The Puzzle of Donated Furniture
Furniture donations can be expensive
Welcome to the Thrift Retailer blog, where we talk about the business of thrift retail. Today’s post is about managing donated furniture.
Fewer and fewer thrift stores are accepting this category, for good reason. Those that do are selective about what they actually take.
The trend seems to have started with Covid. Furniture was an early casualty, especially upholstered. Not knowing the risks, at first, many took the safe road and simply quit taking these goods.
That trend continued and has picked up steam in the industry. In many parts of the country, Goodwill no longer takes any furniture. There are sound financial reasons to be careful with this segment. It can be a winner or a financial drain.
With few exceptions the sales per square foot of residential donated furniture is lower than any other category. I have found that to be true everywhere I have ever been associated with.
2,000sf of sales floor converted from furniture to textiles and housewares can double or triple the revenue in that space. Assuming sufficient donations are coming in, the choice can be simple.
Another factor is the hidden costs in this category.
Any time large heavy goods are loaded/unloaded/moved around there is a heightened chance of an employee or customer accident or damage to something.
Employees at one store that I know of were team lifting an old heavy hide-a-bed when one of the employees tore a hamstring. He did nothing wrong and was following the proper process, yet he was hurt. If you have had this type of injury or know someone who has, you know it is painful.
He was out for some time and the incident resulted in an expensive workman’s comp claim. That one claim chewed up the equivalent of several months of donated furniture sales.
I have also paid off claims for vehicles damaged loading/unloading furniture. Even though it’s general policy not to do either. In a customer service-based store it’s hard always to say no, even if it is the right business thing to do.
Large furniture has to be secured in some way to ensure that it doesn’t fall on anyone. This is extra labor time, and there is always the chance someone will miss this important step.
Unlike textiles, books, shoes, and many other categories there isn’t a strong backup market for furniture. If it doesn’t sell it’s likely going in the dumpster, an added expense.
Unfortunately, this is an area where a larger-than-normal number of donors are dumping rather than donating. Many communities and trash services charge extra for large item pickups, so people decide their over-loved couch would be a great item to “donate”. Or they couldn’t get anyone to take the huge old china cabinet.
In some areas, it’s hard to dispose of large old furniture.
The first line of defense is the donation attendant or the pickup driver. They have to be trained and empowered to say no, and backed up by management.
Anyone that even might answer the phone has to know what is and is not taken and should always include a caveat, that we make a final decision on whether or not we can take something when we see it.
Even when they send pictures (which is a good practice for pickups) the picture doesn’t give the fine detail needed. Stains and pet fir often don’t show up, they might have photographed the “good” side and not shown the torn-up side or back that would make it unsellable.
I can’t even count the number of times someone has claimed they called and were told we took XYZ. It’s easy to say and hard to disprove, still, that can’t change the result.
Not long ago I was walking to my car at the end of the day at a store when someone pulled up to donations with a sad-looking king-size mattress in the back of their truck. I walked over to chat with them. They started with, “We called and were told you take these”. I know who worked that day and am confident no one said anything like that.
A long discussion ensued, where I finally had to affirm we don’t take them, never have, and can’t take this one, and concluded the conversation. The couple wasn’t going to argue me into taking it.
I went to my car, backed out of the parking space and they were still sitting under the donation canopy. Since I was now the last car in the lot, their plan seemed obvious. So I parked my car in the middle of the lot, sat there, and sat there. Nearly fifteen minutes later they pulled out. So I continued to sit there. Sure enough, a couple of minutes later they drove by, expecting me to be gone. So I waited a bit longer and they did not come back, and it wasn’t sitting there in the morning.
Furniture no one wants, or are hard to sell:
Mattresses - need I say more about that?
Hide-a-beds - a mattress in hiding.
China cabinets - Mom and Grandma loved them.
Dated entertainment centers designed for tube tv sets.
Pianos and organs.
Particle board anything.
Depends on the condition:
Upholstered furniture, especially fabrics.
Large heavy dining sets
Vintage and antique
Occasional chairs
Some that generally sell:
Dressers
Small to medium size dining sets.
Side and occasional tables.
Vintage and antique furniture can be complicated. There is old and valuable, and there is just old. Most are just old. Some categories appear to be valuable on Google but can be very hard to sell for decent money in a thrift store.
There is a difference between residential used donated furniture and “newish” furniture that hasn’t spent time in someone’s home. There is a good business in donated furniture from furniture stores, warehouses, and manufacturers. The amount that can be charged is much higher, the turn better and add to the quality look of the store rather than detract from it.
One thrift store I worked with had a La-z-Boy distribution center near it. They developed a great relationship with management. As a result, they had a steady stream of customer returns, misorders, discontinued, and seconds. That one relationship turned into their biggest segment of sales. Over time they became a go-to stop in the community for great furniture at amazing prices.
The danger to me was how much of their business depended on that one relationship. Still, it was a big win for them and will be as long as that relationship stays healthy.
When reviewing this category consider all of the costs and how much gross revenue it generates. It can be a win, but the wiggle room isn’t found like it is in other categories.
Tim Gebauer
Thrift Retailer - Dedicated to the business of thrift retail.
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