The global luxury market is booming, and 2022’s designer resale is one of the world’s hottest retail trends. In fact, Bain & Co. recently estimated that the secondhand luxury market reached $33 billion in 2021, primarily driven by increased supply and demand of pre-owned luxury items during the pandemic.

Sales of designer resale items have soared to new heights and top luxury brands have noticed. As a response, they’ve raised retail prices causing customers to turn to pre-owned to find the best deals on the designer items they’re seeking. With a rise in consumer desire to shop sustainably and own unique, high-quality designer pieces for less, luxury resale has completely changed the way the world shops.

How to Determine the Value of Items

The Classic Flap is a timeless essential, Birkins and Kellys are ultimate status symbol, and the Neverfull is one of the world’s most identifiable bags, but what determines the price on the resale market?

While many people are willing to pay top dollar to snag the designer item of their dreams, you must also consider that most people shop the resale market to score the best prices on the world’s most popular luxury brands… and you’re selling pre-owned goods.

Tips on Pricing Items for Resale

- Find Out What Your Customers Want

The first step in the pricing process is to figure out what customers want. Whether you’re interacting on social media, sending email marketing, asking directly in store or doing research on keywords and trending searches, when you can supply customers with what they want, both parties benefit.

- Market Research

In any field, general market research is important. In the pre-owned luxury space, it gives you an idea of pricing and availability. We recommend first checking the retail price. Then compare that price to the prices you see on the resale market. This will give you an understanding of how other businesses are potentially pricing items and helps you decide on a price for your business to attract customers while remaining competitive.

Luckily, here at LePrix, we do the heavy lifting. Our team of experts use data analytics and market trends to offer suggested resale pricing and suggested margins on all items. Your dedicated Account Manager is also available to help you with any additional questions you have around market research.

- Source from Trusted Supplier

Authenticity is of the upmost importance here at LePrix. We work with the world’s leading independent authenticators like Entrupy and Real Authentication to offer a worry free service.

You may be able to find a deal on pre-loved designer items scouring the internet and local shops but authenticity is not guaranteed. At LePrix, we focus on ensuring all items are authenticated so you can focus on shopping and bidding for your business.

Pricing Factors to Consider

Once you’ve narrowed down your list and are ready to stock up on the most-wanted items for your business, there are still various factors to be mindful of when it comes to pricing.

- Understanding Brand Power

The brands with worldwide name recognition are the most sought after, adding to the strength of their resale value. Additionally, you should also consider the make and model of the brand’s most popular items. While the majority knows of the Classic Flap, not many people are searching for the Strass Bonbons tote bag.

- The Materials

While many brands use coated canvas on many of their most popular bags, quality materials still matter. If you’re looking for a bag made of lambskin leather, you’d price it for less than an ostrich or snakeskin. If you’re hoping to sell a bag made of Himalayan Crocodile, shoot for the stars.

- Item Availability

Customers typically shop designer resale to find exclusive, limited-edition, sold out, discontinued and/or collaboration items. It’s all about supply and demand. If you’ve got an incredibly rare pre-owned Lady Dior Bag on your hands, be sure to price it accordingly because these items may not only hold their value but could appreciate over time or even become a collectible.

- Condition

The condition of your items can make or break a sale. From minor hardware scratches to cracking and flaking, or tears in the leather, the condition of an item can make or break a sale. As a business, it’s imperative to double check all photos and the full description of an item before you commit.

As a business, you have the jurisdiction to discount the price of the item for someone to buy it as is but shoppers are likely to go elsewhere and search for the same item in better condition.

- Brick and Mortar Shop vs. Online Only

Having a brick-and-mortar store, comes with a full list of expenses such as rent, electricity, security, and more. If customers are allowed touch and feel items before purchasing, there’s a higher chance of potential damage or stains to items. This is why we recommend pricing a bit higher.

If you are running an e-commerce site, your business may be able to offer a slightly lower price because additional costs are not a factor. However, don’t forget to consider other factors like packaging, cleaning, repairs, authentication services, and postage and handling.

Join LePrix!

If you’re a business, you may qualify for exclusive access to authenticated, pre-owned designer bags, jewelry, accessories and more at wholesale prices. Join LePrix and find out more here.