Where Does My Money Go?
Ever wondered where your hard earned cash goes when you sign up for The Retro Store? Rather than hiding these details, we believe in transparency, and explaining exactly how we spend your money, and show the measures we have to take just to survive!
Let’s Break it Down
- The first main cost to consider is Payment Fees. When you buy something online, the likes of PayPal and business banks take a percentage cut of all costs. In PayPal’s case, it’s usually 3.4% + 20p for each transaction.
- Next up is staff costs, because without them, how do we pick, pack and ship your box? We bake some of our marketing costs which aren’t advertising into this because that’s where their time is spent outside of picking and packing!
- The main expenditure of your box is as you would expect, the stock. When dealing with second-hand goods, it can be tough when customers say they have seen products from 50p, but it can also be fantastic when a customer gets an item they’ve seen sold for £30! We set budgets for all of our boxes, and if we could, we would spend all the money on the stock.
- Next up is shipping. We offer Free Shipping all across the UK and absorb £3 of Royal Mails shipping costs when shipping abroad. Not bad, right?
- Being an online company means we don’t need to worry about retail rent, but we do still need to worry about hosting, as websites don’t run on thin air. We keep our site zippy with a portion of all sales going to cover that cost.
- We don’t spend too much money on marketing, because we know word of mouth (and referrals) are key. But for when we do, this covers the cost.
- And that leaves us with profit. Yes, you’ve seen how business schools recommend you have 50-70% profit margins, but when all is said and done, we’ve less than a pound to either keep in the bank, or reinvest, and that’s not even considering taxes! 🙄
This Isn’t Complaining, Just Perspective
We want to be clear, this isn’t complaining, just a little perspective. As a small business, we’re happy to spend money on paying staff, getting quality items, running a smooth site and improving our logistics. But please don’t think we’re pocketing all of the money and living our life carefree. We’re endlessly hustling and working to make this service as good as we possibly can, and can’t explain how happy we are to all have you part of the journey.