I have been playing around with some numbers. For the trade-in side of our Upgrade Pilot Program I am looking at starting with the original purchase price and then using a reducing percentage for the trade-in value based on age and version. What I have come up with so far is the following on the trade-in side for v3:
1. First month 100% of purchase price
2. Second month 90% of purchase price
3. Third month 89% of purchase price declining 1% per month thereafter
4. Trade-ins would only be available to the original purchaser
5. The trade-in must be for a higher model in A-stock only
6. The product must be returned in its original pack (we have pack available to purchase if needed)
7. The cost of the shipping back is not included but our favourably priced prepaid shipping labels can be used

For v2 and earlier series products being traded-in I am looking at the following:
1. 55% of the original purchase price for product purchased in 2010
2. 50% of the original purchase price for product purchased in 2009 and reducing 5% per year thereafter (2008 = 45%, 2007 = 40%, and so forth)
3. Trade-ins would only be available to the original purchaser
4. The trade-in must be for a higher or the same model in v3 A-stock only
5. The product must be returned in its original pack (we have pack available to purchase if needed)
6. The cost of the shipping back is not included but our favourably priced prepaid shipping labels can be used

I am still pondering how to deal with the condition of the trade-in. All of the above assumes the product is in excellent or at least very good condition. Some sort of percentage less for minor blemishes and another for really rough around the edges could be incorporated. We will create a web page that works out your percentage of trade-in value from your original purchase price by putting in the particulars about your product.

On the Refurb Store side all products sold in the Refurb Store will include the shipping, just like our new products, and will come with a 3 year warranty.

I would love to have your thoughts on all this.
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Ian Colquhoun
President & Chief Engineer