A dealer's responsibility to his/her client

jhdfla

Ok, now that the grading question has been solved by TPG's, and further refined by CAC, what exactly becomes the primary responsibility of the dealer to their client? In the past before TPG's, we had to rely upon the expertise, knowledge and eye of the dealer... not so much anymore, and with the advent of auctions available to everyone via the internet, it's become easier for anyone to compete with dealers for material. Is it unethical for a dealer to bury their client in coins that are overpriced and over-hyped, or is this acceptable as a way of doing business to cover expenses and maintain a lifestyle in line with being a high profile national dealer? I'm curious to hear some views on this. This is NOT dealer bashing either, but is it possible to build up a successful rare coin dealership without maintaining relatively high profit margins considering all the expenses and the need to maintain a high dollar inventory for your clients?

john

Barndog

for the most part, dealers are responsible to have an acceptable return policy...after that, it's on the prospective buyer.

CoinJunkie

Sure, it's possible. Deal in nice, high dollar coins and work tirelessly. CRO comes to mind...

291fifth

The grading question hasn't been solved.

Don't get me started on the subject of dealers "burying" their clients. Oh, the stories I could tell.

CoinJunkie

<< <i>The grading question hasn't been solved.

Don't get me started on the subject of dealers "burying" their clients. Oh, the stories I could tell. >>


I'm sure there are any number of people currently buried in properly graded coins, as well.

RYK

It's funny that you ask this because I recently had this discussion with a dealer. I asked a question to a dealer about a coin for sale (PCGS and CAC-stickered, BTW ) relating to its valuation. The dealer responded to me with two comps of which I was not aware, the venue in which the coin was last sold, the exact price paid for the coin by the collector who was selling it, an honest and credible opinion of why it sold for more than expected, the likelihood of an upgrade and why it probably would not, whether or not I would likely enjoy the coin based on the dealer's knowledge of my preferences. I think all of that adds value for some of us hobbyists, but you may feel otherwise.

CoinJunkie

<< <i>It's funny that you ask this because I recently had this discussion with a dealer. I asked a question to a dealer about a coin for sale (PCGS and CAC-stickered, BTW ) relating to its valuation. The dealer responded to me with two comps of which I was not aware, the venue in which the coin was last sold, the exact price paid for the coin by the collector who was selling it, an honest and credible opinion of why it sold for more than expected, the likelihood of an upgrade and why it probably would not, whether or not I would likely enjoy the coin based on the dealer's knowledge of my preferences. I think all of that adds value for some of us hobbyists, but you may feel otherwise. >>


Implicit in some of the above was that the dealer knew how to grade, which you previously said
was next to immaterial. Maybe the discussion should be which is more important: an honest and
competent dealer or a sticker.

Bear

Where there is a business relationship

between a reputable dealer and a collector,

the dealer should be responsible for honestly

providing the coins that will fit with the clients

taste.Further, advice as to what direction to

take the collectionand fair pricing that

will allow both dealer and collector to

prosper. In order to develop a long term

relationship, a dealer should offer more then

just a product. There must also be a fair

amount of wisdom, as well as sound advice

and knowledge passing from the dealer to the client.


Such effort on the dealers part can mean a long

and successful trail of transactions thru good

times as well as bad . Also such effort will

allow for being offered first dibbs on buy back

of quality coins from the client.



Such mutual loyalty, is what allows some dealers to survive the worst ravages

of economic chaos. At least, that is the theory.Of course, there are clients that

will say hold the advice and the wisdom, just show my the coinnd quote me

a price. To that I say, so be it.

RyGuy

Double-spacing is fail! But good post

Bear

OK
how
is
this
spacing
then?

jhdfla

<< <i>It's funny that you ask this because I recently had this discussion with a dealer. I asked a question to a dealer about a coin for sale (PCGS and CAC-stickered, BTW ) relating to its valuation. The dealer responded to me with two comps of which I was not aware, the venue in which the coin was last sold, the exact price paid for the coin by the collector who was selling it, an honest and credible opinion of why it sold for more than expected, the likelihood of an upgrade and why it probably would not, whether or not I would likely enjoy the coin based on the dealer's knowledge of my preferences. I think all of that adds value for some of us hobbyists, but you may feel otherwise. >>



I remember reading that thread though I confess I do not recall exactly what transpired, you were more ticked off at dealer A for his remarks more than anything else correct?


So if a dealer rips a coin for a fraction of what it's worth, is it correct for him to charge a client an 75% mark up because of his knowledge of acquiring the coin cheaply in the first place? Or how about this scenario, dealer A buys coin at major auction, coin is a stone gem, flips it next day to dealer B who has a client who would love the coin. Dealer A pays 2k, flips it for 2.2K, dealer B charges his client 4.2K. Client is thrilled with the coin or maybe until he finds out coin went for 2K with the juice at the auction

Fairlaneman

"what exactly becomes the primary responsibility of the dealer to their client?"

Being a collector I have never understood why collectors think that a dealer must hold their hand after,before and during a transaction. The dealer has one responsibility and that is to deliver a coin that is genuine in his opinion. After that everything else that happens is on the collectors head. The dealer did not hold a gun to the collectors head and make the said collector buy the item.

If you have a dealer that takes care of you after a purchase, thats great, if not, thats the way it goes.

Ken

Bear

But I like my paw held and soothing

words spoken into my furry little ears.

It gets lonely here in the cave.

rld14

My local b&m guy has beer. I like beer. He's also very honest and knowledgeable. As are a handful of other dealers I like. With me. If the dealer is fair with pricing and straight with me who cares what he makes. I bought an 07 mercedes s550 today for 27500. Wholesale is still 38000. So what does it matter what I make on it? If a dealer buys a coin at auction for half of retail then he's a smart dealer.

RYK

<< <i>

<< <i>It's funny that you ask this because I recently had this discussion with a dealer. I asked a question to a dealer about a coin for sale (PCGS and CAC-stickered, BTW ) relating to its valuation. The dealer responded to me with two comps of which I was not aware, the venue in which the coin was last sold, the exact price paid for the coin by the collector who was selling it, an honest and credible opinion of why it sold for more than expected, the likelihood of an upgrade and why it probably would not, whether or not I would likely enjoy the coin based on the dealer's knowledge of my preferences. I think all of that adds value for some of us hobbyists, but you may feel otherwise. >>



I remember reading that thread though I confess I do not recall exactly what transpired, you were more ticked off at dealer A for his remarks more than anything else correct?


So if a dealer rips a coin for a fraction of what it's worth, is it correct for him to charge a client an 75% mark up because of his knowledge of acquiring the coin cheaply in the first place? Or how about this scenario, dealer A buys coin at major auction, coin is a stone gem, flips it next day to dealer B who has a client who would love the coin. Dealer A pays 2k, flips it for 2.2K, dealer B charges his client 4.2K. Client is thrilled with the coin or maybe until he finds out coin went for 2K with the juice at the auction >>



The previous thread has nothing to do with my post here.

RichieURich

<< <i>So if a dealer rips a coin for a fraction of what it's worth, is it correct for him to charge a client an 75% mark up because of his knowledge of acquiring the coin cheaply in the first place? Or how about this scenario, dealer A buys coin at major auction, coin is a stone gem, flips it next day to dealer B who has a client who would love the coin. Dealer A pays 2k, flips it for 2.2K, dealer B charges his client 4.2K. Client is thrilled with the coin or maybe until he finds out coin went for 2K with the juice at the auction. >>



Just because the coin sold for $2,000 plus juice at the auction does not mean that someone else could have bought the coin for one more bid. Maybe dealer A really liked the coin for some reason and was willing to go up to $5K to get it. Let's assume dealer A bought the coin for $5K plus the juice, and sold it to dealer B for $6500. Dealer B reduces his margin to $1,000 and charges his client $7500. Is this client happier paying $7500 for the same coin that he bought for $4200 in the previous paragraph?

Unknown

This content has been removed.

jhdfla

<< <i>

<< <i>

<< <i>It's funny that you ask this because I recently had this discussion with a dealer. I asked a question to a dealer about a coin for sale (PCGS and CAC-stickered, BTW ) relating to its valuation. The dealer responded to me with two comps of which I was not aware, the venue in which the coin was last sold, the exact price paid for the coin by the collector who was selling it, an honest and credible opinion of why it sold for more than expected, the likelihood of an upgrade and why it probably would not, whether or not I would likely enjoy the coin based on the dealer's knowledge of my preferences. I think all of that adds value for some of us hobbyists, but you may feel otherwise. >>



I remember reading that thread though I confess I do not recall exactly what transpired, you were more ticked off at dealer A for his remarks more than anything else correct?


So if a dealer rips a coin for a fraction of what it's worth, is it correct for him to charge a client an 75% mark up because of his knowledge of acquiring the coin cheaply in the first place? Or how about this scenario, dealer A buys coin at major auction, coin is a stone gem, flips it next day to dealer B who has a client who would love the coin. Dealer A pays 2k, flips it for 2.2K, dealer B charges his client 4.2K. Client is thrilled with the coin or maybe until he finds out coin went for 2K with the juice at the auction >>



The previous thread has nothing to do with my post here. >>



My apologies... read through it too fast.

mrearlygold

Tell the truth. It's the most important followed by knowledge of what you are doing here.