If you’re wondering how to price your merchandise, today we are going to look at the 4 types of pricing so you can decide what makes the most sense for you.

Sell Low and Fast then Reup - This is a great game plan for relatively inexpensive items. Let’s say the retail price is $30 and you scored it for $4.49. You can price it at $9.99 and blow it out. For those who think “There’s no profit in a $5 Markup!”, you’re surprisingly wrong. In fact, I made a chart to demonstrate the profit margin on a $5 markup:

Wait for other sellers to sell out of theirs, then sell at a higher price - this works best for items that are on the rare side. For example, discontinued body care, limited edition Michael Kors, Betsey Johnson specific-collections, etc. . The more rare it becomes the more money you can get for it. 

I have often told this story but I’ll tell it again. Forever ago (maybe 2008?) we got tons of cases of Victorias Secret Blossoming Romance boxed perfume. I don’t remember what we paid per piece, but it was super cheap, maybe $2.99 or so each. 

Since VS had just mass-liquidated this discontinued item they were all over the internet at $6.99. Fast forward to 2019 and those same products are so long-discontinued that a single perfume sells for $70 or more (I've even seen them sell for $99 and higher!). If we would have waited to sell those cases we would have made OVER $100,000 off the cases. But, that would have also meant storing those cases for over 10 years. 

On the other hand, making $100,000 profit in 10 years just by storing 100 cases is better profit than the stock market with way less risk! BUT, if you choose to go this route, you do run the risk of the item being re-liquidated. For example, Bath and Body Works has liquidated items, then brought them back, then liquidated them again. So let’s say your goal is to wait on selling 10 cases of a limited edition body mist. Let’s say you paid only $5 per piece in 2018. You may be very disappointed to discover that in 2021 the same item is again liquidated, but this time the liquidation price is only $3.99. 

This pricing method is genuinely a gamble. A lot can go wrong. Back when I was a stay at home seller, my basement flooded, which is where everything was stored. THANK GOD that my shelving was tall enough that no inventory was harmed but I did lose a LOT of items that were in cardboard boxes on the floor. Additionally, one of our warehouse employees, Rob, has lost literally everything he owned in a fire that occurred a long time ago. Things do happen in life. If you do plan to store things you may want to consider an insurance policy because Home Owners / Renters does NOT cover inventory. In fact, it doesn’t even cover much valuables in general unless you add it on.

Sell at a mid-range price but win sales by being BETTER. Offering better photos, better descriptions, better customer service, faster shipping, better packaging, etc - This is my personal preference. BigBrandWholesale.com is not the cheapest place to buy BUT we:

• Try to weed out damage
• Try to remove all ink tags and sensors
• Ship for Free
• Ship Same Day
• Free Insurance
• Offer 365-Days-a-Year Customer Service that is available to help you 16 hours a day
• Video all merchandise so you can SEE what you’re buying
• Pack merchandise well so it arrives with very, very few wrinkles

Is that worth an extra 50-cents per item? Most people would say “YES!!!” without hesitation. And, for the people who are looking ONLY for the lowest price, they can order through China and deal with the overwhelming headache and downtime that comes along with the savings. My point is, you do not need to compete in “The race to the bottom” by having the lowest price on everything. 

Sell High, expect few sales, but maximize profit with each sale - I know plenty of people who prefer this method. And, I can honestly tell you that they don’t make enough online to consider selling a “career”; it’s more of a pastime hobby for them that generates some money every week. BUT when they do sell an item they do make a lot of profit (500% or more). 

IN CLOSING, which form of pricing is best for you?  Tomorrow we will be discussing even more details!