Internet vs Hobby Shop, Transportation Cost Factor
MeteoriteGuy
Posts: 7,140 ✭✭
"The central question posed by this paper is: How do existing markets for a particular good
adjust to the introduction of a new market setting with a radically different mix of transaction
costs? In particular, we examine how widespread adoption of Internet auctions among sportscard
buyers and sellers has affected the way traditional retail sportscard industries operate."
http://www.econ.jhu.edu/People/Harrington/375/jk04b.PDF
link to above
adjust to the introduction of a new market setting with a radically different mix of transaction
costs? In particular, we examine how widespread adoption of Internet auctions among sportscard
buyers and sellers has affected the way traditional retail sportscard industries operate."
http://www.econ.jhu.edu/People/Harrington/375/jk04b.PDF
link to above
Collecting PSA graded Steve Young, Marcus Allen, Bret Saberhagen and 1980s Topps Cards.
Raw: Tony Gonzalez (low #'d cards, and especially 1/1's) and Steve Young.
Raw: Tony Gonzalez (low #'d cards, and especially 1/1's) and Steve Young.
0
Comments
This is very surprising to me
<< <i>This is very surprising to me >>
Or revealing.
Bosox1976
Customer: Have any newer packs of cards?
Me: No, I usually only have older packs since the prices are more consistent.
Customer: Oh, I really like newer packs
Me: I will try and get some newer ones in next time I order some.
Two weeks pass. I buy a box of A&G and Spectrum online along with some card savers I need for subs.
Customer: I see you have newer packs in. I'd buy some but newer packs go down in value too much to buy. I usually wait until the price comes down.
Problem is as mentioned before. For the Topps Chrome football packs at $4 a pop, which I would never buy personally, he probably had to pay $2-$3 per pack to begin with. Honestly, $4 a pack is not much of a markup, but when you consider that if its a dud year, which most have been recentlly, if he has to drop the price and sell for $3, he is losing money.
<< <i>Most of the guys hatte grading and ebay because it exposed their overgrading and insane mark ups. I still have a local guy that tries to get 1.5X the price for his wax (he is selling topps chrome FB at $4 a pack when you can get it under 60 a box on the bay). >>
How does 50% qualify as an insane markup??
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
"...We believe that while the Internet may not have been the sole cause of the phenomena observed in this study,
the fact it can explain every observed fact in a coherent way suggests it must have played a very important role..."
ohmy
<< <i>How does 50% qualify as an insane markup?? >>
Bwahahaha are you serious. Thats the whole point, why would a customer pay 50% more for something rather than getting it off ebay or another website?
At card shows every guy that walks up to the table has ebay on his blackberry checking completed auctions to see if you are priced too high and they will let you know it. That is the new reality.
Just because you bought it too high doesn't mean a customer has to or will pay the mark up. You either reduce pricing or hope it goes up or gets hot.
Also on the issue of the chrome, he is a dealer so I know he is into those boxes even cheaper than 60 bucks a box as the other dealer in town sells them for guess what, $60. He even says if he prices stuff higher than ebay it just sits so he would rather keep his cash flow up and reduce his profits on that item.
One issue with older dealers is that some are just not tech savy. I have had one or two larger dealers tell me that they just don't have time to sell online, make a website or figure out how to buy. I think to alot of these guys it was a second job with very low overhead and having to put alot more time or money into "overhead" isn't something they are real keen on.
Second dealer told me he sells alot more magic cards and gaming stuff than sports cards, wonder why.
The card shop is for people who want ONE pack or they just dont trust wax on ebay. Its also a comforting feeling when you pay AND get in the same motion, instead of waiting weeks.
Honestly, if the rest of society looked upon business this way, there would be ZERO storefronts. Why buy clothes at Goody's when you can buy them online cheaper? Why go to a used car lot to buy a used car when you can buy online cheaper? Jewelry? Cat Food? Soap? It can all be had online, why ever leave the house? 50% markup is not a lot on any item when you consider overhead, which most people NEVER consider. Again its survival of the fittest, if he can stay in business selling packs at $4 a pop, why not sell them at $4 a pop? He isnt morally obliged to keep collectors fresh with packs.
Not trying to be argumentative, but as a business owner, I sell my items for a lot less than anyone within 100 miles, but I do not get ALL of the business. Some go to other places because they like the owner there or they are unaware of another place or any number of reasons, but it doesnt mean that other stores are wrong because they sell for more than I do. Those that can sell for more and stay in business, may be better businessmen because they are maximizing their profits. Those that do not, will die out and the strong will survive, capitalism at its best
For the few times a year, I buy "new" wax, it's worth it to me to push the extra $15-20 locally, because Dave and Adam's doesn't have a bunch of online dollar boxes for me to sift through, or a big box with random traded sets and cans of Pinnacle Inside.
Also, Blowout won't let me pay for something next week if I forget my wallet, because they know I'm good for it.
When I'm buying boxes of 90's junk, though, it's online all the way.
Only an idiot would have a message board signature.
<< <i>Some go to other places because they like the owner there or they are unaware of another place or any number of reasons >>
What a hobby store sells is entirely dependent on what customers they are trying to attract. I haven't seen many stores survive only selling sports cards, they usually have comics and gaming cards(which is most of their business). I buy most of my stuff on eBay, but that's because the local hobby shops don't carry vintage packs(pre-70) or high end modern (Exquisite). They mainly offer the new releases, where I'll typically buy a few packs when I need card savers or storage boxes...the bottom line is most customers that walk in to shops are the "local team fans", and kids that are into other stuff...and like me, pass time and shoot the *hit with the owner....lastly, you can't have a pack war and eat free pizza on eBay....yes, I buy on eBay and yes, I buy from my local hobby shops.
<< <i>The key is that if you are internet savvy and you go into a card shop, what exactly are you looking for? Everything that could possibly be had is on the internet.
The card shop is for people who want ONE pack or they just dont trust wax on ebay. Its also a comforting feeling when you pay AND get in the same motion, instead of waiting weeks.
Honestly, if the rest of society looked upon business this way, there would be ZERO storefronts. Why buy clothes at Goody's when you can buy them online cheaper? Why go to a used car lot to buy a used car when you can buy online cheaper? Jewelry? Cat Food? Soap? It can all be had online, why ever leave the house? 50% markup is not a lot on any item when you consider overhead, which most people NEVER consider. Again its survival of the fittest, if he can stay in business selling packs at $4 a pop, why not sell them at $4 a pop? He isnt morally obliged to keep collectors fresh with packs.
Not trying to be argumentative, but as a business owner, I sell my items for a lot less than anyone within 100 miles, but I do not get ALL of the business. Some go to other places because they like the owner there or they are unaware of another place or any number of reasons, but it doesnt mean that other stores are wrong because they sell for more than I do. Those that can sell for more and stay in business, may be better businessmen because they are maximizing their profits. Those that do not, will die out and the strong will survive, capitalism at its best >>
I think if sellers of other merchandise acted like card dealers, there would be a lot less other businesses. Out of 10 average dealers, I would guess to say 3-4 dealers are dishonest or follow immoral practices.
One is of course welcome to charge a 50% mark up...and I have ran my own business for a long time so I understand, on some items 50% is not much and maybe break even when all is said and done. However, any dealer charging "retail" prices on baseball cards (and not in a high end mall or like) is doomed to failure.
The internet (and eBay) is here and it is not going away. If you are a card shop dealer, you have two choices. Adapt or close shop. This is what many dealers fail to grasp I think. I don't care what your overhead is....just like you do not likely care how much I pay for rent or electric. If you want me to spent $50 on cards that I can get online for $25, then you think I am a fool. All the dealer will get from me is to browse his displays and maybe pick up a few supplies....and I am not alone.
Raw: Tony Gonzalez (low #'d cards, and especially 1/1's) and Steve Young.
Blah blah drunken blah blah.
Blah blah blah.
And just for the rcord, I always go for the box.
The best shops I have seen generally sell both on the bay and in the store so they can get good deals sometimes online and offer them to their customers at a fair markup. Also if they have some slow moving items they can move them on the bay and not have them sitting and collecting dust. Also they don't have tons of VG and EX 60s and 70s cards taking up space. They are either priced to move or they have been ebayed so as to keep their inventories fresh.
There was a great article at Newsarama.com from a comic store owner about how they ran their buisness and how they broke traditions. One thing they did was price back issues at like 50c or 1$ no matter what the cover price was and this included last months issues (really a no no in most stores). They also sold alot of their unmovable 80s and 90s stuff by the lb. Literally 50c a pound. I think alot of shop owners would learn alot by these practices and how to generate fun.