What Effects Used Fitness Equipment Market Values?
Do you really know all the criteria and factors that go into the market value of used fitness equipment? Many sellers look at what they paid for new equipment and think it should be worth a similar amount, but secondhand fitness equipment values are often misunderstood.
So, what sets the values?
Well, to start, equipment is worth what someone is going to pay for it. So, forget about what you paid for it new or what you may think it’s worth.
There are two key price points that make up values: wholesale and retail.
Wholesale value is what a used equipment buyer will pay and, of course, that’s the lower of the two values. But what goes into this may be unknown. A seller needs to understand what costs are associated with the removal and resale of the product.
The buyer will carry out the extraction and this comes with the costs of trucks, labor, travel etc. and these costs have unfortunately sky rocketed. The buyer must replace needed parts and sometimes refurbish a piece. They must also inventory it in their warehouse and pay staff to resell the item with a warranty. For example, a treadmill that you are paid $500.00 for, could cost a buyer nearly double that to have it ready for a retail sale. They are also taking on all the responsibility and legal risk of the resale.
So why not just sell it on your own?
Well, it’s not that easy and here’s why; Your insurance covers your members in the gym, it doesn’t cover selling equipment. It’s a huge liability to let a piece of equipment leave your gym because if someone gets hurt, they will hold you and the gym liable. Are you going to put the costs into the piece that it needs and take the time to market it? That alone will eat into your finances. Also, with multiple pieces you may not sell them all, which defeats the plan.
You may see the retail price a buyer sells for online, but now you know what costs go into that value for them to turn a profit.
So, what and who make up the wholesale market values? Well, the who is the consumer or gym buying the products, they are asking for certain brands from the used buyer and that demand creates the values the buyers and secondhand market put on the equipment. This is the reason why certain brands and pieces carry a higher value because there is a higher need from the buyer’s customers.
Brand, category, age, condition, color, and removal accessibility also play a part in the value. Volume is also key since the costs of removal are based on a price per piece cost average. The more pieces, the better price per piece you will receive.
So, for example, a full gym replacement or liquidation will bring in the greatest return. One of the reasons is, it opens several selling channels for the buyer. It can also be marketed as a full gym, either in the States or to a buyer abroad. If it meets the criteria values, then it is appealing for inventory sales for multiple customer segments. If key pieces are removed from the package, then it affects the integrity of it and could reduce the overall value considerably.
If you are looking to just sell a few pieces, that will lower the price per piece cost average, since logistic costs must be factored in.
The bottom line is if you need to sell a few pieces, full cardio and strength replacement or a liquidation, it’s much more efficient, safe, and practical to use a professional wholesale buyer service to do it all for you, so you can focus on your business and members.
We hope this gives a better understanding of fitness equipment market values.