🏪 Thrift Store Expense Analysis
Why did expenses jump from ~$60K to ~$100K in FY2022?
🎯 Key Finding
The FY2022 expense increase of +$45,487 (+79%) was primarily due to staffing expansion post-COVID recovery. Wages doubled from $25,750 to $52,559, accounting for 59% of the increase.
📊 10-Year P&L Overview
| Fiscal Year | Revenue | Expenses | Net Income | Note |
|---|---|---|---|---|
| FY2016 | $86,037 | $63,165 | $22,872 | |
| FY2017 | $75,071 | $72,521 | $2,550 | |
| FY2018 | $63,904 | $57,717 | $6,187 | |
| FY2019 | $83,243 | $59,584 | $23,658 | |
| FY2020 | $63,883 | $59,335 | $4,548 | 😷 COVID |
| FY2021 | $116,765 | $57,543 | $59,222 | 📈 Recovery |
| FY2022 | $107,371 | $103,030 | $4,341 | ⚠️ EXPENSE JUMP |
| FY2023 | $138,830 | $175,325 | -$36,495 | 🌊 Flood Year |
| FY2024 | $120,755 | $100,582 | $20,174 | |
| FY2025 | $147,049 | $99,775 | $47,275 |
🔍 FY21 → FY22 Expense Breakdown
Total increase: +$45,487 (from $57,543 to $103,030)
💡 What Happened in FY2022?
1. Staffing Expansion (+$27K)
Post-COVID recovery required hiring additional staff. Wages nearly doubled from $25,750 to $52,559.
2. Capital Purchases (+$7K)
New equipment (possibly POS system, fixtures) resulted in increased depreciation expense from $3,823 to $10,849.
3. Benefits Expansion (+$4K)
More employees enrolled in medical insurance. Premium costs increased from $9,357 to $13,710.
4. Utilities & Operations (+$7K)
General operational cost increases including utilities, rent, and miscellaneous expenses.
📌 Why Expenses Stayed High After FY22
The FY22 expense increase represents a permanent structural changein operations, not a one-time spike:
- ✓ Staff hired in FY22 remained employed
- ✓ Benefits enrollment is ongoing
- ✓ Equipment depreciation continues until fully depreciated
- ✓ Operational costs reflect expanded hours/services
FY2023 Outlier: The $175K expense year was due to flood damage repairs (~$75K extraordinary costs). This was a one-time event, not related to the FY22 operational changes.
Data Source: QuickBooks Statement of Activity Detail • Class: USC Thrift
Analysis Date: January 23, 2026