How do we come up with a buy price
We are open about how we develop our buy prices.
We start with the Wholesale price of an item. Wholesale is the price that dealers buy and sell the item for. The price is significantly lower than the highly visible Retail Price which is "value added" and includes additional warranties and services that merit a higher premium.
We adjust the wholesale price to account for:
a. Refurbishing costs
b. Anticipated Selling Fees such as commissions, marketing, etc...
c. Risk associated with the inventory holding period
d. We apply a risk percentage associated with equipment failure
e. We apply a fair profit margin
The resulting price is commonly referred to as the liquidation price or the price to sell an item quickly, with few safeguards.
Please let us know if we can explain this process better. Please send emails to sales@teksavers.com