Today I am making my husband go to work late so I can check out this AWESOME rummge sale I saw being prepped. Plus right now Deigo is on the telly so its a good time for a blog post.
Supply, demand and market.
Supply: goods available for purchase. At your rummage sale, these are determined by your used junk, er, treasure. Depending on what you have, that will attract the type of customer... which is your:
Market: who is available and who desires to purchase your stuff. For example, I am in the market for gently used kids outdoor toys. I frequent those sales with outdoor appeal. Someone like me has to tote the ankle biters along so the more things out on the curb the better so I don't have to spend time sifting. The outdoor toys are something I really want... that is:
Demand: what is wanted for purchase. In an economy like this, all the good rummage sales sell out early. I know the demand for said toys is high so hence, I force my husband to wake up early and shovel food into the kids mouths with me so we don't miss that bouncing horse. Other years past, rummage sales were fewer and less frequented. But this economy has many considering the gently used and cheapskate is replaced with the term recessionista.
Market is usually pretty constant, though it can vary with economic and political conditions. But supply and demand can set your price point and you can use this to your advantage.
If there is a glut of curbside outdoor toys either in driving around or on craigslist, and they vary from $20-$60, you can safely offer $25 and if they pass someone else will take it... there are that many that are not selling so someone will meet your price. Supply is in surplus, demand is low and sellers need cash. On the other hand, if people are buying these babies at $50 and they don't stay on the curb pretty long, you probably need to decide if you need it at that price because the supply is limited, demand is high and people pay more.
There are more complicated supply and demand curves/explanations but this sums it up in a nutshell. Also think of it the next time you shop in the produce section. A bell pepper is not native to Wisconsin and can go for as much as $4 a pop in the winter (aka 9 months of the year.) In summer they are down to 99 cents each... and they carry many more to meet that demand. Cinco de Mayo time, people pay the $2 for an avocado but the rest of winter they have to price them at $1.50 or less to even make it worth their while to carry them... to meet their MARKET.
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