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    2 Replies Latest reply on Nov 5, 2009 10:36 AM by phanio

    Part-Time Comic Book Sales

    Wyldfire Newbie
      Hi everyone:
      My husband has just started selling comic books at comic conventions and online. He has a small bulk lot of comics for sale ranging from $1.00 to $50. He also has some some high end comics that range $2,000 + for book value.

      This is more of a collectables online store than a physical shop.....so i'm confused on how to deal with the inventory. If I am understanding some things correctly, we do not need to claim inventory, but that seems as if we are cheating in a sense. I am confused on how to tackle this problem of inventory, especially since we've only made $44.00 thus far, it's just starting out and we've only worked one con.

      Do we need to account for the inventory? What taxes am I filing, and must I have a cogs? I'm assuming I would, but as a one person company that is selling collectibles, I'm not sure the amount of in depth reporting that i'll need to do.
        • Re: Part-Time Comic Book Sales
          Tracker
          Wyldfire:

          Congratulations on your new venture.

          I won't address the tax issue since I am not accountant. I suggest that you find a qualified one and get their advice.

          However, when it comes to inventory logistics, I've managed a variety of different programs both as supplier and customer.

          It is best not to take possession of the inventory in most cases to minimize costs and improve cash flow. This is not cheating - it just can be good business. However, the down side to passing through business to a supplier is, will you be able to retain the customer for future business? I would imagine that you are trying to get more than one sale from each customer.

          If you pass the customer information along to the supplier for a drop-ship, will the supplier try to take the customer direct?

          If you give the supplier information to the customer, will the customer bypass you in the future hoping to save money on additional purchases?

          The answer to these questions will vary depending upon your suppliers. Some suppliers do not want to deal with customers on a one-to-one basis. They prefer other businesses spend the money to market the business and to handle customer issues. However, if you are simply acting as a source buying from an individual and selling to an individual, you may be at higher risk for losing future business if you do not hide the customer and supplier from each other by taking possession of the inventory.

          Hope this helps.

          Doug Dolan
          The Solopreneur's Guide
          http://thesologuide.com
          • Re: Part-Time Comic Book Sales
            phanio Pioneer
            Not sure why you are worried about your inventory - I would assume you are running your business as a sole proprietorship - which really means that you are your business (one and the same) so it really does not matter.

            Also, there are IRS provisions for hobby businesses as compared to real businesses - right now it would seem that you are only a hobby business. Visit the IRS's website and look up hobby businesses - the IRS will explain at what point you are no longer considered a hobby business.

            Unless you are in Texas or other states that have franchise taxes (which don't apply to sole proprietorships) - you should not really have to worry about you inventory other than to keep track of what you have for your own information. Most taxing entities only care about how much you make - not really what you have. Now, this is my opinion only as I am not an accountant - but, I do think that you are overly worried about nothing.

            Business Money Today
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