JO Sports adding teams in 2010?

[Jules9]

Re: JO Sports adding teams in 2010?

My comparison was more about how much a car depreciates when it's driven off the lot to how much a jersey depriciates when it leaves the dealers website. I collect mostly hockey jerseys so maybe it's different for football and baseball.

A 2010 Winter Classic hockey jersey originally priced at $2995 just sold on Ebay for $1300, before ebay fees. The buyer lost over 50% in less than 2 months.

I purchased a jersey, that was originally listed for $3995 on a dealers website. The jersey went to auction a year later and I bought it for $700. Over an 80% difference in price from what the dealer listed it for and the original purchaser may have purchased it for $1997.50 but I don't know that for sure.

Try buying a new car and see if you get your full purchase price when you go to sell it.

We don't know what the contract structure is between the teams and dealers but I'm sure the dealers bank on the "have to have it mentality" from collectors to sell items so they get there initial investment back.

[sportscentury]

Re: JO Sports adding teams in 2010?

Don't you think that a car has more resale value than a game used item does.I just think that cars (and i mean like show cars like barret jackson type) hold thier resale values more than game used items do.What are your thoughts about it.I think you really can not compare them.I mean if i had a 57 chevy,i bet i could sell that for a great resale value and is never going to go down in value.Where the same game used item from the era no matter the player could go up and down in value and might not be as high as you paid for it.But i dont think you ever take a lost on the car.

Joba, are you feeling okay?

[TriplexXxSports]

Re: JO Sports adding teams in 2010?

[quote=34swtns;195531]Precisely. I know they'd get much more of my business using that strategy.

Mine as well.

As I stated earlier, I own 3 JO pieces, but that doesn't mean that I got all 3 from JO, at their prices.

I have eyed a dozen or so jerseys on that site, but never pulled the trigger because the prices.

Like SportsCentury brought up - more power to the people that can afford that type of financial blow, and kudos to JO if they can get that kind of cash for them. But, I for one, wait for them in 2nd hand market, and 90% of the time that's where they end up...for hundreds, if not thousands, less.

[34swtns]

Re: JO Sports adding teams in 2010?

Price those lesser jerseys to sell, not sit. Make your money where you can on the high dollar/high demand items, and use that profit margin to work more with the common folk on the other 90% of your inventory.

Precisely. I know they'd get much more of my business using that strategy.

I'd be interested in knowing what the markup is on these items. You know on the "big boys" it's through the roof. On the little guys, it's still gotta be substantial.
So, the idea is don't go for the 100-200% markup on the small stuff so it'll actually sell in less than a year's time and make your big money on the big stuff. A 50% markup that's paid within 60 days beats the hell out of an anticipated 100% markup sitting on the shelf.

[TriplexXxSports]

Re: JO Sports adding teams in 2010?

..Alternatively, if you collect with the attitude that you are going to lose money anyway so why not pull the trigger on a high-priced item, then you are far, far less likely to do well.

Absolutely. In the context of JO's current price schemes, how many of us on here talking about this really feel this way?

I don't think that there are very many of us that have that type of disposable income that we can collect and not care about prices, or financial return, pending trade/resale at a later date.

I'm sure that this is one of the main reasons many of us do not pull the trigger at JO, rather wait for the jersey to hit second hand market.

Why take a loss if you do not need to, ya know.

[TriplexXxSports]

Re: JO Sports adding teams in 2010?

One reason I think that places like JO Sports can command the prices they do for players that are not stars is where else are you going to get them......

That is something that I feel is built into their prices. The fact that you cannot just get a jersey like the one's they have anywhere else.....They want their cut too.

I agree on your first point that some of these players jersey would never hit the open market if it weren't for JO, but most of the players are not collected by groups as a whole. These lesser known players are mostly collected by a select few and are never going to be a 'high demand item', yet they are priced that way.

....And tying into your second point about them wanting their cut, are we to assume that JO did not make their cut when they sold a Favre for $25K, or a Sanchez for $20K? Given, those are high demand players, but the way those jerseys were priced, I guarantee they made enough profit to lighten the load, so to speak, on the lesser known players. I'm sure that the money made on the 2 Favre jerseys that sold covered their contract with Minnesota and some!

As I mentioned in one of my previous statements, making the kind of coin they do on jerseys (like the Favre's) and then trying to sell these less desirable jerseys at such high cost, just seems greedy.

Price those lesser jerseys to sell, not sit. Make your money where you can on the high dollar/high demand items, and use that profit margin to work more with the common folk on the other 90% of your inventory.

Business 101 I heard tossed around - EXACTLY!

[jobathenut]

Re: JO Sports adding teams in 2010?

Sorry for going off topic.I just saw the post comparing to a car and you really can't do that.Again just my thoughts.

[jobathenut]

Re: JO Sports adding teams in 2010?

Don't you think that a car has more resale value than a game used item does.I just think that cars (and i mean like show cars like barret jackson type) hold thier resale values more than game used items do.What are your thoughts about it.I think you really can not compare them.I mean if i had a 57 chevy,i bet i could sell that for a great resale value and is never going to go down in value.Where the same game used item from the era no matter the player could go up and down in value and might not be as high as you paid for it.But i dont think you ever take a lost on the car.

[sportscentury]

Re: JO Sports adding teams in 2010?

Also, while I don't know for sure but I imagine JO and Meigray are not getting these jerseys for dirt cheap prices themselves. I believe they have to pay a nice fee to get these exclusive deals with these teams and that doesn't come cheap. Teams know this stuff sells so they are not just going to give this stuff away for pennies on the dollar. They want their cut too.

Absolutely. I don't think most collectors realize how costly these exclusive team contracts are.

[sportscentury]

Re: JO Sports adding teams in 2010?

I own a '73 Nova SS that rolled off the dealers floor at $3700. More than 37 years later I could flip that car for 3x that.

Congratulations, but I thought we were speaking in terms of general rules. This is, of course, an exception. 99% of the time that you buy a car, it is exactly as I stated. I'll say it again, if you are smart about your purchases, you have plenty of options in this hobby and can do well, even when you primarily buy from dealers. Alternatively, if you collect with the attitude that you are going to lose money anyway so why not pull the trigger on a high-priced item, then you are far, far less likely to do well. When buying a car, a smart purchase means something very different because (again, 99% of the time) the buyer understands going in that he is buying an instantly depreciating asset.

[Dewey2007]

Re: JO Sports adding teams in 2010?

One reason I think that places like JO Sports can command the prices they do for players that are not stars is where else are you going to get them. It's not like every GU dealer is selling them. If they were that readily avaiable then JO's prices wouldn't be what they are. For instance if someone wants a Garza or Abraham jersey for their collection where else are they going to get one that is legit and in many cases shows straight off the field wear? Not on eBay and not directly from the team. That is something that I feel is built into their prices. The fact that you cannot just get a jersey like the one's they have anywhere else.

Also, while I don't know for sure but I imagine JO and Meigray are not getting these jerseys for dirt cheap prices themselves. I believe they have to pay a nice fee to get these exclusive deals with these teams and that doesn't come cheap. Teams know this stuff sells so they are not just going to give this stuff away for pennies on the dollar. They want their cut too.

[TriplexXxSports]

Re: JO Sports adding teams in 2010?

......This comparison to car buying, for instance, is really fascinating. Personally, I'd be in the poor house if I used this approach, but more power to you guys!.

I own a '73 Nova SS that rolled off the dealers floor at $3700. More than 37 years later I could flip that car for 3x that.

Point being that "some", and I emphasize "SOME" players jerseys could fall into a select category that would return your investement had you have to sell/trade it in the future.

The big picture here is that 87% (my fair estimate) of JO's jerseys, or MeiGray's, or NFL.com's jersey will never return a dime. Most of the players that these guys are selling for well above their 'realistic' prices will never be remembered as a significant face of the sport, or hobby, therefore a poor investment. Regardless of your personal fascination with the player at your time of purchase.

So again I ask - why do these 2nd string, 3rd string, and dudes not even on the roster anymore command such high prices?

Using the car reference here - if someone was selling a mint green '68 Ford Pinto for $12,000.00 we would all say they seller was crazy, yet if they were selling a '65 Chevy II, or '69 Camaro LS6, or a '67 Shelby Cobra for $12000.00 we would all be talking about what a good price that was.

Very few players that these guys sell fall into the '67 Shelby category, so why would someone want to pay such a high cost for a players jersey? Urlacher, Peterson, Favre, Bush, Manning, etc., can command top dollar, but a Garza for $1500, or a Culpepper for $800, or John Abraham for $1500 - .......really?!

[bigben7]

Re: JO Sports adding teams in 2010?

If so hopefully their prices become a little more realistic.

Bottom line you get what you pay for. JO Sports charges a little more but you can me confident you are getting the real deal unlike some other companies.

[sportscentury]

Re: JO Sports adding teams in 2010?

Agree. You pay a premium to be the first owner of a jersey from a dealer like JO, Meigray, NFL.com ect. You know the jersey hasn't been messed with or worn by a collector, gets switched out ect. I prefer buying straight from the source. Just for that piece of mind. You can trust the dealers and know it is the real deal and you will get the jersey as expected. I know some people just don't like buying off Ebay. No matter how good the deal. People get burned on Ebay all the time.

I have purchased a good number of jerseys from MeiGray over the years, which is "buying straight from the source" as you say. I don't think there has been a single time when I have not been able to get my value back when I have gone to trade or sell the jerseys I've purchased from them.

I will say that this has been an interesting thread in that it has provided insight as to how some collectors rationalize their purchases. This comparison to car buying, for instance, is really fascinating. Personally, I'd be in the poor house if I used this approach, but more power to you guys!

.

[indyred]

Re: JO Sports adding teams in 2010?

Jerseys are like buying a car. Just because you paid $40,000 for a car 4 years ago doesn't mean it's still worth $40,000 if you went to sell it 4 years later.

When you buy a jersey from a dealer, it seams like the "value" drops 20-30 percent or basically ends up where it should of been priced to begin with, when it's purchased from them. Although some jerseys are the exception.....but not many.

Agree. You pay a premium to be the first owner of a jersey from a dealer like JO, Meigray, NFL.com ect. You know the jersey hasn't been messed with or worn by a collector, gets switched out ect. I prefer buying straight from the source. Just for that piece of mind. You can trust the dealers and know it is the real deal and you will get the jersey as expected. I know some people just don't like buying off Ebay. No matter how good the deal. People get burned on Ebay all the time.