There is always a time value of money that is used. That being said I don't think Dean's is hurting by the looks of their operations. Most of the times, in the vintage space, if you buy right and hold for x yrs you will do ok. As to Deans they look like they go with the massive amount approach and only a tiny percentage of their items selling is still ok.....as a tiny percentage of a huge number might not be too bad.
Quote:
Originally Posted by vintagesportscollector
Trdcrdkid, I also assume Dean is making very good money with his business model, so I won't criticize his business. My only point is that money sitting around has a cost - it's called Opportunity Cost. What that $75 could have made if not tied up in inventory sitting for two years. It's what every business needs to consider, and I am sure Dean manages it well else he wouldn't be in business.
Simple example...you buy a house (tiny) for $100K and pay a monthly mortgage similar to the amount to rent another home. After ten years you sell the house for $150K and think you made a good investment because it made 50%...BUT if you had invested that $100K it probably would have doubled over the same ten year period.
Collectors need to consider this too when they think they are "investing" with their collection.
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07-25-2015, 07:13 AM
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