National Stores Committee National Assembly 2018

Back Room Presentation 2018 Minimize Handling Speed of processing Sorting Color Code rotation Pricing Store level processing Central location processing Questions and Answers

Back Room Sorting Linens Salvage Clothing Tagging Salvage Shoes Sorting Table Clothing Sorting Table Salvage Clothing Hardlines Table Tagging Salvage Ticketing

Color Code Rotation 5 Week color code rotation system Red, Green, Yellow, Pink, Orange Regular price for 3 weeks 4th Week color is at 50% off 5th Week color is pulled back to warehouse and baled.

Single Price Points on clothing Good, Better, Best pricing $1 t-shirt, $2 collar shirt, $3 blouse, $4 slacks or dresses, $5 shoes examples…. Advantage is speed of processing Eliminates guessing and has price consistency Easy to teach to staff and volunteers Good, Better, Best pricing Set standards on clothing items based upon brands and quality Improves profit by increasing donation price point Can be very objective Ease of uniformly changing price points, benefit of the non-standard

Store Level Processing

Store Level Processing

Store Level Processing

Store Level Processing Advantages: Processing associates at stores can also do other tasks versus just processing donations at a central location. Minimizes trucking costs Minimizes handling cost Disadvantages: Inconsistent pricing Inconsistent quality control

Centralized Processing Drive-through donation collection centers at stores Initial pre-sort from donor into appropriate cages, carts, gaylords for ease of truck unloading at Processing Center.

Centralized Processing Clothing raw donations into cages to line load, conveyor belt pull and pre-sort hanger stations pricing stations tagging racks for stores Quality inspection occurs primarily at hanging station, double-check at pricer

Centralized Processing Miscellaneous raw donations into carts presorter (trash, pound store, seasonal, saleable, recyclables) gravity-feed shelving pricers packers palletize for stores Quality inspection occurs primarily at pre-sort, double- check at pricer

Centralized Processing Equipment/Tools – accessible and maintained

Central Processing Advantages: Disadvantages: -standardization of price points throughout the multiple stores -development of “experts” in processing and pricing of donations -ability to redistribute the product appropriately – stores with an abundance of donations are able to supply those stores with lesser donations -cost effectively utilize large equipment – balers, pricing stations, conveyors, recycling bins -processing takes place in warehouse location, generally at a less cost per-square-foot expense, rather than taking potential sales floor space at higher retail site rate -adequate processing systems in place -adequate space to store unseasonal product or overflow for later distribution Disadvantages: -trucking costs -product flow dependent on trucking schedule -pricing and quality feedback dependent on store communication

Questions and Answers