It’s time to talk about one of my favorite topics, Poshmark. Lately, people have reached out to me asking how I price my items and when to discount prices on items. (Full Disclosure: I am by no means a “Poshmark Expert.” However, I have been on this app long enough to learn a thing or to about succeeding on Poshmark.) In today’s post, I want to give you some insight on how I run my Poshmark business in terms of pricing and how it affects sales. Let’s get started!
So believe it or not, I am actually a part-time Poshmark seller. I am hoping to go full-time with it within the next year or so but for right now, part-time it is. This past year, I decided to “experiment” with the app to project how successful I could potentially be if I were to take this on full-time. It was during this experimentation phase that I learned the realities of being a reseller. Most importantly, I learned two important lessons: how to price my items so that they will sell relatively quickly and when to discount an item.
Pricing Items to Sell
This seems to be something that a lot of new resellers really struggle with. I definitely can relate to this as I too was a new reseller once. However with time and a LOT of mistakes, I discovered what works best for ME and MY BUSINESS. I really want to stress this because there is NO magic formula to guarantee success. If we are being real here, it takes a LOT of trial-and-error to get it right (and I mean a LOT). Here are some tips that I would suggest when trying to set prices for items:
1. Do Your Research– What I mean by this is research the item that you are looking to sell on Poshmark. This is really simple: go into the app and search for the exact item that you are selling. Look and see how much other Poshers are currently selling the same or similar item for. But also look and see how much the item sold for under “sold listings.” By doing this, you should hopefully get some good insight into how much you should price your item for.
2. Stalk Out Your Competition– I don’t mean to actually be a stalker (okay, well maybe kind-of). When you are doing your research on the item, look to see how many people are selling the exact same item. If there are multiple people selling a particular item, be wary of your competition. One trick that I learned is to price your item slightly lower than your competitors. This may seem like common sense but remember, people are always hunting for the lowest price possible before they buy an item. Looking at it the other way, if you are the only person selling a particular item, then you may have the ability to price the item higher. You need to take a good look at the market as a whole and determine your pricing from there.
3. Know Its’ Value but Be Reasonable– This is a top that I just want to touch upon briefly. Just like the best of them, I also want to maximize my profits when selling items on Poshmark. However, you need to be reasonable with your pricing. If you price an item for higher than it is worth, it is not going to sell. More likely than not, the item is going to sit there for a long time with no interest. When you are pricing an item, put yourself in the buyer’s shoes. Would you pay that amount for that item if you were buying it? If the answer is ‘no,’ you might want to re-evaluate the price.
This topic needs to be discussed in some extensive detail. For the longest time, I HATED discounting items that I was reselling. The main reason being that I just didn’t want to lose out on my profit margins. However, I soon realized that while these items may have the potential to create large profit margins, they were also taking up valuable real estate. I realized that it made zero sense for me to keep these items for an extended period of time. They needed to be replaced by items that have a greater chance of selling for a profit. And with that, I decided that I needed to discount the prices on some of my items. When it comes to discounting items, here are some questions to ask yourself in determining whether or not you should lower your prices:
1. How long has this item been in my closet for?
2. Are customers interested in this item?/ Are people liking the item?
3. If people are interested in the item, did I price it too high?
4. Is the item presented in it’s best possible light?
5. Is there anything in the listing that would prevent the item from selling?
…. And these are just a few of the questions that you should ask yourself. I hope that you guys found this post helpful and if you have any questions, please don’t hesitate to reach out to me!
Be Classy, Be Confident, Be Strong