Do you think it's time for some consolidation in the coin industry?
Longacre
Posts: 16,717 ✭✭✭
I am asking this question in terms of the number of auction houses that there are currently holding major auctions. Are the numbers of auctions hurting the coin hobby overall? Also, as Heritage gets bigger and bigger (as was evidenced at the FUN auctions), do you think that the smaller auction houses need to combine and consolidate in order to compete? I don't know a lot of the behind-the-scenes dealings at Heritage, but I am not sure if they have completely leveraged their size to try to snuff out some of the competition. Everyone refers to them having growing pains because they got so big so quickly recently, but do you think once they get even more momentum, the other smaller houses will be in trouble? Also, what do you think about ANR? They are relatively small and a boutique-type firm. I don't see anything happening to them because of the quality of auctions that they put on, but maybe they have expansion plans themselves? What do you think?
Always took candy from strangers
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
0
Comments
Really? How much of a discount to list price have you tried to negotiate? How much are the listing fees to do it yourself on ebay?
Making that statement merely on the basis of them all having the same 15% buyer's commission doesn't seem warranted at all.
Bigger is not always better. In fact things usually get worse when there is less competition.
<< <i>there seems to be an oligopoly or "cartel" like atmosphere, with very little competition (on price, anyway)
Really? How much of a discount to list price have you tried to negotiate? How much are the listing fees to do it yourself on ebay?
Making that statement merely on the basis of them all having the same 15% buyer's commission doesn't seem warranted at all. >>
You have a point, as I was looking at it from a buyer's point of view.
However, it seems to me if there were more competition among the auction houses, I would not have to make up 17 to 20% just to break even the day after I buy a coin.
When things slow down, some of the players may find they can't do both of those things, and will have to drop out. I don't think there is any customer loyalty with auction houses, at least on the bidding side, so reputation alone won't matter.
In fact, there may be an inherent negative to becoming huge. If auction volume remains high AND one of the players gets bigger, then some of the coins will necessarily be offered at hours which won't appeal to consigners. There are only so many prime venues to hold auctions and only so many hours that people will attend. Converting them to online auctions doesn't appeal to some people because they want to be there to feel the pulse of what's going on, who else is bidding, etc.
What I think could happen if things stay very active is that the bar will be raised with respect to the quality and cost of coins making it into the prime auctions, just to keep the number of lots offered under cont rol. Remember the recent discussion about great coins that came up at the FUN auction at 2 AM. If consigners decide that the deal has to include WHEN the coins will be sold, eventually no one will accept their coins being sold in the middle of the night.
New collectors, please educate yourself before spending money on coins; there are people who believe that using numismatic knowledge to rip the naïve is what this hobby is all about.
Listing fees + Final Value Fees are about %3 add in %3 for PayPal and that is much less than the Heritages of the world charge.