One perspective I have adopted with my original prop collecting and collection is the notion of “Prop Equity”. I think this is a viewpoint and practice that crosses over into various hobbies, but I’ve found it especially pertinent to original prop collecting due to the high cost and rarity of the pieces.
What is “Prop Equity”, and how does it relate to building and maintaining a collection?
The Limited Resources of the Average Collector
I suspect, in talking with other collectors, that this isn’t unusual among the “working collectors” (i.e. the sky is not the limit, in terms of acquiring new props). It is an expensive hobby and the opportunities typically outweigh the bank account and purchasing capability.
As such, myself and many other collectors have to constantly prioritize and reprioritize and make decisions about how to build our collections, and what to pursue and what to pass on. More, coming up with creating ways to “make things happen”.
Some collectors act responsibly, build up savings, and then hold those funds and wait – in a position of being able to act on that next opportunity.
Some buy those pieces that they desire, and figure out how to pay for it later, or buy on credit.
Others buy and sell, and make decisions about how to build a collection in making concessions as to how to best accomplish their overall collecting goals.
“New Money” vs. “Prop Equity”
I’ve personally grown my collection by restricting the amount of what I call “New Money” that I allow myself to introduce into the hobby. “New Money” are funds coming from any source other than my collection itself (trading or selling existing pieces).
Funds that are a result of trading and selling existing pieces I consider “Prop Equity”. “Prop Equity” is the collective net value of each prop in the collection.
These two concepts are key considerations for me in any potential purchase.
If an opportunity comes along to acquire a new prop, and I have “discretionary income” at my disposal, it is that much more likely that I will buy the piece.
Conversely, if money is tight, I consider other options, such as trading a piece or pieces I own, or selling a piece or pieces.
I have consistently grown my collection over time, with advantageous trading and selling (i.e. selling for a profit or trading “up” in a way that gets me more for my initial investment than the original cash outlay). Because this has been key in improving and growing my collection, I’ve found it is very important to have a good sense of where my collection stands, in terms of overall value and liquidity.
Evaluating & Managing Your “Prop Equity”
Because of the dynamics of the hobby – trends, supply, demand, competition, etc. – it’s important to constantly reevaluate the net worth of every piece, it’s permanence in my collection, and its ranking with other existing pieces as well as potential pieces.
The most complex aspect of this perspective is knowing the net value of each piece, as there are many factors that can affect the perception and the reality.
As noted, many factors of value are outside the control of individual hobbyists. You could own what is thought a one of a kind prop, and one or several could suddenly enter the market and impact (lower) the true market value of your own prop. Also, of course, a film or television show popular this year could fall out of favor over time. And, of course, dealers selling something to you at dealer prices doesn’t guarantee you can turn around and break even trying to resell the piece yourself.
Also, the way in which a piece is sold affects value. If you sell the item yourself on a discussion forum or eBay, you are not likely to command top dollar. If you consign the piece with a professional dealer, you will probably sell for a comparatively higher price, but also lose 15-25% off the top. You might get more money still in consigning the prop with an auction house, but such events are planned well in advance, so it could be a wait of many months to get it up for sale, and then you will still pay a seller’s premium as well as have to wait additional months to receive reimbursement.
All of these are factors that affect what your estimated net equity in a prop is.
Personally, I tend to consider my prop equity to be consistent with what I originally paid. Considering my actual cost is a safe and conservative way in which to take inventory.
So, when an attractive opportunity passes my way, I tend to reflect on what I own at what I paid, and what the potential acquisition is and its cost (or estimated cost, if it is a piece to be bid on), and make decisions accordingly.
The Evolution
I’ve found my collection to be fairly organic, as much as I’ve tried to steer it in a certain direction. Every time a piece is added or sold, it changes the whole, sometimes significantly. I’ve found some pieces are complimentary with one another, either by theme (80s Sci Fi) or by type (hero firearms). Sometimes, one addition can make another current piece seem either more or less desirable, depending on how all of the pieces represent overall. Having said all of that, when I do buy a new piece, it is because I would like to add it to my collection, not for investment.
I would be interested in hearing from other collectors that view their collections, on one level or another, in terms of equity, for the purposes of acquiring new pieces as well as managing the growth and evolution of their collections overall.
Jason De Bord