Trade-In Policy

Trade-In Policy


There are multiple problems for a store to overcome in order to take in Secondhand miniatures. 


  • How do we offer enough value to keep stock coming in? 
  • How do we keep our customers happy so they feel they are getting fair market value from us? 
  • How do we maintain profitability while solving these issues? 

As a Secondhand Miniature store we need to provide a positive and transparent “trade-in” experience to reduce “trade-in remorse”. We know that lucrative value will keep our customers bringing in their beloved armies to get new ones. In order to solve these problems we spent a long time coming up with a system that provides these benefits to our customers while helping us maintain profitability.


At Secondhand soldiers we have a “Condition Guide and Rating Scale” for current print models. This scale makes condition and pricing transparent for both a buyer and a seller. We use this guide as the standard of value for current print models that we take in Secondhand and current print models that we sell Secondhand. This is necessary for our trade-in system to be transparent and fair to our customers. Combining this with our “Trade Credit'' system creates a positive value incentive that gives our customers flexible Trade Credit applications.


In the case of Out of Print (OOP) models, which can sometimes be rare and/or very valuable, we use a standard of appraising called the “Sales Comparison Approach” which is similar to what real estate appraisers use. This includes researching what comparable models have sold for recently and what they are listed for sale for currently. This is explained in more detail in our “Out of Print Pricing Guide”. This style of pricing takes into account market trends allowing us to give realistic value based on what people are actually willing to pay for comparable models.


When a customer brings in a model to trade-in we will look over the “Condition Guide and Rating Scale” to come up with the price we would sell that model for. Once a sales price is determined then that amount of “Trade Credit” is offered to the customer. If the Customer accepts, then it is noted on their account as “points” or “Trade Credit”. Yes, we offer our customers what we will sell their miniatures for. What sets us apart is how “Trade Credit” applies to purchases.


“Trade Credit” is not “Store Credit” or a gift card, it is an amount of “points” that can be redeemed in certain ways. “Trade Credit” can be redeemed in one of two ways:

1. “1:1”: “Trade Credit” can be used 1:1 (1 point = 1 dollar) reducing the “markup” on any item as low as “cost”.


The “markup” on “New” items is based on MSRP minus distributor cost, therefore the application of “Trade Credit” can be applied to reduce the price of “New” products to our cost.


We consider “markup” on Secondhand items to be 50% of their price. Thus “Trade Credit” can reduce the price of a Secondhand item to 50%.


After “Trade Credit” reduces the purchase price of an item(s), checkout will continue as  normal  (i.e. currency will cover the remaining balance).


“Trade Credit” used in this way can not reduce a price lower than cost, but can partially reduce “markup” (i.e. lets say markup on a $50 item was $20 “Trade Credit” could be applied to $15 of that $20 markup) this allows someone to receive benefit even if they do not have a large enough amount of Trade Credit to cover all of the markup.

2. “2:1”: “Trade Credit” can be used 2:1 (2 points = 1 dollar) reducing the “total value” of any item to $0.

(We currently only offer this option for items that are in store. We can not afford to order items for this option due to being new and budgets and stuff. We will revise this ASAP!)


The “total value” of “New” items is MSRP.


The “total value” on Secondhand items is what we are currently selling that item for. 


When applying “Trade Credit” to the “total value” of a purchase the customer must use double the pre tax value of whatever they are purchasing in points from their “Trade Credit” account.


Reductions are pre-tax thus The Sales Taxes are paid by the store based on the order from the distributor as “Store Use”




This System allows our customers more value out of their trade-ins without us assuming a dangerous financial risk. 


An Example of this system in practice would be:


Mark brings in an item that we determine to be a $100 value and accepts the “Trade Credit'' offer of 100 “points”. He notices several items on the shelf available for purchase. A $50 item, a $100 Secondhand item, and a $300 new item. Mark could:

 

  1. Use all 100 pts of his “Trade Credit” in the 2:1 trade option towards the whole $50 item (if it is new or if it is Secondhand).
  2. Reduce the price of the $100 Secondhand item to $50 by using 50 points, pay the other $50 with whatever currency the store accepts, and bank the other 50 points until he wants to use them.
  3. Use all of his points to reduce the price of the $300 new item to $200 (since COST on this item is lower than $200) and use his choice of accepted currency. 
  4. Bank his points until he decides to use them, possibly saving them until he has 600 “Points” to use them 1:1 for the $300 item.

There are more ways Mark could use his points than a simple example could show, but hopefully this clears up any confusion about how Trade-ins work.

Currently Secondhand Soldiers can not offer cash trade in as a standard option, it never hurts to ask though. Secondhand Soldiers desire a long and healthy “Trade-in” relationship with our customers but we do reserve the right to refuse any “Trade-in” for any reason and the right to update or change this policy at any time.