A common question from Poshmark newbies and others looking to increase their sales: “How do you decide on pricing?” There are several different pricing strategies that I have tried. All have positives and negatives. I will review a few with you. Just remember… this is your item and you do not have to sell it for a price that you aren’t comfortable with!
Before we get into that, I must first set the stage by answering the question I get most: “How long does it take for a listing to sell?” That depends directly on pricing and demand. If you are selling individual, unique item (i.e. not wholesale, or something you have multiples of) you have to find the exact right buyer- It can take time, but he/she is out there. I have sold listings the day I posted them, and even just last week I sold a couple of things that were my first listings posted over 8 months ago! Be patient, things will sell. Consider the season too. Right now, people are gearing up for Spring- so it is unlikely that anyone is looking to invest in a North Face coat (they probably bought one last September).
Note to Newbies: Everyone asks me “When/How do I get my first sale?” It took me almost 2 weeks to get my first sale… then slowly but surely the sale came in. Don’t get discouraged- but I will recommend that you to accept the first couple of offers you receive! Just as long as you can “afford” to accept the price (I’m NOT suggesting you should accept $15 on a Tiffany bracelet!). A potential buyer wants to know that your closet is legit by seeing that you have a selling history. Rarely does anyone want to be your first sale, so sometimes it’s worth it to sacrifice a few dollars to gain buyer confidence!
Let’s get started on Pricing!
1. Always determine your lowest price. Make a mental note, keep a notebook, however you want- but know the lowest price you will accept.
2. Determine market value pricing. You can search similar previously sold items on the Poshmark app… do an item search and under “availability” choose “SOLD”. Here you can see what your item (or similar, has historically sold for)… also check sites like eBay for the going price.
1. Start off High: Price it higher than you expect to get for it so you can build “likes.” Once you get a good following, entice your watchers to purchase by lowering the price (must be by at least 10% for an alert will go out). In my experience, people used to purchase right away- but more recently, I tend to receive a lower “offer” right after I drop the price. Eye-catching cover shots help to get likes!
2. Start Low: this is the best way to get the quick sale. My advice would be to put “price firm” on the listing but please know that you will still get lower offers.
3. “Coming Soon”: I have tried this approach… mark as “not for sale” or price at $1000+ with a “Coming Soon” in the listing title … It can create urgency if a buyer really likes it or wants it. The excitement can get likes or offers. Leave it in “Coming Soon” status until you get a lot of “likes”. Beware of overkill if you do too many. Also, be prepared for people who do not bother to read your listing and post “YOU WANT HOW MUCH FOR THAT????” Helpful Hint: DO NOT price the item at $0 (this automatically marks as “Not For Sale”) I learned the hard way that when you change to a real dollar value- mark down/price drops will not work.
4. Realistic Pricing: Price it at what you really want and accept offers. Straight forward, no haggle, but you will still get offers.
I honestly do a mixture of all of the above. It just depends on the buying trend, season, or availability/uniqueness of the item. I do not feel that one works better than the other, but try them out and see which style you are most comfortable with.
Another common practice is advertising a standard “Bundle” discount policy. I do not do this because I cannot discount all of my listing the same rate and some bundles I can discount for less.
What should you do if you see a closet with ridiculous pricing? Should you let them know??? NO. No. no.
Let that Posher do their thing! If you really want to purchase their item- ask them first if they accept offers (Do not throw out a number in the comments of their listing! This can ruin their listing if they respond) then make a reasonable offer of 10-20% less than the listed price. If they decline or if their counter offer is still too high for you… just politely decline, “like” the item, and sit back and wait for the price to drop. If it truly is marked too high- it will eventually be lowered. I have had this happen- I will decline an early offer, only to sell to the same person at the price they wanted it for (or LESS) because I had an unrealistic expectation for my item. Talk about a humbling (and funny) moment!!
Things to remember:
- Your first offer is usually going to be your best offer (except for $5 ‘lowballs’).
- Remember your value- you do not have to sell lower than you want. Period. Don’t let anyone pressure you into it.
- Everyone always wants to feel like they got a deal.
- Overall, regardless of the strategy you try, my final advice would be to ALWAYS start with a price that you would accept an offer of 10% less.
What helps you determine how to price your closet? What strategy works for you?
Do you enjoy reading posts from the Gray Asparagus? Let me know by subscribing! If you are on a computer- sign up is to the right. If you are on a mobile device- scroll down to the bottom!