HOW MUCH IS THIS REALLY WORTH? A CONSIGNORS GUIDE TO PRICING.
So you have cleaned out your closet and now you want to turn your clothes into CASH?
It is important to first understand is how much your items are really worth.
One of the most important things to discuss when it comes to consignment is pricing. Most people do not understand how much their clothing is currently worth, how to properly prepare for the resale process and the different types of market prices for used and new clothing. If your item isn’t priced accurately, the chance of it selling decreases significantly. It is often hard for a client to understand why they received payment of $24 for a jacket they originally paid $360 for.
This can be explained. Though the retail price of the jacket was originally $360, the current Fair Market Value (FMV) is only $60. Then, once the consignee takes a split on the jacket the consignor receives a check for about $24. The FMV amount is the amount an item is worth at the time of resale or what someone is willing to pay. Below you will find an overview.
When you start pricing you must make a decision, do you want to make money or do you want to keep your clothes? Your “get rid of” pile may include both. I typically have a large pile of items I want to get rid of and would love any amount I get in exchange for them. Then I have a smaller pile (typically higher priced items) that I would rather keep than sell for less than $X. Remember the less you price your item for, the more likely it is to sell.
We use our combined years in Retail and using the Internet to set a price at a place where it will sell.
Guide to Pricing for Resale
1) Pricing should be about 25% of the retail price (the price charged by the original store)
2) In the case where you are reselling a New item with the Tags on it you can charge slightly more than 50% of retail or the last Discounted Price which may be priced lower (example Jos. A Bank, buy 1 get 2 free, so the one $600 sport coat with 2 FREE are actually only valued at $200. each).
3) There are some instances where an item has an inflated value, use the “eBay Test”.
4) “eBay Test” Go to ebay.com and click on the Sell page. They have made it very easy by including a “What is it worth?” box. Enter the name of your item, and it will give you the average price “sold” in the last 30 days. It is important to search for “sold” prices, as the prices on the unsold items aren’t relevant because the seller didn’t sell the item. For example “Marc Jacobs Blake” had 23 handbags sold and an average price of $360. The FMV would be $360 unless your bag was a limited run or in mint condition with tags.
5) There will always be exceptions: Items that are in too poor of shape to be resold, items that are so out of date that 1% of retail would be FMV and on the other hand items like Hermes Birkin bags that may be worth more than their original retail price due to their rarity.
Note: Remember that 1994 formal you paid $360 is not worth more to the new buyer because you wore it to your senior prom with Mr. McDreamy. That emotional value is not typically passed on in pricing. Unless of course you really went to prom with Patrick Swayze and have pictures to include with the dress.
We hope this Helps.
Thank You for consigning with Victoria's Closet and VC For Men