Inspiration from a Garbage Can
A rusting garbage can: $1. Who would buy this metal garbage can?! Looks like it's doomed to go to the incinerator. But look! People will probably pay $5 for this wisc red garbage can with Bucky and the motion W.
SWAP's Headache
Currently, SWAP has 4 semi loads of file cabinets and over 50 desks that weighs over 230lbs. Just the labor to handle these desks would almost exceed its cost of $30. Not to mention that on average, every week SWAP brings in 50 desks and 100 file cabinents. How are you supposed to profit from these?
Earth Day Theme: Reuse
Wouldn't it be nice to put this office furniture to use? Not only are they in "almost perfect condition" described by one of SWAP's employee, but also "every government agency has them." Therefore, the supply is virtually unlimited. This furniture is attractive for small businesses or individuals who do not have a large budget, especially after some customization!
Work with Pride
Take an unwanted rusting metal desk, paint it with a little school pride, and you end up with a desk you wish you had in the office and at home. If you are a true football fan, then how about "working" at Camp Randall everyday? Not enough school pride? Why not just add a few file cabinets to your office furniture collection? Oh, don't forget about the garbage cans too. The office furniture can also be customized for a specific business. Being a small business owner, the advertising budget is limited. As you build up your client base and more and more people continue to see your attractive furniture, you will have numerous opportunities for future growth.
Economical Alternative
New metal desks cost betwen $400-$700 each, or even more! New file cabinets cost $300-$550 each, also VERY expensive. New metal bookcases cost around $150. However, at SWAP, metal desks cost $30, file cabinets cost $50, and bookcases cost $20. What a difference!
$1 Million in a Year: Business Plan
Costs to this business include paint, labor, design, and transportation. The cost of paint is minimal per piece of furniture. Labor and design per piece can be estimated at $30. Transportation per piece of furniture is roughly $20, which excludes the transportation to customers, which they pay. With other fixed cost and unforeseen costs taken into account, it is reasonable to estimate the cost to be around $75 per piece of furniture.
Every customized piece of office furniture will sell for half of the price of similar furniture found in stores. This means desks will sell for $300 each, cabinets $200 each, and bookcases $75 each. Subtract from these the list price at SWAP and the estimated cost per piece of furniture, we roughly have a profit of $200 per desk, $100 per file cabinet, and $50 per bookcase. Based on the information from SWAP, the weekly flow on average is 50 desks, 100 file cabinets, and 100 bookcases. This means the weekly profit is $25,000. Using a conservative estimate, in a year, the profit will exceed 1 MILLION DOLLARS!
The above calculation assumes that we only work with SWAP, and we do not receive wholesale discounts. With expansion to other areas of U.S. where surplus stores also exist, we can see that the profit can be even greater. Not only does this generate profit for the producers, but it also generates social value where items otherwise viewed as "junk" are turned into something valuable.
From a garbage can to $1 million in a year.
Note: This is a theoretical model. The actual profit might fluctuate due to the unknown demand. However, there is a market for these goods because furniture at SWAP is sold each week.