The More You Process = The More You Sell

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.

  1. The quality of donations must be relatively high and the pricing must produce an average ring that can reach sales goals.
  2. The quantity of donations will provide the volume of goods needed to keep the store full of high value products.
  3. 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.

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