Op Shops

Why are Op Shops becoming so expensive?

Why are Op Shops becoming so expensive?

Thanks to Desley for contributing this piece in response to some recent discussions on op shop pricing on the page and group. Desley is an op shop fan who has been following the page from almost the beginning and has several years first hand experience in managing an op shop in Brisbane.

I hear this cry every day so I have to put pen to paper again to explain NOT justify the current situation of “Op Shops”.

Maybe the larger charities should be renaming their Thrift Shops Boutiques; Second hand stores or something similar as the Op Shop of today is not and will never again be the same as the Op Shops of the past.

In my mother’s day, the Op Shops were social enterprise outlets many run by Charities to sell items that their members sold ie the Society for the blind sold wicker and cane ware that their blind members made in their workshops. These outlets evolved into thrift shops stocked with donations from the community and provided an outlet where disadvantaged people could come and buy clothing and homewares at a low price. Don’t forget in my mother’s day pensions were very small and coming out of a depression, many people struggled to live.

In the 21st century the Op Shop scene is completely different. Large Charities run huge retail outlets which fund their core business to the community. If you are confused about an organisation’s core business please check their websites and it will provide information such as Lifeline provides a free telephone counselling service to the Australian community.

These outlets are not shops that a person can pop into and get free or cheap clothing, they are retail shops not dissimilar to any other second hand dealer.

The Government regulations, insurances, rental, power and IT costs have increased remarkably.

There is a way however that a disadvantaged person can obtain free or cheap clothing through these organisations and these methods are known by the persons Social worker, case worker, the Government Department or the organisation who is assisting the individual or family. It is a rare occasion that a person can just walk through the door and receive free clothing as not even paid managers have the authority to give away stock and the policies around this are not made by them. Think of the goods that would walk out the door for free to friends and family if these polices were not in place. Op Shop stock belongs to the organisation not to staff members. These organisations are not in the op shop business to provide the general public with bargains and the sooner you come to grips with this fact, the sooner you will lose the feeling of disappointment over the pricing of some of the shops stock.

Sell it cheaper and make more money?

Sell it cheaper and make more money?

If the stock was cheaper than they would sell more

One of the best fallacies I keep hearing is “If the stock was cheaper than they would sell more”.

Having run an Op Shop for 5 years, I can tell you from experience that reducing the price on stock does not increase sales – believe me we tried that many, many times. In actual fact, a person who buys at a reduced price still only buys the item that they want the reduced price does not encourage them to purchase more items than they want in the first place. Often when we had ½ price clothing or fill a bag, people mostly opted for the one item they found OR the few items that did not fill the bag. Now this would be different if op shop stock was ALL designer brands, but as the seasoned op shoppers and volunteer staff know, designer brand donations make up a VERY small part of your stock and if you sold all this stock off cheaply you would be left with a lot of not so attractive clothing that has to be sold at a price that will not recoup your overheads.

Admit it – when you enter an op shop you head for the best brands, the best quality and the rarest items. Multiply yourself with hundreds or thousands of customers and most op shops cannot provide only the rarest or best to every shopper – this is why these items are marked at a higher price.

They are not marked at a price for a dealer to buy and make money on or for a person to buy and make a profit by reselling.

Why does donated stock cost so much?

Why does donated stock cost so much?

Stock is made up of donations which are free

Another favourite of mine is “stock is made up of donations which are free”.

Granted donations provided to op shops are not paid for initially BUT it costs the charity to sell these items unless they operate out of the back of a church or of a charity owned premises. The little community based op shop I started for a small NFP cost $10,000 to set up.

Then the ongoing costs like

  • rent (increases 5% every year in all commercial cases)
  • electricity (and you all know what that is like)
  • multiple insurances including public liability and workers compensation
  • Government fees and banking/eftpos charges (the bank even charged us $350 to close the EFTPOS account…shame on you ANZ).

I have seen it all in those 5 years

  • The women and men arriving and departing in their new BMWs and Mercedes Benzes complaining about our $15 dress/suit price when none of us could even afford the insurance on their cars.
  • The dealers who want rare and mint condition collectables for a few dollars so they can make greater profits.
  • The people who shoplifted or got their children to shoplift from us.
  • People raiding the bags of donations spilling them open on the footpath and taking the best of the items being donated.
  • People dumping a load of unusable household furniture outside the front door of the shop so I had to call on help to dispose of it before we could open.
  • The flasher who waited until one volunteer was alone then absolutely terrified her with his disgusting antics.

Our little community based op shop ran for 5 years as the overheads were overtaking our takings so by thinking out of the box we started to sell online.

The online sales eventually took over the physical shop sales so the Directors in conjunction with the auditors decided to close the physical shop.

We were not a high-end op shop, we could not sell furniture (no physical space) which brings in more money to charities but we were proud to sell ONLY items that we would buy ourselves. We were totally into recycling, clothing suitable only for rags was given to a local mechanic and framer. Kmart and cheaper chain store clothing was bagged and sent to our local women’s and men’s refuges. Anything that we thought that was too good to discard and that we could not sell was placed into a box outside the store for people to take for free.

People are also critical of cases where volunteers get first choice of donations. I can assure you this is NOT the case in all instances. Our store policy was that volunteers were not able to purchase donations until they were priced and on the shelves for sale.

As a matter of fact we had a wish list for our clients who were searching for specific items ie those who collected frogs, fairies etc etc. If we had a donation that suited we would telephone them to let them know that we had some items that they might be interested in. Many of these people became good repeat customers who thought very highly of staff and exchanged Christmas Presents and flowers etc on special occasions with the staff. Sadly the people we assisted in the community were the ones who suffered with our closure.

These people included

  • The women and children from 3 local domestic violence shelters who obtained free clothing and footwear
  • The men women and children in the local crisis care centre who obtained all their goods free from us
  • The long-term psychiatric care patients leaving the local hospital who were given free starter packs when they left a hospital to go into transitional housing
  • The local homeless who received backpacks with toiletries blankets and whatever else was needed.

 

Should there be another Qld or Australian flood we are not there to provide any of the $250,000 worth of clothing or homewares we did in 2011 and 2013.

When a house burns down the devastated family cannot walk through our doors and receive clothing to take away with them.

When local refugees need someone who can speak English on their behalf they have to find someone else.

When a person who has no money to get to the local shopping centre is passing, they now cannot call in and ask for help.

This is only a small selection of the services we provided to our local community and all these services cost the organisation money to provide.

Money which only came from the little op shop run by 4 dedicated volunteers.

So think twice before you complain about op shop prices, think about the REAL reason they exist – unless you have worked for one like I have, you have no idea what the real story is!

Thank you Desley for giving us an insight into how you and your volunteers made such a positive impact on your local community.  You sound like you achieved miracles the people you helped will appreciate for a lifetime.

Desley still fundraises for her community at Brisbane Vintage and Collectables Op Shop and yes they sometimes do post so please check out their amazing Facebook page here.

You can find this much loved community op shop at Shop 5 407 Beaudesert Road, Moorooka, Brisbane.

You can also help support their latest campaign “Women helping women in need” by donating to their You Caring Fund here.

If you’d like to tell us about what happens at your op shop, if you’d like to write a review on one of your local op shops please just drop me a message here

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8 Comments

  • Lisa February 24, 2015 at 1:43 pm

    Your article is very well written and I agree with it wholeheartedly,op shops like any business have costs and I have no issues with that at all.
    Some of the things that I have had issues with costing in op shops before to do with pricing ive listed below, but I will point out that they are only a few stores in my area and not all stores i visit are like this.
    I have 3 stores all the same size building in my area a lifeline, a endeavour and a salvos, they are all staffed by one paid manager and volunteers. My issue is that the prices in each store vary so much, one you could get a target skirt for $4 the others can be up to $12.
    This is just one example, I have a store that until recently i love to go to their prices were great and then they decided to paint the floors and walls, get a new manager and then double their prices on EVERYTHING, not cool and unjustifiable imo.
    I have also had times when i have picked up items with tags from original store still on it and the op shop price is higher, thats just greedy imo.
    I have a few times spoken to managers and even area and regional managers and both have just turned around and said the store manager/regional manager sets the prices, blaming each other.

    Like i said at the start I understand that these organisations have costs and need to run to make money to help their organisation but to have such over the top differences between stores and prices doesnt seem right to me.

  • Laura March 23, 2015 at 12:48 pm

    Great article. Op shops are businesses and have to run that way so pricing has to reflect this.
    The only time I get peeved is when I find an item in the opshop, that I know is a chain-store brand, priced higher than it would have been new from that chain store. However I just have to remember that obviously the opshop staff are not going to know all the brands and all the prices of all the chain stores out there! And of course they must have a pricing structure otherwise they would be forever working out individual prices on things.
    To me it’s pretty clear: if I don’t want to pay the marked price, then I don’t want/need the item. I have had incredibly good luck over the years finding the exact things I wanted at excellent prices in opshops, so I’m never going to moan about the prices now!

  • Coco August 29, 2015 at 6:02 pm

    Great article and well written. In a previous life I was a paid manager of a charity shop, it was a real eye-opener and until you have lived it …you really have no idea. When I took the job I thought it was going to be a walk in the park, ha… that thought ended after the first week. I lasted 12 months, and that was a very interesting time to say the least, the best and the worst of people crossed my path. Kudos to those that work hard for their charity.

  • Patricia Miles March 9, 2016 at 10:35 pm

    Yes I agree the Op shop of old has probably gone forever. I can understand that overheads may have increased costs and reduced viability for this person’s Op Shop but if they were mainly there to assist those in need then a modest increase to cover the costs would have been acceptable and they could them concentrate on their core business off helping out people in crisis, but I actually believe that most of the time these operations see opportunity to make profit. Yes those most in dire need can get items for free (packages and the like) and be assisted by social workers etc but I have worked in roles that help people access this and the hoops they need to jump through is ridiculous and difficult for them in situations that they are in – just trying to survive. My main complaint with Op shops is that they put ridiculous price tags on items that are clearly Kmart or Big W items which are really really cheap at original price but Op shops put silly prices on them or silly prices on damaged items such as cracked china etc. I disagree at the comment that they do not angle their prices at collectors etc….I think they do and you will often see English china, leather items, jewellery and other collectibles at quite steep prices. I am of the understanding that places like Salvos and the like employ valuers for certain items. I have Op shopped since I was 15 and am now 58, yes I can see its clearly profit motive and making hay while the sun shines IMO.

    • MGC March 9, 2016 at 11:50 pm

      Patricia Miles, you are absolutely correct. I was employed at one time by a very well known charity as an appraiser. I priced the more expensive women’s apparel, jewellery & household goods. These items were aimed at collectors and for items that would probably find their way onto ebay etc. However, if something was chipped, cracked etc, I would mark it down as it was deemed worthless within the profession. Unfortunately now, a broken item is considered to be as good as the item “as seen on ebay”. On one hand, I think they’re trying to beat the resellers at their own game but on the other, people can no longer afford to shop at op shops for their families or their household.

  • Ruby Tuesday March 10, 2016 at 10:23 am

    Love to Op Shop. Have been an avid Op Shopper for over 40 years, sometimes through necessity and sometimes for the thrill of the hunt. Same complaint as above – pricing! I have picked up quality items at a reasonable price and other times I have seen well used, poorer quality clothing or home wares that are more expensive than the ‘new price’ My favourite saying as I rummage through is “Tell them they’re dreaming” when I come across ridiculously priced items. Another thought is if people see Op Shops as profit making businesses they possibly won’t bother to donate their unwanted items and just throw them away instead. Much easier to chuck it in the garbage bin or put it out for council cleanup, than to bother to take it to the Op Shop. Vinnies is the best of the bunch. The others have fallen out of favour as far as I am concerned.

  • Kelly March 10, 2016 at 11:45 am

    Great post! It’s really important that people understand what it takes to run an op shop. I wrote about the subject of op shop pricing a few years ago on my blog. I’m lucky to have a few old fashioned op shops in my area that still price things quite cheaply (they still exist!). Over all I think most op shops do a good job with pricing, but a couple of the larger charity op shops, I feel, often over price clothing that is very well worn. I agree with Ruby that Vinnies is the best of the bunch. The pricing is fair and quality consistent.

  • Alicia March 12, 2016 at 12:06 am

    I’ve worked for a very big charity in the administration arm, the sales from the stores don’t go to the needy. The multimillion funds to directly into administration costs so the charities can claim that cash donations are 70-90 percent passed onto clientele.
    To exclude working people who need access to low cost gear because the shops’ management are pissed at missing out on the profit in the odd case where someone passes it on for more… Too bad, this has been happening since colonial times.

    The Problem with op shops is greed, not all the expenses associated with running the business.

    You do sell more at a lower price. But keep in mind those fill a bag sales are only for mostly older and outdated stock to clear way for new season. They are not true representation of low prices. Certain shops have completely turned me off because of price gouging.

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