Pricing Used Technology

NiGHTSNiGHTS San Diego Icrontian
edited February 2007 in Trading Post
Apologies if this is in the wrong area, I PMed Leo to ensure this was a legal post a while ago but never ended up making the post as the original deal fell through. So, back to the question at hand: How do you guys go about pricing used technology?

I recall asking Thrax over AIM a while back with the response of 10-15% on top of something else, depending on how old the technology is (or how long it's been used, rather.) What that "something else" was I can't quite remember, but if I were to guess as to where the 10-15% came from it would be a typical shelf markup - being that he's the Best Buy guru around here. :)

If it helps, the tech. in question is a DFI Lanparty, a S939 3700+, and a 7800gt. I'd still like to know the general advanced mathematical inner workings ;) of finding a price if at all possible for the future, though, so I can apply it to future deals.

As always, thanks in advance!

Comments

  • GargGarg Purveyor of Lincoln Nightmares Icrontian
    edited February 2007
    My economics are based on my wasted youth of playing RPGs. Meaning, I sell things for about half what they are worth new, so long as other people aren't selling the same item for a drastically different price.
  • ThraxThrax 🐌 Austin, TX Icrontian
    edited February 2007
    I usually take the original MSRP the day of release, cut it by 50% compounded yearly, and take another 10-15% off the final. For example, a $500 video card depreciates to $250 in the first year, $125 in the second, and I'd take another ~10% off to make it about $110 shipped. The 6800 Ultra was $499, releases in 1Q04, and now sells for about $120 shipped.

    You might decrease the first year's depreciation to 40%.

    I also evaluate the maximum price drops at about 2-3 years, with RAM/CPUs dropping for three years, but video cards levelling out a little sooner.
  • LeonardoLeonardo Wake up and smell the glaciers Eagle River, Alaska Icrontian
    edited February 2007
    My comments apply to pre-owned computer tech items for trade between private parties through online trading forums.

    As a rule of thumb, there is no formula that is reliable. The value of used items is simply what people are willing to pay. For a good idea of what items are going for - by 'going for' I mean original asking prices, check out our Trading Post, Anandtech's for-sale forum, and [H]ardforum's ([H]ardOCP]) trading forum.

    The surges that exist in computer technology, in example - video cards may surge by leaps and bounds while power supplies remain stagnant - prevent a formula from being a reliable tool. A formula might work well though, if the item to be sold is rarely found on trading forums. A lot of selling on the used (online) market is simply a 'feel' for the market. That takes some time, but browsing active trading forums is quick head start.
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