ReUsin’ Ain’t Free – Pricing at the ReSOURCE
Once in a while the ReSource staff will get a comment that goes like this “Twenty dollars for that? But youse guys (we’re in Buffalo) get it for free and I could get it at the home center for fifteen bucks!” Haggling, although officially discouraged, seems to be unavoidable. But that comment has a few elements that get directly to the heart of the ReUse and its mission.
First, “stuff” at the ReSource is priced on average at 50% of a new or similar item, with adjustments up or down for uniqueness or condition. The reference process come from hardware catalogs (e.g. Lee Valley, Rejuvenation, Van Dyke’s Restorers, Rocklers, etc.), business people (antique dealers, contractors, lumber yards, etc.) and prices of similar items in local stores, lumber yards, and online.
However, the “stuff” the ReUse collects is actually not free. The ReUse is not a passive filter that simply collects items, nor is it an illegal operation that scouts around for vacant buildings and simply helps itself to the contents. Unfortunately people probably associate the ReUse with scrappers who do steal metal and architectural salvage. I’ll address this a bit further down.
Born from and rooted in our community
The ReUse has a 501c3, not-for-profit designation so that money made from its sales is invested directly back into the organization to fund its missions, broadly described here – creating local, self-sustaining economies, job training and personal growth, especially for youths, neighborhood outreach and rebuilding efforts. Please see the webpage for more details and how ReUse is succeeding.
There is always concern about corruption, and … shoot … we’ve never seen corruption in Buffalo, have we? However ReUse was born from community activists. They all live in Buffalo and have spent, and spend, many hours working to improve neighborhoods. Many of them have risked their lives dealing with drug dealers, landlords and criminals. I know I have. They have a variety of reasons for doing it but all know what a good thing Buffalo is and how petty corruption is a major blame for the blighted state of much of the City. With Michael’s leadership (a truly impressive guy) this organization has already made things happen and its strides are rooted in hard work and dedication, but definitely not for the salaries.
But returning to why ReUse “stuff” isn’t free, it’s simple. As already mentioned, salvaging and deconstruction are legitimate, labor-intensive processes. They require a workforce of smart, healthy, young men and women. These folks are paid a salary with benefits and are taxpayers and are covered by all state laws and protections. Several new employees are young men from the local neighborhood who are learning the ropes of contractor work. All employees, top to bottom, are governed by their employment which includes a statement that no items can be taken from work sites or the ReSource. These young folks are expected to work hard. In keeping with training and treating workers correctly, safety is paramount. Helmets, gloves, glasses, ear protection, breathing protection, and lights are minimally required and cost money. And employees must have their own weather gear and steel-toed boots. The Items in the ReSource pay for this equipment.
After employees there are a hosts of costs of doing business. The warehouse rent and utilities, insurance (huge), vehicle maintenance, diesel (over $5/gallon now) and gas, tools and miscellaneous supplies like plastic wrap and masking tape. All businesses incur these costs, but remember the ReUse money goes towards the mission goals – e.g. the recent Peace Mural Project or in partial support of the Green Summer program.
A commitment to legitimate, honest business
Returning to the point about illegal scrapping operations, the ReUse only salvages or deconstructs legally-approved houses. Legal contracts with demolition companies allow the ReUse access to some houses for salvage. Deconstruction is a complicated process requiring estimating, planning, acquisition of permits, official inspections etc. All buildings are certified asbestos free before action is taken.
In some cases people donate old materials in return for a tax donation form. The ReUse does not buy salvage. There is far too much crime involved with architectural salvage – and this ruins the City. Often materials are stolen and sold for drug money. Every means possible is taken to ensure that ReSource items are not stolen.
Our “Competition”
Finally, the ReUse does not make judgments on anyone’s buying habits. However when someone says “I can get it at the home center for less money” it’s important to remember the ReUse and the ReSource is not in competition with the home centers and hardware stores. It’s a personal choice, but given a ReUse item or the exact same item, but modern-made and cheaper at a home store, I’d buy the ReSource item. The new item certainly was made by an overseas company, and the money spent on it does not go in any measurable way to the local economy. It goes to a large company elsewhere and as much as possible into the profits of the company. Again there is nothing wrong with this, however the blight of American cities and the ills that follow are in part due to loss of jobs, loss of communities (franchises rather than local business), concentration of wealth away from our neighborhoods. And this doesn’t address the use of energy and materials and the effect on the environment the new item has. So please buy the cheaper item but don’t use that as a haggling tactic, it simply is haggling a few bucks off the rebuilding missions of the ReUse.
For full disclosure, I am a volunteer at the ReUse and ReSource. I am not employed or paid in any context by Buffalo ReUse. These are my personal observations and opinions and are not influenced by anyone except myself. I am a community activist and love Buffalo, warts and all and the ReUse is a really a marvelous organization. It is more forward and successful than any organization I have seen. This is due to the people. This is one of many reasons for spending icy cold Saturdays mixing hundreds of gallons of paint and humping 400 pound bathtubs around.
Bruce Beyer Said,
July 30, 2008 @ 6:57 pm
Well written, well said, right on! The people Mary and I work for request and brag about the fact that the much of the materials we use in our woodworking efforts come from Buffalo ReUse. Those materials are the least expensive parts of the whole.
Bruce Beyer
Caesandra Said,
July 31, 2008 @ 2:28 pm
I marvel at some of the gorgeous pieces that have come into the store–I have been green with envy at many that have gone home with happy people! (I am reminded of a certain black treasure trunk and a Barbarella globe lamp . . . )
If you feel some of the one-of-a-kind items are priced too high–we frequently have promotional sales of 10-20% off. Also, volunteers who have given 25hrs of their time–get a discount coupon good for one year.
We also have found that if something is too high–it stays with us a while. Many come in and think the price is just too good to pass up–and now that treasure is in their home.
c
Robert Said,
August 10, 2008 @ 1:23 pm
Sort of odd that the pricing in the store warrants a blog post defending the pricing in the store, though I suppose this piece is addressing the issue of “price perception.” I am not a regular shopper at the store, though I have been in a few times. I get the sense that this is a grassroots nonprofit staffed with community-minded activists who aren’t necessarily retail experts. That said, one would like to think, in light of this composition, the prices would all around be judged to be *too low*, given the mission of the organization and the fact that ReUse is located in a relatively depressed area of town. While rent and utilities are always a significant part of overhead, we’re not talking Walden Galleria here. The greatest affront of the high(ish?) prices is the fact that Buffalo ReUse gains the benefit of lower rent with the *perception* (that word again) that it is located in the near East Side to be connected to Buffalo’s African-American community. Needless to say, many, though not all of ReUse’s black neighbors are priced out of the “architectural salvage” market. The dire social conditions of poverty and blight *in effect* subsidize Buffalo ReUse’s business model, which appears to primarily target the middle class consumer who decides his or her kitchen needs a little historic panache. Michael Gainer and co. can’t afford to set up shop in an area that more closely matches the “target market” – those with the inclination or money to pay a premium for say a small piece of hardwood trim. While I don’t know for a fact, I would wager that, like many to most nonprofits in Buffalo, ReUse has an all-white board of directors and an all-white staff (at least in terms of the salaried decision-makers). Ultimately, this is less a criticism of Buffalo ReUse and more an indictment of American society and urban policy in general. We certainly don’t like to live in black neighborhoods, but we don’t mind setting up shop there to save on rent (I used to live in DC and the club district in Southeast was an utter obscenity in this regard. They literally had police escorting white party-people through African-American neighborhoods). In short, I’d advise driving a short blocks to St. Vincent’s thrift store on Main St. instead. It’s free of suburbanites, and you can buy a decent chair there for 10 bucks. ReUse will charge you $50.
Kevin Hayes Said,
August 10, 2008 @ 3:33 pm
Most of our chairs are $5. We aren’t charging those high thrift store prices!
The first thing I ask when someone says “Buffalo ReUse’s prices are too high” is “Precisely what are you talking about? What item, at what price?” We sell many different kinds of things. The same item will appeal to entirely different “markets”, who have different ideas of its worth. Setting prices is inherently a subjective activity, as is the perception of those prices. Short answer – we can’t please everybody, and don’t expect to. We want to set our prices to maximize sales while still having a sustainable margin. Maximizing profit is way down on the list.
I price some items high because I’m not wholesaling, at least not yet. If an antique dealer comes in and buys all my glass doorknobs, I’m pricing too low and selling wholesale. The part of the store that contains antique items of architectural salvage doesn’t exist to serve the antique dealing community. It’s there mostly to serve people restoring old houses. By the way, those aren’t just white people, you know. Plenty of nice old houses on the East Side, and plenty of people of color living in places other than the East Side.
Most of our building materials average half the cost of something equivalent at Lenco or Home Depot. Average doesn’t mean everything is 50%; instead prices range from 35% to 75%. Also, if you can’t find the equivalent material at a local mass-market retailer, I’ll price it at the low end of my best estimate of a fair market value.
For example true 1″x8″ clear Douglas Fir is hard to come by; we recover it occasionally from door jambs or other interior trim such as baseboards. It’s beautiful, high-quality material. When I sell it for $1.50 to $2.50 per linear foot it’s still priced way below the same item elsewhere (if you could find it). But if you’re a customer who’s comparing it to No. 2 pine at Home Depot, it seems not to be a bargain. I research prices all the time and have a good idea what things are worth and what our particular market will bear. Most of our customers are quite pleased with our prices, as borne out by their repeated visits and referrals to friends and neighbors.
As for your speculations about our board of directors, staff, target market, location etc., let me say this: We’re a new, fast growing and fast changing organization. Look at us in six months and we’ll be different. While we were indeed started by “white people”, our board is no longer 100% white. We have a strong commitment to hire people of color for all positions, but at the same time believe in hiring the best candidate who presents him or herself, whatever ethnicity they may be. As for our target market, it’s simply everyone in Western New York and the Niagara Peninsula. People from all over that area from all different backgrounds have found our store and bought from us.
Kevin Hayes
Store Manager
716-882-2800
Ian MacDonald Said,
August 10, 2008 @ 8:40 pm
Awfully negative, but typical of Buffalo. I detect some grudge against Michael, perhaps the idea itself. A sour grapes response perhaps.
As progressive civil people, I would invite this person to come and perhaps observe the operation itself. It probably won’t change his opinion but at least his concerns may be addressed.
I would ask this person to meet the neighbors, Bernard, Willie, Emma,and others and talk to them himself.
I would ask him to spend the day in the store, meet the actual shoppers, the workers, and talk to them.
I would ask him spend a day with the deconstruction crews and see what they are about.
Finally, if this person’s opinions are as strong as his commitment to ending poverty and the ills that go with it he might come and share some ideas or volunteer some time to work in the store, the community gardens, mentor some of the workers, teach a class on practical skills (carpentry, resume writing, computer programming, electrical, diesel mechanic, getting into college, starting a business, art, proper nutrition, …whatever), etc… etc… We’ll provide the space and an audience, perhaps even some snacks from the community gardens.