While there’s nothing like using your hard-earned commission to score a rare LV x Supreme T-shirt or the latest iteration of Gucci loafers, the old adage ‘it takes money to make money’ holds a certain allure. The frenzied buying and flipping of Supreme pieces got us thinking — what can happen when you put your entire commission towards your future? We think channeling some cash into a few well-placed investments doesn’t sound half bad. Keep reading for our tips on turning your earnings into a small fortune and helping you retire early.
Consign Like An Insider
In order to earn the commission that could one day blossom into your nest egg, the first step is to understand the worth of your items and consign like an insider. We’ve broken it down into three earning tiers — $1,500, $5,000 and $10,000 commission — to help anyone make the most for their luxury goods. When you consign more items, you’ll unlock a higher commission rate, building up the earnings you’ll want to invest.
Yeezy Boost 350 V2 Sneakers, $895; Vetements 2016 Titanic Graphic Print Hoodie, $1,295; Louis Vuitton Damier Graphite Zippy Organizer, $695; Supreme Satin Camp Cap, $110
For sneakerheads and streetwear junkies who devote precious hours to waiting in line for the latest Supreme release, the time to consign is often sooner rather than later. “Streetwear brands can have the most volatility in the resale market and their value is most heightened just after the initial drop,” says our Men’s Category Director, Mayola Martinez. “If you do manage to cop the hard-to-get items, do a bit of research on what consumers are coveting and keep items in ‘pristine’ condition for maximum resale value.” Many must-haves from these streetwear brands have a much higher resale value than the original retail price, making it profitable to consign almost immediately after snagging a pair of Yeezys or a printed hoodie from Vetements. Anything with a logo will also retain its value in the current style sphere — think monogrammed pieces from Louis Vuitton and Gucci.
Saint Laurent Leather-Trimmed Bomber Jacket, $1,145; Gucci 2016 GucciGhost Large Tote, $3,500; Rolex Submariner Watch, $4,395
Men who sport the best of high and low can also cash out on the widespread popularity of their favorite brands. “Saint Laurent by Hedi Slimane, Gucci by Alessandro Michele and Rolex will all stand the test of time and have stable resale value since they’re fashion essentials,” notes Martinez. “They’re all smart investments both to buy and consign now.” Many labels have seen an uptick in sell-through rates in the normal retail market — Saint Laurent, for example, has seen a 113% growth in terms of revenue — and, subsequently, the demand for their products in the resale market has only increased.
Tom Ford Wool Plaid Suit, $1,595; Goyard Goyardine Chypre Deux Soufflets Briefcase, $3,400; Cartier Roadster Watch, $7,050; Cartier Santos Dumont Sunglasses, $1,395
Classic pieces from Goyard, Tom Ford and Cartier are always desirable, especially with the status and craftsmanship that accompany heritage brands. “These are some of the top-searched designers and products for us,” says Martinez. “For items like Cartier sunglasses and Tom Ford suits, they are iconic, in-demand pieces that are key to a next-level wardrobe.” Business execs and men who appreciate the finer things in life should also note that watches with a list price of $2,500 or more receive our highest commission rate of 80%, which goes a long way towards reaching that earnings goal.
Consider Your Investment Options & Retire Early
There are a multitude of ways to invest and see how fast your money can grow. Roth IRAs, 401k accounts and the like are your standard retirement plans, but in terms of faster returns, the key is to continually invest what you earn. Micro-investing has become a popular choice for the Millennial set, with apps that help guide your decisions, make investing as easy as swiping your finger or even invest for you. We recommend following the avenue that best suits your financial needs (after all, we’re luxury consignment experts, not investment bankers or wealth management advisors).
If you do choose to invest your commission on a regular basis, however, the potential to grow your wealth is significant. Hypothetically, if you consign frequently and invest $1,500 earnings monthly with an average of 8% rate of return on your investments, you’ll end up with an end balance of over $277,000 within ten years. If you invest $5,000 earnings with the same stats, you’ll net $925,000, and if you invest $10,000, you’ll eventually end up with $1.8 million.
Of course, these are all just estimates, and with a constantly-fluctuating economy there are no guarantees. But choosing to invest wisely has its advantages. We’re never against the occasional (or regular) impulse buy, but sometimes saving is a better bet — especially when it means the potential to extend your golden years.