Redisplay Messages: Compact | Brief | All | Full Show Messages: All | Without Replies| Author: | Stuart9  | | Posted: | Jan 19, 2022 06:48 | | Subject: | Re: Typical profit margins | | Viewed: | 67 times | | Topic: | Announce | |
|
| Sourcing suitable Lego at a good price here is not easy either, nearly everyone
expects a high price, can’t blame them but it makes it difficult if you want
to resell.
In Announce, Teup writes:
| | In Announce, runner.caller writes:
| | | | In Announce, Teup writes:
Money = time = space. If you want to earn more money, you need either more time
or more space. You can work long hours at a low profit rate, or you can crank
up your profit rate by growing your store which enables higher prices. My strategy
has always been to go nuts on space and save time 
|
You bring up a good point about time.
I'd say the best % return on paper would be from cheap used bulk with figs
and listing every possible piece.
I recently acquired 60lbs for $330 that included approx. 125 figures.
Now, if I were to take the time to list EVERYTHING I could, the unrealized gains
would be huge. A couple thousand dollars maybe, but it would take me a super
long time to list and even longer to realize those gains + I don't have the
space to do all the parts.
I already flipped one architecture set to ebay out of that lot weighing around
2 lbs for approx $80 after fees and shipping. I'll do this with all the bulk
from this lot eventually and probably 2X to 3X on just that as an immediate realized
gain and this will leave the 125 figures as "free" that I will then add to my
BL store.
The % gains are not there, but I can process way more lots if I sell off the
bulk in 2 or 3 listings and then add 100 or so figures to my store vs taking
the time so sort, store, list, pick, pack, and ship 24,000 pieces over the long
run.
Just different strategy, I also know a lot of sellers that do very well with
parts and having a huge variety.
|
Ah, that makes sense, I was talking strictly about parting out new sets. Those
will usually be 2x or 3x almost by definition, as I think that roughly gets
you an hourly pay of something in between €15-€25 which is an acceptable "career"
for people. If we'd have sources all over the place that give us 5x, pretty
soon the prices will just drop until we settle at the 2x-3x level again.
But as for used, yes, a whole lot more work is involved there, so it makes sense
that you can have 5x there - and probably still end up with that same hourly
pay as you would for parting out a new set at 2x (with the benefit of course
that you have much more cool and unique things to draw customers with).
I think it depends on where you live whether you can source used stock at an
acceptable price, though. Here it's pretty hard. I get the impression that
in America it's common for people to not really be aware of what they have
and just dump it for cheap, while in the Netherlands everyone thinks they're
suddenly an expert or somehow have hidden gems in their attic that the world
was waiting for, even though they don't know anything about Lego. The same
way all Americans know "don't eat yellow snow", all Dutch people know "don't
sell your Lego cheap"
|
|
 |
| Author: | Teup | | Posted: | Jan 19, 2022 06:08 | | Subject: | Re: Typical profit margins | | Viewed: | 99 times | | Topic: | Announce | |
|
| In Announce, runner.caller writes:
| | | | In Announce, Teup writes:
Money = time = space. If you want to earn more money, you need either more time
or more space. You can work long hours at a low profit rate, or you can crank
up your profit rate by growing your store which enables higher prices. My strategy
has always been to go nuts on space and save time
|
You bring up a good point about time.
I'd say the best % return on paper would be from cheap used bulk with figs
and listing every possible piece.
I recently acquired 60lbs for $330 that included approx. 125 figures.
Now, if I were to take the time to list EVERYTHING I could, the unrealized gains
would be huge. A couple thousand dollars maybe, but it would take me a super
long time to list and even longer to realize those gains + I don't have the
space to do all the parts.
I already flipped one architecture set to ebay out of that lot weighing around
2 lbs for approx $80 after fees and shipping. I'll do this with all the bulk
from this lot eventually and probably 2X to 3X on just that as an immediate realized
gain and this will leave the 125 figures as "free" that I will then add to my
BL store.
The % gains are not there, but I can process way more lots if I sell off the
bulk in 2 or 3 listings and then add 100 or so figures to my store vs taking
the time so sort, store, list, pick, pack, and ship 24,000 pieces over the long
run.
Just different strategy, I also know a lot of sellers that do very well with
parts and having a huge variety.
|
Ah, that makes sense, I was talking strictly about parting out new sets. Those
will usually be 2x or 3x almost by definition, as I think that roughly gets
you an hourly pay of something in between €15-€25 which is an acceptable "career"
for people. If we'd have sources all over the place that give us 5x, pretty
soon the prices will just drop until we settle at the 2x-3x level again.
But as for used, yes, a whole lot more work is involved there, so it makes sense
that you can have 5x there - and probably still end up with that same hourly
pay as you would for parting out a new set at 2x (with the benefit of course
that you have much more cool and unique things to draw customers with).
I think it depends on where you live whether you can source used stock at an
acceptable price, though. Here it's pretty hard. I get the impression that
in America it's common for people to not really be aware of what they have
and just dump it for cheap, while in the Netherlands everyone thinks they're
suddenly an expert or somehow have hidden gems in their attic that the world
was waiting for, even though they don't know anything about Lego. The same
way all Americans know "don't eat yellow snow", all Dutch people know "don't
sell your Lego cheap"
|
|
| Author: | StickyBrickit | | Posted: | Jan 19, 2022 04:53 | | Subject: | Re: Typical profit margins | | Viewed: | 116 times | | Topic: | Announce | |
|
| In Announce, runner.caller writes:
| | | | In Announce, Teup writes:
Money = time = space. If you want to earn more money, you need either more time
or more space. You can work long hours at a low profit rate, or you can crank
up your profit rate by growing your store which enables higher prices. My strategy
has always been to go nuts on space and save time
|
You bring up a good point about time.
I'd say the best % return on paper would be from cheap used bulk with figs
and listing every possible piece.
I recently acquired 60lbs for $330 that included approx. 125 figures.
Now, if I were to take the time to list EVERYTHING I could, the unrealized gains
would be huge. A couple thousand dollars maybe, but it would take me a super
long time to list and even longer to realize those gains + I don't have the
space to do all the parts.
I already flipped one architecture set to ebay out of that lot weighing around
2 lbs for approx $80 after fees and shipping. I'll do this with all the bulk
from this lot eventually and probably 2X to 3X on just that as an immediate realized
gain and this will leave the 125 figures as "free" that I will then add to my
BL store.
The % gains are not there, but I can process way more lots if I sell off the
bulk in 2 or 3 listings and then add 100 or so figures to my store vs taking
the time so sort, store, list, pick, pack, and ship 24,000 pieces over the long
run.
Just different strategy, I also know a lot of sellers that do very well with
parts and having a huge variety.
|
Some good points about time management. I think this is key with reselling Lego...max.
gains could be seen by parting out every piece and listing individually but to
run this as a full-time business and your sole income would take an enormous
amount of time to build up the stock levels (acquiring, sorting, checking, storing
and listing) so your hourly rate would be very poor, especially to start with.
Probably best thought of as what's the best hourly rate method that can be
achieved in a reasonable amount of time? Say 1-2 years to have a working store
with a livable wage. I don't think individual parts would get you there that
quick.
|
|
| Author: | Sadler_Bricks | | Posted: | Jan 19, 2022 00:36 | | Subject: | Re: 10k bricks milestone | | Viewed: | 36 times | | Topic: | Announce | |
|
| Congrats
Sadler_bricks
|
| Author: | Oliverbricks | | Posted: | Jan 18, 2022 17:19 | | Subject: | 10k bricks milestone | | Viewed: | 76 times | | Topic: | Announce | |
|
| Hello everyone my store just hit 10,000 bricks please stop by my store and check
it out
|
| Author: | yorbrick | | Posted: | Jan 18, 2022 15:39 | | Subject: | Re: Typical profit margins | | Viewed: | 114 times | | Topic: | Announce | |
|
| | |
I don't find new sets vs used sets to have too too much difference in part
out time though.
|
It depends if the used set is already checked for completeness and everything
is genuine. If that is already done, then part out times are similar. Unless
there are stickered parts that you want to sell as decorated, that's a bit
more work.
|
|
| Author: | Brickitty | | Posted: | Jan 18, 2022 14:56 | | Subject: | Re: Typical profit margins | | Viewed: | 111 times | | Topic: | Announce | |
|
| In Announce, Adjour writes:
| | as a side note, I've always liked your store. It's the size I hope to
reach. I think we have similar strategies on many things based on other posts.
It is so interesting to me that so many different strategies can work here for
the same product...and how the level of service can then change that as well!
Crystal
|
Thank you so much, Crystal! I like your store too, and since I see you have a
handful of things on my wanted list, expect an order from me later today! (Not
because you complimented me... but not NOT because you complimented me.)
As another side note, collecting every Lego animal is a big job. I'm still
mad about those random-animal-color Friends cubes they've been releasing
for a few years now.
|
|
| Author: | Adjour | | Posted: | Jan 18, 2022 14:42 | | Subject: | Re: Typical profit margins | | Viewed: | 112 times | | Topic: | Announce | |
|
| as a side note, I've always liked your store. It's the size I hope to
reach. I think we have similar strategies on many things based on other posts.
It is so interesting to me that so many different strategies can work here for
the same product...and how the level of service can then change that as well!
Crystal
|
|
| Author: | Brickitty | | Posted: | Jan 18, 2022 14:30 | | Subject: | Re: Typical profit margins | | Viewed: | 119 times | | Topic: | Announce | |
|
| In Announce, Adjour writes:
| | if you are topping out making 2x markup doing this IMO you are doing something
wrong. .02
I frequently make 10-20x my investment sometimes more. I'd say 4-5x is probably
more the norm. HOWEVER, that does not account for time.
Time is what kills your margins.
Also keep in mind the capital tied up. I spent years buying any inventory that
had the right price. I'm currently coasting on stuff already bought. I'm
just listing now. If you don't have the operating capital to buy stuff at
the right time, and the ability wait for those items to sell, then you make less
money.
I'm probably making about what I did at my old day job before I quit to do
this full time (on this site, if I want quick capital for something I use local
and ebay). but, just like time is your enemy, its also now my friend. I get to
work when I want now.
The flexibility alone make it worth it.
Crystal
|
+1 to just about everything. If I had gone into the field I majored in over a
decade ago, I still wouldn't be making as much as I do with Lego, even after
the high self-employed tax rate in the U.S. (I was not pre-med nor engineering).
Know your worth. Don't sell yourself short (in this case, the idiom is literal).
My biggest strength is that I make virtually zero mistakes on orders, ever, and
that's worth a lot in this business. It took me years to realize that, though.
|
|
| Author: | Adjour | | Posted: | Jan 18, 2022 14:17 | | Subject: | Re: Typical profit margins | | Viewed: | 100 times | | Topic: | Announce | |
|
| In Announce, yorbrick writes:
| | | |
if you are topping out making 2x markup doing this IMO you are doing something
wrong. .02
I frequently make 10-20x my investment sometimes more. I'd say 4-5x is probably
more the norm. HOWEVER, that does not account for time.
Time is what kills your margins.
|
A big difference here is new vs used. New sets, whether sold as part outs or
sets, don't have the profit margins that used ones do but then they do not
require the time used sets or parts do either.
|
Agreed.
After I posted I realized I should specify. Used is def a different ballgame.
That said, I still do better than 2x on new stuff.
I don't find new sets vs used sets to have too too much difference in part
out time though.
To each their own. I just know, for me, personally, if I was doing only new,
for only 2x, it would not be worth it.
|
|
Next Page: 5 More | 10 More | 25 More | 50 More | 100 More
|
United Kingdom, England
Netherlands, Utrecht
USA, Washington
