"Salvage" items at Target

[TheLittleRoo]

I had no idea about salvage at Target, but hey, if they can "mark up" the price and count full value toward a tax write off, can I do the same with our stuff?

That sounds like a ripe area for tax reform to me. For what it's worth, Target's tax basis wouldn't be full retail anyway, would it? Wouldn't it be their cost of inventory? Why would selling price have anything to do with the valuation of the donation? Isn't it what it COST the company, as that's what they have IN the goods?

 

[MOMOFC&C]

I worked at Target up until a few weeks ago and at our store anything that was found salvage on the floor we let the customer have for the last clearance price that we sold it for.

As far as floor models go, we never sell the floor models unless it is someting seasonal like the light-up reindeers or something like that. When they put the furniture together in the back room, they don't use all of the pieces, they just put it together so you can see the look. They also usually have holes drilled through them so they can be zip-tied to the wall. As far as the small appliances go they usually will cut the electirc cord, so you wouldn't be able to use it anyways.

 

[asoko]

I would think selling a floor model of a baby product is a liability. If it wasn't put together correctly and someone purchased it and their child was injured, you get the picture. I don't think they were doing it just to be mean.

That's exactly what we were told at our target. They can't sell the floor models because they are liable if something happens.

 

[TupperMom7]

I think that whole situation is rediculous! If the item is on the shelf I would think they would have to sell it to you. I really feel sorry for the clerk and store manager if that ever happens to me!

 

[chocovrdmicears]

I worked at Target up until a few weeks ago and at our store anything that was found salvage on the floor we let the customer have for the last clearance price that we sold it for.

As far as floor models go, we never sell the floor models unless it is someting seasonal like the light-up reindeers or something like that. When they put the furniture together in the back room, they don't use all of the pieces, they just put it together so you can see the look. They also usually have holes drilled through them so they can be zip-tied to the wall. As far as the small appliances go they usually will cut the electirc cord, so you wouldn't be able to use it anyways.

This is great information. Thank you for explaining it!

 

[tavettava]

i know the Target here will let my principal go and get stuff out of salvage before they donate it to Goodwill.

 

[JB2K]

...according to my Target connection (a very reliable source, I might add), here's the scoop.

"Salvage" defines those items which may be incomplete, damaged, or certain seasonal merchandise which could not be sold at 90% off during the post-season clearance sale (it is to be generally assumed if something can't be sold at 90%, it's not going to sell, at all).

This is punctuated by the fact this type merchandise will ring-up as $0 at the registers.

Once it's determined to be "salvage", these pieces of merchandise are then packed up, palletized, and loaded on a return truck to the nearest Target Distribution Center (DC). From there, the merchandise is either donated to a local charity within close proximity to the DC (and in some cases, if the merchandise is serviceable, you might see it pop-up at Big Lots, or a similar- type store).

In other words, these things do not simply vanish to the mysterious "back room" that the public never sees (in reality, many local Target stores have very little room off the main sales floor to store merchandise which is not currently for sale inside the store).

As for floor models of certain merchandise, I think there may be some sort of consumer protection law prohibiting these to be sold to the public. I recall seeing at a Sears store what I thought were perfectly-working baby strollers only to see a tag sewn-into the seat stating that it was a floor model and not for sale.

Hope this helps...

 

[torinsmom]

Well, if they have been determined not to be able to be sold, why would they be out on the floor still? I mean, this was not one item, it was about 50 items on a clearance endcap. Since they were out there, I think they should have had to sell them to me. Besides, I was there when Christmas items went to 90% and these were not there. They must not have been brought out until 90% was over, and they would have sold had they been there.

I understand about floor models. Those guys slap the stuff together to get it on the floor. No way I would trust my child in a crib they put together.

Marsha

 

[JB2K]

Well, if they have been determined not to be able to be sold, why would they be out on the floor still?

If seasonal merchandise ended-up on a clearance endcap, clearly, someone either didn't know thier merchandise or wasn't doing their job correctly. It happens a lot in retail.

What I mean by "not knowing the merchandise" is there are a lot of team members who may view what we know as a stocking stuffer (i.e., the mini-games sold only during the Chirstmas season) as something that belonged in the toys/games department -- that's easy to confuse as there are no holiday-specific markings on these things.

That said, the rules are if any item rings-up $0, it cannot be sold.

 

[maxiesmom]

I understand tax credits and all that but in these big corporations sometimes they forget about a little thing called customer service.

I once spoke with a Kohl's manager about reducing a toy since the packaging was majorly damaged. She said no, I pushed a little harder pointing out that they would never be able to sell it in the condition it was in. She told me it would be better for them to take it back and crush it than discount it anymore for me. Thanks lady. Just because it is true doesn't mean you have to say it to me.

This is why Kohls doesn't get much of my business anymore.

You would rather be lied to? That doesn't make any sense.

If it was only the package that was damaged and not the product, why should they have marked it down? That makes no sense either. You take the toy right out of all of that packaging anyway. The package being crushed may have made it easier to open too, which would be a bonus.

 

[robsmom]

I had no idea about salvage at Target, but hey, if they can "mark up" the price and count full value toward a tax write off, can I do the same with our stuff?

That sounds like a ripe area for tax reform to me. For what it's worth, Target's tax basis wouldn't be full retail anyway, would it? Wouldn't it be their cost of inventory? Why would selling price have anything to do with the valuation of the donation? Isn't it what it COST the company, as that's what they have IN the goods?

I think you are right. I think that they would not be able to deduct at sales price, they would deduct at what it cost them. I think that a business probably has little or no "incentive" to do this. "writing it off" or calling it a charitable contribution is no different than selling it for zero. they are almost always going to be better off selling it for something other than zero. They don't improve their bottom line - even considering the tax impact. They are better off selling it to you for the 10%...but they have good legal reasons not to have done this. Once they have salvaged it in their system they have said that it is gone and they gave it to charity, they can not sell something they have deducted. Unless they have good processes for "unsalvaging" it, they could have serious issues. I suspect this is what drives the policy.

 

[snarlingcoyote]

But Target can take some portion of the salvage as "Goodwill" to the community if it is donated to a charitable organization, correct?