Pricing Women’s Resale Clothing & Footwear
The most Frequently asked questions we hear from resale business owners considering the use of one of the NextGen pricing tools are “How does NextGen arrive at the Prices suggested? Are they based on known retail prices and/or resale prices for like items (item type and brand)? Is demand considered? Is condition factored in? All good & logical questions and “All of the Above” is NextGen’s short and ready answer.
Most of NextGen’s “Right Price” suggestions are statistically based on the sales experience of resale stores from coast to coast participating in the pricing system’s development and continued operation.
Retail prices are principally used as a check on the “right” resale prices so derived. Retail prices serve as the basis for suggested resale prices only in the absence of reliable data on the category and brand in NextGen’s database. In so doing, NextGen applies resale/retail multipliers specific to the subject category and brand level. Some categories and brands hold their value better than others. The same holds true in the case of “vintage” apparel. While widely known, high-level brands tend to hold value, most do not.
Resale prices from online sources are used to derive “right” resale prices only in the absence of both online retail and resale prices.
As a rule, the range in prices found for categories with high-price designer labels are too wide to arrive at suggested prices. The only choice is to price the individual item in question based on the retail or resale price of that item or close match found online. NextGen’s efficacious [Checkit] tool is designed to do this.
Both Liberty by Resaleword and SimpleConsign by Traxia, the two leading point of sale (POS) systems in the resale and consignment industry, now count store-centric pricing guides, among their many features. These store-centered Pricing Guides, custom built by individual stores, greatly reduce the time spent pricing items for resale. Pricing is a voracious time and money eater. They also insure more consistent and thus trusted prices, a boon to sales.
At the same, Resaleworld has been and Traxia will soon be offering NextGen’s pricing guides built on the pricing records of multiple stores throughout North America. Why both?
Store centered systems can work for stores that have the time build and maintain their pricing guides, and that have a sufficient base of reasonably current and profitable sales upon which to build. However, many, if not most, stores do not. Their pricing data is too thin or is colored by poor pricing practices, e.g. automatic markdowns and employee pricing, shown to result in under-pricing and inconsistent pricing respectfully.
While the vast majority of stores using the NextGen Pricing system do so for life, a small number opt to use the built-in Pricing Guide to build their own once they’ve entered a sufficient base of NextGen Prices upon which to build.
Item information (brands, descriptions, prices, and sizes) along with consignor contact information is exported from NextGen’s Square Buying Portal and imported into Square. Item sales and related consignor and seller costs/payments (cash or trade) are then managed within Square.
The Item information may also imported into Dymo for tag printing purposes.