If a dealer knows of an almost certain buyer in the form of another dealer, why refer the collector

Longacre

On several occasions at the Baltimore show, as I was peering into the glasses cases of various coin dealers, another collector would bully himself up to the front and ask if the dealer would be interested in buying the coin the collector was offering for sale. As I continued to look at the case, and keeping a sharp ear out for how the transaction would go down, I was intrigued by what I was hearing.

The dealers would say something like, "I am pleased to have seen your coin, and thank you for stopping by. However, I'm not interested, but go see Dealer X, and he will probably buy it."

As I heard these words, I silently wept, thinking that capitalism was indeed dead.

Although there is no certainty in the world, and you need to take risk in business, if the dealer was so certain that Dealer X would be interested in the coin, why didn't the current dealer make an offer, and then seconds later flip it himself to Dealer X (albeit at a razon thin margin)? This was the same dealer who, later in the day, was commenting that there was nothing on the bourse to buy.

Any thoughts or comments?

Unknown

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messydesk

The razor thin margin likely wasn't going to be worth the trouble of becoming a middleman, much less pay down his Tiffany's bill, and the dealer in question wasn't certain what the other dealer would offer for the coin (if anything) and wouldn't want to be stuck with it.

coinguy1

<< <i>On several occasions at the Baltimore show, as I was peering into the glasses cases of various coin dealers, another collector would bully himself up to the front and ask if the dealer would be interested in buying the coin the collector was offering for sale. As I continued to look at the case, and keeping a sharp ear out for how the transaction would go down, I was intrigued by what I was hearing.

The dealers would say something like, "I am pleased to have seen your coin, and thank you for stopping by. However, I'm not interested, but go see Dealer X, and he will probably buy it."

As I heard these words, I silently wept, thinking that capitalism was indeed dead.

Although there is no certainty in the world, and you need to take risk in business, if the dealer was so certain that Dealer X would be interested in the coin, why didn't the current dealer make an offer, and then seconds later flip it himself to Dealer X (albeit at a razon thin margin)? This was the same dealer who, later in the day, was commenting that there was nothing on the bourse to buy.

Any thoughts or comments? >>

Yes, you might be making a number of incorrect assumptions. There was no indication that the first dealer really KNEW dealer X would be interested. And even if he did KNOW it, that didn't mean that dealer X would necessarily be interested at anywhere near the asking price.

If the first dealer had been extremely confident that he could buy the con and sell it to dealer X (or, for that matter, anyone else) for a worthwhile profit, he would almost certainly have bought it. Said differently, his actions spoke louder than his words.

Greeniejr

There are two reasons I can see. The first is that at a show there is the expectation that the person is going to show it around the room so that they won't sell it to you anyway. The second reason is that especially at a big show time is money. The bookkeeping it takes to buy the coin and process the purchase then sell it and process the sale may not be worth the $20 you make doing the flip. What is the opportunity cost?

Greeniejr

And to add on as well, if the dealer made an offer at a level which they would be comfortable with, that person could come here and complain about getting lowballed by the evil evil dealer. Its a safe political play.

Steve27

Not all dealers want every type of coin, and if dealer A is friendly with dealer B, he might send certain merchandise over to dealer B with the implicit understanding that dealer B would reciprocate in the future. Even sharks have been known to work together for their mutual benefit.

MrEureka

Not all dealers want every type of coin, and if dealer A is friendly with dealer B, he might send certain merchandise over to dealer B with the implicit understanding that dealer B would reciprocate in the future. Even sharks have been known to work together for their mutual benefit.

True, but you left the collector sharks out of the equation. In other words, maybe the dealer thought the collector would appreciate the advice and reciprocate one day.

IGWT

Or, maybe the coin was a turd, and the referral was a Stackstical joke against Dealer X.

Lakesammman

Or, maybe the coin was a turd, and the referral was a Stackstical joke against Dealer X



Similar thoughts already expressed.

Genuinly helpful.
Coin a turd.
Person asking a turd.
Practical joke on dealer X.
Quickest way to get rid of the person.
Doesn't deal in coin X and would take too long to figure out.
Has no cash.
Doesn't want the consignment.
Has seen the guy at auctions and doesn't like his style.
Trying to pack up and leave.
Thinks the guy is rude butting in.
Saw the rediculous asking price or PQ sticker on the slab.
Etc, etc, etc.

ThePennyLady

Since I specialize, I often refer people trying to sell non-copper to other dealers. And if I'm being offered copper that I don't need, have too many of that date, or the coin is has problems, etc., then I'll also refer them to someone else. And the same goes if I don't have a coin they need, I will send them to another dealer who I think might have what they're looking for.

telephoto1

<< <i>On several occasions at the Baltimore show, as I was peering into the glasses cases of various coin dealers, another collector would bully himself up to the front and ask if the dealer would be interested in buying the coin the collector was offering for sale. As I continued to look at the case, and keeping a sharp ear out for how the transaction would go down, I was intrigued by what I was hearing.

The dealers would say something like, "I am pleased to have seen your coin, and thank you for stopping by. However, I'm not interested, but go see Dealer X, and he will probably buy it."

As I heard these words, I silently wept, thinking that capitalism was indeed dead.

Although there is no certainty in the world, and you need to take risk in business, if the dealer was so certain that Dealer X would be interested in the coin, why didn't the current dealer make an offer, and then seconds later flip it himself to Dealer X (albeit at a razon thin margin)? This was the same dealer who, later in the day, was commenting that there was nothing on the bourse to buy.

Any thoughts or comments? >>



In my experience (and I should know because I've said it myself!) this is usually a polite way of passing on the coin...Sometimes you can simply read something as a nowhere deal and/or just pass for various reasons. Perhaps he just didn't need or want it; perhaps he knew this guy from previous interactions and didn't want to waste time researching and quoting numbers on something that was likely going to have every last nickel shopped out of it at the show...or maybe what the seller was offering was outside the dealer's area of specialty and he was pointing him in the right direction towards someone he thought could offer him the best money. No two such interactions are necessarily alike to be sure. Quite often if you see the same guy get the same brush-off from several dealers, the guy's usually a known quantity and it's a nowhere deal. (And, most likely, the would-be seller will come here and start a thread about how no one appreciated his uber-awesome PQ gem). JMHO

MICHAELDIXON

At the small show I put on, I know what the dealers are looking for. Whenever somebody comes in and asks if I am buying and shows me a coin or coins, I tell them exactly who is looking for the coin. That way, he goes straight to the dealer and cuts out the middleman. It seemed to be the norm at the shows back in the 1970s. Is it not normal to help out other dealers today?

renomedphys

In Long Beach, I presented two coins for sale to dealer X. One of them is/was the bluebell reverse pictured below. I told him my asking price. We haggled, and shook on a deal. Later that day, I heard that dealer Y had two coins that looked like ones I had owned. I went to see him, and sure enough, he had just bought them from dealer X.

Capitalism is most certainly NOT dead.

MsMorrisine

you haven't seen Miracle on 34th Street??

RWB

It's a very small business/hobby. Helping another will pay off in the future.

bidask

<< <i>It's a very small business/hobby. Helping another will pay off in the future. >>

Yes I agree, kinda like the Miracle on 34th Street theme when Macy's employees were sending customers over to Gimbels.

Trime

In what I do, I refer people to others if I think they can help in a special way. It is neither stupid not anticapitalistic , it is just the right thing to do. In the end, building good will and helping someone out comes back two fold. Try it you will like it.

JBatDavidLawrence

I typically do it in these cases:
1. Customer wants too much for it.
2. We can't make enough on it to be worthwhile.
3. I really don't want the item.
4. It is too obscure to figure it out in a decent amount of time...

CaptHenway

We have a fellow who comes in who used to show us coins and ask what we would pay for them, who never ever sold them to us. Eventually we beat him with sticks until he confessed that he was buying stuff from other dealers on approval, and showing them around to get a feel for the wholesale value of the coins before committing to take them. Apparently it never occured to him to simply tell us the truth and ask our opinion.

TD

pennyannie

I always tell them to go see xx dealer ( the guy i do not like) I also tell him/her he is a strong buyer and he will try to lowball you first. So do not settle for the first offer and to tell the dealer to sharpen the pencil and get right with the world. I do this at least 50 times a show.