Tom Geiger Posted April 14, 2015 Share Posted April 14, 2015 (edited) Anyone in business should want to turn over their inventory quickly and make a profit. Um no! You have it completely backwards. We had a vendor who would come to NNL East who had the big wall of amazing delights with huge numbers on them. Guys would actually come to our show staff complaining that we needed to "make him sell at reasonable prices". And at the end of every show we'd see guys with some of those models... I'd ask and they'd say things like, "Yea I finally broke down and spent $350 on that kit I'd been looking for years for!" Soooo.... if that vendor marked those kits down to bargain prices, he'd sell them all at one show. Then how would he replace that wall of kits? Assortments like that don't grow on trees, they are built over time. So if he sold them all at $10 profit each, he'd be out of business, and make maybe $2000. BUT, if he sold 10 kits each show at a $200 each profit, he'd make the same $2000 and then it would be a reasonable task to find another 10 great old kits to sell to fill the holes in the wall. Does that make sense to you? Edited April 14, 2015 by Tom Geiger Quote Link to comment Share on other sites More sharing options...
mikemodeler Posted April 14, 2015 Share Posted April 14, 2015 Um no! You have it completely backwards. We had a vendor who would come to NNL East who had the big wall of amazing delights with huge numbers on them. Guys would actually come to our show staff complaining that we needed to "make him sell at reasonable prices". And at the end of every show we'd see guys with some of those models... I'd ask and they'd say things like, "Yea I finally broke down and spent $350 on that kit I'd been looking for years for!" Soooo.... if that vendor marked those kits down to bargain prices, he'd sell them all at one show. Then how would he replace that wall of kits? Assortments like that don't grow on trees, they are built over time. So if he sold them all at $10 profit each, he'd be out of business, and make maybe $2000. BUT, if he sold 10 kits each show at a $200 each profit, he'd make the same $2000 and then it would be a reasonable task to find another 10 great old kits to sell to fill the holes in the wall. Does that make sense to you? Makes sense Tom but where I will disagree is the guy that has current releases priced at what one can buy them at the LHS or a Hobby Lobby/Michaels before the discount coupon. In the 10 years I have lived in the NC area, I have gone to many shows only to see the same guys with the same kits. I might have ticked them off at a show 2 years ago when I was selling my kits for $12 while he had his priced at $20 & up. I was motivated to raise some cash and clear out space while his motivation had to be entirely different. Whatever the case may be, we all look at the hobby differently. Many of the kits I have plans to sell or have sold were bought with the best of intentions and most likely at a discount (closeout or coupon), but I have resigned myself to only buying kits from now on that I KNOW I will build! Quote Link to comment Share on other sites More sharing options...
Tom Geiger Posted April 14, 2015 Share Posted April 14, 2015 Mike I was only speaking of the guys with valuable collectors kits. The $100 plus ones. The retail / new or recent kit market is a completely different thing. There are some pretty astute dealers working the NY/NJ/PA shows I attend. You can buy kits around $10 less than hobby store prices. That's because they buy kits in large quantities directly from Revell and Round 2. So they've bought at the lowest possible price. Then some local hobby shop decides to vend at your show. They come in with their kits marked at that full $27 retail. Why? Because they have bought their kits through a distributor. Their kits have been through an extra set of hands, that has taken a profit. I had one hobby shop guy tell me the other vendors are selling kits for what he pays for them. So why doesn't Mr hobby shop buy direct? Volume. A distributor will sell kits per one to a hobby shop. I know of one shop that takes two of every new release from one distributor. They don't buy enough kits to have the volume needed to buy direct. Quote Link to comment Share on other sites More sharing options...
vamach1 Posted April 14, 2015 Share Posted April 14, 2015 Um no! You have it completely backwards. We had a vendor who would come to NNL East who had the big wall of amazing delights with huge numbers on them. Guys would actually come to our show staff complaining that we needed to "make him sell at reasonable prices". And at the end of every show we'd see guys with some of those models... I'd ask and they'd say things like, "Yea I finally broke down and spent $350 on that kit I'd been looking for years for!" Soooo.... if that vendor marked those kits down to bargain prices, he'd sell them all at one show. Then how would he replace that wall of kits? Assortments like that don't grow on trees, they are built over time. So if he sold them all at $10 profit each, he'd be out of business, and make maybe $2000. BUT, if he sold 10 kits each show at a $200 each profit, he'd make the same $2000 and then it would be a reasonable task to find another 10 great old kits to sell to fill the holes in the wall. Does that make sense to you? I don't expect him to sell them for $10 over his cost but clearly it's robbery charging hundreds of dollars. If those kits were that valuable they should sell a lot faster and at a fair price with millions of potential buyers on-line - not just a few hundred people at a show. I've sold a few "rare" kits on-line and I thought the bidding went higher than I expected but no one was throwing $200 into my Paypal account either. It just seems like me a REALLY slow way to make a buck with a lot of room needed to store the kits and schlep them from show to show and put them and pack them up again and again. If someone isn't happy with a reasonable profit then I just would not buy them even if it was the last kit in the world. Search on Ebay and you are bound to find someone out there selling what you cannot live without. The only other explanation for a lack of supply is there are other dealers out there refusing to sell on-line so people pay the man or go home feeling like that rare kit got way that someone else will buy. Chances are the kits will still be there next year. Quote Link to comment Share on other sites More sharing options...
southpier Posted April 14, 2015 Share Posted April 14, 2015 as with everything, there's a Buyer's Price and a Seller's Price. value comes in a variety of forms. Quote Link to comment Share on other sites More sharing options...
gtx6970 Posted April 14, 2015 Share Posted April 14, 2015 Chances are a reseller of collector kits IS selling online . Setting up at a show / swap meet is just a secondary approach. You would be suprised at how many buyers would much rather pick ip up a look it over before paying out several hundreds of dollars on a single kit ( mself included ) As far as HOW much profit he makes,,,,,, is somewhere in between his hope to get price and his buyers willing to pay price. Quote Link to comment Share on other sites More sharing options...
vamach1 Posted April 14, 2015 Share Posted April 14, 2015 10% a year turnover rate (that's 40 kits if you have 400) it will take ten years to sell them all. For some reason we all think we have ten years or more to live because I see a lot of people with 400 old kits for sale. On a related note - I bought some diecast models (about 30 mostly FM and Danbury Mint) for about $20 each through an auction. The guy had a collection of hundreds and I assume the heirs did not know the true value and let an auction company sell them on the cheap. This happens quite often so build those models or pare down your collection when you know your days are numbered, otherwise your collection might be sold off for pennies on the dollar. Quote Link to comment Share on other sites More sharing options...
Tom Geiger Posted April 15, 2015 Share Posted April 15, 2015 I don't expect him to sell them for $10 over his cost but clearly it's robbery charging hundreds of dollars. I bought some diecast models (about 30 mostly FM and Danbury Mint) for about $20 each through an auction. The guy had a collection of hundreds and I assume the heirs did not know the true value and let an auction company sell them on the cheap. You can't have it both ways! Quote Link to comment Share on other sites More sharing options...
vamach1 Posted April 15, 2015 Share Posted April 15, 2015 (edited) You can't have it both ways! That was a once in a blue moon opportunity for me anyway. I sold the less desirable duplicates to break even and ended up with several models to add to my collection. I'll just tell my family not to sell them for $20 when I'm gone. Edited April 15, 2015 by vamach1 Quote Link to comment Share on other sites More sharing options...
oneescalante Posted April 15, 2015 Share Posted April 15, 2015 $19 will not buy them? Quote Link to comment Share on other sites More sharing options...
JohnU Posted April 15, 2015 Share Posted April 15, 2015 And when you're gone, what dose it matter to you anyway? I left instructions to my wife to call a good modeling friend of mine to buy up my collection. Even if he doesn't pay up top dollar for my "rare" ones at least they won't get thrown away. Which she might have a mind to do anyway! LOL! Quote Link to comment Share on other sites More sharing options...
vamach1 Posted April 15, 2015 Share Posted April 15, 2015 $19 will not buy them? Given that most 1/24 FM and DM diecast used to retail for $120 and up, probably not. The value of plastic kits is purely market driven (supply and demand). With diecast models - the prices have not gotten out of hand yet but limited editions can get pricey. Here are some recent examples (Ebay sales): Boss 351 DM $98 to $180. 71 429 Mach1 DM $180 to $279 A few Bosses sold for less than original retail but most sold for more. Quote Link to comment Share on other sites More sharing options...
Tom Geiger Posted April 15, 2015 Share Posted April 15, 2015 I was looking at Danbury and Franklin Mint cars on the 'bay recently. There are a lot of "Buy It Now"s a outrageous prices. Then the same car for $60. I did notice that the later Danbury hot rods were all pulling a decent buck. Since all of them are out of print at this point, prices may edge upward. On the other hand, the tooling from both companies was confiscated by the Chinese government from the company that manufactured both lines plus some other companies products. Fear is that cheap product produced from that tooling may hit the market in the future. Quote Link to comment Share on other sites More sharing options...
Harry P. Posted April 15, 2015 Share Posted April 15, 2015 Fear is that cheap product produced from that tooling may hit the market in the future. Fear??? To me, "cheap" Franklin and Danbury knockoffs would be a great thing! Quote Link to comment Share on other sites More sharing options...
Deano Posted April 15, 2015 Share Posted April 15, 2015 Fear??? To me, "cheap" Franklin and Danbury knockoffs would be a great thing! Even if the tooling was, in effect, stolen? Quote Link to comment Share on other sites More sharing options...
gtx6970 Posted April 16, 2015 Share Posted April 16, 2015 Fear??? To me, "cheap" Franklin and Danbury knockoffs would be a great thing! I doubt, you would feel that way if it was YOUR companies tooling that YOUR company paid for that was being used to make said knockoffs without YOUR company was being compensated for there use Quote Link to comment Share on other sites More sharing options...
Tom Geiger Posted April 16, 2015 Share Posted April 16, 2015 Fear??? To me, "cheap" Franklin and Danbury knockoffs would be a great thing! Even if the tooling was, in effect, stolen? Mmmm, no, not a good thing at all. It would basically show that all tooling in China, some of which we know and love, is at risk. Quote Link to comment Share on other sites More sharing options...
vamach1 Posted April 16, 2015 Share Posted April 16, 2015 (edited) Fear??? To me, "cheap" Franklin and Danbury knockoffs would be a great thing! Yeah - I'd welcome that just to get my hands on some of the unique parts. Like it or not the quality and accuracy of the many diecast Mustangs I have purchased put plastic kits to shame. I don't think we can throw too many stones when I doubt that most people that make a resin copy of a plastic or diecast model or parts got permission from either the model company or the car company. Of course it's not a good thing when a government starts taking copyrighted property but it does not surprise me. Edited April 16, 2015 by vamach1 Quote Link to comment Share on other sites More sharing options...
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