Dealers handling complicated accumulations and purchasing already-evaluated collections at a future
halfcentman
Posts: 1,498 ✭✭✭
SCENARIO:
You are solicited to make an offer on a typical, retail accumulation that's NOT organized (e.g. 90%, 40%, circ collars, wheat cents, etc all together with FV stuff - you get the idea; it's not a "clean" deal).
After providing them with a free, verbal appraisal (such as I'm paying 17.5X face for 90%, etc.), they are impressed with your prices, but they need you to evaluate everything as they have to discuss it with other family members.
You come up with a total, telling them that it's subject to market fluctuation, and they say they will get back to you in 48 hours. They do exactly that and accept your offer.
OK, here's the issue, and it's time for your answers:
1) Because they did not sell you the stuff during your initial visit, do you charge them for a complete breakdown?
2) How do you cover your butt to make sure that everything is there without evaluating the stuff over again? All it takes is for your customer to pull out $1.50 in 90% and you are out $25.00. Not that they would, but they could. There is a difference between trust and being naive.
SOMETHING TO THINK ABOUT
As a coin dealer, we are professionals, and we deserve to be compensated for our time, just like an attorney. The customer would then be given the option UP FRONT of having me put their items in packing boxes, have them sealed with tape, and put magic marker over the box in such a way so the dealer can tell if the seal had been broken. If the seals have not been broken, they would refund the fee to evaluate their collection 100% since they would not have to evaluate it a second time. If the seals have been broken, and I end up buying it, their fee would not be refunded as I would have to spend my time checking everything over.
I know someone who does this, and trust me, there are people who are not amenable to having their stuff sealed in a box. They want to get other offers. If they want to to that, no problem. He just states to come to be last, and if he cannot beat any of the other offers, he tells them to sell it to top offer, but they still have to pay me his fee up front to get a complete breakdown.
Now it's your turn to chime in. I am not taking any position here, but I would love to hear what you guys think, particularly the guys who have brick-and-mortar stores are buyers who visit peoples' homes. We are also talking about dealing with the general public who knows virtually zero about coins; not guys and gals like you.
You are solicited to make an offer on a typical, retail accumulation that's NOT organized (e.g. 90%, 40%, circ collars, wheat cents, etc all together with FV stuff - you get the idea; it's not a "clean" deal).
After providing them with a free, verbal appraisal (such as I'm paying 17.5X face for 90%, etc.), they are impressed with your prices, but they need you to evaluate everything as they have to discuss it with other family members.
You come up with a total, telling them that it's subject to market fluctuation, and they say they will get back to you in 48 hours. They do exactly that and accept your offer.
OK, here's the issue, and it's time for your answers:
1) Because they did not sell you the stuff during your initial visit, do you charge them for a complete breakdown?
2) How do you cover your butt to make sure that everything is there without evaluating the stuff over again? All it takes is for your customer to pull out $1.50 in 90% and you are out $25.00. Not that they would, but they could. There is a difference between trust and being naive.
SOMETHING TO THINK ABOUT
As a coin dealer, we are professionals, and we deserve to be compensated for our time, just like an attorney. The customer would then be given the option UP FRONT of having me put their items in packing boxes, have them sealed with tape, and put magic marker over the box in such a way so the dealer can tell if the seal had been broken. If the seals have not been broken, they would refund the fee to evaluate their collection 100% since they would not have to evaluate it a second time. If the seals have been broken, and I end up buying it, their fee would not be refunded as I would have to spend my time checking everything over.
I know someone who does this, and trust me, there are people who are not amenable to having their stuff sealed in a box. They want to get other offers. If they want to to that, no problem. He just states to come to be last, and if he cannot beat any of the other offers, he tells them to sell it to top offer, but they still have to pay me his fee up front to get a complete breakdown.
Now it's your turn to chime in. I am not taking any position here, but I would love to hear what you guys think, particularly the guys who have brick-and-mortar stores are buyers who visit peoples' homes. We are also talking about dealing with the general public who knows virtually zero about coins; not guys and gals like you.
0
Comments
<< <i>I have always gone with my "gut" feeling. If my feelings are the people are honest and I believe everything is there as it was whenever I made the original offer I do not confirm it. If my feelings are the people are dishonest, I look over everything again. >>
I agree with that, and from my past experience, 90% of the collections do not follow this because I am able to break it down and chunk it out to a point where I can go through it quickly again.
For example, all of the 90% goes in a bag, and I weigh it in grams - dividing the weight by 25.02 (compensates for slicks) to get the face. I know what my bags weigh as well.
The 10% so to speak has come into more play as of late, and I am also dealing with more people who have not been referred to me.
Thanks for taking the time to reply.
Greg
1. Accurate count and organization of the items. Organization is critical here. Polite at all times even if constant banter from seller about how coin dealers are nothing but lying thieves, incompetent goofs, or unable to read a price guide. I remember one guy saying "your all buncha...... you .........but I like the way you took the time to look at all and just not weigh it and spit out a number mumbling some excuse....Oh and by the way i post on the ......message board under ....you may want to educate yourself and read some of my posts....."
2. My own count sheet organized and in code so items can be quickly verified and valued if they come back.
3. Problem items and pure junk like circ common wheats, cupro nickel trash valued accordingly and not allowed to drag down the deal.
4. An accurate sell value for the nice stuff x my offer factor to give me an idea what floats my boat on buying it.
5. Quick and decisive offer with cash money being put out on counter / table. No inordinate time spent fumbling around with priceguides, greysheets, etc.
6. Staying away from even dollar offers like $500 or $1000 and saying stuff "My best offer after running the numbers is $458." Or "Lets see can do $967 if today." Or perhaps, "Well with what the markets shows I would offer $478 but let me just fudge it up to $500 if thats ok with you."
7. Being cognizant I don't owe them anything, being the bank for their collection, the fall guy for their mistakes, etc. I am out to make them the fairest offer I can and still be able to flip it immediately for an instant profit after ebay, teletrade, or show fees and beat out any competition they may have shown it to.
8. No wasting time with non serious indecisive sellers. If lots of traffic at table weed out the tirekickers, etc and concentrate on those there to make a deal. The most promising, profitable deal given priority.
9. Get rid of anyone trying to butt into or interrupt the deal, whatever it takes. I call it unrestricted bourse room warfare.
10. Once purchased I quickly put it out of sight until I have had a chance to examine and evaluate for proper retail pricing. If an onlooker bugs you about seeing it before you have had a chance just say "Sorry, they are for a customer" or "Maybe later in show I am pretty busy right now." Don't let them try to rip you before you have had a chance to look at it. This can be especially true with BU rolls. Greysheet can be way under what you could retail or slab some of the nicer singles for. The rest of it can then blown out after you have taken the profit on the nicer stuff. Once you have bought the deal and put it safely away it may be a good time for to step away from the table to the hotel bar for a burger and a nice brew savoring the excitement of the show and your next move.
Even though almost all of these deals are done in peoples' homes, many of the basic tenets you listed apply.
I have also been dealing more and more with the semi-knowledgeable crowd lately who go on eBay and see their $22'ish dollar circ dollar sold for $56! I would much rather hold someone's hand through a transaction, or deal with another dealer in a rapid fire motion.
In any event, others can feel free to chime in.
Greg
<< <i>. . . . . I have also been dealing more and more with the semi-knowledgeable crowd lately who go on eBay and see their $22'ish dollar circ dollar sold for $56! I would much rather hold someone's hand through a transaction, or deal with another dealer in a rapid fire motion. >>
Wow, does this ring a bell. I've also had some people find out what an MS-65 1901 dollar sold for, then claim that their 1901-O AU dollar looks the same to them as the MS-65 1901 dollar, and therefore should be worth that same amount. Then I need to educate the person.
One of the difficult issues I have faced is going through the whole collection, sorting it, pulling out the coins worth only face value, giving a price on the whole deal, only to hear "we want to think it over", then finding out they quoted your offer to the next guy and he raised it by $10 and got the deal. The next guy doesn't have to do all of the work I did, as everything is now sorted out, and a value estimated. The only thing I have come up with is to ask them to respect your offer and to be fair to you, that they not disclose it to the next guy.
An authorized PCGS dealer, and a contributor to the Red Book.