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 profit does a thrift store make?
Those expenses chip away at thrift stores’ profits, and as of 2016, used merchandise retailers made a pretax profit of 3.3 percent – meaning that an average 10-person thrift store might generate only $11,880 in annual profits. That said, the average annual salary for a thrift shop manager hovers around $52,000.
Can you make money reselling thrift store items?
Buying stuff from thrift stores and reselling them on eBay or other places is a great way to make money. The term “Thrift Store Flipping” refers to the process of buying something from the thrift store with the plan to resell it for a higher price.
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.
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.