Pricing Models

Pricing models define how recommerce businesses respond to market conditions, grade-based value differences, and competitive pressure. From automated repricing engines to condition-tiered pricing strategies, the right model determines whether you capture margin or leave it on the table.

Key concepts

20 terms

Automated Repricing

Automated repricing is the process of algorithmically adjusting the listed price of a refurbished device in real time based on competitor prices, platform rules, inventory levels, or predefined margin floors - without manual intervention.

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Condition-Based Pricing

Condition-based pricing is a model in which the resale or buyback value of a used device is determined by its assessed physical and functional grade, resulting in differentiated prices for the same model across different condition tiers.

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Competitor Price Monitoring

Competitor price monitoring in recommerce is the systematic tracking of resale and buyback prices offered by competing platforms, retailers, and resellers for specific device models and conditions - enabling data-driven pricing decisions.

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Dynamic Pricing

Dynamic pricing in refurbished electronics is the automated, continuous adjustment of resale or buyback prices in response to real-time market signals - including competitor pricing, demand patterns, inventory levels, and device lifecycle events such as new model launches.

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SIMlock (Carrier lock)

SIMlock is a software restriction applied by a carrier that limits a device to that carrier's network, reducing the addressable buyer pool and therefore resale value.

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Depreciation curve

Depreciation curve is the rate and pattern at which a specific device model loses resale value over time, usually expressed against months since launch as a percentage of original retail price.

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Trade-in spread

Trade-in spread is the difference between acquisition price (buyback or trade-in) and resale price, expressed as absolute value or percentage of resale.

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Batch pricing

Batch pricing is the valuation of a group of used devices as a single transaction rather than as individually priced units, common in B2B wholesale mixed lots.

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Bulk lot valuation

Bulk lot valuation is the process of pricing a high-volume inventory lot of used devices as a portfolio, using model mix, expected grade distribution, defect probability, and resale time-to-liquidation rather than unit-by-unit retail assumptions.

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Multi-buyer strategy

Multi-buyer strategy is a buyback acquisition model where intake offers are routed through multiple competing buyback partners in parallel, selecting the highest offer per device instead of committing volume to a single buyer.

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Price comparison engine

A price comparison engine (also called a comparison shopping engine) is a system that aggregates prices from multiple sources and presents them in a unified view, enabling users to identify the most competitive offer for a given product, model, or condition.

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Market-adjusted pricing

Market-adjusted pricing is an approach where buyback or resale prices are updated continuously from current secondary-market data rather than set manually at fixed intervals.

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Bonus offer (trade-in bonus)

Bonus offer is a temporary increment added to base buyback or trade-in value, usually tied to commercial events such as model launches, campaigns, or loyalty tiers.

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Channel price parity

Channel price parity is the practice of maintaining consistent resale prices for the same device model and condition across multiple selling channels, including own website, marketplaces, and B2B, to avoid channel conflict and prevent buyers from arbitraging between platforms.

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Grade spread

Grade spread is the price differential between the highest and lowest condition grade for the same device model in a given market, expressed as a percentage of Grade A price.

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Margin floor

Margin floor is the minimum acceptable margin threshold below which a resale or buyback price will not automatically move, set to protect unit economics after platform fees, processing costs, and return risk.

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Price elasticity

Price elasticity in recommerce is the sensitivity of demand to price changes for a given device model and condition grade, indicating how much conversion changes when prices are adjusted up or down.

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Price floor

Price floor is the lowest price at which a seller will list a device or accept a transaction, set to ensure minimum margin after platform fees, processing costs, and return risk.

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Unlocked device

An unlocked device is a used handset with no carrier or network restriction, able to operate on any compatible network worldwide.

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Wholesale pricing

Wholesale pricing is the pricing structure used in B2B transactions for bulk volumes of used devices, typically at a significant discount to consumer retail to account for volume, processing risk, and transfer of grading and resale responsibility.

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