I am an avid lover of stats, figures, and tracking things related to my Poshmark Closet. It should come as no surprise that I am thrilled about the Closet Value amount added to our Poshmark stats!
If you haven’t noticed this yet, go into “My Posh Stats” and right below your available listings you will see a figure. Before you can really use this amount, you have to determine if it’s accurate. This Closet Value number is the sum of all of your available listings.
Make sure it’s Accurate:
- Sort your closet by available listings.
- Scroll through to make sure these items are actually available real inventory. I did this and found deep in the depths of my closet, older listings that I had bundled long ago (back when we had to create bundles for customers) and listings I had added “SOLD” to the title but never marked as “Not For Sale.”
- Mark all these unavailable listings as “Not For Sale.”
- Some listings, (like party hosting posts) that we give an amount like $99999 don’t seem to affect closet value but I still marked all of my advertisement listings as “Not For Sale.” If I need to price drop a listing to send out an alert- I will just mark as available before i do.
Once you clean up your closet, you are ready to use the new feature! But how?
Ways to Use Closet Value
There is a lot of buzz among resellers (not only Poshmark related but other platforms as well) about “adding value” to your closet. Very timely that this stat has been added! If you don’t know what this means, it is a simple yet useful concept. Instead of looking at your available listings and saying “Yay! I have 600 available listings!” You add up the “value” or potential selling price and know “If I sold everything today I would have $35,000 of value in my closet.”
Then as you list new items you look at it as potential dollars. Instead of a pair of Frye boots listed you have added $100 in closet value (or whatever price you list them). Make sense? As you list, you can make dollar goals instead of listing goals… when you search for inventory you can add value and focus on quality of listings (sometimes that translates to higher end) to increase overall profitability. You might find yourself starting to buy fewer items at greater value with this mentality. Genius right? It is a great, fresh way to look at your business.
So, is that what I am doing and what this is about? No.
What is your Focus…?
My focus changes often. This doesn’t mean that I am fickle in my goals. It means, I focus on something that I need to work on and improve. To do this, I experiment and find the best way (for me), make it a standard, and then move on to the next challenge.
As most of you know, my MAIN focus right now is being consistent with daily listing and sharing. I explained my theories in How to Full Throttle Your Poshmark Closet. I feel I have always searched for quality (maybe not viewing as dollars vs listings) but my perception of what quality is has certainly changed. With time and experience, I have a better grasp of what will sell for me and for how much. No matter how long you have been doing this, it’s a continual learning process, and I no doubt still have much more to learn.
With all that said, the Closet Value amount is a big deal to me and let me tell you how I am viewing this statistic and using it to help reach my goals.
Quantity on Hand and Sell Through
If you are selling jewelry and have 20 necklaces and on average you are selling 5 a week, basic math will tell you that you will sell out in a month. If you place orders from your supplier once every 2 months, you probably know how many you should order to have enough and so you don’t over buy or sell out.
This is how I am looking at Closet Value.
I know the two don’t seem related but think about your monthly dollar goal. You may have it posted above your desk or written out along the top of your planner. How much is it?
For the sake of this post, let’s say we all want to do $3000 in gross sales for February. Your gross sales figure is the cumulative amount that your items sold for or will sell for before subtracting platform fees, cost of goods, etc.
Well, how much value is in your closet?
If you have 100 listings and your total closet value is $2500… how do you plan on making $3000 in a month?
Your total closet value has to be able to support your goals.
In reality, you will need to factor in bundle discounts, price drops, and offers accepted. Think big picture too… My current closet value is a little over $13,000. If my goal is also to sell $3000 a month, much like those necklaces, I barely have enough to sustain 4 months.
How much do I want to sell this year? If I look at my yearly goal, how much value should I be adding each month to achieve it? I can’t sell what I don’t have listed. My Closet Value has to be there to support my goals.
Other Ways to Look at It
If you are not running your closet as a business and do not fill your closet with inventory on a consistent basis, then Closet Value can give you a little more insight into a realistic expectation on how much extra cash you can be making.
Cleaning out your closet for a splurge
If you are making some extra money for your summer trip to the beach… how much are you wanting to make? If your goal is $500 in sales, Closet Value can help you know how much to list to help you get to that goal!
In a perfect world we would sell out our closets every month. But as we all know, or some are catching on, selling out of inventory can be rare if not impossible for the majority. While i am a firm believer in “there is a buyer for everything” you may never cross paths with the perfect buyer. This is true for all retailers and stores. If it wasn’t so, there would be no clearance racks in the back of J. Crew, and no T.J. Maxx selling overstock of your favorite brands. Even Starbucks puts seasonally stuff on sale after the holiday because no one bought it at full price. Merchandise buyers don’t always buy correct amounts and fashion projections are not always correct. It just comes with the territory and is factored into their business plan.
Overall, Closet Value is one of the best additions to the Poshmark platform in quite some time. Regardless of how you intend to use it, it provides a much-needed reality check to help us hit our goals!
How will you be using the Closet Value amount?