One of the secrets to selling success is knowing how to price your items properly. Does this thought sound familiar?
“Wow, a rose gold watch at that price is a steal!”
Or maybe “I would never pay that much for that car seat. That model came out in 1979!”.
Determining the cost of your own items can be tricky, but there are a couple of shortcuts you can use to find that pricing sweet spot. Begin by asking yourself some important questions.
Question #1- How long am I willing to sit on the item?
One important factor to consider is how quickly you want the item to sell. If you don’t have the time or storage space to wait for the right buyer, price it to sell! With an enticingly low price, that deal will be impossible to pass up and your item will fly out the door.
Question #2- How much would I pay for this?
Be super honest and put yourself in the buyer’s shoes. Don’t start with the price you paid for it. Remember, there’s a big difference between retail and resale, and there’s a major markup on retail products (which is one of the reasons why VarageSale is so awesome).
Question #3- What’s the minimum price I’m willing to let this item go for?
Knowing precisely what you want is essential to getting what you want. Set yourself a goal and manage your own expectations. If you have a minimum target profit in mind, you’ll be more prepared for any negotiations that go down in the heat of the PM.
Now that you have a clear understanding of your motivations and the perspective of a potential buyer, here are some other thoughts to keep in mind when pricing your items:
Do your research
Check out some comparables and keep track of your competitors. Search VarageSale to see how much other people are asking for similar items. Google is also your friend. Include as many details as possible and look at recently sold items of the same design, manufacturer, age and style on eBay and see what other sellers are charging online. The important thing is to get a point of reference for how others are pricing your item. Take note of the market landscape and stay competitive by going a buck or two under what others are charging.
It can be hard to maintain an objective perspective on the value of your item. A common blind spot is the tendency to overvalue things that we may have overpaid for. Another blind spot is mistaking sentimental value for monetary value. Memories might raise the item’s worth to you, but potential buyers won’t be as moved. Try to remove your feelings from the equation.
Keep the door open to raising or lowering your item price. If you leave yourself room to negotiate and stay flexible, you’ll be surprised by the sales you can make. This is especially helpful when it comes to items that have minor defects, like a shirt with a small ink stain on it. Be honest in your descriptions and give the buyer as much information as possible. Offer to make adjustments depending on the interest and feedback you get.
Some sellers offer discounts to buyers who are willing to make the purchase at a meet swap. Tailor your discounts according to your needs and what makes the most sense for you. If a buyer is purchasing one item and they’ve expressed interest in something else you’re selling, consider giving them a discount to take both. This is a smart move for declutterers who are looking to get rid of as many items as possible. It can also be an efficient use of your time as it consolidates two item pickups into one!
Bundle With Care
Similar to discount offers, many sellers will package items together in a single post and price them as one low-cost bundle. There are a couple of things to remember when using this tactic: 1) Make sure that your bundles make sense. Summer and winter clothes for an 18-month-old won’t work because by the time the seasons change, that 18-month-old will be 24 months old. 2) Post small bundles with small price tags! People are much more likely to buy 4-5 items for $10 than they are to buy a garbage bag full of items for $75 (yes, it has happened).
There’s no simple formula on the best way to price your items. There are many factors to consider that are specific to you as a seller, and these can change depending on what your circumstances are. Do you have any pricing tips, tricks or strategies that weren’t mentioned here? Let us know what’s worked for you!