You Could Be Saving Up to 50% at Goodwill—Here’s How the Color Tag System Works

If you’ve ever walked into Goodwill Industries International and noticed racks full of different colored tags, you’re not alone in wondering what they actually mean. Once you understand how the system works, it completely changes how you shop.

In fact, learning to read those tags is one of the easiest ways to get the best deals without spending extra time digging. And once you get it, you’ll start spotting discounts almost instantly.

The Simple Trick Behind Goodwill’s Color Tags

Goodwill uses a rotating color tag system to track how long items have been on the floor and when they’re due for a discount. Instead of constantly relabeling prices, they assign each item a color when it arrives.

Most stores cycle through about five colors, typically red, blue, green, yellow, and orange. Each week, one of those colors becomes the “color of the week,” which usually means a major discount (often around 50% off).

So instead of scanning every price tag, you can just look for that one color and know you’re getting a deal.

What “Color of the Week” Actually Means

This is where things get interesting. The “color of the week” is basically your shortcut to savings. Here’s how it usually works:

• A new batch of items hits the floor with a fresh color tag
• Each week, a different color goes on sale
• Items that haven’t sold yet get marked down based on their tag color

By the time an item reaches the discount stage, it’s often been sitting for a few weeks so stores are ready to move it. And yes, that’s where you can find some of the best bargains.

Related: People Donate the Wildest Things and Goodwill Is Begging Them to Stop

Why the Colors Matter More Than the Price

One of the biggest misconceptions is that the color tells you the price. It doesn’t, at least not directly. Instead, the color tells you when the item was put out and whether it’s part of the current promotion. That’s actually more useful than a static price, because it helps you spot markdowns instantly.

For example, you might find two similar items but if one has the discount color tag, that’s the one worth grabbing.

The Rotation System (And Why Timing Matters)

Most Goodwill stores rotate colors on a weekly cycle. That means every week:

• A new color goes on sale
• A new batch of items hits the floor
• Older inventory gets discounted or cleared out

Some locations even take it further, marking items down deeper if they still don’t sell, sometimes dropping them to clearance pricing for a short window. That’s why regular shoppers tend to visit often. The inventory and the deals are constantly changing.

A Quick Note on Store Differences

Not every Goodwill runs things exactly the same way. While most follow a similar color rotation, the exact colors, discount percentages, and sale days can vary by location.

Some stores might offer:

• 50% off the color of the week
• Special one-day clearance events
• Additional markdowns on older inventory

If you’re unsure, it’s always worth asking a staff member; they’ll usually tell you exactly which color is on sale.

Related: I Used to Shop at Goodwill Until I Found the “Bins”

Why This System Exists in the First Place

Beyond helping shoppers save money, the color-tag system keeps everything moving behind the scenes. It allows Goodwill Industries International to:

• Rotate inventory quickly
• Keep stores from becoming overcrowded
• Make room for new donations

And every purchase supports their mission, funding job training, employment programs, and community services.

Other Topics You Might Like

• 10 Things I Would Never Buy Used at Goodwill
• Goodwill Doesn’t Want You to Donate These Items
• Online Thrifting Is Booming—and Goodwill’s Online Marketplace Is Proof