The True Cost of Hot Wheel Hunting

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Face it, hunting for Hot Wheels, as addicting and as much of a rush as it can be, takes a lot of time. As the saying goes, time is money. You might be wondering, how much money does the Hot Wheel hobby cost? Time to do that math!

Let’s keep everything well rounded and easy for this example. If you have a job, you get paid for your time to do the work.

The federal minimum wage is $7.25 an hour. So, at minimum, your time hunting costs at least that, even if it is your hobby. You have to approach it from this angle because if you aren’t earning money, you need to know how much your time would be worth if you were earning money.

Next, according to AAA, the average annual cost of owning a vehicle in 2019 was $9,282 a year, or $773.50 a month. That is $25.78 a day and $1.07 an hour. If you consider Hot Wheel hunting as a job of sorts, you might also want to consider the federal cost per mile rate, which is currently 57.5 cents per mile. That would be money you could be getting if you were not working for yourself. Otherwise, this doesn’t exactly fit into the equation because if one is using their own car, I believe the AAA rate accounts for the cost per mile in the ownership.

Hot Wheels cars can range in price. But, lets just take the mainline cars, and give them a rounded price of exactly $1.00. This example will be for just a single car

The equation is this: cost of time + cost of Hot Wheels + cost of car ownership = true cost to hunt Hot Wheels

If you spent 1 hour hunting for 1 Hot Wheel, the true cost of that car to you would be $7.25 + $1.00 + $1.07 = $9.32

Clearly those numbers can be adjusted accordingly. If the time is less or greater, if the amount of cars are more, and if you go to out to hunt multiple times a week. Even though you are paying a somewhat fixed price for the cost of ownership for your vehicle, the example is only using the average. That cost can technically be higher or lower as well.

So, that means you have to sell your $1 car for $9.32 and that still won’t get you to the break even point. Then there there is the second part of the equation.

The second part is selling and shipping and supplies.

Fees to post on eBay, use Paypal, and have shipping supplies can sometimes run up to 50% of the total cost. So, to sell that $1 car, to break even just from hunting for it, you have to sell it at $9.32. But if you don’t want to take a loss with fees and shipping and supplies, you would have to put the price up to about $15 dollars. That begins to make it a hard buy for someone who might hunt these cars themselves, and doesn’t make $15 an hour at a job. If you make more than $15 an hour, it still is hard buy when you only get 1 car. You might as well go spend an hour hunting and find 15 cars.

It is very hard to make money from buying mainline Hot Wheels on the pegs and reselling them online. There is money to be made, but you have to hunt, you have to hustle, and you have to work very, very hard. You also have to get a hold of cars that can turn higher profits, such as Super Treasure Hunts, or joining the Red Line Club and buy and flip those cars. I will say though, 100% profit is 100% profit, whether you make a dollar profit off a dollar car, or a $30 profit off a $30 dollar car, math is math. You just have to decide what is worth while to you.

Scalpers: Those Pesky People who get to the Pegs First

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The word scalper according to Google is defined as “a person who resell shares or tickets at a large or quick profit” If you are familiar with the Hot Wheels hobby, you have no doubt heard this word used often. It is not a word or person that someone wants to be…or is it?

I think the true issue people have is this. They are mad at “scalpers” which really means anyone who finds cars on the pegs at a store before they do. I saw a post on social media the other day about how crappy a person’s day was because they walked into a store just to have someone pull a super treasure hunt out of a case right in front of their eyes. When it is all about the super treasure hunts, there really isn’t a lot of depth to the hunt or hobby at that point. Especially if you consider yourself to have the rest of your day deemed bad because of it. This is silly to me. Pallet raiders and door warmers and the over used term “scalper” are just ways to blame others for something you can’t control.

Hot Wheel hunting is a very time consuming, expensive, repetitive, tedious, and patience practicing hobby. I’ve seen so many people get into the hobby at full throttle only to get worn out, frustrated, and low on funds in a matter of 6 to 9 months because they did not understand what they were about to get themselves into. Many people are considering this an investment hobby as well. Now days there are so many stories of childhood toys worth thousands of dollars tucked away in closets and attics. People create value and things get expensive for a time, but everything is cyclical. Those of us who have been in the hobby for more that a few years, in many cases, decades, just learn to be patient.

A number of months ago, a video was going around the internet showing the popular author, entrepreneur, and speaker Gary Vaynerchuk attending a garage sale. The part I am referencing starts at 11:54 and goes to 15:07. Here is a quick clip on Instagram if you don’t want to watch the whole thing linked above. In the video, he came across a tub full of diecast cars, haggled a bit with the sellers, and then purchased the lump sum. He then went back to his car and quickly Googled some of the cars in his recent purchase to find that some of them were worth already more than what he paid for the bunch.

At first I found myself very angry at that video. Now every person who owns any diecast car is going to think they have some gem worth something expensive and make the diecast hobby that much more expensive, cluttered, and inflated. Plus all these people are only doing it for the money. They aren’t into it for the collecting or the way the cars make them feel.

Then I started thinking about it more and realized it’s not a big deal. If you have a product that you can somehow find a buyer to buy it for more than you did, props to you. I do that. When I have found a fresh case on the pegs before anyone else, I will buy all the cars I want, and if I have extra, I will sell, trade, or give them away. I wouldn’t consider myself a “scalper.” It just comes with the hobby. The only issue it really creates is that now, if you are really into the hobby, the prices of things become incredibly inflated. But that is a cycle. Once people realize that it is not the most lucrative thing because you have to work hard and hustle, prices will get back to acceptable rates. You just have to be patient.

We watch people on TV flip all kinds of things. Between Flip or Flop on HGTV, Fast N’Loud on Discovery, or an old school favorite like Pawn Stars, all of these shows teach people how “lucrative” flipping or buying and reselling can be. But not everyone is cut out for that and not everyone has the skill, talent, work ethic, or patience to do that. In the end, if you really want something, you’ll have your own opinions on how to get it and at what price. When it comes to selling, it is the same thing. That cycle is what keeps the economy rolling along. For all of those people who have found their niche and are sticking with it, they will know how to be patient and play the long game. That is when the most work, the most fun, and the most profit all start to coincide and true enthusiast has been made.

Buffet of Topics for Today

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I didn’t get this post done ahead of time or scheduled on my regular Thursday at 10 time, but that is ok. There are a lot of topics I would like to cover quickly in the blog. Some are new thoughts and some are follow ups so hopefully you enjoy.

A week or so ago was Ford week on the blog, at least that is what each topic was about that week. Since the blog about the Ford Bronco, Ford has announced that they will not debut the Bronco until 2021. That is painful. I am tired of all these car companies “jumping the shark.” Make the car and we will give you money. That is not a hard equation. Side note to the Ford topic as well, my wife and I still haven’t filled out our paper work to get $20 for our Ford Focus issues. Maybe I should get on that.

Next up, NASCAR is BACK! It has been a little different than normal. No fans are in the stands, not even the announcers are present at the track. There is very limited crew and drivers must wear masks when not in the car. Last night Kyle Busch (my favorite driver) caused a bit of anger filled drama when he bumped Chase Elliott causing Chase to wreck. I am not going to defend Kyle, I am simply going to say, it really does look like he was driving by his mirror. Ryan Newman is back in the car after his crash at Daytona. Matt Kenseth has replaced Kyle Larson in the number 42 after Larson said a bad word during iRacing. I am excited for the next race at Charlotte this weekend.

I am finally getting back to Hot Wheel hunting and have been thrilled to find some really nice stuff on the pegs. I am hopefully going to be making videos of all the find that I have acquired, so keep tuned to the All Out Octane YouTube channel for the latest Hot Wheel and Matchbox finds! Both the blue and orange brands have some amazing cars coming out this year, along with great recolors of old cars, and it is nice to be able to share them with all of you!

 

*For fun- Comment below, would rather have a 2020 Chevy Camaro, a 2020 Ford Mustang, or a 2020 Dodge Challenger?