Women’s Consignment Pricing – The Importance of Brand
According to Brand Keys the New York-based brand and customer loyalty research firm: since 2008 the importance of brand names has consistently increased, standing in 2012 at 29%–more than tripling in importance over four years. The more considered a purchase, the greater the role a strong brand plays in the decision making process, especially when it comes to fashion. Moreover, it can be expected to continue. According to Brand Keys’ latest Fashion Shopper Survey, the youngest fashion buyers (21-34 year olds) showed the strongest lift in brand importance. What’s more, it’s as true for leisure and casual apparel as for luxury apparel. The Survey shows, Nike and Hilfiger ranking right at the top along with Armani and Chanel in terms of importance in the purchasing decision.
In the 2012 Brand Keys Fashion Brand Index, the top spot goes to Ralph Lauren/Polo, followed by one’s favorite sports team, Armani and Nike with Versace and Chanel, tied for fifth place. I would argue that Brand is even more important to Consignment shoppers who are far more value conscious than the average shopper. Indeed, it is what NextGen has found, ….in spades!
Women’s Consignment Pricing – The Importance of Demand
Brand, i.e. perceived value and original price is, of course, central in setting resale prices. Indeed, along with condition, they’re the only factors mentioned in consignment pricing guides. But of overriding importance is demand.
There are four principal outlets for resale apparel. 1) Individual Garage and online sales, 2) Seasonal Consignment Events, 3) Online Resale Sites and 4) Brick and mortar resale shops. The pricing metrics for the Seasonal Consignment and Online Outlets are only now being established as these ventures are new on the scene. While, Ebay and the like have the metrics, the enormous range in prices for like items renders them useless. In short, We aren’t able to speak to these, nor will the surviving ventures be able to do so for a time.
But the sharp difference in demand between the other two: 1) garage sales and 2) shops serves to clarify demand’s import in pricing. First consider garage sales. The number of shoppers looking for the type and size of resale apparel offered (demand) is typically less than a hundred–generally far less. Contrast this with a typical consignment shop typically showing apparel to 5000 or more shoppers over a period of 90 days.
It explains why guides for garage sale pricing suggest giveaway prices for women’s apparel at $1-3 per item or 10% of original price, while guides for women’s consignment pricing range into the hundreds of dollars and 25-40% or original price.
It explains why the highest prices at which items will sell invariably differs from one outlet type to another, and why a set of prices can only be pegged to one type of outlet and attendant demand. It explains why women’s apparel and accessory prices in NextGen’s Pricing System, are calibrated specifically to women’s consignment shops based on years of sales statistics across multiple stores.
NextGen Resale and Consignment is a service bureau providing know-how, software and support to owners of resale and consignment shops. NextGen has grown from supporting stores selling used children’s apparel, toys and equipment to stores selling used juniors and women’s apparel and accessories.
NextGen clients buy outright and accept items on consignment. They sell new merchandise and used. All are brick and mortar operations; a small number sell on-line. Some have multiple shops, most only one. All require responsive how-to support as well as technical support. All utilize NextGen’s pricing system to keep prices current, and save time spent on buying, pricing and related training. All welcome as many features as they can get.
Initially, NextGen contracted with one of the few POS vendors supporting both consignment and buy-outright operations to customize its offering by building in NextGen’s buying/pricing application. In the end, the vendor was unable to produce, and NextGen had to forego its investment and renew its search—this time in a more diligent fashion. After an exhaustive and systematic review, we found Liberty 4, by Resaleworld. It was, is, and remains the only software that satisfies the essential demands of our varied clients. Specifically,
- First and foremost, capable of seamlessly delivering our off-line and on-line women’s, children’s and juniors pricing system
- Full-featured consignment as well as buy-outright modes—clients are increasingly using both
- Fully supports the acquisition and sale of new merchandise as well as used
- Supports on-line as well as off-line sales
- Available for purchase and installation, or on a monthly subscription basis as an internet service
- Supports multiple locations via a private network or the cloud.
- True ‘on-call’ technical support—not the as-available’ technical support characteristic of the little POS vendors that dot the resale & consignment software landscape.
- Lots of features—the most of any POS software in the resale industry