jake33
09-19-2012, 10:55 AM
I have thought the following point for a while, and was wonderign what others views are....
Obviously when auctions go through on NFL or MLB's auction website, a lot of items go for over market value. That isn't anything new to most of us active collector's. I know some people who are not regular collectors rise the value of items out of nowhere. For example -- when the NFL auctioned off the 9.11 tribute jerseys last year and ran voice promos in every NFL game, we all knew the prices would get to outrageous at times, especially in the early auctions.
With that market of the overpaying indivuals well know, do you also think card companies bid on some of those same auctions? When i see $5,000 for a regular Evan Longoria jersey, I just do not know what individual would seriously buy that at that amount.
Companies buying and bidding against individuals can be a little annoying on a couple fronts. From my years in business and seeing a lot of contracts this is what I don't like
1) Business $$ is different than personal $$. A company buying a jersey to make into jersey cards has an business expense to work with. They can claim losses off the item. Also, card companies have to pay royalties to MLB for licensing and production of a card. Depending on the contract, it could be worked into pricing.
2) Credit. NFL and MLB auctions have a specific credit card. Many companies have excellent credit rewards programs, or longer payment terms than an individual. I am not someone who has debt or lives on credit, but I know a signficant number of people are able to get a purchase only because of their ability to put it on a credit card. For example, I used to work for a national retail company. 71% of our in-store transactions were via credit card. I was told througha friend at a credit card company, roughly only 61% of those similar category transactions were paid on time, hence avoiding fees.
3) Overall market value is skewed. Have you ever tried to re-sell something and said "I paid $400 for it on NFL auctions" and it obviously has an influence on your re-sale price on how much profit or loss you want to take.
4) One sale to a major company, damages asking prices, sell prices. It is really just a cycle, many of us are aware of. I won't name any specific game used company by name here. But, one time I spoke to an owner of a game used sports company and he/she told me that the almost all their initial posted asking prices were because card companies and/or organizations would call them, then ask the price, then just do a yes or now. That happened maybe on 5-10% of their total inventory. Wow, no haggle? No negotiation, just a straight ask and sell. It is too easy and too profitable to do. Then the rest of inventory can just be marked up to mark down.
I don't think this will ever stop of slow down unless a signifcant event happens, that would have to be on par with the magnitude of MLB steriod issues becoming public in the last decade. But I think all of us should be aware that dollar for dollar our individual personal dollar is the the same dollar that is in a corporation's.
This isn't made to be a political undertone, but jsut something to think about as a bidder and collector.
Obviously when auctions go through on NFL or MLB's auction website, a lot of items go for over market value. That isn't anything new to most of us active collector's. I know some people who are not regular collectors rise the value of items out of nowhere. For example -- when the NFL auctioned off the 9.11 tribute jerseys last year and ran voice promos in every NFL game, we all knew the prices would get to outrageous at times, especially in the early auctions.
With that market of the overpaying indivuals well know, do you also think card companies bid on some of those same auctions? When i see $5,000 for a regular Evan Longoria jersey, I just do not know what individual would seriously buy that at that amount.
Companies buying and bidding against individuals can be a little annoying on a couple fronts. From my years in business and seeing a lot of contracts this is what I don't like
1) Business $$ is different than personal $$. A company buying a jersey to make into jersey cards has an business expense to work with. They can claim losses off the item. Also, card companies have to pay royalties to MLB for licensing and production of a card. Depending on the contract, it could be worked into pricing.
2) Credit. NFL and MLB auctions have a specific credit card. Many companies have excellent credit rewards programs, or longer payment terms than an individual. I am not someone who has debt or lives on credit, but I know a signficant number of people are able to get a purchase only because of their ability to put it on a credit card. For example, I used to work for a national retail company. 71% of our in-store transactions were via credit card. I was told througha friend at a credit card company, roughly only 61% of those similar category transactions were paid on time, hence avoiding fees.
3) Overall market value is skewed. Have you ever tried to re-sell something and said "I paid $400 for it on NFL auctions" and it obviously has an influence on your re-sale price on how much profit or loss you want to take.
4) One sale to a major company, damages asking prices, sell prices. It is really just a cycle, many of us are aware of. I won't name any specific game used company by name here. But, one time I spoke to an owner of a game used sports company and he/she told me that the almost all their initial posted asking prices were because card companies and/or organizations would call them, then ask the price, then just do a yes or now. That happened maybe on 5-10% of their total inventory. Wow, no haggle? No negotiation, just a straight ask and sell. It is too easy and too profitable to do. Then the rest of inventory can just be marked up to mark down.
I don't think this will ever stop of slow down unless a signifcant event happens, that would have to be on par with the magnitude of MLB steriod issues becoming public in the last decade. But I think all of us should be aware that dollar for dollar our individual personal dollar is the the same dollar that is in a corporation's.
This isn't made to be a political undertone, but jsut something to think about as a bidder and collector.