During Q2 2018, users of ThriftTrac saw an average increase of 10% in sales year-over-year.
After a turbulent start to the year, largely due to winter weather, the second quarter of the year brought some relative consistency in sales. As such, it’s the best time of the year to evaluate the successes and failures of your strategies. Outside factors have less impact on your thrift operation during the middle of the calendar year.
The most notable change between 2018 and 2017 is the increase in sales. In each month, a 10% boost is seen. Interestingly, the number of units sold was essentially the same. The reason for the increased sales is heavily tied to the increase in the average price per piece.
Average Price Per Piece
A rise in the average price per piece occurs when the quality of the merchandise being sold is also increasing. (If prices are arbitrarily increased, sales suffer since value to the customer has decreased.) Those responsible for pricing items must be constantly aware of the value of each item to push the average price per piece higher.
The sustainable increase in average price per piece suggests more donations were received, enabling teams to select more, higher quality items for sale. To that point, the number of items produced did not substantially change from 2017 and even decreased slightly. Pricing of the “right” items, rather than every item, resulted in the increase in sales.
The third quarter has a high likelihood of showing similar trends, due to the relative calm of the middle months of the calendar year. It’s also a great time to refine strategies in order to see immediate effects before the busy fall season.
Diligence in product selection and pricing correctly can have a huge impact. What changes can make you more effective in these two tasks?
Knowing the metrics that matter help you maximize your sales and profit potential. ThriftTrac makes capturing data easy so you can make informed decisions.
Metrics from thrift operators located across the country are compiled and analyzed monthly to identify trends in the thrift industry. Data includes all ThriftTrac users with locations having at least 1,000 customer transactions (retail) and 1,000 units processed (production).
ThriftTrac is business software for the thrift industry that turns data into actionable intelligence, driving greater profitability for thrift operations.