What running costs should I check before buying a thrift store?

A thrift store can look inexpensive to run because the goods cost little or nothing. The real costs sit in the work and space between a donation arriving and a sale at the till. Some of those costs are easy to miss in the financial statements, especially when the owner covers them personally. Ask for them line by line.

Sorting and pricing labour

Every item must be sorted, checked, cleaned and priced before it reaches the floor. Ask who does that and for how many hours a week. If volunteers or family members do some of it, ask whether they would stay on after the sale. Consider with your accountant what replacing that work with paid staff would involve.

Hours the owner does not pay themselves for

Many owners work long hours for little or no wage. That makes the books look better than the business would under a manager. Ask what the owner actually does each week and who would do it after closing. Your accountant can help you restate the figures with a fair wage for that work.

Disposal, pickups and donations

Not everything that comes in can be sold. Ask what happens to the rest and what it costs: haulage, dump or recycling fees, and any arrangement with a charity to take overflow. If the store collects donations from homes or businesses, ask about vehicle, fuel and staff time. Check how stock reaches the store, as in this answer on keeping stock coming after a sale.

Markdowns and back-room space

Items that do not sell are usually marked down, and some records show only the final price. Ask how markdowns are recorded. Also look at how much space goes to stock waiting to be sorted or sold, since that is rent paid for goods that earn nothing yet.