How to Price Consignment Inventory Part 3: Your Pricing Method
Kent Atkinson
Jul 10, 2025
NOTE: This is part 2 of a pricing series and it assumes that you have defined your resale store type (Luxury, Mid-Range, or Thrift-Style)—if you have not, we recommend reading part 1 and at least gaining an understanding of your store type. It is an important step because the inventory models we discuss below are often best paired with a certain store type.
Brand List vs. Individualized Pricing in Consignment Stores
When it comes to pricing inventory, it’s important to decide on and optimize your pricing method. There are two main pricing methods: a brand-tier pricing guide (sometimes these guides are organized by categories rather than brands) or individual pricing. Resale and consignment stores are using one of these methods or a combination. We recommend establishing your pricing method as early as possible—this early, strategic thinking helps stores to price optimally.
Both methods are common, and each has its advantages and drawbacks. Your ideal approach depends on your store type (luxury, mid-range, or thrift-style) and inventory model (consignment split vs. buy-out or donation). This post (Part 3 of our pricing series) unpacks the difference between a standardized brand-tier list and individualized, market-driven pricing. We’ll share real-world examples from consignment stores and mention industry leaders (e.g. The RealReal), and help you decide which strategy best fits your goals, staffing, and inventory.
Brand lists are popular with mid-range stores (the most flexible store type), but mid-range stores often use individualized pricing methods as well.
If you are running a thrift-style store, a brand list will be a must to create an efficient and consistent pricing system.
Standardized Tiered Pricing Systems
Many successful consignment stores rely on a standardized pricing guide to ensure consistency, speed, and fairness. This is most commonly used by mid-range or thrift-style stores. These guides are often structured around tiers, which categorize inventory by brand, condition, item type, and perceived resale value. While some stores base their tiers purely on brand reputation, the most effective guides, like those used by My Girlfriend’s Wardrobe and Reruns Consignment, combine multiple pricing factors into a clear system that staff can follow with confidence.
Why Tiered Pricing Guides Work
Tiered systems allow you to assign expected price bands to items at intake, reducing the need for deep individual research on every piece. They’re especially useful when your store deals in high-volume intake, employs a rotating staff, or works with less-experienced team members who need a structured reference to guide decisions (characteristics of mid-range or thrift-style stores).
For example, My Girlfriend’s Wardrobe owner Alexandria Hammond uses a six-level pricing and acceptance system inspired by Sarah Marshall’s consignment coaching program. Her team uses this system to sort brands by resale potential and quality, allowing them to make quick decisions during intake and pricing:
Level 1: Do Not Accept
These brands are consistently low-performing and no longer meet the store’s standards. By clearly identifying these, Alexandria’s team avoids cluttering their racks with items unlikely to sell.
Example Brands: Lower-tier fast fashion or discount retailers.Level 2: Filler Brands
Accepted only selectively, typically when new with tags or when needed to fill a size gap. These items are low risk and priced accordingly.
Example Brands: Old Navy (NWT), select Gap pieces, Target collabs.Level 3: Lower-Priced Sellers
These are dependable brands with a resale value in the $10–$25 range. They're priced affordably and tend to move quickly with the right presentation.
Example Brands: J.Crew, Ann Taylor, LOFT, Banana Republic.Level 4: High-Demand Mid-Tier Brands
These brands consistently sell well and can command prices closer to 35–45% of original retail.
Example Brands: Free People, Athleta, Lululemon, Aviator Nation.Level 5: Designer Brands
These are recognized premium names that bring in discerning buyers. Prices are set high, but below luxury-tier resale benchmarks.
Example Brands: Kate Spade, Coach, Michael Kors.Level 6: Luxury Brands
This top tier is reserved for premium luxury goods. These are either priced based on current resale value (often through research) or held for special promotions.
Example Brands: Louis Vuitton, Chanel, Hermès, Cartier, Tiffany & Co.
This structured hierarchy doesn’t just simplify pricing—it also standardizes brand acceptance, keeps quality control high, and reinforces store identity. Customers know what to expect, and so do staff and consignors. In practice, what might this system look like? Let’s say your shop uses Alexandria’s 6-level system. You receive a $100 J.Crew sweater:
It falls into Level 3 (Lower-Priced Sellers)
The base rule is 1/3 retail → $33
You notice it’s a seasonal color and in excellent condition → bump to $36
This pricing model is fast, data-backed, and consistent with what shoppers expect from your brand.
“This setup allows my team to quickly assess what brands we should accept based on demand and quality,” Alexandria explains. The clarity of this system ensures her store remains tightly curated and consistently profitable.
Pros:
Efficiency: Your team can price hundreds of items per day without doing research on every one.
Consistency: Shoppers see fair, consistent pricing across similar items, building trust and brand credibility.
Trainability: New staff can be trained quickly and operate with confidence, reducing errors and pricing inconsistencies.
Transparency: It helps consignors understand how pricing decisions are made—no surprises when payouts arrive.
Scalability: As your store grows or adds locations, a tiered system keeps everyone aligned on standards and expectations.
Cons:
Potential to Underprice High-Value Items: A rigid system may miss trends or one-off items worth more than their default tier. For example, a limited-edition Free People piece might belong in Tier 3 by brand, but in reality could be worth much more due to rarity or demand.
Subjective Condition Tiers: If staff don't apply the same judgment to item condition, pricing can still vary significantly even with a brand list in place.
Frustration from Consignors: Sellers may feel constrained by the structure, especially if they believe their items are worth more than your default price band allows.
BOTTOM LINE: A well-maintained tiered pricing system—especially one that incorporates brand, condition, and item category—can save time, improve profitability, and build credibility with your customers and consignors. While no system is perfect, blending structure with flexibility is the key. If an item seems “off-book,” flag it for additional research. But for most of your inventory, a guide like Alexandria’s helps ensure your pricing remains fair, fast, and profitable.
In order to provide consignors with top-dollar sales and splits, while not leaving money on the table, individualized pricing is a necessity for any store selling luxury goods.
As mentioned before, mid-range stores will often use both individualzed pricing for their higher-end inventory and a brand list for their less expensive items.
Market-Based Pricing: Individualized, Research-Driven Strategy
While tiered pricing guides offer speed and structure, other stores lean into market-based, individualized pricing; it’s the method of choice for luxury consignment shops, where precision and competitive positioning matter most. This method involves researching each item based on real-time resale demand, brand reputation, and trend status before setting a price.
What Is Market-Based Pricing?
Market-based pricing means you determine an item’s resale value by comparing it to real-time listings and recent sold prices on platforms like The RealReal, Poshmark, Fashionphile, and eBay. Instead of pricing based on a flat retail percentage or tier list, you evaluate actual consumer behavior and match your pricing to current market expectations.
For example, Sandra and Tomas Weddle of Couture Upscale Consign use this method daily. When pricing designer handbags, they search comparable listings to see what a similar Chanel or Gucci item is selling for—then price slightly below those listings to stay competitive. A Chanel bag listed for $1,400 elsewhere might be tagged at $1,200–$1,300 in-store, maximizing buyer appeal while protecting margins.
Pros:
Capture full value: Instead of relying on general tiers or formulas, you can tag items at their true market worth. If a vintage Gucci belt is trending at $300+ online, a standardized $75 price tag would mean lost revenue. Market pricing prevents that.
React to real trends: Mid-tier brands like Lululemon, Madewell, or Abercrombie might unexpectedly surge in popularity. A flexible pricing model lets you raise prices accordingly, without needing to overhaul a rigid guide.
Build consignor trust: Consignors appreciate transparency and effort. If you explain that their luxury handbag was priced based on sold comps and market value, they’re more likely to feel fairly treated—and return with more inventory.
Alexandria Hammond of My Girlfriend’s Wardrobe is a clear example. When she shifted her business model to include more luxury goods, she moved away from strict tier pricing for these items. Instead, she priced each Louis Vuitton, Chanel, and Gucci piece based on thorough research. The result? She sold 30 Louis Vuitton pieces in just 25 days, generating over $14,000 in sales with an average shelf life of just 16 days.
Cons:
Slower intake: Researching resale comps for every item takes time. If you’re processing dozens or hundreds of pieces a day, this model can create bottlenecks.
Training required: Not every staff member is equipped to spot nuanced value differences or know where to find reliable market data. It takes time and experience to develop the necessary eye for quality, demand, and brand subtleties.
Inconsistent results: Without standardized rules, two team members might price the same item differently, creating inconsistency and customer confusion.
Over/underpricing risk: If your market research is off you could price something too high and see it sit unsold for months, or too low and lose margin.
Because of these limitations, many stores reserve market-based pricing for a select subset of items, typically those priced over a certain threshold (e.g., $100+ resale value) or flagged as rare, collectible, or luxury-tier.
Have you put your inventory online? You can have your whole store available to sell online within an hour. Check out our blog on connecting your ConsignCloud store to Shopify.
Blended Pricing Methods
A blended pricing model is ideal for stores that carry both true luxury pieces (e.g. Louis Vuitton, Chanel, Hermès) and premium but non-luxury brands (e.g. J.Crew, Free People, Lululemon, Vince). This hybrid model (most often used by mid-range stores, but sometimes luxury stores with additional inventory) gives you the structure of a pricing guide for consistent intake and tagging, while preserving the flexibility to maximize profit on high-value or unique pieces.
For stores that sell both luxury goods and high-end fashion, a blended pricing strategy offers the ideal mix of efficiency and precision. Most everyday inventory—like J.Crew, Athleta, or Banana Republic—can be priced using a structured brand-tier guide. This system categorizes brands and item types into levels with preset price ranges, allowing for fast, consistent pricing at intake.
However, exceptional items, such as a Louis Vuitton handbag or rare designer dress, warrant individualized, market-based pricing. These pieces are researched one by one using current comps from platforms like Poshmark, The RealReal, or Fashionphile to maximize return. Stores like My Girlfriend’s Wardrobe use this hybrid method to price efficiently while still capturing full value on luxury items, leading to rapid turnover and high profit on premium goods.
To make this system work, train staff to flag high-value items for research and use tools like ConsignCloud to tag pricing method types. Periodic audits of your pricing guide also ensure tiers stay aligned with trends. In short, a blended model lets you price most items quickly while reserving extra effort for the ones that matter most, which is ideal for stores straddling the line between premium and luxury.
Your inventory model also matters:
If you operate mainly on a true consignment split, consignors trust you to price well, so you may lean toward careful market pricing on big-ticket items.
If you buy inventory outright, you’ve already paid upfront, so you often set prices to recoup quickly; many buy-out shops use preset price rules or pay low and rely on volume sales (think Plato’s Closet).
In donation/charity resale settings, items are already “paid for” (via donation), so prices are kept as low and uniform as possible, and strategy often focuses on clearance events and bulk pricing, not per-item optimization.
Finally, consider your goals and capacity. If your goal is maximum profit per item (and you have a small, skilled team), individualized pricing makes sense. If your focus is high throughput (many items moving daily) or if you’re training new staff, a structured guide is safer. Many shops end up using a hybrid: a baseline tiered price plus notes for special cases. For example, Reruns uses their six-tier system for most items, but Category 6 flags items that “require individual research”.
If you are trying to determine your goals, check out our suggested Key Performance Indicators (KPIs). To boost profit and effeciency, you will want to track these metrics.
Making the Right Choice
In the end, the best pricing strategy is the one that aligns with your store’s identity and resources. Answer these questions:
What is your store type? If you’re luxury-focused, plan on individualized pricing for value. If you’re mid-range, use a brand-tier guide or one-third rule as a baseline (with room for exceptions). If you’re thrift-style, keep it simple and low.
How do you pay for inventory? In a consignment model, invest time in pricing because consignors share in the upside. In a buy-out model, you might emphasize speed and margin (often implying a tiered or formulaic price).
What is your goal? Are you aiming for maximum margin per item (lean individual) or fast turnover (lean tiered)? Many shops track sell-through rates and adjust strategy if too much inventory stagnates.
Who’s doing the pricing? If you have experienced buyers or a small team, they can handle market research. If you have part-timers or high staff turnover, a clear price list will help maintain consistency.
What items do you get? A store with mostly common brands and sizes benefits from a guide. A store that occasionally gets rare finds might handle them case-by-case.
Your inventory model also matters:
If you operate mainly on a true consignment split, consignors trust you to price well, so you may lean toward careful market pricing on big-ticket items.
If you buy inventory outright, you’ve already paid upfront, so you often set prices to recoup quickly; many buy-out shops use preset price rules or pay low and rely on volume sales (think Plato’s Closet).
In donation/charity resale settings, items are already “paid for” (via donation), so prices are kept as low and uniform as possible, and strategy often focuses on clearance events and bulk pricing, not per-item optimization.
Ultimately, choose the method that keeps your pricing fair (to you and consignors) while matching your brand promise. A budget-savvy buyer or consignor searching “how much to charge for secondhand items” will expect rock-bottom rates at a thrift-oriented store, but will also judge luxury stores by how close they stick to current market values. By aligning your pricing strategy with your niche (luxury vs. mid-range vs. thrift) you not only optimize profits, but you also build trust with consignors and customers alike.
Every consignment store is different. Use data and set rules for pricing, whether that’s the one-third formula or a custom tiered guide. With clear policies (and possibly supporting software), you can balance the speed of standardized lists with the accuracy of market-based pricing.
By understanding your goals, capacity, and product mix, you’ll be able to craft a pricing strategy that fits your shop. And as always, keep refining. Pricing is not set-and-forget – whether you’re using a price book or comparing sold listings, make sure your prices reflect both the value of the merchandise and the expectations of your market. That’s the key to mastering how to price consignment inventory for sustainable success.
