zdkaiser
Well-Known Member
Where I'm at, the record shops like to lowball your trade-ins and act as if you don't know squat about vinyl records. Maybe I haven't built the right relationship with them. But I do kind of want to bring in a stack of valuable records just to see how low they will go with their offer.Valid, and successful vinyl stores I know of all deal extensively in used vinyl. The margins on new vinyl are not as high, and the cost of returns eats into that. However, not all are equal.
There are those who achieve high margins by taking advantage of customers needing cash. They pay low for records and price high. These are bottom feeders. For example, here in Toronto Sonic Boom is known for that.
Then there are those who are fair, and have built a business based on honest treatment of customers. They will usually pay 40-50% of Discogs median value. That gives them a 50% markup, notwithstanding factoring in that some will not move, and some will sit in inventory for longer than others. In Toronto, Rotate This is known for that.
The first type may move lots of product, but they won't get the prime used records that knowledgeable collectors will know the value of.
The second type achieve higher profits by virtue of being able to attract better records, and can achieve higher turnover - which ultimately more than makes up for the gap in gross margin while establishing superior customer loyalty.
In most situations I'd say you're better off selling things online or locally directly to other record collectors. Takes more time, and can be a hassle if you have a lot to unload, but you'll get back considerably more money. Don't get me wrong, I like to support local record stores when I can, but I'm not trading in or selling my records to them because 50 cents to a buck a record is just insulting (and these aren't beater albums). Also, I noticed that most record stores around me, just price off Discogs, and oftentimes significantly higher. So, are we all just pricing albums based off the last 10 sales on Discogs now?
Last edited: