Interesting offer from a well-respected dealer

astrorat · February 8, 2012 8:56PM

One of the dealers (Dealer A) I have purchased from a bit sent me an offer on a coin I need. I thought I recognized the piece and searched another dealer's site (Dealer

and indeed, my memory was correct.

What is interesting is that Dealer A offered the coin to me at a substantial premium above Dealer B's retail price (that's okay, it's a free market) and even used Dealer B's photo of the coin! As far as I know, I have never had such an offer before and I assumed if the coin was offered for sale, it was in the possession of the person offering it.

notwilight · February 8, 2012 9:02PM

Why haven't you purchased the coin from dealer B if it is on your want list?

TwoSides2aCoin · February 8, 2012 9:02PM

It seems to me that Dealer A thinks the coin is worth substantially more than Dealer B. So much so, that he thinks you should think so, too. Decline the offer and go buy if from Dealer B. Then sell it to Dealer A for substantially less than he's asking. If he's a good dealer , he'll swoop on it like a vulture, you will make a profit. Like you said, Lane... it's a free market

RYK · February 8, 2012 9:07PM

You can never assume that you know who owns a coin offered for sale.

darktone · February 8, 2012 9:08PM

Pretty common to try to sell another dealer inventory. You never know but dealer B might not have possession of the coin either.

Tiny · February 8, 2012 9:16PM

Dealer A knows you want the coin and has found it in his travels around the web so he's banking
on that you haven't. He's just trying to make a buck like everyone is so I don't think you should
think badly of him. Aparently you're not going to buy it at Dealer A's offer and if you found Dealer B's
price and haven't bought it either so perhaps continue you search for a coin at the price you like.

AngryTurtle · February 8, 2012 9:20PM

<< It seems to me that Dealer A thinks the coin is worth substantially more than Dealer B. So much so, that he thinks you should think so, too. Decline the offer and go buy if from Dealer B. Then sell it to Dealer A for substantially less than he's asking. If he's a good dealer , he'll swoop on it like a vulture, you will make a profit. Like you said, Lane... it's a free market

>>

Now here is a plan I like!

NebuchadnezzarTheGreat · February 8, 2012 11:07PM

Sounds to me like Dealer A is not a dealer you should generally do business with as he's just hawking other dealer's coins. Possibly a telemarketer or something of the like?

ricko · February 8, 2012 11:09PM

It is all business... either buy or walk.... Cheers, RickO

pmac · February 8, 2012 11:14PM

Obviously Dealer A has a list of "wants" from you. He noticed Dealer B has one of your "wants" and wants to make a 'little' finders fee, not knowing you have looked over Dealer B's wares. You must give him credit for keeping you in mind.

C0INB0Y · February 8, 2012 11:21PM

This sounds like when Bill Gates was approached by IBM for an Operating program and he then went out and bought it from Seattle Computer Company.

Sonorandesertrat · February 8, 2012 11:24PM

This is not unusual. Many dealers, at times, act as brokers. They simply line up a buyer with an owner for a small percentage, or even buy an item from another dealer (who actually owns it) once a prospective retail buyer signals interest.

RYK · February 8, 2012 11:29PM

<< This is not unusual. Many dealers, at times, act as brokers. They simply line up a buyer with an owner for a small percentage, or even buy an item from another dealer (who actually owns it) once a prospective retail buyer signals interest. >>

Heck, there are even "dealers" who are retail fronts for wholesalers and do not own the inventory. Some of them are big names. Some are smaller fish. There is at least one who is active on this forum.

Unknown · February 9, 2012 12:37AM

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AUandAG · February 9, 2012 12:43AM

<< Obviously Dealer A has a list of "wants" from you. He noticed Dealer B has one of your "wants" and wants to make a 'little' finders fee, not knowing you have looked over Dealer B's wares. You must give him credit for keeping you in mind. >>

bob

BaseballAbs · February 9, 2012 12:48AM

<< You can never assume that you know who owns a coin offered for sale. >>

Got that right. I saw a guy a while back selling coins that were currently on the David Lawrence website. Perhaps the coins really were his and out on commission, but it kind of bothered me.

AbesNeighbor · February 9, 2012 12:49AM

Maybe it was consigned, not sold and re-consigned. The price floated may be flexible.

Bochiman · February 9, 2012 1:31AM

Yeah....I find that kind of hinky and a type of fishing....

Last year, I got a note from a well respected dealer with a web presence and a store in Boston for an early copper piece we need. Talking to folks here, someone pointed out the same coin was listed on a well respected EAC person's site for SUBSTANTIALLY less. I investigated and it was indeed out on consignment. It was quite a bit more than I was willing to spend at that time, so I passed. It went unsold and back to the original owner. I lost track of it after that.

I fully understand consigments and the value to all parties. I do find the repeated markups, particularly when a coin isn't selling to start with, to be a bit of a turnoff. And, the higher prices make me think more than twice before purchasing anything else from them as I start to do a lot of checking to see if I can find the same exact coin for substantially less now.

baccaruda · February 9, 2012 1:37AM

Tell Dealer A that you'll sell him one cheaper than that - then quote a price only slightly higher than Dealer B's price and link Dealer B's website.

pocketpiececommems · February 9, 2012 1:57AM

O, The games people play.

GolfguyinTX · February 9, 2012 2:16AM

I really don't understand the controversy here and hope somebody can explain it to me.
1. Dealer A quote's a price higher than Dealer B.
2. Dealer B has the coin ready to sell.
3. Dealer A believes he can make a profit by marking up a coin that he can obtain from Dealer B.
4. Dealer A lost business because I would buy from Dealer B and be very reluctant to use Dealer A in the future.
When I am on the seller side, I want to get what the market will bear. When a buyer, I try to buy the best quality for as little as possible. Don't begrudge Dealer A from trying to make a buck, just shop elsewhere.

TomB · February 9, 2012 2:26AM

Dealer A may already have permission from Dealer B to offer coins to Dealer A's clients if they match an existing want list. The percentage premium is something different entirely and cannot be discussed in detail since we do not know the percentage or net difference.

PerryHall · February 9, 2012 2:37AM

Buy the coin from Dealer B.

Tell Dealer A that that you what to buy the coin.

Dealer A says its already been sold.

Tell Dealer A that you absolutely have got to have that coin and will pay triple if he can buy it back.

Dealer B calls you and says he would like to buy the coin back and will make me a nice profit.

You sell the coin back to Dealer B for a nice profit.

Dealer A calls you and tells you that he got the coin back.

You tell Dealer A that you changed your mind.

GoldClause · February 9, 2012 2:49AM

<< Buy the coin from Dealer B.

Tell Dealer A that that you what to buy the coin.

Dealer A says its already been sold.

Tell Dealer A that you absolutely have got to have that coin and will pay triple if he can buy it back.

Dealer B calls you and says he would like to buy the coin back and will make me a nice profit.

You sell the coin back to Dealer B for a nice profit.

Dealer A calls you and tells you that he got the coin back.

You tell Dealer A that you changed your mind. >>

LOL, I wonder if that would actually work.

baccaruda · February 9, 2012 3:03AM

Excellent. Perry has the correct answer. Hey, don't begrudge a guy trying to make a buck...

ColonialCoinUnion · February 9, 2012 3:07AM

I suppose it is also possible that Dealer A bought the coin from Dealer B, but Dealer B has not updated his website yet.

baccaruda · February 9, 2012 3:25AM

I guess he'll find that out when he pulls the ol' rope-a-dope on him.

timcoin · February 9, 2012 3:38AM

I am trying to figure out if we are all upset that dealer B offered the coin for sale to the collector, or if we are upset Dealer B is trying to make money at his profession. When you purchase something, anything, chances are you are paying more for it than the person you sold it to you paid. We all understand that. Otherwise it would be called charity. Sometimes this forum really feels like it has a liberal-entitlement bend to it.

chocolatebayou · February 9, 2012 3:58AM

Every coin we buy, the dealer we are buying from bought from someone else. If you find a coin you want at the right price you buy it no matter how many hands and mark ups it has seen. You don't want to burn your bridges, because you just might want the next coin Dealer A offers.

PerryHall · February 9, 2012 4:06AM

<< Every coin we buy, the dealer we are buying from bought from someone else. If you find a coin you want at the right price you buy it no matter how many hands and mark ups it has seen. You don't want to burn your bridges, because you just might want the next coin Dealer A offers. >>

Guess where the collector is in the food chain?

baccaruda · February 9, 2012 4:27AM

I don't think anyone's upset, we're just trying to figure out the best way to exploit the dealer's self-induced situation for maximum financial gain to the OP.

pmac · February 9, 2012 4:49AM

Are we really trying to find fault with either dealer? Dealer B, I'm sure, has a profit margin built into his price, and Dealer A, being a dealer, built a profit margin into his price, after having had to buy it from Dealer B.

ModernCoin · February 9, 2012 4:59AM

<< I am trying to figure out if we are all upset that dealer B offered the coin for sale to the collector, or if we are upset Dealer B is trying to make money at his profession. When you purchase something, anything, chances are you are paying more for it than the person you sold it to you paid. We all understand that. Otherwise it would be called charity. Sometimes this forum really feels like it has a liberal-entitlement bend to it. >>

+1 --- If anything be thankful dealer A is finding stuff for you

Cakes · February 9, 2012 5:26AM

<< Buy the coin from Dealer B.

Tell Dealer A that that you what to buy the coin.

Dealer A says its already been sold.

Tell Dealer A that you absolutely have got to have that coin and will pay triple if he can buy it back.

Dealer B calls you and says he would like to buy the coin back and will make me a nice profit.

You sell the coin back to Dealer B for a nice profit.

Dealer A calls you and tells you that he got the coin back.

You tell Dealer A that you changed your mind. >>

I love that, and remember, it's just business.

RYK · February 9, 2012 5:29AM

Sometimes, when a "well-respected" dealer sees something that you would like in the other dealer's inventory, he will just tell you about it and not try to get a piece of the transaction. These are the dealers that earn my respect.

acloco · February 9, 2012 5:48AM

<< One of the dealers (Dealer A) I have purchased from a bit sent me an offer on a coin I need. I thought I recognized the piece and searched another dealer's site (Dealer

and indeed, my memory was correct.

What is interesting is that Dealer A offered the coin to me at a substantial premium above Dealer B's retail price (that's okay, it's a free market) and even used Dealer B's photo of the coin! As far as I know, I have never had such an offer before and I assumed if the coin was offered for sale, it was in the possession of the person offering it. >>

Anything for a buck?

I would call or email Dealer B and inquire about buying coin.

I would not have an issue with this if Dealer A is now the owner of the item. Definitely have an issue with Dealer A if they are trying to flip something they don't even own. Believe that is spelled.....ethics.

Justacommeman · February 9, 2012 6:18AM

Usually when discussing buying a coin I ask if they "own" the coin unless of course I already know the answer

MJ

Wolf359 · February 9, 2012 6:30AM

<< Pretty common to try to sell another dealer inventory. You never know but dealer B might not have possession of the coin either. >>

Rehypothecation!

Coinosaurus · February 9, 2012 6:31AM

<< I am trying to figure out if we are all upset that dealer B offered the coin for sale to the collector, or if we are upset Dealer B is trying to make money at his profession. When you purchase something, anything, chances are you are paying more for it than the person you sold it to you paid. We all understand that. Otherwise it would be called charity. Sometimes this forum really feels like it has a liberal-entitlement bend to it. >>

I am upset with dealer B.

Because I do not perceive him as adding much value. He is a leech.

Anyone can surf websites.

Here's what adds value:

* extracting a coin from current client to sell to another
* setting up at lots of shows so things start walking up to the table
* staying up til 3am at the Heritage auction and catching anything slips through
* getting in a car and driving to every coin shop in a 500 mile radius to cherrypick

In other words, hard work and relationship building.

I want to do biz w/one of those guys, not the guy who just sits in front of his computer all day.

stman · February 9, 2012 6:33AM

<< 

<< This is not unusual. Many dealers, at times, act as brokers. They simply line up a buyer with an owner for a small percentage, or even buy an item from another dealer (who actually owns it) once a prospective retail buyer signals interest. >>

Heck, there are even "dealers" who are retail fronts for wholesalers and do not own the inventory. Some of them are big names. Some are smaller fish. There is at least one who is active on this forum. >>

Is the one on this forum "well-respected" just curious.

RYK · February 9, 2012 7:00AM

<< 

<< 

<< This is not unusual. Many dealers, at times, act as brokers. They simply line up a buyer with an owner for a small percentage, or even buy an item from another dealer (who actually owns it) once a prospective retail buyer signals interest. >>

Heck, there are even "dealers" who are retail fronts for wholesalers and do not own the inventory. Some of them are big names. Some are smaller fish. There is at least one who is active on this forum. >>

Is the one on this forum "well-respected" just curious.

>>

It depends on who you ask.

astrorat · February 9, 2012 12:39PM

<< Why haven't you purchased the coin from dealer B if it is on your want list? >>

The coin didn't fit into my set ... the grade was outside the norm for my set.

astrorat · February 9, 2012 12:48PM

<< 

<< 

<< 

<< This is not unusual. Many dealers, at times, act as brokers. They simply line up a buyer with an owner for a small percentage, or even buy an item from another dealer (who actually owns it) once a prospective retail buyer signals interest. >>

Heck, there are even "dealers" who are retail fronts for wholesalers and do not own the inventory. Some of them are big names. Some are smaller fish. There is at least one who is active on this forum. >>

Is the one on this forum "well-respected" just curious.

>>

It depends on who you ask.

>>

Who either dealer is, for my post, is irrelevant. I am not trying to out anyone, I just found the interaction interesting as it had not happened to me to my knowledge before. "Well respected" Dealer A is just that ... a well-liked dealer with quality coins and a great reputation who was addressing a coin on a client's want list. I don't hold it against them for trying to fill an order.

Interesting offer from a well-respected dealer

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