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THE RESALE OPERATIONS BRIEFING

Why pricing gets harder as you scale (not easier)

Briefing #01 | Read time • 3 mins

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Founder & CEO

Duncan McKay 

LinkedIn

The same Hermès Birkin sells for $20,000 on one platform, $25,000 at a reseller, $12,000 at auction. Same bag. A $13,000 variance.


Most operators assume pricing gets easier at scale. More data, clearer patterns. It doesn't. It gets harder.


At 100 items monthly, you can manually price everything. At 1,000 items, manual pricing breaks. At 5,000 items, you're guessing and hoping. The operators still growing are the ones who built pricing systems before they needed them.


This is what happens: you scale from 200 to 2,000 monthly items in 18 months. Revenue looks strong. But margin quietly drops 12 points because your team is copying last quarter's pricing and guessing on the rest. Items sit 90+ days, get marked down 30% to move them. You're focused on hitting volume targets, so pricing systems feel like next quarter's problem. Then you model out the P&L and realise you've left five or six figures on the table - money you actually needed to hit profitability.


The market makes this worse. Chanel increased its Classic Flap from $5,800 to $10,800 between 2019 and 2024 - 86% versus 28% inflation. The resale discount expanded from 43% to 53% in one year. If you're pricing based on what worked 18 months ago, you're missing market shifts in real time. Your competitors aren't.


The category divide compounds at scale. Luxury handbags have finite variables - you can build pricing systems that work. Apparel is chaos. A Zara dress from three seasons ago has 47 variations. At 200 items monthly, you can handle that manually. At 2,000 items, it's impossible.


The solution isn't hiring more people to manually price. It's implementing structured pricing by condition for standardised categories, tracking sold prices instead of listings, and building automated systems before you desperately need them. Start with your top 20 models, define 5 condition tiers (new with tags down to shows wear), pull 3 months of items sold per tier, set price ranges - that's the framework that scales.


What you could do this week:


☐ Calculate your pricing time per item. If it's over 5 minutes for standardised categories (bags, trainers), you won't scale.

☐ Pull your last 100 sold items by category. Calculate hold time and markdown rate.

☐ If bags or trainers are sitting over 60 days or getting marked down over 20%, your pricing methodology is breaking. Fix it now while you can still manually test and refine, not later when you're drowning.


The market is shifting from growth-at-all-costs to margin optimisation. Operators leaving 15-20 points of margin on the table could afford that luxury when capital was cheap and growth covered inefficiency. In 2026, with tighter unit economics and slower growth, that same pricing sloppiness is the difference between sustainable business and shutdown. The platforms that built pricing sophistication years ago are capturing margin their competitors don't even know exists.


Who can afford to keep giving away money they could be keeping?

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