It’s simple. The more donated product you process, the more you sell, right?
While that statement is true for the most part, one has to add several caveats.
- The quality of donations must be relatively high and the pricing must produce an average ring that can reach sales goals.
- The quantity of donations will provide the volume of goods needed to keep the store full of high value products.
- The systems used to transform a donation into a purchased item must be robust in order to sell the maximum amount.
Of the three assumptions, only the third is firmly within your control. These systems must be …
- Highly efficient
- Sustainable
- Mission-centric
- Able to handle increasing scale
When the systems implemented possess these elements, the probability for success has been maximized. The predictable outcome produces a greater product selection, faster turnover, and increased sales traffic due to repeat customer visits.
A growing thrift operation should never lose sight of the fundamental ratios and metrics. A significant percentage of donated items should and must be discarded or recycled in a ruthless fashion. Even then, only a portion of what is processed and priced will sell, regardless of the price. Unsold items need to be pulled in a scheduled fashion.
When each assumption is verified and systems are performing as expected, there will be a virtual guarantee of the direct relationship between items processed and items sold. Only then can we say, the more you process = the more you sell.