Pricing below comps feels safe.
It feels like you’re being realistic.
Most of the time, it’s just silent profit loss.
This page explains when pricing under comps makes sense, when it doesn’t, and how to tell the difference without guessing.
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What “pricing below comps” actually means
Sold comps are a record of what eventually happened.
They are not a recommendation.
They don’t tell you:
- How long the item sat
- How many offers were declined
- Whether the seller exited out of frustration
- Whether demand was rising or falling at the time
Pricing below comps without context assumes every sold price was efficient.
That assumption is usually wrong.
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When pricing below comps makes sense
Pricing under comps is justified when:
- Demand is proven and consistent
- Similar items are selling frequently
- You want faster velocity, not maximum margin
- Your item is undifferentiated and competing on speed
In these cases, you’re trading margin for certainty.
That can be a rational decision.
The mistake is doing this automatically instead of intentionally.
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When pricing below comps starts killing profit
Pricing below comps becomes a problem when:
- Demand is weak or inconsistent
- Your item already has limited buyers
- You’re compensating for uncertainty with price
- You haven’t tested market response yet
Lowering price does not create demand.
It only rewards buyers who were already waiting.
If your item isn’t moving at comp price, cutting below comps often just shortens the loss timeline.
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The hidden cost most resellers ignore
Every price cut does more than reduce profit.
It also:
- Lowers your negotiating leverage
- Anchors buyer expectations
- Signals urgency or uncertainty
- Reduces the value of patience
Repeatedly undercutting comps trains you to solve every problem with price.
That habit compounds quietly.
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A simple way to know when “too low” is too low
Ask yourself this:
If I priced this item at the current comp, would I feel confident holding it?
If the answer is no, the issue isn’t the price.
It’s your confidence in the item.
Lowering price to escape discomfort is not a strategy.
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How to test price without destroying margin
Before cutting below comps:
- Hold price and watch buyer behavior
- Allow offers instead of reducing price
- Evaluate differentiation honestly
- Reassess demand, not just numbers
Price should be adjusted after feedback, not before it.
Silence is feedback.
But it doesn’t always mean “go lower.”
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When going below comps is the correct exit
There are times when cutting below comps is the right call:
- Inventory is draining time or space
- Demand has clearly shifted
- Opportunity cost outweighs potential upside
- You would not rebuy the item today
At that point, the goal is exit discipline, not profit optimization.
That’s not failure.
That’s control.
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The real pricing question
This is the question that ends the debate:
If I didn’t already own this item, would I actively buy it today at this price?
If not, pricing lower won’t fix the underlying issue.
It just delays the decision you already know you need to make.
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What this usually connects to
Chronic underpricing is often tied to:
- Weak sourcing confidence
- Poor inventory selection
- Fear of holding inventory
- Lack of exit rules
Those are system problems, not pricing problems.
This page exists to help you stop leaking profit quietly.
Pricing too far below comps doesn’t create urgency — it creates doubt.