How Much Does It Cost To Run My Shop

[@jerdwn1]

Pete I’m so glad you like the cookies I dropped off on Saturday. I sold a couple of KISS items to your shop. Thank you for the videos that you share! Best regards, Jerry Downing

[@houdinihir9549]

Please don’t send cookies, they could be poisoned so they were not eaten. Best Regards, Pete’s security guard.

[@matrepharaoh8260]

@@houdinihir9549poisoned for what? 🙄

[@jimtuna1354]

​@houdinihir9549 lol whatba dumass you are, yeah they could be poisoned something she made her self

[@estatesalechannel3667]

I used to have a shop, have my pawn license, run online auctions every week, etc etc - have been 25 years and all I can say is if you are buying stuff at .50 on the dollar you will get crushed. I’m sure Pete has many buys not filmed that are pennies on the dollar - heck eBay is taking a huge chunk too before these fixed costs he is discussing… tough tough business… even w/out the KZbin $. Best wishes to the Trading Post in the future - I love watching without the worries of working retail hours, theft and liability in the shop, and of course the cops showing up for stolen goods….Pete does it as smooth as any I’ve seen!

[@phillipbyrnes2885]

I have wondered that too 50cent on the dollar,there would need to be a massive amount out items coming into the shop to make money

[@davidg9421]

Agree on .50 cents on dollar issues. My rule of thumb is .13 cents on the dollar. Very good video In sharing this breakdown, thanks.

[@conors2104]

yeah, if he buys it @ 50% and his costs are $25,000, he needs to sell $50,000 every single month just to break even. is that feasible?

[@lavs8696]

well he buys .50 cent on the dollar but pleasantly gets surprised lots of times. .50 cent on the dollar is the LEAST at which the item can sell, he always bases it on the least the item sold for. not to mention tons of times he doesn't even know how much an item will fetch but has a good understanding and likely gets much more than what he anticipated. id say blended its probably closer to .30 cents. maybe even less, even though in essence he does buy for .50 cents, that number is much less, even on filmed items.

[@RobbyTripp]

This guy is just so wholesome. It’d be awesome to meet this man one day and shake his hand. Man the stories he could share!

[@operadog2000]

Very well said!

[@FJTreasures]

We have had the pleasure to meet Pete. He is the same down to Earth, straightforward person on and off camera.

[@whodidit99]

I wouldn't have the patience to do what you do. You are a master of customer service, dealing with the most difficult people, some who seem to be "off", to be kind.

[@jay-rus4437]

As a small business owner I can certainly relate to cost and overhead. While I enjoy running my own business, and Im not complaining, it does look easier from the outside looking in. Only another business owner truly understands the weight we carry to manage all the aspects of day to day operations.

[@freddyrussell6611]

Of course the cookies tasted good…. THC. 😂

[@NesconProductions]

Having been watching Pete (& company) for years and besides his business acumen is the trove of knowledge (& connections) he's build over time. He's a true / classic example of what the 'American Dream' is all about & Kudos to him! Think the most fascinating thing to me is that Ruby (the Macaw) might outlast us all .

[@knowyourrights9793]

Wow! I was blown away by the Monthly Total of expenses!! Thanks for Giving us some insight on the Financial Part of the business. It take an *Extremely Brave, Intelligent and Confident Person* to run this type of Business! Not knowing what's gonna sell and for how much & Not knowing what's gonna come in this month, There's some many variables to contend with!

[@fishflash1]

Very informative for people who never ran a business. Employing a staff is supporting them them and the community. Small local businesses help a community thrive.

[@borderprepper]

Pete, You didn't want to offer "consulting" but this video should be required viewing for anyone thinking of starting up about any kind of business. Great basic info and stuff some folks don't think about enough before jumping in.

[@goldandsilverminingintheci8942]

I had a shop for a bit that I ran solo. I repaired jewelry, made new, bought and sold. However, after 4 years, I found I didn't like sitting in the shop and dealing with scammers. I found I was more of a hunter/gatherer. I now go to 2nd hand shops buying collectibles, precious metals, art, musical instruments and reselling them. With my jewelry making background, I can spot precious metal easily. It works for me.

[@pyrexmaniac]

Thank you for doing this.....very few people really understand that there are truly significant costs to running a succesful business.

[@TheSanjeev916]

I own a liquor store and it costs about $75k a month to run my place. There are so many angles you have to look at as an owner. Nice video thanks

[@shevshep]

Hi Peter been watching you a while now and love the channel. For me the one thing you said that tells me you are a good businessman (both for yourself and your employees) is describing your staff not only as your biggest expense but also as your biggest ASSET! So many employers forget that their staff are crucial to the success of the business. LOVE IT!! and keep doing what you do.

[@adventuresbackroad2534]

Why you talking always the spending, why you don't talk about money you make. If you don't make money then sold your business. You always complaining. Your problem will be resolve.

[@paulneron375]

YIKES! It's time to go back to a shipping container up der' in wisconsee-in, just put it next to dat' pole-barn der', an get yourself sum' flea market peoples and pay-em cash to head out to da' markets to sell fer' ya'. Oh don't forget, accents of Purple in the store promotes purchasing, sorda' like red, yellow an' green make you hungry at dat' hot dawg' stand!

[@grumpy1311]

I bet it takes a few years to get up to flight speed and inventory volume. I have mentioned before, I grew up at my friend's father's antique shop. It was called " Super's Junkin'" . It was not a resale shop, nor a fancy shop. But he had some really neat old stuff, always new old stuff coming in. He would often do buy outs of items in old barns and homes, where the owners were moving or deceased. Learned a lot as a kid at that shop . A great memory. Thanks for bringing that vibe back Pete

[@WhiteisrightNationwhite]

Milo was a sweet boy , always good to everybody who came into the shop. Definitely missed by your viewers!!

[@ilj1259]

Honey walks over everything... Friendly cat as well.

[@TheRmm1976]

I remember last year you were trying to buy the building. I guess the owner ended up wanting too much money? Seems like you take great care of the place considering it's a lease.

[@RDStudios]

It's great you shared some numbers Pete to really show how you manage your business. The one thing you didn't speak about is your bookkeeping. Do you handle all that and taxes yourself of do you hire an accountant? Also, do you turn in paperwork monthly, quarterly or yearly? Thank you for being so open and honest with us viewers.

[@maxandshakira]

I don't understand how you survive with such expensive outgoings but I'm glad you do !! I'm guessing you must sell lots of things online! Very few people understand how difficult it is to run a decent size business and it takes courage too !!!

[@ToddPuglisi-b5x]

Thank you so much for this information. Love you Peter.

[@ChainringTours]

The one part you didn't cover was your idea for margin when it comes to things you buy, but after a few years of watching it's double on in store items and 1/3 Ebay's price, both work to 50% margin before your monthly expense because ebay has fees and extra employee time to list, deal with things. Having grown up with my mother being an antique and glassware dealer it's interesting to see where it's at 30 years later.

[@ILikeStyx]

I think it's great that you are open and transparent about running a small business, some people think it might not cost a lot or that it's relatively easy if you just work hard! It's not easy, and YOU need to make a living!

[@ICYPROFITS]

Seriously been considering opening a shop just like yours in my area. Ive wanted to ask these questions on this video. After reselling for 6 years now I'm ready to take the next step. $24k a month and that doesn't even include working capital for items

[@pyrexmaniac]

I think the biggest factor in any business success is.....location, location, location.

[@DoppaD]

I can tell that you're a good boss... I think a cool video for you to do would be info on your experience with KZbin. Ad revenue, tips, unexpected issues along the way, etc.

[@OzSkyking152]

It is always amazing how certain business can run with all the behind the seen expenses. Good video..

[@markliter5077]

When you make upgrades and the maintenance to the building. Why not the owner pay for that? You are the renter.

[@spudth]

PETE, SAY THAT AGAIN ABOUT IKEA, (so my wife can hear.) Pretty stuff but usually junk.

[@J0nny61]

Love your photo of Honey and Ruby your Macaw. I'm a new viewer, but noticed straight away, your honesty and integrity. I think this video cements my observations. I'm staggered by your costs, one slip up and its curtains for you. I do hope you keep doing well Pete.

[@undercoverarbitrage4336]

Been listening for years now. Think it’s time to send Pete and the team some more biscuits from the U.K. 🇬🇧

[@kathyred3310]

What you do is not easy!😊 love the natural light!

[@garywatt4546]

Interesting video Pete. Of course, if the economy goes really bad and you face depression conditions, you may be able to buy an enormous amount of cheap stock, but you’ll have virtually no people buying the stuff. It’s a fine line to tread.

[@bobday1654]

Why do I feel 10k is owner salary

[@robsomething4435]

Everyone complaining about ebay charging ~13% in fees needs to watch this cost breakdown over and over again. They will hopefully realize how much of a great deal they are getting on the platform - especially those who are constantly threatening to leave ebay and open their own brick and mortor (as to not pay fees on ebay). Hopefully it will serve as a real eye opener for them on what running a real business can cost. Also... $5k/mo for that size building is a steal. I've been searching for a warehouse and the cheapest I can find for 1500sf is $6500 - nothing included but water. Your space looks to at least 2x that.

[@seattlesauce]

I'm still trying to understand how 6 full time employees (which includes a managers/owners salary) is 15k a month. So 6 people making absolute bare min/min wage is 15,876 a month. And that doesnt include any benefits, insurance, any type of bonus, anything at all. I guess "Chicago land" area must be cheap. If he was here he'd be paying people less than min wage and no benefits. Wow.

[@LorneVignettes]

Peter, how the heck do you keep up with that? I would Epically fail doing that. Wish I could be your video guy though. Dream job for me. Anyways keep up the good videos. You are the most fair guy I've seen in that business. Probably why you are so successful.

[@FeIix916]

i dont usually ever comment but i just wanted to tell you Pete your cat is BEAUTIFUL!

[@dtrrider1]

$5000 rent is actually literally insane. The only people making money in America are landlords.

[@chubbrock659]

5000$ a month?!?! 😮 holy sheet, you’re getting hosed man. Go buy your own and put the money in your own pocket!!

[@MikeDancy]

you see that article where a guy in the UK was sued for cancelling a ebay auction early? wild stuff

[@bizzee4sho]

I assume the editors expense is through youtube money? Love the video, youre the man!

[@ytzpilot]

As a small business owner I 100% agree my employees are the most important part of the business, they are also a big part of the our culture as well. I wouldn’t be in business without my staff

[@imjody]

I really appreciate you sharing this with us, Pete! That new wall color looks great! :)

[@todtalk3912]

I'm surprised the payroll is only 15k. I guess uncle Sam doesn't need to know all$$$ lol. You are a great person/boss/business owner.

[@lociflow6154]

If Pete was my boss, i'd never quit the job lol

[@chubbrock659]

He’d probably fire you anyway

[@Liz.N.Belle.]

Thanks for being so open about those numbers. Far and few between are the people willing to share their actual numbers. Hats off you sir! Great shirt btw in this video...if only she had a little green bay G on it somewhere....nonetheless great wisconsin sweatshirt! You are just like my pops...no hoodies, and his sweatshirts are all like 10+ years old and still look new...😂😂 I need a new Hoodia monthly not to look like a grub 😅😅😊

[@lesjones5684]

You don’t pay your employees enough money 💴

[@VintageStereoCollector]

The guy is cheap lol 😂

[@AdamsExploits]

Thanks for sharing Peter. I agree 100 % about the employees. Hopefully one day I’ll be able to come out and visit your store and say hello.

[@michaelpittman3889]

Good video. Let’s see those KZbin numbers next!

[@sittingyak]

I own a pawn shop and Pete's on the money. It's exhausting even thinking about operational costs. Everyone wants to squeeze an extra 5 bucks out of you but at the end of the day the pawn shops balance sheet may not look better than yours.

[@darkbydesign1031]

the things is in your position is how much you can offset that monthly bill with how much you make off you tube, your channel is very interesting and great to watch

[@gregrorabaugh564]

Absolutely perfect explanation of Business 101. I have been watching since 2015. I think you stated in 2013 or 14. Keep up the good video's and give us an update on that new property you purchased. Love your honest and true to life stories and heartfelt enthusiasm.

[@davidstevensasidewayslook8831]

i ran my retail business for 40 years (I'm retired now) and the biggest problem was always getting people to work for you whom you can trust. The number of people I had to fire because they were stealing from me is as long as your arm. I always treated my staff with respect and paid good wages and if we had a good trading month i'd always give them a bonus. But once people start handling cash they just get tempted......

[@casienwhey]

I believe that and have seen it too in various jobs. It takes a very (very) honest person not to steal when handling lots of cash.

[@davidstevensasidewayslook8831]

@@casienwhey indeed, over the years I had several employees cuffed away by the police and prosecuted for "false accounting" ie stealing! I had CCTV at the promises not only pointing at the stock/customers but also watching the tills and warehouse. I caught one employee removing stock from the warehouse, lobbing it over the fence round the back and then coming vback at night to retrieve……. I did random spot checks of staff vehicles, its amazing what they put in the boot thinking it won't be missed.

[@OldsmobileCutlass1969Va]

I worked retail in a store as a cashier supervisor with another guy. Every night we had to count the drop (change) safe. It always had $2500 in change in it. One night the other guy went home with everything but the pennies and nickels! He was arrested 2 days later! Where I work now people are getting fired for theft all the time. Someone asked me if I was even tempted to take anything? I said nothing in here is worth going to jail for!

[@davidstevensasidewayslook8831]

@@OldsmobileCutlass1969Va indeed petty theft or more is not worth it, risking jail and all its future implications is just not worth it for a few hundred or even thousands, if you ARE gonna do something do a Brinks Mat gold bullion robbery which was for £20 million..... that's worth a risk!! Mind you most were caught and ended up doing 25 years, and all are now dead, mostly gangland slayings....

[@casienwhey]

Pete, you should create a new sign and hang it on the wall behind your counter as follows: "It costs me $25,000 a month to run this business before I make a dime. Please remember that when you ask me to make a charitable contribution to you." That would help with all the sob stories and complainers asking you to give them money for worthless crap.

[@johndoe-bh3xx]

Yeah, fixed expenses are real and the income statement and balance sheet are important but your cash flow statement in my opinion is the most important thing. Owning a business is hard, sometimes I feel like I wouldn't recommend entrepreneurship even to my worst enemy. Over 20 years in over here. Thanks for the video and now maybe people will stop haggling so much lol... yeah right. Good luck! Keep it small! My business got stuck at $2mm in revenue with over $50k/mo in fixed expenses for about a decade and then crashed. Back then I had the mentality to get to $50mm in revenue... now... I've learned to keep it small and optimize it then you can turn down sales that may be problematic and really get that cash flow perfected and focus on your numbers and really enjoy the business. You seem pretty happy, congrats!

[@mjlives5428]

Always wanted this video...Thank you! Gives so much context now.I mean you have to make over 1k a day just to break even.Meaning over 2k on sales average a day as most stuff you buy on average at 50%.

[@sirploko]

Choplac chick cookies..

[@bluebroun]

Love this one. Great content!

[@mrrichard8837]

Love the chocolate chick cookies!

[@jayaustex]

Fascinating! I don’t think I would ever have the stomach to have people depending on me for their livelihood. Takes a lot of guts to do this type of business. Thanks for the great information over the years. Keep up the great videos! Jay

[@Love_Street]

thanks for the behind the scenes video. i never realized you had that many expenses 💵

[@59LesPaul]

One major expense missed was, is how much average you spend per month on buying inventory? ...

[@jackiechapman8189]

Gr8 video and content Pete.. The new paint looks fantastic and you really did a good job.. Thanks for sharing this about costs of running your business..🤔 It's really expensive to operate..😲 Love the birds and Honey of course they're all so cool..😍😉 Take care..👍💕🔥👊

[@jnorth5689]

As a business owner myself " different business" I'll tell anyone looking to work for themselves. It's a lot of work and it's on you. A day off as a owner vs a worker means something different. You don't get a guarantee check like you would working for someone.

[@capicolaspicy]

Loved it Pete! Great episode... So many people have no real idea of the hard cost to have a storefront operation and that doesn't even touch the number of hours you put in per month.

[@pyrexmaniac]

Even without a bricks-and-mortar operation, the overhead costs in most businesses is a concept utterly foreign to most people.

[@lilmsgs]

Full time employees, $15,000??? Seriously?

[@blackrabbit3pl]

I've always wanted to have a shop like Pete's. Businesses like his are so important for people looking for cash and for people who don't have the funds for something new. I would imagine that ecommerce has helped a bunch in this space like on ebay, etc.

[@sofadream6165]

ebay is DEAD! Has been for years!

[@ccgb92]

@@sofadream6165 lol no

[@HandbagDiva]

Pete eating the weed cookies🤣

[@alanguile8945]

25,000 a month before you make more than your salary! Watching you buy stuff for a few dollars that is some turnover. Yet they will still complain!

[@KodyCaron]

Great video, Pete. I always wondered this. Thank. You for sharing

[@johnpaxton1549]

Love this channel but kinda disappointed ive emailed them over a product over 5 times in 3 weeks an still no response . I understand they get alot of emails but surely they could respond back .

[@ezez1378]

Milo was the best and I cried like a little baby when you told us the bad news

[@tubengagements]

300 Grand a year! One expense you didn’t include. What’s the average amount you SPEND buying monthly or annually. You can’t sell without buying so you must know what your monthly or annual purchases are Thanks

[@binnsbrian]

Very informative. I notice you didn't talk about how much you bring in. LOL

[@teraysa919]

Hi! The upgrade of the counter area looks great! Just a small thought, u should offer consulting for a fee. Also as consultant for business degree at colleges, high schools, community education. Your real life knowledge is beyound a text book. U could present so many seminar topics. So many. Just a thought, u would do great!,extra income and not that much prep because of your acquired knowledge. Just a thought. Great video. Thank u.

[@trujillo71921]

I'd bet his youtube money covers those bills and money made from the shop and online is all profit

[@BlackManson777]

You forgot you making money off this youtube channel too so count that

[@rrt08]

Most of these businesses on KZbin seem to be more into KZbin revenue than running their business.

[@ericfraser7543]

Oh there's Ruby in the back, 2:15 I've been seeing your daughter's African Grey in your recent videos, for a moment I thought something happened to Ruby!

[@zachsmith2908]

Dang the employees don’t make much 🤔

[@GTA19697]

wow pete. i never would have thought it cost you so much a month to run that business and thats before profit. well im so glad are are still in business and still doing good enough to stay in business. I love your video’s

[@Jawwaad1111]

Let me see if I’m getting this right. You spend 15k a month on 5 full time employees and yourself plus the camera man. So it seems that everyone only makes around 2k a month. Everyone seems to be making maybe $12 an hour.

[@daisick7953]

I guess it goes a bit like this - Pete 4600 Second guy 3600 New employee 2900 Other new employee 2900 Camera guy (part time) 1000

[@Jawwaad1111]

@@daisick7953 Damn. That’s a good breakdown and definitely seems probably right. Thanks for the info

[@horsebytes]

No way would I eat, or feed my animals, cookies of unknown origin!

[@UltraReefReseller]

You were saying 15,000 and I thought you were saying 50,000!! Lol. At any rate, do you think you will ever get to buy the building? If you are still renting, how did you come to the agreement to still put money into fixing up the building? Thanks!

[@RedsMadness.]

Bout dang time you painted and upgraded those random counters and stuff. Make it look professional… I love you animals I really do but please stop letting your cat walk all over peoples stuff when they bring it in..

[@TheOddOddish]

It has to be the coolest feeling being able to Employ 5 people! That’s incredible Pete! You are a true inspiration!😊

[@geoffcarle]

Had the pleasure of stopping into the Trading Post today. The staff was very friendly and helpful. I will definitely be going back!

[@richardkeith6822]

Enjoyed this episode though it was a bit different than usual! Thanks for the insight of running a business like yours! God bless you and your family and Your business!👍

[@FLOWERSANDSLOTS]

Thank you for sharing such personal information with us. I truly appreciate it!!

[@pyrexmaniac]

Those numbers are truly sobering. What about taxes???? Sales, payroll, municipal, state, federal???? What about eBay fees? What about bookkeeping and accounting costs? Do you do your own bookkeeping and taxes? Banking fees? Maintenance and upkeep? Most people havent the slightest idea about what it takes ($$$$) to run any business, much less a profitable or lucrative one.

[@ozzyfranf]

I've been watching for years, when you mentioned new subscribers I noticed that I wasn't subscribed. I quickly fixed that.

[@kennethdetwiler7050]

I remember u were bummed.. I've been there. Oh well..We must carry on.

[@VintageStereoCollector]

$300 something thousand a year woahhh almost half a million a year,Wish your Bussiness to be well each month and each year!!!

[@pegedey1291]

Peter you gave good advice and you take good care of your people. It shows especially in their loyalty. Sweet Mrs Walter's backing away while still gripping your hand. The gray looks nice!

[@immaresellit]

People always seem to nag at us resellers when we want to negotiate lower prices. We don’t know for sure when an item is going to sell or exactly how much it will sell for. There are so many expenses that some don’t think about. When an item is returned its hard to recover those shipping costs. Anyway, thanks for the breakdown Pete.

[@stevenjames3242]

Eeek! 288,000/year. I would love to start a shop. I know my expenses would be much less as A much smaller store would be where I was looking. I found one storeffront in a nice little area for $275.00/month. But some idiot offered more and the renter obviously went with their offer. I will get there. Im 57 yrs.old annd still going after the dream!!

[@dedstroke2]

Curious as to how much your KZbin revenue supports overhead or does the revenue from the shop activity alone support overhead (including your payroll) and profit. From what I have read KZbin revenue can be very lucrative. Really enjoy your videos. Former Chicagoan who married a wonderful Chicago Polish girl. :)

[@OldsmobileCutlass1969Va]

Realistically in today's economy... You probably need $100-150k start up money to open a shop. There's going to be several months of just buying lots of inventory to fill the shelves before any considerable profit can be made to have the shop profitable.

[@jackonthefarm5540]

So what would typical sales revenue be per month as well as cost of sales? "Cost of Sales" or COS would be the direct purchase cost of the items sold. No overhead. And how many sales transactions total per month? Do you use accounting software like Quickbooks?

[@roninsteel]

Consulting is a huge waste of time and energy. I've done it for 3 different restaurants. You give your professional opinion, they take maybe 20% of suggestions, you do all the difficult legwork, they know better and end up failing.