Have We Been Selling Wrong?

[@benjaminkappler2255]

Would love more videos like this. Fundamentals of selling, fundamentals of listing, optimizing both, overview of margins, etc. Love the CATRP crew and all that you do! Thanks guys.

[@Retro_Treasures]

I'm an everything seller on ebay and I have a general formula that takes into consideration cost, size, shipping complexity, and 90 day STR. I have standardized on sending 20% seller initiated offers on pretty much everything. Since my COGS are very low (12% of sales) I can do 80% of top value all day long to get that fast nickel. My fast nickel percentage drops the longer the item has been in inventory. Really old stuff with lower STR I won't bat an eye at a 50% offer just to get rid of it. I've also started dialing in my sourcing to mainly items with a 100%+ 90 day STR. The goal is to get to a steady state store where I source, list, and sell 40-50 items a week.

[@BaileyABerry]

Really appreciate this video and the insight of how you apply these models into your business along with how they affect it. Just got approved to sell on WhatNot and can’t want to see what the future holds for my reselling business!

[@ChayseGrizzell]

I was an economics major and the “fast nickel” is undoubtedly more profitable if you have the ability to generate a steady flow of revenue and inventory… It’s easy to understand. Would you rather sell 10 items for $10 a piece, or 20 for $7? Lower profit margins, but higher net profit. Have you guys ever considered having your own booth at conventions or doing a pop up shop? Fast nickel but with higher margins.

[@dialedinGandC]

I'd bet this would take too much time to be worth it for them. Inventory doesn't seem to be a problem for them currently.

[@ChayseGrizzell]

@@dialedinGandC yeah, they are definitely fine without it. Just curious if it was something they've ever considered for content purposes.

[@kryptoniite_]

It's great turning inventory over in less than 30 days, but that comes at a cost of 7-15%. On $2M in sales in a year, that means $140,000 on the low end and $300,000 on the high end before fees etc. Up to you to decide whether that would make or break the business and whether sitting on inventory might actually benefit. All comes down to sourcing and cash flow.

[@Ben2024-j2t]

Yeah, but that assumes that sales volume would be the same with both approaches. If you assume they can move 50% more inventory, $2mm becomes $3mm, so your margin can go in half and your gross profit is the same. Of course your overhead is likely to go up because your labor and materials costs would be higher, so your margin just needs to drop by less than your volume increases.

[@MrJohnSmalley]

Fast Nickel's biggest benefit is compounding profits more quickly. If you can compound profits 12 times a year because you're selling stuff within 1 month, then you are going to be so far ahead of any other traditional forms of investment that it is quite ridiculous. The stock market averages 10% in 12 months. But you would be doing 10% every 30 days, which is the equivalent of 285% ROI over the entire year, give or take 😮😳. That kinda power is why Chase has 10s of 1000s of dollars worth of video games and other collectibles in his personal collection.

[@kryptoniite_]

@@MrJohnSmalley i resell as well (just more variety than only video games) i understand compounding profits. some of my inventory will sell within days of listing, other items will sit for over a month, but I don't have anyone on payroll and cash flow is not an issue as this is just an extra income source for me. the only hurdle everyone has is sourcing the kind of volume needed to consistently compound their investment reselling. there is no compound to be had when you outsell at the rate you can buy because not enough sellers. from the insights we're given, that does not seem to be an issue with this business right now.

[@MrJohnSmalley]

@kryptoniite_ Sure, if sourcing is a major issue, then the fast nickel model may not be the best, but in a lot of cases, compounding profits will surely outpace the slow dime method. Plus, if you cross into the 7 figure revenue selling preowned items, then you probably don't have a sourcing problem and may never will. Afterall its pretty safe to assume that there are literally billions of copies of video games in existence or was at one point. Games like Mario Kart for the Wii have sold almost 40 million copies, and that's one title out of 10s of 1000s published.

[@dandehaan]

I’d be curious to know the impact the fast nickel model has on a team. Does processing and moving out inventory at a faster pace lead to burn out? Is it more intense and stressful or no difference?Pace After the Right Price?

[@bmooresaxy]

I lean slow dime unless it takes up a ton of space, then I price very aggressively. For most small stores I feel like slow dime is probbaly best. Most of the challenge of selling in this category is actually finding stuff, so when you find good items maximizing is a great strategy. For you all, fast nickel is still great as you all are overflowing with inventory most of the time.

[@Ceo.hustle]

Great video - I like how you really took this question head on. I think a lot of us myself included were unsure about this method. As someone who does both I certainly see the pros and cons of both.

[@Johnny82Utah]

I'm like a hybrid, I like the slow Nickle but have offer settings to always move it quick or sell it for what I think it should go for.

[@davidpirnik6077]

It is interesting about different models because Phoenix resale business model is all about the handles quick and fast sells gba, game boy, Tetris, Pokemon games. Got to collect them all Pokemon, nailed it.

[@deanshelley5511]

For Australia I follow 15% on higher end products and 25% on lower end stuff profit for what I pay makes more sense as we pay 10% tax on everything sold

[@pnx_world]

Defintely a mix for us. we just started doing this as a way to basically make game collecting self sustainable and get some money into savings/paying down debt. a few things for us. we dont just base it on market value. but what percentage im in base on intial investment and market value. the value of the item, size, how well or easy it is to store without it getting damage plays a big part in this decision. say we recently found some x-men toys and those i started listing on ebay and they moved but i decided ot join what not to be able to move them quicker and ive sold more in one week for more money than i did on ebay in 2 weeks. this way i dont have to keep bins of these around and i dont risk them getting damage. sometimes its just not worth it to go through the trouble of maximizing value if i have to mail 100 of one item separately as opposed to sending them in bigger chunks out for 10-20 percent less of value specially if say i got the lot at less than 50-40% of its value. it provides a bit more wiggle room. but say if i find a t-shirt that sells for 100 or say an ipod or a set of dvds. that are easy to store away almost as part of your own collection/things. i dont mind maximizing that and letting it sit until someone thats willing an able gets it.

[@Boondock77]

For me it’s a slow dime for Amazon since I only do FBA with them so no storage issues. Varies for Ebay only because of space. I don’t mind sitting on stuff for a little bit until I run out of storage room then I have to move things out or buy an extra storage unit.

[@rd2wrldchamp912]

i strictly sell on ebay and i would say 95% of my store is fast nickel at about 10% off of market prices to move stuff quick. 5% is high end items with good sell throughs and i price them at market.

[@officialfoxelgames]

I'm mostly dealing with TCGs - and I have like 80% fast nickel with new sets coming out every 3 months and around 20% of slow dime with collectible cards that just sit around long until someone decides to buy them. Though I'm thinking about starting your 10 dollars series on something else, I have a lot of flea markets in the area and I'm not sure what to look for yet...

[@petermysels8644]

I'm curious, how do taxes play in for you? Buying at 50% value for instance and selling for 85%, but then having to pay for overhead and then taxes can really eat into profits. I think a lot of smaller resellers and home business individuals neglect this aspect and can run into trouble when the IRS comes knocking. I would love to see a video on how you handle your taxes each year, what you can write off, and general tips and tricks you've learned over the years that you could recommend to avoid overpaying on taxes. Thanks for all the wisdom, gents!

[@earlgendron4893]

Taxes are only on profits. So on a 12 item if you buy it for 6 and sell it for 10, you are paying about $1 in taxes before expenses. With 20-30k in sales I have had a loss on my taxes after deductions the last two years

[@HOMIE_Sanity]

If you want fast just source items that have 100% sell through rate or higher. You sell fast and for full value. If I have less money into it I’m more inclined to let it sit to maximize and less willing to let it sit if I have more into it. Freeing up capital is always a plus but when you have next to nothing I’m gonna hold onto it if the profit margin is really high unless it’s a slow mover. I can wait for the right buyer if i have next to nothing invested into it and depending on the chance of acquiring that same item again. Rarity has a huge factor on things. But if it’s been sitting for a while and I have nothing into it ima jump all over any decent offer. Haha

[@MrBUYaLOT]

When to slow dime= item is very unique or scarce, condition is high, or values are increasing.

[@christopherthomas9355]

Excellent topic and a great starting point, Chase. Could you expand on the "buy cost" element of this? As you and Al Pal pointed out, it al depends on how fast you can acquire inventory and at what cost. Thanks!

[@FO0F]

Access to inventory is the number 1 factor when it comes to whatever model you use. I believe

[@earlgendron4893]

For me it’s time - as a part time reseller with 2 kids under 7 I just don’t have time to list 10 things a day, never mind build a KZbin community to transition to whatnot. Heck I don’t have time to list 2 things some days

[@westonsunnenberg3717]

Inventory that sits on a shelf is 0% profit. Even if you get full value say a year down the road, i could have taken a discount on it earlier and invested the money back into much faster moving items. Also these models very depending on the outlet you are selling from. Also size of revenue stream can dictate which method works best for you.

[@undamned]

I'm definitely a slow dime seller. Mostly because I don't have a rapid influx of inventory, so no reason to sell out fast.

[@LUMBEEPHENOM2012]

I’d love to know how you decided what goes where? What makes you put something on Amazon compared to Whatnot / eBay

[@trevor245]

I feel like you start out basically having to do the fast nickel model. Once you start growing and having more inventory only then can you afford to start doing the slow dime part as well. The reason that in your case the fast nickel part is making more and more sense is because I believe that the audience you have built up allows for high quality and quick sourcing while also having many eyes on products sold through platforms like whatnot. I do not think this would make much sense for a gamestore owner for example. Ofcourse you always do both. It is also ofcourse highly dependent on the item as you guys also mention.

[@Lotus1085]

1) Amazing content. 2) Hire me to be your cable manager jesus yall need it LOL

[@davidpirnik6077]

Yeah but if you look at it this way even though you don't get top 70 to 80 percent of the way most stores don't even do that. On average you would get 1/3 for the game on average but if it's a rare game in good condition you will get half for it. Sounds all some to me get the money fast he wins and you not to do the work plus no one wins at the end to maximize profit give and take on both sides.

[@superiorandrewgamingandrea8347]

rn jnow i have 30% fast nickle and 70% slow dime right now but im a very smaller resaller and garage sales just started going around here in northeastern ohio but i just started doing more of a fast dime bc i have a lgs near me that i have been doing alot of bussiness with latlely

[@Mikedadof2]

You should write a book about selling chase, you may young but years of experience

[@seth7529]

25% profit within a week if you purchase at 50% or less value, is a no brainer to me UNLESS its an extremely high value item and has some demand

[@Kevin87A]

Pretty sure WalMart already proved the fast nickel model works

[@HiTeck_Redneck]

Fast Nickel? I've seen your Whatnot... You're at least doin a Fast Quarter now

[@Thectpicker]

FAST NICKEL GANG!

[@MrBooyahmofo]

Do yoy guys have a website where you sell games? And if not why not? just curious

[@catrpcrew]

No we don’t. We don’t want to compete in Ad spend, SEO, and more. We’d rather use selling platforms that have millions of built-in users and buyers

[@MrBooyahmofo]

@catrpcrew Makes sense!

[@MrJohnSmalley]

@catrpcrew in all fairness, your ad spend would be minimal since you have a large social media presence. You would surely sell a notable amount having your own website. Maybe not as much as eBay, WhatNot, or Amazon, but it wouldn't be a wasted effort starting a website, especially if you kept the other platforms running.

[@ZackMuffinMan]

Hello!!!

[@yenterpriseonebay]

Maybe it's just me but 85% of market value doesn't seem like fast nickel still... 50% of market value seems more fast nickel because it is half of a dime lol.

[@Hossyboy420]

Yeah…. Idk why they refer to it like that

[@SackvilleSells]

85% feels more like what the takeaway is when selling at market value. Unless you have your own online store, platforms like eBay and WhatNot are going to take a cut of your sales, and then when you consider taxes and shipping, you're down in that 80-85% anyways.

[@SlimAdventures]

What?!? TOP DOLLAR is 100 a nickel is 05% not 25 or 50… a dime is 10. I don’t think that’s how it works

[@DarKing131]

Yeah their metrics are squewed because of their fans overpaying on whatnot. If they didn’t have a following on youtube they would not make nearly as much money on whatnot.

[@MrJohnSmalley]

Fast Nickel vs. Slow Dime is more of a saying, not a percentage metric. Selling at 50% of market value in the vast majority of situations is not nessacary or even required for the end customer. The reason they say 85% is Fast Nickel is because if your giving your customer a 15% discount off the market value with a video game then you have a incredibly high likelihood of being the cheapest copy of that video game around. And if that is the case, yours will be one of the first to sell because you are the lowest price. Selling at 50% is a bit silly if it would still sell just as fast at 85%. Fast Nickel vs. Slow Dime is more about being the cheapest on the market over being above or at the market and waiting longer on the sale just to make an extra 5 or 10%. Nobody sells gold bars at 50% value for a reason 😅. If the item is in high demand, then a large discount is never necessary (Economics 101).

[@RileyElectricalWorks]

the market share %

[@evanmccombs8165]

CAN WE GET MORE MERCH LOL

[@meisteryodaseinvater2981]

greetz outa germany 🖖😊

[@Jameson11ink]

🎉

[@gilly8966]

Keep up the great videos and work love all the content and Chase please hook me up with the Fortnite WILDCAT skin code please lol 😂 …. please lol😂 love all ur guys videos have been watching u guys since u we’re working out of ur basement still enjoy everyone of the of videos to this day still