I guess we can agree to disagree. Whether or not I agree with all of the intracacies of Levi's model -- I know that he makes a nice amount of coin, and that his model has been successful for him.
Your scenarios rely on a few premises: a) that there is a limitless number of opportunities by which Levi can acquire cards and make 20% returns. (e.g. sell his inventory, use it to buy more inventory that he flips more quickly at a lower mark-up). I would posit that that is perhaps a somewhat flawed notion, in that there are absolutely a finite number of opportunities for flipping cards at superior returns.
Yes, I do agree that there is always an opportunity cost in holding items. But you have to also understand that there is a benefit, too, of which it is harder to calculate a dollar amount. If there are a handful of cards I need -- I could probably call Levi and he will either have them in inventory or might know where I can get them, simply because he has such an extensive inventory. For many other dealers -- their inventories are often very sparse...so I won't specifically contact them for specific cards unless I know they have a good track record of finding cards I need. So the benefit must be weighed against the cost. >>
I don't think we're really disagreeing. I don't think I said that Levi's model isn't successful--- only that it's far, far from being optimal, and a little logic and reason could improve it dramatically. I agree that for cards that are thinly traded it might make sense to just hold them and wait to get your price. But for stuff like '58 Clemente's in PSA 7, etc. etc., where at least a handful are sold every month, it makes no sense to wait for the 'big score' IF you can sell the card right now at above market price. That's the part of Levi's model that baffles me. I can see not budging on a '61 Dice Musial or something like that, but if you've got a '57 Brooks Robinson in PSA 8, and someone offers you 120% of the going rate for that card, I cannot construct a logical argument for why you would politely decline that offer (assuming you were reasonably confident you could pick up another one in relatively short order).
Example: Let's say you have a '73 Schmidt in PSA 9, and the card is average for the grade. Now, let's say I offer you $1500 for it. Would you turn that down because you thought you could get $1650 for it six months from now? No way. You'd sell me the card (assuming no sentimental attachment to it, yada yada), go buy another for $1150 or so, and try to sell THAT one for $1650 six months from now. But if the board members on here are any indication Levi turns down deals like this routinely. Why? I can't explain it.
Also, I would argue that there are benefits to having a large inventory, but it depends on what's IN that inventory. A large inventory of thinly traded cards might produce the kind of synergistic effect you're getting at,whereby the value of one is actually enhanced by the rest of the inventory by virtue of the fact that the inventory, as a whole, gives you a reputation for being 'the guy to call' if you have a tough card you're looking to buy. But I don't think most Topps or Bowman graded HOFers from 1952-present would fall into that category.
I guess we can agree to disagree. Whether or not I agree with all of the intracacies of Levi's model -- I know that he makes a nice amount of coin, and that his model has been successful for him.
Your scenarios rely on a few premises: a) that there is a limitless number of opportunities by which Levi can acquire cards and make 20% returns. (e.g. sell his inventory, use it to buy more inventory that he flips more quickly at a lower mark-up). I would posit that that is perhaps a somewhat flawed notion, in that there are absolutely a finite number of opportunities for flipping cards at superior returns.
Yes, I do agree that there is always an opportunity cost in holding items. But you have to also understand that there is a benefit, too, of which it is harder to calculate a dollar amount. If there are a handful of cards I need -- I could probably call Levi and he will either have them in inventory or might know where I can get them, simply because he has such an extensive inventory. For many other dealers -- their inventories are often very sparse...so I won't specifically contact them for specific cards unless I know they have a good track record of finding cards I need. So the benefit must be weighed against the cost. >>
My business model is soomewhat similar to Levi's, and i beleive i make more money in the long run. In order to work on a smaller margin you have to do much more work. The hustle of going to shows and being able to find hte right deals is not very easy esepcially if you are looking to sell at or around closing ebay prices. Now, the small margin grind works for some operations, but the time the effort, and the travel that is neccesary to sustain this type of model is huge. also, by selling at a higher rate, youare able to pay a higher rate. This is important when you are dealing with high quality types of cards.
www.sportsnutcards.com Specializing in Certified Autograph Cards, Rookies, Rare Inserts and other quality modern cards! Over 8000 Cards in stock now! Come visit our physical store located at 1210 Main St. Belmar ,NJ
As Stone has pointed out, this subject has probably been beaten to death here on these boards in myriad topics over the past few years. I shall stay quiet on the subject henceforth.
I will now focus my time on this board to speaking out on new subjects that have not yet been discussed here, such as:
Excessive shipping charges
Is Andy Madec still in business
PSA vs. BGS vs. SGC
When was your submission logged in
The algorithm for determining PSA turnaround time
Does Thurman Munson belong in the HOF
Does Barry Bonds belong in the HOF
What to do with my one hundred thirty-seven 1993 Finest Refractor Mark McGwire cards
Does Vargha really exist, or is he just a figment of CU's collective imagination?
If I won the lottery, would I buy Topps and keep the entire 2008 Heritage issue to myself?
How, exactly, does a cucumber become a pickle?
~ms
I am actively buying MIKE SCHMIDT gem mint baseball cards. Also looking for any 19th century cabinets of Philadephia Nationals. Please PM with additional details.
As Stone has pointed out, this subject has probably been beaten to death here on these boards in myriad topics over the past few years. I shall stay quiet on the subject henceforth.
I will now focus my time on this board to speaking out on new subjects that have not yet been discussed here, such as:
Excessive shipping charges
Is Andy Madec still in business
PSA vs. BGS vs. SGC
When was your submission logged in
The algorithm for determining PSA turnaround time
Does Thurman Munson belong in the HOF
Does Barry Bonds belong in the HOF
What to do with my one hundred thirty-seven 1993 Finest Refractor Mark McGwire cards
Does Vargha really exist, or is he just a figment of CU's collective imagination?
If I won the lottery, would I buy Topps and keep the entire 2008 Heritage issue to myself?
How, exactly, does a cucumber become a pickle?
~ms >>
I know you're kind of new to the boards, Marc, but please stick around, as I'm sure other new and exciting topics will be addressed in the months to come. Some of the subjects which we may have occasion to entertain in the next few months are:
1) There are inconsistencies in TPG services; not only amongst the services themselves, but within each service on their own. 2) Some Ebayers have been known to list auctions with counterfeit Mickey Mantle cards, which they claim are actually authentic. 3) There has been some speculation that cards in PRO holders may be trimmed, or otherwise altered. 4) Feedback: Who goes first?
<< <i>i have dealt with levi on numerous occasions. he is a class act. we all have a right to ask any price we want on our cards. if a buyer deems it too high, then dont buy it. plain and simple. he pays strong for items he wants/needs. comparing his prices to the smr is meaningless. it has nothing to do with real market values. >>
Comments
<< <i>Boo-
I guess we can agree to disagree. Whether or not I agree with all of the intracacies of Levi's model -- I know that he makes a nice amount of coin, and that his model has been successful for him.
Your scenarios rely on a few premises: a) that there is a limitless number of opportunities by which Levi can acquire cards and make 20% returns. (e.g. sell his inventory, use it to buy more inventory that he flips more quickly at a lower mark-up). I would posit that that is perhaps a somewhat flawed notion, in that there are absolutely a finite number of opportunities for flipping cards at superior returns.
Yes, I do agree that there is always an opportunity cost in holding items. But you have to also understand that there is a benefit, too, of which it is harder to calculate a dollar amount. If there are a handful of cards I need -- I could probably call Levi and he will either have them in inventory or might know where I can get them, simply because he has such an extensive inventory. For many other dealers -- their inventories are often very sparse...so I won't specifically contact them for specific cards unless I know they have a good track record of finding cards I need. So the benefit must be weighed against the cost. >>
I don't think we're really disagreeing. I don't think I said that Levi's model isn't successful--- only that it's far, far from being optimal, and a little logic and reason could improve it dramatically. I agree that for cards that are thinly traded it might make sense to just hold them and wait to get your price. But for stuff like '58 Clemente's in PSA 7, etc. etc., where at least a handful are sold every month, it makes no sense to wait for the 'big score' IF you can sell the card right now at above market price. That's the part of Levi's model that baffles me. I can see not budging on a '61 Dice Musial or something like that, but if you've got a '57 Brooks Robinson in PSA 8, and someone offers you 120% of the going rate for that card, I cannot construct a logical argument for why you would politely decline that offer (assuming you were reasonably confident you could pick up another one in relatively short order).
Example: Let's say you have a '73 Schmidt in PSA 9, and the card is average for the grade. Now, let's say I offer you $1500 for it. Would you turn that down because you thought you could get $1650 for it six months from now? No way. You'd sell me the card (assuming no sentimental attachment to it, yada yada), go buy another for $1150 or so, and try to sell THAT one for $1650 six months from now. But if the board members on here are any indication Levi turns down deals like this routinely. Why? I can't explain it.
Also, I would argue that there are benefits to having a large inventory, but it depends on what's IN that inventory. A large inventory of thinly traded cards might produce the kind of synergistic effect you're getting at,whereby the value of one is actually enhanced by the rest of the inventory by virtue of the fact that the inventory, as a whole, gives you a reputation for being 'the guy to call' if you have a tough card you're looking to buy. But I don't think most Topps or Bowman graded HOFers from 1952-present would fall into that category.
Levi's had a good run here:
Levi I
Levi II
Levi III
Levi IV
Levi V
Levi VI
Levi VII
I still like the name: Levi Bleam - should be the name of a lead singer of a cover band.
mike
<< <i>Boo-
I guess we can agree to disagree. Whether or not I agree with all of the intracacies of Levi's model -- I know that he makes a nice amount of coin, and that his model has been successful for him.
Your scenarios rely on a few premises: a) that there is a limitless number of opportunities by which Levi can acquire cards and make 20% returns. (e.g. sell his inventory, use it to buy more inventory that he flips more quickly at a lower mark-up). I would posit that that is perhaps a somewhat flawed notion, in that there are absolutely a finite number of opportunities for flipping cards at superior returns.
Yes, I do agree that there is always an opportunity cost in holding items. But you have to also understand that there is a benefit, too, of which it is harder to calculate a dollar amount. If there are a handful of cards I need -- I could probably call Levi and he will either have them in inventory or might know where I can get them, simply because he has such an extensive inventory. For many other dealers -- their inventories are often very sparse...so I won't specifically contact them for specific cards unless I know they have a good track record of finding cards I need. So the benefit must be weighed against the cost. >>
My business model is soomewhat similar to Levi's, and i beleive i make more money in the long run. In order to work on a smaller margin you have to do much more work. The hustle of going to shows and being able to find hte right deals is not very easy esepcially if you are looking to sell at or around closing ebay prices. Now, the small margin grind works for some operations, but the time the effort, and the travel that is neccesary to sustain this type of model is huge. also, by selling at a higher rate, youare able to pay a higher rate. This is important when you are dealing with high quality types of cards.
Specializing in Certified Autograph Cards, Rookies, Rare Inserts and other quality modern cards! Over 8000 Cards in stock now! Come visit our physical store located at 1210 Main St. Belmar ,NJ
As Stone has pointed out, this subject has probably been beaten to death here on these boards in myriad topics over the past few years. I shall stay quiet on the subject henceforth.
I will now focus my time on this board to speaking out on new subjects that have not yet been discussed here, such as:
Excessive shipping charges
Is Andy Madec still in business
PSA vs. BGS vs. SGC
When was your submission logged in
The algorithm for determining PSA turnaround time
Does Thurman Munson belong in the HOF
Does Barry Bonds belong in the HOF
What to do with my one hundred thirty-seven 1993 Finest Refractor Mark McGwire cards
Does Vargha really exist, or is he just a figment of CU's collective imagination?
If I won the lottery, would I buy Topps and keep the entire 2008 Heritage issue to myself?
How, exactly, does a cucumber become a pickle?
~ms
<< <i>If I won the lottery, would I buy Topps and keep the entire 2008 Heritage issue to myself? >>
<< <i>How, exactly, does a cucumber become a pickle? >>
If a Harvard grad can't figure that out there is absolutely no chance for the rest of us.
<< <i>Does Vargha really exist, or is he just a figment of CU's collective imagination? >>
That one is easy, he was Zardoz' alt id. I thought everyone knew that.
Always looking for Topps Salesman Samples, pre '51 unopened packs, E90-2, E91a, N690 Kalamazoo Bats, and T204 Square Frame Ramly's
<< <i>Thanks for the discussion, Boo, and others.
As Stone has pointed out, this subject has probably been beaten to death here on these boards in myriad topics over the past few years. I shall stay quiet on the subject henceforth.
I will now focus my time on this board to speaking out on new subjects that have not yet been discussed here, such as:
Excessive shipping charges
Is Andy Madec still in business
PSA vs. BGS vs. SGC
When was your submission logged in
The algorithm for determining PSA turnaround time
Does Thurman Munson belong in the HOF
Does Barry Bonds belong in the HOF
What to do with my one hundred thirty-seven 1993 Finest Refractor Mark McGwire cards
Does Vargha really exist, or is he just a figment of CU's collective imagination?
If I won the lottery, would I buy Topps and keep the entire 2008 Heritage issue to myself?
How, exactly, does a cucumber become a pickle?
~ms >>
I know you're kind of new to the boards, Marc, but please stick around, as I'm sure other new and exciting topics will be addressed in the months to come. Some of the subjects which we may have occasion to entertain in the next few months are:
1) There are inconsistencies in TPG services; not only amongst the services themselves, but within each service on their own.
2) Some Ebayers have been known to list auctions with counterfeit Mickey Mantle cards, which they claim are actually authentic.
3) There has been some speculation that cards in PRO holders may be trimmed, or otherwise altered.
4) Feedback: Who goes first?
But I know how a cucumber becomes a pickle.
for a buck i'll send anyone a recipe.
Steve
I would like to discuss the Thermodynamic Coefficient of Thermal Expansion and Contraction of Topps Heritage Gum?
May come in handy some day?
<< <i>i have dealt with levi on numerous occasions. he is a class act. we all have a right to ask any price we want on our cards. if a buyer deems it too high, then dont buy it. plain and simple. he pays strong for items he wants/needs. comparing his prices to the smr is meaningless. it has nothing to do with real market values. >>
no, he just made them boring.