So in general, cards seems like a fairly low-margin industry. Really, we should all sell cosmetics! 1000% markup. But seriously, how much of your career / business choices are about wanting to make money with a "product" / in an industry / hobby you also ENJOY? And to what extent does freedom / independence / "being your own boss" factor in?
Thanks for the question Kevin.
You're right - buying and selling cards can have low margins and that can make it difficult to sustain a small business. Luckily, there is more than one way to skin a cat, and many dealers I know do business very differently.
One dealer in particular I know really tears through boxes at shows looking for undervalued cards that he can buy for often less than a dollar, put a new penny sleeve/top loader together and then put in a box of his for $3, $5, $10 or more - knowing that he only has x amount into it which gives him the freedom to negotiate off of his price when customers want to bundle multiple cards together.
The other way I have seen people be successful is to have a primary source of income that helps fund the buying and selling business.
For me, I am a very small fish in a very big pond. I make my buys strategically; and try to find new and different ways of selling my inventory. I only focus on vintage (pre and post war) so I try to focus on collection buying when I can to extract the most value I can out of my money.
When I began buying and selling cards full time in 2020, I had just lost my last "real" job in the beginning of the pandemic. I had encouragement from my hobby friends, my family and my then-new partner (now fiance) to try this thing. I did have reservations that I would grow tired of the actual card itself, and eventually just view it as a vehicle to make money but what actually happened is that I came to love cards MORE - which I am thankful for.
I hope these stories help answer your questions!
So in general, cards seems like a fairly low-margin industry. Really, we should all sell cosmetics! 1000% markup. But seriously, how much of your career / business choices are about wanting to make money with a "product" / in an industry / hobby you also ENJOY? And to what extent does freedom / independence / "being your own boss" factor in?
As for motivations, my decision to pursue T206 Cards as a business is definitely a long-term play more about fulfillment than anything else. The opportunity cost of not continuing my advertising career is significant in financial terms, and I recognize that may never earn my prior salary in terms of profit from cards. Nonetheless, I love working with vintage collectibles and the community I've developed over the years. Working in an industry you enjoy makes a huge difference!
As for margins, I relate to Brian's answer a lot here! There are a number of strategies and they're really all about creating a unique value offering, and about recognizing and capitalizing on opportunities. I try to stay focused and what I buy, and try to have a plan for everything I take in. There are definitely hits and misses. Now and then you'll score hits are 2-5x your investment and those go a long way in making up for cards that don't sell as quickly or for as much as you'd like.
