How to Price Items for Consignment

If you are taking clothing, furniture, decor or collectibles to a consignment shop, the price you agree on decides whether the item sells in a few weeks or sits until it is returned to you. This guide walks you through researching value, setting a realistic starting price, and planning for markdowns.

Understand how consignment pricing works

In consignment, the shop sells your item and keeps a share of the sale price, often called the commission or split. You receive the rest after the item sells. That means the number that matters to you is not the tag price but your share of what the item actually sells for.

Commission rates, minimum prices and contract lengths vary widely from shop to shop. Some shops set the prices themselves, some let you suggest a price, and some do it together with you. Ask how pricing works before you bring anything in.

Start with what similar items actually sold for

The most reliable guide to value is what comparable items have sold for recently, not what sellers are asking. Asking prices are often hopeful, while sold prices show what buyers were willing to pay.

• Search sold or completed listings on online marketplaces for the same brand, maker, model or style.
• Look at auction price archives for antiques, art and collectibles.
• Walk through the shop you plan to use and note what similar items are tagged at.
• Ask the shop owner what comparable pieces have sold for in their store.

Keep in mind that local demand matters. A large dining set may sell well in one town and slowly in another, depending on who shops there.

Adjust for condition honestly

Condition can move price more than almost anything else. Compare your item to the sold examples you found, and lower your expectations for stains, chips, missing parts, fading, odors, repairs or heavy wear. Items in excellent condition with original tags, boxes or paperwork can justify a price near the top of the range.

Be candid with yourself. Shoppers in consignment stores inspect items closely, and flaws you overlooked will be noticed.

Think like a secondhand shopper

People shop consignment because they expect a meaningful discount from retail. Pricing an item close to what you paid new rarely works, even if it was barely used. Brand recognition, current style, and season all affect how quickly something moves.

• Seasonal items such as coats, patio furniture and holiday decor sell best just before and during their season.
• Trendy pieces may sell quickly now and slowly later.
• Bulky furniture takes floor space, so shops may want it priced to move.

Listen to the shop's experience

A good consignment owner sees what sells every day and knows their customers. If they suggest a lower price than you hoped, ask why. They may know that a style has cooled or that similar pieces have been sitting. You can disagree, but an overpriced item usually ends up marked down anyway or returned unsold.

If you feel strongly that something is worth more, ask whether you can start higher and agree on a point to lower it.

Plan for markdowns

Many shops reduce prices on a set schedule, such as after a certain number of days on the floor. Ask whether the shop uses automatic markdowns, how much and how often, and whether you can set a lowest acceptable price.

Factor markdowns into your starting price. If you know an item may be reduced over time, a slightly higher opening price can still land at a fair final number. Just avoid pricing so high that shoppers ignore it from the first day.

Know when to get a professional opinion

For jewelry, signed art, designer handbags, antiques, or anything you suspect is valuable, consider an independent appraisal or a specialist dealer's opinion before you set a price. A consignment shop may not specialize in every category, and a costly item underpriced is money you cannot get back.

Quick checklist

• Ask the shop how prices, commissions and markdowns are set.
• Research sold prices, not asking prices.
• Adjust honestly for condition and completeness.
• Consider season, style and local demand.
• Agree on a starting price and a lowest acceptable price.
• Get expert advice before consigning anything you think is valuable.