Introduction
Most resellers only subtract buy price from sale price.
That ignores labor, materials, booth fees, marketplace fees, transportation, and operating costs.
The result is fake profit.
1
Real Profit Formula
A proper reseller pricing workflow includes total cost and target margin.
Total Cost
- Acquisition cost
- Materials
- Labor
- Shipping
- Fees
- Overhead
Target Margin
- Ideal profit margin
- Acceptable minimum margin
2
Example Calculation
Item
Refinished dresser
Costs
- Acquisition cost: $30
- Labor: 4 hours at $25/hr = $100
- Materials: $25
Total Cost
$155
Target Margin
60%
Suggested Sale Price
$388
3
Recommended Margin Targets
- Labor intensity
- Local market
- Craftsmanship
- Demand
- Storage time
Ideal target
60%
Flexible range
40%-50%
Hard minimum
30%-35%
4
Why This Matters
Many resellers work hard but still lose money because they forget labor, underestimate costs, price emotionally, or hold inventory too long.
- Forget labor
- Underestimate costs
- Price emotionally
- Hold inventory too long
5
How SOURCD Helps
SOURCD supports the cost and reporting workflows that make profit visible.
The goal is not just tracking inventory. The goal is understanding whether the flip was worth it.
- Acquisition cost tracking
- Receipt batches
- Labor tracking
- Refinishing workflows
- Vendor fees
- Storage costs
- Profit reporting
Final thoughts
Profit should not be a guess.
- What they spent
- What they earned
- What they should charge
- What is actually profitable
- Work like Scout. Flip like a pro.