Thoughts on Setting a Price for Selling a Tool

[Paul McGaha]

I have recently upgraded a couple of my tools.

I know what they cost new when I bought them but I'm not sure of how to price them to sell them used.

Your thoughts would be appreciated.

PHM

[Van Huskey]

From a general view it can be hard a LN plane will hold value much better than a Harbor Freight drill.

I usually look for the cheapest price one could get it new as a starting point. I usually then start at 50% of that (then add or subtract based on the item/brand resell) and adjust for things like original case/box, manual, bits and pieces that come new, age, if it has been replaced by a newer model, wear, general appearane etc.

Making any blanket statement is really hard since just about every tool will have a different resell even if the box is just opened.

You can also loo at eBay, CL and forum classifieds to get some idea.

[Mike Cruz]

Van has a good methodology there. It also makes a difference if you are talking about machinery or hand tools, whether you are selling on CL, Ebay, or here on the Creek, and the age of the tool.

I think those looking on CL are looking for a deal. Most are willing to pay 33 to 50 percent of what it would cost to pick one up today, fairly willingly. That kind of pricing ought to also get you multiple bites. Whereas you might be able to get 70%, but you would have to be patient and get lucky to find the right buyer, or sucker...

Here on the Creek, I find things go for higher than what CL would fetch. Generally because there is a trust factor that the item will be in good condition, where with CL (and to some extent Ebay) you are taking more of a risk.

I think machines lose more of their "value" than hand tools because there is more to go wrong with them. They could end up costing you hundreds more than you had anticipated because of unforseen problems...where with hand tools, usually, what you see is what you get. If it is true when you get it, it will likely stay that way.

Obviously, just my opinion, nothing concretely substantiated.

Van also had a good suggestion to look on Ebay and see what others are trying to sell their stuff for. Find something that is on sale as a "buy it now" and that, in my opinion, is just a little high. Otherwise, it wouldn't still be there.

Good luck!

[Paul McGaha]

Thank you for your thoughts so far.

I probably should have used the word machinery instead of tools to describe what I am thinking of selling (A dust collector, small shaper, benchtop planer).

I was thinking something like a little under 50% of what the items cost new. They were bought new by me, used in a hobbiest environment for about (5) years.

As for their condition on a scale of 1 to 10 I suppose I'd rate them about a 7.

Does a little under 50% sound reasonable?

Thanks again.

PHM

[Matt Meiser]

Generally I base price on current new price of a comparable item, not what you paid. Sometimes that's good for the buyer, sometimes for you.

Keep in mind that in the last 10 years the state of the art in machinery has changed quite a bit. Most buyers want to upgrade 30 micron bags on an older dust collector to 5 micron or a filter which might figure into their max purchase price.

[Van Huskey]

I was thinking something like a little under 50% of what the items cost new. They were bought new by me, used in a hobbiest environment for about (5) years.

As for their condition on a scale of 1 to 10 I suppose I'd rate them about a 7.

Does a little under 50% sound reasonable?

Thanks again.

PHM

If they are all good brands then right around 50% seems like a decent starting point, particularly if they are still current models. If the planer is a Dewalt you might get a better percentage than a Ryobi, the dust collector if 2hp or under will probably have to compete well with the HF DC, small shapers can sometimes be a tough sale. If you are selling on CL or here set the price and see what happens, like a house you can always lower the price. Good luck.

[Dan Karachio]

I recently sold a few similar things (smaller power tools) and my formula was 55% of the new price (most were only a few years old). People will haggle a bit, so give yourself a little room. Find similar items online (Craigs list and others) and see what they are asking. Anything with multiple ads is usually priced too high. Unlike so many things I see on CL (and in person), I take great care of my tools and it shows when I sell. People buy them instantly and there is a much better feeling of trust (and no haggling). I always have the manual too. For the life of me, I cannot understand why someone would post a picture of a drill press, jointer, bandsaw or table saw with a big old rust covered top. Put a little effort in and you can get a good price. As for buyers, I have met some very nice people out there.

[Stuart Gardner]

I've never sold a tool until I just sold my contractor's table saw four days ago. I listed it on ebay and took what came out of it. Put just a couple of pictures on there, with a very good description, and let it go. I "watched" a number of table saws on ebay with buy it now prices that were way too high, and they relist and relist because nobody buys them. With tools, you need to buy smart, use them well, and not count on a lot of salvage value. I got a pretty good price for my saw, which I imagine would have taken weeks to get if I had just listed it locally.

[Dave MacArthur]

I look for about 50% of new tool cost for a CL buy. No warranty, no knowledge of tool use, big trust factor. If I can't turn it on and test it, I wouldn't buy it or would expect less than 50%.

[Frank Stolten]

I agree with most of what's been said about using 50% of current new price as a start and adjusting accordingly depending on brand, age, condition and, most importantly, market demand. Take your time to do some research but understand that CL/local classified ads and E-bay prices are different animals. Ebay prices are at the top of the pyramid and, unless you have multiple people wanting to buy your item, you're unlikely to get those prices locally. CL prices can be all over the map so give yourself enough time to determine what is realistic for the tools you're selling.

[Eric DeSilva]

Thinking the value of a used tool can be pegged to some percentage of original cost is totally misplaced logic. The value of a used tool is only what someone is willing to pay. On that basis, I would concur with the people saying look at what comparable stuff sells for on CL or eBay -- IN YOUR AREA.

I see stuff on CL all the time selling for way more than 50% of original cost--usually it is stuff for a broad market, like cordless drills and small stationary tools. On the other hand, I see stuff all the time like line borers and 36" bandsaws selling for 10% of original cost, because there are very, very few buyers for that stuff.

There is no magic percentage. Look at what recent sales suggest the value to be. If you can't find the exact item, find something comparable--compare 8" jointers to 8" jointers, but not 8" jointers to 6" jointers, because the market is different. That is the only time I'd use a percentage--if you are finding that 8" jointers are typically priced 40% of original cost, putting up an ad for yours at 40% of original cost seems reasonable.

[Kevin Barnett]

I see stuff on CL all the time selling for way more than 50% of original cost--...

just a reminder... if you still see it on CL, it's not selling. That's the price everyone before you was unwilling to pay. Same goes for auctions...if you come home with something, everyone else thought you paid too much for it.

[Ellen Benkin]

I agree with the 50% advice and have a couple of suggestions to make quick sales. Number one is clean the tool before it is viewed. A clean tool means one that has been properly cared for and that is impressive to buyers. Number two is have the manual (even if you print it from the internet) and any accessories available and emphasize that you are "throwing them in". Again, that shows that you are organized and probably took care of the tool. Third, write up a "bill of sale" with the name of the tool and the serial number as well as the price. Include the phrase "sold as is". That will protect you from someone who buys the tool, breaks it quickly, and then wants his money back. If someone questions the "as is" phrase tell them the tool worked the last time you used it (I assume it did) but that they are buying a used tool.

I've sold tools on CL for fair prices and never had any problems. Good luck.

[Eric DeSilva]

just a reminder... if you still see it on CL, it's not selling. That's the price everyone before you was unwilling to pay. Same goes for auctions...if you come home with something, everyone else thought you paid too much for it.

Good point, and a seller should understand they they shouldn't expect to get asked for value on CL. Everyone seems to expect to be able to haggle some off the asking price anyway. If you see enough ads though, you tend to see where pricing goes...

[Lee Schierer]

Pricing depends largely on the market and how bad you want to get rid of an item. You also have to decide on a price that when someone offers you 10-20% less will you feel bad for selling it so cheap. We tend to place more value on tools than what they really are worth because they have been trusted friends in the work shop over the time we have owned them.

As others have said check out the market (ebay and CL) and start accordingly. You can always lower the price to move an item you can never raise it.....

[Kevin Barnett]

Here's an example of how not to price:

I emailed him to let him know he was potentially looking at $25. He told me I was nuts and it had been bought at Sears at that $2400 ish price. Then I sent him a duplicate ad for the same exact model from NJ Craigslist for...$25.

[Rod Sheridan]

I have sold 4 General machines in the last 2 years, each time for 60% of current price, non negotiable.

The longest time period was 1 day, the quickest was 4 minutes.....Regards, Rod.

P.S. 3 of the sales were to people at work, at different locations from myself.

[Stuart Gardner]

Good grief. I'm trying to find some way to respond to that. If he can find someone to buy that for $800 I wish he'd refer them to me. I have a few things I'd like to sell as well. I did confirm it, that's an actual ad on CL.

[Chip Lindley]

Geez Kevin!! I hear there's too much good dope up the road around Columbia! The seller of that Craftsman 6" jointer was definately not dealing with reality (OR gullably relying upon very false information--Let's give him the benefit of the doubt!)

To the OP: Pricing used tools and machinery depends entirely on the motivation to sell. Need Cash? Sell low! Willing to Wait? Price at the very high end of what you believe that used tool can bring. Check eBay for what comparable tools brought under Completed Listings. Check CL nationwide by using searchtempest.com. Those will give you some ballpark figures.

A very motivated seller in the Missouri Bootheel listed a Woodmaster 3820 double-drum sander in vg condition for $1200. About half of what one should bring. I am now the proud owner!

In turn, I put my Grizzly G1066 24" double-drum sander up for sale on CL @ $950. Six weeks later after only 3 inquiries, and reducing price 3 times, it sold for $850. I was semi-motivated, but not panic-stricken!

Do your homework by watching CL and eBay for a time, and you will get a feel for what certain tools can, and usually bring! For instance, there have been several 20" Rockwell/Delta BSs on ebay, for a year or more, in the $1200-$2500 range. They have not sold yet! At $1000 or less, they would sell like hotcakes!

[Paul McGaha]

Thank you all for your input. It is helpful.

Rod I think in your reply you make a strong case for buying high quality machinery in the first place, You not only get the good performance of the tool when you own it but the quality of the tool shows up when/if you decide you want to sell it.

PHM