How do we Establish the Value of a Rug?

This is based on something I wrote this for one of the discussion boards. One nice woman had tried to answer a question about value but she muddled it up so badly the answer I had to clarify rug value

This is based on a real rug a 90 Line Chinese rug that I recently appraised.

In the trade this is called a 90-line Chinese or a Chinese Aubusson Rug. These rugs flooded the market in the late 20th century. They are thick durable rugs but the are not in high demand on the retail market used but are not inexpensive when we need to buy a new one.

• High retail is ticket Price or Asking Price.
• Retail is actual normal Selling Price.
• Wholesale price is what the store pays.
• Fair Market is what a willing buyer and willing seller would agree to pay in an open market.

So we take a $1000 Chinese Rug at wholesale. Many stores will price it at $9,999 as the high retail or Asking Price. No one normally pays this.

Legit stores take the $1000 rug and sell it for $2000 maybe $3000.

The Scammer stores have the same rug with a ticket price of $9,999 but the sale is 50% to 80% off.

So the $1000 rug sells normally for $2000 to $5000.

But think about a new car when you drive it off the lot you just cut its value in half because it just became a used car. Every day you drive the car it is worth a little less.

So if you bleed this rug they will sue you for at least $9,999. The Insurance Company will settle it for $2000. The wholesale is$1000.

But what is the real value of a used Chinese rug filled with urine? Perhaps $2 a square foot or less.

So the same rug is:

High retail $9,999

Retail is $2000

Wholesale price is $1000.

Fair Market is maybe $200. Keep in mind many other rugs hold their value much better than a 90 line Chinese rug.
As I reread this I think it worth saying that a dirty and stained or damaged 90 line Chinese rug has no market value.