How To Manage Retail Operating Costs in Your Thrift Store: 6 Tips

Running a thrift store isn’t cheap. Before the doors open, money’s already going out — on rent, payroll, utilities, supplies, and everything behind the scenes. And when you’re trying to stretch every dollar to support your mission, even a slight increase in these everyday expenses can drain your budget.

Luckily, using the right point of sale (POS) system to track and organize spending can help. When you can see where your money’s going, it’s much easier to control spending.

In this blog, we share six retail operating costs that add up fast, and explain how to manage each one so your store stays profitable and your impact keeps growing.

1. Rent & Utilities: Make the Most of Your Space

You may not be able to change your lease or utility rates, but you can control how your space and energy are used. Small, everyday decisions shape how efficiently you manage these costs. Here are a few ideas:

• Use front-of-store space for top-selling or seasonal items that drive traffic.
• Label donation zones clearly to avoid cluttering prime sales areas.
• Shut off lights and adjust heating or cooling in back rooms during closed hours.
• Run monthly reports in your POS system to catch energy spikes or billing issues.

These changes can lead to less waste and tighter control over your largest ongoing expenses.

2. Staff Wages & Benefits: Match Labor to Store Activity

Wages and benefits are one of the biggest retail operating costs for nonprofits, and even small scheduling mistakes can drive up expenses. Tracking labor expenses through your POS system helps you avoid overstaffing. 

Use these strategies to manage your hours more effectively:

• Use sales reports to identify peak hours and build a schedule around them.
• Assign volunteers to low-priority tasks so paid staff can focus on sales and processing.
• Schedule shorter shifts on slower days to avoid unnecessary labor hours.
• Monitor total weekly hours in your POS system and adjust before hitting overtime thresholds.

When your staffing aligns with store traffic, you avoid extra hours and keep payroll under control.

3. POS & Retail Software: Choose Tools That Save You Time

Thrift stores have a lot going on at once — staff are taking in donations, pricing items, checking out shoppers, and promoting events. Trying to handle all of that with separate tools slows you down and leads to mistakes.

Using an all-in-one tool lets you: 

• Accept and track donations as they come in, so nothing gets lost or miscounted.
• Process sales and update inventory automatically to prevent stock errors.
• Schedule staff and volunteers in the same system to make coordination easier.
• Run promotions and view marketing performance without switching platforms.

When everything’s in one system, you cut software costs, avoid mix-ups, and keep your behind-the-scenes workflow moving.

4. Marketing & Advertising: Reach Shoppers Through Multiple Channels 

It’s easy to overspend on ads that don’t generate results. Thrift stores don’t need big budgets; they need marketing that builds visibility, attracts people, and supports donations.

Try these budget-friendly strategies to keep your store in front of your community:

• Print promos or donation reminders on receipts or bag stuffers so every shopper walks away with a reason to come back.
• Plan and schedule weekly social media posts using free or low-cost tools like Buffer or Later to stay consistent. 
• Team up with local schools, churches, or small businesses to host donation events or co-promote fundraisers that benefit both sides.
• Track promotions in your POS system to see which efforts lead to sales, not just clicks or likes.

The goal isn’t to be everywhere — it’s to put your energy where it counts.

5. Donation Pickup & Transport: Optimize the Route, Not Just the Ride

Offering donation pickups can help stock your shelves, but the costs can sneak up on you — especially if your routes or schedules are inefficient. Making simple changes can keep your trucks moving, saving time and money. You can: 

• Map out routes by zip code or nearby streets to avoid backtracking and long hauls.
• Pick set days for pickups so your schedule is predictable and easy to manage.
• Use scheduling tools that flag duplicates or outdated requests to save time on the road.
• Log expenses like fuel, mileage, and maintenance to identify patterns and adjust how often you're sending out the truck.

Keeping your pickup process efficient means fewer empty miles and more usable donations with less wear on your vehicles and a smaller dent in your budget.

6. Credit Card Processing Fees: Watch the Margins on Every Sale

Credit card fees can chip away at your bottom line in a thrift store with tight margins. Even a 1.5–2.5% fee on every transaction adds up, especially if you’re ringing up dozens of small purchases a day.

To keep these costs in check without turning away card-paying customers, you should:

• Compare processor rates at least once a year to catch changes in fees, hidden charges, or better deals from competitors.
• Set a minimum card purchase amount (like $5 or $10) to avoid losing money on small sales.
• Track payment types by day and week to notice patterns and high-fee trends.
• Use a POS system with integrated payments to break down credit card fees clearly so you can see exactly how much each sale costs.

Those few cents on each transaction might not seem like much, but over time, they can turn into hundreds or thousands of dollars you can put back into your programs.

How Small Changes Can Reduce Retail Operating Costs

Thrift stores operate on tight margins. Everyday costs — from supplies to staffing to utilities — can add up quickly. Staying on top of retail operating costs requires clear visibility into your spending and the ability to make fast, informed adjustments.

ThriftCart POS has features that help you track expenses, organize pickups, manage staff, and keep everything running on one system. 

Book a demo today to see how our industry-specific POS solution helps you spend less time on back-end tasks and more time growing your store, your team, and your reach in the community.