The real pain was that 1,800 US$ were bound for such a long time. That's why you always go for s short lifespan on your shelf, to have the money available back again quickly for new investments.
Does the $120 per set include sales taxes? My province of British Columbia in Canada has a combined provincial & federal sales tax of 12%. LEGO investment is a bit more challenging when a set has to appreciate 12% just to break even.
I can't speak for Canada, but in the US, business owners should not need to pay sales tax on inventory. I don't pay sales tax on the majority of my inventory because I have a tax exemption. Definitely worth looking into this if you are taking LEGO investing seriously
This is not a case of a bad investment per se. It’s more a lesson in being patient! Too many people looking for quick gains / flips. Investments can take time to yield returns - trying to maximise returns within a 2 year window seems to be a good way to gain average or below par ROIs.
In e-commerce, the way to compound your money is through turnover. If you hold for many years, you don't have turnover or reinvesting of your profits. Sure your ROIs will be higher on each sale, but your business will grow slower due to lack of compounding
I took a different loss recently during my LEGO investing adventures. I was selling an entire lot of speed champions single car sets 100% sealed and complete but did not take into consideration the shipping costs due to the package being enormous. I was too busy selling tons of small items through my store at the same time, that when that Speed Champions sale came and went and I jumped to the post office to ship it thinking I made a killing on the sale...the shipping fees jumped out and smacked me. I ended up just below breaking even on the entire sale after everything was said and done. Haha I learned a ton. Thanks for the real feed back data too
I don't sell at the lowest price - that would be throwing money away. The true market price on eBay is the average of the past few sales - neither the low price nor the high price
What about taxes and Inflation? Do you calculate with them when you Take the decision top sell a set? What ist your general profit Goal for a set? Greetings and keep in going
This Porsche is a stunning Lego set, I couldn't resist buying 4 when It came up on offer at £88 in 2020, I made the same mistake as you in holding them for too long , have just sold 2 and made a small profit and I am still tempted to hold on to one, but will probably liquidate them
I don't use the formula because I see it as overcomplicating a relatively simple concept. But the idea behind it, yes I use it. I invest heavier in sets where I feel the probability of hitting a high ROI is stronger
Amazon rotate the Buy Box between themselves and third party sellers. They take up the majority of it, but if you list at the same price as them, you will still make sales, just a bit slower when they are in stock
$115 of profit isn't even worth thinking about taxes, because you can easily rule them out with other business expenses such as internet bills, mileage to source inventory, supplies etc.
show me a fund or stock you can buy that consistently grows 2-5% per month (24-60% per year) and I'll agree 😃. The best stock investors in the world barely make 20% CAGR per year
Most LEGO investments work out a lot better than this example. For example the Tie Fighter Pilot Helmet (75274) that I purchased for $30-35 when it was on sale at Target in Nov '21, and sold most of them almost a year ago for about $160-180 on Bricklink, then realized I had 1 more and sold it on Amazon for $359 last month. My LEGO business is considerably more profitable and has much higher return on investment than the 401k from my day job. Not only that, but it won't be long before it REPLACES my day job. Tempted to cash out my 401k when that time comes and put it into more LEGO 🤑
So cool that you share this and to see that things don't always go great! Nice that you also shared the figures!
The real pain was that 1,800 US$ were bound for such a long time. That's why you always go for s short lifespan on your shelf, to have the money available back again quickly for new investments.
Yes exactly
I bought this Porsche rsr 2 years ago and have not build it yet. The price went up from $200 to $250 cad. I still plan on opening it.
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Literally sold my first one today and after ebay and postage fees pretty much break even for it, still got a heap left to sell lol.
Does the $120 per set include sales taxes?
My province of British Columbia in Canada has a combined provincial & federal sales tax of 12%.
LEGO investment is a bit more challenging when a set has to appreciate 12% just to break even.
I can't speak for Canada, but in the US, business owners should not need to pay sales tax on inventory. I don't pay sales tax on the majority of my inventory because I have a tax exemption. Definitely worth looking into this if you are taking LEGO investing seriously
This is not a case of a bad investment per se. It’s more a lesson in being patient! Too many people looking for quick gains / flips. Investments can take time to yield returns - trying to maximise returns within a 2 year window seems to be a good way to gain average or below par ROIs.
In e-commerce, the way to compound your money is through turnover. If you hold for many years, you don't have turnover or reinvesting of your profits. Sure your ROIs will be higher on each sale, but your business will grow slower due to lack of compounding
Nice video. You should show up failers more often. Im thinking to tree house or others set who have been pushed back
such a good set, was excited to invest in it til I saw 5 years on the shelf
I took a different loss recently during my LEGO investing adventures. I was selling an entire lot of speed champions single car sets 100% sealed and complete but did not take into consideration the shipping costs due to the package being enormous. I was too busy selling tons of small items through my store at the same time, that when that Speed Champions sale came and went and I jumped to the post office to ship it thinking I made a killing on the sale...the shipping fees jumped out and smacked me. I ended up just below breaking even on the entire sale after everything was said and done. Haha I learned a ton.
Thanks for the real feed back data too
Do you not charge the buyer shipping? Or did you under charge for shipping the speed champions sized box?
On eBay, the lowest price for new sets is $145, why can you sell for $164
I don't sell at the lowest price - that would be throwing money away. The true market price on eBay is the average of the past few sales - neither the low price nor the high price
@@BrickBucks thanks, if meet the right buyer, it will eventually sell
Is there a discord for alerts on UK lego deals? thanks
What about taxes and Inflation? Do you calculate with them when you Take the decision top sell a set? What ist your general profit Goal for a set? Greetings and keep in going
Still have two of them left, which I Bought for € 76,- each, so I think I’m gonna sit on them for a while.
This Porsche is a stunning Lego set, I couldn't resist buying 4 when It came up on offer at £88 in 2020, I made the same mistake as you in holding them for too long , have just sold 2 and made a small profit and I am still tempted to hold on to one, but will probably liquidate them
Should have kept them and waited until they do retire! Waiting for a while anyway. Yeah keep one just incase
When you buy say 100 of a set at a time. What does delivery of those packages look like? Do you just get 50+ boxes?
It depends on the size of the set, but often I get 20 units in just 2-3 boxes
Whats your ideal profit on a set tetired a year or so? I know u don't hold very long. I have some 10 yr old sets .
100% ROI in a year is my target
Lego overlord dragon yucky investment on my end
Are you using Kelly Criterion to size your investments?
I don't use the formula because I see it as overcomplicating a relatively simple concept. But the idea behind it, yes I use it. I invest heavier in sets where I feel the probability of hitting a high ROI is stronger
Are you accounting for tax on the $120 purchase price as well as packaging costs to ship?
yes
The sell price is same as Amazon itself, why people buy your set not Amazon itself?
Amazon rotate the Buy Box between themselves and third party sellers. They take up the majority of it, but if you list at the same price as them, you will still make sales, just a bit slower when they are in stock
@@BrickBucks can you mark a little bit lower to make more sales?
@@kaihuang7282 yeah you can, but it may be unnecessary
@@BrickBucks thanks
what about taxes?
$115 of profit isn't even worth thinking about taxes, because you can easily rule them out with other business expenses such as internet bills, mileage to source inventory, supplies etc.
@@BrickBucks Do you hire a CPA to do you taxes? How to define mileage between source or you personally driving?
@@kaihuang7282 it's better if you Google any tax questions. What I do may not be the best for everyone so I won't go there :)
thanks@@BrickBucks
At least you broke even with small profit but it’s more the time and effort to sell them on that I would be annoyed about!
Very cool video
I got 4 for €80 a piece, which was an insane price in 2001. I will just sit on them for another year or 2i guess
2001? 🤔
"Lego" investors make me laugh. A 401k at 2-5% gain per month sounds alot better😂
show me a fund or stock you can buy that consistently grows 2-5% per month (24-60% per year) and I'll agree 😃. The best stock investors in the world barely make 20% CAGR per year
Most LEGO investments work out a lot better than this example. For example the Tie Fighter Pilot Helmet (75274) that I purchased for $30-35 when it was on sale at Target in Nov '21, and sold most of them almost a year ago for about $160-180 on Bricklink, then realized I had 1 more and sold it on Amazon for $359 last month.
My LEGO business is considerably more profitable and has much higher return on investment than the 401k from my day job. Not only that, but it won't be long before it REPLACES my day job. Tempted to cash out my 401k when that time comes and put it into more LEGO 🤑
per year maybe, per month makes you look like a rube, 60% yoy does not happen
5 percent 😂