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Sales
Sales Practices
Practice: Operate an easy to use and comprehensive Point of Sale (POS) system
Where: Habitat for Humanity of Metro Denver, Building Material Reuse Center, ReNew Building Materials and Salvage
Description: Consistent use of a comprehensive and computerized Point of Sale (POS) system. A successful system is one that speeds customer checkout and tracks business performance information. Effective POS systems have the capability to collect and collate customer information, track type of sale, and to produce sales by category, margin, turnover rate, etc.
Pros:
- Facilitates staff training and orientation
- Promotes consistent use of the POS system
- Detailed product tracking
- Real-time detailed business reporting, monitoring and forecasting
Cons:
- Cost prohibitive for some small businesses
- Time and level of detail required incompatible with some businesses
Feature: Provide showroom space for high value items
Where: ReSource, The ReBuilding Center, RE Store (WA)
Description: An area of the facility dedicated to showcasing high-value, unique or noteworthy product. Some operators use these spaces to showcase “sets” in a neat and tidy environment. These spaces are also great forums for value-added products (e.g. furniture built from reclaimed materials, contractor services, etc.).
Pros:
- Showcase high-value products
- Appeal to a “higher-end” customer base
- Increased sales price
Cons:
- Space requirement
- Product mix may not be conducive to individual display
Practice: Advertise and describe prices relative to new product retail cost
Where: The Reuse People, ReSource, RE Store (WA), The ReBuilding Center, The Reuse People, Building Material Reuse Center, ReNew Building Materials and Salvage, Restore Home Improvement Center
Description: Pricing is consistently based on percent cost reduction from new product. Keep staff knowledge of new retail prices current by encouraging hardware store visits, newspaper reviews, and provide access to in-store internet research.
Pros:
- Knowledgeable staff
- Consistent pricing
- Increased sales price
Cons:
- Staff time demand to keep up to date on prices
Strategy: Purchase complimentary new products to fill out retail offering
Where: Habitat for Humanity of Metro Denver, ReNew Building Materials and Salvage, Urban Ore
Description: Purchase new materials to fill out retail product offering. Purchased products are often displayed in bulk and with manufacturer packaging and labeling.
Pros:
- Consistent product - easy stocking and management
- Volume selling
- Provide consistent desired product to keep customers coming in
Cons:
- Non-profits have to ensure value of purchased product is not greater than 15% of sales (IRS guideline)
- Purchased products require detailed inventory tracking
Feature: Dedicated hardware area
Where: Second Use, ReSource, Urban Ore, Ohmega Salvage, RE Store (WA), ReNew Building Material and Salvage
Description: Area of facility dedicated to showcasing unique and/or valuable hardware. Items are neatly arranged, packaged and organized. This area might also include good lighting and climate control equipment.
Pros:
- Showcase high-value products
- Appeal to a “higher-end” or niche customer base
- Increased sales price
- Encourage customers to linger
Cons:
- Space requirement
- Difficulty in displaying non-uniform and unique items (e.g. antique doorknobs)
Practice: Rules for pricing common items
Where: Habitat for Humanity of Metro Denver, ReSource, Restore Home Improvement Center
Description: Develop consistent pricing formula for standard items, for example, price windows by the square foot. The pricing rules can be displayed for customer information and use, see example.
Pros:
- Limit price negotiations
- Facilitate customer self-help
- Increase consistency in pricing
Cons:
- Unique, high-end or low-end products may be mis-priced
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