Originally Posted by jr24ai3
If you are a dealer and pay $70 for a box, you would price it around $100 with a 40% markup. That is a profit of only $30 on a $100 sale (and this is not counting credit card processing/overhead/etc). $30 profit on a $100 sale really isn't that much. If you buy a box for $70, what would you price it at? If you price it any less that $90-$100 you will have a very tough time staying in business, especially if wax is a major part of your sales. If a $70 box was marked up to $120-$140, that may be a bit much. But 40% is far from a high markup.
When I owned Baseball Card Heaven in Las Vegas from 2003-2005, on brand new products we would be at 40-45% the day it came out, unless it was a product that was preselling much higher (like Bowman Chrome baseball products or SP Authentic and SPx football/hockey, anything Exquisite at that time). I would max out my case allotment on most products and I had customers knowing when products would hit and I would even call several of them the day it came out.
In those years all four producers had contracts (Upper Deck, Topps, Donruss, Fleer), so there were so many products out there (and many were bad) that the wholesale prices would often fall to half of what factory direct prices were within a few months. That is when I would bring many of those products back in and those I would generally charge a 60% markup (must have gone through 200 boxes of 2004 Leaf Limited baseball this way), sometimes a little bit more if I could get loose retail packs (killed it with 2004 Topps Traded and my customers still were doing great on it).
The main money I made in the Card Shop was by always willing to buy and trade, for literally just about anything, including junk 80's/90's stuff. At the right price I could find a buyer for everything. My card shop was organized with 10 cent boxes, $1 boxes, a display case with Jerseys and inserts that were 75% off book, and then of course nicely organized and displayed Vintage and modern display cases.
I think Upper Deck and Panini trying to give advantages to the LCS is a step in bringing the LCS back to life, and if this holds true I might be willing to open one up out here again in Vegas. I'm sure there are others out there who can see that this might be a good time to open one up also, which I would say could be done for as little as $10,000 (I opened mine up with about $20,000). If anyone has any interest in opening one feel free to PM me and I can tell you everything you need to know about opening one successfully.