Teletrade and the $100 off deal

TommyType

This weekend, Teletrade conducts its "official" auction in conjunction with the ANA Las Vegas Show. (I don't remember them having "official" status ever before, but I could be wrong).

Anyway, it seems that EVERYONE under the sun gets $100 off on purchases over $500.

At first glance, this seems like one sweet deal!

But when you stop and think about it, is anyone really going to get a deal? Won't the prices for any coin close to $400 suddenly get bid up? Won't everyone who might bid (for instance) $700 on a coin suddenly feel confident enough to bid $800?

Won't the prices just go nuts on just about everything?

Sounds like a good PR move. After the auction, they can tout the amazing prices realized, and make a play for more consignments.

Opinions?

Bochiman

I think it is even better than just good PR....

I, like you, think many people will bid the extra $100....but, they get a cut of that in fees, right? So, I don't think a lot of people will factor that in.

So, if they get 15% of $700 (without the coupon) for buyer's premium, that is $105 fee. (Which is likely figured in, so someone knows they are buying a $805 coin)
Then, if people use the $100 to bid extra $100, that coin sells for $800 and the fee is $120. So, they pay $920 and subtract the coupon of $100.
They just spent $820. An extra $15.

Not a lot, but, if it gets people using it that way, very good marketing!

sinin1

you are assuming that every purchaser will buy around $500 worth


don't you feel some buyers routinely buy many coins and spend much more?

relayer

With a maximum of 20% off they give up their BP and it costs them 5% at most, so all they need is a 5% increase in business to come out ahead.

Steve27

"Sounds like a good PR move. After the auction, they can tout the amazing prices realized, and make a play for more consignments."

Yep, pretty much what I was thinking.

JZrarities

Well, it must be working.

Many of the coins up for auction are Higher Quality than I've seen in the past...

There's some nice Rainbows and Toners up for auction:

I haven't found anything on Heritage that I'd like to have in a while.

airplanenut

Since I wouldn't be spending more than around $500, I'd be really afraid of getting outbid on something, and then having my total fall in the $400s, and not getting the discount...

roadrunner

That $100 is already factored in by their minimum reserves. That is there profit margin of 20% on $500 coins, and 10% less on $1000 ones.
Even if they break even they get to dump a slow mover. No dumb at all.

Competition? Hardly! These are house coins most of the time and usually low end or lacking in eye appeal. Last time they had this deal
I scoured their auctions for an hour or so and could not find one single coin worth bidding on, even at $100 off.

roadrunner