HomeNEWSMark up: The million dollar market

Mark up: The million dollar market

Hyped up collaborations usually result in an extreme marked up re-sale, even just days after the original sale. This handy re-sell site shows the high percentage of which popular items are being marked up in price for desperate consumers.

There is no limit to how high an item can be marked up, if there is a demand the price will always be meet.

StockX is a re-sell platform that specialises in hyped up streetwear such as sneakers, bags and watches. The site features brands such as Supreme, Chanel, Louis Vuitton, Hermes, Gucci, and Rolex.

The sale of luxury accessories has never been a cheap business, with up market prices falling well over the $5,000 range. However, with hyped up items such as bags and sneakers that have had a lot of press surrounding their release, the quick sell out results in re-selling – for often a much higher price.

As well as guaranteeing authenticity of the items sold on its site, StockX also shows next to the item the percentage of which the price has been marked up.

For example, the Supreme x Louis Vuitton collaboration sold out within hours, and items were put up on the resale site that afternoon. Highsnobiety reported that the most marked up item was the Porte Carte Simple Red card holder, with a 199.8 percent mark-up from its RRP of USD$305, the lowest ask for the item is $890.

Source: Highsnobiety

The pieces that hold Supremes iconic bright red and white writing and doing better on the resale market than its black counterparts.

The bogo-red version of the porte carte card holder has a strong average mark-up of 200 percent, while the rest of the top ten pieces’ veer from 150 percent to just shy of 100 percent.

The bright-red Christopher backpack is an average of $5,173 more expensive than its original retail price of $3,900.

Despite the average mark-up of 100 percent, it is the Rolex section of the site that unsurprisingly brings in the most revenue.

The highest bid for a watch comes in for the Rolex Daytona 116506 at $38,500, expensive yet short of the $57,500 asking price.

The sites portfolio section shows the market values for each item, how many have sold on re-sell page and the average price of the items. Browsing users show the amount of money that an individual puts into their own re-sell collections.

User TommyP1031’s has sold 51 items from the site, all of them being limited edition Nike Air MAG Back to the Future (2016), that held an average RRP of $4,500. TommyP1031 has sold each 51 set for their new market value of $26,713 (or US$1,362,363).

There are 156,187 portfolios on the site, with each brining in thousands of dollars in revenue with each re-sell.

As long as there is demand for a hyped product there will always be space for a re-sell market. For individuals with $20,000 to spend on a single item, availability is the only barrier.

These market places show that the appeal for limited stock brands doesn’t disappear when they sell out, in fact it only drives the interest up even more. 

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Courtney Devereux is a Communication Consultant at Clear Hayes and freelance business writer.