying all this to reduce anyone out there to stupidity. It's not mediation either. I'm just helping buyers & sellers come to a workable agreement. More often than not, sellers tend to think too highly of their products. Buyers, on the other hand, failed to understand if the instruments they are dealing with should be valued as much. 

Have a great midweek, everyone :-)