Do you think Deseret Industries is profitable?

[scottie]

I've always been curious if it's a money pit, a break-even, or a cash cow for the church. I know it's considered nonprofit, but that doesn't mean it can't be profitable does it? My guess is it's somewhere between money pit and break-even but I really have no idea. I think it's great for the jobs it provides.

[Mormon Red Death]

I've always been curious if it's a money pit, a break-even, or a cash cow for the church. I know it's considered nonprofit, but that doesn't mean it can't be profitable does it? My guess is it's somewhere between money pit and break-even but I really have no idea. I think it's great for the jobs it provides.

I would compare it to a dollar store. I bet it has a 5% margin.

[Katy Lied]

Heck whether it's profitable or not. Why does it always stink?

[Surfah]

Heck whether it's profitable or not. Why does it always stink?

Have you seen the unwanted crap people dump there?

[scottie]

Have you seen the unwanted crap people dump there?

I would imagine they have to make regular hauls to the landfill.

[Surfah]

I would imagine they have to make regular hauls to the landfill.

Yeah, I am trying to remember someone posting about trying to dump a mattress there even though they don't accept mattresses.

[jay santos]

I bet we have someone on this board who could answer this question.

I can't see it being that profitable. I imagine the only reason the church has it for welfare purpose.

[Moliere]

I bet we have someone on this board who could answer this question.

I can't see it being that profitable. I imagine the only reason the church has it for welfare purpose.

I bet it's quite profitable. Their merchandise is almost all donated and their labor is cheap/free. They probably aren't making money hand over fist but they are likely making money.

[jay santos]

I bet it's quite profitable. Their merchandise is almost all donated and their labor is cheap/free. They probably aren't making money hand over fist but they are likely making money.

Probably depends on the accounting for the labor. Whether they are volunteers receiving fast offering funds or whether they are paid as employees.

[Clark Addison]

What is considered DI? correct me if I am wrong, but my understanding is that the majority of stuff donated to DI (especially the good stuff) never gets to a DI store, but ends up at Welfare Square or a Bishop's storehouse, where it is given to the poor. If you include all the costs for supporting these efforts (facilities, utilities, salaries, etc.) under the DI umbrella, then I wouldn't think DI is a profitable venture.

On the other hand, if you look at a typical DI store in isolation, I can imagine that it could make a decent amount of money.

[falafel]

What is considered DI? correct me if I am wrong, but my understanding is that the majority of stuff donated to DI (especially the good stuff) never gets to a DI store, but ends up at Welfare Square or a Bishop's storehouse, where it is given to the poor. If you include all the costs for supporting these efforts (facilities, utilities, salaries, etc.) under the DI umbrella, then I wouldn't think DI is a profitable venture.

On the other hand, if you look at a typical DI store in isolation, I can imagine that it could make a decent amount of money.

Isn't this just an urban myth? I remember hearing this when I was younger and I was pissed thinking about all of the Girbauds and Polo shirts getting to shipped to Africa.

[old_gregg]

i would be surprised if it's profitable. i know that for beehive clothing, all projections are made with the end target of breakeven. considering they pay their employees somewhere above competitive wages, the fact that they have quite a few employees, the overhead of pretty nice facilities, and awful inventory turnover, breakeven sounds about right.

[hostile]

Isn't this just an urban myth? I remember hearing this when I was younger and I was pissed thinking about all of the Girbauds and Polo shirts getting to shipped to Africa.

When I was in college our student stake did a service project where we collected educational supplies for an orphanage in China. The stake high councellor who oversaw the project took a few of us down to welfare square. While making the tour we were introduced to the "Levi lady" whose job it was to evaluate all denim that was donated and determine if it would be more valuable overseas or to remain local.

[grapevine]

I think most of the people at di get minimum wage nothing more. Some might though. As there goal is to get them out of there. The staff such as the Truck Driver, Job coaches and managers get more than minimum wage but I am sure less than people in similar jobs else were. People that mave major mental disabilities I think they can pay less than minimum wage too. A few people on disability put in a few days of work there too but not enough they didn't get disability.

As for why it smells there are some employees there with hygiene problems get trained to take a bath. And some of the stuff that is put there I am sure does not smell. I seen dirty matresses put there and have to dump them. Dump a lot of stuff. Was told not to dump garbage in front of doners. But are they that naive? Carseats not too many are sold there.

There is a deseret manufacturing in Salt Lake that will make mattresses. Much of what goes to DI is donated to people in distress. A Bishops Order can help someone out of clothing if they are that hardpressed. They have donated beds to people whose homes burned down. ANd many things do go to Third World countries for humanitiarian. I bet much of what is donated is thrown out.

A good chunk of material is sold. Rent for building and labor I think are the bulk of the costs. As is junk bill too. I am sure most di's might make some profit at the store which goes to I am sure the church humanitarian fund.

[il Padrino Ute]

I'm obliged to not post numbers, but let's just say that the goal of DI, as grapevine pointed out, is to train folks to be able to find better jobs and/or learn to take advantage of what is out there in order to succeed.

I can say that the goal of each DI store is to be self-sufficient and most are able to do that. That said, because of the combination of a poor economy and the fact that there are literally tons of donated items that are taken to the landfill each month, profits are down 14% last quarter compared to the previous year in the Murray store alone. I've not seen any numbers from other stores, but I've heard that most are not doing as well and only a few are doing better, though losses are across the board.