Parents on a budget turning to certified used iPhones & iPads this back-to-school season

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Comments

  • Reply 41 of 65
    Quote:

    Originally Posted by SolipsismY View Post

     
    Quote:

    Originally Posted by sog35 View Post



    Gazelle only pays $175 for a used perfect condition 5S.

    Then they turn around and sell it for $409



    And I thought Apple gross margins are high.  



    All Gazelle is doing is acting as a pond shop and they charge 100% markups.  Unreal.  Ripoff.




    1) How is it a ripoff? If you can sell it someone else for more money then do it. If you can buy it somewhere else for less money then do it?



    2) Did you consider other costs for Gazelle's business? They pay for shipping, right? They also guarantee a sale price for x-many days even if the value has dropped, right? They have to pay for devices to be tested, repaired and cleaned up before purchase right? For example, I sold them an iPhone that didn't have a working rear camera under their GOOD condition rating, which is "Good means all of the following are true: No cracks on screen or body, Powers on and makes calls, No major scratches or scuffs." Surely that broken camera won't go out in a resale or they will have a very upset customer.

    In addition to all that, they carry a HUGE inventory risk, in all likelihood.

  • Reply 42 of 65
    thomprthompr Posts: 1,511member
    Quote:

    Originally Posted by sog35 View Post

     

     

    It is a ripoff.

     

    Gazelle is offering $480 for my perfect condition iPhone6+

    Amazon is offering $600. 

    I can sell it on ebay easily for $600+




    Do you ever think of things more deeply than the surface and for longer than the 10 seconds it takes for you to proclaim your brilliant certitude?

  • Reply 43 of 65
    solipsismysolipsismy Posts: 5,099member
    thompr wrote: »

    Do you ever think of things more deeply than the surface and for longer than the 10 seconds it takes for you to proclaim your brilliant certitude?

    I would imagine they do, and despite all the expenses [@]sog35[/@] missed he also missed what is likely a sale of individual components to 3rd-party vendors which will likely have a high mark up for Gazelle and then a high mark up for the 3rd-party vendors selling used components.
  • Reply 44 of 65
    Quote:

    Originally Posted by SolipsismY View Post





    1) How is it a ripoff? If you can sell it someone else for more money then do it. If you can buy it somewhere else for less money then do it?



    2) Did you consider other costs for Gazelle's business? They pay for shipping, right? They also guarantee a sale price for x-many days even if the value has dropped, right? They have to pay for devices to be tested, repaired and cleaned up before purchase right? For example, I sold them an iPhone that didn't have a working rear camera under their GOOD condition rating, which is "Good means all of the following are true: No cracks on screen or body, Powers on and makes calls, No major scratches or scuffs." Surely that broken camera won't go out in a resale or they will have a very upset customer.



    eBay.  And eBay is easier to get a return out of as well if it does not meet expectations.  You can get a 5s for $250. 

     

    Paul

  • Reply 45 of 65
    dasanman69dasanman69 Posts: 12,985member
    sog35 wrote: »
     
    In addition to all that, they carry a HUGE inventory risk, in all likelihood.

    why?  used iPhones are hot sellers.

    But they don't only deal in iPhones, nor Apple devices exclusively, so yes there's tons of inventory risks involved.
  • Reply 46 of 65
    Quote:

    Originally Posted by sog35 View Post

     

     

    It is a ripoff.

     

    Gazelle is offering $480 for my perfect condition iPhone6+

    Amazon is offering $600. 

    I can sell it on ebay easily for $600+


    You can get more for it on eBay, but eBay is a buyers market.  Buyers can screw you.  It is much harder for a seller to screw you with eBays return policies.  So if you factor in a 10% chance of being ripped off by a buyer on eBay, Amazon is not so bad. 

  • Reply 47 of 65
    benjerbenjer Posts: 90member

    From what I can tell, prices for the same refurbished products on Apple's website aren't much more than Gazelle's used prices. For instance, a used iPad Air 2 (16GB, WiFi) is $399 on Gazelle, but it's $419 refurbished through Apple. However, there's an 11-month difference in warranty, since you still get the full year through Apple. It will be interesting to see if those prices hold. I could definitely see buying the older models from them, though, especially as a first iPhone for a teenager.

  • Reply 48 of 65
    thomprthompr Posts: 1,511member
    Quote:

    Originally Posted by sog35 View Post

     

     

    Such as?  

     

    Shipping $15 

    Packaging and handling $5

    Storage $5

    Inspection $5

    Repairs - $0 - since it is a perfect condition phone

    Marketing $5

    General Admin $10

     

    Total $45

     

    What am I missing?  

     

    Keep in mind Gazelle moves several million phones a year.  So the overhead costs for each phone is really small.




    What dark and smelly place did you pull those numbers out of?  Some of the things you write crack me up, as if you know stuff that neither you nor I could possibly actually know.

     

    OK, fine, I'll go along with these numbers.  Added to the $480 Gazelle offered for your phone, this makes an estimated $525 outlay.  How much do you think they are going to turn around and charge for that unit again?  My guess is it won't be much more than what you can find the equivalent phone for on Amazon.  So they made a little profit (certainly not the magnitude that you initially laid out there, LOL) and all the seller had to do was click a few boxes on a web page and then drop the item in a prepaid box when it arrives.

  • Reply 49 of 65
    fallenjtfallenjt Posts: 3,979member
    sog35 wrote: »
    Gazelle only pays $175 for a used perfect condition 5S.
    Then they turn around and sell it for $409

    And I thought Apple gross margins are high.  

    All Gazelle is doing is acting as a pond shop and they charge 100% markups.  Unreal.  Ripoff.
    you meant pawn shop right? I don't know why people even buy stuffs at Gazelle. I'd rather get refurbished one at Apple Store.
  • Reply 50 of 65
    solipsismysolipsismy Posts: 5,099member
    beltsbear wrote: »
    eBay.

    Sure, but there are costs for selling on eBay as well as fees for using PayPal so the seller doesn't really get the listed price. Gazelle will guarantee the price and pay for the postage to ship it to them.

    Furthermore, I trust Gazelle not to screw over the techtarded so if they are someone that doesn't use eBay and doesn't buy enough on Amazon to warrant getting an Amazon GC as payment I may send them to Gazelle. Would you rather your grandmother get screwed over by an unscrupulous eBay buyer or get a decent rate for her old iPhone with ease without any complexity in the sale and without it losing value sitting in a drawer for years? That said, if one is going to be buying a new iPhone at an Apple Store I find the easiest option for people is to sell it to Apple. You don't get the best price but you get the best convenience. If you can't put a value on convenience or think about other users than yourself then you're not thinking it through.

    sog35 wrote: »
    I have no idea what you are saying here.

    I would be shocked if it you did.
  • Reply 51 of 65
    thomprthompr Posts: 1,511member
    Pardon the replication for an edit.  Will it happen again?  Let us see...

  • Reply 52 of 65
    thomprthompr Posts: 1,511member
    You know, I have seldom encountered anyone anywhere (not just online) that demonstrates a larger difference between how bright they are and how bright they think they are than does "Sog".  And no, Sog, I do not mean the former is greater than the latter.

  • Reply 53 of 65
    Stupid headline - everyone is on a budget.
  • Reply 54 of 65
    cornchipcornchip Posts: 1,362member
    aaplfanboy wrote: »
    Stupid headline - everyone is on a budget.

    And certainly parents
  • Reply 55 of 65
    thomprthompr Posts: 1,511member
    Quote:
    Originally Posted by sog35 View Post

     

    common sense.  It does not cost HUNDREDS of dollars to buy and sell iPhones.  Especially those that are in mint condition.


    Common sense doesn't give you the breakdown numbers you used to add up to $45.

     

    And you also avoided the point, which was even using the (unsupported & fictitious) numbers, it looks like Gazelle's profit margin on your iPhone 6 would be far lower than you stated earlier (and Apple's as well). 

     

    Quote:
    Originally Posted by sog35 View Post

     

    Again a mint condition iPhone 5S sells for $409.  They buy it for $175.  

     

    I expect a company like Gazelle to have profit margins of 10% or less.  They are basiclly doing nothing but being an inbetween.  Thus when I see they are getting 50% gross margins I find it ridiculous.


    It's not as bad as you write here.

     

    From Gazelle's website, they are offering $165 for a mint condition iPhone 5S 16 GB.  From the same website they are offering to sell the same at $299.  Furthermore, by the time they receive your phone, it is likely that their asking price for the 5S will have decreased from the $299 since we would have entered the new launch window - which always causes sudden decreases in the value of the oldest models.  (They guarantee their price over and past the release date.)

  • Reply 56 of 65
    thomprthompr Posts: 1,511member
    Quote:

    Originally Posted by sog35 View Post

     

     

    you just quoted yourself. 

     

    seriously.


     

    Mistakes happen.  Easily fixed.

  • Reply 57 of 65
    thomprthompr Posts: 1,511member
    Quote:
    Originally Posted by sog35 View Post

     

     

    Nope.

     

    Selling price $409

    cost of phone $175

    Overhead $50

    Net profit $184

     

    Net profit margin 45%

    Apple net profit margin 25%

     

    Even if I double the overhead expense to $100 that is still a profit margin of 33%.

    Even if I TRIPLE the overhead expense to $150 that is still a profit margin of 20% which is higher than the profit margin for Apple selling iPads.

     

    Do you seriously think it cost Gazelle $150 of overhead per iPhone?  




    Nope.

     

    Gazelle selling price:   $299 (from Gazelle's website for iPhone 5S 16GB)

    ?Gazelle buying price:   $165 (from Gazelle's website for mint condition iPhone 5S 16GB)

    Overhead:       $50 (from Sog's rectum)

    Net profit:        $84 (computed from above)

     

    Net profit margin: 28% (computed from above)

    Apple net profit margin: 25% (whole company net margin, as admitted by Sog)

    Apple net profit on iPhone business:  >> 28%, as everyone knows

     

    I think you should compare apples to apples, Sog.  Gazelle leveraging the high demand for used iPhones to the tune of 28% profit does not seem that out of bounds, all things considered.  Not only that, but since Gazelle guarantees their offers across the release date boundary, the price they can resell your iPhone for once it gets to them will quite possibly be lower than the current sale price.

     

    P.S. I wonder how Sog will respond to the fact that I used his/her technique with actual numbers from the true source (Gazelle) to show that his/her conclusion was bunk.  My guess is that Sog will ignore this thread and pretend never to have seen the response.  Either that, or use the "move the goalposts" technique that all disingenuous debaters use.

  • Reply 58 of 65

    Would it be better to buy a refurbished item from Apple or a certified preowned from Gazelle? Does one offer a better warranty then the other?

     

    I'll be in the market for a iPad Air 2 soon.

  • Reply 59 of 65
    anomeanome Posts: 1,293member
    Interesting to compare the price of a new iPhone from Apple versus a used one from Gazelle. A quick check shows Apple aren't selling any refurbished iPhones in the US store at the moment, if they ever do, so I looked at the comparison between Apple Certified Refurbished iPads and Gazelle. Apple don't seem to be accepting trade-ins on the iPad Air 2, at the moment, so I looked at the iPad Air 128GB WiFi model (Space Grey, in case that matters.)

    For the trade in, I set everything as being in working order on the Apple site, and Good condition on Gazelle (as opposed to Flawless).

    Apple offers: US$145 in Apple Store credit.
    Gazelle offers: US$180 in cash. (+5% for an Amazon gift card)

    To Buy, selected iPad Air 128GB WiFi, Space Grey.
    Apple: US$529
    Gazelle: US$469.

    Looking at the other end, comparing what's available in the Apple Store and on Gazelle, tried a 16GB Black iPad mini WiFi + Cellular (Verizon).
    Options the same as above -
    Apple offers US$75 in Apple Store credit
    Gazelle offers: US$45 in cash.
    So for older devices, maybe Apple's better for selling.

    To Buy, iPad mini 16GB WiFi + Cellular (Verizon), Black.
    Apple: US$309
    Gazelle: US$189

    Hmm...interesting. Apple does offer a longer warranty.
  • Reply 60 of 65
    linkmanlinkman Posts: 924member
    Quote:

    Originally Posted by AAPLfanboy View Post



    Stupid headline - everyone is on a budget.



    Please inform my wife.

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