START WITH WHAT YOU LOVE
Can Thrift Reselling Replace Your Salary? The Numbers You Need to Know
It is the question behind many resale side businesses: could this pay me what my job does? Whether it can for you depends on numbers only you can collect.
This guide shows which numbers matter, how to turn a target income into items and hours, and why a good week is weak evidence. Every figure is hypothetical; replace each one with your own.
FIVE NUMBERS
Only the last one is your pay.
Revenue
Everything customers paid you.
Gross profit
Revenue minus the cost of the garments sold, including your share of unsaleable pieces.
Operating profit
Gross profit minus selling and running costs: fees, packaging, delivery, rent, phone and data.
Cash flow
Money in and out in the week it moves. Stock bought ahead of sales uses cash before it earns; see planning cash flow.
Owner income
What you can take out of operating profit after tax and a reserve, without leaving the business short of money for stock.
COSTS PEOPLE FORGET
Count every one.
Most of these come out of every sale. For a full monthly statement, see calculating monthly profit.
- Bale price and freight: the landed cost.
- Sorting, cleaning, repairs, tags and hangers.
- Packaging, platform fees and payment charges.
- Delivery you pay for or subsidise, and returns.
- Unsaleable pieces and markdowns.
- Stall fees or rent, storage, phone and data.
HYPOTHETICAL EXAMPLE
How many items is a salary?
Hypothetical monthly figures in units of your own currency. Each item sells for 130 on average after markdowns. Its cost is 82, which includes a share of the unsaleable pieces, and selling it costs 14 in fees, packaging and delivery. That leaves a contribution of 34 per item. Fixed costs are 3,000 a month, and the target owner income is 20,000 a month before tax.
To cover both, the business must sell 677 items a month: (20,000 + 3,000) ÷ 34, rounded up. At 12 minutes per item to photograph, list, sell and pack, that is about 135 hours a month, or about 31 hours a week, before sourcing and bookkeeping.
Hypothetical example only, not a typical or expected result.
| Line | Units |
|---|---|
| Average price per item | 130 |
| Cost per item sold | 82 |
| Selling costs per item | 14 |
| Contribution per item | 34 |
| Fixed costs a month | 3,000 |
| Target owner income a month | 20,000 |
| Items to sell a month | 677 |
| Hours a month at 12 minutes per item | about 135 |
HYPOTHETICAL SCENARIOS
Conservative, middle and optimistic.
Three hypothetical months, each with fixed costs of 3,000. Each line is items sold × (price − cost − selling costs). None is an expected result.
In the middle scenario, a price 10% lower (117 instead of 130) cuts the result to 5,400: about half, from one change. Small changes in price or cost move income a lot.
Hypothetical example only, not a typical or expected result.
| Scenario | Units |
|---|---|
| Conservative: 250 × (120 − 85 − 15) | 5,000 |
| Middle: 400 × (130 − 82 − 14) | 13,600 |
| Optimistic: 600 × (140 − 80 − 13) | 28,200 |
| Scenario | Units |
|---|---|
| Conservative | 2,000 |
| Middle | 10,600 |
| Optimistic | 25,200 |
| Middle, price 10% lower: 400 × (117 − 82 − 14) − 3,000 | 5,400 |
STALL OR ONLINE
Different costs, different time.
Market stall
Stall fees, transport and set-up time, but no packaging or delivery and instant payment. Sales depend on the day and the weather.
Online
Platform fees, payment charges, packaging, delivery and returns, plus photography and messages for every item. Reach is wider, and payouts can be delayed.
Both
Many sellers combine them. Track each channel separately; see running a market stall.
ONE GOOD WEEK IS NOT A SALARY
Why short results mislead.
Multiplying your best week by four gives a number you are unlikely to see every month.
- Early sales often come from friends and followers who will not buy every week.
- A fresh bale sells its best pieces first; what is left sells slower and cheaper.
- Demand changes with seasons and festivals; see planning seasonal stock.
- Your time per item rises when you do everything yourself at higher volume.
EVIDENCE TO COLLECT
Before you cut hours or leave a job.
Months, not weeks
Several months of sales, costs and hours, including a slow month.
Owner income, not sales
Operating profit after all costs, compared with the income you need after tax.
Self-funded stock
Reorders paid from the business, not from savings.
Hours you can keep
The hours the target income needs, measured, not estimated.
A personal reserve
Savings for several months of household costs. See starting alongside a 9-to-5 job.
NEXT STEP
Testing the numbers with real prices?
Ask for a quotation for the categories and quantity you are considering, and use the quoted figures instead of assumptions.
Hypothetical figures for illustration only, not a forecast, an income estimate or a promise of returns. Not financial, tax or career advice; ask a qualified adviser before changing your employment.