Dealer-to-dealer Networks
shorecoll
Posts: 5,445 ✭✭✭✭✭
How much sales volume does it take to justify joining the electronic coin trading systems?
If this has already been discussed, just point me to an old thread, I couldn't find one.
ANA-LM, NBS, EAC
1
Comments
Wow...this is the topic that stumps this crew???
or is it a case of monkey no hear, monkey no see, and finally monkey no talk??
Watch out big brother is listening to all.
It really depends on the volume and purpose. I pay almost $350 a month for cce and coinplex.
You be the judge.
It also depends on the coins you are looking to buy and sell
I'm not sure if it can be easily answered. I am a relatively low volume business. Most of the transactions were above my comfort level, so I was unable to take advantage of the network to a large degree. In theory, the contacts and access to more wholesale trading should increase your sales. I was a member of one of the dealer to dealer networks for a little over a year and didn't see the cost justifying the expense for me. Most months I would do enough business on the network to cover the cost of being there, and there was other benefits for pricing info etc., but just breaking even on cost wasn't enough to keep me going back.
My Ebay Store
Two questions for you then. If someone needs this info, they are probably small dealer or wanna-be dealer. Ebay, small coin shows etc. For this person, which would be the best one to try.
You said that it depends on the coins you are looking for... So could you give just quick summary of the coins one would most likely find on either network.
Thank you in advance for your time... ch
Each dealer uses cce or coinplex for different things. Some read all the daily buy and sell messages posted. This could be helpful for indications of whats hot/not as well as know where to go with coins you come across. (you can also buy to help fill other peoples wantlists)
The bids I look on cce are really just sight unseen bids and occasionally a morgan dollar from 1 or 2 bidders that I know may or may not be looking for that coin. The sight unseen tends to be on lower end widgets that I check in order to see downside potential).
On coinplex I check for bids on generic gold (where heritage places their bids) and to see if there are any cac bids.
Some other dealers have begun placing bids on better coins (almost all higher end cac) as well.
This is just my personal experience and how I run my business. Many other dealers do things differently and could easily have different experiences.
I believe both cce and coinplex have a free 1 month test run you can take. I would say why not give it a try. Alternatively, perhaps try a 3 month trial in your business by investing the $350 a month and see what comes of it. If you are doing more business then that would be a reason to continue.
I believe when I first joined the networks I was selling about $20k-$30k per month.
Attend a "major" coin show on day one....now go back to the same show on day two and you will see....tumbleweeds.
It's all about dealer to dealer transactions and THAN they throw their booty on the interwebs for someone like me to pad their wallets.
It all depends on what comes and and goes out wholesale.
I will say this you will know the pricing on wholesale coins quickly and who is picky and who is not.
And in a very few cases you will quickly know who passes bad paper and slow payers.
I'd have to be on a heavy dose of mustard to stomach "dealer to dealer booty".