Is it still possible to become a part time dealer?

[tschock]

Here's a key piece in my opinion for those who are part time dealers and still collectors. You need to really be able to distinguish between what you are buying for your personal collection and what you are buying to resell, and you can't start to 'fall in love' with something you are buying to resell. If you are buying to resell it, then you need to make sure you resell it.

[Buythatcard]

I had the same thoughts 13 years ago. Should I be a part time dealer? I still had my childhood collection of cards along with hundreds of autographs that I obtained thru the years.
I was buying cards from eBay to enhance my collection until I decided to try to make some extra money just to be used for my collection.
I had a full time job and put aside 3-4 hours every night to sell some of my cards. I would take the profits and roll them into more expensive cards.
Thirteen years later, I am still doing the same thing. I no longer have my personal collection because I sold it all. I still work a full time job and still spend 3-4 hours a night selling cards. I have met some great people along the way and have had so much fun doing this.
I am 4 years away from retirement and will probably still be doing this part time.

[batkidiii]

Wow! I want to thank all of you for the great advice. I might hold off on going the route, of say, Robert Edwards. A little too expensive for me to start off with. I will do plenty of research before I jump in. I am thinking of maybe starting with $1000.00.

[BeanTown]

I would target minor league team sets which are given out at the minor league ball parks. Go after the big name players. If the player makes the HOF then you have hit paydirt! Plus, they are the players first pro card and since very limited print run, its also the players rarest card except all the specialty cards that are made.

[btcarfagno]

Byron,

My best advice is that knowledge is king. If you do your homework and know what you can get for something before you buy it, you will make money. Have fun and it doesn't feel like work. Enjoy being temporary custodian of whatever wonderful items you purchase.

Tom C

[buymycards]

Adam made a good point concerning taxes. Every time that you make a dollar in profit you will need to pay 12.4 cents for Social Security taxes, 2.9 cents for Medicare taxes, plus, depending on your tax bracket, at least 15 cents for the IRS and maybe another nickel for state income taxes. So, that dollar of profit is down to about 65 cents after you pay the government.

[MikeGarcia]

Originally Posted by buymycards

Adam made a good point concerning taxes. Every time that you make a dollar in profit you will need to pay 12.4 cents for Social Security taxes, 2.9 cents for Medicare taxes, plus, depending on your tax bracket, at least 15 cents for the IRS and maybe another nickel for state income taxes. So, that dollar of profit is down to about 65 cents after you pay the government.

...Rick , thank you , we appreciate your sharing your experiences and knowledge... but about this last post , might you know the dollar amount at which it is necessary for an amateur like most of us are , to do tax set-asides so as to comply with at least the federal tax regs ? At times , some years , I actually do come out a few dollars ahead of the game ; but I consider myself just a hobbyist buyer/seller and any profits are usually accidental and an unintended happy surprise.... do the federales share my la-la-land delusions ??

[GehrigFan]

As someone already mentioned, the hardest part is being both a collector AND dealer. It is very difficult to do both and keep them separate. The dealer side sees a nice breakup value in a lot, but when you get them in, the collector side thinks, "hmmm... these are nice, I think I'll keep them awhile!" Not to say you can't do both - it is just difficult.

I would strongly advise that you start "fresh" as a dealer, though - don't mix in the cards from your personal collection if possible. It is very difficult to reconcile taxes and records when you "deal" a card that was in your personal collection for years and didn't purchase it as a dealer. Keep diligent receipts of everything you spend - not just on cards, but travel to set up at shows, selling fees (eBay, PayPal, Auction Houses, etc.), etc.

Good luck!
Mark

[btcarfagno]

Anyone in a high tax bracket needs to know that the maximum tax on their profits is 28%. Not their regular tax rate. Plus self employment tax whatever your bracket it.

Tom C

[Yoda]

Originally Posted by tschock

Here's a key piece in my opinion for those who are part time dealers and still collectors. You need to really be able to distinguish between what you are buying for your personal collection and what you are buying to resell, and you can't start to 'fall in love' with something you are buying to resell. If you are buying to resell it, then you need to make sure you resell it.

Could not agree more. Yoda

[jcc6252]

Here are some ideas that have worked for me as a relatively new, part-time dealer:

- As mentioned, become knowledgeable in the cards you choose to deal, that's the fun part.

- Buy mostly from AH's, privately (Net54'ers), and show dealers (toughest option, but the most fun?). I still haven't figured out if smaller, obscure AH's are better than the giants. Buy the card AND the holder. Centering is key these days, so make it a priority. PSA is almost always on par or outperforms SGC for adding value. I would only recommend Beckett as an alternative grading company. Beware of buying raw cards, especially if not seen in-hand or from poor scans. Get a subscription to VCP, and try to buy at some percentage of the average VCP. I usually try to keep at or below 80%.
Note: VCP is not perfect, I have seen obvious mistakes in the individual entered prices, and many prices never make it into the system. Also, as mentioned earlier, some (shilled?) prices from Probstein, PWCC, etc. can cause inflated averages. Always drill down to get a better feel. Also, half grade averages can be misleading because of the lack of sales. When in doubt, use the lower grade.

- Sell mostly on eBay and privately (Net54'ers). Buy a yearly subscription to an eBay Basic Store, use BIN, become a top seller ($1000 and 100 transactions yearly), and take advantage of the discounts. Get a quality, standalone scanner, and do not alter your scans. Only charge shipping at cost. High shipping charges are not well received. Offer full refunds, no questions asked. If you offer a quality product, accurately portrayed, priced fairly, you will rarely get return requests. Since you have purchased your inventory at 80 cents to the dollar, you should be able to price at VCP and make some money, and you will make money.

- Don't be afraid to take offers. They may not be quite as much as you would like, but any profit is a good profit, especially for stale inventory. It may also drum up repeat customers for the future. If you have the time, avoid selling at a loss. Based on what I have read here, prices tend to be cyclical, and will probably come back to at least your break-even point. Of course, there are no guarantees on this one. Also, business volume seems to have no reasoning. Your store may go cold for a while, and then suddenly you can't catch up with your orders, and you need more inventory. Let the fun begin!