Sports Card Shop – 1 Month Example
This is an example of a one month profit and loss summary for my $10,000 card shop. Gross sales were $1,500 for one month. Averaged $50 in sales per day and was open for 30 days during the month. You may think $50 a day is low…… don’t open a sports card store if you think you can pull in hundreds per day in sales.
I break down this profit & loss statement line by line below.
Line 6: Gross Sales $1,500. In this example I had sales of $50.00 a day, and worked 30 days in the month. Here is a breakdown of what my $1,500 in sales might have looked like.
- Gross Sales: $150
- Cost of Single Cards: $30 (Line 14)
- Profit: $120
Sold $5.00 worth of single cards per day. There is a huge 500% markup on single cards. If I buy a card for .01 cent I charge .05 cents for it.
- Gross Sales: $50.00
- Cost of Magazines: $25.00 (Line 15)
- Profit: $25.00
Sold 10 Beckett Magazines during the month at $5.00 each. I bought the Magazines for $2.50 and sold them for $5.00.
- Gross Sales: $600.00
- Cost of packs: $300.00 (Line 16)
- Profit: $300.00
I sold $20 worth of unopened packs per day for a total of $600 for the month. I marked up my packs by 100%, while that is unrealistic for most shops, I bought mostly low-end, closeout packs with my initial inventory.
- WinCraft Sales: $600.00
- Cost of items: $300.00 (Line 17)
- Profit: $300.00
As with the unopened wax, I sold $20 worth of WinCraft items per day and marked them up 100%.
- Gross Sales: $100.00
- Cost of supplies: $33 (Line 18)
- Profit: $67
Sold $3.33 worth of sports card supplies per day. The markup is decent for supplies, if I bought soft sleeves for .33 cents a pack I sold them for $1.00.
Line 7: COMC Income $100.
Most people open a card store and have some sort of income coming in from sales of cards online. This can be from eBay, COMC, or some other source. In this example I will use COMC. As shown below, I’ve sold quite a few cards and can afford to take $100 a month off the table to help supplement the start up of my card store.
Make sure before you open a sports card store you have at least $100 profit coming in from some other source like eBay or COMC.
Line 21: Advertising – $0. If you don’t spend anything on advertising, you better be hustling on Craigslist, Facebook, Twitter, and Instagram. Probably in that order as well.
Line 22: Business License Fee – $10. There is an annual fee of $120 for my counties Business License so I broke it down per month.
Line 23: COMC Cash Out Fee – $20. There is a 20% cash out fee on COMC when I withdraw my $100 per month.
Line 24: Credit Card Processing Fee – $11. I’ve signed up with Square, and estimated $400 of my sales came from a debit/credit card. Square charges 2.75% which is where the $11.00 comes from. This total can fluctuate month-to-month depending on how much your debit/credit card sales were.
Line 25: Electricity – $0. In the example I gave when opening my card shop, electricity was included in the rent. This may not be the case if you open a store. Be sure to account for this and possibly other utilities like trash or common areas.
Line 26: Insurance – $0. Your landlord may require you to carry an insurance policy on your inventory value. You may also just want it for piece of mind. This could cost you around $25 a month or more depending on how much inventory you have.
Line 27: Internet –$55. I have a mobile hotspot I pay $55 a month for, and it also doubles as the internet at my home.
Line 28: Office Supplies – $20. You’ll be surprised how much stuff you’ll need, the dollar store should become your best friend.
Line 29: Postage & Shipping – $20.
Line 30: Rent – $400. The example for this came from a property I found for my $10,000 card shop.
Line 31: Sales Tax – $142.20. This is based on the California sales tax rate of 9.0% and my $1,500 in sales. Be sure to check with your state and county to know your tax rate.
Line 32: Telephone – $65. I am using Google Voice and saving money combining both my personal and business phone.
Line 33: Turbo Tax – $12.08. This is what I use to do my taxes and I find it easy to use. You may choose something else. The total cost for Turbo Tax is $144.96, but I split that out into a monthly cost so I can keep track of it on my profit/loss.
Total Income: $1,600
Total Expenses: $1,443.28
Profit Margin: 9.7%
A profit margin of around 10% is very typical of most sports card shops. One of the reasons why card stores have gone out of business is because they simply can’t generate enough revenue. There just isn’t enough people spending money on sports cards in your city to stay in business.
In this example, I would have worked for 30 days, and made a grand total of $156.72. I couldn’t live off that. I’m going to have to come up with some other ways to generate revenue.