Wholesale Margins?

[JK8283]

Hey guys, not sure if this is the right area for this, but wondering if anybody out there has a perspective on the types of margins various folks in the industry make on cards. There's 1) the card manufacturer, 2) the wholesaler, and 3) the LCS/retail/online. Mostly interested in what type of markup there is on #2/3 and what type of margin they're getting on a new product that sells at SRP.

Sorry again if this isn't the right area - I'm a bball collector so this is where I've been spending most of my time... Couldn't find much on an online search.

[Frankp2311]

A product that sells for $90 at an LCS will generally be about $74 from a distributor and $66 factory direct for example.

[go_steelers07]

rarely do products sell for MSRP out of the gate.

[cruiserdaddy7]

Not the right sport, but should help you out. Factory direct on Topps Tier 1 is $68. My wholesale distributor charged me $73 per box for a case or more. 7-10% over direct cost seems to be the norm. Considering the large percentage of below cost products in basketball there is no need for it. The sport was brutal before the lockout, and will be even worse after. Panini being the only game in town ruins any chance of basketball getting hot.

[Qwasian]

not to mention panini always uses a bunch of crap jerseys and autos......lol........

I must have pulled a million troy murphy jersey cards and andre bargnani jersey cards......

always a bunch of crap players nobody likes.

[cruiserdaddy7]

Originally Posted by Qwasian

not to mention panini always uses a bunch of crap jerseys and autos......lol........

I must have pulled a million troy murphy jersey cards and andre bargnani jersey cards......

always a bunch of crap players nobody likes.

Dont forget Steph Curry and Brandon Jennings being case hits in 10-11 products! What a joke that was.

[crazymj]

Originally Posted by cruiserdaddy7

Dont forget Steph Curry and Brandon Jennings being case hits in 10-11 products! What a joke that was.

brandon jennings can be one of the next generations of all stars.

[JK8283]

Originally Posted by cruiserdaddy7

Not the right sport, but should help you out. Factory direct on Topps Tier 1 is $68. My wholesale distributor charged me $73 per box for a case or more. 7-10% over direct cost seems to be the norm. Considering the large percentage of below cost products in basketball there is no need for it. The sport was brutal before the lockout, and will be even worse after. Panini being the only game in town ruins any chance of basketball getting hot.

Originally Posted by Frankp2311

A product that sells for $90 at an LCS will generally be about $74 from a distributor and $66 factory direct for example.

Originally Posted by go_steelers07

rarely do products sell for MSRP out of the gate.

Thanks to everybody for all the info. So last question, when you get to the point in time where things like Panini, Panini Adrenalyn, UD Retail, etc. are now selling sometimes for 80% off MSRP, is it the distributors that are pushing all this inventory and therefore taking a huge hit? Or is it the manufacturers just looking to eek out a small profit on their last remaining product (assuming the xx,xxx box or case costs almost nothing to produce)? Suspect it's the latter.

Anyways, agree with a couple of folks here that the Panini monopoly on NBA stuff is a total drag. Just coming back to the hobby from the mid-90's and it's sad how things have developed. Definitely a big strategic blunder on the part of the NBA - more dollars in the short-term will ultimately hurt the category in the long-term (and already has). Probably peanuts compared to ticket sales, tv rights, etc., but that makes it even worse that they made a deal solely to make a few extra bucks in cards.

[go_steelers07]

it's rare that a company makes "extra" product to hold onto and sell later. most distributors dump the product below cost just to move inventory because they know it most likely will not recover.