Do you like making a profit on your sales??? Of course, you do! But how do you maximize on those profits???…..The answer: Minimize the price of goods. This might sound like a no-brainer but it can be a tricky at times, even for a more experienced reseller like myself. To help guide you through the hurdles, for today’s post, I would like to share with you ways to maximize your profits through minimizing the cost of your goods.
In order to minimize your cost of goods, you need to start by looking at how much you are spending on your items and what items you are actually buying.
How Much Are You Spending on Your Items??
I don’t know about you but the majority of my inventory is purchased from thrift stores with some items purchased from resale and retail stores. Where I live, the average price of a thrifted item is about $4.99. You might be thinking ‘OMG that’s so cheap!,’ and you are right! But to maximize on my profits, I need to find ways to get that price even lower. And how do I do that????
By sourcing on thrift store sale days!!! Three examples of how I do this are: (1) Every Wednesday, my local Salvation Army stores offers 50% off 4 out of the 5 colors in store. I REALLY take advantage of this sale as items that are normally $4.99 and now only $2.50! (2) Every few months, Thrifty Shopper (another Thrift Store near me) offers a storewide sale of 50% off everything! As you can could see from Monday’s blog post HERE, you can find a lot and pay very little for it! (3) Although not technically a thrift store, Plato Closet offers a few clearance sales during the year and some discount as high as 90% off their already discounted prices.
How Much Do You Want to Profit Per Item??
My average profit per item is between $15-$25. However, I do have quite a few items that profit $50 or more per item. It really depends on what the item is and how much I can sell it for. When it comes to deciding what to price my items for, I usually run comps on the app before listing and also make a point to price it a little higher to allow for offers to likers and offers from other Poshers. Figure out what works best for you and your closet and stick with that!
What Items Are You Selling??
People have mixed opinions on this topic but I’m going to discuss it from a business perspective. If you want to make sales, you need to buy items that people want. They may not be your exact style all the time and they may be a little outside your own comfort zone at times but people buy what’s on-trend. However, you also need to keep in mind that you’re Poshmark closet is your brand. What are your customer’s demographics? What type of reputation have you given your brand? Why do people shop with you? What types of items are you selling? These are just a few things to think about when sourcing for items. This topic is very complex and involves many factors but I would suggest maybe take a rundown of your inventory and analyze if the items that you are selling are best for your brand and your customers.
That’s probably enough for one day. Hopefully, you found today’s post to be helpful! If so, stay tuned for more reseller-related posts next week!
If you don’t already, be sure to check out my Instagram for more Reselling Tips at @ RecycledRosesGuide (Click HERE)
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Be Classy, Be Confident, Be Strong
Baci,
Bianca Ida
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