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sale/trade different price

R

reptilebreeder

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Why advertise- "for sale $1000, or trade value of $1200", for example. The person going into the trade is going to do the same valuation difference, on their end, when they offer a trade. I just don't understand the reason or logic for this practice.
Just pondering.
 
I am sure that every person has their own reasons.

If I had to guess though I would think that the main reason is simply putting a premium on cash and giving the perception of a bargain. I imagine it also cuts down on the 100 calls and emails asking "What would you take in trade for it".

Just a guess....
 
shrap said:
If I had to guess though I would think that the main reason is simply putting a premium on cash and giving the perception of a bargain..
Click to expand...
Yeah, I guess, that would make it seem like a better deal to lower the price for cash, though it seems like a very transparant "bargain", and may bring even more inquiries for trades than just offering a cash price. Either way it seems a wash, or moot tactic, because if you didn't really want to trade, this may "encourage" offers, or if you really would trade, the other person is going to do the same thing anyway.
 
John, I am not sure this is it, but is it possible that when there are 'trade' animals involved, the value that is usually quoted is the fair market value, or retail, instead of the lower cost basis to the dealer?
The cost to the dealer price is usually marked up and the person who is looking to make the trade might be wanting the cost basis as the trade, and to make sure of getting this, puts the higher market value for the deal in the hopes of getting this cost basis.
 
There are a couple other possible reasons. For one thing, on a trade the "seller" has to eat the cost of shipping his animals. For another, live animals always entail a risk. They could die in a week and the seller is out of luck. Cash, on the other hand, never goes out of style.
 
Take into consideration as well that the other guy is going to over-value his animals to you. That kingsnake you could buy here for 40.00 is going to have a 50.00 trade value.
 
wilomn said:
Take into consideration as well that the other guy is going to over-value his animals to you. That kingsnake you could buy here for 40.00 is going to have a 50.00 trade value.
Click to expand...
That's been most of my point. That's why in my opinion that ad tactic is a wash, or very transparent irrelevant "ploy".
 
the BoidSmith said:
That I can understand. But wouldn't the second person offering to trade be in the same position as the one who posted first?
Click to expand...
Thanks for the link. Don't know how I missed that one. Looks like you were right where I am now. I guess it boils down to "I'd rather have cash, but I'll trade for a higher added value with your higher added value product" :D
 
wilomn said:
Take into consideration as well that the other guy is going to over-value his animals to you. That kingsnake you could buy here for 40.00 is going to have a 50.00 trade value.
Click to expand...

Only if I accept his trade offer at $50.00. If I think the kingsnake is only worth $40.00 then I will refuse the offer.

plus you make the assumption that the original animal is over valued at the trade value price

example using the original values of $1,000.00 and $1,200.00.

I offer an emerald tree boa for $1,000.00 cash or $1,200.00 trade because I would rather have the cash in hand but if I am going to trade I am going to get more simply because I would prefer not to do it (trade). Someone offers me a group of nicely colored leopard geckos that is worth $1,000.00 on the open market. Since they are offering to trade they make the claim that the the geckos have a trade value of $1,200.00 (over-value as you put it) and I should make the trade. Assuming I am interested in Leopard Geckos I will make the determination whether or not I think the group is actually worth the $1,200.00. If I don't think they are I will pass on the deal. He sends me an email back and says he will throw in another nice adult female that is worth the additional $200.00 now I agree.

He makes the same determination when deciding what to offer. He may not think the snake is worth $1,200.00 of his animals so he decides he would rather send me the $1,000.00 cash instead.

Steve
 
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