Watch A Business Investor Break Down CardsHQ's Numbers!

Рет қаралды 2,383

9 күн бұрын

httpNick dives into Geoff Wilson's latest episode about Cards HQ progress and fully analyzes the business model while providing advice on what he would do moving forward if he was Geoff.
‪@itsgeoffwilson‬ ‪@CardsHQShop‬ ‪@SportsCardInvestor‬
#thehobby #sportscards #cardshow #cardshop
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Пікірлер: 50

@brianwisz9006 7 күн бұрын

You should dust that Angel Investor cap off more often! lol Loved the perspective you provided and advice; it will be interesting to see if Geoff catches this video and exercises this priceless information.

@SportCardMadness 7 күн бұрын

Thanks! I hit him up and I think he plans to watch

@brianwisz9006 7 күн бұрын

@@SportCardMadness cool, we will have to follow the progression. Will you be going to the next Shriners show? I am unsure when it is.

@SportCardMadness 7 күн бұрын

@@brianwisz9006 Definitely! We did a video for the last one. I try to get to them all as its 15 mins from my house.

@brianwisz9006 7 күн бұрын

@@SportCardMadness I’ll check that video out. It’s like a half hour for me. I met JunkWaxHero there and a couple others. It’s a great show, especially for vintage heads.

@TytheSportsCardGuy 4 күн бұрын

Solid breakdown! The margins on selling courses and information are really high if you know what you are doing.

@fear0 7 күн бұрын

The amortization of his Will Grier cards was....umnnnn 😅

@Kenobimoose 4 күн бұрын

Whatnot definitely a big part considering they constantly sell 25 cent cards for $3-5 each

@youngpup2028 7 күн бұрын

Just subbed. I was going to do a business analysis of this as well but, you’re right on point with all my talking points. Great job!!!

@SportCardMadness 7 күн бұрын

Thanks!

@jillyes1 7 күн бұрын

I don't think whatnot is going to eat ebay. I'm a very large ebay seller and whatnot recently promoted me on their site in the storage unit category. At first I was getting between 100-180 people in my stream due to their promoting me. After I hit my first 1000 sales they stopped the promotions. I went from 100 plus to 50 overnight and getting 1/2 of what my items are worth. Since then I quit whatnot and back on ebay getting 100% value. Slated to do close to a million on ebay this year. I've also talked to a bunch of large sellers on whatnot and they all complain about the prices being too low. Maybe the sports card category will flourish but I doubt the rest.

@SportCardMadness 7 күн бұрын

Wow, thanks for your perspective and congrats on the sales! I should have expanded a bit and said something more like "live selling is going to overtake static auctions at some point". Its just my spidy sense and watching my kids and their friends and how they shop. We will see how it plays out for sure! It's not too difficult for ebay to add a live selling element and I imagine at some point they will be forced to.

@TheSportsCardDad 7 күн бұрын

Good stuff man!

@SportCardMadness 7 күн бұрын

Thanks!

@u_s_a_cards 7 күн бұрын

You're hired. Geoff will be calling you on Monday.

@chrisjcowboys 7 күн бұрын

Great Video! Good Info

@SportCardMadness 7 күн бұрын

Thanks!

@homeroscollection 6 күн бұрын

Cool video analysis. When speaking of margins, does anyone know what the gross margins is on the product he is selling? For retail, I would think a gross 50-66% margin is what you use to set your budget. Then you apply expenses to that to get your net margin which is your profit. So if he is using a 50% margin for a volume business, they made $2m before expenses. Can that be true? Or do you think they are using a smaller gross margin?

@jimsholle4277 5 күн бұрын

You suggested to read Never Split the Difference by Chris Voss. I did would you say this is the Black Swan event? Thank You.

@SportCardMadness 5 күн бұрын

Nah ... I think its just a young business finding its way. A Black Swan event would be something more like WhatNot shutting down, cards dropping by 90%, or Geoff leaving the business and not telling anyone. I don't think any of those will happen (except for some modern cards!)

@BobBoozle 7 күн бұрын

Great ideas. A creator I follow said a few weeks ago that the content around the store was a little underwhelming considering the resources they have. I like your ideas about educational content about What Not and breaking. Selfishly, I'd like to see Geoff fill a huge void in educating about the newest releases they are opening/selling. Not during the live streams but in separate videos. Topps doesn't effectively explain why any of their releases matter. Such videos could help collectors better navigate or understand the hierarchy of products.

@SportCardMadness 7 күн бұрын

Wow great idea totally agree!

@sp123 8 күн бұрын

He did release sports card investing for dummies if that counts

@SportCardMadness 8 күн бұрын

It definitely does. That will help all his businesses and it "leaves time and space" as I said.

@BennyBaseballCards 7 күн бұрын

How would you factor in the "new business let's go try it" mentality? I'm sure a lot of his early sales were people checking out the store for the first time just to see it. There was a lot of hype and buildup. 4 million in 4 months, but maybe $2M the first mo, and $650K each month thereafter. Also not sure how they budgeted for $4M of sales the entire year - that's just poor planning if they beat it shortly after Q1. Do you think it would be worth their while to create a customer database, where basically they are able to track the amount of times any given individual purchases something from the store? Not sure if they have customer accounts or anything like that. But customer retention, as in any business, is essential to growth. I work in Corporate FP&A for a startup btw (SaaS), just asking to learn. Thanks

@SportCardMadness 7 күн бұрын

LTV (lifetime value) of a customer is critical here because it’s 10x more expensive to acquire a new customer vs keep an existing one. So of course they will want to track repeat buyers repeat breaking etc to fully understand margin over a moving period of time. They already have a lot of customers in the other businesses, but they should absolutely be tracking new vs existing. Awesome … sounds like a fun gig!

@joereynolds3237 7 күн бұрын

This is a very neat breakdown and thoughts. When do you think he is going to regret having such a large ship?

@SportCardMadness 7 күн бұрын

Remember he is leasing … he did not buy the shop. Easy to downscale if it ever comes to that.

@joereynolds3237 6 күн бұрын

@@SportCardMadness that is a good point, hopefully the lease he had to sign is not too long or has favorable language to allow a pivot if needed. I don't know enough about commercial leasing so I can't speak too much. I wonder if he is wanting to do more online sales if he should have opened a shop for the public that is MUCH smaller and also leased a warehouse to do the online sales/shipping. What would have been your recommendation for him if he started all over?

@SportCardMadness 6 күн бұрын

@@joereynolds3237 It depends on the price per square foot. A public facing location has a ton of benefits as well.

@SamuelsViewsEST16 7 күн бұрын

I'M STILL WAITING FOR THE NUMBERS TO BE BROKE DOWN..... 🐷 🎒

@u_s_a_cards 7 күн бұрын

He's not a ninja when it comes to buying /trading cards, to be fair 😬

@oarancards4443 7 күн бұрын

This is coming from a red sox fan😂

@SportCardMadness 7 күн бұрын

Ooof you got me! Sorry … I’m from Boston I can’t help it! Il much more of an NBA guy though 🍀🍀🍀

@oarancards4443 7 күн бұрын

@@SportCardMadness just kidding go celtics

@goatretrogamer 7 күн бұрын

There is no way he's made 4 million dollars, absolutely none. Thats what 30k a day? Lol theres cards on the shelves that were there on opening day.Great video

@johnniejay 7 күн бұрын

If hes factoring in the breaking side of things (which are carried out in-store) coupled with online sales and in person sales then 30k a day really isn't that farfetched.

@goatretrogamer 7 күн бұрын

@@johnniejay that's still over a grand an hour. It's mathematically impossible considering the size of his business and what little inventory he has. That place is not busy coupled with his website was down for half the time the place has been open, then throw in his streams which aren't popular, I'd say a more honest guess is he's made a little over a million since opening. Sports cards are not selling unless it's way below market value. He does not have the vintage inventory to come close to four million in sales. He's frauding out to a dwindling fanbase.

@moronsaltable 7 күн бұрын

I wouldn't have the balls to ask Harvard professors if they want to do a case study about my business, especially if I'm carrying a binder full of baseball and Pokémon cards

@SportCardMadness 7 күн бұрын

You’d be surprised! They love this stuff and want a diverse set of studies for their students to work through.

@moronsaltable 7 күн бұрын

@@SportCardMadness Harvard intimidates me, I'd have to shoot my shot lower

@SportCardMadness 7 күн бұрын

@@moronsaltable We all breathe the same air man!

@winbig23 6 күн бұрын

Good insights on your behalf, but you’re giving Geoff way too much credit, because he’s a Master Promoter and a professional hype man, but a bad businessman which he’s lost several hundreds of thousands of dollars or more on very bad sports cards purchases over the last 4 years using his wife’s money to burn through! Geoff does some things good for the hobby, but he’s heavily promoted countless very bad sports cards investments that turned out to be disastrous!! His wife made several millions of dollars when she sold her business to a big company. So, Geoff is like a trust fund baby spending his wife’s money and he’s addicted to sports cards and public attention! So, I’m sure his big card shop is making very minimum profits with all his tons of overhead and huge build out expenses, but once all the hype dies down then he will be bleeding money like crazy!!!

@paulmouradjian6045 7 күн бұрын

So without any back up P/L statement, you are assuming a Grifter /ConMan is telling the truth?

@SportCardMadness 7 күн бұрын

Just going off public numbers for fun, not going to try and do forensic accounting obviously. Though there are ways to verify private numbers.

@TW-fv2zu 7 күн бұрын

ACTUALLY - I think Geehoff is NOT doing that well. It is a very hard business and he has a (1) HUGE Store (2) Many Staff (3) Declining Card Market and (4) his is a business Built on Borrowed Money. As a Business Mkt Research Analyst & Statistician, I’m gonna say it is Not going well.