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I just wanted to write something about buying and selling lenses.
When I first got my K30 back in October 2012 I started buying lenses through Craigslist, then through PF, then through Ebay because I wanted to try out more lenses. Soon after I started selling lenses through the forums and also through the local Craigslist listings.
Since October 2012 I have bought and sold 27 camera lenses and bodies. That’s just about 2 items per month, which is not huge but still more than just a few.
I kept a log of all of my transactions on a spreadsheet. I’d like to share my profits and losses with you all in the hopes that some of you might find it useful and/or entertaining. These items are just the ones that I bought and sold. I bought four lenses using the sandwich rule (that are now all sitting in a box), and I have five other lenses that I use regularly, so they are not included here.
Let’s start with the losses. This is what I lost per transaction after shipping, fees, and taxes.
($274.86)
($157.49)
($146.00)
($143.58)
($70.11)
($62.55)
($60.00)
($40.00)
($36.34)
($35.00)
($30.00)
($23.31)
($20.00)
($17.00)
($10.00)
($9.11)
Total Losses: ($1,135)
Looking at my biggest losses, they are caused by the following:
- Overpayment! When I started, I didn’t know what lenses were really valued at, and I also didn’t know how to haggle properly. That’s not a problem for me anymore, as I remember what lenses are worth thanks to endlessly poring over prices on Ebay/Amazon. And my phone is always with me so I can check on current prices in a pinch.
- International Shipping: Early on in my PF marketplace history I did a couple of international transactions. I finalized prices and received money before determining shipping costs, and this led to me eating some hefty shipping fees since I didn't want to back out of the deal. Now I know how to properly handle international shipping such that I don’t lose anything on it.
- Buying new: Buying a new lens just to try it out is not worth it. As soon as you open that box the resale value of the lens drops like a rock. If you want to just try out a lens, buy it used, and if it’s something you like, resell the used version for the same (or a little less) and then go buy it new. Of course, if it’s a lens you know you want, by all means go for it new. I love my 18-250, and if/when it dies, gets lost, or stolen, I would not hesitate to buy a new copy of one of the current superzooms from Amazon.
- Selling low for quick cash. When you need money, you need money.
Those four things alone count for more than half (probably between 2/3 or 3/4) of the total loss. The rest is a combination of shipping/PayPal fees, discounts for friends who wanted to buy my lenses, and lenses that lost value because I used them a bit.
Now lets look at the gains. These prices are after shipping, taxes, and fees:
$200.00
$118.86
$56.50
$54.58
$40.00
$37.50
$28.63
$28.13
$25.00
$23.00
$20.00
$20.00
Total gains: $652.20
The biggest gains were from me getting lucky on Craigslist and contacting a seller offloading something cheap for whatever reason before anyone else. I bought whatever they were selling, tried it out myself for a while, and then just sold it for under its average used selling price to pass along the savings to a fellow PF member. A couple of these items were things that I had bought strictly for reselling later on, and I could have made more on them, but had to sell them for cash (when you need money, you need money) and thus could not make as much as I wanted on them. The rest are just things I picked up locally from second-hand shops, camera gear swaps, and the local Craigslist listings to try out for a while because I knew I could quickly flip them through PF later.
So, the tally as follows:
Losses: ($1,135.35)
Gains: $652.20
Total losses: ($483.15)
So at first glance, $483.15 seems like a big loss. But I thought about what this money represented:
- I got to try out dozens of different lenses and several camera bodies of all types. And it’s not like at a camera store or a gear swap/camera show where you only get to try it out then and there. I actually had the lenses and camera bodies in my possession for quite some time, and took my time to really use them and get to know them. DA, FA, F, older manual lenses, zooms and primes, macro lenses, wide angle lenses, super zooms, accessories, other digital bodies, film bodies, lens accessories. It’s only a fraction of what’s out there, but it’s more than the casual photographer.
- As a result of that process it really helped crystallize what type of photography I like to do and what lenses I need to do it. Basically, my LBA is dead. There are a couple of lenses on my radar, but I will probably just end up buying them new when I have the cash, because hey I know from past experience that I want them.
- I can assess a lens on the spot, and while I would never buy a lens without trying it on a body first, I’m at this point where if I buy a lens and I see something wrong with it later on, it’s my fault for not catching it in the first place.
- I became comfortable with wheeling and dealing, both in real life and online. This will hopefully translate into bigger things down the road.
- Related to the previous point: I now have an established PF marketplace account with good feedback.
- I actually met other Pentax shooters in real life. One of them is a regular photo walk partner. It’s always nice to sit and have a conversation with another Pentax photographer.
Some other general observations about buying and selling that came to mind after these experiences:
- I wish I kept track of shipping and PayPal/Ebay fees separately. Just from looking I can tell that they are probably substantial. Damn you PayPAAALLLLLLLLLL!!!!!!!!!! *angry fist in air*
- Can someone make a living doing this? If you focus on just Pentax items, then in my opinion you cannot. There are simply not enough Pentax items (and not enough high-value Pentax items) floating out there in the second hand market. It’s not even a competition thing. But, while you cannot live off doing this with Pentax stuff, if you buy and sell carefully (ie. avoid losses like I did, and try and maximize gains) you can probably make some decent pocket money doing this.
- Saying that, I believe that if you bought and sold camera gear from all brands, you can make a living off of this. There are just WAY MORE items from Canon and Nikon and Sony and Olympus floating around out there. More importantly, these items can be really expensive, and that’s where you can make more money. You would have to be doing this full time (or more) but I think it can be done. I haven’t formally crunched out the numbers though, so who knows I could be totally off.
- In the age of Google/Ebay/Amazon, there is really no excuse for not being able to properly value your items. If someone wants to sell something for 10% of its value, I won’t question their decision. I was once trying to sell something here on the forums for well below its value. It was an item I bought for an even lower price locally, and after trying it out for a while I wanted to pass along those savings to a fellow PF member. Someone messaged me telling me how much more I could sell the item for through Ebay. They probably didn’t mean to, but they came off really patronizing and I was insulted. I treat buyers and sellers like fully functioning adults in the same way that I expect them to treat me like a fully functioning adult.
Finally, a couple of tips and tricks for Canadian hustlers:
- Canadian sellers: Get a VENTURE ONE card from Canada Post! It’s free, and you automagically get 5% off your shipping costs, more if you prep your shipping labels online. It’s supposed to be for business, but hey, you’re a business right?
Canada Post - VentureOne Program
- Canadian sellers: Keep an eye on the US dollar. Small swings can mean huge profits. Our dollar is currently at a 12 month high against the US dollar, and it seems to be trending higher. Now is a good time to sell to our friends south of the border.
Or if you wait a while, it should get better.
I hope you found that useful and/or entertaining.
Last edited by EarlVonTapia; 01-12-2014 at 11:57 PM.
Reason: PayPal sucks donkey ba