As we have discussed, the ultimate goal of prospecting is to buy low and sell high. Assuming this to be our number one goal, it is logical to also assume that buying at the lowest possible prices will be beneficial for our cause. So it may come as a surprise that it can actually be appropriate to pay more than the current market price for a card.
Why? How can this be?
Sometimes when you’re building a stash, you may struggle to find the cards you want. When there aren’t enough cards listed on eBay to satisfy your needs, what do you do? There simply aren’t that many online card retailers outside of eBay, so sometimes you have to bite the bullet and buy what you can from eBay.
Assuming a normal amount of cards are listed on eBay (by normal, I mean a regular cycle of more cards being added each week.
Enough to meet the demand), you can find the market price for these cards. For example, let’s say I wanted to buy some blue refractors of Jake Odorizzi. If one or two blue refractors are listed each week, we can follow their sales and average them to find the market price. But if only one blue refractor gets listed over a two month period, what happens? A small supply and a high demand leads to higher prices. But they may not be justified at the time for the prospect. If the player isn’t performing at a very high level on the field, should you pay a premium for his cards, simply because there aren’t enough being listed on eBay?
My answer to this question is yes, absolutely, but only under one of two conditions.
1) The player is outperforming his prices. By this I mean the player is extremely hot on the field and has been over a long period of time, but his card prices have not yet caught up with his on-field production.
2) You are extremely confident in a prospect and that his card prices will see increases that exceed the inflated prices you are paying at some point. This would be more for the advanced prospectors than the beginners, as an advanced prospector is able to get a good feel for whether or not a guy has legitimate potential to see future value increases, thanks to their personal experience. This is much tougher for a beginner to do simply because they do not have as much experience with this yet.
You might notice that both of the above conditions end in the same place: with an eventual card value increase for your prospect. This is the important part, because if you’re not absolutely certain that their cards will see some upward action at some point, then it’s stupid to overpay.
But if you are certain (or as close to it as you possibly can be in the world of uncertainty that prospecting is), then it is in your best interest to snag the cards while you can. In these situations, the potential for future gain outweighs the risk of overpaying by a few dollars and possibly losing even more than you would by paying market price. And because the potential for gain outweighs the risk of overpaying, it is worth picking up what you can, for the prices you can get…just so you can stockpile a few cards. If you pick a prospect but have no cards of him, it doesn’t matter how high they go because you’re not going to make money off of cards you don’t own.
This is a strategy I’ve implemented on two of my bigger stashes of the last year: Wil Myers and Matthew Moore. Yes, I know I’ve mentioned these two guys a lot lately and I don’t mean to bore you by talking about the same players all the time. However, it is easiest for me to draw examples from personal experiences, and my experiences with investing into each of them have been enlightening in many ways.
Anyway, the strategy ended up working out for both. Here’s why I did it for each player:
Myers: This guy was a real sleeper if you bought in early. He went on a tear starting in mid-May, and now two full months later, he hasn’t slowed down one bit. Neither have his card values. When 2010 Bowman came out, I was able to piece together a decent stash of his chrome autos, but I wasn’t satisfied because I felt that he was undervalued and that if he continued to hit, his card prices would start to reflect his on-field performance. So I started bidding a few bucks over the market rate on his cards, happy to pay extra if it went that high because I thought he was so undervalued that I was still getting a good price despite overpaying based on current market price. I also started making some offers of over market value to pry the cards away from some sellers who were considering holding what they had at the current prices. I ended up with 25+ autos total before his prices took off, and now they’ve about doubled from where I was buying in. For Myers, it was about getting as many cards as I could before the prices caught up to the performance.
Moore: I was able to buy a few blue refractors for about $15 apiece when I first started stashing Moore. But after that, I found that the market was pretty dry. Slowly but surely, some cards were listed on eBay…a few refractors and a few Xfractors, mostly one at a time. He was looking pretty impressive late last year when I was buying, and the main reason behind picking him to invest into was that he seemed to be worth more than his cards were getting (i.e., outperforming his prices, once again). So when an Xfractor popped up, I was bidding 10-13 dollars despite the fact that they only should have been selling for about $5-$8 in a normal market, based on the price of blues. I also normally wouldn’t choose to buy a ton of Xfractors simply because I prefer other parallels for one reason or another, but it was my only option at the time, so I went after what I could. But again, I decided it was more important to make sure I had some cards of him than to hold out and wait for lower prices. And sure enough, his stuff is really starting to take off this year and catch up with his performance. A guy who leads the Minors in strikeouts two years in a row is going to get some attention…it’s just a matter of time. Well, that time seems to finally be starting.

Warning:
–While I personally feel that overpaying has its benefits in the right situations, grossly overpaying (for example, paying $40 for a card that sells for $20), is stupid. Don’t do it. Sometimes people get into bidding wars when not many cards are listed which drives the price to insane levels that wouldn’t even be matched if the player hit two homers in his Major League Debut. In these cases, let the card go and wait for the next one. For example, one of the Moore Xfractors I was bidding on ended up going for over $20. On a card that should be selling for $8 or so, I was happy to pay $10-$13, but paying $20 was something that did not interest me because that wouldn’t have left me with enough room to easily make a profitable flip even after his cards started getting some attention.
To conclude, there are certain times when it may be beneficial for you to pay a little extra to make sure you obtain some stock in a certain player. It’s not always recommended because you have to remember that the ultimate goal is to sell for a profit later, and you must leave yourself enough room between your buy point and the card’s ceiling or else you are setting yourself up for failure. But if you use this strategy properly, it can help make you more money in the future.
Have an opinion, question, or an idea for a topic? Want to share an experience? Leave a comment on this post or email me at prospectforprofit@gmail.com