Secondhand stores price merchandise they received at no cost, which removes the usual anchor. What replaces it is a set of rules designed to move volume through limited floor space.
The constraint is space, not cost
Donations arrive continuously and unpredictably, in quantities that exceed what a sales floor can display. Sorting capacity and shelf space are the binding limits.
Pricing therefore aims at turnover. An item priced to sell within its allotted weeks frees space for the next arrival, which is worth more than a higher price achieved slowly.
This is why prices cluster into a few standard tiers by category rather than being set item by item, which would consume labor the operation does not have.
Rotation schedules govern the floor
Items are tagged with a color or date marking when they reached the floor, and each week's cohort is discounted on a published schedule.
Unsold goods eventually leave the floor entirely, moving to bulk outlets where merchandise is sold by weight rather than by piece.
Beyond that, unsold textiles enter a global secondhand trade or are processed into industrial wiping cloth and fiber, which is where most donated clothing ends up.
Some categories are priced separately
Staff pull items with recognizable resale value, including certain brands, media and collectibles, and route them to online listings or dedicated cases.
This practice reflects the arrival of resellers who arbitrage the gap between floor prices and online markets, and it captures part of that margin for the organization.
The result is a two-track operation in which the floor sells ordinary goods cheaply while a smaller stream is priced closer to market.
Charity and retail are not the same entity
Some chains are nonprofit organizations funding programs from sales. Others are for-profit companies that pay nonprofits for donation rights or operate independently.
Storefront appearance does not distinguish them, and donation bins in parking lots are frequently commercial operations.
Anyone donating with a particular cause in mind can check the operator, which is disclosed in filings and on signage under most state rules.
Supply has changed the merchandise
The volume of low-cost apparel entering households over the past two decades increased donations sharply while lowering their average quality.
Sorters reject a substantial portion outright, and processing costs rise as quality falls, which pushes pricing further toward volume.
Stores respond by narrowing what they accept, which is why donation guidelines have become longer and more specific.