What are each party's rights and obligations under a "want list"?

Longacre

Note: this is totally hypothetical...

Suppose you give a dealer a want list of coins. Each coin is approximately $10,000. You have been dealing with that dealer for approximately a year, generally buying a coin or two in that approximate range.

(1) What obligation does a dealer have to actively search for the coins on your list, given your past level of purchases (one or two in the pat year, and you've only been dealing with him in the past year)?
(2) If the dealer finds a coin on your list, does he have an obligation to tell you about it before he purchases it, or should he just purchase it because it is on your "want list"?
(3) Should the dealer get some some sort of verbal committment from you (or some sort of financial guarantee) that you can really afford what is on the list if the dealer just happens to find everything on it in one shot or a lot of it in one shot (however unlikely)?


(4) What right does the collector have to buy from other dealers once he gives the dealer the want list?
(5) What obligation does the collector now have if the dealer buys a coin for the collector that was on the want list?
(6) What obligation does the collector have if a significant period of time goes by and the dealer has not found anything, to now tell the dealer the "list is revoked" and to stop looking?

Sorry for the long list of questions. Feel free to answer what you want to/can. Thanks.

coinguy1

<< <i> (1) What obligation does a dealer have to actively search for the coins on your list, given your past level of purchases (one or two in the pat year, and you've only been dealing with him in the past year)? >>

I don't think it should matter what the client has bought or how long the parties have been dealing. I believe the dealer should search in whatever way he has indicated he will.



<< <i>2) If the dealer finds a coin on your list, does he have an obligation to tell you about it before he purchases it, or should he just purchase it because it is on your "want list"? >>

I wont usually buy a coin just because it is on someone's list, unless the client has given me instructions to do so. But, if I buy a coin which happens to be on a client's list or see one that is, I will let the client know about it.



<< <i>(3) Should the dealer get some some sort of verbal committment from you (or some sort of financial guarantee) that you can really afford what is on the list if the dealer just happens to find everything on it in one shot or a lot of it in one shot (however unlikely)? >>

The dealer should at least have an idea as to the client's ability to buy such a coin, if found. However, if it is a "higher priced" item, it is certainly best for the dealer to discuss it with the client before acquiring it.



<< <i>(4) What right does the collector have to buy from other dealers once he gives the dealer the want list? >>

The collector is free to buy whatever he wants from whomever he wants.



<< <i>(5) What obligation does the collector now have if the dealer buys a coin for the collector that was on the want list? >>

None, unless the collector made some type of promise/commitment.



<< <i>(6) What obligation does the collector have if a significant period of time goes by and the dealer has not found anything, to now tell the dealer the "list is revoked" and to stop looking? >>

No obligation, but it is good business to keep the dealer informed.

I had previously written the following in a thread (linked below) I started on the topic of want lists - hopefully it will help a bit too.:

This is written in response to a number of comments I have seen in various threads about dealers' want list services.

I believe that there are some misconceptions and a lack of clarity regarding the different ways in which want list services can be put to mutually beneficial use for both dealers AND their customers.

Each of you is free to try to work out whatever type of want list arrangement you prefer with your dealer(s) and there are a number of different options/arrangements to consider.

I can't speak for other dealers but we typically work in one of three different ways with our want list clients, depending upon our relationships with them and their stated preferences:

1) Some customers merely want to be informed if/when we acquire particular coins they are searching for. In this scenario, there is no obligation, whatsoever, on their part if we procure the coins - we merely inform the client if/when we get the coins and give him or her a shot at new purchases before we offer them to non want list clients. This arrangement does not cause the dealer to buy something he/she wouldn't normally buy, anyway, and doesn't have any effect on the price that the dealer pays for the coin or offers it at. We sell a LARGE number of coins this way, before they ever get listed on our web page or placed in an ad.

2) If we see a particular want list item at a show or in an auction, etc., we will call certain clients to let them know about the coins. In some cases, the customer will say, "if you like it and I can get it at such and such price, I'll take it". Other clients will want/need to see the coins first. If the coin is not in an auction and we can get it on the arm from the owner, to ship to our client on approval basis, we will do so. Sometimes that is feasible and other times it is not. In the on-the-arm scenario just mentioned, the coin might be a bit more pricey, as the owner knows that it is not a done deal and might want more for the coin on approval basis, than he would be willing to sell it for as part of a done deal. We do get a number of coins for our clients this way, and let them know up front, that we do not own the coins.

3) We have a number of customers with whom we have special relationships, who say to us - "I want coin such and such and if you see it, like it and are ok with the price, I own it". Even then, before purchasing the coin, we always try to contact the client first. We have purchased some big ticket items, that we would not have otherwise bought for inventory, based on our discussions and arrangements with certain customers.

I'm sure that there are a number of other ways for dealers and clients to work together, but the above examples cover most of what we do with our want lists. Our want list dealings are based on the nature of our relationships with our customers - it is a matter of trust, understanding what the client wants and what is expected of each party, by the other.

Here are a few other observations:

I do agree with those who have said it is not a good idea to give multiple dealers want lists for especially rare and/or high priced coins. However, it would certainly be unusual for those dealers to actually be trying to buy such coins in an auction and bidding against each other, unless they would be buying the coins for inventory, anyway.

It is imperative that you let your dealer know what your level of interest and commitment is - if you will need to see the coin first, be sure to tell him/her. And, there is certainly nothing wrong with that! If you have a particular price range and quality you want, make that clear, too. The more specific information you can provide about the coins you want and your expectations of the dealer, the better.

Show/tell your dealer things you like or don't like about various coins that he/she offers you - give both positive and negative feedback to help get you on the same page about your likes and dislikes.

Ask your dealer if he/she already has want lists on file for the items you are seeking, so you know where you stand, priority-wise, against other clients of that dealer.

Keep your dealer up to date with your want list - let him/her know when you no longer need items you had said you were looking for or when you have new coins you're searching for.

I'm sure I'm leaving out some things and will think of them as soon as I post this. But, these are some of my observations and recommendations on this subject.



Want list service - some tips/information/options

Prethen

This is a great thread! Thanks for bringing it up. I've had the same questions in my mind. Whenever I give a dealer a want list I don't want him to assume that if he buys a coin on the list I'll automatically be purchasing it from him. I've got to like the coin and, of course, the price.

Secondly, $10,000 plus coins!!!!! Wowza. I'm insanely jealous. I have to do a financial debate with myself with a simple square root of that much money. I guess I can dream.

relayer

I've been kicked off a couple of want lists after declining to buy (IMO) overpriced coins

dorkkarl

i'm not dealer, but if i were, for coins of that high value, i'd require a retainer w/ say, a 10% non-refundable commitment.

K S

tmot99

I keep my dealer stocked with a want list from whatever current series I am working on. As they find them, they buy them. They only will buy coins that they like and/or feel they can sell whether it be to me or not. If they got it for my list, I get first dibs. There is no "obligation" on either side.

RYK

Despite that I have specific wants, I personally have avoided "want lists" per se. The dealers I work with know generally what I want and push the coins to me when they get them. I would not want to be in the uncomfortable position of having to decline a want list coin for any reason including:
1) I changed my mind.
2) I already bought one on my own.
3) I do not currently have the cash for the coin.
4) I do not want/like the specific coin they purchased for me.
5) I am not always immediately reachable for discussion of a coin (ie a coin turns up at a show on Friday AM).
6) Any other reason I cannot immediately think of.

I think in some ways this helps me and others it hurts me. It hurts because it will take that much longer for me to get the coins that I want. It helps because I still have no problem whatsoever finding coins to buy. It hurts because the dealers probably buy and sell the coins that I need to other collectors (my competition, so to speak). It helps because the dealer never makes a forced purchase to satisfy my want list, but instead buys coins that he/she presumably likes for inventory.

Just my perspective on want lists and why I have not used them.

coinguy1

TTT