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Version: 26.03.19

Pricing Items

How to Price Guitars and Amps​

Step 1: Assess the Item's Condition​

Carefully examine the guitar or amp and determine its physical condition. Note any wear, damage, modifications, or cosmetic issues that might affect value.

Step 2: Identify the Brand Category​

Classify the brand as either well-known (mainstream manufacturers) or boutique (smaller, specialized makers). This will influence pricing expectations and market demand.

Step 3: Search Reverb Sold Listings​

Use Reverb mobile app for best results. Search for sold listings and filter to match:

  • Approximate year range
  • Similar specifications (use broader search criteria when exact matches are limited)
  • Comparable condition (color differences are acceptable)

Focus on the most recent sales, always keeping the item's condition in mind when comparing prices.

Step 4: Conduct General Internet Search (If Reverb Fails)​

If Reverb doesn't yield sufficient results, expand your search:

  • Look for comparable items currently listed at competitor stores
  • Search for recently sold items at competitors
  • Use Wayback Machine to find cached copies of sold items if prices are hidden after sale

Step 5: Escalate When Necessary​

If you cannot determine a fair market value after completing the above steps, run it up the chain to your supervisor or manager.

Pricing Formula​

Buy-in target: Approximately 70% of expected selling price

Tag price: Typically set at a level where the buy-in represents about 60% of the tagged price

Rationale: This leaves approximately 10% room for discounting while maintaining profit margins.

Addendum: Pricing for Lower-Value Items ($300–$1000)​

For guitars and amps valued between $300 and $1000, the buy-in target adjusts downward as the price point decreases.

Sliding buy-in scale: As the expected sale price decreases from $1000 down to approximately $300, the buy-in target slides from 70% down to around 40% of the expected sale price.

Rationale: This adjustment accounts for the fixed costs associated with each item, including luthier time for setup and repairs, as well as listing time and administrative overhead. These flat costs represent a larger percentage of the total value on lower-priced items, necessitating a lower buy-in percentage to maintain profitability.