Getting the ball rolling on Lego reselling

[Copterman]

Hey all, I am new to all this Lego investing and selling. Got into by accident when I found a MF at Walmart on clearance for $99. I had a feeling it was a valuable commodity and went on to make $60 profit on flipping it.

 

Since then I've gone on to spend way too much on Lego products and am slowly learning just how steeply discounted an item needs to be to make money.

 

My question is.... Is it common to profit about $10 per set? So far that's been my reality.

 

For instance, I bought a Lake-town Chase for $40+tax at WM a few weeks back. Just sold it on Amazon for $73 (including SH). After fees and shipping I'm anticipating netting approximately $10 profit.

 

I have made about $150 in one month but am sitting on around $2500 in inventory. I can't keep up this kind of spending so I have to turn inventory over if I want to purchase the next discounted find.

 

Anyone have any advice based on what I have shared?

[vexxet]

Hey all, I am new to all this Lego investing and selling. Got into by accident when I found a MF at Walmart on clearance for $99. I had a feeling it was a valuable commodity and went on to make $60 profit on flipping it.

 

Since then I've gone on to spend way too much on Lego products and am slowly learning just how steeply discounted an item needs to be to make money.

 

My question is.... Is it common to profit about $10 per set? So far that's been my reality.

 

For instance, I bought a Lake-town Chase for $40+tax at WM a few weeks back. Just sold it on Amazon for $73 (including SH). After fees and shipping I'm anticipating netting approximately $10 profit.

 

I have made about $150 in one month but am sitting on around $2500 in inventory. I can't keep up this kind of spending so I have to turn inventory over if I want to purchase the next discounted find.

 

Anyone have any advice based on what I have shared?

i cant speak for anyone else, but i started in 2011 and i just now started selling.  about half of my items its going to be hard to make retail back (bought for 50% to 70% off) and the rest im making a killing.  my advice is if you cant afford to sit on sets for a long time you wont make good/great profits.  this hobby or whatever you want to call it is absolutely NOT for the impatient.

[jbacunn]

You have to have a fairly large amount of capital to do this properly which is buy and hold for 1-2 years. You are quick flipping for minimal profits which there is nothing wrong with but don't expect to get rich doing it. Maybe you should start of slow. Quick flip a few sets until you have enough to buy a large exclusive like ToO or Red 5. Rinse and repeat.

[stephen_rockefeller]

The flipping method of reselling takes much more vigilance and effort but if done often and correctly it can be quite lucrative. If takes perfect timing for obtain maximum profit.

[tabc59]

I too started back in 2011, and I still haven't sold much besides a couple B-Wings. Quick flipping works fine if you do it properly, but there may be a bunch of sets where you do only make $10 per sale. Some people live in a good area to sell for cash, which could possibly be an option for you. Otherwise you may just have to wait for the incredible sales that occasionally happen.

[house72]

I'm not an reseller of LEGO, but from what I read and gathered from this forum  is that the bigger sets ( You have to figure out which ones) will yield you a higher profit than flipping smaller sets. To me, if I was going to invest from a resellers point of view, I would want more than $10 for ROI. Did you factor in gas, mileage, time, etc from the profits of your sales?   You can make some money on smaller sets, but I think the clearance sets are tough to make any real money for a decent period of time..  

 

If you only had $2,500.00 to spend, I would invest in some 150-200 sets, especially the ones that may be EOL.. If you can't hold on to those sets because of money constraints, than do what is comfortable for you.  Not everyone has the same budget...     I would try to up my initial buy in budget to at least $7,500-10k.  

 

Again, this is just my observations..    

 

Good luck.. 

Edited February 8, 2015 by house72

[stephen_rockefeller]

Historically small and medium sets generally have a higher CAGR than large sets.

[Copterman]

Thank you so much for your input everyone. I really enjoy the BP community even though I am a small fry.

 

Would love to get your opinion on my purchases so far. I can take back most everything since it was purchased at WM.

 

In order of highest to lowest purchase:

 

The good stuff...

 

10245 ToO x 2 @ 199.99 each

10235 WVM x 2 @ 99.95 each

10245 Santa's Workshop x 4 @ 69.99 each

76000 Arctic Batman x 2 @ 19.99 each

79003 Unexpected Gathering x 7 @ $49 each

79008 Pirate Ship Ambush x 4 @ $74 each

 

The Wal-mart discounts...

 

70146 Chima Flying Phoenix Fire Temple x 3 @ $60 each (half off)

4429 City Helicopter Rescue x 11 @ $30 each (half off)

60008 City Museum Break-in @ $25 (retail 69.99)

60045 City Police Patrol @ 11.24 (retail 44.99)

 

A bunch of chima crap for half off

 

Stuff adds up quick 

[house72]

Historically small and medium sets generally have a higher CAGR than large sets.

 Thanks for the info..  

 

Now just because they have a higher CAGR,  that doesn't  always mean they will net a higher profit than the larger sets, right?   10% on $50 set with a  CAGR for 2 years, would be less compared to  8 %  CAGR on a $200 set,  so the person would make more with the higher price sets.   

 

I understood the higher to mean percent.   

[vexxet]

Thank you so much for your input everyone. I really enjoy the BP community even though I am a small fry.

 

Would love to get your opinion on my purchases so far. I can take back most everything since it was purchased at WM.

 

In order of highest to lowest purchase:

 

The good stuff...

 

10245 ToO x 2 @ 199.99 each

10235 WVM x 2 @ 99.95 each

10245 Santa's Workshop x 4 @ 69.99 each

76000 Arctic Batman x 2 @ 19.99 each

79003 Unexpected Gathering x 7 @ $49 each

79008 Pirate Ship Ambush x 4 @ $74 each

 

The Wal-mart discounts...

 

70146 Chima Flying Phoenix Fire Temple x 3 @ $60 each (half off)

4429 City Helicopter Rescue x 11 @ $30 each (half off)

60008 City Museum Break-in @ $25 (retail 69.99)

60045 City Police Patrol @ 11.24 (retail 44.99)

 

A bunch of chima crap for half off

 

Stuff adds up quick 

i love it.  i know hobbit lotr sets arent great now, but i have a sneaking suspicion especially if the license expires is that we are sitting on gold mines.  as someone else has said, i also love the flying phoenix temple and 60$ is a great price for 1300 pieces.  You went insane on the CHRs... I did too =D  TRU exclusive is always a plus.  City Museum breakin is a good buy, I got lucky and got them for 18$ at Target two years ago.  big set with light brick, whats not to like? 

[house72]

Thank you so much for your input everyone. I really enjoy the BP community even though I am a small fry.

 

Would love to get your opinion on my purchases so far. I can take back most everything since it was purchased at WM.

 

In order of highest to lowest purchase:

 

The good stuff...

 

10245 ToO x 2 @ 199.99 each

10235 WVM x 2 @ 99.95 each

10245 Santa's Workshop x 4 @ 69.99 each

76000 Arctic Batman x 2 @ 19.99 each

79003 Unexpected Gathering x 7 @ $49 each

79008 Pirate Ship Ambush x 4 @ $74 each

 

The Wal-mart discounts...

 

70146 Chima Flying Phoenix Fire Temple x 3 @ $60 each (half off)

4429 City Helicopter Rescue x 11 @ $30 each (half off)

60008 City Museum Break-in @ $25 (retail 69.99)

60045 City Police Patrol @ 11.24 (retail 44.99)

 

A bunch of chima crap for half off

 

Stuff adds up quick 

At least you're a fry. I'm a still a spud.. lol    

 

I really can't help with if those sets are good for investing, I just buy sets my daughter and I like would like to build.    The more I see the ToO ( which I think will yield you a decent return sometime down the road.), the more I like it..  I also liked the Museum break in, but I wasn't paying 70 bucks for, I didn't like it that much. lol  

Edited February 8, 2015 by house72

[ravenb99]

Thank you so much for your input everyone. I really enjoy the BP community even though I am a small fry.

 

Would love to get your opinion on my purchases so far. I can take back most everything since it was purchased at WM.

 

In order of highest to lowest purchase:

 

The good stuff...

 

10245 ToO x 2 @ 199.99 each

10235 WVM x 2 @ 99.95 each

10245 Santa's Workshop x 4 @ 69.99 each

76000 Arctic Batman x 2 @ 19.99 each

79003 Unexpected Gathering x 7 @ $49 each

79008 Pirate Ship Ambush x 4 @ $74 each

 

The Wal-mart discounts...

 

70146 Chima Flying Phoenix Fire Temple x 3 @ $60 each (half off)

4429 City Helicopter Rescue x 11 @ $30 each (half off)

60008 City Museum Break-in @ $25 (retail 69.99)

60045 City Police Patrol @ 11.24 (retail 44.99)

 

A bunch of chima crap for half off

 

Stuff adds up quick 

The whole list is a good start , other than the last line.  Some sets just because they are half off aren't worth buying , especially in your situation described above.

 

You'll make some money on all of that.  Some will take holding a little longer but by Xmas all of those sets listed including the WM stuff will make you some money.

 

You're picking some good sets so that's a plus.  Just stay away from some stuff just because its 50% off.   Not saying Chima is horrible but there are a lot fewer gems in the line and they are plentiful and discounted heavily at a lot of retailers.

Edited February 8, 2015 by ravenb99

[Copterman]

As a LOTR enthusiast I absolutely believe in these sets. LOTR are rabid much like SW fans. SW fans have current products to chase down whereas if I had gotten into Legos 5 years from now, I'd be paying $$$ to get the retired LOTR. If the license expires, they will be great long term holds IMO. Maybe I'm a little biased though.

[vexxet]

The whole list is a good start , other than the last line.  Some sets just because they are half off aren't worth buying , especially in your situation described above.

 

You'll make some money on all of that.  Some will take holding a little longer by by Xmas all of those sets listed including the WM will make you some money.

 

You're picking some good sets so that's a plus.  Just stay away from some stuff just because its 50% off.   Not saying Chima is horrible but there are a lot fewer gems in the line and they are plentiful and discounted heavily at a lot of retailers.

sorry im going to derail this thread... i had  a weird dream last night where people were building massive human castles out of either kings castle or helms deep... then they added all these chima riders (spiders, eagles, wolves, what have you) and created a stupid huge battle scene... then everyone saw it and started buying up all the chima on the internet.  wishful thinking huh?  lol

[Copterman]

Lol vexxet!

[stephen_rockefeller]

The whole list is a good start , other than the last line. Some sets just because they are half off aren't worth buying , especially in your situation described above.

You'll make some money on all of that. Some will take holding a little longer but by Xmas all of those sets listed including the WM will make you some money.

You're picking some good sets so that's a plus. Just stay away from some stuff just because its 50% off. Not saying Chima is horrible but there are a lot fewer gems in the line and they are plentiful and discounted heavily at a lot of retailers.

This! It's sometimes hard to not buy sets at good discounts but often times they are discounted for for a reason. The sets you chose are pretty good, it's a mix of flips and a mix of holds. Also yes in was referring to % rate.

[TheOrcKing]

sorry im going to derail this thread... i had  a weird dream last night where people were building massive human castles out of either kings castle or helms deep... then they added all these chima riders (spiders, eagles, wolves, what have you) and created a stupid huge battle scene... then everyone saw it and started buying up all the chima on the internet.  wishful thinking huh?  lol

[Val-E]

I would take back all the wallmart discounted stuff and go for a red 5/ pet shop / palace cinema / ewok village / EEE.

 

I see the porftolio as too narrowly based themewise and you definitely want some SW or modulars too.

[Agsimpson13]

If I were you, I would definitely look in the direction of doing some flipping (Lego or otherwise) and trying to recoup some of your initial investment. Then slowly, without any additional capital expenditure, use the money from ongoing sales to finance additional flips and you will eventually be able to finance longer holds through flipping.  I started with far less than you and have managed quite well.  I am new to the Lego scene and finance my Lego purchses thru flipping...I finance my flipping thru flipping.

Reselling and Flippinng takes DUE DILIGENCE and not every item will make money (anybody remember Sing-A-Ma-Jigs, Had to work hard to luckily make minimal profit). If you are disciplined and enjoy this type of thing it will pay off.  Sometimes flipping for low margins may be necessary or even the best way to go. Know your product. I LOVE reselling...It is my hobby and as I tell my Wife my Hobby makes MONEY.  Again I would not spend ANY MORE money and instead Focus on a "Self Financing"  business model.

[redcell]

Hey all, I am new to all this Lego investing and selling. Got into by accident when I found a MF at Walmart on clearance for $99. I had a feeling it was a valuable commodity and went on to make $60 profit on flipping it.

 

Since then I've gone on to spend way too much on Lego products and am slowly learning just how steeply discounted an item needs to be to make money.

 

My question is.... Is it common to profit about $10 per set? So far that's been my reality.

 

For instance, I bought a Lake-town Chase for $40+tax at WM a few weeks back. Just sold it on Amazon for $73 (including SH). After fees and shipping I'm anticipating netting approximately $10 profit.

 

I have made about $150 in one month but am sitting on around $2500 in inventory. I can't keep up this kind of spending so I have to turn inventory over if I want to purchase the next discounted find.

 

Anyone have any advice based on what I have shared?

 

Yes...control your buying until you have a very good feel for the selling side of the equation.  If you take the time to read back through this forum, you will see many people who started exactly where you are...they find a few sets at a good price, flip them for some quick profits, get really excited and, then go on a buying binge.  However, you will also see a lot of those people disappear almost completed from the scene after 12-18 months.  One of the reasons that this happens is that it is much much much easier to buy a large quantity of Lego than it is to sell that same quantity of Lego and the ease with which one can flip a handful of sets tends to create the illusion of a perfectly liquid market in which any set can be sold almost instantly simply by listing it for sale.  Problems, however, tend to develop in one of several ways.  First, buying and selling 5-10 sets takes less time and is much easier than selling 50-100 sets, which takes less time and is much easier than selling 500-1000 sets.  Second, sets like the MF that rise quickly after retirement and are subject to a huge demand are not as common as they used to be.  As a result, if you scale your buying up on the assumption that the whole endeavor is like shooting fish in a barrel, you will end up with some real winners and a ton of inventory that has risen more slowly and is more difficult to flip.

[justapilgrim]

I'd return all but a few of the helicopter rescue and buy red5, pet shop or something like that. Even at half off, it is a massive box and there isn't a huge demand for them. You can probably sell them all at xmas, but after shipping, etc probably back to $10-$15 a set and they take up a lot of room

Sent from my SAMSUNG-SM-N910A using Brickpicker mobile app

[Kizmoz]

I was gonna start a similar post...

 

I've spent months quietly just sitting and reading these forums, trying to piece together a strategy on how to make a go of things. While at the same time putting aside a few sets to test the water.

I haven't committed big yet and I'm in no rush to sell any yet.. Although I'm still kicking myself for not getting certain sets when I had the chance e.***. I opted to get ToO for my personal collection (currently put together above my desk) over SSD.

Budget wise its not practical for me to invest heavily in large collector sets, however I do feel just 1-2 such as SSD would've been a good foothold.

 

Over the past couple of months I feel I've made some decent selections at some brilliant prices after shopping around.

 

Just wondering if likewise I could get an opinion on some of my current stash...

 

2x Milano 76021 - (

[Alcarin]

I started buying LEGO for resale  with the arrival of LEGO LOTR 1st wave..... and my total balance up until now is:

 

 

Cash spent on LEGO (including my own collection): 3.800

[Agsimpson13]

Keep money from your "business" and your household seperate.  However you financed your startup...you have more than enough to work with.  ALWAYS put your initial capital and profits back into your business.  Resist "taking profits" for at least 18 months. If you are in a situation where your present inventory is going to stagnate, consider selling off some inventory at hopefully break even.  Be patient, make good purchases with at least minimal profit built-in. Some recent items from Brickpicker posted last month:  Horizon Express - 92.00, Kings Castle - 99.00 and Research Institute still shows up from time to time. Any heartache and losses are part of "Going to School".  Get to the point of having a quality rotating inventory to create the CASH to pay for deals when they are available. Resist credit card debt.

[Agsimpson13]

Oh yeah...Creative Suitcase...LOL.