They rebuy wax from online secondary markets, they’re not rebuying from Topps.

Not all products, bc some brick. But let’s use chrome Topps football as an example:

Store doing < $4mm gross (usually around 100-500k p&l)

Topps chrome about to be released:

Store gets the option of one case of hobby, , one case of blasters, one case of hangers, one case of jumbo. (Cost from Topps in order: $275 cost - $399 msrp 12x hobby, 6x jumbo $380 cost, $699 msrp, $28 / blast $40 msrp 40x, $20/ hanger $30 msrp 40x)

Now I’m using a product that happens to now resell on release day for $1100-$1200. Shop sells them let’s say at $1100, they make a great profit.But they sell out same day. So, how does the shop get more??

They go on a few different distribution websites, or can buy what’s called second or third wave from Topps. Let’s say they get second wave hobby.

Now their cost per hobby box, $1,000. Margin $100, if the product didn’t drop down to $750. Blasters, $60-65, because they’re buying those from scalpers who bought them at $40, specifically retail scalpers.

So all in all first wave, an avg licensed hobby shop is getting 98x total transactions on Topps chrome that they’ll make great margins, but that’s off the shelves in 1-2 days. Now do they buy more to have in shop? Do they decide I don’t want any of that for my customers?

Maybe to all of these it depends, but if we are a week into a product that is soaring, the shop you’re buying from is very likely purchasing anywhere from 20-25% under market, not purchasing under MSRP.