A Thrift store Raised there prices do to the Economy

United States
April 8, 2009 11:46am CST
I dont understand this why on earth would a thrift store raise its prices in a bad economy? Now the prices are just not affordable anymore and I will not shop there. People go to thrift stores to save money. They said they had to raise prices due to the economy. To me if I had a thrift store I would keep my prices cheap because if its a bad economy people dont have money to spend. Do you think this makes sense?
5 people like this
25 responses
• United States
8 Apr 09
I agree with you moneymommy, if I had a thrift store the prices would stay the same...you would think in this economy they would be busier and doing better and wouldnt have to increase there prices... thats why they are a thrift store. I havent been to ours in a couple months so I dont know the prices right now... but that just doesnt make sense to me.
3 people like this
• United States
8 Apr 09
I actually work at a thrift store called Platos Closet ands its more high end than Goodwill but I can tell you from first hand experience we are losing money. On a normal Saturday $3-5,000 was a good amount to bring in and now we're happy just seeing $2,000. There are Sundays where normally we would reach $1,000 since we are only open 5 hours but now its lucky to see half that come in. We use to be able to go through clothes in record time but now the clothes aren't selling as fast and the clothes are beginning to pile up in the back room waiting to be put out. Yeah there are the people that then start buying from our store instead of the mall, but overall people are cutting back on expenses that aren't a need such as clothing. So you get more customers... but you're losing on the amount they buy and when they buy.
2 people like this
• United States
9 Apr 09
Just maybe a couple months ago I heard how well thrift stores where doing because of the bad economy. Because they offered cheap prices etc.. Why would they want to lose business now?
1 person likes this
@bayernfan (1430)
• Canada
9 Apr 09
How successful a business is depends on a lot of things and can vary from region to region. anotherxidentity makes another valid point here. A business can be doing very well one month and then, all of a sudden, the next month revenue can be poor. It is difficult for businesses to gauge when customers will makes purchases, how much customers will be willing to purchase and what customers want to purchase oftentimes. If consumers change there habits abruptly, a business can find itself in great difficulty extremely quickly. Some business expenses don't change and their costs cannot be reduced. Even thrift stores have expenses that they must incur in order to continue operation even if revenue decreases. Thrift stores may get the merchandise they sell for free through donations, but not everything that they need to operate is free. If customers stock up in earlier months and cut back on spending at the store later or if they decide to make their clothes last longer instead of making new purchases, then the thrift store will be negatively impacted and may be forced to increase prices to cope. If the number of donations or the quality of donations decreases because people decide to hang on to their items longer in order to cut costs themselves, the thrift store will need to charge more for what they do have to compensate. These actions should not be taken lightly because an increase in your prices may cause purchases to decrease and revenue to drop further. What does a business do when it can't earn enough to cover operating expenses? I am sure that many out there face the same difficult problem and can relate.
• United States
8 Apr 09
I have seen price increases at the thrift store also. Not sure how they justify it when everything is donated. I realize they have overhead and workers, but the workers are pretty much paid minimum wage and there are no benefits. I know a lot of thrift stores check prices on ebay and price their stuff accordingly. Not to mention the workers that get all the good stuff first and then they sell it online. Thrift stores have increased prices and most have a lower quality of merchandise, doesn't make much sense. I'm just glad its getting close to garage sale season, much better bargains there.
3 people like this
• United States
9 Apr 09
Yes the garage sales are good.
1 person likes this
• United States
8 Apr 09
No, this does not make sense at all. What I think is happening is that companies across the board are raising their prices due to the economy because they feel they can. You are right that thrift stores are raising their prices and so the crowds are not shopping them as much. The quality of the items is dropping off as well. Here is something as interesting: As a member of the elite unemployed (5.7 million of us in the U.S. alone, if not more), I have to be on Food Stamps which is not my idea of the way to live. We become complacent because we have the assistance. But here is what is interesting: Because of the stimulus package, more money has been flooded into the Food Stamp Assistance programs across the nation. This means that we now get an added 20.00 or more. This is great. But, here is the catch. Food prices are on the rise. So, in essence, we are getting the same amount of food even with the raise. Go figure. Nice discussion.
• United States
9 Apr 09
Yes I heard about that raise. Doesnt make a difference with all the prices going up though. Still will be spending more then ever.
1 person likes this
@emilie2300 (1891)
• United States
9 Apr 09
No it dose not make any sense they don't have to pay for supplies to bring in there stock it is donated so theres no charges like the stores. I don't see the reason for it. If you think about it and they were smart and keep the prices the same they would be the once profiting right now because that's where most people are going to shop so they can afford things. That's shame. They figure everyone else is doing it we can to but there hurting there selves they could be bringing so much in now it's a big bussiness boom for them. They may want to reconsider what there doing.
2 people like this
• United States
9 Apr 09
If you think about it and they were smart and keep the prices the same they would be the once profiting right now because that's where most people are going to shop so they can afford things. Exactly!
1 person likes this
• United States
9 Apr 09
I know there loosing big time and it's there fault for doing that. Hope fully they will realize it and lower them again.
1 person likes this
@ANTIQUELADY (36488)
• United States
8 Apr 09
i imagine there overhead went up such as rent, utilities etc. i don't think they would go up just for the heck of it if they didn't have to. everybody is trying tom make a living.
2 people like this
• United States
9 Apr 09
I really hope thats the reason.
1 person likes this
@jessi0887 (2794)
• United States
8 Apr 09
This seems ridiculous to me. I am already trying to get a second job to afford clothes. I have been shopping mostly at thrift stores.
2 people like this
• United States
9 Apr 09
People that are short on funds shop at thrift stores because they are cheap. If there not cheap why shop there?
1 person likes this
@cher913 (25890)
• Canada
8 Apr 09
no, but like everything else, their costs are on the rise too. i shop at a thrift store and their prices are still pretty good but like you, i cant see spending $12- for a used sweater when i can sometimes get a new one for that price at the mall!
2 people like this
• United States
9 Apr 09
I know at those prices you can go to Walmart.
1 person likes this
@blueunicorn (2409)
• United States
8 Apr 09
When thrift stores get to the point that people can't afford to shop there, we know we are in trouble. I personally think so many businesses are using the economy as a good excuse to raise prices. My husband when to the DMV today to get a duplicate driver's licence (long story). Anyway, it used to cost $4 for a duplicate. Today it cost him $25. They said it was due to the economy. At some point this spiral has got to stop!
2 people like this
• United States
9 Apr 09
Soon where not going to be able to shop anywheres if this keeps up.
1 person likes this
• United States
8 Apr 09
Its called inflation and guess what every business is going to be affected by it - even thrift stores. How can you tell them to keep their prices low when now they are paying more to rent the building, have electricity, pay their customers, and for items like hangers, racks, detergent, bags, etc. Its a lot of costs and if the costs for those items go up, they have to increase their prices. Its business. No matter how much we hate it - it happens and the only way to get them to drop their prices again is to stop inflation and bring things back to a lower cost.
2 people like this
@bayernfan (1430)
• Canada
9 Apr 09
Inflation can come about quickly and get out of control in an instant. Inflation can wreak havoc once it catches on, and devastate business and customer alike. An increase in prices at a store could be do to inflation. Even if customers continue to shop and more purchases are made at a store, profits can go down if inflation is cutting into the bottom line. Revenue can increase through an increase in sales, an increase in prices or both. Profit increases only when revenue increases and expenses stay the same or decrease, or when revenue stays the same and expenses decrease. An environment where expenses continue to increase causing prices to continue to go up is inflation. A good business, just like a good a person, who has done and continues to do the right things can be impacted negatively by others they have to interact with in order to operate their business. The other businesses/people we rely may be in difficulty for poor practices, mistakes or through no fault of their own. Just like us. Inflation begets inflation and it is incredibly difficult to stop. http://www.answers.com/inflation A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services. anotherxidentity makes a valid point.
• United States
9 Apr 09
Thrift stores do have the advantage of free donations to help them keep prices low, but the price of overhead (electricity and labor) have probably gone up a bit. Perhaps the rising prices at normal retail outlets has compelled them to raise the price at their own store also, as their prices will still look attractive compared to the normal retail establishments.
• United States
9 Apr 09
That makes no sense to me. The same thing happened in my town, too. It is now cheaper to shop at WalMart than it is to go to our local Goodwill!!! What's the point of calling yourself a thrift store if your prices aren't thrifty?
@Shar19 (8236)
• United States
8 Apr 09
I don't think it makes sense either. Every once in a while I'll shop in a thrift store to see what bargains I can get. I noticed that some things were actually cheaper at Walmart. Now does that make any sense?
2 people like this
@deedeehall (1144)
• United States
8 Apr 09
it really does not make sense to me to raise prices any where during a bad economy.people claim they have to do this because people are buying less well do you really think they will buy more if you raise the price?i think the lower the price the more you well sale they are really going about things the back wards way.
@derry123 (611)
8 Apr 09
not at all .. they get everything given so I dont know why the prices have risen .. I dont think they have in the U.K. OUR THRIFT SHOPS ARE ALL VERY BUSY RIGHT NOW .. I WILL CERTAINLY BE ON THE LOOK OUT FOR ANY INCREASES *
@deebomb (15322)
• United States
8 Apr 09
Thrift store have the same expense that most other business have except their merchandise is donated. They have to pay for utilities, insurances, probably rent, and for the employees wages. When these things go up so dose the price of their merchandise to cover these expenses. I'm sure that they would rather keep the cost down but can't. I have thought that Good will was a bit high any way because I can get the same clothes new if I watch the sales for the kind of clothes that I wear.
• United States
8 Apr 09
In some ways it makes sense because, with the prices of everything going up then the amount that they have to pay for their items has gone up to unless it is a place that everything is donated to them for free. Then the only reason to me that would make sense would be if they are having to pay more to be able to run the store,like for lights, rent,etc.
1 person likes this
@maximax8 (28560)
• United Kingdom
1 Aug 09
A thrift store is the same as a charity shop in my home country I think. Poorer people like to purchase clothing at thrift stores. In a recession many more people are short of money. In an economic downturn some people will stop spending as much as they usually do. A thrift store still has to rent a shop for its trading. It is a shame it has had to put its prices up. It doesn't make much sense but it might be worried it will go out of business.
@winterose (39918)
• Canada
12 Apr 09
the thrift store has to make money or they don't have a business, they have to pay rent, they have to pay employees, they have to pay heating and maintenance etc, their cost go up so they have to put prices up, they are not a charity they are business people trying to make a living in this economy as well.
@cicisnana (775)
• United States
9 Apr 09
I go to a lot of thrift stores because I like to find different things, and way to many of them are already overrpriced. I mean, this stuff is given to them for free. Even if they pay employees they can make decent money without charging $3 for a shirt, or $5 for a pair of jeans. I'm sorry, I just do not agree with their ethics of pricing.
@deejean06 (1953)
• United States
9 Apr 09
Hi moneymommy... That is so strange - a thrift store is supposed to be somewhere to go when you don't have much money. A thrift store by me is closing - truly weird since all of their inventory should be donated items!