Posted September 15, 2017
Habitat for Humanity RFV ReStore Pricing Process
Our overall goal is to sell items at a great value for our customers, as quickly as possible and to help raise money to build homes. The variety, uniqueness, and volume of items received at our ReStores present a daunting pricing challenge for our team. Our trucks typically deliver three truckloads of items to our ReStores every weekday, plus we get numerous drop-offs from donors daily. We receive items at every price point, so inventory can range from inexpensive, common household items to extremely high-end treasures. So, we have items valued from less than $1 to over $10,000.
Achieving appropriate pricing is of paramount importance to our team. We make every effort to ensure that pricing is as consistent as possible. The first thing we do when we receive new inventory is review comparable items in the store to price the new item similarly. With consideration to quality, condition, quantity, size, and experience with similar items, our prices are typically at least 50% below normal retail prices. Some items are priced considerably less at 75% of retail before monthly discounts or flash sales. We research unusual items, to identify their value (via online searches, auction catalogs, and at times an appraiser’s valuation).
Depending on item type, we tag most items with a white or yellow tag. The white tags are for the vast majority of our items (about 90% of our inventory). The yellow tags are for more unusual, premium items that may take longer for the right buyer to be interested (less than 10% of our items). The tagged items are dated on the day they are priced and displayed. For every month the item stays on our floor:
- the white tag normal items are reduced by 20%, up to 60% off
- the yellow tag premium items are reduced by 10%, up to 30% off.
We often complement our monthly discounts with flash sales on certain categories when we have extra inventory.
We have two exceptions:
- No discount on items that we purchase new in bulk, e.g., paint, rugs, carpet squares, faucets.
- Items that start under $20 are not dated, so, they do not automatically decrease over time (but, are sometimes discounted in a storewide sale).
While prices are not negotiable, as we want to honor the intent of our donors to raise money for our homebuilding mission, if a customer thinks we might have analyzed an items value incorrectly, we welcome their feedback and may on occasion re-price the item.