Anyone else dumbfounded?

TelecomFab

I’m curious if any others are dumbfounded by the dynamics of the modern numismatic auction house business model.

They supply mediocre (at best) representation of merchandise, impersonal customer service, horrendous customer satisfaction guarantees and charge insane fees for doing so. One particular and very prevalent auction venue posts substandard images of the merchandise and doesn’t even bother to write a description of coins. They’re selling (and collectors are purchasing) labels and stickers, not coins.

It doesn’t take an auction house an ounce more time to electronically post a $5 coin than it does a $500,000 coin. Yet for the latter they receive (and for some bizarre reason clients pay) a staggering mid 5 figure commission. This equates to charging 5 figures per hour even after all the administrative duties.

Granted the auction venues that produce nice printed catalogs and invest in paper advertising of particular items deserve more than the electronic only postings. But an across the board percentage fee is ridiculous.

But, of course, it exists because collectors allow it so it likely won’t change.

ricko

@TelecomFab... Welcome aboard. The only auctions I used to enjoy were on ebay... where I could snipe and get some good coins. The fees at major auctions are certainly high... but they provide a market that seems to be well attended. Cheers, RickO

MarkKelley

I don't think this is a very good way to kick off your account here.

OAKSTAR

@MarkKelley said:
I don't think this is a very good way to kick off your account here.

So this guy isn't entitled to his opinion here???

MarkKelley

Just a word to the wise.

JBK

Auction houses can't survive on the commissions/premiums from low value items alone. To suggest that the actual dollar amounts of the low and high value items should be similar is absurd. And, there certainly are increased costs associated with the high value items (security, insurance, etc.).

My experience is more with non-numismatic auctions and those usually have decreasing buyers' premium increments for very expensive items. Furthermore, I have seen buyers' premiums on some of these auctions break the 30% level, which I believe is higher than most numismatic auctions.

OAKSTAR

Welcome aboard @TelecomFab! Ask away.

PeakRarities

@MarkKelley said:
I don't think this is a very good way to kick off your account here.

This post reads like it was written by an alt. Some of the points are valid, but the fact of the matter is that it's a free, capitalist market. The day might come where someone else comes along and is able to provide a similar service for less commission, but no one else has stepped up to the plate. Perhaps the overhead costs are more than you figured? There are numerous ways to liquidate coins, some have no cost at all, pick the way that works best for you and the type of material you're looking to part with.

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