In the luxury resale market, discounts are a double-edged sword.Yes, they can create urgency and move slow stock — but they can also quietly eat away at your margins and weaken your brand’s positioning. Unlike fast fashion, where markdowns are the norm, in luxury resale every percentage point lost in price is also a percentage point lost in perceived exclusivity.
Luxury buyers don’t shop for bargains — they shop for meaning, heritage, and prestige. The very act of paying full price is part of the experience. When a Chanel Boy Bag, Hermès Kelly, or Dior Book Tote repeatedly shows up on sale, it undermines the aura of scarcity that fuels desire.
Instead of driving urgency, discounts risk training your audience to “wait it out” — turning premium inventory into commodities. Over time, this can devalue not just a single piece but your entire positioning as a trusted curator of rare, high-quality finds.
Price in the luxury world is more than a number — it’s a symbol.
A higher price tag signals quality, rarity, and timelessness. It reassures buyers they’re investing in something that holds value. On the flip side, a deep discount can unconsciously suggest:
In luxury resale, maintaining prestige is just as important as making the sale — and pricing is a cornerstone of that story.
Rather than reacting to slow weeks with panic markdowns, build a disciplined approach to pricing:
1. Time Your Sales Strategically
Align markdowns with moments of heightened demand — fashion week buzz, holiday gifting seasons, or just before summer travel peaks. This way, discounts feel intentional, not desperate.
2. Set a Floor Price
Before you ever list an item, decide the lowest acceptable profit margin. This prevents emotional decision-making when sales are slow and ensures you never undercut yourself.
3. Use Market Data
Benchmark your listings against real-time resale data. If you see competitors holding firm on Chanel classic flaps, resist the urge to cut — scarcity supports the market. Conversely, if an emerging brand is trending, you may not need markdowns at all.
4. Leverage Storytelling Instead of Discounting
Highlight provenance, craftsmanship, and rarity in your descriptions. A strong narrative can justify the full price far more effectively than slashing numbers.
The good news: you don’t have to manage all of this manually. Platforms like Oly give sellers a digital edge by helping you:
At the end of the day, protecting your margins isn’t just about profitability — it’s about reputation. Every markdown is a message. Either it tells buyers your curation is rare, timeless, and worth the price, or it signals that your inventory is negotiable.
In luxury resale, the long-term play is clear: hold firm, use data, and protect the prestige that keeps customers coming back.
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