Tuesday, March 4, 2014

The 20% Profit Strategy for Bowman Chrome Autograph Investments

Most readers ask the same question: should I sell (insert prospect name here) now?  I can technically answer the same for everyone...

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How to make this a reality...



Yes.  Sell now if you can net a profit of more than 20%.

If you can profit 20% from a majority of your investments short to mid term, you will be among the top investors in the prospecting world. The reason is the value of time and compounding interest. For example if you invest $100, profit 20%, reinvest everything, profit 20%, and so on for only four times, you more than doubled your initial investment ($207.36). 

The advantage of this is once you purchase a card, you can immediately list a Buy It Now on ebay for the 20% profit amount. Set it and forget it. The disadvantage is you may lose out on lost profits by selling too soon. Everyone would like to hit a double, and you can't blame them. It feels good. My answer to this is, don't be greedy. A profit is profit. And 20% is damn good for any investment. Hitting a double or better is rarer than it seems unless you've perfected the art of grading. 

When taking this approach, you obviously need to use your net profit. That means appropriately deducting all fees (ebay, paypal, s/h, etc.).  So here is a quick reference chart of when to sell via ebay based on purchase price. It assumes a flat $2.50 s/h cost to you for shipping and supplies, a 3% + $0.30 paypal fee, a free ebay listing fee, a 10% ebay final value fee, and a goal of 20%+ profit. 


 Purchase Price   Ebay Sales Price for 20% Profit 
 $                 5.00  $                     10.10
 $               10.00  $                     17.00
 $               15.00  $                     24.00
 $               20.00  $                     31.00
 $               25.00  $                     38.00
 $               30.00  $                     45.00
 $               35.00  $                     51.50
 $               40.00  $                     58.50
 $               45.00  $                     65.50
 $               50.00  $                     72.50
 $               55.00  $                     80.00
 $               60.00  $                     86.00
 $               65.00  $                     93.00
 $               70.00  $                   100.00
 $               75.00  $                   107.00
 $               80.00  $                   114.00
 $               85.00  $                   121.00
 $               90.00  $                   128.00
 $               95.00  $                   135.00
 $             100.00  $                   141.00
 $             125.00  $                   176.00
 $             150.00  $                   210.00
 $             175.00  $                   245.00
 $             200.00  $                   279.00
 $             225.00  $                   314.00
 $             250.00  $                   348.00
 $             275.00  $                   383.00
 $             300.00  $                   417.00
 $             400.00  $                   555.00
 $             500.00  $                   693.00

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