Numismatic "dumping"

shirohniichan

What are your opinions on a mint dumping its unsold numismatic products at fire sale prices to favored dealers?

I've seen a certain Canadian dealer able to sell Royal Canadian Mint products at far below issue price a few years after issue. One small-time dealer told me that is because the RCM gives the big dealer huge discounts to buy out old stock. Instead of destroying its unsold coins, it dumps them. This leaves other dealers in the lurch since they bought the RCM coins for much more than the big dealer retails them.

As a collector, I find it a great boon to be able to buy RCM products at such great discounts. If I were a dealer in recent Canadian coins I wouldn't be so happy.

Apache

I would think that those mints involved in the, "dumping", would first contact their loyal, small-time customers and offer them the discounted products FIRST. Surely they keep a track record of sorts thru their own mailing lists of who these everyday folks are.

If some dealers were offering below original issue prices, then perhaps they should do the same, (contact their loyal small-time customers and offer them some beatuiful prices on those missed items for their collections, and or the kid's or grandkid's startup's.

Hummmmm.....

Apache

canadiancoinguy

From a business perspective, the idea of dumping products to the little guy is a joke. Why do all the work involved to sell 5 sets each to 4000 guys when you can sell 5000 sets each to 4 guys? (I'm guessing here)

proof, specimen, pl sets are usually okay, and the proof and UNC (PL) S$1 usually don't bomb, but take small drops.

My local dealer for example buys current-year proof sets from a larger dealer for issue price less $3. There's virtually no profit involved given the work for it. That's okay since you have to keep the customers (esp. the walk-in types) happy. For the stuff not mentioned above, he just gets one of each. Too risky, and not great sellers either.

This is where the post office has an advantage. They can return products for price paid, so virtually every Canada Post outlet carries a variety of NCLT. There's nothing to lose for them, but some display case space.

shirohniichan

This is where the post office has an advantage. They can return products for price paid, so virtually every Canada Post outlet carries a variety of NCLT. There's nothing to lose for them, but some display case space.

I didn't know the RCM and Canada Poste had such an agreement. They sure make it hard on the small dealer, don't they?