LCS sells "back of bid"?
moursund
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I'm looking to fill holes in my Morgan and Barber Half albums.
LCS old-timer doesn't have a big selection, and it has sat in his shop a pretty long time.
So when I find a few I want, he checks the grades, looks at his greysheet, and says, e.g.
"Bid is $60 I'll sell that one for $55" or "Bid is $20, you can have that for $18".
I didn't actually see the greysheet prices, but I'm pretty sure he is selling below bid, for these circulated and not-too-valuable coins.
Is this unusual?
Maybe he just likes me...
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Comments
Moving stuff that's been sitting and selling more than what he probably paid.
You both win.
Are they raw or slabbed? If he’s looking at bid on slabbed pieces and selling a bit back on a raw coin, it’s not uncommon.
Also, like @AlanSki said, if it’s stale and you’re a willing buyer, he’s helping both of you out.
If it is "dead" product he is probably more than happy to sell it below "bid" just to be rid of it. "Bid" on many common items is actually too high since the supply is more than enough to meet any demand. "Dead" product ties up valuable capital.
Makes sense. And he is about to retire, and wants to clean house a bit for the new owner...
If he's about to retire, anything he can get on dead stock above wholesaling it all out when he does retire is a bonus.
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Yes sounds unusual but perhaps he needs move them quickly.
My shop sells back of bid, occasionally sometimes, we pay over bid to buy an item. I guess it depends on the owners mood and what we need or have too much of, etc. I've gotten some really premium stuff for my collection back of bid...
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He (Dean) said some guy has bought into the business, and will take it over when Dean retires.
I should nose around there a bit more, see if I can score a few more deals. But I don't think he has much more I want; he mostly buys common/90% and a few Mogans and Peace dollars, from people selling an estate.
"Bid" is only one price point. When I was a dealer, there were items that were not worth the "bid" price because I couldn't get that kind of money for them, or for items like Proof sets, the collectors were only willing to pay "bid" for them. Therefore you had to pay less.
On of the secrets to running a successful business is to keep your working capital flowing. "Dead stock" that has not sold for several months up to a year, is not doing you any good. It's best to get the cash out it and invest in something with a better turnover.
what if their 'grades' are a point high?
What if their coins are actually foil covered chocolate?
Good question, but it turns out they aren't.
These are raw coins mostly in G-F, and he seems to be grading conservatively.
There are some obviously cleaned coins on offer, but I'm steering clear of those.
This below is the "best" Barber I picked up on Monday. Most were G04 - G08. This one probably VG10.
VG8 bid on a 1901-S is $60
I don't think that's a 10
Well I think it is, and it's going into my album, and will stay there until I'm dead. And after that, I won't care...
Edited to add: Let's call it a 9.
Lol. Look at photograde. You've barely got 2 letters and no partials in Liberty.
Ok, you convinced me it is closer to vg8 than vg10. I updated my spreadsheet accordingly. Still goes into my album, probably forever... OR i can see if it slabs, then try to get a green bean...
If you paid him $60, that's no deal. A very common Barber in that condition. Probably came out of a junk silver deal. And it's no VG+.
Greysheet has a lot of issues with some coin prices in lower grades.
1909 IHC
1915-d Lincoln
1934 DD qtr
1932-s qtr
1938-d half.
To name a few
No deal, maybe, but it's a fair price.
To be clear, while it would stroke my ego to have everybody say what a great deal I got, that's not what this topic is about.
Really want to know how dealers deal with old inventory, and if/why then sell below bid.
Now, if the feedback for my $60 coin were "counterfeit, harshly cleaned, vastly overpriced, damaged, etc", I'd be sadder but wiser. As it stands, it's a nice coin.
I agree
"Back of bid" is meaningless unless the coin is graded correctly to start with. It's always interesting to buy raw coins and then try to offer them back to the same dealer a few years later. It's amazing how "choice" VF coins suddenly become "Fair - and look at these problems right here......" This doesn't happen everywhere, but I'm always cautious of handwritten grades in the corners of flips. Better to determine your own grade, your own price, and then compare to his offer.
There are unfortunately tons of stories of people that got "great deals" on a bunch of overpriced junk.
It's also meaningless if he's referencing greysheet prices from 2018.
As for coins with a value under $100, submit them for slabs, beans, stickers, ribbons, balloons, and streamers all day long. That kind of thinking makes me wish I was still a CLCT shareholder.
PM sent.
Keep in mind that most/all dealers on many items pay less than "Bid" when they purchase items, so it shouldn't be surprising that they occasionally sell that way, too. If I'm able to buy 20% back of bid and sell 10% back them I'm doing well if it is an undesirable coin that I would have had to tie capital up in.
That 01-s have is def not a 10, more like minimal 8. its a coin that dosen't garner much premium anyway in that grade now a choice xf or better, were talking. I sell a lot of coins (just stuff) under bid as other mentioned, becuase that's where the market currently is. at bid, it would just sit there for months. I have a bargain box in shop that some coins in there are priced at 60-70% of bid just to get them gone, stuff like vg common date two cent pieces, 3 cent nickels, semi key buffalos in vg-f , stuff like that low grade indians in vg like 75, 76 and such, The box stays cleaned out most of the time
A good business needs cash flow through inventory turns. Many things affect business decisions. From the information you posted, he is cleaning up inventory and cashing out. Cheers, RickO