The average profit on thrift stores is pretty low because of all the costs to having a physical location.
For-profit thrift stores pay taxes of up to 30% on profits and then owners pay taxes again on their income.
You can save a lot of this money by making your thrift store a limited liability corporation (LLC).
How much money do you need to start a thrift store?
You’ll need at least $50,000 for the first year if you take into account rental space, overhead costs and the costs of inventory and employees. How do I get a grant to start a thrift store?
Is owning a consignment store profitable?
Earnings. Consignment stores usually sell items for about one-third of their new retail price, according to Bankrate.com. Typically, the consignment store owner keeps 60 percent of the profit on each item and gives 40 percent of the profit back to the item’s original owner.
How do I start a successful thrift store?
9 Tips for a Successful Thrift Store Sale
- Find a consignment shop that fits your item. Some shops have a reputation for selling certain types of items.
- Find a shop that displays merchandise well.
- Avoid new consignment shops.
- Get to know the store personnel.
- Know the deal.
- Know the worth of your items.
- Pick the right items to sell.
- Prepare your items for sale.
Do I need a business license to open a thrift store?
Obtain any required local business permits. Thrift stores and reseller shops do not require specialized licensing from state or federal authorities, but they are subject to the same local permit requirements as all other businesses.