Revenue is not the same as profit. A vintage reseller can sell an item for more than its purchase price and still make less than expected once packaging, platform costs, discounts, returns and other expenses are included.
A simple margin calculation makes it easier to compare stock sources and decide whether a bundle price works for your business.
Start with your stock cost per piece
If you buy by the piece, your starting cost is straightforward. If you buy a reseller bundle, divide the bundle price by the number of garments.
- £65 for 10 pieces = £6.50 stock cost per piece.
- £120 for 20 pieces = £6.00 stock cost per piece.
- £185 for 25 funky knit pieces = £7.40 stock cost per piece.
These are the current headline costs of VG4U's relevant bundles. They are not estimates of what any individual garment will resell for.
Calculate contribution per sale
A useful basic formula is:
Selling price − stock cost − platform/payment costs − packaging − shipping you absorb − discounts/returns allowance = contribution from that sale.
Your own accounting may also need to include overheads, tax and other business costs. If you need formal tax or accounting advice, use a qualified professional.
Example using a £6 stock cost
Imagine a garment came from a 20-piece bundle at an average stock cost of £6. If it later sells, do not calculate profit by simply subtracting £6 from the sale price. First deduct every cost that belongs to that transaction. The amount left is much closer to the contribution the sale actually made.
We deliberately do not give a guaranteed resale figure because vintage garments vary by brand, style, size, condition, demand, season and marketplace.
Gross margin percentage
Once you know the contribution amount, a simple margin percentage can be calculated as:
Contribution ÷ selling price × 100.
For example, if a sale produced £10 of contribution on a £20 selling price after the costs you chose to include, the contribution margin would be 50%. This is an example of the calculation only, not a forecast for VG4U stock.
Do not ignore unsold stock
Per-item calculations can look attractive while cash is still tied up in garments that have not sold. Track sell-through as well as margin. A lower-margin item that sells quickly can affect cash flow differently from a higher-priced item that stays listed for months.
Useful figures to track include number of pieces bought, number listed, number sold, average days to sale, total stock cost, net sales after direct costs and remaining stock value.
Compare bundle sizes on both margin and workload
A 10-piece mixed bundle currently works out at £6.50 per item, while a 20-piece mixed bundle works out at £6 per item. The larger option lowers the stock cost per piece, but it also requires more cash upfront and more time to photograph and list.
Read our 10-piece vs 20-piece reseller bundle comparison before choosing solely on the lower cost per garment.
Use real sold data, not optimistic asking prices
When researching pricing, distinguish between what sellers are asking and what similar items actually sell for where sold data is available. Condition, measurements and season can materially affect the result.
Our guide to pricing vintage clothes for Vinted, Depop and eBay gives a practical listing-price framework.
Build your own minimum acceptable margin
Every reseller has different overheads and time costs. Decide the minimum return that makes photographing, listing, storing, packing and handling the item worthwhile for you. That decision should be based on your own numbers rather than a supplier promising a particular resale value.
See all current VG4U vintage wholesale reseller bundles and compare their cost per piece before buying.
