Position on Pricing

 

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From: Fred Shelfer, President/CEO

Goodwill Industries – Big Bend, Inc.

We are sometimes asked to explain the way we price items and are even criticized because some shoppers think our prices are too high, since, after all, the merchandise was given to us.

True, it was donated, but it costs us to sell the items that were donated. There is a Donation Attendant who takes the items in, separating the good from the waste. They remove the trash while moving the sellable items to the sorters. Then the Sorters hang and tag the clothes so that we can tell how long they are in the store. They price and clean the wares. Sales Associates then hang the clothes and place the wares in the store along with electronics and furniture that has been priced, cleaned and/or tested.

Once the customer makes his selection, the Sales Associate rings up the purchase and bags the merchandise. Meanwhile at the home office, the accounting department records the sale and sales tax is collected and paid. Then, deposits are made at the bank so that checks can be sent out to our employees, landlords, venders, and our insurance companies just as all other companies do. At the same time, trucks are moving the merchandise, material and supplies from store to store. These are some of the direct cost of sales. The indirect costs include administration, human resources, advertising and public relations.

You can easily see why we cannot afford to give items away. But could we sell them for less?

We could, but we don’t for two main reasons. First, the person donating the goods expects us to get the most out of the donation. The community places that obligation on us and we take it seriously. Second, while many people benefit from the constant supply of affordable clothing, wares, electronics and furniture to supply their family with necessities, that is not our purpose. It does not fulfill our mission as established over 100 years ago. Our mission is to assist all those who need help in obtaining, keeping and advancing in meaningful and self-supporting employment. Therefore, to support our mission, we try to make the most out of what the community gives in the way of donations and support.

In addition, it can hardly be said that because of our pricing some people cannot afford to shop with Goodwill. After our clothing and hard lines have been in the stores for three weeks, they are marked down by 50%. Anyone whose budget will not allow them to purchase items they need at Goodwill’s already low price, can buy for ½ price almost anytime from a good selection. If that isn’t low enough, after a period of time, we move unsold items to the Good Cents Store where merchandise is sold for pennies on the dollar.

Please be assured that we appreciate all our customers and donors and that we work hard everyday to meet their expectations and needs.

Thank you for your continued support.