Johannesburg - It’s 10am Monday morning and the Cash Converters store in the Fourways Crossing shopping centre is buzzing. And that’s after weekend takings of more than R100 000.
It is testimony to the roaring second-hand trade, which has mushroomed into every kind of product line, from tea cups to farm gear, and which is plied in pawn shops, auction houses, charity shops, second-hand dealers and, not least, online.
And no longer are second-hand sellers and buyers largely in the lower-income brackets. An increasing number of affluent people are selling goods for cash, especially electronic devices, so they can upgrade to the next level or just get rid of things they have been hoarding, according to Richard Mukheibir, chief executive of Cash Converters.
A walk around the 715m² Fourways store, where 40 000 people a month come to shop, provides ample proof. A glass cabinet full of smartphones, iPads, iPods and digital cameras is centre stage, surrounded by everything from audio equipment, TVs, computers, music instruments, sports gear and tools to kitchenware, homeware, furniture and pet products. Many of the items are brand new, still in their boxes, and selling for half the price you’d find elsewhere.
“We’ve come a long way since the days when second-hand goods were associated with dingy and dodgy pawn shops,” says Mukheibir.
“A lot of our customers are affluent, people savvy enough to know that you can find a smartphone for half of what you’d pay next door. It’s well suited to the upwardly mobile, selling on as they improve their lifestyles. One of our big markets is students as they graduate and get jobs.”
For Cash Converters, an Australian-based company, it’s all good, because recently this franchise opened its 70th store in southern Africa, reflecting its huge growth in the 30 years it has been here.
“The overall turnover has increased 25 percent year on year,” says Mukheibir.
“One of our franchisees recently sold a home entertainment system for R350 000. It’s a good business if you work hard.”
Mukheibir’s sentiments are echoed by Jenny Dinham of Execu-Pawn in Randburg.
Dinham, who has been a pawnbroker for 22 years, says the range of stock has been increasing and the quality improving.
“People are moving into smaller places, so they’re shedding stuff they don’t need. And for people feeling the pinch, it makes sense to sell things for cash. We sell everything from oriental carpets to power tools and fine watches and jewellery,” she says.
The trade in second-hand goods on the internet is “exploding”, according to Tom Fuhru, chief executive of the Second-hand Dealers and Pawn Board.
Online marketplaces such Gumtree and BidorBuy are doing a roaring trade, and now Facebook has joined the fray.
“Our research found 180 percent growth in second-hand retail sites between March 2013 and March 2014 on Facebook, competing with Junkmail, OLX and Gumtree,” says Fuhru. “And Facebook is restricted to groups of people who know each other, making it more accessible and trustworthy.”
My Facebook search found everything from second-hand kitchens to “pre-loved” wedding dresses. Like all forward-thinking sellers, websites and Twitter handles are referenced, or your search finds a list of relevant sites in Facebook. Technologically-enabled shoppers, with time to compare prices across sites, are probably finding the best deals.
Jaco Jonker, of BidorBuy, says online traders are able to sell more cheaply as they don’t have overheads like shop rentals. Often, sellers import products directly from the manufacturers, so they don’t have to pay distribution costs.
Fuhru believes the second-hand goods industry is bigger than trade in new goods. This has been fuelled by the tightening of legislation to combat trade in stolen items.
Brick-and-mortar outlets must hold on to goods for seven days before selling on. At mainstream second-hand outlets like Cash Converters, goods are tracked through ID numbers and addresses given by sellers and buyers.
“We also have closed-circuit TV, and we don’t deal with anyone under 18. Less than 1 percent of items we sell are stolen,” says Mukheibir.
Stolen items that do slip through the net are often traced back to youngsters stealing from relatives to support a drug habit. “Inter-family stealing is a problem, but our buyers are well trained to pick up a dodgy seller, and we adhere to the rule that if all the boxes are ticked but you’re still not sure, don’t do it. It’s bad for business,” says Mukheibir.
That said, the beauty of the second-hand industry going mainstream is that even if you think nobody would want your old telephone instrument or scuffed hockey stick, think again.
“We buy almost everything, including broken items if they can be repaired. We clean them up, fix them and sell them at half-price. You’d be amazed at what sells. Everything has a market, and when times are tough price is what matters,” Mukheibir says.
As I walk around the Fourways Cash Converters I can see why nobody leaves the shop without something in their hand. I spot a cat scratching “tree” for R200 and, yes, old telephone instruments for R20 each. Best is the Mellerware Modena coffee machine for R299. I resist the temptation, but I leave knowing where my daughter’s old computer games are headed. - The Star
RESOURCES:
l Cash Converters: cashconverters.co.za
l BidorBuy: bidorbuy.co.za
l Execu-Pawn: execupawn.co.za
l Gumtree: gumtree.co.za