I don't understand this advertisement in Coin World for Eagle Eye Coins

Longacre

I was reading one of the latest issues of CW (I don't know which one, because I got two issues in two days). There was an advertisement for Eagle Eye Rare Coins. The ad offers two piece Wisconsin Extra Leaf quarters sets for $650 in MS64 and $900 in MS65. I don't follow the Extra Leaf market, so I assume that those are the retail prices of these rarities.

Here is the part that I don't understand. The ad then states, "I will guarantee you will not find these prices next year! In fact, if after one year you are not thrilled with your purchase, we will buy it back at the full price!" Then the ad says, "Offer valid 11-1-07 to 12-31-07".

(1) What is meant by "these prices"? Is it the prices that Eagle Eye offers the coins, or is it any dealer who sells these coins in the marketplace?

(2) If the latter, how can Eagle Eye be so certain of the prices next year in a perfect market? Have coin dealers ever guaranteed a price floor for coin that they sell? Is it possible that the market is not so perfect for these coins?

(3) I find it unusual that there is a one year waiting period (until November, 2007) in order to invoke the guarantee. What is the purpose of that?

(4) What is the definition of "full price"? I assume after a year a buyer would not be thrilled if the prices of these in the market are $100 for the set. If the buyer decides to take up the seller on the guarantee, at what price will the coins be bought back at? $100 or $650/$900?

(5) Or is the buyer required to look soley to Eagle Eye for the current prices and determine whether he is thrilled or not?


The ad seemed very confusing to me and somewhat ambiguous. I know that Eagle Eye is an extremely well respected dealer, so I am sure there is no funny business going on. I was just curious if anyone else was confused by the advertisement.

messydesk

<< <i>(1) What is meant by "these prices"? Is it the prices that Eagle Eye offers the coins, or is it any dealer who sells these coins in the marketplace? >>


The guarantee is that "you will not find", not "we will not have." Sounds like the guarantee is that no dealer will have these prices. Technically, however, all dealers could have lower prices and you still will not have found the same ones.



<< <i>(2) If the latter, how can Eagle Eye be so certain of the prices next year in a perfect market? Have coin dealers ever guaranteed a price floor for coin that they sell? Is it possible that the market is not so perfect for these coins? >>


Sounds like they're predicting the demand will stay constant and the supply will be absorbed into collections as the state quarter series winds down. I don't know if such a guarantee is unprecedented, but it is a gamble they're apparently willing to take as a promotion to try and disperse the supply into collections.



<< <i>(3) I find it unusual that there is a one year waiting period (until November, 2007) in order to invoke the guarantee. What is the purpose of that? >>


The guarantee says, "...if after one year," not within one year. In addition to whatever the normal return policy is, you have a 2 month window to assess whether or not you're still thrilled.



<< <i>(4) What is the definition of "full price"? I assume after a year a buyer would not be thrilled if the prices of these in the market are $100 for the set. If the buyer decides to take up the seller on the guarantee, at what price will the coins be bought back at? $100 or $650/$900? >>


Here, knowing Rick is on the level, we have to assume he meant "we will buy it back at your full purchase price." Plus, the ad says "price" (how much it cost) and not "value" (how much it's worth).



<< <i>(5) Or is the buyer required to look soley to Eagle Eye for the current prices and determine whether he is thrilled or not? >>


There is no implication that being thrilled is contingent only on finding These Prices. The buyer could be unthrilled for other reasons and still be able to return the coin for a refund.

291fifth

If ad copy is written in such a way that you have wonder about it...

jayboxx

I agree it is poorly worded.

foodude

Did you try to contact Rick and ask him?

lathmach

Doesn't matter to me. I am unthrilled with the Wisconsin extral leaf quarters to begin with.
Ummm..........
Is "unthrilled" a real word?

Ray

Lakesammman

Email Rick - interesting post but not sure of the intent.

kranky

The way I read the ad was that from 11/1/07 through 12/31/07 you can get a full refund of your purchase price for the Extra Leaf quarters you buy today.

Longacre

<< <i>The way I read the ad was that from 11/1/07 through 12/31/07 you can get a full refund of your purchase price for the Extra Leaf quarters you buy today. >>




I agree. Do you think that is odd?

dbldie55

I am guessing a mis-print and it should be 11/01/06, but since asking the actual source of the ad seems out of the question, we may never know.

ScarsdaleCoin

sounds to me like a very nice offer..... a buy back like this would truly be good for price support...almost along the lines of being the market maker in a specific type....

kranky

<< <i>

<< <i>The way I read the ad was that from 11/1/07 through 12/31/07 you can get a full refund of your purchase price for the Extra Leaf quarters you buy today. >>



I agree. Do you think that is odd? >>



Not necessarily. Let's say the offer was for a full refund any time for one year. Then you'd have speculators buying them all up. They cash in if prices rise, they return them if they don't. This way buyers still have a safety net but the 11-month waiting period probably would keep the speculators away.

A one-year return privilege is so unheard of in this hobby, I would expect there to be some amount of "red tape" just to keep people from speculating.