Fair Pricing Standards
NextGenResale spent two years developing its standardized pricing system, first publishing the Fair Pricing Standards in 2011. The Pricing Standards define the core principles and procedures that NextGen follows in arriving at “fair” prices. 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 retailers. Pay prices are informed by data from established and reputable children’s resale businesses.
NextGen checks benchmark prices in the spring and fall of each year, extending and validating the checks where benchmark prices change. Prices are updated each 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 current retail price–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 margin 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 better the brand and higher the sell price, the higher the percent.
The publication of these standards is intended to clarify how NextGen sell and pay prices are derived.
While the standards yield fair standard prices in terms of the data, principles and procedures applied, the standard prices are not always fair in the case of a particular shop. First because local supply and demand factors may skew an item’s fair market value and thereby the pay and corresponding sell price. Second 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 provided with the system.