As a new buyer or reseller of fashion and products on platforms like eBay, Poshmark and Mercari, you’ve probably seen the phrase “firm on price” or “price firm.” But what does that mean? Many people think it means that the seller isn’t willing to negotiate on price, but that is not always completely accurate.
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When I first started my resale business, I made plenty of mistakes, which is why my goal is to help you avoid them! And, I’ve seen people use “firm price” and “fixed price” interchangeably, and that can be really confusing.
For example, understanding the phrases buyers and sellers use in this market can be a chore in itself. So, if you plan on making reselling an actual business, even just part-time, you’ll want to learn as much as you can about how to sell on a variety of platforms.
In this post, I’m discussing the firm on price meaning as well as what “fixed price” means and other helpful things you need to know about it.
What Does Firm on Price Mean?
So, what am I talking about when I say firm on price meaning?
Normally, firm on price means that the seller has set a specific price for a product, and they won’t accept anything less. But that doesn’t mean that they aren’t willing to negotiate.
The seller may be open to negotiating other parts of the deal like shipping costs or payment terms. This is true on secondary marketplaces like eBay and Poshmark (find out how to cancel an order on Poshmark), but it’s especially true if the seller has something like Shopify or their own eCommerce website.
And sometimes, if the item has been listed a while, they may accept a reasonable offer, not something crazy low though.
In general, a “fair” offer is 5%-35% less than the list price. If you ask for a 40% or higher discount, you run the risk of insulting the seller (but like most things in reselling – there are exceptions).
@thriftyIQ
You may also see the term firm-fixed-price that applies to a specific type of contract. A firm-fixed-price contract is an agreement with a predetermined value for a service or product that is provided – it’s related, but not like the prices of goods you’re selling on sites like Mercari that this article is about.
Should You Negotiate with the Seller or Buyer if the Listing Says Firm on Price?
It really depends on factors like how old the listing is and if there is room for negotiating, etc. As a buyer, if the price is already low, the person likely won’t budge. But I’ve sent reasonable offers that weren’t insulting and have scored some really good deals on my favorite purchases.
It’s much better to approach people about the product in general before you start asking for a lower price. And you may not even want to approach a lower price at all as you could ask for free or reduced shipping or something similar.
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It’s always better to build a rapport with them first, and then start talking about a lower price later if you feel the item is overpriced.
Waiting is your best strategy for deep-discount offers. Then in a few days (or weeks or months, depending on the item), if the item hasn’t sold and you still want it, it’s fine to approach the seller about a lower price. If you want to negotiate with a seller, sometimes letting them know that you saw it was a firm price is typically enough to open them up to negotiation. Since it also proves you read their listing and didn’t ignore it all together.
As a seller, it’s totally up to you and really depends on the situation. Like shopping for a new car, just be prepared to walk away if the person won’t accept your deal.
As a Seller, Do I Ever Negotiate On My Prices?
Absolutely! When I’m listing items, I’m open to negotiation depending on the circumstances. When you sell things on platforms like Poshmark or eBay, you can just price the product slightly higher so that room for some negotiation is built in without listing items as firm prices.
In fact, I promote the fact that I’m open to negotiation with potential buyers. This is especially helpful on marketplaces like Mercari (see image below), where offers are less of the norm compared to Poshmark, where buyers seem to make a sport out of trying to get a lower price😬. My goal is to make buyers feel less awkward about making a lower offer, and to let them know that I won’t be insulted – I either accept or counter with my lowest price.
My actual negotiation offer on Mercari
As such, a number of things I sell are typically priced slightly higher for negotiating, but also to cover the cost of cleaning, listing, packaging and shipping the item. But I caution you to not raise your prices too high, or no one will pay for them because your competition will constantly beat out on price.
Why Do People List Things at a Firm Price?
As a seller, listing your items at a firm price can help you eliminate many annoying low-ball offers from customers looking for a bargain (find out when and how you can cancel an order on Poshmark).
People often list their items at a firm price when they know the true market value of their product. Or they might recognize the item is in high demand and low supply, or because they think they are offering a deal.
But sometimes they’re wrong. I’ve seen people list pre-owned products at a higher price than the cost to buy them new. Of course, that may be perfectly acceptable for certain items in ultra high demand.
But, there are times when the seller has not done their research to see what the actual sales of comparable items are. And at some point, if the person wants to sell the item, they will need to lower the price.
The flip-side is when you’re listing a popular item, you may encounter buyers who thrive on the hunt for the deepest discount they can get. Or you might get other cheapies that just don’t want to spend a dime. And for whatever reason, they approach you for bargain basement prices.
In general, some are resellers trying to buy things on the cheap, and then there are real buyers just trying to get something they like at a good price.
As a seller, adding “firm price” to your listing helps you save time fielding low-ball offers that aren’t worth your time. And you can also use it if you’d rather to keep the item rather than let it go at a price lower than you’re asking.
What is the Difference Between Firm Price and Fixed Price?
You’ll see both of these terms whether you’re a buyer or reseller, so you’ll need to know what they mean. You already know what a firm price means, but what about a fixed price?
Fixed Price
A fixed price refers to a price that the buyer will pay regardless of any costs the seller incurs. It is non-negotiable. This is where the firm-fixed-price contract comes into play.
With this contract, the buyer or customer purchases a service or product from the seller or contractor. The buyer pays this amount no matter what it costs the contractor to deliver the services or products. They can’t tag on extra costs to the final price.
No matter how long it takes for the seller to finish the job or deliver the product, the customer still just pays the agreed-upon price. Even if the contractor gets less profit or takes a loss in the end. If they finish quicker, they make more money, if it takes longer, they get less profit.
An example of this type of contract would be one between a freelancer and a client where the client just pays the fixed price.
So, “fixed price” and “firm price” are actually very different and shouldn’t be used interchangeably.
Final Thoughts on Firm on Price Meaning
Now you know whether you should make lower offers on firm price listings and whether you should list your items at a firm price as a reseller.
Don’t be afraid to make an offer as a buyer. But I would still wait before making a deep-discount offer. You may choose to avoid shopping these listings altogether unless it is an item you are really interested in.
And as a seller, listing your items at a firm price can help you avoid rude low-ball offers.
You also learned not to use the terms firm price and fixed price interchangeably as they do not mean the same thing.
The nice thing is that as the owner of a shop, closet or store, you can do whatever you want!