Leatherman is setting up a new store where you can buy and sell used multi-tools, called the Leatherman Exchange.
Details are still limited, but here are some takeaway points I found interesting:
“Sell and buy pre-loved Leatherman multi-tools backed by the brand that built them.”
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Buyers will be able to browse through an “official collection of secondhand items.”
Sellers could “get up to a 110% store credit payout when they sell.”
Leatherman says they will “help connect” sellers of used Leatherman multi-tools with buyers “who’ll put it to work again.”
It sounds to me that you sell your used Leatherman multi-tool on their Exchange site, where the company “backs it,” presumably with continued warranty coverage, and you get a store credit when someone buys your old tool.
Personally, I’d be more interested in a Leatherman multi-tool trade-in program, rather than this consignment-like arrangement where you “list” a tool and can get a “store credit when you sell.”
Looking just a little deeper, apparently “recommerce” and “branded resale” is a thing.
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What do you think about the new Leatherman Exchange used multi-tool market?
Robert
If leatherman really does back the used tools with a warranty I’d be interested as a buyer. Same tool at a cheaper price. But what’s in it for leatherman if they have a compelling price for resale? To not over commit in the warranty they will have to spend workers time to evaluate a lot of gadgets on a tool. Time is money. And it may cannibalize sales of new Leatherman.
Chris
Regarding cannibalizing of sales, of I were to guess, that is already happening and why they may be looking to do this. I have several Leatherman tools, but quite a few were handed down from my father. At this point, I would love to have a pair of the Raptors, but have no need for another standard style multi tool. And if I did, I would probably be looking second hand to begin with.
I think this is much like what has happened to ShopSmith (hey Stuart, that could make an interesting article). They are going out of business (again). Anyone that wants a ShopSmith, they are sitting around all over the place and going incredibly cheap at times second hand.
Everyone is making Leatherman style tools now. I appreciate them as an American company who revolutionized the concept. I will continue to support them as much as I can. But I just don’t think they will be able to hold their position going to far into the future without some business changes. And maybe, that is what they are thinking??
Scott K
I got this email, too. It’s an interesting concept. My initial thought was to wonder if they are having issues with warranty claims on counterfeit items. Some companies state they will confiscate counterfeit items if they’re sent in for repair. I thought this could be a way to clean up the second-hand marketplace and protect their brand.
It appears as though they are using a platform called Treet (https://www.treet.co/) that allows companies to setup different services: “Peer-to-Peer (Peer-to-Peer Resale), Trade-In (Take inventory back from customers), Off-Price (Sell excess inventory through resale), Returns (Reroute returns to be resold).”
The seller pays a 20% commission if they choose the cash option as opposed to the store credit.
Jared
I assume this will be designed to incentivize sales of more Leatherman product, but I don’t quite understand how.
Perhaps the idea is that you list your Sidekick and upgrade to a Charge or Arc or something. Or maybe they’re talking about “up to” 110% trade in value based on what you paid back in the day and a particular tool being more valuable now.
I’m sure they’re getting a slice somehow, I’m just not sure where. Like do you have to send the tool into Leatherman to be verified and/or refurbished? It would seem ripe for abuse if they just coordinated buyers and sellers.
It all seems unnecessary, but I suppose someone might be tempted to try a good-condition tool at a slight discount – and then the seller in turn might want to swap to a different tool.
Scott K
I believe they are using a preexisting platform to manage the brunt of this. This is more like eBay and Leatherman helps with authentication through posted images. They send you a shipping label and you are responsible for packing and mailing. There’s a dispute resolution process if the quality is different or the tool isn’t authentic. I think the 110% is an incentive to use your sales credit to upgrade to a more expensive Leatherman. The alternative is to take the cash and likely pay a commission.