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Getting your pricing strategy right is one of the most impactful decisions you’ll make in your resale business. Whether you run a consignment store, resale boutique, or secondhand shop, smart pricing helps you stay competitive, attract more consignors, and increase your profits. In this blog, we’ll walk you through practical tips for pricing consignment items effectively—so you can drive sales and keep your store thriving.
Why Pricing Matters in Consignment
Consignment pricing is different from traditional retail. You’re not just trying to sell an item—you’re also working on behalf of a consignor who expects a fair payout. The right price balances market demand, item condition, brand value, and your store’s profit margin.
Overpricing can cause items to sit on shelves, eating up space and reducing your inventory turnover. Underpricing, on the other hand, leaves money on the table for both you and the consignor.
5 Tips to Price Consignment Inventory Properly
1. Research Comparable Items
Start by researching what similar secondhand or resale items are selling for online and in other consignment stores. Platforms like eBay, Poshmark, and Facebook Marketplace can offer clues about fair market value. Pay close attention to:
- Brand names and designer labels
- Condition and wear
- Seasonality
- Size and color popularity
Knowing the going rate helps you set a competitive yet profitable price. Be sure to look at sold listings, not just asking prices.
*Pro tip: SimpleConsign’s newest innovation, AI Automated Item Entry, streamlines the pricing process from start to finish. Simply snap one or two photos of an item using your phone—our AI takes it from there, identifying the item and pulling in detailed information, including pricing comparisons from eBay and other relevant sources when available.
2. Use Consignment Software with Pricing Tools
If you’re still using spreadsheets or handwritten tags, it’s time to upgrade. Consignment POS systems like SimpleConsign offer pricing suggestions, historical data, and automation features that simplify the pricing process. SimpleConsign’s Price Book helps ensure consistency, sets clear expectations with consignors, and streamlines pricing across your team.
With a robust consignment software solution, you can:
- Quickly compare past sales data
- Adjust pricing rules by category or brand
- Apply automatic markdowns based on aging inventory
- Track your profit margins per item
- Ensure pricing consistency in and across stores
This ensures consistency across your resale inventory and helps you stay on top of what sells—and what doesn’t.
3. Factor in Commission Rates
Your pricing must account for your consignment commission split. Whether you offer a 60/40 or 50/50 split, make sure the final price delivers a profit for both parties.
For example, if a consignor wants $30 from an item and you take 40%, the item must be priced around $50 to make it work. Don’t forget to factor in overhead costs and transaction fees when setting price minimums.
*Pro tip: SimpleConsign’s Split by Category feature lets you offer better payout splits on higher-value items. It’s a great way to incentivize consignors to bring in premium goods—giving them a larger share as item prices increase and helping you stock more valuable inventory.
4. Price Based on Brand, Condition & Demand
Different consignment items require different pricing strategies:
- Designer brands (like Chanel or Louis Vuitton) often hold their value longer and can be priced higher.
- Fast fashion brands may require steeper discounts to sell quickly.
- Mint condition or new-with-tags (NWT) items should fetch top dollar.
- High-demand categories like outdoor gear, vintage denim, or maternity wear can often be marked up slightly.
*Pro tip: Use a custom SimpleConsign report to track how much of your inventory sells at full price versus markdowns. This can reveal how effective your pricing strategy is—and ideally, most items should be selling at full price. Additionally, the sales by category report helps assess demand for different types of goods.
5. Use a Tiered Markdown Strategy
Consider a smart markdown schedule that keeps inventory moving without slashing prices too quickly. Many consignment shops use a time-based markdown system, like:
0–30 days: Full price
31–60 days: 20% off
61–90 days: 40% off
91+ days: Final clearance
This approach encourages early purchases and rewards bargain hunters later in the lifecycle, all while protecting your margins.
Wrapping Up: Smarter Pricing, Better Profits
Pricing consignment inventory is both an art and a science. By using the right consignment POS software, researching market trends, and applying tiered pricing strategies, you can ensure that your resale business remains profitable and competitive.
