1. Thrift Store 101 Running Successful Stores for Mission and Profit
Presented by: Ralph Middlecamp

2. Mission Centered And the crowds asked him, "What then should we do?"
He said to them in reply, "Whoever has two cloaks should share with the person who has none.
Luke 3:10

3. Mission Centered
"the coat hanging unused in your closet belongs to the man who needs it; the shoes rotting in your closet belong to the man who has none;… You do wrong to everyone you could help, but fail to help."
St. Basil the Great

4. A Tradition of Service
Originally the Society operated clothing closets for the needy which grew to “salvage bureaus” to sell the excess clothing. Along the way these bureaus opened up for sales to the general public and developed into the thrift stores of today.

5. A Significant Presence
SVdP Thrift Stores in the USA have Gross Revenue of over $150,000,000
Property and Equipment valued at over $175,000,000

6. A Significant Presence
SVdP Stores employ over 3,000 people (full & part time)
Provide over $70,000,000 wages and benefits

7. A Significant Presence
Stores give away over $10,000,000 of merchandise to people in need
Stores provide over $32,000,000 income to the Society to support its work

8. A Significant Presence
Expect your Thrift Stores to be SUCCESSFUL
They are:
Obligated to serve our clients with respect
Obligated to create a ROI for the community
Obligated to compensate our employees fairly
Obligated to uphold our good reputation

9. Who’s in charge? Governance matters
Structure must comply with By-laws and the Rule and control rest with the elected leadership
Due diligence vs. micromanaging
Develop job descriptions for committees and staff (do it when things are working well)
Charities are not exempt from laws
Great presidents not always competent business leaders

10. Changing Thrift Environment
Once thrift stores were mainly operated by a few well known charities.
Today we operate in a very competitive environment.

11. Changing Thrift Environment
The current competitors have increased in number and differ widely in their size and sophistication

12. Changing Thrift Environment
For profit businesses have become significant competitors

13. Management is the key to success
Key Concepts of Thrift
Management is the key to success
Hire and reward competent people
Appoint oversight committees that understand their function
Do not accept excuses
Success results from daily attention to details

14. The primary competition is for the donated goods
How We Compete?
The primary competition is for the donated goods
Clothing is the most desirable donation
Convenience vs. Loyalty (promote mission but you must provide convenience)

15. Create and understand a processing plan that works best for you
Going With the Flow
Create and understand a processing plan that works best for you
Central processing vs. in-store processing
Analyze comparative advantages
Minimize downside & maximize upside

16. The back of the operation drives the Thrift Store
Start at the Back
The back of the operation drives the Thrift Store
Donation reception
Handling recycling and waste
Truck unloading

17. The back of the operation drives the Thrift Store
Start at the Back
The back of the operation drives the Thrift Store
Sorting and preparing donations (material handling & ergonomics)
Pricing store product
Processing “rags”

18. Let’s Talk About the Rags
Recycling for added income
Define terms & industry standards
Without efficient textile recycling system thrift stores get constipated

19. Budgets & Plans
If you don’t know where you want to go, how do you know when you get there?
+ Revenue
- Staff
- Space
- Everything else
= Profit (yes it is ok to use the word)

20. Staffing – volunteer or paid
Fully paid staff = 60%+ of revenue
Hire good people, pay them fairly (underemployment isn’t charity it is injustice)
Volunteers require nurturing and direction (and sometimes firing)
Opportunity losses with volunteers
Comply with FLSA
Challenges of mixed approach

21. What gets measured gets done
Know What You Expect
What gets measured gets done
Measure production workers outputs
Be careful what you measure (unintended consequences)
Is it the worker or the system?
Sales per square foot = ?
Budget is a planning tool and a measure of success

22. Our employees are not our “clients”
Manage People
Our employees are not our “clients”
Our employees are our greatest asset and liability.
Failure to manage employees properly puts the mission and the organization at risk.
Provide the tools & opportunity to succeed but employees who do not contribute must be dismissed.
Board must support management

23. You Have A Theft Problem
All thrift operations have an employee theft problem
Create a culture of integrity.
Make it easy to be honest.
Do not tolerate theft of any sort for any reason.
What is stolen is not the biggest problem.
Productivity
Reputation
Work environment

24. Retailing the Recycled
Have management and committees that understand the business

25. Advice from a Dutch Uncle (are you proud of this?)
What is that smell?
Are your shelves dusty?
How about dusty bunnies on the floors?
Would you use that bathroom?
Is there litter in your parking lot?
Walls and signs sure look dingy?

26. What in store for me today?
Everyone who comes into your store wants to buy something
Customers know your inventory, do you? – shop for yourself
Listen – do you hear hangers moving?
$ / sq. ft. – what moves?
Too much of a bad thing (it happens fast)

27. Customers are always valued (but maybe not always right)
Thrift customers are challenging
Should not get too close
-you have conflicting interests
Get customers to love your store for the right reasons
Too many policies project negativity

28. Be Successful for the sake of our mission
Expect your Thrift Stores to
serve our clients with respect
create a ROI for the community
compensate our employees fairly
uphold our good reputation

29. The Thrift Store
The main driver is no longer price: Experience Recycling Unique Product Supporting Mission Buy Local

30. Why Shop at St. Vincent de Paul?