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Hanna Andersson Corp., a Portland, Ore., mail-order business, sells children's clothing. The 250-employee company also takes the clothes back when the children outgrow them. Customers may return used items in good condition and get credit - 20% of the original price - toward their next purchase. The used clothes are donated to local charities, disaster relief organizations, and orphanages.

"Our Hannadowns program is a winner for everyone," says Diane Iosca, who handles public relations and publicity. "Children in need get good clothing. Parents teach their kids about sharing and helping others. And, our customers get a discount on future purchases. The Hannadowns program helps some customers justify the price of our products. They know it's a quality product that will last, and they get long-term savings."

The program has generated valuable publicity and developed loyal customers. Since 1984, more than 750,000 articles of clothing have been donated to charity. Customers feel good about being part of this effort.

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