What is a good profit margin for flipping thrift store finds?
Understanding Margins
Profit margin is the percentage of the sale price that is profit after subtracting all costs (item cost, fees, shipping, supplies). If you buy an item for $5 and sell it for $20, and after $5 in fees and shipping you net $10, your profit is $5, which is a 100% return on your $5 cost, but a 25% profit margin on the sale price.
Many flippers use return on investment (ROI) instead: profit divided by cost. An ROI of 100% means you doubled your money. For thrift flipping, an ROI of 100-300% is often the goal.
- ROI 100% = doubled your money
- ROI 200% = tripled your money
- Profit margin on sale price: aim for 30-50% after all costs
- High-volume, low-cost items may have lower ROI but still be profitable
What's Realistic
Not every item will be a home run. Some flips will break even or lose money. Successful flippers often have a mix: most items yield modest profits, and a few yield large ones. Track your numbers to see what works for you.
Categories matter: clothing often has higher ROI but lower dollar profit per item; electronics may have lower ROI but higher dollar profit. Find your niche.
Common mistakes
- Confusing ROI with profit margin; they are different metrics.
- Forgetting to subtract all costs, including gas and supplies.
- Expecting every item to be a big winner; some will be duds.
