Sunday, January 23, 2011

There is no longer a market for collectables...

...there are individual collectibles that sell in the market.


My store has slowly transitioned away from being a "collector's" store with collector pricing, to a store that sells everything for the original retail price. (Exceptions would be singles -- comics, cards, that have to recoup their cost of opening, or cover the cost of storing and displaying -- but even here, it's rare that anything is priced very high.)

"Collecting is what happens after the product leaves the store," is what I've been telling people.

It's my belief that the internet has flattened the prices for most collectibles.

Imagine if you will, 20 years ago, someone had been searching for a long time for a particular toy, and he finds it in a 'collector's' store. He would've known that he might never again see that toy, and would've paid a premium for it.

Now? He can go online, and there will be more than one person selling that item -- and because there is more than one, there will be some pricing competition.

I think, in fact, there is no longer a "Market" for most collectibles I used to carry: toys, cards, comics, books, games, whatever. There are individual items that people are looking for, but usually it's only the hardest to get, and the most rare, and probably the highest priced.

There just aren't enough of those to go around.

If, for instance, the only sportscards that will sell are Mickey Mantle cards, in fine or mint condition -- well, only a few stores are going to have the wherewithall to carry those.

A "Market" implies a broader range of material selling: high price, low price, medium price. Rare, Uncommon and Common. There is a synergy to the process -- selling old cards (comics, books, toys, etc.) helps sell new cards helps sell supplies helps sell price guides, etc. etc.

Unfortunately, if you take away too many parts -- like selling boxes and packs of cards cheaply at Walmart -- then the singles market no longer functions, either.


I have to tell you, I'm totally O.K. with all this. I really want to sell product for the original reason anyone ever bought anything -- because they enjoy it. They read the comics, they collect the cards, they play with the toys -- because that pleasure will always be there.

In fact, selling a toy that will never be opened is --- anti-toy. Selling a comic that will be slabbed in a "Graded" sleeve -- is anti-comic/anti-reading.

And I'm happy to no longer have to justify, to explain, why my prices might be different than what it originally was. There is a liberation in being able to say to folk: "We charge retail. The Suggested Retail Price." Most customers instinctively know what I'm saying and they either accept it or they don't; but it doesn't require anymore explanation than that.

Like I said, this doesn't have to keep people from collecting: after they leave the store. I'm just no longer part of that world.

8 comments:

RDC said...

Basically what you are saying is that the ability to sell collectables at a higher price was due to the inefficiencies in the market created by inventory obscurity. The internet is removing those inefficiencies by making product inventories/product for sale visible.

Improved efficiency in a market always squeezes prices.

Duncan McGeary said...

Selectively efficient.

A "hobby" and "collecting" has, as part of the overall fabric, less efficient aspects, which stripped away rob them of their cohesion.

Duncan McGeary said...

I'm feeling my way on these thoughts -- there's a deeper truth here if I can but see it.

Kind of like bookstores versus the buying of a book.

It's not JUST about the efficiency of buying a book: it's the experience, the visual, tactile, feel, the smells, the sounds, the shopping and talking and being surrounded by the physical presence of books.

But if you take away the 20% of customers who just don't give a damn and want a particular book without all the rest, maybe the rest can't survive in all is messy inefficient love of books (and games and toys and comics and sports cards...)

Duncan McGeary said...

I totally made up that 20% number...hah.

But, you know, if it's anywhere north of 10%, there are going to be a whole lot of dying bookstores...

Viking Troutslapper said...

I just spent all weekend wondering what the hell happened to toy values, spawn and marvel legends figures. Then I remembered, ebay happened. It's complete shame it has happened but it works out for anyone who missed out on a certain figure. On the other hand why are all my Star Wars figures in their packaging? I really don't know. Maybe one day I'll free Lando from his plastic prison.

Duncan McGeary said...

Thinking about it some more:

Part of collecting is the thrill of the hunt.

If you can just find it any old time and buy it, well -- anyone can do that!

It's having that complete collection, or hard to get elements, that make it fun.

If everything is available at any time, what's the point?

JDOE said...

Don't the successful book stores and hobby shops put much of their inventory online while maintaining a physical storefront? Doesn't that help with selling more, especially hard to move inventory, and increase your customer base?

I'm sure that's over-simplified. I know an online store costs additional money and time. All I have is management and sales experience, but I don't know anything about starting a business or everything involved with overhead, taxes, insurance, etc. That's partially why I'm here asking these mundane questions.

Here's another one, if you don't mind:

How do you decide what inventory to purchase? I read in another of your posts about you trying to time the market on different collectibles, and I wondered how shop owners determine which products they want to buy and how much of it is a crapshoot.

I'm interested in opening a store in the distant future- sort of a semi-retirement thing. Right now, all signs are pointing towards me simply opening an online store, but I really like the idea of having my own physical storefront and talking with real live collectors on a daily basis.

Nice blog, by the way!

Duncan McGeary said...

Jake, I answered you by mistake in the comments of the next entry.