Cost and Sale Price explained
(Insert Quirky Introduction Here)
Let’s start by simply defining Cost and Sale Price, then explain our ideas on how to use these features to track your profits and losses.
When discussing business, Cost is the amount of money that a company spends on the creation or production of goods or services. It does not include the markup for profit. From a seller’s point of view, cost is the amount of money that is spent to produce a good or product. For resellers our thrift store finds and overstock purchases ARE THE GOODS. We are sourcing these items to either sell as is, or clean up and then resell. So, you may want to add labor and materials into your Cost per item if you would like to keep track of that. That is why we love binin, your inventory, your rules!
Sale Price can be defined as many different things in the retail world. If you are a beginner and want to use this space for the price you plan to list your item and it works for you, amazing! At binin, we are using the Sale Price to keep track of what price our items have ALREADY sold for. Here is why-
Whether you have 4 items or 400 items for sale it is very difficult to keep track of the current Sale Price of your listings. As us resellers do, we will often change the Sale Price or put items on sale over several weeks.
This is our process that we have mastered, right?
Here’s an example- Your new blouse that you paid $5 for at Thrifty Mart is first listed on Poshmark for $25, so you add that amount into the Sale Price section in binin. A week goes by and your blouse does not sell, so you discount that item which lowers the Sale Price, right? Now the information you previously entered into binin is incorrect and you would need to go into the app to change it.
We have found that it works best for us to consolidate our moves and wait until our item sells, then go to our binin app and add the Sale Price later. This allows us to run reports and get real numbers for our Profit & Loss Sheets.
Hope this helps! Please reach out with any questions you may have.