![How to plan and track the budget of your thrift store [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-1_efd7d5e1-23b6-48cf-be60-ebbbf3863ba1.png?v=1715856372&width=1100)
If you don’t plan and track your thrift store budget properly, you're setting yourself up for failure.
When we developed our strategy pack for thrift store owners, we saw a lot of thrift store owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial revenue.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your thrift store's finances around and set you on the path to success!
Get the budget tracker tailored for thrift stores
Most thrift store owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for thrift stores
Here is an example of a (very) detailed budget for a thrift store, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for store space | $3,000 | $36,000 |
| Electricity | Power consumption for lighting and equipment | $500 | $6,000 |
| Water | Water usage | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $100 | $1,200 |
| Waste Removal | Garbage and recycling services | $150 | $1,800 |
| Pest Control | Monthly pest control services | $50 | $600 |
| Insurance | Property and liability insurance | $400 | $4,800 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Store Manager | 1 | $3,500 | $3,500 | $42,000 |
| Assistant Manager | 1 | $2,500 | $2,500 | $30,000 |
| Sales Associates | 3 | $2,000 | $6,000 | $72,000 |
| Cashier | 2 | $1,800 | $3,600 | $43,200 |
3. Inventory & Supplies
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Inventory | Second-hand clothing, furniture, and other items | $5,000 | $60,000 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $150 | $1,800 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Display Materials | Mannequins, racks, shelves, etc. | $200 | $2,400 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $200 | $2,400 |
| Social Media Management | Managing social media accounts | $300 | $3,600 |
| Print Advertising | Flyers, posters, newspaper ads | $150 | $1,800 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $100 | $1,200 |
| Promotional Events | Special events and promotions | $150 | $1,800 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of store equipment | $200 | $2,400 |
| Uniforms | Staff uniforms and aprons | $100 | $1,200 |
| Licenses & Permits | Business licenses, resale permits, etc. | $50 | $600 |
| POS System | Point of Sale software and hardware | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $300 | $3,600 |
| Staff Training | Training programs and materials | $100 | $1,200 |
Some thrift stores make 5x more profit than you!
We have studied the strategies of the best thrift stores in the world. Replicate them now!
What are the biggest expenses for a thrift store?
Watch out for these budget busters. Here are five major costs every thrift store owner needs to consider, along with some tips on how to manage them effectively.
- Inventory CostsAcquiring quality second-hand items can be a significant expense. Prices can vary based on the condition, brand, and rarity of the items. To keep these costs manageable, focus on sourcing from reliable suppliers, negotiating bulk purchase deals, and accepting donations. Be cautious of overspending on items that may not sell quickly or at a high enough margin.
- Staffing Your Thrift StoreYour employees are essential for running the store smoothly, but their wages, benefits, and training can add up. This cost is always present because you need a dedicated team to manage inventory, assist customers, and handle transactions. Optimize labor costs by scheduling shifts efficiently, cross-training staff, and monitoring productivity. However, avoid underpaying or overworking your staff, as this can lead to high turnover and poor customer service.
- Rent and Utilities of Your StoreLocation is key, but it comes with a price. Rent in high-traffic areas can be steep, and utilities like electricity, heating, and water are necessary but can add up. To manage these costs, negotiate favorable lease terms and invest in energy-efficient lighting and appliances. Overspending often occurs when you choose a location that's too large or too upscale for your needs.
- MarketingGetting the word out about your thrift store is crucial, but advertising can be costly, whether it's through online ads, social media, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we recommend. Overspending can happen if you invest in elaborate campaigns without a clear return on investment.
- Store Fixtures and Maintenance CostsThis includes everything from shelving and display racks to cash registers and security systems. These are necessary expenses because quality fixtures and regular maintenance are crucial for a pleasant shopping experience and smooth operations. Optimize by investing in durable, functional fixtures and maintaining them regularly to avoid costly repairs. You can overspend by opting for high-end or overly elaborate fixtures that don’t add significant value.
How to spend less with your thrift store?
Here are practical tips to help you, as a thrift store owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Inventory Costs | Partner with local donation centers and community groups to source high-quality items at no cost. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install LED lighting and energy-efficient appliances to reduce electricity bills. |
| Marketing | Run social media contests for your thrift store and collaborate with local influencers for free exposure. |
| Cleaning Supplies | Train staff on efficient use of cleaning supplies to reduce waste. |
| Equipment Maintenance | Set up a maintenance log for regular equipment checks and servicing. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers bringing their own bags. |
| Display Fixtures | Purchase high-quality, durable display fixtures that can withstand frequent use. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with other systems. |
| Staff Training | Conduct regular in-house training sessions and use free online resources. |
| Waste Management | Implement a waste tracking system to minimize waste and donate unsellable items to recycling centers. |
| Technology | Invest in multi-functional office equipment and utilize inventory management software. |
| Signage | Use digital signage or reusable boards to reduce printing costs. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan donation pick-up routes to maximize efficiency and reduce fuel costs. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce overstocking. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards to prevent infestations. |
| Music and Entertainment | Use a streaming service for background music and host local artists for in-store events. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
Copy the tactics of the best thrift stores in the world!
There are thrift stores that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a thrift store
Yes, some expenses for your thrift store are just unnecessary. They don't contribute to increasing revenue or improving customer experience.
| Thrift Store Expense | Reason It's Useless |
|---|---|
| High-End Store Fixtures | Expensive fixtures don't necessarily attract more customers and can be a drain on the budget. |
| Premium Cleaning Services | Unless you have a high-end boutique, most customers are satisfied with a clean, well-organized store. |
| Excessive Inventory | Having too much inventory increases storage costs and can lead to unsold items. |
| High-End Display Cases | Top-of-the-line display cases are not always necessary and can be cost-prohibitive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your thrift store. |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for music or magazines often go unnoticed by customers. |
| Exclusive Merchandise | Using rare or exclusive items can inflate costs and complicate supply chains. |
| Costly Furniture | High-end furniture is not always appreciated by customers and can be a significant expense. |
| Custom Printed Bags | Personalized shopping bags are a minor detail that most customers overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most customers are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Window Displays | Elaborate window displays are often ignored by customers and add to the cost. |
| High-End Shelving | Luxury shelving is prone to damage and expensive to replace, often going unnoticed by customers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Signage | Frequently redesigning signs is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Security Systems | Specialized security systems are often unnecessary and add to costs without a proportional benefit. |
Stop working with a tight budget for your thrift store!
Managing a budget for your communication coaching business when funds are tight can feel overwhelming. It's like being trapped in a cycle where any unexpected expense can throw you off balance.
This constant pressure makes it nearly impossible to invest in growth opportunities, leaving you perpetually focused on just getting by. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together resources and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more money to invest in your business.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of communication coaching businesses just like yours. Get them now!
Make your thrift store more profitable
We have studied the strategies of the best thrift stores in the world. All their tactics are explained in our pack!
