Sunday, May 13, 2012

Sell - Used & New

Caveat Emptor!
I met a middle-aged guy recently who bought a used folding bicycle from a e-commerce site.
He complained about the bike being heavy and its parts falling off each time he goes cycling.
The bike cost him RM450 and was delivered by a truck from Johor Baru.
Upon close inspection, the 20" ride is actually a China-made folding bike which is more than 15 years old.
For starters, I won't put my life on a 'Japan imported' second-hand bike. Knowing that it was picked-up from housing estates for recycling or sale to third world countries.
To the former owner, they just want to get rid of their written-off asset and to the trader who took advantage of turning junk into profit, its money, money, money...

One man's junk is another man's treasure...
When a bicycle exchanged hands from the dealer to its new owner, the value would depreciate by 30%. 
Each year you use and keep the bike it would depreciate further.
Unless if the bike is highly sought-after (limited edition, rare, mint condition), you can demand a price. 
Otherwise, its a piece of junk.
But, having said that, there are people who take advantage of hype and marketing.
I saw a 'Bianchi' folding bike being sold at RM3,500 on a website.
The shop is in Kepong and for such a price for a 're-branded' Birdy, you can actually pay for a new bike.

Same bike different name: the Bianchi @ Birdy
 Based on the condition and for what's worth, I won't even pay RM1,000 for the bike.
To ship the used bike into Malaysia by the container load, I don't think it could command a value of RM3.5k. This is 'Basikal Bandle' to the initiated second-hand bargain hunter.
Way I see it, traders are cashing-in on the popularity of folding bikes
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