[warrioraks]

Originally Posted by alpha1

Counterpoint: For a company like cashify which is into trading with perhaps slight value addition - the price at which it buys mobile (which should be treated as raw material) should be shown as Cost of goods sold. Otherwise, how will they calculate the operating margin?


Similarly, if they account for this in assets (which kind of asset?), how will they measure the inventory days, DSO etc in comparison with indsutry comeptitors?

Inventory is always accounted as a current asset because turnover time is expected to be less than one year. Company can easily calculate margins even if the mobiles are considered as inventory/current assets (instead of raw materials). For current assets, the procurement cost flows to COGS account at the time of sale vs procurement date.

In this case, effectively, any unsold inventory of phones, etc would show as a current asset on the balance sheet and not an expense on P&L. Your operating margin will get calculated only on sold inventory.

No sure what was your point on the inventory days and it's relation to accounting here. That is a straightforward metric that should come from the inventory management system independent of the money trail.

Originally Posted by SmartCat

I think this is how it should be:

- Let's assume Cashify paid Rs. 1,000 cr to acquire inventory of electronics in FY24
- Let's assume they sold goods worth Rs. 800 cr (which were acquired for Rs. 700 cr). So revenues should be Rs. 800 cr and expenses should be Rs. 700 cr. Salaries, spare parts, packaging & shipping costs would be other operating expenses.
- Rs. 300 cr is the unsold inventory (Rs.1000 cr minus Rs.700 cr). Only this amount should go into 'assets' (and not expenses).

Thank you. This is my understanding as well.

[Thad E Ginathom]

aside...

Originally Posted by Fuldagap

I was even thinking of a Moto G84 ... ... ... Phone is rugged to say the least.

frame and back are totally plastic. I don't actually see that as mattering at all: it's probably a lot more rugged than fancy-posh glass, but not as tough as metal. Once in a case, neither looks nor material matter so much.

[SmartCat]

Originally Posted by Thad E Ginathom

frame and back are totally plastic. I don't actually see that as mattering at all: it's probably a lot more rugged than fancy-posh glass, but not as tough as metal. Once in a case, neither looks nor material matter so much.

Yeah sure. And glass/metal is heavy too. This one weighs 210 grams and almost pulls my pajamas down

[Fuldagap]

Originally Posted by Thad E Ginathom

aside...


frame and back are totally plastic. I don't actually see that as mattering at all: it's probably a lot more rugged than fancy-posh glass, but not as tough as metal. Once in a case, neither looks nor material matter so much.

Motos are known for very tough build quality despite the material being plastic. No doubt about it. I have used Motos for over 2 decades and don't see any other brand for myself, having used Nokias too alongside. The Android experience is clean too. I have never even used a back cover or the front glass protector. Never had any issues. My dog steps on the phones once in a while too.

Bought a Razr in 2012 for 24K which had Kevlar backside. It was a fantastic phone in every aspect at that time, only the battery was not so great. It was a very light and slim phone and yet great to hold.

I currently have a G82 and never have to worry about it being used roughly or the battery or using multiple apps continuously. G84 being a tad better than the G82, only cheaper still. Motos upwards of 20K currently are no doubt much better quality than G84 in terms of processor and premium feel, but the battery doesn't suit my work requirement.

Spending more than 25-30K on a phone seems to make me feel uncomfortable, spending unnecessarily on one's wants. Had bought a Nokia 7 for less than 30K in 2018 and it still works like a charm. Although it is stuck on Android 10.

If I ever have to consider another brand, it would be One Plus having heard from friends about them. An extremely loyal Samsung friend of 2 decades used a One Plus 2 years back and his loyalty has taken a toll now.

Buying a used automobile or a used laptop makes sense to me, but buying a used phone hasn't yet happened. Especially because I have hands on knowledge about the used mobile business due to friends. It's quite shady.

Whenever I had to buy a new phone, I went through the used mobile options extensively too but always ended up buying a new phone for the same budget and mostly it has been a Moto.

[Red Liner]

Originally Posted by Fuldagap

but buying a used phone hasn't yet happened. Especially because I have hands on knowledge about the used mobile business due to friends. It's quite shady.

.

Could you please elaborate a bit more on this?

[Fuldagap]

Originally Posted by SmartCat

Yeah sure. And glass/metal is heavy too. This one weighs 210 grams and almost pulls my pajamas down

I feel Apples are quite heavy too for the price that they are sold at.

Originally Posted by Red Liner

Could you please elaborate a bit more on this?

Some friends are into the used mobile trading business. The cost of acquiring used phones is peanuts compared to the sales price. Bulk buying of phones takes place in lakhs of rupees if not more. A 'crate' of used phones comes with some phones already not working for various reasons. Nevertheless, all get sold thanks to technicians employed by the seller, who make everything work. The retail outlet ends up buying these phones and keeps them shining on the outside, or sells them online through Amazon or elsewhere.

In the name of refurbishing, the guy working on the phone is free to do to it whatever he wants. So a used Moto might or might not be a Moto from the inside when bought from a shopkeeper. The technicians are experts in making a working phone out of say 3 different broken phones. A normal end user will never be able to make out what's inside. The parts like a battery, screen are almost always Chinese, bought from the wholesale market in per Kilo rates. A Chinese screen whether cheap or expensive is almost same quality. They are no match to an OEM screen. Other parts like a camera, mic, speakers are changed too. One has no way to ascertain who's who, so to say. By the time a customer realises his mistake, it is too late.

For example, I got a Chinese screen replaced in a Moto G40 2 years back, it cost me pennies comparatively, as I got it repaired from a friend. An OEM screen was about 9K that time for that phone, which defeats the purpose of getting an OEM screen for a cheap Moto phone. The Chinese screens can sustain for long or may get broken all by themselves while the phone is inside one's trousers. Also the performance of a Chinese screen is way worse than an OEM screen. The G40 is still working, though it is kept almost 24*7 on the refrigerator and hardly used except for some emails.

Also, there is the issue of procurement of phones. Stolen mobiles get into the system faster than speed of light. This makes me uncomfortable.

Cashify is known to have addressed all these issues and have established themselves as a trustworthy brand for the customers as well as the vendors. But I take it with a pinch of salt. Amazon used mobiles I totally don't trust.

[Futhead]

Originally Posted by SmartCat

Meanwhile, I had done a small experiment. After ordering XS Max for Rs. 20k, I checked the maximum value they would offer for the same phone. The answer is Rs. 15k! So their margins seem to be good enough to cover for all the logistics/salaries/spare parts/packaging/inventory costs.

Attachment 2579198

As you’ve mentioned the battery would’ve been replaced , it means that the phone has undergone a service. During the inspection process in the Cashify or Instacash, there would be a question seeking if mobile has undergone service, if this is ticked as Yes, then the quote will comedown. I’ve recently sold Samsung A52s 128GB 8GB ROM through Instacash platform. They could detect if my phone back panel is opened or not through their tests and accordingly modify the estimation questionnaire.
In my case price was reduced by 2000.

[Sachin26]

I had a real good experience of selling my 2 year old iPhone 13 Pro brought from Europe to Cashify. I wanted to upgrade to iPhone 15 Pro and while inquiring from Imagine (Apple authorise retailer) got a buyback offer of 34900 for my 13 Pro. With the buyback and HDFC discount the new 15 Pro was coming for 94K. Since my BIL was coming from Oman, I enquire about the cost of new 15 Pro and comparing it with few retailer got the best cost at Lullu for 92K for 15 Pro 128 GB in natural titanium. Ordered the phone and got delivered in less than 24 hours since my BIL had a flight in another 8 hours after buying the phone for me :-).

Now have the challenge of selling the old iPhone. Checked multiple online site and Cashify was offering the best price of Rs 47630. Booked the appointment for pickup but since the slot was coming for day after tomorrow decided to go to a physical store in Logic mall Noida. I was under impression and after reading some online review that the price mentioned is the best possible price and they will do some deduction while inspecting the phone real time. With Apple buyback price in mind anything above 38K would have been a good price. Reached the physical store and the person present on the counter started running few test on the phone. Since I have already reseted the phone to factory default the test were quick. After 5 mins the person gave me the exact figure of 47630 which was same as what was mentioned on the website when I was evaluating the phone through the online tool. I agreed to the cosy happily and the money was transferred to my back account within 5 mins. I got an online receipt on my email as well.

So all in all got a new iPhone 15 pro for roughly 45K in exchange of my 2 year old well kept 13 Pro with a 85% battery life. Happy with the overall experience and with the brand new Iphone with 50K less if brought from Apple retailer in India.

[ninjatalli]

Finally bit the bullet and purchased an iPhone 12 Mini (128GB). The mobile was delivered in 3 days. Have unwrapped the box and activated the phone but planning to do a full test over the weekend. Initial views

1. The boxing is quite well done. Along with the phone, I get a charger block and a cable (and the warranty card).

2. The battery holding capacity is showing 100%, so I guess similar to @SmartCat's observation, the battery seems to have been replaced for this mobile too.

3. The phone looks to be in immaculate condition. However if one does look carefully, there are a few micro scratches, almost the size of dots. None on the screen or the glass back thankfully.



I'll share a more detailed report after a few days of usage.

[sachin_cs]

After going through this thread, I decided to give it a try and sell my IQOO Z3 5G phone, it is an entry level 5G phone with Snapdragon 768 G processor, it was priced 20k when new. I was not expecting much in resale but I was surprised to see that their online evaluation service was offering 7500 for my phone, which is good resale value. My phone is in reasonably good condition, baring few minor scratches from cover. Finally the guy from Cashify came and he did a physical inspection and he found out several faults with my phone, which I was not aware about or rather I never thought them to be a big problem like he tried to make them, like a minor scratch on body, a minor scratch on screen. However, he did an online re-evaluation and the Cashify offered me grand total of Rs. 890/-, we both had a good laugh and it made more sense for me to giveaway my phone to someone needy for free rather than selling it to them for peanuts. When I checked the prices of the same refurbished phone on their website, it was priced at ~ 10k. If someone really sells their phones at this prices, then they definitely have a good margin.

[arnav17]

Looking for advice from BHpians here.

I have a Samsung Galaxy A31, using for approximately 3 years. Obviously when I got it I dint bother much about camera quality and speed using heavy apps, but now feeling the need, especially the camera part of it.

After coming across this thread, I checked the evaluation and it offered around 4-5k. I have a couple of old used phones at home which I would sell hence adding that up to around 7k.

Looking at phones on cashify which come to 25000 max after the 7k reduction, I found 2 suitable phones, the Iphone 12 and the Galaxy S21 5G. Need feedback from owners on the comparison of these phones. I must mention that I have never used any product from the apple ecosystem till date.

Thanks in advance!