How to raise profits in a charity shop

Alter_ego

Is your shop in a depressed area?

Owain_Moneysaver

Miss_Heartilly wrote: »

All usually priced at a £1 unless it's something designer then it will be either £2.50 or £3.00 (depends on who's marking it up) ...

all clothes are like new (some still have shop tags on) or in very good condition. ...

these other charity shops sell clothes between the prices of £1.99 to 3.99.

If other charity shops are selling stuff at £3.99 why are you giving away new stuff for £1?

Everything at £1 will make your shop seem very cheap (and not in a good way) and your £1 stock should really only be stuff that's been offered for sale at other shops and not sold even after mark-down.

Separate out your new / as-new clothes and put them up on a £5 per item rail. Cheaper as-new goods go on a £2 per item rail (or 3 items for £5). Aim to roughly charge 1/3 of the new price for current items.

If they don't sell after 3 weeks (and they're not obviously out-of-season etc) then move them to a £1 bargain rail.

Use Facebook and Twitter and do daily postings of new stock or just-reduced-to-clear items.

Try engaging with younger donors and buyers -- is there a local college (or even school) you could invite students from to make up a 'fashion show' from stock, which could get you publicity in the local press. "Older women in their 60s or 70s" are not high-volume or high-value shoppers - but they may be worth targeting with will-making or legacy gift appeals.

Would changing your opening hours help? If you're only open 10-4 you will miss the working-age customers you might get if you stay open to 5.30 when they're shopping and going home after work.

Charity shops do not operate on 100% profit, you may not pay for your stock (or volunteer staff) but you still have overheads eg rent, electricity, insurance, maintenance, shopfitting, etc. You should know your net 'profit' which will be the contribution your shop actually makes to the charity after deduction of all costs. If you aren't covering your costs you are actually costing the charity money and should close now.

paddyrg

How about a Dutch Auction style pricing? Goods arrive and go on the £5 rail, than after a week move to the £4 rail, then the £3 rail, then the £2 rail then the £1 rail before going for rags? I have no problem paying a charity shop a fiver or more for a nice shirt that fits me, and knowing there was fresh stock every week I'd be in there every fortnight or so and pay more that some customers who just want cheap or who sell your stuff on eBay.

Indeed a shop eBay account is a great idea, not for everything, but for things like that handbag. Have a separate corner of the shop specifically only for premium goods, or instead of selling them in the £1 charity shop they are sold in a nearby flagship/premium branch where they get more premium footfall and can get £50+ for it.

lincroft1710

Miss_Heartilly wrote: »

Like the louis vuitton handbag we got in, that I sold for £15 it's worth about £400. The bag was in perfect condition as well, didn't look used at all.

Anything of high value should either be eBayed (with suitable reserve) or sent to a specialist bricks and mortar auction house (again with suitable reserve). If it's a charity item, the auction house may well reduce or waive its sellers' fee.

Miss_Heartilly

Aquamania wrote: »

What affect did putting "a few prices up" have on turnover?

n some cases the turn over was slightly higher by about £15 - 30 nothing specracular though. but this was also dependent on wether it was raining or not.. i've noticed we do much better on a nice day[

So you think your prices are not OTT, you think the quality of stock is good, the shop is presentable, etc.
(although you said the store was recently given a make-over. What did that cost? What effect did that have on turnover?)

Not sure what it cost, I think the manager bought new cabinets to store the bric and brac and dvds.. it did look alot better when she did this. Looked more like a shop and not a jumble sale. More organised and the layout more professional (but not too professional to put people off)The quality of stock is very good.. In fact we have too much stock and not enough room. The shop is fairly small.

The effect it had on turnover..It raised turnover from about £45 to anywhere between 75-115 each day.

Why do you think people are not coming through the doors?

I don't know...I wish I did.

Why do you think those that do come through the doors are not buying more?

Again, no idea. Maybe they don't like small shops...

Have you asked those people who come through the doors these questions?

No. I wouldn't know how to approach them by this. I don't want to harass them.



You say "people often walk in and walk out at times and I am at a loss to why this is."
So it doesn't seem to me that you have any issue with getting people through the doors. What you have an issue with is converting those people who walk through the doors into paying customers.
Have you asked them why they leave the store without buying anything?
(Maybe it's to shelter from the rain/sun etc )

What does the manager think should happen? She's in charge! (or should be)
If you run the store 3 days a week, what does the manager actually do??? :huh:

The manager usually works in another shop, a much larger one. He pops down 1-2 to times a week for about half an hour. I have no idea what he does as the volunteers do most of the work.

Looking at your previous posts, am I correct that you have only worked there 4 weeks (if that?)

No, it's been about 4 months but I am actually quite good at the job considering i've never done retail before. A few of the ideas I've put in practice actually worked to raise turn over, I would just like to raise it alot more.

Miss_Heartilly

Thanks, I will mention the Ebay thing to the manager. I am not sure if the charity has an ebay account or not.

tiz

Try your local facebook selling sites. It's an existing audience of local people looking for cheap/good deals and who expect to go and collect items they want. No more effort for them collect from the shop rather than someone's home. I'd pick several items a day to highlight - you'll need a photo and short description and to put the item aside as soon as someone expresses an interested on fb to make sure you don't double sell.

It means you can show what you have in to hundreds/thousands of locals without them having to go to the trouble of physically visiting. When they do visit encourage them to have a browse and see if there is anything else they want.

FB selling sites are also a good place to get an idea of what second hand items go for locally. The cheaper you set the prices the more shoppers you need to make the same amount of cash - don't sell stuff ridiculously cheap just so you can say things are £1. Have a £1 rack but don't under price things or people will buy from you and sell on and take your profit.

Savvy_Sue

Miss_Heartilly wrote: »

The shop is in a small town with two other charity shops just 2 minutes away, not sure if this makes a difference or not. these other charity shops sell clothes between the prices of £1.99 to 3.99.

Having a cluster of charity shops is generally reckoned to be a good thing: I know I like popping into several on the same trip. :-)

But it sounds as if you are the 'cheap' shop, and that's not necessarily a good thing. You don't want to be the expensive shop, but pricing at a similar level to the other local ones doesn't seem unreasonable. Who gives guidance on pricing?

Miss_Heartilly wrote: »

We get quite alot of good donations so quality of stock doesn't seem to be the issue.. people often walk in and walk out at times and I am at a loss to why this is.

Clearly they didn't see anything they wanted to buy! Sorry, but I reckon I buy on about one visit in ten these days. I know what sorts of things I'm looking for, and I'm quite fussy: material must be natural fabric (no polyester); colour and size must be right; shirts and blouses must have a breast pocket; trousers dresses and skirts must have pockets.

But you might be able to make it easier for people to find their colours and sizes - my initial comment about the size indicators on the coathangers is relevant here! I'm less likely to look properly if they're all the same colour. If I can't quickly see my size I'll move on.

lincroft1710 wrote: »

Anything of high value should either be eBayed (with suitable reserve) or sent to a specialist bricks and mortar auction house (again with suitable reserve). If it's a charity item, the auction house may well reduce or waive its sellers' fee.

Absolutely this: that handbag (if genuine) ought not to have been put up for sale at that price.

ComicGeek

I've bought a few comics and graphic novels from charities on EBay - specialist items that are worth £15/£20 to me, but probably in some charity shops at 50p/£1. But understandably difficult for volunteers to have specialist knowledge in all areas. I've actually paid a higher price for an item benefitting a charity than a private seller.

The other part of making profit is reducing overheads. Have management looked at rent costs, energy running costs etc, and looked into ways of reducing these? Perhaps find out from the other charity shops how much rent they pay and compare. Are there any basic improvements you can do to lighting etc to make it more efficient, that can a significant daily cost.

I would have thought it very common for people to browse and not buy anything. I go into every charity shop that I pass looking for any suitable toys for my young son - probably find something in every 5th shop as the local grandparents seem to buy everything first!

comeandgo

If you are trying to get younger people in is the window display aimed at them?
I agree about the better items gong on e bay or a raffle? If I had given a Vuitton bag to a charity shop and they let it go for £15 it would be the last item they got from me. If items are very good or new you should price them appropriately. I think the £1 price suggests the items are rubbish or very old fashioned.