@Boosibri said:
Where in the value chain will the massive dealer overhead savings go for avoiding the expenses of coin shows?
Collectors benefiting from lower price? Increased dealer expenses to acquire coins via different channels, dealer margins expand, something else?
I would not assume that eliminating coin shows would generate net savings. Probably just the opposite. In fact, most coin show dealers do the shows because they’re a cost efficient way of doing business.
I suppose I meant that there is a gross reduction in expenses from a lack of coins shows, but those reductions are likely netted against added costs in acquiring coins outside of shows or just less volume overall. If coin shows are net more efficient than other means, margins contract or volume decreases. If less efficient, margins go up or prices come down. The reality is probably it is different for each dealer. Just something I was curious about.
I suspect the expenses associated with TPGs continues to grow, and TPGs matter more when trying to sell items sight unseen. I wonder what the relative cost of that is compared to the cost of doing business at a show.
Never did many shows. This year I moved the shop to a small town. Now, I wear a mask...like a bank robber. Bullion has been my bread & butter in 2020. Then there is scrap and widgets.
20 years on eBay, so far. The managed payment system may change all that.
Your business model sounds well though out and adjusted over time. I think you will do well with it.
As a buyer only, I still have not bought a coin on-line in about 3 years and although I keep trying by looking through websites, I have been unable to pull the trigger. I am one that is too easily distracted by tarnish, spots and marks that are not always seen in photos. For me I need the coin shows or my buying will be non existent.
That can go both ways with photos. The majority of my photos over advertise marks and spots, which makes for a happy customer when they receive their coin! I quit trying to hit that happy medium. I'd rather a coin be nicer than the pic than worse than the pic!
@divecchia said:
Your business model sounds well though out and adjusted over time. I think you will do well with it.
As a buyer only, I still have not bought a coin on-line in about 3 years and although I keep trying by looking through websites, I have been unable to pull the trigger. I am one that is too easily distracted by tarnish, spots and marks that are not always seen in photos. For me I need the coin shows or my buying will be non existent.
Sharing a table at a show with a friend will cut show expenses plus give you base operate from buy /sell. Just stack stuff in your cases best ones on top. An 8ft table can accommodate 4 cases placed vertical.
I agree with the observations of the op and other seasoned pros here. The trend has been online for 20-30 years, some old timers like the show experience and when they open up again there will be ample opportunities to interact with dealers and collectors. I buy from a shop that actually blocked me on ebay for returns as their images were juiced. However I can buy with confidence in their shop. Business at shops remains quite viable during the pandemic.
I always found the set up at shows weird and unproductive; I would get national dealers trying to cherry pick coins on want lists, requests to take things on memo, people shining flashlights in the cases, lowballers, thieves, etc.. I lost more than I gained at shows; the only possible positive was opportunities to buy.
I know a major dealer who used to be a major Coin World advertiser who does all his business online with a designed site as well as ebay. This business seems to have shrunk considerably; just consider which coins are worth submitting for grading to PCGS vs. 20-25 years ago.
I was talking to a major dealer a few weeks ago. When shows resume he’s going to SIGNIFICANTLY reduce his presence to a few shows each year. He says 2020 has been one of his best years. He has saved tens of thousands of dollars in travel and show expenses. He has a very strong online presence with one of the best coin websites in the business.
Comments
I suspect the expenses associated with TPGs continues to grow, and TPGs matter more when trying to sell items sight unseen. I wonder what the relative cost of that is compared to the cost of doing business at a show.
IG: DeCourcyCoinsEbay: neilrobertson
"Numismatic categorizations, if left unconstrained, will increase spontaneously over time." -me
I here a lot of folks talking about going to show to just buy and not sell? There still needs to be some balance?
Most of the folks talking about buying at shows, including myself are buying to sell elsewhere.
Never did many shows. This year I moved the shop to a small town. Now, I wear a mask...like a bank robber. Bullion has been my bread & butter in 2020. Then there is scrap and widgets.
20 years on eBay, so far. The managed payment system may change all that.
``https://ebay.us/m/KxolR5
The problem with online purchasing I miss the mustard stain sightings.
Your business model sounds well though out and adjusted over time. I think you will do well with it.
As a buyer only, I still have not bought a coin on-line in about 3 years and although I keep trying by looking through websites, I have been unable to pull the trigger. I am one that is too easily distracted by tarnish, spots and marks that are not always seen in photos. For me I need the coin shows or my buying will be non existent.
Donato
Donato's Complete US Type Set ---- Donato's Dansco 7070 Modified Type Set ---- Donato's Basic U.S. Coin Design Set
Successful transactions: Shrub68 (Jim), MWallace (Mike)
That can go both ways with photos. The majority of my photos over advertise marks and spots, which makes for a happy customer when they receive their coin! I quit trying to hit that happy medium. I'd rather a coin be nicer than the pic than worse than the pic!
Sharing a table at a show with a friend will cut show expenses plus give you base operate from buy /sell. Just stack stuff in your cases best ones on top. An 8ft table can accommodate 4 cases placed vertical.
I agree with the observations of the op and other seasoned pros here. The trend has been online for 20-30 years, some old timers like the show experience and when they open up again there will be ample opportunities to interact with dealers and collectors. I buy from a shop that actually blocked me on ebay for returns as their images were juiced. However I can buy with confidence in their shop. Business at shops remains quite viable during the pandemic.
I always found the set up at shows weird and unproductive; I would get national dealers trying to cherry pick coins on want lists, requests to take things on memo, people shining flashlights in the cases, lowballers, thieves, etc.. I lost more than I gained at shows; the only possible positive was opportunities to buy.
I know a major dealer who used to be a major Coin World advertiser who does all his business online with a designed site as well as ebay. This business seems to have shrunk considerably; just consider which coins are worth submitting for grading to PCGS vs. 20-25 years ago.
I was talking to a major dealer a few weeks ago. When shows resume he’s going to SIGNIFICANTLY reduce his presence to a few shows each year. He says 2020 has been one of his best years. He has saved tens of thousands of dollars in travel and show expenses. He has a very strong online presence with one of the best coin websites in the business.