cancel
Showing results for 
Show  only  | Search instead for 
Did you mean: 

What is your pricing formula?

For each item,

  1. What is the price you'd set?
  2. How'd you come up with that price? (be as specific as possible)
  3. When do you expect it to sell?

Assumptions:

  • Not free shipping
  • $6 flat rate shipping
  • Good used-condition, no flaws

Item A: Levis 501 Men's Jeans 34X32 Not Vintage Not Premium Blue

Item B: Terra & Sky Women's Blouse 2X Cotton Button-Up White

Item C: Lululemon Men's Shorts 5" Linerless Pace Breaker 34 Black

 

Hoping this discussion can help sellers new and experienced. Thanks.

Message 1 of 25
latest reply
24 REPLIES 24

Re: What is your pricing formula?

The formula is simple.

"Items are worth what a buyer is willing to pay and has NOTHING to do with

a.) what you paid

b.) how much you'd LIKE to make

 

Like the most important thing in Real Estate is 

Location Location Location

 

Pricing 'used' things here where there are 'others' selling the same thing it's 

Price Price Price

 

Research what others 

a.) are currently selling for

b.) have recently 'sold' for

 

Be the lowest or somewhere near it if you want to succeed because this site shows 4 OTHER SIMILAR items being sold RIGHT on your listing, RIGHT below your main picture- so........

 

You being $50 shipped when 4 others are $30, $35, $40, $38....you are sure to FAIL

Message 2 of 25
latest reply

Re: What is your pricing formula?

I want tears to well up as the customer is pulling out their wallet.

Message 3 of 25
latest reply

Re: What is your pricing formula?

I don't use a formula. 

I arrive at a price by factoring in recent sales figures, quality of my item, special features of my item that set it apart from recent sales (either positive or negative), how many others are currently listed, how long I am willing to store the item (ie, how fast I want it out of here), etc.

The price I paid is usually irrelevant to pricing because that is a sunk cost.

Message 4 of 25
latest reply

Re: What is your pricing formula?

I'll start off by saying I spend very little time researching the price. Generally no longer than a minute, if that. I'll look at recent sales and, if there isn't enough data, I'll go back further. This is especially true for seasonal items. I will see what people have the item listed for now, but I rely more on where the recent market has been and those listings for guidance.

 

I have no problem if something sits for 6 months or a year. I have plenty of room to store thousands of items. Some things take the right buyer.

 

Your price is a factor, but it isn't the only factor. You can price lower than everybody else, but that does not guarantee yours will sell fast or sell at all. Not to mention you may be leaving money on the table.

Message 5 of 25
latest reply

Re: What is your pricing formula?

Start  by doing  some market research and see what other sellers have sold  or are  selling  the  same or similar product(s),  .  

Calculate  your  total cost of selling and add your desired profit marker and determine if it is worth selling your BSTs -  name of a song group from the late 60's

Profit  starts with the acquisition cost of  stuff you are selling

Don't  think other sellers will  be open to do  trade secretes.

Sold  for 41.5 years  while I was  friendly with my competitors never  shared my  "secrete sauce(s)" recipe  with the competition.  That  life in a free market  society.

 Selling/Marketing  is  all about the 4 Ps & a D -: Product, Price, Place, Promotion.and Distribution in my book,

"I have the right to remain silent but I didn't have the ability." Ron White, Fritch, Texas
"Stay away from negative people, they have a problem for every solution." A. Einstein
"The Devil made me do it!" - Flip Wilson
"If the band can only play loud - they ain't no good - peps too!" J.R. Johnson
Message 6 of 25
latest reply

Re: What is your pricing formula?

"Don't think other sellers will be open to do trade secretes."

 

I have tried to ask questions like this before and people refuse to answer. Back when I first started, there was a community created by the people known as Scavenger Life. People would actually give good faith answers to questions. And also a Youtuber named Ronnie Hart. When I first started I was buying on what I felt was good, but then he taught me about Sell Through (not actual sell through, simply the ratio of Sold/Active). But it was still a technique that helped way more than going on "feel".

 

Are those days gone and now everyone has the gatekeeper mentality with reselling?

Message 7 of 25
latest reply

Re: What is your pricing formula?


@redlinear wrote:

I want tears to well up as the customer is pulling out their wallet.


My fav feedback of all time was a positive that said, way overpriced but I had no other choice. 

 

 

Message 8 of 25
latest reply

Re: What is your pricing formula?

If I can't expect to make a 100% profit after expenses, I likely will not purchase the item to resell on eBay, and even at 100% I may pass.

 

For some..............  time is money. Not so for me. My time is basically free. If not doing some sourcing/selling I would be wasting my time doing useless things like ...........  the community boards.

 

I like to make 200-300% or more.

 

Time was I would buy for 10 cents and clear $4-5 but have left that by the wayside as I like to buy for 10 dollars and clear $30 or more better.

 

I buy cheap. It sells ................. when it sells.

 

Message 9 of 25
latest reply

Re: What is your pricing formula?

Nobody is going to do your work for you.  You're not asking for general info, your literally asking people to do your work.   You need to look at SOLD prices & take into account how much you paid, what the item seems to be going for, what is the STR on that item (how desirable is it), how much room you have to store things & how (if at all) your item differs from others that are currently for sale.   For clothing, how upscale the brand is may or may not be a factor.  I know plenty of prolific high end designers that don't sell here.  That said Terra & Sky is Walmart & you're rarely going to sell something for $25 that cost $8 when it was new.  Many sellers choose to have a bottom line price at which below that value, it's not even worth selling.  For example, I would not bother with Terra & Sky, but I aim for a much higher ASP than many sellers. 


You'll also have to take your overall expenses into account to figure out how much money you want to make.  Double the cost is nowhere near enough for me, but YMMV.   Only you can determine those things for your business.   So as you can see, a lot goes into the equation & no one will or even *can* do that work for you, as we don't know the answers to the questions that you need to ask yourself.  

This one goes to Eleven - Nigel Tufnel

Simply-the-best-for-you Volunteer Community Mentor
eBay Seller since 1996

Message 10 of 25
latest reply

Re: What is your pricing formula?

You have sold 78 items in the last 90 days and have 1300+ listings. You should be asking someone how to price items because your prices are too high.

 

I'd start with Product Research (Terapeak) since it shows accepted offer prices and is better data.

Message 11 of 25
latest reply

Re: What is your pricing formula?

In general...

Whether it's a $5 item or a $50 item,

I price everything so that after all fees and expenses, I double my money or make 100% profit.

A few of my items I may make a little less than 100% profit and a few of my items I may make a little more than 100% profit ... but 100% profit is my general rule of thumb.

There are a few items that I make several hundred percent profit on.

Lido Shuffle - Boz Scaggs
Message 12 of 25
latest reply

Re: What is your pricing formula?


@fredew_0 wrote:

You have sold 78 items in the last 90 days and have 1300+ listings. You should be asking someone how to price items because your prices are too high.

 

I'd start with Product Research (Terapeak) since it shows accepted offer prices and is better data.


You should have my ASP in this category LOL & you have no idea what my acquisition costs are.  You are ill equipped to make that determination. 

 

I don't need to ask anyone for help, I've been selling on eBay for 29 years & I do my own work & research.  I know exactly what I'm doing & I'm perfectly happy with my prices & my ASP.  I'm not a churn n burn $10 seller & I never will be.  That has never been my goal.  There's a lot to be said for pricing high if you know what your goals are.  But if you don't want to hear from people who have been here since the beginning of eBay, no problem, I'm happy to go help someone who will appreciate the help, esp since I gave you more info than anyone else did, but hey, what do I know, only been selling for almost 30 years here.  Also, your rudeness is really rich coming from someone asking about selling a Walmart brand 🤣  I don't need or want $5 sales!  You will find out soon enough, the reasons why. 

 

Additionally, you may want to keep in mind when you decide to be rude to those who are helping you, that you have no idea what's going on in someone's personal life, like that I pretty much had to take 2 years off from this business in order to deal with the estate of a family member & I'm still bringing my sales back up to normal.   

This one goes to Eleven - Nigel Tufnel

Simply-the-best-for-you Volunteer Community Mentor
eBay Seller since 1996

Message 13 of 25
latest reply

Re: What is your pricing formula?

I do use Free Shipping and that is one Fixed Cost.

Most of the time that means Tracked Packet USA or domestic Lettermail for Canada.

But I will upgrade, without changing Free Shipping if the item is valuable enough (to me).

 

Then procurement cost, averaged shipping cost (around $7.50 USD), 20% for eBay fees (high but I'd rather be pleasantly surprised than horribly shocked).  And sometimes PL fees on top.

And a 100% or more markup for profit.

 

Because I was buying in loonies and am selling in USD, there is an automatic 25% markup for currency exchange.

 

All of which is useless for you, since we have different products, different customer bases, different shipping needs.

 

Message 14 of 25
latest reply

Re: What is your pricing formula?

If you truly know it all, then I agree you don't need to ask for help.

Message 15 of 25
latest reply