What costs should I subtract to find my true profit on a flip?
Costs that are easy to forget
Most resellers remember the purchase price but forget the smaller costs. Boxes, mailers, tape, labels and printer ink all add up. Cleaning products, thread, glue or replacement parts used during repair count as part of the item cost too.
Your time matters as well, even if you choose not to put a dollar figure on it. Track how long each flip takes so you can judge whether a category is worth your effort.
- Purchase price, including any tax or transport you paid
- Packing materials and label costs
- Repair or cleaning supplies
- Platform fees and payment processing
- Shipping you pay, if any
A simple profit formula
Write profit as the sale price minus all costs. Use the same formula for every item so you can compare winners and losers. After a few months of sales, patterns show which categories work for you.
Profit percentage helps when you compare items. Divide profit by the sale price to see what share you keep, which makes low-margin items easy to spot.
- Profit equals sale price minus total costs
- Margin equals profit divided by sale price
- Track the numbers in one spreadsheet
Common mistakes
- Leaving out packing supplies and label costs.
- Counting gross sales as profit.
- Forgetting repair supplies on items that needed work.
Related questions
- How do I price items I find at thrift stores for resale?
- How much should I pay for items to flip for profit?
- What is a good profit margin for flipping thrift store finds?
- How do I know if a thrift store item is overpriced?
- Should I negotiate prices at garage sales?
- How do I calculate fees and shipping when pricing items?