What benefit does a dealer get by drastically over pricing their coins?

opportunity

Now let's not get off on the wrong foot...this isn't a thread to whine about other people's right to price their stuff as they see fit, which I support. But, I'm genuinely interested in learning the ins and outs of the coin business. So, let's say that you spend $2,000 on show fees, hotel, travel, etc. but by Sunday you are complaining that you haven't done any business (I've overheard this conversation many times at shows). You are the same dealer with boxes and cases full of stuff that's total junk priced at 500%+ of reality. How? Why?

BAJJERFAN

Price it to sell and if it still doesn't sell, I'd think long and hard about dragging it to any more shows.

ambro51

Force of habit.

AUandAG

Never having to buy new inventory comes to mind.

bob

SmEagle1795

Perhaps they are a collector at heart and don't want to let go of the coin unless they receive "an offer they couldn't refuse".

DennisH

No rational answer comes to mind.

bolivarshagnasty

They have a case full of mistakes they have made and want the general public to bail them out.

mustangmanbob

Like one dealer at a recent show:

"Actual Prices are Higher than what is marked on the coins"

Now THAT puts me in a buying mood.

TopographicOceans

Always start your negotiation at your lowest price.

Oh wait, that's not right

johnny9434

<< <i>Never having to buy new inventory comes to mind.

bob >>

ive seen that before

roadrunner

Potential buyers see the crazy asking prices and figure that dealer MUST be one of the strongest (or clueless) buyers out there. So sell to them at only a 300% markup...leaving them an additional 200%.

Kove

The "drastically overpriced dealer" gets a lot of attention around here, but in real life they tend to fall into a handful of groups. Usually, they are at small shows, and are either part-time dealers who have a job to support them, semi-retired dealers who still want to be around the game, or collectors trying to sell off some of their collection over the weekend. These people don't depend on selling coins for a living. Full-time professional numismatists are often besmirched by the generous usage of the term "dealer" for many of these weekend warriors .

I don't think I've ever seen a full-time dealer, at a major show, selling the OP's "total junk priced at 500%+ of reality."

lasvegasteddy

probably runs off tha riff-raff
best customers to buddy up with......assessment tool.....if some take prices seriously and don't inquire
a service path for fools and money to part upon
advertising has many diversities to it...whatever gets um talking

yup
bottom line
it's a sorting tool in advertising...surely

a savvy dealer whose already made his money and is having fun
probably with stock he gets for free anyway

as diverse as collectors are...dealers have their shades too

BillJones

There are some people who can be fooled by a "drastic discount." This is logic behind the junk box that is labeled "Every item half price!" Some how you get it into their brains that the opening price is legitimate and that the 50% off price is "a bargain."

Therefore if you over price something at $125 and then "discount" it to $75 although it's really only worth $50, it's "a bargain."

toyz4geo

I've seen a dealer at some of the shows I've attended with most of his coins in 2X2's, very little, if any, slabbed. They have 4, 5, or 6 prices marked on them, each price marked through, with the next price on top of it. The prices were going up, not down. Some of the 2X2's had so many prices, there was no room for another change. Nothing really looked fresh. I found it hard to get a price I could live with so on to the next table.

lasvegasteddy

<< <i>I've seen a dealer at some of the shows I've attended with most of his coins in 2X2's, very little, if any, slabbed. They have 4, 5, or 6 prices marked on them, each price marked through, with the next price on top of it. The prices were going up, not down. Some of the 2X2's had so many prices, there was no room for another change. Nothing really looked fresh. I found it hard to get a price I could live with so on to the next table. >>



as a new sticker concept for this hobby is born
"cardboard flip stickers"
for when ya run out of room and don't want to change the cardboard flips...

ms70

I think it's like fishing. If you put it up there and it gets 3 or 4 watchers, just keep dangling it.

TwoSides2aCoin

I don't know. I heard most dealer's inventory is pure profit. . I don't know how, or when since after the costs in a B&M, it's a wash , or worse . And that's often less. Can't profit on every purchase, but by God, I give it my best effort factoring the costs to"resell".

A table is different. I cannot effectively address that situation. My travels, miles, etc., are limited. If I leave, there's nobody to answer the calls at the shop. If I shop, I buy more than what others are willing to spend. I'm stupid in that regard. But, I like the coins I buy. And I get upside down once in a while. C'est la vie. I say, " Lay an offer out there"

Unless he OWNS every coin ; and the costs for TRYING to display them to the public isn't worth it now, I cannot imagine why he would not budge from levels that YOU, or me, or anyone who WANTS the coin interpret to be "fair". Especially when you can go to the next table or online to buy the same thing. However, when each coin is standing on it's own in each case then whoever pays that cost to display it is entitled by the nature of his dues being paid, to charge whatever he wants. And if it doesn't move, remember.. Nobody is really in a "hurry" with this hobby… Even if that were the case, a venue would still operate smoothly out of the vest pockets.

TomB

I'm not certain how long any full-time dealer can spend four-figures attending shows and sell virtually nothing while having sky high prices. I just don't see the reality of it for full-time dealers.

MilkmanDan

<< <i>Perhaps they are a collector at heart and don't want to let go of the coin unless they receive "an offer they couldn't refuse". >>



I think this is true, at least for some dealers in this category. It may not apply to all of their inventory, maybe just their "core collection".

agentjim007

I use to work in a shop and my boss said he doesn't make money selling coins he makes money buying. Don't think for a second dealers bury themselves in stuff coming over the counter. Dealers have their wholesale buyers and the rest of us are the "take a shot customers".

AMRC

"500%+ of reality."

Are you sure this was not a TV coin show?

cucamongacoin

you can always come down, but can't go up