Podcast Episode Summary: "The Ultimate Collectible Revolution: Are You Missing Out?" | Josh Luber DSH #891
Digital Social Hour hosted by Sean Kelly features an engaging conversation with Josh Luber, a pioneering entrepreneur in the collectibles industry. Released on November 15, 2024, this episode delves deep into the evolution of collectible toys, the significance of grading systems, and the dynamic interplay of supply and demand that shapes the market today.
1. Introduction to Ghostwrite: The Next Evolution in Collectibles
Josh Luber introduces his latest venture, Ghostwrite, positioning it as the successor to the iconic Bear Brick franchise. Unlike traditional collectibles, Ghostwrite emphasizes transparency and versatility, offering a "blank canvas" approach that allows for limitless creativity.
Notable Quote:
[00:36] Josh Luber: “This is the best part. Now you have a company where I can actually put it on the table right here… it’s the evolution of Bear Brick.”
Ghostwrite distinguishes itself by producing collectible toys in three standard sizes—2 inches, 11 inches, and a larger variant—mirroring Bear Brick’s successful model. The recent release includes an NBA basketball-themed Bear Brick, with an upcoming WNBA set featuring prominent figures like Asia Wilson of the Aces, highlighting Ghostwrite's commitment to diversity and innovation in the collectibles space.
2. The Critical Role of Grading in Collectibles
A significant portion of the discussion centers on the grading systems established by companies like PSA (Professional Sports Authenticator) and AFA (American Federation of Arts). Josh explains how these grading services have revolutionized the collectibles market by standardizing the condition and authenticity of items, thereby ensuring consistent valuation and trust among collectors.
Notable Quote:
[02:10] Josh Luber: “PSA grades Funko Pop… It creates the condition… that allows us to buy and sell collectibles to each other.”
By partnering with AFA, Ghostwrite ensures that rare editions, such as limited-run Ghosts featuring WNBA stars, receive official grading. This process not only authenticates the collectible but also enhances its resale value, making collectibles a more secure and appealing investment for enthusiasts.
3. Comparing Collectible Markets: Funko Pop vs. Ghostwrite
Josh and Sean draw comparisons between Ghostwrite and popular collectibles like Funko Pop. While Funko Pops are widely accessible and serve as nostalgic consumer products, Ghostwrite targets a more discerning audience seeking exclusivity and long-term value.
Notable Quote:
[01:35] Sean Kelly: “I'm a big funko pop collector, so you might have have a new addiction for me to look into now.”
[01:51] Josh Luber: “Funko is like Funko's like wide and large… but Ghostwrite offers something more limited and valuable.”
Ghostwrite’s approach of limiting editions (e.g., only 10 out of 800) and providing clear visibility into the number of each collectible ensures that scarcity is transparent, thereby preserving and potentially increasing the item's value over time.
4. Building StockX: Navigating Supply and Demand in the Collectibles Marketplace
Josh shares his entrepreneurial journey with StockX, a marketplace he founded in February 2016, initially focused on sneakers. He discusses how StockX expanded into other categories like watches, handbags, and eventually collectible toys in mid-2018. The platform’s success is attributed to its ability to balance supply and demand, creating a reliable marketplace for both buyers and sellers.
Notable Quote:
[09:17] Josh Luber: “We started StockX in the beginning of February 2016… overnight we became the largest sellers of Cause and Bear Brick because it was just a very fragmented market.”
StockX’s model, which includes authentication and grading, alleviates the uncertainty and friction traditionally associated with buying and selling high-value collectibles, thereby fostering a robust and trustworthy marketplace.
5. The Impact of the Pandemic and Market Corrections
The conversation touches on the unprecedented growth of the collectibles market during the pandemic, followed by subsequent market corrections. Josh reflects on how the meteoric rise in valuations during 2020 and 2021, driven by factors like crypto and NFTs, has stabilized but continues to remain substantial.
Notable Quote:
[14:31] Josh Luber: “The last public round valuation of StockX was 3.9 billion… but there were private rounds that happened, way higher than that during the run-up.”
He emphasizes that while the explosive growth phase may have tapered, the fundamentals of scarcity, condition, and grading continue to underpin the value of collectibles.
6. Transition to Fanatics Collectibles: Securing Licenses and Expanding Influence
Josh recounts his strategic move from StockX to founding Fanatics Collectibles, underscoring the importance of securing exclusive licenses to drive growth in the trading card sector. Partnering with industry titan Michael Rubin, Josh leveraged existing relationships to dominate the trading card market, a space long held by incumbents like Topps and Panini.
Notable Quote:
[34:09] Josh Luber: “We raised money at a $10 billion valuation… And there was one employee of the company. It was just me.”
This bold transition highlights Josh’s visionary approach and his ability to capitalize on emerging opportunities within the collectibles landscape.
7. Supply, Demand, and Branding: The Cornerstones of Collectibles Marketing
A key discussion point revolves around the delicate balance of supply and demand and the role of branding in maintaining the allure and value of collectibles. Josh illustrates how brands like Nike successfully manage this balance by producing just enough to meet demand without oversaturating the market, ensuring sustained interest and exclusivity.
Notable Quote:
[19:20] Sean Kelly: “It's a game. And I think that they made the right partnerships with the players and the athletes too.”
He contrasts this with broader market influxes, noting that real demand—driven by genuine consumer interest in brands and personalities—outpaces artificially created hype, thereby fostering a more resilient and enduring market for collectibles.
8. Future of Collectibles and Upcoming Releases
As the episode draws to a close, Josh teases upcoming releases from Ghostwrite, particularly the highly anticipated WNBA set scheduled for December 10th. This release aims to capture the momentum of the historic WNBA season and the rising stars within the league, further cementing Ghostwrite’s position in the evolving collectibles market.
Notable Quote:
[40:01] Josh Luber: “December 10th is the big WNBA release… this is collectible toys as trading cards with WNBA after this historic season with Caitlin Clark and injuries and just this… unbelievable change in women's basketball.”
He encourages listeners to stay connected via Ghostwrite’s website and Instagram for updates on future drops, emphasizing the brand’s commitment to innovation and inclusivity in the collectibles space.
Conclusion
Josh Luber’s insights on Digital Social Hour shed light on the intricate mechanisms that drive the collectibles revolution. From the foundational role of grading systems to the strategic balancing of supply and demand, Josh elucidates how modern collectibles firms like Ghostwrite and Fanatics Collectibles navigate and shape the market. For both seasoned collectors and newcomers, this episode offers a comprehensive understanding of the factors that make collectibles not just nostalgic items, but valuable investments in today’s dynamic economic landscape.
Where to Find Ghostwrite: For more information on Ghostwrite and to stay updated on upcoming releases, visit ghostwrite.com or follow them on Instagram.