The Problem With “Comps”

Card inventory has a funny way of making us feel richer than we are. We remember what we paid for the good buys, notice the latest comps, and mentally count the spread before the card has sold.

But a business cannot spend a comp. Until inventory moves, it is cash that has changed shape. It may become more valuable. It may also become less liquid, more expensive to manage, or less relevant to the customers you serve.

A card can be a great collectible and a poor piece of business inventory at the same time.

Start with the job of the inventory

Every card does not need to move at the same speed. A showcase piece can attract attention. A deep selection can create trust. Bread-and-butter inventory can keep cash moving. The problem begins when every slow card gets explained away as “part of the collection.”

Give inventory a job, a target return, and a reasonable amount of time to do that job. Then review it without rewriting the story around cards you happen to like.

Measure movement, not just markup

A 40 percent margin that takes eighteen months to realize may be less useful than a 22 percent margin you can repeat several times. That does not mean selling everything quickly. It means understanding the trade you are making between price, time, risk, and available cash.