Hi Angelo and Others-
I'm a little confused about Angelo's statement "I'll buy those." If Angelo means that he is personally interested buying portables for his own use from the Summit Cycling Center, then I get it. If he means that SCC buys used bikes, then he and SCC are getting into very murky water. Let me explain. Buying used bikes has the following effects:
- Encourages bike and bike part theft. Some illicit goods will make into
the shop regardless of safeguards, because of the economic incentive.
- Undermines public confidence. Buying used bikes makes a co-op more of
middleman, and less of a value added community group. You are looking like a brick and mortar classified ads scheme/pawn shop. If I found my stolen bike/parts in your coop, I would have it shut down by the police. Charitable organizations generate most of their money through donations...that's what people want and expect in a community bike shop.
- Undermines the relation with the police. In Utah, we've received
thousands of bikes from police agencies because they recognize that, *unlike pawn shops*, we are not providing economic incentive for desperate people.
- Undermines the relation with local bike shops. Some bike shops take
trade-ins, most compete at a higher price point than co-ops. Buying and reselling Bike Friday's and Moultons puts a coop in competition with its greatest potential ally.
- May jeopardize your 501(c)3 status. Non-profits (Federal and State
recognized) are limited in their economic activity. Engaging in commerce, like other retailers, can cause an organization to lose (or never achieve) its charitable status.
Kevin
On Thu, Jun 7, 2012 at 9:50 PM, Angelo Coletta < summitcyclingcenter@yahoo.com> wrote:
Hello Marrissa
Assessment is difficult. Economics 101-supply and demand. It's value is whatever the market will bear. I often ask the donor what he paid for it and how long ago. That gives me a basis. If he doesn't know, I try to source a price. If that is not feasible, I start asking myself what do I think about the bike. What is its condition? Features? Box store bike (low ball) bike shop bike (high ball).
Nearly every bike is valued at least $50.00, unless it is a sidewalk bike or such. Some shops create an appraisal checklist. Then there is what your members want and don't want. For instance, I don't like BMX bikes, but I have a friend and he buys and sells old BMX all day long. I like portables like Moulton and Bike Friday. I'll buy those. You have to study what your community values.
After the bikes are re-furbished, then I price according to time put in and cost of parts above the basis. Our rate of exchange for EAB is $8.00/hr for every hour of work given to the co-op.
Angelo
*From:* Marissa Pherson marissapherson@gmail.com *To:* thethinktank@lists.bikecollectives.org *Sent:* Wednesday, June 6, 2012 12:25 PM *Subject:* [TheThinkTank] Assessing Value of Donated Bikes
Hi all,
I'm new to the list, from Columbus, IN's community bike co-op. We just launched a new website: www.bikeco-op.org
I come to you seeking any policies and procedures you may have in place at your local bike collective regarding determining the value of a bicycle. We have an Earn-a-Bike program and a shop bike program and would like to standardize the values.
At the moment, we don't have a checklist or chart to determine how much time an Earn-a-Biker needs to work to earn a donated Raleigh hybrid, or how much to suggest a donor provide for us to have that same Raleigh hybrid fixed up and ready to go.
Before re-inventing the wheel, I wanted to come to you all and get some input or some info on what is used elsewhere to keep bike values somewhat consistent.
Thanks in advance!
Marissa Pherson
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