NextGen “Right” Resale Price Determinants
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.