If you are an avid shopper, you may have heard the term “cost-per-wear” floating around the internet. Some people swear by it while others think that it is a term created by those looking to justify pricey purchases. Regardless of what’s circulating out there about this topic, it is something that is worth talking about. As a thrifter, reseller, and entrepreneur-in-progress, understanding and utilizing these principles can be very beneficial to my business. In today’s post, I want to provide some insight into both of these principles and how to utilize them as a reseller.
Cost-Per-Wear
The cost-per-wear principle is something that has been floating around the internet for years. In simple terms, cost-per-wear can be defined as:
Cost-Per-Wear= Total Cost of the Item/ Number of Days that You Will Wear It
Pretty simple, right? But how exactly does this principle work in the real world? Let’s say for example, you are shopping at Bloomingdale’s and see a Burberry jacket that catches your eye. You tell yourself that you are just going to try it on… (Why do we ladies do this?) While wearing the jacket, you look at yourself in the mirror and realize that Burberry made this jacket specifically for you. (Okay, so maybe that part is an exaggeration but you get the idea.) You have internally decided that you need this jacket. So you take a deep breath, say a little prayer and bravely look at the price tag which reads…$500. Ouch!
After the initial price shock and a minor spike in heart rate, you realize that you need to make a decision. You need to decide whether or not you can justify spending $500 on this beautiful jacket. And this is where the whole cost-per-wear principle comes into play. Let’s say that you want to get the CPW down to $1 per wear, which I believe is pretty reasonable. In this case, you would need to wear it 500 times or every day for the next year and a half.
In summary, this principle is a tool for people searching for a method of justification when making large monetary purchases. It helps people to consider the longevity of their purchases instead of making impulsive purchasing decisions. The cost-per-wear formula is more of a philosophy than a principle as it encourages people to buy less stuff but better stuff!
The Neymer Principle
So what exactly is the Neymer Principle? This is a new concept that was introduced by the Vogue UK magazine (link). The Neymer principle is named after Neymer Jr., the world’s most expensive soccer player at 200 million British pounds. The whole idea behind the Neymer Principle is that you are making a purchase to make a statement. By making that purchase, you are acquiring everything that comes along with it.
Let’s look at this from a fashion stand point! For example, let’s talk about buying and wearing a Canada Goose jacket in a large city such as New York. (You can read my post on Canada Goose jackets HERE). A Canada Goose jacket is definitely a statement piece in the streets of NYC. As a New Yorker, if you see someone in a Canada Goose jacket, you quickly make the assumption that he or she is probably doing pretty well for themselves. Essentially, a Canada Goose jacket is a status symbol. This may or not be true but it is an assumption that one quickly makes upon observation of that signature upper sleeve circular logo. Whenever people see you in that jacket, you are instantly held to higher standards and expectations. In theory, by paying a lot of money for this jacket, you are not only buying the jacket but everything else that comes along with it from people. You are buying into the statement that it makes.
Applying the Cost-Per-Wear and Neymer Principles
Okay so how do I apply these principles into my resale business? Good question. These of these principles both provide valuable insight into the minds of consumers. Personally, I utilize these principles when I price my items for Poshmark. First, I research how much a item has sold for in the past on Poshmark. Then, I see what the exact item (or similar) is currently listed for by other sellers. More likely than not, there are price discrepancies between sellers which creates an endless amount of options for me as a seller.
I then think to myself, “how can I justify pricing the item at higher price point?” Well, what is the customer getting from me in return? Am I providing them with a high-quality item? Exceptional customer experience? Are they “getting a deal” on the item? What will be the cost-per-wear of the item at this price point? These are just a few of the many questions that race through my mind when making this decision. If you can ask yourself these questions when making decisions such as pricing items, then you are on the right track.
My Wednesday Motivational Tip of the Day:
As an active reseller for the past few years, I can tell you that this business is not as glamorous as people love to make it look on Instagram. It takes a LOT of hard work, sacrifice, and late nights to make this happen. One of the biggest pieces of advice that I can give you in this business is to educate yourself regularly and be an active adult learner. If you have questions, don’t be afraid to ask them and if you really have the drive and passion to do something, just do it. Learn along the way and the possibilities will become endless.
Be Classy, Be Confident, Be Strong
Baci,
Bianca Ida
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