Reverb's New Trade-In for $$$$ Feature

Yup. A bar considerably lower than GC. Good times!!
They're going the Zillow route....hopefully it doesn't (or hopefully it does) backfire.

They have more data on the used gear market than anyone.
Pick an item and they have data on:
- average purchase price
- average time it takes to sell
- number of times the item is searched for on a daily basis

They can hire one data scientist to write an algorithm to predict how much money they can make on any item, as well as determine what they should pay for it, in order to make $.

They are in the perfect position to be the middle man.

Great for them, sucks for us.

(for anyone who's not familiar - Zillow did the same thing, they were buying houses and them just reselling them....then their algorithm f'd up, or didn't adjust for market fluctuation, and they bought tons of houses for more than they were worth.....awwww, poor Zillow)
 
They're going the Zillow route....hopefully it doesn't (or hopefully it does) backfire.

They have more data on the used gear market than anyone.
Pick an item and they have data on:
- average purchase price
- average time it takes to sell
- number of times the item is searched for on a daily basis

They can hire one data scientist to write an algorithm to predict how much money they can make on any item, as well as determine what they should pay for it, in order to make $.

They are in the perfect position to be the middle man.

Great for them, sucks for us.

(for anyone who's not familiar - Zillow did the same thing, they were buying houses and them just reselling them....then their algorithm f'd up, or didn't adjust for market fluctuation, and they bought tons of houses for more than they were worth.....awwww, poor Zillow)
Yeah Zillow crashed out of the whole house buying business with a pretty huge loss, if I remember right. We'll see how this goes.

Agree that this only makes sense if you don't have a GC in reasonable distance.
 
Yeah Zillow crashed out of the whole house buying business with a pretty huge loss, if I remember right. We'll see how this goes.

Agree that this only makes sense if you don't have a GC in reasonable distance.
Yes they did take a big loss.
In my heart I like to believe it was a data scientist working at Zillow that sabotaged them.
Zillow was just flipping houses as a middle man and making a profit. It drives up the cost of homes and pushed lots of people out of the market to buy. Glad they lost money as their 'business' of buying/selling was only helping them, not buyers/sellers.
 
There is one thing that you can be sure off, this will most likely not benefit the majority of musicians.
It may help sellers, since choosing to sell your own gear can probably undercut the reverb.com used price. Who knows though, reverb may promote their listings and bury the listings of independent sellers. It probably hurts buyers since the used gear sold to reverb will likely be sold at a higher price compared to an independent seller. With fewer people selling independently, the prices will probably go up.
 
Yes they did take a big loss.
In my heart I like to believe it was a data scientist working at Zillow that sabotaged them.
I think it was greed and pride. They thought they had a way to fool the rest of the real estate market, sitting there knowing who was going to sell before anyone else and having investors dumping money into their war-chest, so they snatched the great properties faster than they could flip them, but collided with other investors/flippers who were not part of their game.

The story isn’t fully known yet, but the real estate listing world shouldn’t be allowed to purchase properties they’re listing, nor should they be able to notify anyone via a side channel that a property listing is coming up. That’s like insider trading.

Zillow was just flipping houses as a middle man and making a profit. It drives up the cost of homes and pushed lots of people out of the market to buy. Glad they lost money as their 'business' of buying/selling was only helping them, not buyers/sellers.
Agreed.
 
It may help sellers, since choosing to sell your own gear can probably undercut the reverb.com used price. Who knows though, reverb may promote their listings and bury the listings of independent sellers. It probably hurts buyers since the used gear sold to reverb will likely be sold at a higher price compared to an independent seller. With fewer people selling independently, the prices will probably go up.
If so they’d open themselves up to a mass exodus and possibly major attention on unfair business practices. Google got all sorts of negative attention for burying search results, whether it was intentional or not. Hopefully Reverb’s developers and the executives are smart enough to not make that move.
 
Totally agree - Reverb shouldn't either.

Technically, though, Reverb is not purchasing the gear. Maybe Chicago Music Exchange as a front will
be tied to some purchases. Who knows? The majourity of buyers look like larger retailers who probably
somehow opted in to this program, so as to purchase gear at fractions on the dollar and then flip on
Reverb later for a profit.
 
No doubt Phil McKnight will take a good look in to this, it will be interesting to see his video on it assuming (but surely?) he does one.
 
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