This article will guide you through our grading process, ensuring you have all the information needed to understand how we evaluate the devices we acquire from your customers.
Benefits for Consumers
Trading in with Foxway offers several advantages for your customers. It is hassle-free, as they don't have to deal with the complexities of selling their devices directly to other consumers. Our transparent grading process ensures that they receive a fair price for their devices, based on their actual condition. Additionally, by trading in with Foxway, customers can avoid the risk of scams and fraud that can occur when selling directly to other consumers.
The Grading Process
Grading is a straightforward process where your employees or users answer a series of questions to create a matrix that determines the device's condition. For example, when grading a phone, we typically ask four standard questions:
- Does the phone power on?
- Is the screen of the device without LCD defects and touchscreen is functional?
- Is the device in good condition physically, normal wear and tear is accepted?
- Are the physical buttons present and functional?
Based on these questions, we categorize the device into one of four grades: No Power, Faulty LCD, Faulty, or Working. It's important to note that the condition of internal components is not considered. As the visual assessment is highly subjective, we’ve worked out a concrete question set, together with additional criteria and visual examples.
Pricing Based on Grading
The price we offer for a device is based on its grade. However, discrepancies in grading can lead to price differences. This is where the process diverges between in-store and online assessments.
In-Store Flow
In-store, we expect your employees to have a certain level of competence to accurately grade the device and remain as neutral as possible. Based on past performance, market average discrepancy in terms of value fluctuates around 3%.
If an employee incorrectly grades a device as working when it is faulty (e.g., a broken screen), you must cover the price difference due to the employee's error.
To mitigate this, we include a buffer in the vendor margin. For instance, if the price is €100, the end customer may be shown a price of €90, and the remaining €10 goes into your buffer, which can be used to offset future grading discrepancies.
Online Flow
Online, the customer grades their own device and sends it to us. If there is a discrepancy (e.g., the customer grades it as working, but we find it faulty), we send an automatic email explaining the difference, including a photo of the device, showing the defect causing the discrepancy. We then offer a revised price, which the customer can accept or decline. If they decline, we send the device back to them.
Employee Performance & Training
For in-store trade-ins, it is crucial to conduct training for store employees on how to accurately grade devices. Proper training leads to fewer grading discrepancies, allowing for a smaller vendor margin buffer. This, in turn, enables us to offer higher trade-in prices to consumers, making the pricing more attractive and increasing the usage of the trade-in program. Accurate grading by store employees ensures that customers receive fair and competitive offers, enhancing their overall experience and satisfaction.
In conclusion, our grading process is designed to be fair and transparent, benefiting both vendors and customers. By maintaining high standards and providing adequate training, we aim to create a seamless and trustworthy trade-in experience.