Baseball Card Flipping Project – Part 12 : Entrepreneur

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Hey guys!Geez, it has been well over a month since my last update. A lot has happened and a lot has sold.A Look Back at 2019I wrote the first part on January 21, 2019 – almost a year ago to the day. Since then, I took $1,165 and was able to flip it into a final profit of $9,262.28. I sold over $40k worth of baseball and sports cards, and (between eBay fees, inventory purchases, supplies and PSA fees) spent around $42k. I have over $10k of inventory currently. My final gross margin was 43.8% and my final net margin was 23.1%. This was one of the most fun things I have done in this hobby in a while, I very much look forward to continuing in 2020.You can find the previous installment hereA really really really brief recap of the past eleven partsI started in December of 2018 with $1,165. I have since bought and sold over $40k in baseball, football and various sports trading cards. I have had a few great successes ($1,165 into $3,085 before fees – $2,771.20 into $6,200.10 before fees – $1,086.68 into $3,190.54 before fees) and a few duds. I generally sell my cards on ebay, but utilize auction houses every now and then. The biggest bottleneck I face is submitting cards to PSA (a third party grading company), a card might have a 2-4 month turnaround time. To successfully “flip” you need to balance some of these purchases with shorter flips. Right now I have approximately 80% of my inventory with PSA (WHICH IS WAY TOO HIGH).PurchasedThere are usually some late December auctions each year, but generally the holidays are quiet in the baseball card industry. I was able to purchase a few lots from what auctions I found:I bought two multi-year lots from Heritage in late December – the first here and the second here. In total I spent $1,934.95 on the two groups. I am taking a bit of a risk on these, not because I don’t believe I will make money (I should), but because I am sending so many of the cards to PSA. This will likely tie up these funds for 3-4 months (more on that later) and adds an additional cost to the group. I sent 52 cards from these groups to PSA (totaling $542.51). I think there is a lot of mid-grade star power and several cards in the $100-200 range. I am going to auction off the non-graded cards soon and try to recoup some of the funds. I will keep everyone updated on that.I bought another multi-year lot, this one completely made of Yogi Berra cards. I spent $1,452.17 with fees and shipping. The same as above, most of these cards (22) are with PSA right now. This ties up a significant portion of the group and I will need to wait before I can sell these. There are a few cards that I kept, the two signed cards – one I sold for $80.00. The other signed card is listed and the others will be auctioned off.What SoldI sold the deckle edge cards that I was holding on for a while. They did okay totaling $122.71 via auction. That brought the final tally for the lot to a $66.91 profit after fees. Not terrible.The last of the PSA graded cards from the multi-sport group I purchased from Goldin Auctions sold. The final price was $120.85. This brought the final profit on the group to $795.86 after fees. I’m very happy about this result, PSA graded cards are a very quick and easy turnaround.I sold a few more items from the other multi-sport collection I bought from Goldin. Everything that has not been sent to PSA is now sold – the total of the ungraded cards came to $178.10, led by this Clemente for $37.77. The remaining cards that are with PSA I have valued at $500 on the tracker. I think that is very conservative, the 1957 Hornung rookie, the 1972 Julius Erving rookie and the Tiger Woods rookie should come out to a combine $400-500 alone.Wrappers! I sold $847.00 worth of wrappers in the past few weeks and still have $2,683.45 listed. Those $2.6k in wrappers will likely only bring a fraction of that depending on how patient I am. These wrappers were in much worse condition than I anticipated, but there was enough quality to turn a profit. Wrappers rarely do well in auction, so I am going to try to keep these listed for another month or so before I reconsider my approach.From that multi-sport group I purchased from Huggins and Scott, a few cards were sold last night, led by the 1969 Joe Namath. I sent a few of the cards to PSA, I sent the 1978 packs to PSA, I opened the 2003 Ultra Basketball blaster (because it wasn’t sealed and I was bored) and will try to list the remaining items soon. I am predicting to come out ahead, but it’s too early to tell, so I am keeping the tracker at a slight loss.The Parkhurst cards! Those cards are BEAUTIFUL. I sent 30 of them to PSA, and unless they are altered or something, I expect good grades on them. I did sell one of the graded cards last night, one of the checklists sold for $135.50. I sent the other graded cards to PWCC to sell (let’s see if they can do better). The cards that were not sent to PSA will be auctioned off next week.I sold the graded Mickey Mantle cards from that REA auction that I won. The total of those seven cards came out to $1,236.91. I should do very well on this group, I think that the remaining cards I sent to PSA have a conservative value of $1,500-$1,800. I put in $1,000 in the tracker just to be safe. Depending on how they grade I might keep a card (more on that later).PSA UpdateHere is a link to the Google Doc with the status of all of my PSA cards. The spreadsheet also includes a summary of where the project is.There has been absolutely no movement since the last installment. To those unfamiliar, PSA is my bottleneck. Grading has a 2-4 month turnaround, so cards that I sent in December I may not see again until April or May. Right now, I have ONE HUNDRED AND SEVENTY cards with them. By value, it represents maybe 70-80% of my inventory, it is very frustrating. Hopefully I will see some movement soon though. One thing that is changing is how I account for PSA fees. PSA does not charge my credit card until AFTER the order is finished – previously, I would credit my cash balance on the P&L as soon as I send the cards to PSA. Now, because the amount is material to the project, I am representing the balance as “Accounts Payable,” but still hitting my expense. This way, I can still use the cash while PSA grades my order. Obviously, I will need to be careful about this and to leave myself plenty of wiggle room (which I’m not too worried about).So, to update the summary:ItemCostSoldFeesInventory^Profit1972 Kellogg’s Set$1,165.00$3,085.64($462.85)$1,457.791960’s Mantle Postcards$27.99$82.55($12.38)$42.181966 Topps Lot$20.50$46.00($6.90)$18.601967 Vene. Topps Mantle$432.80$825.00($123.75)$268.451960’s Insert Lot$420.00$1,004.88($150.73)$434.151960’s Empty Boxes$645.00$1,914.60($287.19)$982.411956 Adventure Gum Set$956.13$1,405.40($210.81)$238.461961 Golden Press Set$3,451.20$3,956.15($593.42)($88.47)1957 Topps Partial Set$122.01$190.01($28.50)$39.501909-Modern “Grab-Bag”$796.00$1,092.83($163.92)$132.911936 Goudey R314 Lot*$288.00$714.55($107.18)$50.00$369.371969-1973 Topps Yankees Lot$2,771.20$6,200.10($930.02)$2,498.89Hank Aaron “Odd-Ball” Collection*$1,086.68$3,190.54($478.58)$150.00$1,775.28Pre-WWII card lot w/ Cobb & Mathewson*$1,882.55$467.75($70.16)$1,300.00($184.96)N154 Duke Presidential BB Club Pair$390.20$675.00($33.75)$251.051934-36 Batter Up Low Number (1-80) Complete Set$1,437.81$2,120.35($318.05)$364.49(23) Sandy Koufax 1950’s and 1960’s card lot*$869.601,315.00($197.25)$250.00$498.151934 Goudey “Big League Chewing Gum” Wrappers Trio$84.00$74.51($11.18)($20.67)1977-1979 Topps Baseball Rack & Cello Packs (6)*$1,090.00$923.00($138.45)$250.00($55.45)Perez-Steele “Great Moments” set w/ 28 signed$570.00$727.49($109.12)$48.37Perez-Steele “Great Moments” set w/ 42 signed$720.00$1,104.52($165.68)$218.841952 Bowman Football Small Signed Lot (38)$1,140.00$2,243.51($336.53)$766.981961-62 Fleer Basketball Oscar Robertson Signed Lot (2)$690.00$886.06($132.91)$63.151969 Topps & Deckle Edge Baseball lot w/ PSA graded$276.00$403.44($60.52)$66.92(5) 1961 Topps Magic Rub-Offs PSA Graded Lot$112.72$371.01(55.65)$202.641957 Swift Meats Baseball Game Complete Set (18)*$800.00$800.00(41) 1933-2001 Multi-Sports PSA-Graded Collection$960.00$2,065.72($309.86)$795.86(36) 1950s-2000s Multi-Sports Collection*$900.00$488.93($73.34)$500.00$15.591933-1989 Multi-Sport Wax Pack Wrapper Hoard of (650)*$980.00$847.00($127.05)$400.00$139.951941-2004 Multi-Sport Treasure Chest (33)*$1,100.00$289.20($43.38)$800.00($54.18)1912 B18 Blanket Find (100)*$1,270.80$1,270.801962-63 Parkhurst Hockey Collection (45+)*$545.40$135.50($20.33)$500.00$69.781953 to 1969 Mickey Mantle Group (16)*$1,800.00$1,236.91($185.54)$1,000.00$251.371956-1959 Topps and Fleer Baseball Collection (48)*$1,130.00$1,130.001961-1969 Baseball Collection (61)*$804.95$804.951948-1965 Yogi Berra Collection (26)*$1,452.17$80.00($12.00)$1,400.00$15.83$33,188.71$40,163.15($5,956.97)$10,605.75$11,623.22*-denotes inventory still on hand (see below).^ -inventory on hand is valued at a conservative estimate of fair market value for remaining items.`-grading fees are expensed when the card is sent to PSA, fees are not paid until PSA has completed the order. Fees that are expensed, but not paid are sitting in Accounts Payable below.Grading Fees`: $2,360.93Current On HandCash: $1,680.15Inventory1936 Goudey Al Simmons (at PSA)1936 Goudey Gabby Hartnett (at PSA)1972 Topps Cloth Hank Aaron (at PSA)1968 Kahn’s Wieners Hank Aaron Large-Batting Pose (at PSA)1968 Topps Action All-Star Stickers 10 Hank Aaron (at PSA)1962 Topps Bucks Hank Aaron (at PSA)1970 Topps Super 24 Henry Aaron (at PSA)1971 Topps Super 44 Hank Aaron (at PSA)9 Pre-WWII cards from lot (at PSA)1909-11 American Caramel Co. E90-1 Ty Cobb (w/ PWCC)1964 Topps Photo Tatoos Sandy Koufax Diagonal Band (at PSA)1965 Topps Transfers Sandy Koufax (at PSA)1963 Fleer 42 Sandy Koufax (at PSA)1963 Exhibits Statistic Back Sandy Koufax (at PSA)1964 Topps Giants 3 Sandy Koufax (at PSA)1966 L.A. Dodgers Postcards 67392 Sandy Koufax (at PSA)1979 Topps Baseball Cello Packs (2) (at PSA)1957 Swift Meats Baseball Game Complete Set (18) (in hand)(36) 1950s-2000s Multi-Sports Collection (15 at PSA, 21 sold)1933-1989 Multi-Sport Wax Pack Wrapper Hoard of (650+) (many sold, many listed)1941-2004 Multi-Sport Treasure Chest (33) (4 sold, 15 with PSA, the rest in hand)1912 B18 Blanket Find (100) (in hand)1962-63 Parkhurst Hockey Collection (45+) (1 sold, 3 to PWCC, 30 to PSA, the rest in hand)1953 to 1969 Mickey Mantle Group (16) (7 sold, 9 at PSA)1956-1959 Topps and Fleer Baseball Collection (48) (29 to PSA, the rest in hand)1961-1969 Topps, Fleer and Post Cereal Baseball Collection (61) (25 to PSA, the rest in hand)1948-1965 Yogi Berra Collection (26) (1 sold, 1 listed, 22 to PSA, the rest in hand)ALSO! If anyone is interested in what the financials for this project would look like:As of 1/23/2020AmountCash$1,680.15Accounts Receivable$-Inventory^$10,605.75Accounts Payable`($1,858.62)Initial Capital($1,165.00)Revenue($40,163.15)Cost of Goods Sold$22,582.96Fees (15% of Rev.)$5,956.97PSA Fees$2,360.93I am looking forward to continuing this project in 2020, my official goal is $20,000 profit. Wish me luck!I look forward to continuing to update everyone on this. Hope you enjoy as much as I do.Jason

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