How to price luxury pre-owned items (by category)?

April 24, 2024

Pricing pre-owned luxury items just right is key to making sales. Professional resellers need to know how to set prices effectively for different types of items, which requires different types of expertise to estimate their true value, which we know can be a tough task.  In this guide we will break down the pricing process for luxury pre-owned items by category – assisting resellers in maximizing the value of their items for profitable resale while also advising on setting the fair price for buyers  

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Preliminary Research

Market Research 

Before setting your item's final price, whatever the product category it is, conducting some research is essential, especially if you are just starting your resale business. We suggest starting by checking the retail price and then comparing it to the prices on the resale market across marketplaces such as Vestiaire Collective, Vinted, eBay, The Vintage Bar, Joli Closet, Grailed. This comparison provides insight into how other businesses potentially price items and can help resellers in determining a competitive price point for their business. 

It seems simple but by understanding the current resale market dynamics, resellers can make informed decisions and set competitive prices. For a global overview of the trends, challenges, and statistics shaping the fashion resale industry for secondhand market, we invite you to explore the following article:  Overview of the fashion resale industry for secondhand businesses (Market trends, challenges and statistics)

Consideration of Additional Costs

Beyond the purchase price, sellers must factor in additional costs associated with selling luxury pre-owned items. This includes expenses such as authentication fees, refurbishment costs (depending on the item condition), and platform fees – for detailed insights into marketplaces’ selling fees, we encourage you to read the following article: Guide for Fashion Resale Marketplaces Selling Fees and Services for Fashion Resale Businesses

Product Condition and Authentication

The condition of luxury pre-owned items significantly influences their value. Sellers should be transparent about any flaws or wear and tear, providing detailed descriptions and images to manage buyer expectations. 

Moreover, authentication is paramount in the luxury resale market. as ensuring authenticity certificate sets reseller professionalism and credibility, enhances buyer confidence and may justify premium pricing for some exclusive pieces. We recommend referring to the following article if you want more insights into pre-loved item authentication processes by marketplaces: Authentication services : How Reselling Platforms Verify Luxury Items authenticity ?
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Tips on Pricing Items by Category:

How to price secondhand clothing?

In the clothing category, sellers must pinpoint top-selling categories and price items strategically, considering factors like brand reputation, condition, and current market demand – Resellers can begin by comparing the condition, brand, style, and seasonality of their clothes to those available online or in consignment stores or wholesalers like TheBrandCollector or LePrix. This helps gauge demand and competition for their clothes.

Condition is a critical factor in determining price, particularly in clothing category; new-with-tags items typically fetch higher prices than gently used ones or those showing signs of wear like stains or tears. Finding the right balance between pricing too high and too low is essential; aim for 25% to 40% of the original retail value, depending on condition and demand. Flexibility is key, as resellers should be open to negotiation with buyers making reasonable offers. Ultimately, the goal is to sell clothes rather than retain them.

How to Price Pre-loved Leather Goods (Handbags)? 

Luxury handbags are the most resale product category on secondhand platforms but require careful pricing considerations. Sellers should especially consider brand prestige, scarcity, and authentication when setting handbags prices. Iconic handbag models like Hermès Birkin and Kelly, for example, can command prices similar to retail or even higher due to their rarity and difficulty in acquiring, even when brand new.

Other iconic items like the Lady Dior bag or Classic Chanel Flap Bag  can double in price for collectors pieces. Customers often seek exclusive, limited-edition, sold-out, discontinued, or collaborative items in designer resale — such items not only hold their value but may appreciate over time, potentially becoming collectibles.

How to Price Pre-owned Jewelry products? 

To evaluate designer jewelry value many specific factors are taken into account, including brand prestige, materials used, stylistic period, provenance, gemstone quality, condition. Factors such as having original box and papers, rare materials, and exceptional craftsmanship can significantly enhance a piece's value. 

While jewelry is not  the most frequently resold category compared to other categories, there are plenty of appropriate platforms for resale them. Resellers have the option to utilize luxury secondhand marketplaces like Vestiaire Collective, The Vintage Bar, Joli Closet, which boast extensive collections of authentic jewelry. Alternatively, they can also opt for specialized luxury jewelry resale marketplaces like Castafiore for a focused audience and tailored selling experience.

How to price watches? 

To begin the valuation process, the first thing to do is identify your watch's brand and reference number. Brands like Rolex, Audemars Piguet, and Panerai often provide sequential serial numbering systems that aid in dating, while others may require contacting the manufacturer for an "archive extract" to establish its production date and model details. 

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What’s next? 

Inventory management with Oly 

Once you've priced your luxury pre-owned items effectively and listed them on various marketplaces, managing your inventory becomes crucial for successful sales. This is where Oly can be your ultimate tool.

Oly is a comprehensive inventory management platform designed specifically for resellers in the luxury pre-owned market. With Oly, you can effortlessly keep track of your product listings across multiple marketplaces, ensuring consistency in pricing and availability.

Key Features of Oly to help resellers in their fashion resale business: 

  1. Centralized Inventory Management: Oly allows resellers to centralize all their product listings from different marketplaces in one convenient dashboard. This streamlines the process of inventory management and reduces the risk of overselling or underselling.

  1. Real-Time Updates: Resellers stay up-to-date with real-time updates on product availability, pricing changes, and customer inquiries across all listings – ensuring that resellers never miss out on potential sales opportunities.

  1. Seamless Integration: Oly seamlessly integrates with popular marketplace platforms like Vestiaire Collective, Vinted, eBay, The Vintage Bar, Joli Closet, Grailed allowing you to manage your inventory efficiently across all channels.
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