Comps VS ASP: What Should You Rely On?

Understanding Comps and ASP

Comps (Comparable Sales)

• Definition: Data from individual sales of similar items.
• Key Benefit: Offers insights into recent sales but can be misleading.
• Best Use: Useful for pricing specific items, but should be cross-checked with other data. 

Poshmark Comps Example:

Ebay Comps Example:

ASP (Average Selling Price)

• Definition: The average price at which an item or brand typically sells.
• Key Benefit: Provides a reliable, big-picture view of potential earnings.
• Best Use: Ideal for making informed sourcing decisions and pricing strategies. 

The Problem with Comps

While comps can be useful, they come with several challenges:

1. Misleading Sales Data: Not all comps reflect genuine market demand. Some sales might be from sellers who are simply clearing out their closets, which can skew the data with artificially low prices.

2. Live Shows/Bundles: Sales from live shows, bundles, or multiple-item transactions often don’t display the true selling price. The listed price might not be what the buyer actually paid, leading to misleading comps.

3.Price Dumping: Sellers trying to offload inventory quickly might list items at rock-bottom prices, creating comps that don’t accurately represent the item’s value.

The Challenges with ASP

ASP offers a more stable, big-picture view but has its own challenges:

1. On-the-Spot Calculations:  Calculating ASP while sourcing can be tricky, especially when you’re trying to evaluate multiple items quickly. This can slow you down during sourcing.

2. Generalized Data: While ASP gives an overall sense of value, it doesn’t consider specific factors like an item’s condition, size, or unique features, which can greatly impact its worth.

A Balanced Approach

• Cross-Reference Wisely: Start with ASP to guide your sourcing decisions, and then cross-reference with comps to ensure you’re not missing any key details. Look for patterns across multiple comps rather than relying on a single sale.
• Leverage Market Insights: If comps appear inconsistent, let ASP be your guide. It’s a more stable metric that reflects overall market behavior, helping you avoid decisions based on temporary or misleading sales data.
• Tools for Success: The BOLO Tracker makes it easy to use ASP for sourcing, giving you a reliable benchmark without needing complex calculations. It’s all about making smarter, faster decisions that boost your profitability. 

Conclusion: 

Relying on ASP gives you a clear advantage in the reselling business. By focusing on ASP, and using the powerful tools provided by The BOLO Tracker, you can confidently navigate the reselling market and maximize your profits.