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If a business goes bankrupt, why can they open another business?

You trade your old product (furniture, electronics, appliances), it goes for charity, and you can instantly upgrade it for a new product with a discount (10-30%). Would this eCommerce business model work?

  • Keeping in mind companies spend 10% of it's revenue for advertising purposes, they can incorporate this 10% into the product discount.

  • Answer:

    With the charity paying the cost of the discount (10%) to the retailer, picking up the item and distributing it?  Perhaps.  One problem I can see is whether the old item can indeed be reused.  I've a friend working for Value Village (http://www.valuevillage.com/).  First, this is already part of their business model (see: save 30% when you donate) and secondly much of what gets donated is unusable (folks substituting donating for paying at the city landfill).

Ken Adney at Quora Visit the source

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Is this discount over list price (MSRP)? Then, it may not be enough. People search and can typically find web sites or stores  that sell items below list price (Costco, Walmart, Amazon, etc.), so as a retailer the model competes with existing discount stores.

Anonymous

Marks and Spencer in the UK already run something similar to this idea with Oxfam, a UK-based international NGO. If you donate clothes to Oxfam that include one piece of M&S clothing they give you a £5 voucher to use when you spend over £35 at M&S. Details here: http://help.marksandspencer.com/support/legal-and-ethical/oxfam-clothing-exchange

Olly Benson

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