Comic Dealer Business Plan

[shadroch]

I was thinking about starting to deal books. My plan was to take my new credit card at 2500 and blow it on a key silver age book. Sit on it for six months or so and flip it for a hundred or so. Then I'd pay off the card an use that 100 or so to start and work my way up.

 

It would be more of a hobby. I don't think you could submit a business plan though. That'd be tough.

 

Maybe join GPA and show them the loss and gains of certain comics you plan to buy... I guess that would work.

 

This is more along the line of what I would want to do. I would more buy keys and cheap collections that come across my path which has been happening a lot lately. I would then take them to shows/sell online.

 

Thanks for everyone chiming in so far! Keep it coming!

 

Selling them yourself would probably net more money but would also take a lot of time. Probably better to just flip the buy to another dealer and keep your money liquid. I.E. liquidate aggressively.

 

The real question is how you're coming across these deals and whether it is a fluke versus something you can count on. (I.E. you are coming across these deals because of your own activities.)

 

 

I am definitely not saying every deal is an amazing deal but I have been coming across a lot of good collections lately...but have had to pass on some of the better ones due to lack of capital. BTW- I have a place in Green Acres, though I'm hardly ever there.

 

 

Give me an idea what you consider a good collection for a a great price is.

Maybe you can just act as an agent for myself or others and pick up a quick 10-20% finders fee. Do a couple of those and you'll have the capital you need.

[mschmidt]

Order your upcoming releases through DCBS (35-40% off) and then sell them on eBay.

Even if you only sell at retail you will make 22-37% per book.

Purchase wisely and that percentage will multiply.

 

*Choose the best 5 books a month to be CGC'd.

 

I'm hoping you're joking

[Pike's Comics]

I am definitely not saying every deal is an amazing deal but I have been coming across a lot of good collections lately...but have had to pass on some of the better ones due to lack of capital.

 

Give me an idea what you consider a good collection for a a great price is.

Maybe you can just act as an agent for myself or others and pick up a quick 10-20% finders fee. Do a couple of those and you'll have the capital you need

 

 

 

Last two collections i passed on was 150 boxes from a store that closed in 2004 and a huge DC gold/silver age collection. Could have had both at a steal of a price but it was still out of my price range.

[Designer Toast]

Buy high.

 

Take a loss.

 

Aces.

[Trev]

I don't think the SBA would really be much help there -- especially if you don't own a home.

 

If you have great credit you could do a signature loan at your bank or credit union for some capital, but you would need to flip those books quickly to repay it.

 

Seems like a lot of risk -- especially if you don't have any assets you could use to back it.

 

I'm not sure I would borrow money to get into comics dealing.

 

Unless you find another Mile High, I guess.

[crassus]

As someone who has recently dabbled in this business there are a few things worth remembering before going down this road:

 

It is super easy to buy, much much harder to sell

 

You need to know book prices like a stock broker knows stocks

 

Most of everything out there is dead inventory, and that is why they will be happy to sell it to you cheap by the truckload

 

Selling books consistently for actual profit is hard, hard time-consuming work

 

[troydivision1]

Order your upcoming releases through DCBS (35-40% off) and then sell them on eBay.

Even if you only sell at retail you will make 22-37% per book.

Purchase wisely and that percentage will multiply.

*Choose the best 5 books a month to be CGC'd.

I'm hoping you're joking

No joke.

Giving the suggestion for building revenue, not a full time job.

I'm also not suggesting to invest all the money into Birds of Prey #14.

You have to choose wisely.

[Not*Sure*]

I would definitely not recommend a newbie to jump or try to jump on the diamond bandwagon. First off it is carp and a pain in the behind. I had an entirely back issues store. And worked for an entirely back issues store.

 

Go around your local community..see what other types of comic book shops are out there.

Do they sell back issues/new stuff/gaming/ etc. Are they having a going out of business sale?

 

Because if you think you will be making a profit off new issues alone..it just ain't gonna happen. That is a rare rare thing to be able to do.

 

I had a working relationship with another comic shop down the street from me. I did have buyers who wanted new comics. I worked a deal with comic seller B to sell me his new comics at a discount when hot off the press, BIG discount as they got older.

 

So if customer A was waiting on new comics day for issues I had his list of books and filled the order and had it on hand..where if customer C only came in once every two weeks or so..I'd pick up "new releases" the next week or so.

 

This of course only works if you have a list of customers.

 

Also think of what else your store will sell. Because no way you can just have comics and make a big profit anytime soon.

 

I only miss the store for the great amount of people coming in and selling stuff very very cheap..I had "new" "hot" comics, 60%-80% of guide comics,$5 comics,$1 comics,.50 and quarter books.

 

But all the time I would have long boxes sitting to be evaluated. People would drop them off I would go through them and then call them back and then we would deal until I bought them or had them haul them home..

 

 

 

 

 

[gaz973]

If this meant to be your main occupation in future, it's not likely to earn you enough to support you.

 

If it's not meant to be your main occupation, do you realise how much of your spare time it will require? As has been mentioned, selling off large lots of comics is hard, time consuming work.

[bane]

If this meant to be your main occupation in future, it's not likely to earn you enough to support you.

 

If it's not meant to be your main occupation, do you realise how much of your spare time it will require? As has been mentioned, selling off large lots of comics is hard, time consuming work.

 

+1

 

Even selling my personal collection of 5,000 comics I've collected since I was 9 years old on eBay has taken 2 years so far.

[TupennyConan]

Buy low on the Boards.

 

Press, slab.

 

Flip on the Boards for massive comic book profits.

 

Wait for threads in CG.

[ComicConnoisseur]

Looking for some aid in writing a business plan for starting a business as a comic dealer (not opening an LCS). I would be selling mainly online and at comic book shows. Any information or aid in this regard would be much appreciated.

This just random tips in no order.

Develop the best customer service you can.

Find diversified niches. Look for comic books that have devouted cult followings.

Comic books that are considered cutting edge,but yet mainstream hasn`t discovered yet.

A perfect example of this was the Walking Dead three years ago.

You could have loaded up on these and be a big hit at the comic shows,so now look to the new cutting edge comic books that you think will keep the reading customers coming back month after month.

Examples of this are mostly all the new Image and Vertigo comic books, but this is like a lottery some will hit but most will burn.

Buy cheap trade paperbacks in lots,as you will be surprised at how many people are buying trades over comic books now.

Look at what upcoming movies are being made about comics,as that usually always brings a spike in back issues, as Rocket Racoon lovers have found out.

For classic back issues look for the key Marvel silver,bronze and copper ages for steady growth

and most of all have fun!

[Jeffro.]

Looking for some aid in writing a business plan for starting a business as a comic dealer (not opening an LCS). I would be selling mainly online and at comic book shows. Any information or aid in this regard would be much appreciated.

 

I strongly suggest not taking the Jimmy linguin-whatever approach to comic selling.

[the blob]

Wouldn't showing the SBA a year's worth of sales (and explanation of profits) on ebay or whatever show that you have a functioning business model and if, for example, you bring in $300 a month now with 400 store items and 100 auctions a month and are limited because you can only acquire ___ inventory, with 4000 store items and 1000 auctions a month you could expect to generate $3000 a month, etc.

[ComicConnoisseur]

Wouldn't showing the SBA a year's worth of sales (and explanation of profits) on ebay or whatever show that you have a functioning business model and if, for example, you bring in $300 a month now with 400 store items and 100 auctions a month and are limited because you can only acquire ___ inventory, with 4000 store items and 1000 auctions a month you could expect to generate $3000 a month, etc.

Another alternative is

Kabbage.

You show them your Amazon.com and EBay sales, and then they figure out what type of loan you qualify for.

Kabbage

[Silver Surfer]

Buy low on the Boards.

 

Press, slab. Resell immediately for profit.

 

Flip on the Boards for massive comic book profits. Drop ship across international boarders to fellow boardie.

 

Wait for threads in CG and then laugh your arse off at the butthurt that follows.

 

Going forward you are know as that "drop shipper guy"

[comicwiz]

The main problem with borrowing to finance a comic business is the need to service the interest on the money borrowed in addition to overhead costs. That could quickly eat into your margins and up front investments/assets.

 

As much as I prefer it, having a back-issue only type of business lacks the returning customer visits that new comic subs brings.

 

Becoming a comic pawn sounds like a good fringe benefit to running a brick and mortar, but if you're finding that there is more coming in than what's going out, then it's probably a sign it's going to be a tough market to sell in.

 

Back to point one, I found that I've had the most success building the capital over time, and using the lull periods to come up with creative ways to circumvent the overhead associated to a retailing model.

 

I've come up with a few solid models that have been working and have allowed me to sell books with greater regularity, but it's also taken a lot of going back to the drawing board to rehash, refine and reformulate.

 

No matter what anyone tells you, it's definitely hard work, but if it's something you enjoy doing, have a go at it. Slow but steady has seemed to work well for me in this constantly adjusting economic climate.

[the blob]

The main problem with borrowing to finance a comic business is the need to service the interest on the money borrowed in addition to overhead costs. That could quickly eat into your margins and up front investments/assets.

 

 

The rate the OP may be eligible for may be fairly reasonable compared to credit card debt and what not:

 

Patriot Express

The U.S. Small Business Administration has announced the SBA’s Patriot Express Pilot Loan Initiative for veterans and members of the military community wanting to establish or expand small businesses. The SBA and its resource partners are focusing additional efforts on counseling and training to augment this loan initiative, making it more accessible and easy to use.

Eligible military community members include:

Veterans

 

Service-disabled veterans

 

Active-duty service members eligible for the military’s Transition Assistance Program

 

Reservists and National Guard members

 

Current spouses of any of the above

 

The widowed spouse of a service member or veteran who died during service or of a service-connected disability

 

Patriot Express loan proceeds can be used for most business purposes, including:

Start up costs

 

Equipment purchases

 

Business-occupied real-estate purchases

 

Inventory

 

Infusing working capital

 

Managing your business

 

Expansion

 

Preparing your business for the possibility of your deployment

 

Setting up to sell goods and services to the government

 

Recovery from declared disasters.

 

Patriot Express loans feature the SBA’s lowest interest rates for business loans, generally 2.25 percent to 4.75 percent over prime depending upon the size and maturity of the loan. Your local SBA district office will have a listing of Patriot Express lenders in your area.

 

[Pike's Comics]

The main problem with borrowing to finance a comic business is the need to service the interest on the money borrowed in addition to overhead costs. That could quickly eat into your margins and up front investments/assets.

 

 

The rate the OP may be eligible for may be fairly reasonable compared to credit card debt and what not:

 

Patriot Express

The U.S. Small Business Administration has announced the SBAs Patriot Express Pilot Loan Initiative for veterans and members of the military community wanting to establish or expand small businesses. The SBA and its resource partners are focusing additional efforts on counseling and training to augment this loan initiative, making it more accessible and easy to use.

Eligible military community members include:

Veterans

 

Service-disabled veterans

 

Active-duty service members eligible for the militarys Transition Assistance Program

 

Reservists and National Guard members

 

Current spouses of any of the above

 

The widowed spouse of a service member or veteran who died during service or of a service-connected disability

 

Patriot Express loan proceeds can be used for most business purposes, including:

Start up costs

 

Equipment purchases

 

Business-occupied real-estate purchases

 

Inventory

 

Infusing working capital

 

Managing your business

 

Expansion

 

Preparing your business for the possibility of your deployment

 

Setting up to sell goods and services to the government

 

Recovery from declared disasters.

 

Patriot Express loans feature the SBAs lowest interest rates for business loans, generally 2.25 percent to 4.75 percent over prime depending upon the size and maturity of the loan. Your local SBA district office will have a listing of Patriot Express lenders in your area.

 

:whee:

[Pike's Comics]

2.25%-4.0% loan 85% rate (15%down) so for a 20k loan you would need 3k down. Not bad at all.