Getting Started as a Dealer

[SilverRich]

I'm financially secure, with a very successful ongoing business that practically runs itself (with a little help from my kids) who is about 99% retired. I'm an avid collector with many, many books, including double and triple issues of SA and BA keys.

 

That being said, I've considered opening a LCS knowing, or at least assuming, that it is not a good business proposition and I may break even at best. My sole reason for doing it would be the anticipation of the people walking in with a box or two in their hands that may contain a treasure or two, like a Flash 105 or an Action, uh...you get my point.

 

Other than that, dealing comics as a means to support my family in this day and age would be near the bottom of my list. Unless one's been doing it for quite a while and knows the ins and outs of every aspect, I wouldn't expect getting rich.

 

But...if you have a dream, go for it and I wish you all the best. Determination and hard work is a great combination.

[catrick339]

There's a good lesson or two to take away from all of this.

 

First, there's ALWAYS another deal coming along. Don't be in too much of a hurry to spend your money if the deal isn't good enough.

 

Second, when the economy dumps (like now) people sell their stuff to make the house note or buy groceries. Adversity in general means good deals available for those with ready cash.

 

Third, buy quality or buy bulk, and niche yourself accordingly, match your inventory to the folks you want to sell to.

 

I do a few midwest shows, (basically free comics ane beer money for me) and I cater to the readers. That means I bring a little of EVERYTHING, Marvel and DC sure, but also lots of stuff from Dell, Archie, Charlton, Harvey, you name it. Those boxes of goofball titles have saved many a show from being a complete bust, and I now have a rep as the nutcase who will buy anything at all, and folks often bring me longboxes of weird titles at pennies on the dollar. When buying that sort of thing my only hard and fast rule is that I have to be able to sell it out of a 50 cent box and still make a profit....and that's exactly where the lower grade books end up. I don't care if it books for $5 in G, if it's a rough copy of a mundane title, into the 50 cent box it goes. (Dollar box at a big show, )

 

If you do a little advertising, hang out at estate sales and auctions, hit the flea markets and local comic shows, and ask EVERYONE YOU MEET if they have any old comics, you'll be pleasantly suprised at how many comics you can accumulate. Then all you have to do is figure out how to market them profitably.

 

Be sure you love it first though, it takes enormous volumes of time to do things right.

[rob_allan]

I just wanted to thank everyone for both the public and private insight. My two threads weren't "entirely" connected, nor were they independent thoughts either.

 

I just wanted more information because my long-term plan over the next 5-10 years is to be in a business that I have some (if not all) control over. Comics, in some ways, is a no-brainer. I know more about them than almost anything else. And I'd enjoy working with them in some capacity.

 

However, I know there are lots of successful dealers, and I was curious how they started out. My thread topic was probably too broad, but I was looking for a broad range of responses and got it definitely.

 

Super thanks to everyone. I think I learned a lot and heard pretty much what I needed to hear.

 

Thanks to those that made personal contact as well. Very enlightening also!

 

-Rob-

[COI]

clearing $15K of profit probably means making $30K+++ in sales.

 

If this is true, that would make comics a fantastic business. In my former business, my margins were around 20-25% when things were good. I guess I was in the wrong business.

[COI]

30 books for an MBA" or something like that and read each one 2 or three times. You just gave yourself an otherwise $50,000 education that way.

 

Not quite.

[COI]

making a living at this is a brute unless making $15K is your idea of making a living. the way i see it, you need to sell a decent number of "big" books to have a shot at a decent income and to get those Big books you need cash and nowadays it is hard to get over on people who might be selling books like that. you can't do it spending $200 a week building up your inventory...

 

Agreed.

 

Rob, if you have, or can get significant start-up capital, know a lot about the current market, and have a firm grasp of basic retail business principles, go for it. If you're missing any of these things, hold off, or look into something else.

 

Like blob and a few others have said, the bigger margins are going to be found in the higher end stuff, and putting together that kind of inventory is going to be cash-intensive to say the least. Quick flipping of higher end material isn't always easy, and you'll have to be able to afford sitting on some of your inventory.

 

If the recession is going to hit any aspect of this hobby the most, it's likely going to be on the lower end of the scale where people are buying as collectors to "consume" and not to park funds or press for profit. Combine that with the sheer labor required to move $5-15 books in volume, and you may find yourself grinding for very little return.

[Comics-n-ERB]

Here is a response I gave to James Welborn about dealing:

 

 

Hey James,

 

I started dealing at comic book shows in 1990. Since I had been so active in collecting up to that point (minus the 4 year stint in the Marines) I knew a lot of dealers and had become friends with several. One of them realized I was kind of spinning my wheels so to speak and he suggested getting on "the other side of the table". He sold me a good amount of books at a discount to get started and the rest, as they say is history.

 

I ate into my collection a lot over the years to supplement what I was selling (like to make the backboard display look good, I would bring out row of Superman's from the 40's). Do I regret doing this? Sometimes, yes. But would I have what I do now if I hadn't dipped into my collection? Most likely not.

 

To get to the meat of your questions.

 

Getting started was easy, as I pointed out above. I just needed help from one person. You would be surprised how easy it is. Go to a local comic show in your area, find a dealer you like and just tell him you want to buy a lot of books wholesale. You should be able to get table stock for a average of 20 - 30% depending on what he has. When I say a lot that's what I mean. Tell him you want to buy all his half off stock, or all his $5 books, or all his display. It will get their attention quickly and if they haven't been having a good selling day just might do you a real good deal.

 

Do you make money?

 

Depends on how you price and your attitude towards people. You can have some of the best looking stuff in the place but if it is priced too high it won't sell. If you stand (or sit which is real bad) and read a comic while the public is browsing your wares instead of striking up a conversation with them your not going to sell much. Ask them what their interests are. They may say "I am only looking for spidey #121 in high grade. You may have a 121 but it is only VF. So do you say, I don't have a high grade copy? Or do you pull it out and show it to the person and tell them that it is a very nice presentable copy that they may find suits them just find for a 3rd less than the one that is just a little better over all. You will make more PROFIT from cheap books over the long haul, but it takes LONGER. Example: Buy a box of 275 comics for 25.00 and then sell them for a dollar a piece. That's nearly a 90% profit. But how long does it take you to sell that box? Or purchase a Amazing Spider-man 1 in vg for 1,500.00. Carry it around till you find a buyer at your LOCAL shows and sell it for 1,900.00. Bigger amount of money, but only around 20% profit. Bigger profit, slower time. Smaller profit, faster time. It will take a mix of both to be successful.

 

How to find more books?

 

The over all hardest but really simplest part of the whole thing. You would be surprised how much trading/selling that goes on between dealers at shows. Let's say I got a collection in that has several Golden age books and a whole bunch of mid to lower grade silver. I may of bought it just to get the Gold books. I know you like Silver so I give you a call and say hey James, I've got some new stock in, want to take a look at it? I will try to get a decent return but still let it go at a good price just to recoup my money so I will have it available for the next batch of stuff that comes along.

 

At shows, people come up and say they have things to sell. Some want guide for it. You can't do that and be a dealer. It's not about "cheating someone", it's about giving them as much as you can and still feel good at the end of the day and still make money at the end of the day too.

 

You see dollar boxes at shows right? Dealers trade/sell them to each other for anywhere around 10.00 a long box up to 50.00 a box depending how good it is and how long it has been going to shows. Pay more for new stock (stock that has not been carried to a lot of shows) and pay less for old stock. Always remember that the other dealer may not have the same type of customers that you do so even if his stock is old it may be just what you need for your customers.

 

Remember that dealer friend I told you about in the beginning? He and I are still close after all these years. He has a rep for selling certain types of books and I a different one. So in other words we compliment each other. What's "bad stock" for him is great for me. And the reverse, what I might of carried around for a year trying to sell, he can get from me in trade and sell it within two shows.

 

 

Jeez, I've been typing so long everybody else has left work and gone home!!

 

Hope this helps you some. Keep in mind that for me it was a love of comics that lead to dealing. It wasn't to make a living. I honestly don't think you can mix the both very well. SOME for sure, but not a lot. I wanted to keep too many things instead of selling it. \:\)

 

David

[Shark]

shark -- if you have 40K+ books, assuming 30K+ of it isn't 90's drek..there's really no reason you can't make a full time job of it depending on what you need your monthly nut to be. if you need to make $100K to pay your bills, maybe not so good, but if you need $40K....

 

Blob,

 

I understand what you're saying about the volume....I have plenty of that. And I've focused on not accumulating a bunch of 1990's drek....so that's good too. The main problem for me right now is the fact that 50-70% of these are what I consider my "main collection" copies....issues I don't plan to sell for another 10 to 15 years. Whatever is left is duplicates or issues that I don't collect. So I still don't think I could make it fly on what's left.

 

Shark

[MrBedrock]

Like blob and a few others have said, the bigger margins are going to be found in the higher end stuff, and putting together that kind of inventory is going to be cash-intensive to say the least. Quick flipping of higher end material isn't always easy, and you'll have to be able to afford sitting on some of your inventory.

 

Just to clear up something...

High end books do not equate to big margins!

In fact, just the opposite is true. For example I will spend 90% of market for an Amazing Fantasy 15 because I am aware that I can turn it very quickly. 10% is a very small margin. After costs I may make $500 on a $10,000 sale.

But I buy bulk back issues for 10 to 20% of market because of the inherent expenses incurred when dealing with them. Let's say I pay $30 for a long box of books that I plan to sell for $1 each. 300 books in a long box. 90% is a very large margin. If I only sell 35 books I am making more profit percentage-wise then I did on the Amazing Fantasy 15. In the long run I sell a ton more dollar books then Amazing Fantasy 15s and my margins are exponentially larger.

 

[the blob]

Just to clear up something...

High end books do not equate to big margins!

********************

agreed, i think i said that 3 times at least, let's not get margins/profits confused with something else. heck, i think most people would be thrilled making a 33% profit selling a book purchased for $750 for $1000 over selling (and making the effort in selling) 750 books purchased for a dollar each for $1250, even though the dollar books may have a higher "margin"

 

 

[conditionfreak]

"Jeez, I've been typing so long everybody else has left work and gone home!!"

 

Does this mean that you have a "regular" job, besides the comic book dealings?

[Mike Bray]

Like blob and a few others have said, the bigger margins are going to be found in the higher end stuff, and putting together that kind of inventory is going to be cash-intensive to say the least. Quick flipping of higher end material isn't always easy, and you'll have to be able to afford sitting on some of your inventory.

 

Just to clear up something...

High end books do not equate to big margins!

In fact, just the opposite is true. For example I will spend 90% of market for an Amazing Fantasy 15 because I am aware that I can turn it very quickly. 10% is a very small margin. After costs I may make $500 on a $10,000 sale.

But I buy bulk back issues for 10 to 20% of market because of the inherent expenses incurred when dealing with them. Let's say I pay $30 for a long box of books that I plan to sell for $1 each. 300 books in a long box. 90% is a very large margin. If I only sell 35 books I am making more profit percentage-wise then I did on the Amazing Fantasy 15. In the long run I sell a ton more dollar books then Amazing Fantasy 15s and my margins are exponentially larger.

 

To me bulk is the easiest way to get started as a convention dealer . If you are starting with only a general knowlege of the comics market and a few thousand $$ or heck even just one thousand $$ you can get your feet wet at your local and regional shows . You do however have to know what you have in the mix of books and at what level to price it at -- .50 , $1 , $2 and so on . Do you want to organize the books alphabetically ? Throw them on the tables as an unorganized mess ? but overall its a simple way to start - just use your procedes to buy better and better material - buy out other dealers at the end of shows -- and one of the best ways to get nicer inventory( better than bulk books ) ( i think someone mentioned somethind similiar earlier ) one mans junk is another mans treasure - you can sometimes buy leftover collections that have been cherrypicked by larger dealers for the primo material and they just want to dump the lower and midgrade silver and " junk " golden age just to recoup some of their funds -- all it takes is knowing several people in the comics business and always having some $$ on hand and a good rep for buying that kind of material - (thumbs u

[HouseofComics.Com]

Let's say I pay $30 for a long box of books that I plan to sell for $1 each. 300 books in a long box. 90% is a very large margin.

 

So is 900%.

[the blob]

yup, it doesn't take much to be a dollar box guy at local shows.

 

particularly with so many of the comics, even when bought at 10 cents each, are unsellable at $1 or even 50 cents or even 25 cents

 

hard way to make a living.

 

you can't just buy the stuff randomly.

 

 

[ft88]

So, if there are so many opportunities to buy long boxes from dealers after a weekend of a tough show... doesn't that tell you something about being a dealer with long boxes of inventory and doing shows?

[ft88]

30 books for an MBA or something like that and read each one 2 or three times. You just gave yourself an otherwise $50,000 education that way.

 

Not quite.

 

Actually quite. Nothing substitutes for street smarts, common sense and out right intelligence. I just don't think the education you get at a top tier school is worth the money in and of itself. What is worth the money are the contacts you make via the professors and peers as well as the fancy parchment you get for your resume.

 

But for someone who wants to start a business, I'd recommend reading all the books that you would otherwise read in getting an MBA. The education is equivalent and cheaper. Is the education you get at an accounting class at Harvard really better than the same class at the community college?

[MrBedrock]

Let's say I pay $30 for a long box of books that I plan to sell for $1 each. 300 books in a long box. 90% is a very large margin.

 

So is 900%.

I guess buying bulk is better than I thought.

[COI]

High end books do not equate to big margins!

 

You're right, but how easy is it for someone who isn't established to make a decent living selling $1 books? Are bulk long boxes really that plentiful? And what about the logistical expenses involved with sorting, transporting, and storing such a massive quantity of books?

 

There are much better ways to make a living, but that's just my opinion. It might be alright for someone who wants to supplement their income, or who just enjoys doing the convention thing, but to actually make a living at it?

[MrBedrock]

So, if there are so many opportunities to buy long boxes from dealers after a weekend of a tough show... doesn't that tell you something about being a dealer with long boxes of inventory and doing shows?

It could tell you that long box dealers make so much at the show that they can afford to dump the left over inventory and head to the beach.

Spin baby, spin!

[COI]

Actually quite. Nothing substitutes for street smarts, common sense and out right intelligence. I just don't think the education you get at a top tier school is worth the money in and of itself. What is worth the money are the contacts you make via the professors and peers

 

Right, but that's not what you said in your first post. Networking is invaluable, especially if you're going into business. And the "fancy parchment" is the point; it's currency.

 

I ran a business right out of high school for several years, now I'm getting a law degree, so I've seen both sides. Whatever intellectual tools you may have will only be improved and refinded through the educational process. School may not be practical for everyone, nor is it a prerequisite for financial success, but it also can't be replaced by independent study.

 

That being said, I'm in Canada and we don't have "Ivy League" schools.