What type of dealer do you have-- The Value-Add or The Processor?
Longacre
Posts: 16,717 ✭✭✭
There are basically two types of coin dealers in this world. For lack of better terms, I will refer to them as The Value-Add and The Processor. After doing many hours of research, I am able to summarize these two types of dealers below. Please comment on the summaries, and also include your thoughts on which dealer you currently have, which would you prefer, and why. For extra credit, please also suggest whether there are other dealer types out there. However, all other suggestions must be supported by analysis and proper citations.
I. The Value-Add Dealer
The Value-Add Dealer is a special type of dealer. This dealer is not only a dealer, but also a numismatist, a financial consultant, and a psychiatrist. Although the Value-Add Dealer likes to sell coins, first and foremost he has the client’s best interests in mind, and ensures that the coin being offered fits comfortably within the client’s collection and financial budget. The Value-Add Dealer would rather not make a sale, than sell a collector a Sub-Par™ specimen. The coins offered by the Value-Add Dealer tend to be solid for the grade, and have extremely high eye appeal. In addition, the Value-Add Dealer is able to actually explain in words, rather than grunts and various other guttural sounds, why a coin is PQ for the grade, and how the selling price is supported by verifiable facts. Most importantly, the Value-Add Dealer is a kindred soul, who is able to overlook idiosyncrasies of collectors such as indecision, incompetence, ill-manners, or slovenly dress and hygiene. The Value-Add Dealer spends the time to counsel the collector numismatically, as well as mentally and spiritually. Generally speaking, the Value-Add Dealer is quite successful because of his ability to connect at a human level with his collector clients. Below is a picture of a typical Value-Add Dealer:
II. The Processor
The Processor is a very different type of dealer. The Processor’s main goal is to sell coins. Though a noble pursuit, the Processor does not always have the best interests of the collector at heart. Although not deceitful, The Processor should be seen for what he is-- a person who brokers coins between a seller and a buyer. The Processor tends to rely on the collector’s opinion of the quality of a particular coin, and tries to shy away from giving subjective opinions of coins, such as the quality of the eye appeal and the desirability of the specimen. Surprisingly, The Processor is actually more of a people person than the Value Add Dealer, in that The Processor does not discriminate who he sells coins to. The Processor will sell a coin to a young collector, an old widow, a rich collector, and a collector who can buy a coin today but might not have enough rent money at the end of the month. The Processor also overlooks the same idiosyncrasies of collectors as outlined above, and is a rather affable fellow who is easy to speak with. The Processor looks with scorn upon the Value-Add Dealer, and all of the niceties of numismatics, including the stories behind the coins. To The Processor, the coins are the coins, and nothing else. Below is a picture of a typical Processor:
I. The Value-Add Dealer
The Value-Add Dealer is a special type of dealer. This dealer is not only a dealer, but also a numismatist, a financial consultant, and a psychiatrist. Although the Value-Add Dealer likes to sell coins, first and foremost he has the client’s best interests in mind, and ensures that the coin being offered fits comfortably within the client’s collection and financial budget. The Value-Add Dealer would rather not make a sale, than sell a collector a Sub-Par™ specimen. The coins offered by the Value-Add Dealer tend to be solid for the grade, and have extremely high eye appeal. In addition, the Value-Add Dealer is able to actually explain in words, rather than grunts and various other guttural sounds, why a coin is PQ for the grade, and how the selling price is supported by verifiable facts. Most importantly, the Value-Add Dealer is a kindred soul, who is able to overlook idiosyncrasies of collectors such as indecision, incompetence, ill-manners, or slovenly dress and hygiene. The Value-Add Dealer spends the time to counsel the collector numismatically, as well as mentally and spiritually. Generally speaking, the Value-Add Dealer is quite successful because of his ability to connect at a human level with his collector clients. Below is a picture of a typical Value-Add Dealer:
II. The Processor
The Processor is a very different type of dealer. The Processor’s main goal is to sell coins. Though a noble pursuit, the Processor does not always have the best interests of the collector at heart. Although not deceitful, The Processor should be seen for what he is-- a person who brokers coins between a seller and a buyer. The Processor tends to rely on the collector’s opinion of the quality of a particular coin, and tries to shy away from giving subjective opinions of coins, such as the quality of the eye appeal and the desirability of the specimen. Surprisingly, The Processor is actually more of a people person than the Value Add Dealer, in that The Processor does not discriminate who he sells coins to. The Processor will sell a coin to a young collector, an old widow, a rich collector, and a collector who can buy a coin today but might not have enough rent money at the end of the month. The Processor also overlooks the same idiosyncrasies of collectors as outlined above, and is a rather affable fellow who is easy to speak with. The Processor looks with scorn upon the Value-Add Dealer, and all of the niceties of numismatics, including the stories behind the coins. To The Processor, the coins are the coins, and nothing else. Below is a picture of a typical Processor:
Always took candy from strangers
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
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Comments
All joking aside, your definition of the "value added" dealer fits someone who has another career and does coins for fun. The Processor is in the business for "blood money" and doesn't care what happens to the clients, as long as they keep buying coins and filling his pockets with $$$$.
<< <i>A thread that categorizes collectors would be even more fun. But I'm not up to it.
I did one of these. I would need to find it.
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
<< <i>You'd be amazed at the "names" who in reality are wannabes.... >>
I might be amazed ... if you had the balls to actually name one.
<< <i>You forgot my favorite type of dealer-THE WANNABES....
Notice the market gets a littel slower an they aren't as visible????
Wannabes are the ones who are a combo of VAD/Processor but have NO FRIGGEN CLUE! They do all of the above with a bold flare (most while holding a day job)-and always sell the worst coins at too much money.....
You'd be amazed at the "names" who in reality are wannabes.... >>
My dealer is the value added kind.
I give away money. I collect money.
I don’t love money . I do love the Lord God.
A thread that categorizes collectors would be even more fun.
Longacre did one of these a while back, but I can't seem to find it.
Can a wannabe ever make the transition to becoming a legitimate dealer, respected by the others? Or is it, "once a wannabe, ever a wannabe" with no chance of redemption?
They are near all gone, but a few remain, they are getting old now.. the youngest them in their 60s. Their shop is small, normally not in the hot part of town, but in 1950 whatever it was the hottest spot in town. They seem to have clutter everywhere, but not much in the way of slabs. They like their coin raw, they have probally forgotten more then I will ever learn. If you want a OBW roll for any date after 1950, they have stacks them. They sat on a leather stool, worn and tattered from decades of daily use. They can tell you about the guy that mortaged his house in 1960 to buy every 1904-O morgan he could find. They are not into hype, they have seen it come and go.. its about the coins. As a regular you walk in and he reaches into the safe and pulls out a tray of coins, some rare dates others common.. but they all have that right look that matches your set. He knew they would, he can picture every coin you have bought from him for 20 years.
"I am sorry you are unhappy with the care you recieved, is their anything I can do for you right now, how about some high speed lead therapy?" - A qoute from my wife's nursing forum
"I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them." – Thomas Jefferson
Experience the World through Numismatics...it's more than you can imagine.
<< <i>Or just to go a major show and listen to who all the major dealers are laughing at for buying their bad deals... >>
<< <i>Can a wannabe ever make the transition to becoming a legitimate dealer, respected by the others? >>
On occasion they can make the transition. I know of one specialist dealer that made it. I remember when he was first beginning, all the dealers were unloading their junk on him (and he was a willing buyer). Well he ended up selling that junk, partially due to the bull market we've been in, learned the ropes in the process and is now a very respected dealer.
All the newbie/wannabes have many shots taken at them until they educate themselves.
The newbies learn about the indusrty while the wannabes never educate themselves, they just prey on unknowledgeable collectors by burying them in overpriced coins.
But as a collector, all I ask of "my dealers" is that they make an effort to help me track down the coins I want, and that they treat me fairly. In the past 30 years, only one dealer has met these demands, and he has only sold me a half dozen coins. Think about that.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
myCCset
Then there's the dealer who locks himself up and asks through bullet proof glass and an intercom: " Have you been here before?" I say : "no". He says: "I don't have any gold, I sell it all on ebay for stupid money"
Then there's the dealer who greets me with a smile and says "Hi, nice seeing you again". I buy from him just cuz he's cool to me. He refers to grey sheet pricing when I ask for PCGS gold and sells it ten percent below for generics. That's nice enough for me.
Then there's the pawn shop type: He thinks silver should sell for $20 per ounce. I cherry pick him and offer $16. He's cool too and takes my offers with a smile.
``https://ebay.us/m/KxolR5
<< <i>As a dealer, I try to be friendly and helpful. If you want to call that "value added" instead of just plain decent, OK.
But as a collector, all I ask of "my dealers" is that they make an effort to help me track down the coins I want, and that they treat me fairly. In the past 30 years, only one dealer has met these demands, and he has only sold me a half dozen coins. Think about that. >>
Does that mean you were picky by buying only a half dozen coins from your Fav dealer or did you just end up doing the buying yourself.
I give away money. I collect money.
I don’t love money . I do love the Lord God.