Is it good business or bad business for a dealer to extend discounts without being asked/prompted by

coinguy1 · August 23, 2005 4:54AM

I think there are pros and cons involved - cons, as in negatives, not cons as in some dealers are cons

- but will refrain from commenting until others have had a chance to voice their opinions.

MrEureka · August 23, 2005 4:57AM

SSP?

mgoodm3 · August 23, 2005 4:57AM

Since I don't dicker on the price, I find it a nice gesture to give me a discount, since I would have paid asking price in the first place.

DJC · August 23, 2005 5:00AM

Name your price, and I pay it. Nothing else to it for me. I don't haggle well, nor do I care to. Offering a discount is strictly up to you, and, while I'd never ask for one, I'd accept one if offered.

relayer · August 23, 2005 5:03AM

Discounts are reserved only for special customers - like those who ask for one.

ziggy29 · August 23, 2005 5:03AM

It's a good practice, unless other customers who weren't extended such a discount find out about it!

ccrdragon · August 23, 2005 5:05AM

My fav local dealer gives me a discount w/o me asking for it. I have never haggled a price with him and I have never paid his asking price on a coin, either.

GOLDGUY · August 23, 2005 5:08AM

Mark -- I think you're talking crazy! Where in the $%#& did you learn customer service???

Longacre · August 23, 2005 5:09AM

I never ask for a discount. I don't think discounts should be given unless the client is an established customer. I bought a few coins from one dealer and I always paid full price. Then on the third coin, the invoice came with a discount automatically included. I think it works for both the dealer and the customer-- the dealer is still getting a fair price and he recognizes a recurring customer, and the customer thinks he is getting a break on the coin.

Russ · August 23, 2005 5:16AM

<< I never ask for a discount. >>

I always ask for a discount.

Well, not really always, but most of the time. The exception is when I know I'm getting a rip at the asking price. I just pay it, but I'll usually act like I'm thinking about it for a minute so I don't look too eager.

Russ, NCNE

Elcontador · August 23, 2005 5:30AM

If am interested in a coin, I always ask for the dealer's best price. At that point, I either buy the coin or pass; no more haggling.

solid · August 23, 2005 5:39AM

I'd handle it on a case by case basis. For a regular customer or a potentially regular
customer, and depending on what I have into the coin, how many coins they are
buying at that time, and possibly other factors, I might offer a discount that makes sense.

Ken

Bear · August 23, 2005 5:42AM

Normally, If you are a regular client, I would expect a dealer

to offer you his best price on a coin without asking. If you try

to nibble a dealer on each and every coin, they will begin to

hesitate offering you the best material. On the other hand, if you are

not a regular client, I would expect you would have to ask for a discount or

the dealers best price.

With my regular dealers, when a best price is given me, I do not qibble

and either accept or regect the coinOnly ducks quibble and nibble.

Millertime · August 23, 2005 5:50AM

When I bought my first Seated Liberty Dime a few months ago from Dick Osburn he gave me a $10 discount on it since I was a new customer, he also sent it on approval. No big deal since it was only a $75 coin but the discount combined with the great customer service means that I'll check his inventory first.

I think it's good business because it will create more repeat customers. I started out small but eventually I'll be buying the bigger and better coins.

Millertime

FatMan · August 23, 2005 5:53AM

Discount from what? What the coin is listed at? What you really hoped to sell it for? What the previous guy was offered? What you would ask from someone who didn't have a clue what the coin is really worth? The problem with the coin biz is there are no true benchmarks to measure the discount from. So most discounts from coin dealers don't hold much validity with me. I just figure I am paying close to what anyone else would.

Most dealers I see at shows typically say something like this..."The price is XXX but I can let you have it for XXX". Oh boy, Whoopee! Why can't dealers just say what the price is and stick to it. In this case it forces me to haggle cause that line is so full of crap I know its not the best price. Fact is most people hate to haggle. And I am one of them.

Not picking on you coinguy1, (well, maybe I am

) but on our recent transaction the price I was expecting was not the price on the enclosed invoice. Don't get me wrong, I am OK with it and only paid the invoice amount. But should I be grateful? Am I special? Do you like me for some reason? Nah. Chances are that was the true price of the coin in your mind. So I ask why price it different in the emails and the website? (of course if I am wrong and and I am special, and you do like me, I hope this comment doesn't change things

)

I might suggest to all our dealer friends out there that you give "rock bottom no haggle" pricing a try. But to make it really work for you it has to be just that, a "rock bottom no haggle price". You can't leave your customers thinking they may have been able to get the coin for less. I know there are some customers that will be made unhappy because for them it is all about talking down the price. But I think in the long run any dealer that takes this refreshing approach will find that their customer base will balloon and they will turn their inventory much quicker. The real advantage will be that it might even make running their businesses a little easier.

NeoNumismaniac · August 23, 2005 5:57AM

<< I never ask for a discount. I don't think discounts should be given unless the client is an established customer. I bought a few coins from one dealer and I always paid full price. Then on the third coin, the invoice came with a discount automatically included. I think it works for both the dealer and the customer-- the dealer is still getting a fair price and he recognizes a recurring customer, and the customer thinks he is getting a break on the coin. >>

I have to agree with Longacre on this completely. Established customer only as a reward for repeat business.

Neo...

FatMan · August 23, 2005 6:02AM

<< I have to agree with Longacre on this completely. Established customer only as a reward for repeat business. >>

I have established relationships with dealers for a completely different reason. I am not so interested in a discount as I am with getting a first shot at the good stuff. In fact, I know to get that shot it is important to pay strong money. In my mind this is how the great collections are built.

dorkkarl · August 23, 2005 6:08AM

it's good business practice.

if you really wanna be creative, start accepting coupons, & have an occasional double-coupon day.

K S

ms70 · August 23, 2005 6:14AM

If I see a price tag that seems kind of high for no apparent reason (exceptional eye appeal, etc.) I might ask "What's your bottom line on this?"

And I ask the same question when I see a tag with the secret codes.

Otherwise if a coin has a "ballpark" fair price I just pay the sticker price. (Provided that includes dealer prep & undercoating)

TheRaven · August 23, 2005 6:17AM

If the coin is cheap I don't both mess around with the price, such as I was last weekend picking out Barber Halves for my set..... I either did not want them or I wanted them.....

We are talking about a $100+ coin ya have to at least ask if that is his best price on the coin.....

The more money the more going about the final price that should exist.

I agree that listed prices on coins are meaningless in most cases if the coin is $100 or up.....

Russ · August 23, 2005 6:24AM

<< Fact is most people hate to haggle. >>

I love to haggle. It's half the fun! Right now there's a gorgeous toned NGC graded MS67 Ike sitting at a local shop with a price tag of $125. The dealer's had it in his case for several months sticking to the price of $125. Sooner or later I'll haggle him down and buy it.

Russ, NCNE

Bustman · August 23, 2005 6:27AM

I love it when a dealer offers me a discounted price for being a decent client. There are times when they tell me up fron that their price is firm, too. I will alwys ask if there is any room to move.

Fairlaneman · August 23, 2005 6:28AM

You, the dealer, is the only one who knows if it is good or bad business. You are the one who knows how much money is into the coin.

Giving a discount without being asked sure would make you look good. On the flip side paying more for a coin, that is being sold to you, than expected would put you right up there in Saint status.

Ken

Barry · August 23, 2005 6:31AM

Everyday rock bottom pricing doesn't work. Sears tried it a while back and it was a dismal failure. People like sales and discounts - they think they're getting a better deal, whether it's true or not.

Fairlaneman · August 23, 2005 6:31AM

<< SSP?

>>

Thats a good one...

partagas · August 23, 2005 6:36AM

My thought is a coin should be labeled at the best price available to everyone while in inventory. If I have to haggle on the coin, then when do I get to a reasonable final price without upsetting the dealer or the client. If you tell a client, this is the best price on all my coins, he/she can't argue with that. It is take it or leave it.

It isn't worth haggling over in my opinion. Most collector clients will be there for life. Coin collecting is in our blood. Is a few extra dollars now better off then a long term customer.

coinbuf · August 23, 2005 6:38AM

I'm with Russ on this one I always ask for the "best" price. If that is still way over sheet for avg. material then I pass. As an example I just purchased a new coin from a dealer I've never bought from before. His stated price was quite good and from the pics the coin is very PQ but he still took off $10 and threw in the shipping. Yea I'll be checking his inventory a lot more often now.

Chris

coynclecter · August 23, 2005 6:41AM

<< Discount from what? >>

Exactly my question. Do you mean charging less than the price we agreed upon? Makes me think I didn't haggle well enough. Would also make me wonder next time when you don't give me a discount. Did you mean a discount from your asking price?? I assume the asking price is inflated anyway.

Unless I know the dealer well I assume that the price I am quoted is his "wish I could get it" price. Then we begin the negotiation. If you charge me less than I agreed to, I'll really work you on the next deal.

Anyone who doesn't negotiate (or at least try a counter-offer) on a coin over 100 bucks, is losing money in the long run.

coinguy1 · August 23, 2005 7:03AM

<< Discount from what? >>

Discount from the listed (website or otherwise) price.

mozin · August 23, 2005 7:39AM

As a repeat customer I think it is appropriate for the dealer to offer a coin for less than what is listed on the web site or mailer. I would ask the dealer for a discount from either of those published prices.

At shows I will ask what the dealer wants for the coin. If the price is way too high I thank him and move on. If the price is close but still too high I ask if I could make an offer. Dealer will either listen to my offer or say that his price is firm. I do not haggle further.

FatMan · August 23, 2005 7:44AM

<< 

<< Fact is most people hate to haggle. >>

I love to haggle. .........

Russ, NCNE >>

Russ, I would never classify you with "most people".

Myqqy · August 23, 2005 7:53AM

if you really wanna be creative, start accepting coupons, & have an occasional double-coupon day.

Double coupon days would be great!

michael · August 23, 2005 7:54AM

i think so...............

depending on the buyer, situation and other unique circumstances

PerryHall · August 23, 2005 7:56AM

<< If am interested in a coin, I always ask for the dealer's best price. At that point, I either buy the coin or pass; no more haggling. >>

Same here.

Myqqy · August 23, 2005 7:57AM

I think it's become my general habit to not haggle dealers at all, if I think there is any shot that I want to establish an ongoing connection with them. If I like the coin at the price, I'll pay it. If I keep returning, and they want to offer a discount to me for my continued business, then that's great. I think there is value in being a good customer that your dealer wants to make happy.....

ldhair · August 23, 2005 9:24AM

I'm sure it promotes future business.
At the same time folks may grow to expect it on every purchase.

I can see where a dealer not wanting to discount a coin would
not show it to a customer he knows expects him to discount it.

mirabela · August 23, 2005 9:42AM

It can be a gesture of good will. I appreciate it when it happens, which it does once in a while.

I don't haggle with dealers very often. After a long long time it has dawned on me that if the only thing that would make me want the coin is for it to be 8% cheaper, it probably isn't a coin I should buy even at that price.

I have no idea what it does for business. Oddly enough -- or not -- the ones who have done it are guys who have the kinds of coins I would come back for even if they didn't.

BowTieCoins2 · August 23, 2005 9:44AM

I think it is great business to offer discounts and what not without being asked when you can. Everyone likes getting a deal, I'm no different. I like giving a deal, too. A happy customer is choice, and so is having them look to you again and again.

TommyType · August 23, 2005 10:00AM

Complicated question since I don't think I've ever seen a coin marked for what the dealer would really sell it for to a complete stranger....(And I'm usually a complete stranger).

I always ask, "What do you want for this". Not because I like to haggle, but because it seems there's always a discount. While I'd prefer "no haggle priceing", I think that any dealer running a "Sticker price only" operation would quickly change his tune due to market pressures.

RiotAct · August 23, 2005 10:13AM

<< Since I don't dicker on the price, I find it a nice gesture to give me a discount, since I would have paid asking price in the first place. >>

The guy I normally buy coins from will round the price down to the nearest five dollars. (I only spend about $15-$30 each time I go.) So if my total is, say, $23.50, he'll only have me pay $20. I find this to be a very nice gesture and I make it a point to go to his store often.

RYK · August 24, 2005 9:13AM

Since I don't dicker on the price, I find it a nice gesture to give me a discount, since I would have paid asking price in the first place.

I agree completely. I always expect to pay the listed price, but sometimes, I half-expect to pay a discounted price and am modestly disappointed when the invoice comes for the full price.

Edit: I hate to haggle.

nankraut · August 24, 2005 9:18AM

What elcontador said:

If am interested in a coin, I always ask for the dealer's best price. At that point, I either buy the coin or pass; no more haggling.

knightem · August 24, 2005 9:30AM

In most businesses, discounts are given to repeat or special customers. The coin business is no different.

mr3holesinone · August 24, 2005 9:43AM

The question states that you are talking about current clients. I think it would be a nice gesture on your part from time-to-time to extend an unexpected discount. You could let clients know that repeat business earns them x% off the listed prices; better clients may get 2x% off. I think the goodwill created can offset the discounts given. Another thought would be to send your clients an offer of discounts during the slowest months of the year to try to cut some inventory and create some cash flow.

Excellent customer service with a discount every now and then will keep you at the top of everyone's favorites list.

techeff · August 24, 2005 9:47AM

Is it good business or bad business for a dealer to extend discounts without being asked/prompted by his/her clients?

On occasion, for good customers... That's just customer service 101.

coinbuf · August 25, 2005 6:49AM

So wheres your comment Mark??

BAJJERFAN · August 25, 2005 8:27AM

You risk the chance of spoiling your customers and they will ALWAYS expect smoe sort of concession/s. Remember years ago when auto manufacturers started the rebate craze to bolster short term sales. Now unless its some hot limited special edition they can't even sell a car without some kind of incentive.

Bochiman · August 25, 2005 8:40AM

Mark,

Ignore these people and go ahead and offer me discounts

morgannut2 · August 25, 2005 8:58AM

If I find out that as a long term client I wasn't offered a small discount, but someone else got a few hundred off, the dealer has lost me as a client. So the answer is 3-5% off is really good business for repeat customers, or you'll lose them.

coinguy1 · August 25, 2005 9:04AM

<< So wheres your comment Mark?? >>

Depending upon the client, the coin(s) involved and other considerations, I might offer a discount (albeit a small one) without being asked.

The upside is that I can let the client know I will work with him when possible, and that he need not ask for my best price.

The downside is that the client might expect a discount in the future when I don't feel I can or should give it. He might also mistakenly think I am working on larger margins than I really am.

Thank you for your replies.

Is it good business or bad business for a dealer to extend discounts without being asked/prompted by

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