How to price children’s resale items quickly and fairly? That is the $64 dollar question, … or is it $79.99 $52.99??? There are any number of pricing systems for children’s resale goods, but none as sophisticated as NextGen’s.
NextGenResale spent nearly two years developing its pricing system using data from multiple stores over many years, and continues to hone it. The system is built into a Point of Sale (POS) System. Resale prices are suggested based on item type, brand, features, condition and market. The resale and pay prices are data-based and current, fair and transparent. Minor variation in the application of these standards by participating stores is permitted.
Sell prices are empirical, based on data from established and reputable retail and resale businesses.
NextGen checks benchmark prices, thousands of them, in the spring and fall of each year. Prices are updated annually. Stores adhering to the NextGen Standards are awarded Certificates of Compliance with the Fair Pricing Standards at the beginning of each calendar year.
Sell prices are set at fair market value, the demonstrated price at which like items sell within 60 days. Sell prices range from 25-50% of their current retail price. Toys and equipment sell at a higher percent of retail than clothing. In the case of all resale merchandise, the better the brand and better the condition, the higher the percent.
Pay prices are set to assure a fair return to sellers and consignors, while allowing shop owners a gross marginThe difference between what we pay for something and what we sell it for. sufficient to manage an efficiently run operation . Pay prices are within the industry average of 35-40% of sell prices, ranging from 15-50%–the higher the sell price, the higher the percent.
Users are encouraged to prominently post an explanation of the NextGen Pricing System on their websites, facebook pages and sites.
While the standards yield fair and consistent prices in terms of the data, principles and algorithms applied, the standard prices are not always fair in the case of a particular shop. This is because local supply and demandCommon sense principle which defines the generally observed relationship between demand, supply, and prices: as demand increases the price goes up which attracts new suppliers who increase the supply bringing the price back to normal. Source: http://www.businessdictionary.com factors may skew an item’s fair market value and thereby the pay and corresponding sell price, and because the “standard” prices are not exact prices, but prices averaged over many brands and retailers. Indeed, the value of the Fair Pricing System to owners lies not only in rational pricing, but in speedy pricing. Checking the current price of every item would be prohibitively time consuming and expensive. Still, owners at their discretion, may double-check a price to be sure it is an accurate reflection of market value. Links to online sites for purposes of price verification are part of the NextGen system.