Do dealers WANT to sell their books?

[Batty Scrooge]

Maybe opportunity cost can be illustrated very easily in comic terms. For example, if you put your money into a complete run of West Coast Avengers for $100 at a show, that is $100 less that you can spend on a book that you see at the next booth. Money is a finite resource (for most of us, anyway) and the way you divide that resource up will dictate how well that resource returns value to the consumer.

 

But then, I'm an anthropologist so what do I know about economics...

 

You also need an option for "do nothing" and leave the money in the bank. US treasury rates are ideal for the "do nothing" category.

[arzach42]

Maybe opportunity cost can be illustrated very easily in comic terms. For example, if you put your money into a complete run of West Coast Avengers for $100 at a show, that is $100 less that you can spend on a book that you see at the next booth. Money is a finite resource (for most of us, anyway) and the way you divide that resource up will dictate how well that resource returns value to the consumer.

 

But then, I'm an anthropologist so what do I know about economics...

 

You also need an option for "do nothing" and leave the money in the bank. US treasury rates are ideal for the "do nothing" category.

 

They are doing something....in the wrong direction!

[Foolkiller]

Just a couple of comments... I do agree with most of the sentiments that most comic dealers and store owners are not terribly good businessmen nor terribly ambitious.

 

However, I think there are some truly notable exceptions... for instance, while Josh is not ahead on the technology curve, can anyone say that Josh Nathanson isn't a smart businessman based on what he's done in the auction market? Same for the group that runs Heritage, a huge corporation worth hundreds of millions of dollars. On a smaller level, say what you will about Chuck Rozanski, I think he's done a lot of things right in running and growing his business. Same with Richard Evans. The guy owns four very successful stores in one of the largest cities in the country. Metropolis is run very much like a corporation and, love 'em or hate 'em, extremely good at marketing themselves and running their business.

 

When I look at other successful "businessmen" in comics, I think of Bob Storms as a prime example. And I think there are things which allow comic dealers to be successful in this line of work, but I'm not sure they are good businessmen.

 

Of course, these are the exceptions, not the rule, but I don't want to paint all dealers with one brush either. I think there are some very bright, hard working dealers as well.

[adamstrange]

When I look at other successful "businessmen" in comics, I think of Bob Storms as a prime example.

Bob runs a business?

 

Given his day job and complaints I thought it was a charity.

[G.A.tor]

Understanding the concept of opportunity cost is easy, but understanding how and when minimizing it can increase your sales is difficult. A kid won't grasp this, nor will the majority of dealers. I'm not sure most of the people talking about the concept here grasp it either; I know I don't.

no doubt application of the concept can be more difficult to implement... but, those that are successful generally have a formula that works for them...look at Metro...they rarely move on a price of a comic...they rarely discount a comic, even if it has been in inventory for years...yet, I would argue that given their longevity and level of success, their strategy works for them... are there lost opportunity costs, i am sure, but obviously they have offset that by having the client base to support their strategy...

 

to each their own (thumbs u

[fantastic_four]

look at Metro...they rarely move on a price of a comic...they rarely discount a comic, even if it has been in inventory for years...yet, I would argue that given their longevity and level of success, their strategy works for them...are there lost opportunity costs, i am sure, but obviously they have offset that by having the client base to support their strategy...

 

If your pocketbook is far larger than the material that's available to buy, no opportunity is lost. My guess is that Metro has the money, partnership potential, and loan potential to obtain money when they need it to not let a good buying opportunity pass them by even if their inventory moves relatively slowly.

[adamstrange]

Understanding the concept of opportunity cost is easy, but understanding how and when minimizing it can increase your sales is difficult. A kid won't grasp this, nor will the majority of dealers. I'm not sure most of the people talking about the concept here grasp it either; I know I don't.

no doubt application of the concept can be more difficult to implement... but, those that are successful generally have a formula that works for them...look at Metro...they rarely move on a price of a comic...they rarely discount a comic, even if it has been in inventory for years...yet, I would argue that given their longevity and level of success, their strategy works for them... are there lost opportunity costs, i am sure, but obviously they have offset that by having the client base to support their strategy...

 

to each their own (thumbs u

 

Metro's business model is to support the time-sensitive customer who has little time but lots of money. If they do not maintain a broad inventory they will not be able to support that type of customer demand. There is a limit in any market as to how many dealers can be successful with this "premium supplier" strategy (usually not more than a couple and often only one).

[MrBedrock]

My opportunity costs go up with each post.

The time spent is a lost opportunity to do something productive.

[Silver]

I think Brian Peets/A-1 is an excellent example of a comic business that is ran as a business and has been successful. Heck, even the name. A-1 was probably done for yellow page placement.

 

He bought a pedigree collection then sat on it while it grew in value tremendously. I heard he still has a copy of Action 1 with no back cover stashed away. He grades raw books well, has decent pricing and I have never seen anything close to an emotional attachment towards comics, yet he understands the market well. I am told he runs spectacular sales at his store in Sacremento regularly.

[jjonahjameson1]

My opportunity costs go up with each post.

The time spent is a lost opportunity to do something productive.

 

Ah, but you are doing something productive - you are building relationships online, keeping 'Bedrockcity' in the forefront of people's minds each time you post through reinforcement/name recognition of your stores and website.

 

Given the above, you should reconsider the impact to your posts here. If you really want to see the power of your CGC posts, why not offer an incentive such as an additional 10% off purchases for boardies if they mention this post, and then see how it translates to additional sales for you

[fantastic_four]

My opportunity costs go up with each post.

The time spent is a lost opportunity to do something productive.

 

Ah, but you are doing something productive - you are building relationships online

 

If by "building relationships" you mean "ticking off potential customers," then I agree entirely. (thumbs u

[tth2]

And it costs me nothing to carry the book around

What do you mean? What about things like opportunity cost, ROI, time value of money, etc.? The book might not require you to expend more money, but the money that you spent to acquire the book in the first place could be earning more money for you in a different, possibly much safer investment. If you`re not beating those other benchmarks, then that book is indeed losing money for you even if you`re not losing money in an unsophisticated layman`s sense.

 

Very true. On top of that, dealers often have cash flow problems which generally stem from a low turnover rate. If I make a bad buy, I acknowledge it, take a loss, learn from it, and put the money towards a purchase that makes sense....a purchase I may not have been able to afford if I had just hung on to bad inventory like grim death.

Yeah, but by virtue of your business degree, you're a bit more sophisticated than the average person and a lot more sophisticated than the average comic dealer.

Vanderbilt, really

I tried to convince him to go to a better school, but what can ya do?

[tth2]

However, I think there are some truly notable exceptions... for instance, while Josh is not ahead on the technology curve, can anyone say that Josh Nathanson isn't a smart businessman based on what he's done in the auction market? Same for the group that runs Heritage, a huge corporation worth hundreds of millions of dollars.

Totally agree with you that they stand out as good businessmen.

 

In fact, I would go a step further and say that these 2 in particular have created GREAT business models by being asset light and making most of their money from being the middleman. No need to have a large amount of capital tied up in inventory like traditional dealers, which is where this conversation started in the first place. Instead, they make their money from getting a cut of every deal.

[adamstrange]

However, I think there are some truly notable exceptions... for instance, while Josh is not ahead on the technology curve, can anyone say that Josh Nathanson isn't a smart businessman based on what he's done in the auction market? Same for the group that runs Heritage, a huge corporation worth hundreds of millions of dollars.

Totally agree with you that they stand out as good businessmen.

 

In fact, I would go a step further and say that these 2 in particular have created GREAT business models by being asset light and making most of their money from being the middleman. No need to have a large amount of capital tied up in inventory like traditional dealers, which is where this conversation started in the first place. Instead, they make their money from getting a cut of every deal.

I'm not sure how much that is the case. Heritage is a huge operation in coins that is separate from the auction business and I don't know which generates the most profit. Josh has always done more than just handle consignments/auctions.

[G.A.tor]

look at Metro...they rarely move on a price of a comic...they rarely discount a comic, even if it has been in inventory for years...yet, I would argue that given their longevity and level of success, their strategy works for them...are there lost opportunity costs, i am sure, but obviously they have offset that by having the client base to support their strategy...

 

If your pocketbook is far larger than the material that's available to buy, no opportunity is lost. My guess is that Metro has the money, partnership potential, and loan potential to obtain money when they need it to not let a good buying opportunity pass them by even if their inventory moves relatively slowly.

that would very likely be a valid assessment (Thumbs u

[G.A.tor]

My opportunity costs go up with each post.

The time spent is a lost opportunity to do something productive.

but you looked so dreamy on tv tonight... (thumbs u

[G.A.tor]

And it costs me nothing to carry the book around

What do you mean? What about things like opportunity cost, ROI, time value of money, etc.? The book might not require you to expend more money, but the money that you spent to acquire the book in the first place could be earning more money for you in a different, possibly much safer investment. If you`re not beating those other benchmarks, then that book is indeed losing money for you even if you`re not losing money in an unsophisticated layman`s sense.

 

Very true. On top of that, dealers often have cash flow problems which generally stem from a low turnover rate. If I make a bad buy, I acknowledge it, take a loss, learn from it, and put the money towards a purchase that makes sense....a purchase I may not have been able to afford if I had just hung on to bad inventory like grim death.

Yeah, but by virtue of your business degree, you're a bit more sophisticated than the average person and a lot more sophisticated than the average comic dealer.

Vanderbilt, really

I tried to convince him to go to a better school, but what can ya do?

we can lead them to water, but we cannot make them stand up when they p (thumbs u

[tth2]

However, I think there are some truly notable exceptions... for instance, while Josh is not ahead on the technology curve, can anyone say that Josh Nathanson isn't a smart businessman based on what he's done in the auction market? Same for the group that runs Heritage, a huge corporation worth hundreds of millions of dollars.

Totally agree with you that they stand out as good businessmen.

 

In fact, I would go a step further and say that these 2 in particular have created GREAT business models by being asset light and making most of their money from being the middleman. No need to have a large amount of capital tied up in inventory like traditional dealers, which is where this conversation started in the first place. Instead, they make their money from getting a cut of every deal.

I'm not sure how much that is the case. Heritage is a huge operation in coins that is separate from the auction business and I don't know which generates the most profit. Josh has always done more than just handle consignments/auctions.

I don't know much about Heritage's business outside of comics/OA and art, but I believe in those lines they carry relatively little of their own inventory.

 

Does Josh carry much of his own inventory? I thought most of his business was third-party listings on his main site and auctions, and brokering deals.

[ComicConnoisseur]

However, I think there are some truly notable exceptions... for instance, while Josh is not ahead on the technology curve, can anyone say that Josh Nathanson isn't a smart businessman based on what he's done in the auction market? Same for the group that runs Heritage, a huge corporation worth hundreds of millions of dollars.

Totally agree with you that they stand out as good businessmen.

 

In fact, I would go a step further and say that these 2 in particular have created GREAT business models by being asset light and making most of their money from being the middleman. No need to have a large amount of capital tied up in inventory like traditional dealers, which is where this conversation started in the first place. Instead, they make their money from getting a cut of every deal.

Similar to those who got rich during the California gold rush era was not the gold miners but the middleman who sold the miners and other gold rush followers the tools and supplies they needed.

Also I bet the makers/dealers of the plastic comic bags and comic supplies over the years made a lot of money selling the comic supplies to the average comic colllector.

[adamstrange]

I don't know much about Heritage's business outside of comics/OA and art, but I believe in those lines they carry relatively little of their own inventory.

They do decent sized buys in comics like the file copies, Harvey art and others. Their coin operation is big -- you may recall the lawsuit with Parino as they were/are a big supplier even to large dealers like Jay.