posted on December 31, 2007 06:57:28 AM
Many different ways of determining value - savvy buyers look for it in item description, good sellers provide it. Is the value based on an appraisal? On an accepted price guide? On MSRP? Oh, wait. Fluff did provide it, her value is based on what the same item sold for in department stores. Not a bad method of determining close-out and overstock value. I worked for a pioneer in the overstock market. He advertised heavily in national magazines, sometimes stating value as MSRP, but usually conducted an independent value assessment of what the item was selling for in major retail chains.
Of course, his valuation of inventory for the IRS was based on another method. On December 31st, he would put a tiny classified in the local paper, with a one-day sale at unbelievable prices, less than cost. Enough folks scoured the classifieds and came in to get the bargains to justify his valuating his inventory at the one day price for tax purposes.
posted on December 31, 2007 07:59:39 AM
"""Enough folks scoured the classifieds and came in to get the bargains to justify his valuating his inventory at the one day price for tax purposes."""
Oh my GAWD! The IRS and I agree!
That's scary enough for me to almost change my mind
So if this guy you worked for normally sold his item for $50.00 and on the last day sold them for, oh say, $3.00....does he tell the IRS the value is $50 or $3.00 ?
posted on December 31, 2007 08:09:14 AM
The IRS agreed that the lowest marked-down price was appropriate for tax purposes, a rare instance when your valuation method - the price paid at a certain moment in time is accepted as the value of an item.
posted on December 31, 2007 08:46:53 AM
One of my best friends, now deceased, was a heating oil trader. It was not uncommon for a few smallish trades to take place at the end of the year that were a little bit divergent from the expected prices. It had to be a small variance, because the trades at quarter and year end were always carefully scrutinized, but if you multiply even a small number times a large position, it makes a difference.
BTW, open outcry trading is being phased out in many areas. If you ever have the opportunity to go to the floor, take it; you can't believe how physical it is; it's more like playing rugby than placing orders.
posted on December 31, 2007 10:18:55 AM
No, I didn't mean sellers weren't being truthful with the IRS. I meant that the IRS is one of the few exceptions that accepts your limited view of value assessment.
[ edited by pixiamom on Dec 31, 2007 10:40 AM ]
posted on December 31, 2007 12:46:30 PM
Simply repeating something over and over again doesn't make it true.
No matter. For the other participants in the thread, here are some commonly-used valuations that are all valid in their context:
Auction appraisal: This is the amount you can reasonably expect to receive for an amount at auction, usually a live auction. Antiques Roadshow gives out auction appraisals that are on the high side.
Insurance appraisal: This is usually how much it would cost to replace the item with an identical one. For some goods, such as artisan-crafted jewelry, this appraisal is usually quite a bit higher than the purchase price because of the effort that would have to go into finding the materials and creating an identical piece.
Tax appraisal for charitable donation: There are a number of factors that go into determining value for a donation. Anyone who is interested should read IRS Publication 561. I had a diamond and gold necklace appraised earlier this year by a GIA-certified appraiser in accordance with the guidelines set out in Pub 561. I did this because I intended to donate the necklace. Fair market value had not much to do with the resulting tax appraisal. Because of the soaring price of gold, interest in diamond jewelry and the fact that I got a pretty good deal when I bought it some years ago, the tax appraisal was a multiple of the purchase price.
Most knowledgeable shoppers understand on some level that the venue has a lot to do with the price of an object. If you go into Tiffany's and buy a crystal pinecone, like I did before Christmas, you should expect to pay full retail. If Tiffany's puts their returns and overstocks in a big lot and ships it off to a broker, who then sells smaller lots to people such as gift shop owners and eBay sellers, the shopper can reasonably expect to pay less. You didn't have the Tiffany's experience so you shouldn't have to pay for it.
Regardless of whether or not you comprehend it, this is in fact the way the real world works.
posted on December 31, 2007 01:04:32 PM
Comprehension does seem to be a problem hence the repetition of the obvious.
Appraisals of any kind are based on past sales. It's an appraisal, it does NOT promise you will get that much for your item..it's an idea, an estimate....it's not cash in your pocket.
"""You didn't have the Tiffany's experience so you shouldn't have to pay for it."""
"Tiffany experience"...
I hope the "Tiffany experience" makes that unbelievable mark-up worthwhile.
Yup, in Tiffany's it may have been a million dollar pine cone but if it sells somewhere else for $9.99 it's value is 9.99. If the buyer turns around and sells it to his neighbor for $1,500.00 then it's a $1,500.00 pine cone.
If gold is SELLING at $800.00 an ounce then it's value is $800.00.
If it starts SELLING at $1,000.00 an ounce then it's value is $1,000.00.
If no one buys and it's SELLING for $400.00 then it's value is $400.00 an ounce.
posted on December 31, 2007 05:05:28 PM
Tiffany experience?
Unless you make an appointment in advance and specify what you want to view,I am afraid the ordinary shoppers are going to be very disappointed with their Tiffany experience.
I suggest that they go to the museum or a local antique jewelry show .
Of course they will have to pay an admission fee while Tiffany is free for the browsers!
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posted on December 31, 2007 05:12:00 PM
Many Ebay bidders think they are smarter than the seller,very few of us can outsmart the dealer,he has the merchandise,it is his merchandise,he knows where it comes from and why it is for sale and he is not there to lose money.
If it sounds too good to be true,most cases it is too good to be true,buyer beware.
As for Tiffany and their markup,Tiffany does not have stores in strip malls or parking lots,their overhead is huge.
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[ edited by hwahwa on Dec 31, 2007 05:20 PM ]
[ edited by hwahwa on Dec 31, 2007 05:24 PM ]
posted on December 31, 2007 05:31:56 PM
I had a Tiffany experience once. We were shopping for after the fact wedding rings and they let me nurse my cranky baby in a private showroom. One of the rooms where they whip out the really, really pricey stuff. It was very nice. Plush yet understated. I would have been very happy to live there.
posted on January 3, 2008 01:38:02 AM
You can tell when the Vendio RT forum is slow - posters who are dying to pick a fight will post on EO even though they have no experience selling and little experience buying on eBay. Take it for what its worth.
