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Business Plan question

Started by uchiha101,

16 posts in this topic

uchiha101

uchiha101

Posted
Posted

Hey guys I've recently got involved in free business training and there are a couple a questions that stump and I would appreciate any help I get and my teacher said I need to be more specific about comics and collectibles

 

The questions were

 

what industry are you in?

for this I put the retail industry, but I couldn't specify what exactly I'm in because it's not really a category and I was thinking of putting alternate investments for my industry specifics

 

 

and what is the total market value of your industry?

for this one I also had trouble because the closest industry I could find was books and that is a 19 billion dollar market but I know that's not right since I'm looking for collectibles and it's completely different

 

I would appreciate and helps or websites you give me :)

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W16227

W16227

Posted
Posted
Hey guys I've recently got involved in free business training and there are a couple a questions that stump and I would appreciate any help I get and my teacher said I need to be more specific about comics and collectibles

 

The questions were

 

what industry are you in?

for this I put the retail industry, but I couldn't specify what exactly I'm in because it's not really a category and I was thinking of putting alternate investments for my industry specifics

 

 

and what is the total market value of your industry?

for this one I also had trouble because the closest industry I could find was books and that is a 19 billion dollar market but I know that's not right since I'm looking for collectibles and it's completely different

 

I would appreciate and helps or websites you give me :)

 

 

might be more specific on what you mean by comics and collectables -

 

 

A brick and mortar store - generically can sell MANY items - and some is "new" stock , some reseller stock and the potential for tshirts toys and more. Some stores near me have loads of silver age stock - some have no back issues whatsoever.

 

Ebay stores - or those who only do "vintage" (used/older) comics - would be much harder to characterize as you are now look at numbers that can turn quickly - and items that might pass through several people (sold more than once) in a year. Add in the ones that most of us would consider unattainable (Action 1 in 9.0) that still sell? - and you have a very hard business to generate an overall marker value from.

 

 

Maybe they want you to define the business model more (what specifically will the business be doing) - then look more of what category you fit in. By that - be specific as to what the business will do - then the overall model will be easier to define.

 

 

 

 

http://www.diamondcomics.com

 

has a lot of info on trends and such (new books) - but no real numbers. They might be able to give you a ballpark figure on the overall yearly market for new "comic book " sales.

 

 

 

 

 

 

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uchiha101

uchiha101

Posted
  • Author
Posted
Hey guys I've recently got involved in free business training and there are a couple a questions that stump and I would appreciate any help I get and my teacher said I need to be more specific about comics and collectibles

 

The questions were

 

what industry are you in?

for this I put the retail industry, but I couldn't specify what exactly I'm in because it's not really a category and I was thinking of putting alternate investments for my industry specifics

 

 

and what is the total market value of your industry?

for this one I also had trouble because the closest industry I could find was books and that is a 19 billion dollar market but I know that's not right since I'm looking for collectibles and it's completely different

 

I would appreciate and helps or websites you give me :)

 

 

might be more specific on what you mean by comics and collectables -

 

 

A brick and mortar store - generically can sell MANY items - and some is "new" stock , some reseller stock and the potential for tshirts toys and more. Some stores near me have loads of silver age stock - some have no back issues whatsoever.

 

Ebay stores - or those who only do "vintage" (used/older) comics - would be much harder to characterize as you are now look at numbers that can turn quickly - and items that might pass through several people (sold more than once) in a year. Add in the ones that most of us would consider unattainable (Action 1 in 9.0) that still sell? - and you have a very hard business to generate an overall marker value from.

 

 

Maybe they want you to define the business model more (what specifically will the business be doing) - then look more of what category you fit in. By that - be specific as to what the business will do - then the overall model will be easier to define.

 

 

 

 

http://www.diamondcomics.com

 

has a lot of info on trends and such (new books) - but no real numbers. They might be able to give you a ballpark figure on the overall yearly market for new "comic book " sales.

 

 

 

 

 

 

Yes I was thinking of selling vintage comics and collectibles like gold and silver age comics, keys issues and key date coins. I'm having trouble finding the right data because I checked the us economic census and it says the category of "book retailers" and that's not specifically what I am

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chrisco37

chrisco37

Posted
Posted
ICV2 could be a good resource:

 

http://icv2.com/articles/markets/30062.html

 

Thanks for that but I'm looking for the comics and collectibles market instead of the retailer market where I'd be selling new comics since I've lost a lot of money on modern comics :(

 

If you've lost money on modern books, what are you changing that will make you more successful with older stuff?

 

 

 

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uchiha101

uchiha101

Posted
  • Author
Posted
ICV2 could be a good resource:

 

http://icv2.com/articles/markets/30062.html

 

Thanks for that but I'm looking for the comics and collectibles market instead of the retailer market where I'd be selling new comics since I've lost a lot of money on modern comics :(

 

If you've lost money on modern books, what are you changing that will make you more successful with older stuff?

 

 

 

because I've already made money with gold and silver age comics whereas with modern comics I've lost money :(

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thunsicker

thunsicker

Posted
Posted
ICV2 could be a good resource:

 

http://icv2.com/articles/markets/30062.html

 

Thanks for that but I'm looking for the comics and collectibles market instead of the retailer market where I'd be selling new comics since I've lost a lot of money on modern comics :(

 

If you've lost money on modern books, what are you changing that will make you more successful with older stuff?

 

 

 

because I've already made money with gold and silver age comics whereas with modern comics I've lost money :(

 

Be careful. Everyone was making money in real estate in the early 2000's as well.

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revat

revat

Posted
Posted

sounds like you're in the vintage collectables industry.

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uchiha101

uchiha101

Posted
  • Author
Posted
ICV2 could be a good resource:

 

http://icv2.com/articles/markets/30062.html

 

Thanks for that but I'm looking for the comics and collectibles market instead of the retailer market where I'd be selling new comics since I've lost a lot of money on modern comics :(

 

If you've lost money on modern books, what are you changing that will make you more successful with older stuff?

 

 

 

because I've already made money with gold and silver age comics whereas with modern comics I've lost money :(

 

Be careful. Everyone was making money in real estate in the early 2000's as well.

 

Thanks I'll be careful and that's partly the reason I need help because I don't want to make a overestimation of my business market potential and how much I expect to make in a year which also happens a lot on dragon's den :)

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W16227

W16227

Posted
Posted
ICV2 could be a good resource:

 

http://icv2.com/articles/markets/30062.html

 

Thanks for that but I'm looking for the comics and collectibles market instead of the retailer market where I'd be selling new comics since I've lost a lot of money on modern comics :(

 

If you've lost money on modern books, what are you changing that will make you more successful with older stuff?

 

 

 

because I've already made money with gold and silver age comics whereas with modern comics I've lost money :(

 

Be careful. Everyone was making money in real estate in the early 2000's as well.

 

Thanks I'll be careful and that's partly the reason I need help because I don't want to make a overestimation of my business market potential and how much I expect to make in a year which also happens a lot on dragon's den :)

 

 

Well - you then have somewhat of a problem with quantifying the business model. A new store selling new books and trades, along with other related items (magic cards or what not) - then you have lots of different published data and distributor reports to pull the numbers from - and you also have a much more stable cost base to work off of (what you will be paying for inventory).

 

A resale market - potential for sales from an individual source, while not unlimited, can be very high - all depends on how deep the initial investment is.

 

Metropolis Collectibles - purchased that Action 1 for 3.2 mil. If they flip quick for 3.5 -- low % deal but high cash. They may hold for a while and see how much additional $$$ comes to the market and get more.

 

Regardless - they still had to have that initial cash to even make that purchase. Works the same at many levels - the more you can invest - the more you can make.

 

Real world books - still a great market. If you want an initial estimate - take some time and do generic ebay searches and track for a week. Should also be able to do the same at Heritage.

 

Obviously this is only one source - but assume that they have 75%-80% (I am guessing at this number) of the market for online sales. This will give you a ballpark of what is out there.

 

BUT - this will probably not really get you there from a "what is the potential" for a new resale collectables business.

 

THINGS TO THINK ABOUT - as they affect the business and the business potential ----

 

What you are planning on selling?

How you are selling (brick and mortar store, ebay, here)?

How you are getting stock to sell?

What are your fixed costs (shipping, packaging, insurance, auction fees)?

What are your variable costs (restocking, travel, shows)

EDIT - important - what is the initial investment? - this will really help you define your market potential.

 

 

 

Online only? - easy to do and starting with a site like ebay-- you will have good numbers on overhead costs (ebay/pay pal fees, listing fees, etc). Note my remaining comments focus on online/ebay (but the basic elements would need to be thought out no matter what the model you use) -

 

Think about how you will need to present and ship the books. You would need a good scanner and computer - maybe even a camera for slab pics (or find a decent slab scanner used).

 

Chip posted in another thread that he lists around 1000 books a month. Doable - but starting out anyone will need to be more conservative.

 

Ramp up = is it better to sell 100 5$ books - or 5 $100 books?

 

Pros and cons to both. On a percentage basis - you will probably be able to spend less on a large scale purchase of the books you can individually resell for $5. But you also have a lot more effort to list, pack, and ship them.

 

The $100 books take less effort - but unless you find a stash somewhere that someone is giving away - or are well heeled enough to be able to purchase a high enough volume, the margins are much thinner.

 

In the end - the "vintage/antique" resale market - relies heavily on the skill of the person running the business. They HAVE to know what they are looking for and they need to be able to cost out any purchases accurately. Someone here posted a very good "rule of thumb" for online sales (ebay) - where if you pay $1000 for a collection (and lets assume that this is 500 or more books) - you will need to be able to sell it for $3000 in order to make a real profit. This covers bags, boards, packaging and the effort to grade, list and pack the items.

 

 

 

 

 

 

 

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revat

revat

Posted
Posted
ICV2 could be a good resource:

 

http://icv2.com/articles/markets/30062.html

 

Thanks for that but I'm looking for the comics and collectibles market instead of the retailer market where I'd be selling new comics since I've lost a lot of money on modern comics :(

 

If you've lost money on modern books, what are you changing that will make you more successful with older stuff?

 

 

 

because I've already made money with gold and silver age comics whereas with modern comics I've lost money :(

 

Be careful. Everyone was making money in real estate in the early 2000's as well.

 

Thanks I'll be careful and that's partly the reason I need help because I don't want to make a overestimation of my business market potential and how much I expect to make in a year which also happens a lot on dragon's den :)

 

 

Well - you then have somewhat of a problem with quantifying the business model. A new store selling new books and trades, along with other related items (magic cards or what not) - then you have lots of different published data and distributor reports to pull the numbers from - and you also have a much more stable cost base to work off of (what you will be paying for inventory).

 

A resale market - potential for sales from an individual source, while not unlimited, can be very high - all depends on how deep the initial investment is.

 

Metropolis Collectibles - purchased that Action 1 for 3.2 mil. If they flip quick for 3.5 -- low % deal but high cash. They may hold for a while and see how much additional $$$ comes to the market and get more.

 

Regardless - they still had to have that initial cash to even make that purchase. Works the same at many levels - the more you can invest - the more you can make.

 

Real world books - still a great market. If you want an initial estimate - take some time and do generic ebay searches and track for a week. Should also be able to do the same at Heritage.

 

Obviously this is only one source - but assume that they have 75%-80% (I am guessing at this number) of the market for online sales. This will give you a ballpark of what is out there.

 

BUT - this will probably not really get you there from a "what is the potential" for a new resale collectables business.

 

THINGS TO THINK ABOUT - as they affect the business and the business potential ----

 

What you are planning on selling?

How you are selling (brick and mortar store, ebay, here)?

How you are getting stock to sell?

What are your fixed costs (shipping, packaging, insurance, auction fees)?

What are your variable costs (restocking, travel, shows)

EDIT - important - what is the initial investment? - this will really help you define your market potential.

 

 

 

Online only? - easy to do and starting with a site like ebay-- you will have good numbers on overhead costs (ebay/pay pal fees, listing fees, etc). Note my remaining comments focus on online/ebay (but the basic elements would need to be thought out no matter what the model you use) -

 

Think about how you will need to present and ship the books. You would need a good scanner and computer - maybe even a camera for slab pics (or find a decent slab scanner used).

 

Chip posted in another thread that he lists around 1000 books a month. Doable - but starting out anyone will need to be more conservative.

 

Ramp up = is it better to sell 100 5$ books - or 5 $100 books?

 

Pros and cons to both. On a percentage basis - you will probably be able to spend less on a large scale purchase of the books you can individually resell for $5. But you also have a lot more effort to list, pack, and ship them.

 

The $100 books take less effort - but unless you find a stash somewhere that someone is giving away - or are well heeled enough to be able to purchase a high enough volume, the margins are much thinner.

 

In the end - the "vintage/antique" resale market - relies heavily on the skill of the person running the business. They HAVE to know what they are looking for and they need to be able to cost out any purchases accurately. Someone here posted a very good "rule of thumb" for online sales (ebay) - where if you pay $1000 for a collection (and lets assume that this is 500 or more books) - you will need to be able to sell it for $3000 in order to make a real profit. This covers bags, boards, packaging and the effort to grade, list and pack the items.

 

 

 

 

 

 

 

good advice, don't forget to count taxes and customs fees since OP is in Canada.

 

ITs a LOT to think about. Of course it can be done by starting small and building up, but IF you want to make anything remotely resembling a living anytime soon, you need some start up capital, some cushion to fall back on until you start turning profit, and most importantly ACCESS to the books you want to flip, and the customers you want to flip to.

 

This is a lot easier in the densely populated East Coast of America, where there are many metropolitan and densely populated suburban areas within driving distance, where you can post and answer craigslist ads from 3-6 states away, and DRIVE to numerous shows relatively easily. Additionally, the East Coast has many people who have lived near the same place for the past 50 years, which would mean they're more likely to have bought and kept comics.

 

In a place like Toronto (wonderful city) and surrounding areas, many if not most of the population moved there in the past 30 years, and a decent percentage of those people don't speak English as a first language, whether they're Chinese, Indian, or French-Canadian. This makes finding comics to sell much more difficult, although maybe it also lessens competition for finding those comics?

 

No dream is too big for those who truly want to pursue something, but to start from near-ZERO without savings or experience, well maybe start it as a side job, see if it can be profitable?

 

Get a job at an LCS? Save up your money and buy one?

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FineCollector

FineCollector

Posted
Posted
In a place like Toronto (wonderful city) and surrounding areas, many if not most of the population moved there in the past 30 years, and a decent percentage of those people don't speak English as a first language, whether they're Chinese, Indian, or French-Canadian. This makes finding comics to sell much more difficult, although maybe it also lessens competition for finding those comics?

 

My dad used to read Superman reprints in the early 60's back in Portugal. Kids like comics, regardless of their language. However, it helps immensely if they went to school here, in which case, the immigrant kids would like whatever the other kids were into.

 

Finding collections in Toronto is definitely possible, there are a lot of old neighborhoods where treasures may be hiding. However, there's a ton of competition from established local dealers like CBA, Pendragon, or Big B, smaller potatoes like Silver Snail or Paradise, and oodles of private buyers who would love a nice collection to pick at and flip. I'd hate to have to fight all those people to maintain a steady supply of back issues.

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uchiha101

uchiha101

Posted
  • Author
Posted
ICV2 could be a good resource:

 

http://icv2.com/articles/markets/30062.html

 

Thanks for that but I'm looking for the comics and collectibles market instead of the retailer market where I'd be selling new comics since I've lost a lot of money on modern comics :(

 

If you've lost money on modern books, what are you changing that will make you more successful with older stuff?

 

 

 

because I've already made money with gold and silver age comics whereas with modern comics I've lost money :(

 

Be careful. Everyone was making money in real estate in the early 2000's as well.

 

Thanks I'll be careful and that's partly the reason I need help because I don't want to make a overestimation of my business market potential and how much I expect to make in a year which also happens a lot on dragon's den :)

 

 

Well - you then have somewhat of a problem with quantifying the business model. A new store selling new books and trades, along with other related items (magic cards or what not) - then you have lots of different published data and distributor reports to pull the numbers from - and you also have a much more stable cost base to work off of (what you will be paying for inventory).

 

A resale market - potential for sales from an individual source, while not unlimited, can be very high - all depends on how deep the initial investment is.

 

Metropolis Collectibles - purchased that Action 1 for 3.2 mil. If they flip quick for 3.5 -- low % deal but high cash. They may hold for a while and see how much additional $$$ comes to the market and get more.

 

Regardless - they still had to have that initial cash to even make that purchase. Works the same at many levels - the more you can invest - the more you can make.

 

Real world books - still a great market. If you want an initial estimate - take some time and do generic ebay searches and track for a week. Should also be able to do the same at Heritage.

 

Obviously this is only one source - but assume that they have 75%-80% (I am guessing at this number) of the market for online sales. This will give you a ballpark of what is out there.

 

BUT - this will probably not really get you there from a "what is the potential" for a new resale collectables business.

 

THINGS TO THINK ABOUT - as they affect the business and the business potential ----

 

What you are planning on selling?

How you are selling (brick and mortar store, ebay, here)?

How you are getting stock to sell?

What are your fixed costs (shipping, packaging, insurance, auction fees)?

What are your variable costs (restocking, travel, shows)

EDIT - important - what is the initial investment? - this will really help you define your market potential.

 

 

 

Online only? - easy to do and starting with a site like ebay-- you will have good numbers on overhead costs (ebay/pay pal fees, listing fees, etc). Note my remaining comments focus on online/ebay (but the basic elements would need to be thought out no matter what the model you use) -

 

Think about how you will need to present and ship the books. You would need a good scanner and computer - maybe even a camera for slab pics (or find a decent slab scanner used).

 

Chip posted in another thread that he lists around 1000 books a month. Doable - but starting out anyone will need to be more conservative.

 

Ramp up = is it better to sell 100 5$ books - or 5 $100 books?

 

Pros and cons to both. On a percentage basis - you will probably be able to spend less on a large scale purchase of the books you can individually resell for $5. But you also have a lot more effort to list, pack, and ship them.

 

The $100 books take less effort - but unless you find a stash somewhere that someone is giving away - or are well heeled enough to be able to purchase a high enough volume, the margins are much thinner.

 

In the end - the "vintage/antique" resale market - relies heavily on the skill of the person running the business. They HAVE to know what they are looking for and they need to be able to cost out any purchases accurately. Someone here posted a very good "rule of thumb" for online sales (ebay) - where if you pay $1000 for a collection (and lets assume that this is 500 or more books) - you will need to be able to sell it for $3000 in order to make a real profit. This covers bags, boards, packaging and the effort to grade, list and pack the items.

 

 

 

 

 

 

 

good advice, don't forget to count taxes and customs fees since OP is in Canada.

 

ITs a LOT to think about. Of course it can be done by starting small and building up, but IF you want to make anything remotely resembling a living anytime soon, you need some start up capital, some cushion to fall back on until you start turning profit, and most importantly ACCESS to the books you want to flip, and the customers you want to flip to.

 

This is a lot easier in the densely populated East Coast of America, where there are many metropolitan and densely populated suburban areas within driving distance, where you can post and answer craigslist ads from 3-6 states away, and DRIVE to numerous shows relatively easily. Additionally, the East Coast has many people who have lived near the same place for the past 50 years, which would mean they're more likely to have bought and kept comics.

 

In a place like Toronto (wonderful city) and surrounding areas, many if not most of the population moved there in the past 30 years, and a decent percentage of those people don't speak English as a first language, whether they're Chinese, Indian, or French-Canadian. This makes finding comics to sell much more difficult, although maybe it also lessens competition for finding those comics?

 

No dream is too big for those who truly want to pursue something, but to start from near-ZERO without savings or experience, well maybe start it as a side job, see if it can be profitable?

 

Get a job at an LCS? Save up your money and buy one?

 

Thanks for the advice, I do have trouble with buying stuff and seeing how well I do because of not enough start up capital and buy one? do you mean buying a store for myself? I have to agree with you that in the area that I am it's hard to buy comics for a good price and find a decent collection at the same time :(

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