Reserve Prices for Auction Houses

Cameo CC

I think that the auction houses, specifically TeleTrade and Heritage, should follow the same procedures as that of ebay. Namely, each auction item should tell the bidder that this item has a reserve on it and further say when that reserve has been meant.

I believe that the price of some coins are artifically inflated to increase profit without the bidder knowing that they are only bidding against a computer.

FratLaw - What recourse does one have with these auction houses to show reserves?

What are your thoughts?

Todd

Keyrock

I agree, it would be nice to see if the reserve was met (or if a reserve is in effect). I think Heritage has gotten around this by having their "Post auction bargins". I would rather have them just start the bidding at the reserve. Does a reserve really help? I could imagine that someone may be sticker shocked at first and shy away from the coin, however, if you know your coin you can make an informed decision at that time and either bid or move on.

Rich

TheNumish

It would certainly be nice to see what the consigners reserves are but lets face the facts. Heritage's goal is to get the most for each coin. If the reserves are shown Heritage will lose a big psychological advantage. Auctions are a big compeition and people will bid more if they think they are fighting it out against another bidder and not the reserve. It wouldn't make sense for Heritage to change.

Ebay is funny. Sometimes I'll start an item at what I think is a fair price and it won't sell. Then I will relist it starting at $1 and it will bring more than my original price. Doesn't always happen like that but it isn't unusual either.

ER

I really couldn't care less.
I decide how much I am willing to pay for a coin.

Cameo CC

I just can not wait. What has been said I agree with.

When I look over the coin industry and consider what areas are concerns for me, I think this is one. What I am saying is that much harm can be done to the coin industry, as a whole, when the auction game is rigged. I like a level playing field and think this is one area where the industry should have a standard.

I believe some hid behind these auctions to mask there high prices, knowing that they could not get there asking price anywhere else. I have had offering that are very high and passed. Only to find them at one of these auctions week after week looking for that one person who will unknowingly bid against themselves to get to that high price.

Have any of you experienced this?

Todd

sinin1

Have any of you sold through Teletrade with a reserve? The 15-20 coins that I did all started the day at 80% of reserve and bumped up to my reserve price with 3 hours left to go. The ones that did not sell to someone else came back to me at full buy-back charge.

The pre-auction reserves are probably all shown with an hour to go (if not higher) - it is a different story for the sellers who bid during the auction.

Cameo CC

One group of coins I saw on TeleTrade, that I never saw the reserve, are the Proof and Mint State 70 Gold and Silver Commemoratives. or what about the Proof 70 Statehood Quarters now up at Heritage. I see these same coins week after week.

Todd

Cameo CC

Here is a reply from Kieth Dagen

Todd,

From what I've seen, a dealer will take a newly made pop. top coin, usually a high grade state quarter or commem, and offer it the first time on Teletrade, setting a reserve, then actively bidding in the sale until they win the coin. This causes Teletrade to register a sale and a price realized. The seller has to pay buyer and seller fees. Then, about three to four weeks later, they offer the same coin again, and it sells for about 85 to 125% of the first "sale" price, locking in the price that the dealer originally wanted. By the time a similar coin gets offered, you typically see the third sale at 50% or less of the first or second price, if that.

Teletrade does the industry a huge disservice by allowing sellers to bid on their own material. Even if TT wants to allow that, if the seller wins the coin, it should not show in the prices realized section. The seller winning the coin is the same as the seller resetting their reserve upwards, not actually selling the piece.

For Heritage, if you list a coin with a $1000 reserve, and the bid increment is $10, a few days before the auction, Heritage will bid $990 on your behalf if the coin has not reached that level yet. I believe that they allow you to actively bid on your own coin from the floor, but you are not allowed to bid electronically for your own piece as part of the auction consignment agreement.


Todd

inneedof70s

Todd, I completely agree with you and as such WILL NOT BE BIDDING ON ANY COIN FROM TELETRADE UNTIL THOSE PRACTICES CHANGE!!!

Cameo CC

There has to be more comments on this than what I have seen.

TTT

Todd

ANACONDA

Buying from Teletrade....you never get to see the coins before you buy them and there is always a return fee..... I'm right there, am I not?

Seems like they're asking you to break two fundamental rules of coin buying - don't buy coins you can't see and always get a return privilege.

adrian

jeffnpcb

If you have a $10,000 coin on eBay with no reserve and on the last day it's only $1,000, can't you stop the auction?
Reserve prices serve no purpose other than greedy people at both ends! Seller trying to get better than full retail and buyers trying to get it at grey sheet prices! There are a few exceptions, but if you go into a bidding war and not have a price set on the coin you are willing to buy you making someone rich and shafting yourself.

Teletrade, and all auctions, should have pictures posted on all coins in excess of $100. or classic and type coins!
Cameo CC, your in the business, but to make a huge profit off buying cheap at auction, then jacking prices to full retail? I don't know of a dealer that is out to lose money, but to contradict sales tactics just doesn't make sense.