Hi! Is there a golden rule of thumb for profitably buying and selling antiques and collectibles?
You bet there is, just buy low and sell high. Of course, there is a lot more to it than that obvious bit of instruction.
Here then are ten rules that generally apply across all buying and selling venues. When followed, they will help you achieve your goal of buying low and selling high.
When Buying:
1. Get to know the item. Hold it. Touch all the surfaces. Look at it from different angles. Use a magnifying glass or jewelers loupe. Use a flashlight. Use a magnet. Use an ultraviolet lamp (black light). Don't trust dim interior lighting, find daylight.
Have a strong hunch or certainty about the item, and make a decision - yes or no - right then. Don't set the item down, wander off to think about it, and expect it to still be there when you get back. If you thought it was interesting, someone else will, too.
2. Have an idea about resale price. Most items will sell in a few common price ranges. For example, $5 to $10, $10 to $20, $20 to $40, and so on. Thus, an item might just as easily sell for $39 as it would for $32. So, precision is not necessary.
Just an estimate of likely resale range will do. After all, no one absolutely knows the value or resale price of anything. It is all guesswork until the sale is finally consummated.
So, don't fret too much about this part. If you do the next part right, you will protect yourself against paying too much for an item.
3. Determine the ideal purchase price. Once you have a resale price estimate, the ideal purchase price is easy to calculate - just divide buy 10. In other words, if you think you can resale an item for $30, then you can afford to pay $3, or preferably less.
This rule is flexible to the extent that you can pay more when you have a higher level of confidence in the item, its resale speed, and its resale price.
Why 10-cents on the dollar? Because there are numerous costs involved in buying, holding, packaging, marketing, and selling. Not to mention, hours of your time. Plus, you might have made some mistakes regarding item condition and resale price.
Here is another way to think about this rule. Say, the item is priced for $5. Then, you should consider whether a $50 resale price is reasonable or not. If not, pass on the item. If you buy it anyway, then understand that you have just given away all or a big part of your potential profit.
In the final analysis, paying 10-cents on the dollar will almost always cover all the costs (and mistakes), and still provide a profit.
4. Condition, condition, condition. These are the three most important words in the world of collecting. Serious collectors of antiques and collectibles place a high value on condition. In fact, the more sophisticated the collector, the more important the condition of the item.
So, pass on an item if it is not in the very best of condition. Indeed, you can often safely buy almost anything, at almost any reasonable price, that is in mint or near mint condition, and in its original packaging.
In summary, when buying, require that an item have all of its parts, all of the packaging, all of the labels and instructions, and all in perfect condition. Those are the ingredients for an item that will always show a nice profit.
5. Store for the long hold. As appropriate, store flat, store packaged to stay dry and dust free, and store well protected against any physical damage. Don't display, and don't handle your items, especially the mint condition ones.
With many items, a long hold can mean storing an item for several years. When you are ready to sell, you want the item to be in as good condition as the day it was purchased.
When Selling:
6. Item description. Honesty, especially when it hurts, is always the best policy. Do your research. Write an interesting story. But, include all the warts.
7. Item photography. Pictures speak louder than words, and often louder than numbers. Great pictures are not easy. I have taken as many as 40 shots of an item before I had an acceptable photo. But, the extra work will pay off in faster sales and higher prices.
8. Deliver more value than expected. Beat the competition with faster, cheaper shipping. Better, cleaner packaging. Longer return window. Offer whatever it takes to distinguish yourself as a professional, and to create happy, loyal buyers.
9. Build a good reputation and protect it. Enough said.
10. Communication. Invent ways to keep your buyer informed.
You've probably heard the old saying that, you make your money when you buy something. For affirmation, take a close look at the word count in the When Buying, and the When Selling sections.
If word count is any indication, the When Buying considerations are several times as important as the When Selling considerations.
Essentially, the lesson is that if you buy right, then you are practically assured that you will sell your item for a nice profit.
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Each of these ten rules will become highly detailed individual reports available exclusively to Members.
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