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How to create a 'category' as a product in shopify?

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I work with a non-profit that accepts donations and resells them. We never know what we will have donated for products or if we will ever see that item again and as such they don't want to spend the time entering each one as a new item. Their previous method before Shopify was to simply price items as a category (example Hardware - Tools) and at different price points (9.99, 19.99, 29.99, etc.). I was thinking of creating products such as Hardware_Tools_999, Hardware_Tools_1999, etc and NOT tracking the inventory.

Would this work? Are there any drawbacks to doing it this way?

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