Inflation also affects the used market

The increase in the cost of many consumer goods has fueled Quebecers’ interest in the circular economy, and particularly in the purchase of second-hand items. However, businesses that specialize in the sale of used items are also being hit by inflation, but their leeway to counter its effects is limited.

At Orapé, a Plessisville-based organization that operates a second-hand items store that serves, among other things, to finance a food aid service, prices have been increased by an average of 10 to 15%.

“It’s the maximum margin that we have given ourselves, explains the director, Valérie Bédard. We had very strategic thoughts to maintain a sufficient profit margin while remaining affordable for our customers and respecting our basic mission, which is to offer items to low-income people. »

If the organization owns its building, it still has to deal with an increase in electricity costs or for minor maintenance work, salary increases to be granted to staff, but especially the increase in the cost of gasoline. , a budget item 30 to 50% more greedy than before.

“We go get the items from people’s homes, and our truck doesn’t run on air,” recalls the director with humor.

Since the price of second-hand products sold at Orapé ranges from a few cents for trinkets to around $150 for household appliances, the organization’s room for maneuver remains slim.

“You have to keep in mind that people come to buy second-hand with the aim of finding something beautiful, good, inexpensive and that they don’t expect to pay sea and wonders,” adds Mme Bedard. There are people who understand that we have no choice but to increase our prices, but others who consider that we should practically give away our articles because they are given to us. »

As for Renaissance, which has 34 addresses in Quebec, it is above all the rapid and sustained increase in salaries that has eroded the organization’s budgetary margin.

“Of course we had to increase our prices, but we couldn’t keep up with the inflation percentage,” says general manager Éric St-Arnaud. We did market research beforehand to make sure we were on average. »

“We don’t want to pass on all the increases we’ve had to pay, but when rents, taxes, salaries and gas go up and we offer salaries above the minimum, we have to adjust to keep our employees above the poverty line”, continues the manager.

In addition to reviewing the entire transport system, which has reduced the mileage traveled and, consequently, the number of liters of gasoline consumed by 10%, Renaissance plans to automate some of its operations to reduce its operating costs. exploitation.

“We started talking about computerization, robotization in certain sectors, such as fast checkouts, lists Mr. St-Arnaud. We are looking in that direction because the cost of labor is rising and we want to be more efficient, but we are always going to put people to work, because we are still a non-profit organization that has mission is to help people enter the job market. »

Target non-essential goods

The Gens au travail organization, which manages the Meubletout and Boutique aux fringues businesses in McMasterville, Montérégie, has adopted a different strategy to avoid penalizing the most disadvantaged, with a very heterogeneous clientele.

By doing so, second-hand essentials will not cost more to customers, but if they want to buy second-hand goods that are more beautiful or more luxurious, they will have to pay more, says the director, Marie Motte.

“Someone who needs a chest of drawers or basic crockery will be able to get them for cheap, but for exceptional objects, such as a piece of furniture vintage or a beautiful set of dishes with gilding, we will raise the price, ”she adds.

Delivery costs have also been increased since 2022 to compensate for the increase in the price of gasoline. “It was too much for us to take on,” said the director. But fortunately, it does not impact customers who come to pick up the items directly at the store. »

To succeed, however, the organization needs a greater supply. “We still have a lot of awareness-raising to do so that people think of us rather than putting their furniture on the road or bringing it to the ecocentre,” notes Ms.me Clod.

Customer base on the rise, prices stable

Other organizations have opted instead to increase the price of their items little or not at all.

“We are lucky, because we are not very affected, underlines Danielle Pettigrew, president of the Center of the generations, which manages the Grenier of the generations, in Boucherville. It is not inflation that has increased the price of our items. »

To compensate for the soaring price of gasoline, however, the organization began to impose delivery charges two years ago.

The increase in traffic, and incidentally in sales, prevented SOS Dépannage, in Granby, from raising its prices too much. “Besides 50 cents here and there, nothing major, mentions the director, Patrick St-Denis. Sales are doing well, we have seen an increase of about 20% over the past few months, so that does not justify raising our prices considerably. »

The same scenario took shape at the Ressourcerie du Granit, in Lac-Mégantic, where the diversification and increase in clientele made it possible not to affect prices. “Since 2004, we have had to increase our prices by approximately 16 to 18%, or less than 1% per year, summarizes the director, Robert Bureau. We keep in mind that the people who come, whether or not they live in poverty, come here to buy things at that price and that it must remain accessible. »

Thanks to its traffic, the Ressourcerie du Granit still manages to generate profits, part of which is redistributed in the community, despite an increase in the cost of landfilling, gas and wages.

This dispatch was produced with the financial assistance of the Meta Exchange and The Canadian Press for the news.

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