Should we focus less on dealer’s margins and more on their value (e.g., are dealers the plumbers of

Longacre

To my dismay, the Longacre kiddies somehow broke the faucet on the bathroom sink recently. Always the entrepreneur, your very own Longacre bought a basin wrench at Home Depot, and dutifully wiggled underneath the pedestal sink to assess the problem and fix it. After about 30 seconds, I declared the problem unsolvable, and quickly thumbed through the local phone book for a plumber.

Speaking with the plumber, I, of course, asked how much he charges. He charges $95 just to ring the intercom on the security gate at the Longacre estate, and then $95 per hour. In other words, $190 just to show up. I made a comment that I was shocked at the excessively large fee, and mentioned that he almost charges as much as a lawyer. To that he responded, “you are not paying me to fix the sink. You are paying me for my 40 years of experience as a master plumber. I can fix something in an hour that a less experienced kid will take 3 hours to fix.”

Intrigued by that comment, I quickly thought of our numismatic hobby. We frequently get out the torches and pitchforks when we discuss the margins that coin dealers make on coins. However, like my plumber, are we focusing on the wrong aspect of things? Should we be happy to pay our coin dealers the margins they charge because of their vast experience in numismatics (something that 99% of us truly don’t have when you get right down to it)?

Does anyone here look at our dealers that way, or do you just get caught up with the dollar margins that they achieve?

[As an aside, I need to go buy a new faucet, which are several hundred dollars for a good one. Then I need to call the plumber back, incurring yet another $190 visit. I asked the plumber if his second visit is considered a continuation of the first visit and therefore it won’t cost me $190, to which he responded that his time is valuable (sort of like a coin dealer’s) and there was no waiving of fees.]

rgCoinGuy

Google is your friend

Or with pictures:

Link

Edited to add, numismatically speaking, I do not see coin dealers as plumbers.

Bcsican

<< <i> (e.g., are dealers the plumbers of numismatics)? >>



Yes...

messydesk

I focus on the coin and whether it's worth the price being charged.

Had I been said plumber, being compared to a lawyer, I'd have responded, "but without the right amount of water you and your family will die," asserted my services were more valuable than that of a lawyer, then offered to charge accordingly.

Coinosaurus

I get the feeling this thread is more about whining about the plumber and less about the dealers

That said, if plumbing were so easy, there's no way this guy could stay in business at $190 / hour. So you are probably not that far off the market rate, at least in your leafy suburb.

CoinJunkie

If a coin dealer ever told me:

"You are not paying me for the coin, you are paying me for my 40 years of experience",

I would probably say:

"OK, you can hold on to your experience, and I guess the coin is free?"

Dentuck

. . . .

I'll leave that question up for 20 seconds, and then delete it.

morgandollar1878

Well considering the fact that you picked up the phone book and pointed at a phone number to call for a plumber, you did have the option of calling another plumber if you did not like his prices. There is a similartity between the two, but most don't look at it that way. Don't all businesses have a similar relationship. In other words you are always welcome to pick up the phone book and call someone else to see if you can get a better deal. By the way I am a plumber and we charge under half of that $190 that the other guy charged you. Funny thing is, if it took me two hours to fix a problem and it only took him one hour, our bill would still be less.

Bayard1908

<< <i>I made a comment that I was shocked at the excessively large fee, and mentioned that he almost charges as much as a lawyer. >>



A lawyer with an hourly billing rate of $95 is pretty close to the bottom of the profession. Even first year lawyers at large firms bill out at about triple that amount.

RedTiger

I vote "stupid analogy of the day." What coin dealing has to do with plumbing is beyond me. A plumber provides a vital service. A coin dealer sells luxury goods. A good coin dealer depends as much on the buy side, finding decent inventory at decent prices, as he/she does the sell side.

PerryHall

<< <i>

<< <i> (e.g., are dealers the plumbers of numismatics)? >>



Yes... >>



Agree. In more ways than one.

lathmach

If you think a plumber is expensive, hire a tax lawyer sometime.
Those guys show up in smoking jackets wanting to do their work sitting in an over stuffed armchair.
They won't travel to China without being in the most expensive seats on the plane either.
And when they're in China, all they want to do is goof around looking at coin stuff.

Ray

Longacre

<< <i>If you think a plumber is expensive, hire a tax lawyer sometime.
Those guys show up in smoking jackets wanting to do their work sitting in an over stuffed armchair.
They won't travel to China without being in the most expensive seats on the plane either.
And when they're in China, all they want to do is goof around looking at coin stuff.

Ray >>




I like this job description. Sign me up.

pheh

<< <i>(e.g., are dealers the plubmers of numismatics) >>



No. They are the grocers... the waiters... the sommeliers...

And they will usually be more than happy to supply Monsieur's bucket if he is not happy with the meal.

JCMhouston

I will agre with the premise that they are/should be valued for their experience, at least by me. The 2-3 dealers I do business with all have 30-40 years doing this, and they gain me access to coins that would otherwise be very difficult to find.

RichieURich

I heard a similar story about a doctor hiring a plumber. The doctor asked the plumber his hourly rate, and he responded "$300 an hour". The doctor replied, "I'm a doctor, and I don't make $300 an hour." The plumber responded, "I know. When I was a doctor, I didn't make $300 an hour either."

Disclaimer: the above is a joke, intended to be funny, and not intended to malign anyone nor any profession.

kaz

LOL, I'm a doctor and I don't make that much, either. Anybody know where I can be an apprentice plumber?

GrumpyEd

Since you will be paying this guy again you don't have much to loose by trying again yourself. Start by turning the water off under the faucet (if there's a shut off). Then turn on the faucet to be sure it's totaly shut off. Remove the faucet and try getting the same model at home depot. It's not that hard to re-connect. You might even leave the drain unless it's ruined. (only replace the faucet) If it doesn't work out you can always call the plumber back. The worst outcome would be a sore back or if you chip the sink so avoid those if you can.

If it works.... you just saved enough for a $190 coin

MrEureka

I enter into contracts with coin dealers for the same reason I enter into contracts with plumbers: The deals are to my advantage.

CoinRaritiesOnline

<< <i>I enter into contracts with coin dealers for the same reason I enter into contracts with plumbers: The deals are to my advantage. >>




So Andy -- you are saying that you take advantage of plumbers?

telephoto1

“you are not paying me to fix the sink. You are paying me for my 40 years of experience as a master plumber. I can fix something in an hour that a less experienced kid will take 3 hours to fix.”


Reminds me of an old joke... guy calls a repairman to fix his TV. Guy shows up, takes off the cover, pulls out a small relay out of a maze of components, snaps in a new one , closes up the cover and says "That'll be $150."

"$150!! For one little part?!?"

"Nope. It's $25 for the part. It's $125 for knowing which one was bad."


Moral: If you want nice clean fresh rolled oats, you have to pay a fresh rolled oats price. If you want oats that have already been through the horse, well, that comes a little cheaper.

Bear

If my coin dealers want to be paid like a plumber,

they better know how to fix my toilet in addition

to selling me coins.

mrpotatoheadd

<< <i>As an aside, I need to go buy a new faucet, which are several hundred dollars for a good one. >>

I'm surprised there wasn't a complaint anywhere in there about that, too. Aren't you concerned about the margins that manufacturers make on their products?

TwoSides2aCoin

Nice one, Longacre.
Great response, Mr Eureka.