Just interested to see if anyone on here has actually used them.
I picked up one of their catalogues at the Liverpool guitar show.
after reading about their seller n buyer fees etc.
It looks to me that there's only really going to be one winner and it's not the seller or the buyer!!!!!
Also imo with this format is distorting used guitar prices.
After you take into account both seller n buyer fees there is a big difference between what the seller has actually got n what someone has paid for a certain guitar. So then how on earth can you honestly value said guitar.
Comments
As some of you are undoubtedly aware, I'm no fan of GH and their exorbitant fees.
However @musicman100 - the model you describe is pretty much a standard business model, in the sense that:
a. Original Seller Y sells guitar to Dealer X for a certain sum (in the case of auctions, subtract Commission from final figure)
Then
b. Dealer X sells guitar to Purchaser Z, adding markup, VAT, etc (in the case of auctions, add Buyer's Premium and VAT)
I think hear what you're saying though - somewhere, in the middle of that, is a "real" price, or rather, value (the actual figure which the seller achieved after Commission).
Is that correct?
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Cheers.
For example if a guitar sells at the hammer for let' say £1000 by the time you work out for the fees n vat etc there's a massive difference of hundreds of pounds between what the seller actually takes home n what the buyer has paid!
However, if the right thing did come up then I'd go for it, but would bear in mind that there may be VAT to add along with 20% fees (+VAT).
I thought G&H were very helpful, they sent me additional high resolution photographs when I asked for them - and a good number of them too!
If you don't mind me asking what was the hammer price?
I bet the seller didn't get much more than £800ish though.
If it's something rare or some you have been wanting for a while then maybe but it's the 20% plus vat that doesn't sit well with me.
...and they make you use their 'approved' courier if you can't be there to collect.
It used to be worth it. No bargains anymore, in fact the prices went crazy a few auctions back. Xmas is always the priciest I find.
Some of the back end lots can be picked up cheap as most bidders log off after they have seen the thing they were interested in. That's usually a job lot of pedals or something like that - so the delivery issue kicks in at that point.
I've had a few good bargains off them in the past but it's different now.
So basically a £400 price difference between seller n buyer?
I'm not disputing their profits.
My main point is the different between sellers amount and the buyers total cost.
And a 20% buyers premium at auction is not remarkable. Some of the big name auction houses charge 25%.
Surely if you're a potential buyer you factor in fees and VAT, decide how much you're willing to pay and bid accordingly?
if you are a seller you are aware of the fees and have made the decision to accept them.
Have a look at GH's accounts online, they are not making millions at this.
Regarding values of guitars, outside of private purchase (where values fluctuate wildly) that would depend on whether you were a buyer or seller.
I'm sure most dealers would be looking at least a 50% profit between buying and selling.