Earlier this week in my alticle I hinted that I might be transitioning in my role here at Quiet Speculation. Jason’s Alticle is no more. Instead, I will be writing an Insider “Alticle” each week. If that’s not going to be enough of a fix for you, or you’re not an Insider, fear not, because I will be posting something cool for you here on the free side every. Damn. Day.
Since my Insider Alticle is going to focus on how I make money doing things that aren’t speculating, I have been thinking about how I am going to write about Inventory. I found a couple very good examples around the web.
This first one from Ryan Bushard was an inspiration.
It may seem tedious at first, but organization is a big key to moving forward—even if your collection is manageable now, if it continues to grow—as most hope it will—it is better to have a handle on the problem before it forms. I wish I had someone to have told me these same tips and tricks years ago, but take it from me: This is one time-consuming effort that may not seem worth it at first, but in the long run, you will be glad you kept a hand on it.
Ryan advocates starting any project, acquisition or buylisting venture with a full set sort and alphabetization. Sounds like a lot of work? He makes the cast for it being worth it.
This ongoing series on Brainstorm Brewery is really shaping up as well. Part 2 is on the site as well if you’d like to read more. I think the author has some useful and inspiring info here.
Mistake #3: Ignoring Losses
Losses will kill you, as I said above. We are all inclined to shuffle these experiences to the back of our minds, but it is important that you recognize inventory-related losses. You can’t just forget about them or call it bad luck or stick them in the bad spec box. Here is an example with some numbers to illustrate:
If I buy five copies of Snapcaster Mage at $20 ($100 total investment), then sell them for $30 cash each, I have $150 for a profit of $50 or 50%. Awesome, 50% is great. But if my dog chews just one of those cards up (or more likely, I confuse collecting and finance again and stick it in my cube) and I can only sell four, I have $120. My initial investment is the same $100, but now my profit is only 20%, meaning I’ve lost more than half of my profit because one-fifth of my inventory disappeared.
I hope that’s enough food for thought for now. Expect my first Insider Alticle early next week!