Yes, I think your right, short term investments, are different than having a store, & a distributor you are working with. As a short term investor, I see the cost at which the sets are bought as the biggest difference. Even an experienced short term investor, is hard pressed to get Lego for much less than 20% off of msrp these days online. Sure there's occasional sales online for the sets you are looking for that are better than 20%, but if it's popular set that you are looking to buy, it is much more of a challenge finding that price on many occasions, usually just minutes at a time. Also, liked your explanation about using the 50K needed income for each year, & what it would take to generate that 3 years out, when even the worst Lego sets would have doubled after expenses ( if it hasn't doubled in three years, cut your losses, and move on , even at 18 months, if you see there's no chance of doubling in 3 years, move on ). So it's a tough question, but I think it was answered quite well. I believe, & I haven't yet, that you need to diversify into something else, like sports cards, cell phones, quick flipping Lego itself, for quick cash (2020 was great all year, but most years, it's mainly just holidays like you said )ect to augment, particularly because one of the biggest impediments to reaching a goal like 50k, is not just upfront money for the first few years, but also space. So nice job answering that one, my thoughts are pretty on par with yours, can be done, but quite a challenge. But like you said, Lego as substantial added income, is much more attainable, unless the investor is just not investing in great sets.
Really happy to hear that I'm not alone in my thinking that there is a difference between reselling and short term investments. I'm really pushing hard to work on my diversification and would love to hear what area's you are planning on extending into as well.
Do you invest in certain themes or price points for your Lego sets or do you buy a variety of them? Like 10 x $10 sets vs 1 x $100 set. How do you store and protect the sets to prevent damage? Thanks
Thanks for the questions C Cappe. I'm assuming you've found some of the answers to these questions as I see you've been watching some of the other videos. If after watching thru them you still have additional questions please feel free to drop a comment in the next video and I'll see what I can do to answer them.
Very well explained! I am getting into Lego after going through my basement and finding all of my son's old Lego sets, dusting them off, cleaning and organizing them. I really love the Mandalorian so I am currently collecting all the sets from Lego. I had the thought of buying two of each set so I could build one and leave one in a sealed box, what do you think? Thanks for your video btw- take care
Good question, sadly, it's one that can only be answered by you. What is best for one person isn't always best for everyone. I use caution throughout much of my life and generally I don't go all in on any one thing. I go deep into lego personally, but I do still have other investments as well that i use.
Good video. Only point I disagree with is a saying there are distributors that sell at ~60% retail. One: there are no official Lego distributors. Two: the so-called wholesalers out there want 85-95% retail. At least that’s been my experience. Would love to hear where you’ve found otherwise.
AK, so from what I've heard, ~60% of retail is what the really large (Walmart / Target / Amazon ) stores are able to get which could be direct from LEGO or maybe it goes thru a distributor. From what I was reading, it appears as though there is a single "True Distributor" for LEGO in the US and a few 2nd / 3rd tier distributors. I would guess that from 2nd / 3rd tier distributors you are correct in that the 85-95% could be very true. This is why many local toy stores actually mark sets up beyond MSRP. I don't have any hard facts, but I would assume if you were to get an account with the prime distributor then the discount would be much greater.
My approach is this. Buy something at a discount that has potential for the future and also potential to run out during Q4. There are a few current star wars examples available now. Best case scenario is you can flip it for 25-50% in Q4. Worst case it doesn't sell Q4 and you hold it for 1-2 years. You are hedging your bets. Everything I have is for sell at the right price.
That's a great strategy, I just have a hard time paying enough attention to quick peaks in prices to do the quick flips. I prefer the low maintenance route of just holding on to it for a few years until the ROI hits a decent number. helps with my sanity and all the things that are currently fighting for my time.
Excellent video. Totally agree, you couldn’t have put it better. I have ‘toyed’ (like the pun?) with the idea of turning this into a living and it would not work. The sheer amount of reduced Lego you would need to buy each year on top of the total inventory you would need behind you along with the uncertainty of what’s happening beyond say 5 years is too challenging. Top up salary - yes. Totally living - very difficult and way too risky for those sums of money.
Good question, I think the answer to this is yes as long as your business model is based around buying sets at retail prices and waiting / holding for 2 - 3 years prior to selling. This allows for all retail stores to be a method of sourcing.
Hi Dave just thought I should let you know. This video was really hard to follow. I could only get through the first 8 mins as it felt like it was written by a law firm. Lol please I mean no disrespect I have found your other videos awesome and very easy to understand and extremely useful. Again I mean no disrespect. Keep um coming
Sorry to hear that, I can be a bit of a numbers guy sometimes and probably went in depth on those numbers a bit much for the average person. I appreciate the feedback :)
@@ScotsToys lol yeah i felt i had to say it and hoped you wouldnt get to upset with it as im sure im not the only basic skilled human that follows you lol , love all the other vids so far mate im picking up a lot of useful hints and tips :)
I agree, you can make a money reselling Lego. But you need to calculate what I called a ‘knock out rate’. What’s the lowest you need to make a year to break even on bills, tax, rent etc. However, I do also believe if you resell Lego, you need to invest into other areas of reselling such as trading cards and technology. Lego is only a piece of the pie. In terms of investing, In terms of making a living in Lego investing, I feel like you’ll need to have a large amount of money on the side to hold long term (1 year+) rather than short term (1-6 months). I’m starting reselling as my side hustle while I study my Masters, because I have a very good knowledge in what’s worth what. I always believe that money exists, and through intuition and instinct, you can earn a living from it.
FLX, you've been doing great on the reselling front. Very diligent attention to marketplace / ebay has been paying off well for you. Keep up the awesome work man!
Awesome, Scot! Loved watching the feedback! ^^ So basically ur saying DYOR, pick the right items for the right prices^, HODL m and know when to SODL m.. So similar to Stock/Crypto trading hehe. Thanks again ^^ ( We are all Satoshi ;-)
You got it! I know that sounds like a simple "Time the Market" type advice, but the reality is that since LEGO doesn't fluctuate in quite as wide of a swing, but instead sees a gradual incline over time. So buy under MSRP while a set is available and then hold until the natural incline increases to the ROI you are looking to achieve. This could take 1 year, it could take 10 depending on your target and the set.
Great video. I focus my investments on the larger sets and hold for 3+ years. Use eBay as a reselling platform. Amazon has become increasingly more difficult over the years to hock your Lego wares. As an aside, that poster Satoshi may be trolling. His screen name is a pseudonym for the group that created Bitcoin. Kinda bizarre he’s focusing any efforts on flipping lego.
I guess whether he was trolling or not, it seemed like a fair question that I can tell a lot of people were really interested in hearing about. It was fun to be able to share my take on the whole thing as well.
Yes, I think your right, short term investments, are different than having a store, & a distributor you are working with. As a short term investor, I see the cost at which the sets are bought as the biggest difference. Even an experienced short term investor, is hard pressed to get Lego for much less than 20% off of msrp these days online. Sure there's occasional sales online for the sets you are looking for that are better than 20%, but if it's popular set that you are looking to buy, it is much more of a challenge finding that price on many occasions, usually just minutes at a time. Also, liked your explanation about using the 50K needed income for each year, & what it would take to generate that 3 years out, when even the worst Lego sets would have doubled after expenses ( if it hasn't doubled in three years, cut your losses, and move on , even at 18 months, if you see there's no chance of doubling in 3 years, move on ). So it's a tough question, but I think it was answered quite well. I believe, & I haven't yet, that you need to diversify into something else, like sports cards, cell phones, quick flipping Lego itself, for quick cash (2020 was great all year, but most years, it's mainly just holidays like you said )ect to augment, particularly because one of the biggest impediments to reaching a goal like 50k, is not just upfront money for the first few years, but also space. So nice job answering that one, my thoughts are pretty on par with yours, can be done, but quite a challenge. But like you said, Lego as substantial added income, is much more attainable, unless the investor is just not investing in great sets.
Really happy to hear that I'm not alone in my thinking that there is a difference between reselling and short term investments. I'm really pushing hard to work on my diversification and would love to hear what area's you are planning on extending into as well.
Do you invest in certain themes or price points for your Lego sets or do you buy a variety of them? Like 10 x $10 sets vs 1 x $100 set. How do you store and protect the sets to prevent damage?
Thanks
Thanks for the questions C Cappe. I'm assuming you've found some of the answers to these questions as I see you've been watching some of the other videos. If after watching thru them you still have additional questions please feel free to drop a comment in the next video and I'll see what I can do to answer them.
Thanks. I am making my way through your videos, lots of great information.
Doesn't the Lego company only sell wholesale to major retailers? I did not know they middleman anything.
There are some wholesalers that act as 2nd or 3rd tier wholesalers that you can get some sets thru. It's a series of distribution channels.
I am looking for 10257 carousel. Do you have it in your inventory?
I appreciate e you asking about it, sadly that is a set I do not have... lots of missed profits lol
Very well explained! I am getting into Lego after going through my basement and finding all of my son's old Lego sets, dusting them off, cleaning and organizing them. I really love the Mandalorian so I am currently collecting all the sets from Lego. I had the thought of buying two of each set so I could build one and leave one in a sealed box, what do you think? Thanks for your video btw- take care
2 of each set is a great way to help fund your hobby. I think this is how many people get started into Lego investing.
Do I go all in on Lego?
Good question, sadly, it's one that can only be answered by you. What is best for one person isn't always best for everyone. I use caution throughout much of my life and generally I don't go all in on any one thing. I go deep into lego personally, but I do still have other investments as well that i use.
Lmfaooo first question was from the goat himself, satoshi, finally came out of hiding to get some Lego advice 😂
True story
Good video. Only point I disagree with is a saying there are distributors that sell at ~60% retail. One: there are no official Lego distributors. Two: the so-called wholesalers out there want 85-95% retail. At least that’s been my experience. Would love to hear where you’ve found otherwise.
AK, so from what I've heard, ~60% of retail is what the really large (Walmart / Target / Amazon ) stores are able to get which could be direct from LEGO or maybe it goes thru a distributor. From what I was reading, it appears as though there is a single "True Distributor" for LEGO in the US and a few 2nd / 3rd tier distributors. I would guess that from 2nd / 3rd tier distributors you are correct in that the 85-95% could be very true. This is why many local toy stores actually mark sets up beyond MSRP. I don't have any hard facts, but I would assume if you were to get an account with the prime distributor then the discount would be much greater.
I agree about your theory. Thanks for a great video!
did anyone notice satoshi coming back from the dead to ask about lego >?
Dave been long time old friend. You look happy take care buddy.
I am! Thank you :)
Lol cmon scot you totally missed the first guy “satoshi nakamoto”
lol, I'm confident i did :)
Missed the guy who invented Bitcoin 😂
My approach is this. Buy something at a discount that has potential for the future and also potential to run out during Q4. There are a few current star wars examples available now. Best case scenario is you can flip it for 25-50% in Q4. Worst case it doesn't sell Q4 and you hold it for 1-2 years. You are hedging your bets. Everything I have is for sell at the right price.
That's a great strategy, I just have a hard time paying enough attention to quick peaks in prices to do the quick flips. I prefer the low maintenance route of just holding on to it for a few years until the ROI hits a decent number. helps with my sanity and all the things that are currently fighting for my time.
Excellent video. Totally agree, you couldn’t have put it better. I have ‘toyed’ (like the pun?) with the idea of turning this into a living and it would not work. The sheer amount of reduced Lego you would need to buy each year on top of the total inventory you would need behind you along with the uncertainty of what’s happening beyond say 5 years is too challenging. Top up salary - yes. Totally living - very difficult and way too risky for those sums of money.
Absolutely! It's quite the process to build it up. It'll be nice a few years from now when we can see the fruits of our labor.
Great video really broke down the numbers
Glad it was helpful!
the REAL question is, can you get the supply to sell enough to live reselling lego
Good question, I think the answer to this is yes as long as your business model is based around buying sets at retail prices and waiting / holding for 2 - 3 years prior to selling. This allows for all retail stores to be a method of sourcing.
Hi Dave just thought I should let you know. This video was really hard to follow. I could only get through the first 8 mins as it felt like it was written by a law firm. Lol please I mean no disrespect I have found your other videos awesome and very easy to understand and extremely useful. Again I mean no disrespect. Keep um coming
Sorry to hear that, I can be a bit of a numbers guy sometimes and probably went in depth on those numbers a bit much for the average person. I appreciate the feedback :)
@@ScotsToys lol yeah i felt i had to say it and hoped you wouldnt get to upset with it as im sure im not the only basic skilled human that follows you lol , love all the other vids so far mate im picking up a lot of useful hints and tips :)
Awesome video Scot
Glad you enjoyed it
I agree, you can make a money reselling Lego. But you need to calculate what I called a ‘knock out rate’. What’s the lowest you need to make a year to break even on bills, tax, rent etc.
However, I do also believe if you resell Lego, you need to invest into other areas of reselling such as trading cards and technology. Lego is only a piece of the pie. In terms of investing, In terms of making a living in Lego investing, I feel like you’ll need to have a large amount of money on the side to hold long term (1 year+) rather than short term (1-6 months).
I’m starting reselling as my side hustle while I study my Masters, because I have a very good knowledge in what’s worth what. I always believe that money exists, and through intuition and instinct, you can earn a living from it.
FLX, you've been doing great on the reselling front. Very diligent attention to marketplace / ebay has been paying off well for you. Keep up the awesome work man!
Awesome, Scot! Loved watching the feedback! ^^ So basically ur saying DYOR, pick the right items for the right prices^, HODL m and know when to SODL m.. So similar to Stock/Crypto trading hehe. Thanks again ^^ ( We are all Satoshi ;-)
You got it! I know that sounds like a simple "Time the Market" type advice, but the reality is that since LEGO doesn't fluctuate in quite as wide of a swing, but instead sees a gradual incline over time. So buy under MSRP while a set is available and then hold until the natural incline increases to the ROI you are looking to achieve. This could take 1 year, it could take 10 depending on your target and the set.
Lol please don't dump your btc satoshi
@@lucian5304 Diamond Hands
Great video. I focus my investments on the larger sets and hold for 3+ years. Use eBay as a reselling platform. Amazon has become increasingly more difficult over the years to hock your Lego wares.
As an aside, that poster Satoshi may be trolling. His screen name is a pseudonym for the group that created Bitcoin. Kinda bizarre he’s focusing any efforts on flipping lego.
I guess whether he was trolling or not, it seemed like a fair question that I can tell a lot of people were really interested in hearing about. It was fun to be able to share my take on the whole thing as well.
Make a lot of a sense, thank you
You're welcome!
Lol Satoshi Nakamoto is not actually a real name it's a pseudonym for the guy that invented Bitcoin.
ROFL... that's soo funny... shows you what I know about crypto lol