At the inception of the Guatemalan Thrift Stores program, Orphan Logistics & Relief Inc. rented a large storage unit in Tallahassee, as a central base of operations to store, sort and pack donated clothing items. We cur rently have an unfounded recurring cost of $150. Per month.
Though we try to utilize donated or recycled boxes for shipping, the need often outstrips the availability. We anticipate a packing material cost of approximately $300.
Once we have enough items to fill a 44,000-pound, volume by weight shipping container, we will arrange for the container to be delivered to our site, and there with the help of volunteers, we’ll pack the container for immediate shipment. Transit time between ports from the US to Guatemala by ship is three days, with total time from our storage unit to a warehouse in Guatemala City, about one week. Most but not all import duties and fees are waved for recognized non-profit charitable organizations. Though shipping fees vary, estimates place the cost of shipping at approximately $4,800.
Upon arrival at the warehouse in Guatemala, we’re responsible to deliver the cargo to the orphanages. Fortunately, most are located with close proximity to Guatemala City, however at least one program orphanage is six hours by road out in the interior. We estimate local transportation costs at between $400 and $500, given the wide fluctuation of gas prices in Guatemala.
It is our intention to ship one container every six months, as long as were able to obtain the donated clothing items or until such time as the program is no longer viable for the orphanages.
This equates to an approximate cost of $6,200.00 per shipment.
It terms of return on investment, we can extrapolate several variables. First, based on the volume of the container, and the weight of clothing items, the majority of which will be summer weight, we expect to ship somewhere in the area of 65,000 individual items per container.
From each shipment, approximately 10,000 items will be set aside to clothe the children at orphanages around the country. The remaining 55,000 will be distributed for sale by the orphanages, marketed and sold directly by them. If they maintain an equivalent $1 to $2 dollar price point per item, the net present value of the initial investment is enormous, especially when you take into account the Guatemalan economy.
Beyond funding basic needs, such as housing, food and medical, the monies generated will help to empower enhanced educational and vocational training, building hope and prosperity. BUT, we can’t do it without you. Please consider helping to fund this program.