As a seller, the continual struggle of determining prices on items is an absolute brain fuck because it’s one of the hardest decisions to make. One end of the spectrum you don’t want to place your price too high because people will get turned off and not buy… on the other spectrum when you place prices too low, people will eat it up in seconds and you would have nothing else to sell. So finding the right balance of pricing is one of the most under-rated essential skills that is needed to run a successful re-selling business. Keep in mind with re-sellers there isn’t a clear cut price with 90% of our items. Unlike retailers, the pricing is very clear cut and usually they have the flexibility to work downwards from the suggested retail price. With re-sellers, there are a lot of variable changes every day. Prices can go up or down depending on the mood of buyers at that specific time and we adjust to it on a continual basis. What makes it even more difficult is when you have items that are not readily available and don’t usually have a historical price history as a benchmark.
These Nike Court Fragment x Supreme is a prime example. I think I paid roughly $200-$250 per pair couple weeks ago but do understand this was the first time I came across a pair in the last year! What does this mean…it means I could sell them for $300 and make $50 and make someone happy, but do I really want to do that? The reason why I’m leaning towards a no is because if I sell it today, I have no idea when I’ll ever get a pair again! Could be tomorrow, could be a few months, but by then if I want to buy another pair, it could cost me double the price…who knows? Speaking from experience, this is exactly what happened because I recall passing up on this pair for just $100-$150 1-2 years ago and it took me exactly that long to find them this year and I ended up paying close to double the price to get them. So in scenarios like these, it makes more sense to price them at a slight premium just so it’s available for anyone that really wants it more than others to pay the price. Pricing at a premium also helps justify the reason for me to sell because at the very least I know I’m making a bit more for my effort and time. Obviously I can’t go into a business with the same mentality for ALL products because as a business you need continual cash flow for new products and you need to sell on a continual basis to maintain buying power. Last but not least, you also have to maintain a healthy inventory. You don’t want customers coming to your website/store with it being empty with no products all the time. Understand that customers have variable budget and cash constraints and everyone has a different willingness to pay price in their mind. Some are willing to pay more than others for the same item, but you don’t know when that buyer will come along. So the big decision to find the best optimal point to sell at an optimal price and at the same time maintain a healthy cash flow for your business is in my opinion one of the most difficult tasks for sellers that NO ONE EVER TALKS ABOUT!