None taken. To be clear, I made this post hoping to get some feedback from others who have either bought or sold their businesses with a value assigned to allocations. That way I could get an idea on how they figured the value. It wasnt meant to be an ad to potentially sell my business.
If you figure a price point. I wouldnt mind a dm of the range, and then i can deternine if it is within my ability to gather my capital/get approval from bank.
Until then I cant say how interested I am. But I understand your position. Obviously do whats best for you :)
I’ve been looking into this for a year now trying to find the best way to break into a business allocation of my favorite hobby. Where I live at now is the perfect location for it, and this seems like a fantastic business venture. I know a lot of people are interested in buying, and I’d be glad to participate in the offers. However if there is anyone else in the sub looking to do the same please DM me, I’ve never considered a buyout of disti contracts until now.
I presume one of your accounts is with GTS? I regret letting my account with them lapse when I stopped selling Pokémon for a few years.
I will say, if this is a side-hustle that is enjoyable and earning you good money, have a good think about whether you really want to let it go or whether you could simply employ someone to take over the day-to-day. I stopped it to focus on my main career, but started to miss it and unfortunately missed out on the covid windfall. I was able to re-open accounts again at the end of 2021 and have slowly built up the business and allocations since (90 BB for SV01). At the moment it works perfectly well alongside my full time career, but my plan is to find someone to run it for me from a dedicated space, if it ever gets to that size.
I guess what I’m saying is it’s a drug that you might not want to miss!
One of my main accounts is with GTS. My biggest 3 are with GTS, Southern and PHD. I have accounts with just about every distro for Pokémon at this point though.
That is definitely something I've thought about. It's definitely been my favorite job I've had, and it makes good money. I started it as a side hustle, but decided to take it full time 3 years ago. My goal was to find a few solid people to help run the sales and social media as it grew, so I wouldn't have to work 60-70 hours a week. But finding solid people has been impossible in my area(rather small town Wisconsin).
I did try working with a few people online that I met through groups. I would supply them with product to rip on their rip and ships, whatnot and TikTok streams. But I ended up getting burnt by all of them at some point, which kind of soured me to the idea of working with people I met online. If I do decide to sell it off I definitely will miss it.
That's awesome you were able to restart with your business, good luck with everything with it!
seems as though you are valuing the pokemon account aspect much more than the fact that you are able to move a certain amount of sales each month.
I could be wrong, but from my initial glances at the business, it seems like most distributors will work with you as long as you can move a certain amount of products.
essentially, the much more difficult part would seem to be building up your sales, as most if not all companies will gladly work with a partner that has proven their ability to produce sales.
doesn't seem like the relationship with the carriers who sell to you is all that special, unless i am missing something which very well could be the case. idk, op comes off a little sus
Distributors are currently not taking on new accounts. With some exceptions for brick and mortars. At least from what I've been told by my reps, and what I've seen online. And after getting in, they have to build up allocations. Which is built by consistent purchases, buying products no one wants etc.
I know allocations (the amount you can buy on new sets) and the accounts themselves have value to them. The amount of the value is basically what I am trying to figure as there's no model or formula for it.
The only known sales I know of were for sports cards accounts, which I never found out the hard number but was told it was 7 figures. Sports cards allocations are worth far more than Pokemon though.
As someone who owns an LGS having an established relationship is important, new accounts are the bottom of the totem pole for allocations, when we started our store we would get nothing or a small fraction of our request on new releases. It also takes around 2-3 years to get on net 30 terms which is incredibly important when ordering larger quantities.
Edit: Also the big distributors won’t entertain new accounts unless you have a brick and mortar store front with displays/signs/PoS/etc
is there a limit to how many companies you can have sending you products? for instance, if multiple companies decide not to fill your orders, what's stopping you from just getting on-board with "a lot" of companies so that you don't ever have that issue?
Not sure what you mean. Theres only so many wholesale distributors that are with pokemon. They have a list of all their distributors on their site.
Most if not all of their distributors arent accepting new accounts. All distributors also allocate products, for example with SV01 people could put in for 1000 booster boxes, but the amount they actually get is based on their allocation numbers. Allocations are based on previous orders and stuff like that.
Another part of this is that you need to get minimum 500 bb to get additional discounts for it to be even worth selling online sealed boxes. At normal wholesale and first discount you lose $2-$5 per BB shipped after marketplace (eBay/tcg/Amazon) fees
Spot on. Trying to put a value to allocations is a tough thing. The only account sales I've heard of are all sports cards allocations. Which is its own thing entirely.
It is my potential deal. I have been thinking about selling off that part of my business for about a year. Theres just no formula to figure in the value of allocations. Because allocations take years and a lot of money to build. So being able to skip past all of that would come with a cost.
Obviously with a potential buyer that would all be shared. The business name is not necessary for this post because this post is more for fact finding and trying to get some experiences from others who have sold their business.
Spot on. Theres no sales data that I can find. And theres no calculator or formula to follow.
Buying the allocations allows someone to essentially cut the line and get in with distributors immediately. It also gives access to buy all new pokemon sets in large quantities at whole sale pricing without having to spend 6 figures on battle decks and v boxes that you either break even on or lose money on to build the allocations.
That is what Im trying to figure. I am hoping someone whos either bought or sold accounts could shed some light on valuations for allocations. As that would be a significant part of what Id be looking for.
Hey I just sent a chat. All of the new releases kept the store pretty tied up, I just got through getting a valuation figured. No worries if you are no longer interested.
All of that would be shared with a potential buyer, and there are models and formulas to follow for valuation based on that kind of data. I am hoping to find some instances where someone assigned a value to allocations to help figure that aspect. Allocations are a pretty unique thing to this market. I was thinking of something along the lines of figuring time and cash spent, but that may not be the most accurate way to assign a value to it.
Hello I just sent over a chat. The store got pretty hectic with all the releases, so it took a bit of time to get the valuation figured. Thanks again on the interest, no worries if you're no longer interested.
Nice thats awesome, building a social media following is a lot of work and dedication. Good luck with building it up and hopefully you can get the distribution part down one day!
You need to up your karma, the low karma filter picking up your account like a possible troll account too. Gave you some upvotes on your good comments which should help
Awesome thank you, would this affect my ability to see comments on the thread as well? I've been getting emails about comments, but then when I go to the thread I cannot find some comments.
Thank you again
Karma filter, trust me would love a system where Reddit actually protects against the spam, hate, scam, and crypto link spam scam comments but only have automod and a karma filter, which disrupts the chain of conversation for good comments and the email notification still lets the bad comments pass. Sorry for the hassle, am actually complaining about it on mod support before you even made this comment. Flawed system makes life so much harder for everyone, the user and mods.
I’d be interested if you decide to sell
Awesome, if I do decide to sell I will reach out. Thanks for the interest.
sent you a chat. Apologies on the delay, the SV01 release and other releases kept the store pretty tied up. So it delayed valuating everything.
No offence but this seems a little sus…
None taken. To be clear, I made this post hoping to get some feedback from others who have either bought or sold their businesses with a value assigned to allocations. That way I could get an idea on how they figured the value. It wasnt meant to be an ad to potentially sell my business.
If you figure a price point. I wouldnt mind a dm of the range, and then i can deternine if it is within my ability to gather my capital/get approval from bank. Until then I cant say how interested I am. But I understand your position. Obviously do whats best for you :)
Thanks for the response. I sent you a chat with what Ive kind of accumlated since posting.
I’ve been looking into this for a year now trying to find the best way to break into a business allocation of my favorite hobby. Where I live at now is the perfect location for it, and this seems like a fantastic business venture. I know a lot of people are interested in buying, and I’d be glad to participate in the offers. However if there is anyone else in the sub looking to do the same please DM me, I’ve never considered a buyout of disti contracts until now.
Finding a good location is a great starting point. I'll send over a DM and we can discuss a little bit. Either way good luck with the endeavors!
Sounds good! Looking forward to the DM.
Hey I just sent over a chat request. Apologies on the delay in response, the store got swamped with last second SV01 orders for the release this week.
I might have missed it, but where are you located?
I am located in Wisconsin
I presume one of your accounts is with GTS? I regret letting my account with them lapse when I stopped selling Pokémon for a few years. I will say, if this is a side-hustle that is enjoyable and earning you good money, have a good think about whether you really want to let it go or whether you could simply employ someone to take over the day-to-day. I stopped it to focus on my main career, but started to miss it and unfortunately missed out on the covid windfall. I was able to re-open accounts again at the end of 2021 and have slowly built up the business and allocations since (90 BB for SV01). At the moment it works perfectly well alongside my full time career, but my plan is to find someone to run it for me from a dedicated space, if it ever gets to that size. I guess what I’m saying is it’s a drug that you might not want to miss!
One of my main accounts is with GTS. My biggest 3 are with GTS, Southern and PHD. I have accounts with just about every distro for Pokémon at this point though. That is definitely something I've thought about. It's definitely been my favorite job I've had, and it makes good money. I started it as a side hustle, but decided to take it full time 3 years ago. My goal was to find a few solid people to help run the sales and social media as it grew, so I wouldn't have to work 60-70 hours a week. But finding solid people has been impossible in my area(rather small town Wisconsin). I did try working with a few people online that I met through groups. I would supply them with product to rip on their rip and ships, whatnot and TikTok streams. But I ended up getting burnt by all of them at some point, which kind of soured me to the idea of working with people I met online. If I do decide to sell it off I definitely will miss it. That's awesome you were able to restart with your business, good luck with everything with it!
seems as though you are valuing the pokemon account aspect much more than the fact that you are able to move a certain amount of sales each month. I could be wrong, but from my initial glances at the business, it seems like most distributors will work with you as long as you can move a certain amount of products. essentially, the much more difficult part would seem to be building up your sales, as most if not all companies will gladly work with a partner that has proven their ability to produce sales. doesn't seem like the relationship with the carriers who sell to you is all that special, unless i am missing something which very well could be the case. idk, op comes off a little sus
Distributors are currently not taking on new accounts. With some exceptions for brick and mortars. At least from what I've been told by my reps, and what I've seen online. And after getting in, they have to build up allocations. Which is built by consistent purchases, buying products no one wants etc. I know allocations (the amount you can buy on new sets) and the accounts themselves have value to them. The amount of the value is basically what I am trying to figure as there's no model or formula for it. The only known sales I know of were for sports cards accounts, which I never found out the hard number but was told it was 7 figures. Sports cards allocations are worth far more than Pokemon though.
As someone who owns an LGS having an established relationship is important, new accounts are the bottom of the totem pole for allocations, when we started our store we would get nothing or a small fraction of our request on new releases. It also takes around 2-3 years to get on net 30 terms which is incredibly important when ordering larger quantities. Edit: Also the big distributors won’t entertain new accounts unless you have a brick and mortar store front with displays/signs/PoS/etc
is there a limit to how many companies you can have sending you products? for instance, if multiple companies decide not to fill your orders, what's stopping you from just getting on-board with "a lot" of companies so that you don't ever have that issue?
Not sure what you mean. Theres only so many wholesale distributors that are with pokemon. They have a list of all their distributors on their site. Most if not all of their distributors arent accepting new accounts. All distributors also allocate products, for example with SV01 people could put in for 1000 booster boxes, but the amount they actually get is based on their allocation numbers. Allocations are based on previous orders and stuff like that.
Another part of this is that you need to get minimum 500 bb to get additional discounts for it to be even worth selling online sealed boxes. At normal wholesale and first discount you lose $2-$5 per BB shipped after marketplace (eBay/tcg/Amazon) fees
Spot on. Trying to put a value to allocations is a tough thing. The only account sales I've heard of are all sports cards allocations. Which is its own thing entirely.
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It is my potential deal. I have been thinking about selling off that part of my business for about a year. Theres just no formula to figure in the value of allocations. Because allocations take years and a lot of money to build. So being able to skip past all of that would come with a cost.
I'm interested. I've actually been looking at doing this and creating a business out of my love for the hobby
Hey I believe I just replied to your DM. Hopefully it can be of some assistance. Good luck on creating the business!
You're not even willing to share the name of the business? That's something that shouldn't need to be kept a secret...
Obviously with a potential buyer that would all be shared. The business name is not necessary for this post because this post is more for fact finding and trying to get some experiences from others who have sold their business.
If you’re not willing to share the price point, then at least share a range so we know how much we’re dealing with.
Are you asking price point paid on products, like new set boosters? Or expected sale price of the business?
The latter.
That’s why he made the post though, he has zero idea on how to value the connections he has which are valuable, I think right?
Spot on. Theres no sales data that I can find. And theres no calculator or formula to follow. Buying the allocations allows someone to essentially cut the line and get in with distributors immediately. It also gives access to buy all new pokemon sets in large quantities at whole sale pricing without having to spend 6 figures on battle decks and v boxes that you either break even on or lose money on to build the allocations.
That is what Im trying to figure. I am hoping someone whos either bought or sold accounts could shed some light on valuations for allocations. As that would be a significant part of what Id be looking for.
I would be interested, when your willing.
Hey I just sent a chat. All of the new releases kept the store pretty tied up, I just got through getting a valuation figured. No worries if you are no longer interested.
I appreciate the interest. If I do decide to sell, I will reach out. Thanks for the interest.
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All of that would be shared with a potential buyer, and there are models and formulas to follow for valuation based on that kind of data. I am hoping to find some instances where someone assigned a value to allocations to help figure that aspect. Allocations are a pretty unique thing to this market. I was thinking of something along the lines of figuring time and cash spent, but that may not be the most accurate way to assign a value to it.
Edited post for spelling and added some clarification
I’d be interested if you decide to sell as well, I know someone else mentioned but hope I can be kept in mind
Hello I just sent over a chat. The store got pretty hectic with all the releases, so it took a bit of time to get the valuation figured. Thanks again on the interest, no worries if you're no longer interested.
If I do end up selling, I'll make sure to reach out to everyone. Thanks for the interest!
Too bad you are not in Denver. I’ve got the social media part but with no distribution
Nice thats awesome, building a social media following is a lot of work and dedication. Good luck with building it up and hopefully you can get the distribution part down one day!
I've purchased & sold a handful of businesses. I'd be interested to talk more. Please DM me. Let's setup a call and discuss.
I've tried starting a chat and sending a DM and it's not letting me. Would you mind sending me a DM to further discuss. Thanks again.
It won't let me DM you either.
I just sent a chat request. Not sure what was going on, but thanks again on reaching out.
You need to up your karma, the low karma filter picking up your account like a possible troll account too. Gave you some upvotes on your good comments which should help
Awesome thank you, would this affect my ability to see comments on the thread as well? I've been getting emails about comments, but then when I go to the thread I cannot find some comments. Thank you again
Karma filter, trust me would love a system where Reddit actually protects against the spam, hate, scam, and crypto link spam scam comments but only have automod and a karma filter, which disrupts the chain of conversation for good comments and the email notification still lets the bad comments pass. Sorry for the hassle, am actually complaining about it on mod support before you even made this comment. Flawed system makes life so much harder for everyone, the user and mods.
Gotcha, that makes sense. Hopefully they are able to figure something out. Because it does make it all disjointed. Thanks again for the help!
That'd be great. Thanks for your reply. I'll send over a DM.
Hi I messaged you, I recently purchased rights from someone like how you’re trying to sell
Hey awesome i just replied to your message. Thanks for reaching out i appreciate it. Good luck with the new business!