Product pricing is never a straightforward conversation. Our team strives to be a positive liaison between our suppliers and customers, providing both with fair market value. However, a combination of many factors impact the final price of a product, including:
Market Conditions – Our industry is not immune to global market conditions. Is there too much supply of a specific product? Is the US dollar strong or weak against other currencies? Is demand strong? Are there conflicts in regions where product is normally sold. All of these examples and more play a role in where pricing for any specific product lands. Our team keeps a close eye on these global market influencers and shares them everyday with our suppliers and customers.
Supply and Demand – Simple economics is sometimes the biggest factor in the influence of product pricing. High demand + low supply generally means higher pricing. The inverse is almost always true as well.
Type of Commodity Being Bought and Sold – Depending on supply and demand pressures, and sometimes the time of year, certain commodities can rise and fall in price. For example, Used Toys tend to rise in price in late summer and early fall as demand rises.
Supplier Location – Location can impact price. Is it a northern location where heavier clothes might be expected? Is the location close to a port for easier access to shipping? Does the city or area have a higher socio-economic demographic profile? These types of characteristics will influence the perception of product quality, which can affect pricing.
Freight Costs – While freight costs are part of doing business in our industry, the calculation of the freight as a cost per pound has an influence on a buyer’s decision to purchase product from certain locations. Maximizing the load weight is important. Our logistics team works with many great partners in the trucking and freight forwarding business and we are always looking for the best price to balance with pick-up date availability.
Collection Method – Donations that are personally made to charities, including home pick-ups and school drives, are sometimes considered higher quality. Product collected from bins is sometimes considered lower value but we know from experience that it is never that straight forward. For instance, bin collected product from high-end neighborhoods can produce high quality, higher-priced goods. No matter what the circumstance however, methods of collection can play a factor.
Product Quality – Consistent product quality that yields strong results will always influence price and is one of the most important factors. Our customers will pay for product that they know consistently produces high yields.
Packaging Practices – Baled vs. loose cloth; bricbrac that is carefully packaged to limit breakage; clean well-stacked capsacks; baling processes that do not rip clothing….all of these are packaging factors that are taken into consideration. When we visit supplier locations we always look to help improve package processing because we know there is a direct correlation with quality and price.
Total Weight of the Load – Maximizing the weight of all loads regardless of product is critical in ensuring a good price. Customers are looking for low freight costs per pound and this can be achieved with maximum weights by law on trucks and containers.
Final Destination – The final destination of your product can sometimes influence pricing with currency fluctuations being considered, as well as government and infrastructure stability.
If you would like to learn more or talk about any of these factors and how they influence pricing for you, please contact your Account Coordinator. Contact names and information can be found here.If you are new to working with us, you can also fill out a Contact Form here and we will get right back to you.