Early on in my foray into aquarium keeping, I succumbed to the allure of used equipment. Seeking the most bang for the buck, want ads and garage sales proved to be fertile resources for keeping up with my ever-growing demand for more tanks. Some of the bigger aquariums I used in the set up of my original store were products of these same hunting expeditions. Having always been a “do it yourselfer”, facing the prospect of putting used tanks and equipment back into working order wasn’t a daunting task. I looked at the refurbishing and repairs as just another facet of the hobby that I enjoyed. I actually got into it enough that most of the original stock tanks in that original store came from buying the warranty returns from an area wholesaler, then repairing whatever the malfunction was to create a usable tank. As you might be able to surmise from that strategy, I had more time than money to invest in building a store – not an unusual situation in the aquarium business. It’s not a strategy I recommend to everyone, but I had no regrets about how it turned out. I learned everything about repairing broken and leaking tanks the hard way, which paid off later when I was able to charge good money for a service most stores couldn’t provide, and I got my store built for dimes on the dollar.
Probably because of these roots and early skill development in creative aquarium acquisition, I wasn’t afraid to keep on dealing in used equipment in my store. This month’s column is really for you retailers who have toyed with the idea of used aquariums without really knowing where to start or who have dabbled in it but have some hesitations about what’s involved. I have talked to store owners who have had a bad experience with used equipment sour them on that avenue, as well as those who simply don’t have the background, desire, or inclination to deal with products that don’t have the manufacturer’s warranty standing behind them. In those instances, they are right to avoid that market niche. It is an area that isn’t for everyone. It has its perils, drawbacks, and little minefields that can be traps for the unknowing and unaware, but I found it also had some great advantages and sales appeal that, over all, made it quite profitable.
There were two benefits I found in dealing in used aquariums. First, it seems almost every novice in the hobby starts out too small. People are cautious about jumping in whole hog at the beginning, which is why the lowly ten gallon aquarium set-up is the entry level cornerstone. Try as you might to convince the curious first timer that bigger is better; that the larger margin of error provided by a bigger aquarium can make all the difference between success and failure; that what looks big now will shrink rapidly as they start to populate it, and you will most often be met with the skepticism that greats any salesman the customer perceives as trying to “sell up”.
“Of course you say that. You’re trying to get me to spend as much money as possible.” So, too often, the first timer starts too small. If they manage to succeed, and, as a retailer, you manage to create another hobbyist and regular customer, it isn’t long until the small beginner’s tank has reached capacity, and your new customer can’t buy any more fish. It was this situation that made me realize the practicality of taking trade-ins from my customers. By helping them get into a bigger tank, I was creating more fish sales, more plant and decoration sales, and more tank sales. There are some pitfalls and things to be avoided, but with a little planning, some upfront store policies, and some common sense, it can be a good situation all around. The second benefit was having a few less expensive, used systems for sale to entice the hesitant beginner into testing the waters or the expanding hobbyist into getting one more tank. Everyone loves a deal and, bottom line, it got more aquariums set up, which was good for business.
Our most common trade-in involved aquariums that were up and running, whose owners just yearned for more gallons. We developed a system where the customer would buy the new system, then when they brought in the trade-in, I would give them a refund for the amount we had agreed on. I always started the trade-in discussion with a candid explanation of what the used system was worth, because the first touchy landmine is the difference between what the system sold for new and what it’s worth used. Begin with a complete listing of equipment to be traded, including brands and models, then estimate the system cost new. Every situation is a little different, but my pitch was somewhat like this: If a complete used system was in really good condition, we would usually sell it for 65 to 75% of the price of a new system. In this, we would provide new gravel, because that was the one thing we didn’t take as trade-in, for three reasons: One, used aquarium gravel is yucky and gets worse fast – handling it at retail is out. Two, the person buying the used system is NEVER going to want the same color as the used stuff that came in with it (count on it), and three, the customer trading the system in should keep the used gravel to seed the new tank with so they can avoid having to start completely over at the beginning cycling their new tank. So, I would explain, if I’m going to put in new gravel and sell this tank for x dollars, in order to make a profit for myself (that’s why I’m here), then I can give you x amount for it on trade-in.
Another part of this equation was determining the condition of the trade-in tank if it was still up and running at the customer’s house. On occasion, if it was a bigger tank, or a questionable situation, I was known to go to the customer's house to give an estimate. More often, I or someone on my staff, would know the customer and the system well enough to give them a ballpark figure. We always reiterated the following statement several times in the course of the negotiation, and I really never got burned, lied to, or in a disagreement at the final sale.
“If the system is complete with all the equipment you say it has, in the condition you describe, and saleable without a lot of cleanup I’ll give you this much. Each item that is missing or unsalable will be deducted from that.” By this point I have a written list of the agreed upon equipment, condition, and value, and we make a deal. The customer writes a check for the new system, takes it home, sets it up, and when they have the fish transferred and the old aquarium cleaned up (I emphasize this in the discussion), they bring it in, I write them a check, and they usually turn around and spend it on more fish, plants, and deco. I even regularly had customers come back in and tell me they decided not to trade the old tank in after all, but rather keep it so they could get even more fish – folks after my own heart! Next month, I’ll turn my focus on what to look for (and avoid) if you’re a hobbyist shopping those garage sales and classifieds to feed your habit. And remember, in the mean time, give me your feedback or suggestions for column topics at www.birdsill.com.
Well, I've dug out from under the most recent disaster in my web life. I woke up one morning to find my web site and the web hosting company where it lived gone. Vanished. 404ed. Feature Price Hosting decided to go out of business and leave their customers hanging. I have recreated the site from backups, but by its nature, all of the reader's comments are gone forever. With that, there is little else to do but pick up and carry on. Thanks for your patience.
Over the Counter is in the middle of major disaster recovery. Please check back again for all the gory details and more aquarium stuff.