Consignments shop pricing is kind of my secret sauce. Owning a large consignment shop for nearly twenty years, I price consigned items daily. I can do it in my sleep, but that’s another story. I realize, however, that a lot of folks don’t understand how consignment shops set prices. So guess what we are talking about today? LOL
Consignment Shops Set Prices Based on Maker and Condition
Your idea and may idea of what pristine condition looks like may have diverged in the wood, as they say. Every consignment shop has their own standards for condition. At Consignments Ltd., for example, we do not even accept “project furniture,” but we will accept servicable, good, better and pristine. And we will set price according to this scale. As you might have guessed, the price goes up with the quality of the condition.
The other big driver of price is maker. “Better” makers bring better prices. A Henkel Harris sleigh bed will be more expensive than one made by Broyhill. They both have their buyers, but the former, being more expensive at the start, will be more expensive on consignment.
Consignment Shops Set Prices Based on Desirability
Something could be really valuable in theory, but if there are no actual buyers, what’s the point? A stunning, Stuben, punch bowl set may require a bank loan to purchase, but who’s out there serving punch these days? If something will have a lot of interest, consignment shops will generally price it higher. In other words, demand drives the price.
Consignment Shops Use Online Tools and Databases To Help Set Prices
Ebay and other online sites like Charish and Etsy are great resources for setting prices at consignment shops. Each has their own type of customer. And those customers are, in most cases, worldwide. Theses sites can provide a guide in setting prices, but as I like to say, “You can ask anything for something, but can you get it?” When I use these sites I like to dig in to sold listings, because that is much more telling when it comes to pricing.
Store databases, like the one we have at Consignments Ltd., are much more helpful when it comes to pricing. At our shop we have 20 years of data that we can rely on to help us set prices. And because we sell 93% of what comes into the shop, you can guess that this data is pretty much spot on.
Local Market is The Biggest Factor
Those databases we just spoke of are more accurate for one big reason: they reflect the local market. It doesn’t matter what it sells for in L.A. if you’re sitting in the middle of Kansas. Local knowledge is key to how good consignment shops set prices. Always has been. Always will be.
For more on consigning your items, check out my previous blogs: How Consignment Works and Best Reasons to Consign Your Stuff.
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