What is a Comp?
The word "comps" is short for comparables. When you're finding a comp, you're simply looking up historical sold prices for an item that is similar or exact to the one you're selling so you'd know how much to list your item for.
I personally don't like using comps because I think the information is very skewed, this is something I will get to in a future post. I'm only writing this for those that need somewhere to start when it comes to pricing their item.
How to Find a Comp
I'll be discussing the general straight-forward method of finding comps. Throughout the steps, I'll also be providing some side notes that you should keep in mind. In the end, I will recap everything as simple as possible.
1. Identify Your Item
Identify the brand, what kind of piece is it (blouse, pants, etc.), and condition of the piece you're trying to look up. It also helps if you know the official name of the piece. I'll use this Rails piece for this tutorial. I chose this piece because it will present a couple of issues that you might run into.
With this piece in hand, I'm able to identify some keywords I can use in my search for the comps. These keywords are Rails, Kelli and Camo. Mind you, the name of the piece is Kelli. It is important that you include the name of the brand in your keywords because similar pieces vary in prices from one brand to the next.
2. Input the Keywords
Input your keywords into the search bar and click search. Whatever results come up is not important because Poshmark will initially only show results that are "Available". Remember, we're trying to find historical sold prices.
Go to the filters and under "Availability" check the "Sold" box. These are the results you should be looking at. If your piece is new with tags, make sure to also check the "New With Tags" button under "Condition". This, in theory, will give you more accurate prices to compare with.
*You will find that some used items sold for more than some new with tags pieces. If this is the case, and you have a new with tags item, go with the higher comps.
If there are too many search results, again, use the filters to narrow down the results. For example, if you're looking up a dress, make sure to select "Dresses" under the "Categories" menu in the filters.
To sum up, you should be narrowing down the search results by using the filters. But the downside of using too many filters means you will have fewer search results. Play around with the filters to see what works best for the piece at hand.
4. Assess the Numbers
With the refined search results, look at pieces that are similar or exact to the piece that you're selling. Here are my final results for the Rails piece:
We now have 3 sold pieces that are exactly like the one we're researching. The next step is deciding what you want to list the item for. This part is completely up to you because everyone has their own way of pricing things. Maybe you got the piece for really cheap and don't mind pricing it on the low end. Conversely, if you can price it on the high end if you feel that you paid a high price for the item. Also, generally speaking, the higher you price something, the longer it will take for it to sell. Conversely, if you price it too low, you might be leaving money on the table. Again, pricing is totally up to you at the end of the day so price it at a price your satisfied with when all fees are considered.
Don't let all the details of these steps scare you, after you do about 10 pieces you'll get the hang of it.
I know I might have explained it way more in-depth than I should've but I just wanted to get really in-depth for those that are new to finding comps. In any case, here is a recap of the steps:
- Identify Your Item
Find keywords pertaining to your item
- Input Keywords
Search up the keywords
Filter out the results. Remember to set the "Availability" filter to "SOLD"
- Assess the Numbers
Decide on your selling price using the comps as guidance
I'll leave you with a pricing philosophy that I always tell my team. You may not understand what I mean at first read but hopefully, it will make sense if you read it enough times.
"We will never list it at the right price, but we still have to get as close to the right price as possible"