Buying out a dealer

[keeblr311]

Hi I'm looking at buying out a former card dealer and wondering what you think I should offer on percentage of comps? I need to be able to make money on the long run of the deal.

[mjohnatgt]

Similar question asked recently in the Online selling forum here:
https://www.blowoutforums.com/showthread.php?t=1521447

[Rickey]

If that's the info you provide and expect % replies, you are ill equipped to successfully make a deal and should not walk but run the other direction.

[keeblr311]

Thanks for the help

[soey10]

It really depends on the type of dealer, are they a brick and mortar shop owner, a show dealer or a flea market dealer?

Also what are you trying to do with buying him out? Saving some for your own collection while selling some off, are you trying to flip it for a quick profit or are you trying to become a dealer yourself?

Lastly what is the volume and what does it consist of? Approach should be different if buying a semi truck worth of lower end stuff as opposed to a few hundred high end graded cards.

So as you can see the detail you gave us doesn’t touch on any of this so it is hard to say what a fair price to pay.


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[Hobbyboxer]

I’m order to make money in a falling market you need to offer him a percentage that gives you a chance to be profitable, but also him the convenience of getting out in one fell swoop. I’d be in the 45-50% comps. You have to put the time in and make a profit. That costs money. Most on here won’t like that answer, but that’s why they aren’t in a successful business.

[jmarascojr]

I like to watch some of the "influencer" videos on YouTube when I get bored, they seem to offer each other somewhere between 70-80% comps.

Low ball the guy at 50% if you don't know him very well and you know he wants out, he might take it, but I think you'll end up in that 70-80% range.

[mjohnatgt]

Originally Posted by jmarascojr

I like to watch some of the "influencer" videos on YouTube when I get bored, they seem to offer each other somewhere between 70-80% comps.

Low ball the guy at 50% if you don't know him very well and you know he wants out, he might take it, but I think you'll end up in that 70-80% range.

If you're buying out a dealer who's getting out, it's very likely he's already sold off the easy stuff. I would not recommend buying at anything close to market price, especially if you're just starting out.

[Archangel1775]

Originally Posted by Hobbyboxer

I’m order to make money in a falling market you need to offer him a percentage that gives you a chance to be profitable, but also him the convenience of getting out in one fell swoop. I’d be in the 45-50% comps. You have to put the time in and make a profit. That costs money. Most on here won’t like that answer, but that’s why they aren’t in a successful business.

It really goes back to quality and volume. If it was a set of 1997 Precious Metal Gems originally built in the 90s with a case of 1996 Topps Chrome.....and you say no to the guy wanting 60%......that would be a mistake. If they are 100 monster boxes of 2015-2020 Prizm base with only the inserts and parallels pulled,..you'd also be a fool for taking it for $50%. In general, that percentage is what dealers in the 90s purchased at. Most of them went out of business.

[Hobbyboxer]

Originally Posted by Archangel1775

It really goes back to quality and volume. If it was a set of 1997 Precious Metal Gems originally built in the 90s with a case of 1996 Topps Chrome.....and you say no to the guy wanting 60%......that would be a mistake. If they are 100 monster boxes of 2015-2020 Prizm base with only the inserts and parallels pulled,..you'd also be a fool for taking it for $50%. In general, that percentage is what dealers in the 90s purchased at. Most of them went out of business.

I think we all know a dealer getting out isn’t trying to move precious metal gems.. He would have moved those already or kept that. He will never need a fire sale on those.

[Archangel1775]

Originally Posted by keeblr311

Hi I'm looking at buying out a former card dealer and wondering what you think I should offer on percentage of comps? I need to be able to make money on the long run of the deal.

Originally Posted by Hobbyboxer

I’d be in the 45-50% comps. You have to put the time in and make a profit. That costs money. Most on here won’t like that answer, but that’s why they aren’t in a successful business.

Originally Posted by Hobbyboxer

I think we all know a dealer getting out isn’t trying to move precious metal gems.. He would have moved those already or kept that. He will never need a fire sale on those.

A lot of generalizations in your comments. Maybe the guy was a dealer in the late 90's that closed shop but then again, maybe he invested in 2021 Prizm basketball at $3500 per box..... it goes to my original point, volume and quality. Your first comment talks about making a percentage offer based on nothing but the OP's basic question. That's a mistake without knowing the contents of the deal. Then you go on to say that most on here wouldn't agree that 50% is a good percentage and its because they suck. I'm just saying to you that 50% is a number that's been around for decades, it's nothing new and that you suck. Haha

[Hobbyboxer]

Originally Posted by Archangel1775

A lot of generalizations in your comments. Maybe the guy was a dealer in the late 90's that closed shop but then again, maybe he invested in 2021 Prizm basketball at $3500 per box..... it goes to my original point, volume and quality. Your first comment talks about making a percentage offer based on nothing but the OP's basic question. That's a mistake without knowing the contents of the deal. Then you go on to say that most on here wouldn't agree that 50% is a good percentage and its because they suck. I'm just saying to you that 50% is a number that's been around for decades, it's nothing new and that you suck. Haha

There will always be generalizations in vague questions. Anyone who was a dealer will know how to move rare and valuable products quickly for market value. If they are left with a surplus of supply I’m sure it’s stuff that is not as desirable and easy to move. That’s why I couldn’t be in for more than 45-50% of comps. I’m not saying 50% as a generic number, but as a specific number in a market with values falling and products where I will have to do leg work to move it. I’m not sure why my personal experience and opinion requires you to tell me I suck. The OP asked for opinions and I gave one. It’s worth exactly what he paid for it. The OP can then decide if my input is useful or garbage. No need to personally attack me. You have no idea what kind of experience I used to make my opinion. I think I’ll be happy to keep living my life. I’m sorry you’re stuck in your’s..

[Zedlaw]

Anything over 50% comps and you're doing the dealer a favor. I'd imagine the hard part is establishing comps on a large collection.

[Archangel1775]

Originally Posted by Hobbyboxer

Most on here won’t like that answer, but that’s why they aren’t in a successful business.

Originally Posted by Hobbyboxer

No need to personally attack me. You have no idea what kind of experience I used to make my opinion. I think I’ll be happy to keep living my life. I’m sorry you’re stuck in your’s..

Blatantly call "most on here" unsuccessful....then cry when I say that you suck for doing so.....50% was the most common starting point percentage used in the 80's and 90's when the hobby was in its golden age. It's not a new revelation. Get over yourself dude. Maybe look around and know your audience before making an insulting comment.

[montej1695]

There will not be a right answer in any response…

It’s ultimately based on what the dealer has. Trust in your ability to determine if it’s relatively easy to move at a % that’s worth your time or if you’ll need used car salesmen skills to get rid of it…

Good stuff = higher %
Mehhh stuff = lower %

Good Luck with the process.




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[keeblr311]

Thanks for the responses. Look's like I will average it out to 50% on the recent comps.

[HoustOM]

I think the very best answer is given by Chris (Baseball Card collector on youtube) when he compares 4 types of collections and how much he would pay for each. Video is from I think few weeks ago.
Generally speaking, his videos are very interesting because he details a) how much he spent to buy b) how long he took to sell, month by month c) final profit once everything is accounted for.

[msink28]

Yes. Watch that video. Another underrated point in that video is that Chris tends to buy very specific types of collections because he has lots of knowledge about certain segments of the hobby. If you're picking up a lot of stuff that you have no knowledge about then that percentage has to come down.

Originally Posted by HoustOM

I think the very best answer is given by Chris (Baseball Card collector on youtube) when he compares 4 types of collections and how much he would pay for each. Video is from I think few weeks ago.
Generally speaking, his videos are very interesting because he details a) how much he spent to buy b) how long he took to sell, month by month c) final profit once everything is accounted for.

[Stifle]

How much money would you allow to be vested in a collection without moving any of it for 5 years? If you are willing to have it as a collection without the funds being spent as a deterrent, then go for it. If the funds for the collection create a tight lifestyle, pass.

Not all collections are created for buyers equally.

Flippers / collectors / hobby venturers / etc. what are you to the hobby ?