Quote:
Originally Posted by Fred
I'm still trying to figure out how companies make their money with "vaults". The only thing I can think of is that these vault companies provide a portal to auction/sell card for which they take a cut of the sale price. If that's the case, then an assumption is that they are hoping the card turns over and over again. Bottom line they don't take a loss if the card value goes down because they don't own it.
Is that about right?
Does anybody know what all the fees that are associated with vault storage?
I just can't wrap my head around this.
|
For the most part, I think they make their money by making you a captive, so you’re incentivized to sell through them.
The value proposition to the collector is mostly based around avoiding sales tax, maybe getting a discount on sales fees through their platform, and for someone who prefers to avoid insurance costs and the hassle of actually holding your items at home, they take care of it for you, plus give you a platform to sell quickly when you are ready.
In a perfect world, I think the business model is that everyone loves their vault and every piece in the world stays there. Every time someone sells, it never leaves the facility, and the vault operator just take a cut of the sale by putting the new owner’s name on the ownership file.
I think all of the vault operators are paranoid that they’ll miss out on becoming THE vault, and so they’re all motivated to do everything they can to lower fees and get you to keep your items there instead of using the other guys’ vault.