The market around selling used items has exploded over the last few years. The real key to finding success is to find the right asking price for your items. Learn how to do that.
This isn’t always as easy as it sounds. Here are the four steps you should follow to determine how much to ask for your items.
1Find the Retail Price
As with most things, you should start your research for this online. Just start with a search for the items you are selling. The more specific you can be with the model number, etc the better.
If possible, you should find the retail price of your item, but you should also check the reselling sites to see what others are asking for their used items.
As a ball park figure, you should start thinking about 50% - 75% of the retail cost.
2See if There Is a Market
The next step is to be sure there is a market for the items you want to sell. Sometimes, people just may not be looking for the thing you want to sell. Ebay is a great place for this. If nobody is bidding on similar items, you may have trouble selling them.
However, you may also find that your items are worth more because they are in a hot market. An example of this might be an old playbill from a play featuring an actor who just won an Oscar. A set of china that is no longer in production is another example.
Depending on the market of your items, you may have to raise or lower your price.
3Determine Your Break Even Level
This point only applies if you are starting a reselling business and you are buying items for the purpose of selling them.
When you buy items to sell, you have to figure out how much you have to charge to at least break even on the item. This should include the price you paid in addition to shipping, etc.
If you find that you can’t sell the item for a profit, you are usually better off holding on to it for the time being.
4Set Your Price High At the Start
People like to negotiate and they like to feel like they got a great deal. Because of this, it’s a good idea to start your asking price a little higher than you would like to receive for what you are selling.
This will allow you to negotiate with the person who wants to buy your stuff while making sure you are still making a profit.
Of course, you have to keep in mind the value and market for the item when you set the price. Also remember your break even point so you don’t get negotiated down too far.
5Determine How Quickly You Want to Sell It
This is an important point to remember. If you are selling items to make a profit, it can sometimes take a while for the right buyer to find your items.
However, if you are in a position where you are having financial problems and you need money “now” you will probably have to reduce your asking price. You may be able to initially price your item according to these tips, but be prepared to offer quick and steep reductions if there isn’t any interest.
6Pricing Used Items
The resale market is a hot one if you can find the “sweet spot” for your pricing. Find out how much your item is worth, research the market for it, identify how much you have to charge to break even and then price it a little higher than that. If you need money quickly, you may have to reduce your price if the item isn’t selling.
What Do You Think?
Do you have other tips about pricing used items that might help someone else?
