Charity shops in the UK are now raising in excess of £290m every year: in the process, they’re providing volunteering opportunities to more than 200,000 people and paid employment to around 17,000, as well as raising vital funds for the charities they support. For charity shop managers, however, there are some tricky decisions to make – such as how to price the goods that are sold.
At Nisyst these are our three top tips for pricing your charity shop stock.
1. Keep an eye on current fashions
Do you know what’s the hottest catwalk trends? Those items are likely to be in higher demand and can therefore command higher prices. If flared jeans are back, price them accordingly. If there’s a particular colour that’s bang on trend, put it at the forefront of your displays and charge a premium price.
2. Price to your area
If you’re located in a wealthy area populated by those with a higher income, price slightly higher than you would in a lower income locality. This increase will account for the difference in disposable income between areas, and is also likely to reflect the type of stock that your locals will be donating for sale. More affluent areas will be more likely to donate designer items and higher priced goods, so charging higher amounts for such items is more than justified.
3. Check out the competition
If there are other charity shops nearby, it’s certainly worth heading out on a reconnaissance mission to find out what they charge for different items. If your prices are significantly higher, you may well find that customers steer clear of your shop and visit the others, knowing that they’ll get more for their money. If you price too low to encourage more shoppers to your store, you’ll be cheating yourself out of potential revenue. Stick to roughly the same pricing as the competition to ensure maximum benefit.
Of course, your pricing strategy depends on your own circumstances and you may wish to try different options to see what works best and maximises income. For help with the EPoS side of things, please feel free to contact us.