Is it still possible to become a part time dealer?

[batkidiii]

I love to collect vintage baseball and was wondering if it is possible to become a samll, part time dealer in baseball cards? I just want to earn a little extra money to then turn help grow my personal collection. Any thoughts, or ideas for making my hobby passion into a side job?
Also, what are some ways that you would recommend in obtaining cards for resell. Thrift stores, garage sells, ebay???
I'm just kicking the idea around in my head. Any help would be greatly appreciated.

Byron

[travrosty]

yeah, you just do it, find cards anyway you can, ask around, go everywhere, start small, build contacts, look for some you can flip. Don't put pressure on yourself. Small is good to start.

[batkidiii]

Thank you, Travis. I have my own baseball card room that looks like a mini card shop. I even have a glass display case, so I thought, "Why not try to make it an actual working card business?" If I decide to try my hand at selling cards, I will certainly start very small.

[BeanTown]

Purchase large lots with tremendous breakup value. Then find a place to sell like Ebay, Amazon, or an auction house where you break it up into individual lots.

[batkidiii]

Finding the large lots is the question. Where would you start to find them? Craigslist, ebay?

[batkidiii]

I'm not looking for a quick buck. In fact I would try to be fair with whoever I do business with, whether its buying or selling. Life is about your passions and I feel that it would be extremely satisfying being more active with my love of baseball. I think I like the no name players as much as the superstars. Its the rich history that each vintage card holds that I really appreciate.

[BeanTown]

Major auctions... Example. REA lot 10...

[1952boyntoncollector]

Originally Posted by batkidiii

Finding the large lots is the question. Where would you start to find them? Craigslist, ebay?

There are many 'part time' guys out there..i would make sure you identify current market prices on cards you are looking for ..then look to buy them...

if you have any 1954s topps I can be your first customer.....


I did buy this REA Lot
http://bid.robertedwardauctions.com/...x?itemid=38234

I think the break up value should exceed what I paid ....people with many of the cards aren't willing to pay for the whole lot so there is value selling them card by card...

[buymycards]

There are many ways to go about this. In my case, I set up at cards shows. Sometimes I am able to buy large lots from other dealers and sometimes customers walk into the show looking for someone to buy their cards.

Some of the smaller card shows will give you 4 tables for $35, some are $30-40 per table, and the price goes up from there. It helps to bring an assortment of items, because you never know what people will ask for. Bring all 4 major sports, vintage, new, auto's and GU. Card shows can be a great way to blow out your junk that is difficult to sell on eBay.

The most difficult part of being a dealer is finding inventory to resell. Remember, you make your money when you buy. If you pay too much for your inventory, you won't be able to sell it for a decent profit. One of the most difficult things to do is too walk away from a collection because the price is too high. If you can't buy it for a price that you are comfortable with, just walk away and don't look back.

Being a part time dealer can take a LOT of time. Looking at collections, scanning and listing on eBay, getting ready for shows, setting up at shows, all eat up time.

Check Craigslist, flea markets, newspaper ads, etc. Check the BST and other card forums for possible inventory. Make sure that all of your friends and co-workers and relatives know that you are looking for cards and you will be surprised at the number of leads that can be generated from word of mouth advertising. Print some business cards. Don't forget Facebook and Twitter.

In my case, I have a full time job, so I can't devote a lot of time to being a dealer. My goal is to make a little money so I can buy cards for my Louisiana collection without using my personal funds.

Like everything else in life, if you work hard and do your research, you should be fine.

Good luck! Rick

[Sean1125]

Give me a call on Monday and I will give you a run down.

[Exhibitman]

I've been a part time dealer for years. The key is math. You have to be able to do it. Understanding and accounting for all costs. Depending on what you sell that will include acquisition costs, grading fees, postage, packing materials, commissions, etc. you also need to maintain records for income and sales tax purposes. If you are serious and not a lawyer or CPA familiar with tax law you wil probably want to schedule an hour with one to go over the tax issues.

There are very few shows in some places so eBay and auctions will be primary outlets for sales. You must understand costs and benefits of each.

Finding raw collections is great. It also doesn't happen much for quality stuff. Lots of shiny crap out there. I'd suggest starting with your own stuff. Sell whatever you don't really want and see how that goes.

[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

[swarmee]

Want to be a part time dealer?

http://www.comc.com/Promotions/Port_Sale

Start by making offers there. No messy sending packages all over the world. COMC does it for you.

http://www.blowoutcards.com/forums/e...cesses-14.html

[Koufax32fan]

Tony Gordon is a part time dealer in the Chicago area and writes a blog about his experiences - http://www.fatdaddyssports.com/blog - if you read it you will learn about bad hotels, good eats and buying/selling cards.

[buymycards]

Hi Guys,

I don't know the exact tax rules. I keep very precise records and turn them over to my tax preparer every year.

Thanks for the tip on the blog. I spent an hour reading it and I am looking forward to reading the Archived items. I met Tony at the National and I am hoping to make it up to his Clarion show in Milwaukee.

Rick

[Exhibitman]

Originally Posted by 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

No, that is the long term capital gains rate on cards you sell as an investor if held for more than a year [see IRS Topic 409]. And there would be no self-employment tax on that form of capital gain because it is not active business income. If you undertake a 'real' business and generate active income, whether via business entity filing its own return or Schedule C filing, you pay the regular marginal income tax rate and self-employment taxes but you can also take advantage of the full range of business deductions, like attending the National. As long as you are profitable 3 of 5 years: if you run perpetual losses the IRS may treat your business as a hobby.

[btcarfagno]

Originally Posted by Exhibitman

No, that is the long term capital gains rate on cards you sell as an investor if held for more than a year [see IRS Topic 409]. And there would be no self-employment tax on that form of capital gain because it is not active business income. If you undertake a 'real' business and generate active income, whether via business entity filing its own return or Schedule C filing, you pay the regular marginal income tax rate and self-employment taxes but you can also take advantage of the full range of business deductions, like attending the National. As long as you are profitable 3 of 5 years: if you run perpetual losses the IRS may treat your business as a hobby.

Right. That would be more of a one time thing as opposed to doing it as a business. That is what I meant. Brain fart.

Tom C

[batkidiii]

Well, I'm not looking to compete against anyone. I just want to be able to turn a small profit so I can continue enjoying my hobby. I have a young daughter who loves baseball, and cards, so I think she would get a thrill if I included her in a mini business venture with dad.

[edhans]

[QUOTE=Exhibitman;1462969]. As long as you are profitable 3 of 5 years: QUOTE]

I thought it was two years out of seven.

[parkerj33]

The best advice from above, is you make money on the buy-side. Know your market well, and you will not get into trouble. The easiest thing I found when starting out is to find a specialty and stick with it....For me, thats Topps Heritage. I strictly do that and have been for over 10 years. Met tons of people, made tons of deals, big and small, and have had a blast with it.

It can be time-consuming, so you have to have a passion, but if you are small, its easy to take a break from it too.

[Exhibitman]

[QUOTE=edhans;1463148]

Originally Posted by Exhibitman

. As long as you are profitable 3 of 5 years: QUOTE]

I thought it was two years out of seven.

That's for farming and some other specific industries whose lobbies got them relaxed rules.

[smtjoy]

I have helped build my collection for years doing this. 10 years ago I found that many times cards I desired were in lots with many cards I didnt need or want. I decided to bid aggressively but always had a max amount on anything. These lots started in the $100-500 range but over time and added savings these have been up to 10k+. I can say that 80% after selloff have ended at breakeven or above, most of the negatives were when I bid above my max chasing that hard to get card lol should have know better. These have come from most auction houses, my best deals have come from ebay, REA and H&S.

Some tips that really helped me-

Have a niche- an area where you are the expert and because of this knowledge you can separate the good deals from the bad.

Know sales values- You have to know what a card will sell for at auction as well as from BIN's, past eBay sales and VCP are very important, also know to cancel out the sketchy sales from Probstein, PWCC, etc that can inflate a true price.

Learn to maximize value- Learn the best way to sell your cards to maximize the value- eBay, AH's, eBay BIN's, Private Sale. This one is tough as each has their upsides. On hot cards or highest graded, 1/1 type I like to .99 auction on ebay the lower value (less than $200) and the more valuable to an AH. On scarce cards with few to none for sale on ebay, I like to first list card on ebay as an auction at the price I feel the value is at based on my bidding value I used to purchase said card (I get a chance for a bidding war but will not lose if no bidders). If it sells great, if not then I list as a BIN and let it ride in my store, I find they will sell over time you just have to have patience 3-5 years worth. On scarce cards where im not sure there will be two bidders I try to avoid AH's, I find they will sell low mainly because the one collector bidding will win them one bid increment above the dealer floor (most dealers bid on good lots, this is where having your niche pays off as you have a better idea on value vs a dealer that sells everything and is not an expert). I have had great luck on private sales, most of these came from buyers reaching out to me, either thru ebay, net54 or registries.

Set a max and stick to it- since you are doing this to grow your collection, you must take a business approach vs a personal "I got to have this card" approach. Passing on bad deals is a must and will happen a lot more than good buys, for me I always took it as a challenge to make good decisions.

[PolarBear]

No, I'm sorry. It is no longer possible.

[Republicaninmass]

It takes A LOT of time and effort. Listing, shipping, posting, scanning, etc. It takes dedication, just like any other job.

[insccollectibles]

Originally Posted by Republicaninmass

It takes A LOT of time and effort. Listing, shipping, posting, scanning, etc. It takes dedication, just like any other job.

great comment.

[swarmee]

Hence my suggestion for COMC. Pay them a fee, they do it for you and it gets crosslisted on Amazon and they take care of the shipping.

[Jantz]

Originally Posted by Republicaninmass

It takes A LOT of time and effort. Listing, shipping, posting, scanning, etc. It takes dedication, just like any other job.

+1

It also takes A LOT of people skills.

Here is one example:

Customer stacks up close to 30 HOF autographed cards (from packs) and asks for a price.
My answer - How about $475
Customer reply - How am I supposed to make money selling them on Ebay at those prices?
My reply - (censored)

[Luke]

Originally Posted by swarmee

Hence my suggestion for COMC. Pay them a fee, they do it for you and it gets crosslisted on Amazon and they take care of the shipping.

John, do you know of anyone who has had success doing this? I've only searched comc.com a few times, but the vintage prices were so ridiculous that I couldn't imagine anyone selling anything. I haven't seen even 1 t206 that was priced close enough to make me stop and think about it. Is it a site that might work if you're selling post-war, but not so much for pre-war?

[glchen]

Originally Posted by smtjoy

I have helped build my collection for years doing this. 10 years ago I found that many times cards I desired were in lots with many cards I didnt need or want. I decided to bid aggressively but always had a max amount on anything. These lots started in the $100-500 range but over time and added savings these have been up to 10k+. I can say that 80% after selloff have ended at breakeven or above, most of the negatives were when I bid above my max chasing that hard to get card lol should have know better. These have come from most auction houses, my best deals have come from ebay, REA and H&S.

Some tips that really helped me-

Have a niche- an area where you are the expert and because of this knowledge you can separate the good deals from the bad.

Know sales values- You have to know what a card will sell for at auction as well as from BIN's, past eBay sales and VCP are very important, also know to cancel out the sketchy sales from Probstein, PWCC, etc that can inflate a true price.

Learn to maximize value- Learn the best way to sell your cards to maximize the value- eBay, AH's, eBay BIN's, Private Sale. This one is tough as each has their upsides. On hot cards or highest graded, 1/1 type I like to .99 auction on ebay the lower value (less than $200) and the more valuable to an AH. On scarce cards with few to none for sale on ebay, I like to first list card on ebay as an auction at the price I feel the value is at based on my bidding value I used to purchase said card (I get a chance for a bidding war but will not lose if no bidders). If it sells great, if not then I list as a BIN and let it ride in my store, I find they will sell over time you just have to have patience 3-5 years worth. On scarce cards where im not sure there will be two bidders I try to avoid AH's, I find they will sell low mainly because the one collector bidding will win them one bid increment above the dealer floor (most dealers bid on good lots, this is where having your niche pays off as you have a better idea on value vs a dealer that sells everything and is not an expert). I have had great luck on private sales, most of these came from buyers reaching out to me, either thru ebay, net54 or registries.

Set a max and stick to it- since you are doing this to grow your collection, you must take a business approach vs a personal "I got to have this card" approach. Passing on bad deals is a must and will happen a lot more than good buys, for me I always took it as a challenge to make good decisions.

I think this is really good advice here. Scott also had good advice on this topic from a similar thread a few years ago: Link

[1952boyntoncollector]

Buy every 1952 Topps Baritrome .................

[Rich Klein]

Simple Answer is of course you can do this. Long answer is dependent on what you want to do as a dealer and why

[vintagetoppsguy]

Originally Posted by Rich Klein

Simple Answer is of course you can do this. Long answer is dependent on what you want to do as a dealer and why

Finally, some good advice.

In the initial post the OP says he wants to "earn a little extra money" and everybody chimed in with ideas, but nobody asked any questions. The first question I would have asked is, "What is a 'little extra money' to you"? $100 a month? $500 a month? $1000 a month?

For example, if you only want to earn an extra $100 a month, then you don't need to put in 3-4 hours a day as previously suggested. Then again, if you want to make an extra $2000 a month, 3-4 hours a day is probably about right.

As Richard stated, the first thing you need to do is determine what you want to do as a dealer ($) and go from there.

[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!

[GehrigFan]

Originally Posted by LukeLyon

John, do you know of anyone who has had success doing this? I've only searched comc.com a few times, but the vintage prices were so ridiculous that I couldn't imagine anyone selling anything. I haven't seen even 1 t206 that was priced close enough to make me stop and think about it. Is it a site that might work if you're selling post-war, but not so much for pre-war?

This is true for pre-war cards on COMC (post-war vintage tends to *usually* be priced better). However, this also can work to your advantage if you price your cards fairly. Because so many of the sellers on there overprice their vintage cards, the fairly priced vintage cards tend to sell fairly quickly. Their service is extremely valuable if you just don't have the time to scan, list and ship your cards.

Mark

[swarmee]

In one year on COMC, I have put $2,500 in cash in, added about $4,000 in card value, and have bought enough in ports (bulk purchases) and reinvesting from my card sales to now have $29,000 in list prices in 9,800 cards in inventory. I have also probably taken $2,000 in cards off the site either for my personal collection or to get graded and re-sell. In the link showing the "Flipping Successes" from Blowout you can see that I have bought many vintage cards on COMC and then immediately re-listed them and sold them for higher prices.

The important thing is to pay attention to the sales (some people mark their cards down 75% from retail prices), the cards that get loaded (because someone else is checking them to flip for higher profit), or port sales. You can add plenty of cards to your watch list, then wait for them to go on sale. You can play their "Challenge" games to learn about previous sale prices for cards on site. You can also make offers to most sellers. I normally accept every offer up to 50% off. Every month or so, I run a 50% off sale. Vintage sells a little slower on COMC, but there are vintage buyers there and with cross-listing to Amazon, it's easy to sell cards internationally.

There are guys on there that sell in the thousands a month. COMC is not responsive to some customer complaints, but they've treated me well and I continue to try to help their site become one the best places to shop. I found three of the backstamped T206 cards that people on this site needed to reunite with the others. Got a VG/EX T206 common for $12 on there, as well as some VG/EX common 1933 Goudeys for $6 each just waiting on sales. It's not perfect, but I'm having a good time and increasing my collection while setting myself up to make a nice little sidejob out of it.

Feel free to send me a PM if you want more information.

[batkidiii]

You know? I have no expectations right now about how much extra I would like to earn. I want to start slow and see where it takes me. I love vintage and would like to be more involved in the hobby. I think any profit I could possibly make would be small at first, and I would simply roll it back into another batch of cards. I really just want to get my wet feet and take it easy.
Everyone here has been so helpful. I cannot express my gratitude enough.

Byron

[Leon]

Originally Posted by batkidiii

You know? I have no expectations right now about how much extra I would like to earn. I want to start slow and see where it takes me. I love vintage and would like to be more involved in the hobby. I think any profit I could possibly make would be small at first, and I would simply roll it back into another batch of cards. I really just want to get my wet feet and take it easy.
Everyone here has been so helpful. I cannot express my gratitude enough.

Byron

Hey Byron
Good luck with it. Most of us started smaller and got more into it. The great thing about this hobby is you can do what makes you happy with respect to all aspects of it, collecting or dare I say "investing"? It's usually best to go into things slowly and surely. We look forward to some updates..