Semicentennial Posted October 21, 2015 Share Posted October 21, 2015 You're setting accounting principles back centuries. I think part of it---- was with what is considered "inventory"..... He was using the paid amount - you were asking for overall value estimate. Both whorthwhile numbers to know. Gabriel - that first set of numbers you gave sales of ~ 5K, made about 1300 --- this is not a bad return. BUT make sure this is a real number minus all expenses. For any of the calculations - you need to keep track of everything. Get into the habit of doing this - will only help in the long run. For any of the info below - realize that this is based on US tax law and an individual running this as a side or lower end business (for US peeps - filing schedule C). This is a very simple way of looking at a business. A larger business with many other expenses - usually have to operate under more sophisticated rules and guidelines, but hopefully this will help you. It is based on "cash based accounting". This simplifies a lot of the record-keeping. Simply put - whatever money comes in and out is accounted for at that time. Also - it REALLY helps to have ONE credit card and ONE paypal - that is exclusively used for the business. I can download my ccard transactions at the end of the year - and pretty quickly sort items into the right categories. so Gross sales - cost of goods sold (COGS) = gross income/profit. Gross income - expenses = net income. Net income = the one we all want. With the exception of taxes - this is the profit in your pocket! ___________________________________________________ Gross sales = what you were paid. Easiest to throw shipping in this as one sum (as it can be accounted for separately). Ebay makes this pretty easy - you have a transaction for $500 including shipping - they send this over as one payment - then bill fees and shipping separately. This helps a lot. ___________________________________ COGS: This is everything associated with procuring and prepping the material for selling. This example is based on year end taxes - but can really be applied to any time frame - Any inventory cost listed here- is what you paid for it. Inventory value (unrealized gain or loss) - is a separate discussion. to calculate COGS - take------ last years inventory (what you paid for comics) add any new purchases made this year add supplies (bags and boards) add grading/pressing fees from this - subtract end of year inventory (last year inventory + buys MINUS the cost paid for anything sold during the year). ________________________________________________________ so - gross income = gross sales - COGS. Looks great - but now we have EXPENSES....... Expenses: Outbound shipping shipping materials ebay fees paypal fees office suppliers advertising (business cards) legal fees storage (shortboxes) etc..... NET profit = gross profit - expenses Thanks I'll check that out and yes the profit that I gave was after all expenses and I always count them in so that I don't think that I make more then I really do. Whew! I'm glad I just collect comics, this sh-t is hard. Not sure if that's a joke or not but it'll take me a bit to learn this as well. No, mo joke I don't sell comics for a reason. Ah I see I think that hard parts will be learning the accounting and taxes part of comics but if this turns out to be a good side venture I'll be happy with that too. I don't understand what you're saying sometimes but if this is what I think you're saying then that is so awesome. Not only can you get key SA books at 50% off FMV, but once you learn the accounting and taxes part, you'll be doing that as a side venture? Hot damn...Where do I sign up? Link to comment Share on other sites More sharing options...
W16227 Posted October 21, 2015 Share Posted October 21, 2015 Yes that's correct the inventory is comics I have yet to sell but know for sure that I can sell them at the same price I bought them for. I clipped some stuff - This may be one of those BIG behaviors to readjust - you NEVER know for sure. I posted earlier about one of my tactics when I am buying for myself- and this (breaking even or near that) - is how I gauge a bad deal/good deal --- but for buy/sell stock - you have to resist this. You never know what any book will hopefully sell for - until it sells. If you set up a solid strategy (or even as a gauge of results) --- you look at the average over time. For ones that I can hold in the collect me inventory- I do not mind being at that price point where I "think" i can move it for close to what I paid - as I do not really want to sell these. It looked like you did ok with the sales so far (if the numbers are true NET profit)-- if you can move everything else in a couple months - and break even - you did real well for what you have. Continue to simplify SMARTLY and you may be able to work up a side income. Look at Chips online auctions - that is what a person has to do to make a living at this. He is a beast - I do not think you are ready yet for this kind of pressure and throughput. PACE YOURSELF!!!!! Link to comment Share on other sites More sharing options...
W16227 Posted October 21, 2015 Share Posted October 21, 2015 No, mo joke I don't sell comics for a reason. Ah I see I think that hard parts will be learning the accounting and taxes part of comics but if this turns out to be a good side venture I'll be happy with that too. ya - being "above board" (for the US ) - is tough I am VERY small potatoes compared to others - what I wrote (minus a bunch) - is how you are supposed to account for stuff - as a SMALL guy. This does not include the fun of state taxes. Illinois has an easy all online site to take care of this - but you still have to be on top of stuff....... learning all of the steps, though, - helps a TON with weather or not you are actually making a profit (if any) - and making the whole thing worthwhile. It is also FUN - and a good way to make some extra $$ ---- to pay for the ones you want to keep...... Link to comment Share on other sites More sharing options...
uchiha101 Posted October 21, 2015 Author Share Posted October 21, 2015 You're setting accounting principles back centuries. I think part of it---- was with what is considered "inventory"..... He was using the paid amount - you were asking for overall value estimate. Both whorthwhile numbers to know. Gabriel - that first set of numbers you gave sales of ~ 5K, made about 1300 --- this is not a bad return. BUT make sure this is a real number minus all expenses. For any of the calculations - you need to keep track of everything. Get into the habit of doing this - will only help in the long run. For any of the info below - realize that this is based on US tax law and an individual running this as a side or lower end business (for US peeps - filing schedule C). This is a very simple way of looking at a business. A larger business with many other expenses - usually have to operate under more sophisticated rules and guidelines, but hopefully this will help you. It is based on "cash based accounting". This simplifies a lot of the record-keeping. Simply put - whatever money comes in and out is accounted for at that time. Also - it REALLY helps to have ONE credit card and ONE paypal - that is exclusively used for the business. I can download my ccard transactions at the end of the year - and pretty quickly sort items into the right categories. so Gross sales - cost of goods sold (COGS) = gross income/profit. Gross income - expenses = net income. Net income = the one we all want. With the exception of taxes - this is the profit in your pocket! ___________________________________________________ Gross sales = what you were paid. Easiest to throw shipping in this as one sum (as it can be accounted for separately). Ebay makes this pretty easy - you have a transaction for $500 including shipping - they send this over as one payment - then bill fees and shipping separately. This helps a lot. ___________________________________ COGS: This is everything associated with procuring and prepping the material for selling. This example is based on year end taxes - but can really be applied to any time frame - Any inventory cost listed here- is what you paid for it. Inventory value (unrealized gain or loss) - is a separate discussion. to calculate COGS - take------ last years inventory (what you paid for comics) add any new purchases made this year add supplies (bags and boards) add grading/pressing fees from this - subtract end of year inventory (last year inventory + buys MINUS the cost paid for anything sold during the year). ________________________________________________________ so - gross income = gross sales - COGS. Looks great - but now we have EXPENSES....... Expenses: Outbound shipping shipping materials ebay fees paypal fees office suppliers advertising (business cards) legal fees storage (shortboxes) etc..... NET profit = gross profit - expenses Thanks I'll check that out and yes the profit that I gave was after all expenses and I always count them in so that I don't think that I make more then I really do. Whew! I'm glad I just collect comics, this sh-t is hard. Not sure if that's a joke or not but it'll take me a bit to learn this as well. No, mo joke I don't sell comics for a reason. Ah I see I think that hard parts will be learning the accounting and taxes part of comics but if this turns out to be a good side venture I'll be happy with that too. I don't understand what you're saying sometimes but if this is what I think you're saying then that is so awesome. Not only can you get key SA books at 50% off FMV, but once you learn the accounting and taxes part, you'll be doing that as a side venture? Hot damn...Where do I sign up? Haha what's profitable to me may not be to another person but yes things will go better for me once I learn them and since one of my biggest mistakes was overpaying for comics and not keeping track out what I buy it'll really help out my bottom line. As for a side venture like I mentioned before if I can make a extra 100-200 a month I'd be happy with it as a start. Link to comment Share on other sites More sharing options...
uchiha101 Posted October 21, 2015 Author Share Posted October 21, 2015 Yes that's correct the inventory is comics I have yet to sell but know for sure that I can sell them at the same price I bought them for. I clipped some stuff - This may be one of those BIG behaviors to readjust - you NEVER know for sure. I posted earlier about one of my tactics when I am buying for myself- and this (breaking even or near that) - is how I gauge a bad deal/good deal --- but for buy/sell stock - you have to resist this. You never know what any book will hopefully sell for - until it sells. If you set up a solid strategy (or even as a gauge of results) --- you look at the average over time. For ones that I can hold in the collect me inventory- I do not mind being at that price point where I "think" i can move it for close to what I paid - as I do not really want to sell these. It looked like you did ok with the sales so far (if the numbers are true NET profit)-- if you can move everything else in a couple months - and break even - you did real well for what you have. Continue to simplify SMARTLY and you may be able to work up a side income. Look at Chips online auctions - that is what a person has to do to make a living at this. He is a beast - I do not think you are ready yet for this kind of pressure and throughput. PACE YOURSELF!!!!! I'm glad the you mentioned the part of if the deal is a bad or good one because when I first started this I would just overpay for comics and hold them for a long time I'd make a killing off them which I know now is completely wrong. You're also right about me not knowing what will happen for the market with the comics I've bought which is something I need to consider in the future as well. The amount of profit I made are accurate and this is all after expenses and definitely my lessons to take away from this will be pay less for comics, buy comics I can sell quicker and not hold them for as long as I did and also a big factor that cut into how much profit I made was being scammed by people. I never heard of Chip's online auctions but I'll check them out. Link to comment Share on other sites More sharing options...
uchiha101 Posted October 21, 2015 Author Share Posted October 21, 2015 No, mo joke I don't sell comics for a reason. Ah I see I think that hard parts will be learning the accounting and taxes part of comics but if this turns out to be a good side venture I'll be happy with that too. ya - being "above board" (for the US ) - is tough I am VERY small potatoes compared to others - what I wrote (minus a bunch) - is how you are supposed to account for stuff - as a SMALL guy. This does not include the fun of state taxes. Illinois has an easy all online site to take care of this - but you still have to be on top of stuff....... learning all of the steps, though, - helps a TON with weather or not you are actually making a profit (if any) - and making the whole thing worthwhile. It is also FUN - and a good way to make some extra $$ ---- to pay for the ones you want to keep...... I'm beginning to understand this and I'm also learning about myself as this goes on and I found out why I didn't enjoy it as much as I thought I did. It was because I'd work so hard and get angry if I saw all my effort was basically worthless and as I learn more and do things smartly it will all help out my bottom line and I hope down the road I can have a full collection of Archie and ASM comics from 1-700 including the AF15. Link to comment Share on other sites More sharing options...
uchiha101 Posted October 21, 2015 Author Share Posted October 21, 2015 Moving update: So it turns out I'm moving again starting Nov 1st Link to comment Share on other sites More sharing options...
KPR Comics Posted October 21, 2015 Share Posted October 21, 2015 Witsec? Link to comment Share on other sites More sharing options...
W16227 Posted October 21, 2015 Share Posted October 21, 2015 Witsec? Link to comment Share on other sites More sharing options...
uchiha101 Posted October 21, 2015 Author Share Posted October 21, 2015 Witsec? Not sure what that means Link to comment Share on other sites More sharing options...
jaybuck43 Posted October 21, 2015 Share Posted October 21, 2015 Witness Protection Program. Link to comment Share on other sites More sharing options...
uchiha101 Posted October 21, 2015 Author Share Posted October 21, 2015 Witness Protection Program. Haha I didn't know it had a acronym but now I do. Link to comment Share on other sites More sharing options...
PBK78 Posted October 21, 2015 Share Posted October 21, 2015 I think this has been mentioned before but I'll repeat. And I'm saying this from a positive place. I'd stop what I'm doing, take a long look in the mirror and honestly ask "can I be good at this?" or "am I doing everything to be successful?". I've been in sales for a long time. Not comic sales. Point is when I started it was rough, or at least I thought it was rough. When I asked myself a few honest questions my perception changed, my work ethic changed and the trajectory I was on changed. Having read 37 pages of this journal I'm not sure this is a good path for you. At least not right now. P.S. I'm actually planning to sell my books to decrease my collection but I have no plans on selling anything worth more than $20. This way if someone takes advantage of me I'll be able to smile and say "Go with God and enjoy!". Either way, good luck. Pete Link to comment Share on other sites More sharing options...
revat Posted October 21, 2015 Share Posted October 21, 2015 Agree with many posters. A lot of bosrdies here with much lower aspirations and much lower investment have made A LOT more money selling comics over the past two years, both in ROI and absolute dollars. Of course there are many contributing factors, but those factors matter, as they are the difference. The number of buyer dollars out there may seem infinite, but they are not, you are competing with all of those people to buy low and sell high, and competing with multiple disadvantages. you don't have to cash out completely if you don't need to and think your values will rise, but all of your efforts should be put into finding a steady sustainable income stream. Whether it's sending out 50 resumes a day, taking classes, disability therapy, trade school, working out, apprenticeship, volunteer work, anything and everything. Ask yourself "why would someone hire me or buy from me? What makes me qualified?" Make your answer a good one Link to comment Share on other sites More sharing options...
miraclemet Posted October 21, 2015 Share Posted October 21, 2015 Gabe, what area of comics are you focusing your business on? Tough question since I focus on what I believe I can flip but my biggest focus with the my sales has been the silver age comics. Ok let me clarify... what area of the hobby do you know enough about to use to make a profit? The internet made information quickly and readily available, EVERYONE can see what books are selling for, sales histories, census numbers and so on to determine if a book is a good "buy low, sell high" candidate. One trick is to be faster than everyone else. But that means you have to know your numbers, like do you have a good sense of the market value for all of the silver age keys to know when there's meat on the bone and when there's not? eBay BINs that are good deals get snatched up fast, just like they do here. If you know your stuff you can take advantage of that, but you have to be the fastest. And yes, I think a healthy percentage of people here on the boards focus (in part) on what they think they can flip, so you have a LOT of competition, so here's another thought. Where is there space in the market? What area has room for profit without a lot of people existing in that space? Maybe its pulps? Maybe it's an emerging market? Silver Age books already have a TON of eyes on them and they are far more experienced than you both at knowing the books, the current market, and maybe even at predicting possible market movement, maybe look for a different area to profit from? (Yes if SA books come in the door you take them, if SA owner wants consignment you take it, but I'm talking about your proactive purchases for the purpose of flipping). The only way I see you making money via the "buy books for 50% of FMV" method is if you get enough coin together to buy full collections and use the bulk purchase to negotiate enough of a discount on FMV to make it profitable. But then that gets into a different area of hustle which is you have to network, hunt and bird dog your region to FIND those collections (so you can make the offer). just some unsolicited advice... Link to comment Share on other sites More sharing options...
PBK78 Posted October 21, 2015 Share Posted October 21, 2015 I was reading the market reports from the past Overstreet. This isn't something you can seriously jump in and be successful at in a short period of time. Even with a giant stack you need to be well educated like the above poster mentioned. Too many folks eat, sleep and breathe this and have been doing so for decades. I've become risk adverse in my old age. Some of the stuff I've read in this journal compounded with the personal hurdles makes my cringe. Link to comment Share on other sites More sharing options...
Chip Cataldo Posted October 21, 2015 Share Posted October 21, 2015 Here's my short list, assuming you already have the experience in the hobby (which you seemingly do not) : 1. Customer Service. 2. Networking/Relationships. 3. Hard CONSISTENT Work. My main mantra is customer service, but right behind that is the realization that I have to do something a little extra every day that furthers my business. Having an off day and don't want to deal with it after the regular work is done? Tough. Do *something* extra that furthers the business. List 10 BiN auctions. Bag and board 500 comics. Cut cardboard for shipping. Organize some toys for a night's auctions. Run a sale in the eBay store. SOMETHING. After a while it'll become common practice and the benefits are huge in the long run. Link to comment Share on other sites More sharing options...
N/A Posted October 21, 2015 Share Posted October 21, 2015 Agree with many posters. A lot of bosrdies here with much lower aspirations and much lower investment have made A LOT more money selling comics over the past two years, both in ROI and absolute dollars. Of course there are many contributing factors, but those factors matter, as they are the difference. The number of buyer dollars out there may seem infinite, but they are not, you are competing with all of those people to buy low and sell high, and competing with multiple disadvantages. you don't have to cash out completely if you don't need to and think your values will rise, but all of your efforts should be put into finding a steady sustainable income stream. Whether it's sending out 50 resumes a day, taking classes, disability therapy, trade school, working out, apprenticeship, volunteer work, anything and everything. Ask yourself "why would someone hire me or buy from me? What makes me qualified?" Make your answer a good one Working for others, although more dependable, is not the best way to make money. Link to comment Share on other sites More sharing options...
N/A Posted October 21, 2015 Share Posted October 21, 2015 Here's my short list, assuming you already have the experience in the hobby (which you seemingly do not) : 1. Customer Service. 2. Networking/Relationships. 3. Hard CONSISTENT Work. My main mantra is customer service, but right behind that is the realization that I have to do something a little extra every day that furthers my business. Having an off day and don't want to deal with it after the regular work is done? Tough. Do *something* extra that furthers the business. List 10 BiN auctions. Bag and board 500 comics. Cut cardboard for shipping. Organize some toys for a night's auctions. Run a sale in the eBay store. SOMETHING. After a while it'll become common practice and the benefits are huge in the long run. #1 for me is to set your goals. How do you know what you're doing if you don't know where you're going? "Make as much as I can" is never the right answer. Link to comment Share on other sites More sharing options...
Chip Cataldo Posted October 21, 2015 Share Posted October 21, 2015 #1 for me is to set your goals. How do you know what you're doing if you don't know where you're going? "Make as much as I can" is never the right answer. Obviously, your goal wasn't to win the CGC Fantasy Football Championship. :baiting: :baiting: Link to comment Share on other sites More sharing options...
