Sunk Costs in the Hobby Video

[frankbmd]

Originally Posted by rats60

But it is relevant to them. They are in the business to make money. If they sell cards at a loss, they will eventually go out of business. There certainly are times when you have to get out from under a bad buy, but not just because someone is interested in buying a card. To me the relevant question, which Chris didn't mention, is what is my replacement cost? If I can replace the card easily for much less today, then sell at a loss. If it is a Ruth, Cobb, Wagner, etc. and maybe I over paid, I will just hold out for my price because I will eventually get it. Those type of cards also draw eyes to your showcases and can help sell other cards. If a dealer just has less desirable cards, collectors may just give their table a quick look and move on.

In the video it looks like there is a lot of junk wax in the boxes behind the speaker, so he is obviously well aware of “sunk” costs.