Stupidest dealer mistakes
logger7
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I remember one major buyer for a top dealer saying at a show that "your word is all you have" in this business--that and your reputation. So transactions that are done over the phone, etc. require honest follow throughs. Unless the contract was based on things that later changed or that were conditional, it must be honored.
What types of dealer mistakes have you seen that do serious damage to their ability to continue to be successful? Making an offer and not following through if it is accepted? "I'm not making enough money on this deal" after the contract had been made. Thefts of any type, dealers who were known for that become pariahs. I had one dealer who retaliated without cause by buying a cheap coin on ebay to leave me a negative that ebay quickly deleted as well as other monkey business.
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Primary Dealer Mistakes
Become one...........
"When they can't find anything wrong with you, they create it!"
I already am. Since 1990.
You forgot one, Cougar.
Buyingg expensive material that might turn/ go bad in holder
Founder- Peak Rarities
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You got me Dan. In that case move inventory quickly.
Not understanding that some seemingly plain folks are actually quite intelligent and have money to spend.
Allowing dead product to dominate their inventory.
Insisting on making money/coming out even/losing at most x% on any given coin. Dealers will misevaluate the market from time to time and pay more for a coin than they should have. The most important thing is velocity of money. If you pay $3000 for a Saint, and then gold falls $500, you need to understand that your Saint is worth far less now, but as a dealer you just need to sell it at the current market and try to do better. You can't afford to ask what has become "Moon Money" for the coin and wait for years for it to come back.
If you habitually make 10% on a deal, you'll do better taking a 30% loss from time to time and taking the 70% you have left and plow it into things that you can earn your 10% on. Even if the initial coin recovers, you're likely to do better after six months my way.
I have seen dealers judge people by what someone looks like way too many times and have had it happen to me too even as a dealer. I also made the mistake of not realizing that I had not added up every coin in a group of coins that I was selling and gave away a coin for free.
...and not wearing a bib while eating their hotdog.
I just wear a black shirt so the mustard stains can be washed out easily.
One of the worst things a dealer can do is to write a bad check especially to another dealer. I remember many years ago, a dealer friend got a bad check from another dealer. He waited until the next coin show and put the bad check in one of his display cases with a big "BAD" printed on it with a red magic marker. It didn't take long for the word to get back the dealer who wrote the bad check who then ran over to his table with a fist full of cash to buy his check back.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Not paying enough for customers’ coins — when a customer is low balled it becomes free negative advertising for that dealer.
Consider that customers may test a dealer to see if he or she is fair on both sides of a deal before repeat business follows.
Greed is not good; the love of money (not numismatics) is the root of all evil; be fair on both sides, or just collect and make something useful.
A surly attitude and prices so high that even other dealers talk about your prices. A static, aging inventory goes along with those issues. Cheers, RickO
Writing a bad check is a felony over a certain amount, it's like theft. My local police department issued an arrest warrant for a customer who bounced a check on me for several hundred dollars, out on the West Coast, when they found out they paid me right away. Our local club show has as the only condition for being asked back on the next show not issuing rubber checks.
I prefer to use the the term "dealer mistakes", rather than "stupidest dealer mistakes"
I think a big one is not thinking long term.
That pertains to the way a dealer treats his/her customers, including pricing of coins, making a two way market, answering questions and of great importance, thinking from the collector's point of view.
It also applies to how the business is run. Among other considerations, are: having adequate funds, keeping a fresh inventory, building/maintaining relationships with other dealers and customers, keeping up with market trends and building a good reputation.
Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.
Not having cash. I negotiated a sale of some bullion with an unfamiliar dealer at a small show once, and when it came time for payment he whipped out a personal check book. Nope.
Nothing is as expensive as free money.
A while back I asked a dealer over email if they were interested in a 1955 Doubled Die cent graded MS 63 Brown by NGC. After sending detailed pictures they called me and told me they would offer me $3500 cash. I told them I would be at their store in 30 minutes. When I arrived they looked at the coin quickly said it had been cleaned and offered $700. I told them NGC graded it and I didn’t believe it to be cleaned (and neither did he when he looked at the close up pictures of it originally).
I left and was very upset he took back his original offer. I am thinking he had second thoughts after he told me $3500. After he finished my call he probably looked it up online and realized they were only selling for about $2200 at the time despite the fact the gray sheet said $3700.
@BryceM said: Not understanding that some seemingly plain folks are actually quite intelligent and have money to spend.
This makes me think of one of the funnier "Coin Show" stories I've heard.
Two dealers at a smaller, slow local show were chatting with the one guy grumping about the "tire kickers" and that he was tired of reaching in and out of his case, showing coins with no buyers. Along comes a normal looking guy in beat up jeans asking to see a coin from his case. The dealer tells him "That's a pretty expensive coin, it'll cost a dollar to look at that one." The guy reaches into his pocket and pulls out a wad of bills that would choke a horse, peels off a one-dollar bill and lays it out on the top of the case.
The dealer sheepishly handed him the coin, he looked at it for a minute and then handed it back, thanked him and walked away.
OOPS!!!
I think some dealers lose sight of collectors. They spend most time dealing with other dealers and their customer service stinks. Nothing bothers me more than when I am about to spend a "good amount" of money, and the dealer is a total jerk. I just don't understand the mentality, and so I take my business elsewhere.
I have a list of dealers that I love, and a list of dealers that I will not do business with. The material is something I can find almost anywhere. Personally, I would rather pay 10% more and have a great time, than get a 10% "deal" and be irritated thought the transaction by the dealer's mouth and attitude.
I am a newer collector (started April 2020), and I primarily focus on U.S. Half Cents and Type Coins. Early copper is my favorite.
Not being friendly with customers.
Not taking the time to listen and learn the customer.
Thinking that young folks don't have money.
Dishonesty of any type is a good reason to not do business with a given coin dealer; profane or vicious rhetoric are not uncommon in any business area but are uncalled for in most situations. Airing problematic private matters should usually be outside the field of business transactions. A shop dealer told me he was going through a divorce so he wanted all his transactions in cash because the wife's lawyer didn't know how much he made. Dealers have knowingly over-graded their material and are simply uninterested in the reasons why a given coin is cleaned, etc.. Personally I want the truth in this hobby. If a dealer didn't catch a rare variety I'll let them know.
I think MASSIVE ARROGANCE is the stupidest mistake.
Many years back I was a 17 year old selling Fuller brush. One day I tried to deliver an order to a crying woman who said her husband had died and she could not pay me because the bank had told her they would not honor her checks. Then she tried to buy a bottle of Witch Hazel lotion with proof Barber coins. Turned out they had two massive safes filled with coins.
I tried to call a coin dealer on the West coast (don't remember name), but two minutes in he asked if I was a kid and then swore a lot and told me to never call again. Next I tried an East coast dealer. He made the first guy sound like a rep. for the Pope. Finally I called the only coin dealer I had ordered from. Jake's Marketplace in Chicago. That guy listened, told me he knew what to do and had me wait for a call back. Can't remember his name either, but he had me describe some of the coins, (We are talking Hundreds of Proof Seated and Barber coins plus thousands of other coins)m in the end he made arrangements to visit her.
I have no idea what happened in the end, except later I would return to find a brand new Caddy in the driveway. Sidenote, she never bought another order from me. But I wonder what arrogance cost those dealers.
Introspection, in my humble opinion, is a good thing. Peace Roy
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Forget that.
Just wear a yellow shirt.
Pete
And then you drip ketchup.
peacockcoins
Sometimes, it’s better to be LUCKY than good. 🍀 🍺👍
My Full Walker Registry Set (1916-1947):
https://www.ngccoin.com/registry/competitive-sets/16292/
Relish?
peacockcoins
I was one time at a dealers shop and me and my wife had found a couple of high priced coins to buy then an older lady came in trying to sell him the newer proof sets. They would've been 1990 to 2005. He refused and quite got angry with her. Called her a few words that I hadn't heard for a while. I told the wife we should leave and never bought the coins. As a dealer I don't think he should've acted that way but she may've done that before
A mistake isn’t necessarily stupid until you’ve made the same one twice.
I had a dealer do this to me on a small lot of coins. I went to his shop testing his bid on some silver coins. He was so far away from the market I was shocked. I asked him twice if he was sure the coins weren’t worth roughly 8 times the price he offered me. I’ll never walk into his shop again.
I’ll add I sold the coins for fair value to another dealer.
The biggest mistake I encounter with some frequency is online dealers failing to note cleaning on raw coins.
Once I receive (and then return) a cleaned coin, I won’t consider anything else that dealer offers, no matter how good it looks.
I've given up buying raw coins from on-line coin dealers.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
@PerryHall
I'm almost there myself. Although, the last two I picked up were both as described--nice and problem free. Made me want to send those dealers a medal, or at least a shiny, foil star sticker.
I agree - but I also think there are a lot of inexperienced sellers on eBay that may not have the skills to determine whether a coin is cleaned, market acceptable or original.
Some years back a dealer friend gave me the backstory on a nice estate he acquired.
He said he saw the same couple at three different small shows walk around with a few type coins to sell. Each time he was the acquirer. At the third transaction, they announced “you win”, you’ve consistently been the nicest to deal with, and offered us the most fair price. We’d like to offer you grandfather’s collection, if you’re interested…..
Best course of action as a dealer IMO is to simply pass on buying the coins rather than making a lowball offer. Always thank the customer for the opportunity and hopefully next time a deal can happen.
Sometimes dealers are ignorant of values outside of their speciality (e.g. a dealer focused on classic US coins may not be able to quickly and accurately price a rare ancient) or the dealer doesn’t have the market to resell the item and must be conservative with an offer.
Being ignored by dealers. Number of times at a show; I wanted to look at a coin and a guy walks up next to me, and the dealer starts talking to this person. I assume he knows him, and the conversation keeps going. I end up walking away, he had the coin I wanted, but he missed the sale. I void dealers like that in the future.
Everything is all right!
Those are the dealers that you want to continue to patronize.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Very true, and I try to give people the benefit of doubt. Though I definitely make note of it when I’ve returned a cleaned coin—and let the dealer know the cleaning was the reason for my return—only to see the coin relisted with no mention of the problem.
You’re absolutely correct.
I came to realize this. I had conversed with him on some other matters, actually heeding some advice he offered on other coins and currencies, some that I sold him. Yet the event I imparted above gives me much pause in dealing w him again.
On a positive note about a dealer, I went to shop to sell a pair of gold coins, same type. I thought he was a bit low by about 10 percent. I haggled a bit. He explained clearly the market and his rationale for his price. I sold him one. Days later I had a pricier gold coin to sell and he asked me what I wanted for it. I told him. He turned his head sideways for several seconds. I’m thinking, shoot, he’s not going to pay my price. My heart beats louder. He turns back to look at me and offers $200 above my ask. So though I thought I knew the value of those gold coins, I was mistaken. Incidentally, he’s the dealer who gave me the fair price on silver coins I mentioned above.
That reminds me of the handyman in my building who talked about a car he bought from a neighbor who didn't mention the mechanical problems. He felt insulted by that and hasn't spoken to him since. He listed the same car online mentioning the problems in a fully transparent way: when the buyer came, noticing his candor and transparency he was impressed to the extent that he gave the handyman a substantial sum of money in addition to what he was asking. Bottom line: people like full disclosure.
My interactions with dealers have been consistently positive. I have bought and sold to dealers and have interacted with many at shows and on-line over the course of many years. That said, I avoid unethical or rude dealers, but these have been few.
From my perspective, having terrible pictures is a big mistake when the majority of one's customer come from on-line purchases. There is a specialist dealer/auctioneer (who carries nice material) that refuses to upgrade his pics because he thinks his pics are great. That's a disappointment for the buyer and the consignor.
"Got a flaming heart, can't get my fill"