Many clients will ask how stores determine the pricing of items brought in for consignment. This is a great question and one that every client should ask when they bring in items to a store.
Consignment stores have two clients to please; the consigner and the purchaser. When a client brings in items for the store to sell, they want to make more than what they would at a garage sale. A quality consignment shop looks at a number of factors when pricing items. Is the item in ‘new’ condition? Is it a current style? What does the item sell for when it is on sale? Just because an item has the tags on it does not mean it will demand a higher price especially if it is an older item (more than two seasons old). Also, if the item sells at a dramatically reduced price when on sale, a consignment shop will usually need to take that into consideration. A dress that normally sells for $200 but tends to go for $75 when on sale will need to be priced accordingly and may only have a resale value of $40. Unfortunately discount stores can also affect pricing. If some of the current discounters (think Marshalls or Ross) are carrying items, the consignment owner must take that into consideration. Lastly eBay prices should be considered. A quality shop will generally price items at 40 to 75 percent below what the item is valued at current market pricing or will be on target with current ‘used item’ pricing on eBay.
As a resale purchaser, or few things to keep in mind. An item may be priced lower at a thrift store or yard sale or even online. What you sacrifice is personalized service, a clean environment, items sized, easy to find and in good condition, the ability to see, feel and try on the item, and the opportunity to make a friend with the owner! Repeat customers may often get a phone call or email when the much sought after item comes in the store. Remember shop wisely and shop local.
For more information, please call Lisa Drago with Just Between Us at 661-257-4200.