An interesting turn of events on a FUN purchase: Has your dealer ever done THIS to you?

IGWT · January 18, 2008 10:08AM

I read tales of this happening to other people, but it’s a new experience for me, and I’m left wondering what others would do under the circumstances.

At FUN, I was fortunate enough to see a coin that The World’s Best Dealer™ purchased at the show, and I expressed an interest in purchasing it. He ballparked the price for me, but we didn’t strike a deal then and there, because he wanted a better opportunity to price the coin. He quoted a price a couple of days later. You might already be thinking: “Uh oh, the dealer baited me with a low price and he’s going to charge more after setting the hook.” Well, if that’s what you’re thinking, you’re partially right . . . the quoted price was a couple hundred dollars more than the figure thrown out at the show. But it was a fair price for both of us (or so I thought) and not entirely unexpected. I gladly agreed to pay what he asked, so he sent the coin by overnight delivery.

The coin arrived safe and sound, and it was every bit as nice as I judged it at the show. Happy, happy, happy. Then, without warning, I received a message from The World’s Best Dealer™ on the same day that the coin arrived: He knows someone who is willing to buy the coin for 20% more than I paid.

I’m pleased to hear that another person likes the coin; but, despite the temptation, I declined the offer. After all, I bought it for my collection, not to own it for just one day. Today, I received another message from The World’s Best Dealer™: The offer has been increased to 33% more than I paid.

What would you do under these circumstances? On the one hand, the coin is especially nice, and finding another example of the issue so pleasing would take an awfully long time. And what would it cost if I were to find one in the future? On the other hand, while the coin is hardly a rarity, a buyer this motivated is probably R-7. Would you pocket a 33% gain over a 2-day period? (Of course, the World’s Best Dealer™ would be entitled to his cut of that.) Would you flip the coin? I need help because I’m prepared emotionally only to lose money when I sell coins. Damn the dealer for putting me in this quandary.

mgoodm3 · January 18, 2008 10:12AM

Any chance that this coin is worth considerably more than the WGD is offering?

a039 · January 18, 2008 10:13AM

Flip that badboy.

Coinosaurus · January 18, 2008 10:13AM

Dealers shouldn't do that. But now the cat's out of the bag. Take the 33% and give the dealer a third of it. And remember that the dealer now owes you a favor.

greghansen · January 18, 2008 10:14AM

Never happened to me...but I'd be flipping that think faster than an egg sandwich at the Holland Tunnel Grill!

Longacre · January 18, 2008 10:15AM

<< I need help because I’m prepared emotionally only to lose money when I sell coins. Damn the dealer for putting me in this quandary.

>>

You're in the driver's seat on this one. I would either tell the dealer you need a little bit more profit (say a 50% gain), or you need a cut of his commission. Of course, you need to balance that against your desire to sell, and how difficult it is to find another comparable coin.

RYK · January 18, 2008 10:16AM

If it's a type coin, I would flip it.

A tough date? Tough luck for the other guy.

SanctionII · January 18, 2008 10:19AM

If you are open to selling, do a quickie post on the BST with a price above the 33% figure quoted by the WGD and wait to see what happens. If a purchase offer above the 33% comes in, take it and run with it. Then send the WGD his quoted price to you. If the WGD is someone you would want to do business with in the future, send him a percentage of your profit with a thank you note.

ColonialCoinUnion · January 18, 2008 10:23AM

In my experience, whenever you pass on an offer like this you end up selling the coin years later for a loss.

Ronyahski · January 18, 2008 10:23AM

Boy, what a tough problem to have!

BlindedByEgo · January 18, 2008 10:24AM

How badly do you want to keep the coin for your collection? How inportant is your collection to you?

It's not like you haven't been around the block already once or twice. What is the goodwill of the WBD™ worth to you?

PerryHall · January 18, 2008 10:24AM

Ask for 50% just for the fun of it. I'll bet this dealer knows this other customer will pay a lot more tha 33%.

Keyrock · January 18, 2008 10:25AM

If you have a good relationship with the dealer I would strongly consider it. The good karma associated with flipping the coin is worth it as long as the dealer agrees to help you replace the coin. Do the extra funds allow you to move on another more expensive coin that you have been contemplating?

roadrunner · January 18, 2008 10:26AM

I would agree with CCU on this one. Take the 33% and be happy.
If you probe for 50%, you'll probably get an "expletive deleted" and end up selling the coin for a loss someday.

There are lots of other fish in the pond.

roadrunner

doh · January 18, 2008 10:26AM

If it's a type coin, I would flip it.

A tough date? Tough luck for the other guy. .

I agree 100%. If you can make 33% today, think of the potential a few years from now. I once bought a key date Barber half in a PCGS holder. IMO I got a steal on it...I had a couple people offer me more than I paid within a month or two of owning it. My friend urges me to sell it because I'd be looking at about a 50% profit in a very short time. I kept it. Why? Because it would take me a long time to replace, if ever. So that's what it boils down to: can you replace it? Do you want to? Either way, I would love to be in your shoes

TomB · January 18, 2008 10:29AM

I guess it depends on whether you want the nearly instantaneous cash profit or the coin. Only you can decide that issue.

rgCoinGuy · January 18, 2008 10:29AM

I agree with most of the posters on here on this one. It depends on what this EXACT coin means to you, if you will immediately be searching for another exact same coin (or better) I would just keep it and know you did good. Now if we are talking a million dollar coin, and you could make a quick 333k, well, that would be a good year and its only the middle of January. No matter what you choose in your personal circumstances, you obviously "done good". Congrats!!!

PerryHall · January 18, 2008 10:32AM

Let us know what you decide.

mcgrover · January 18, 2008 10:32AM

do you need the $?

SkyMan · January 18, 2008 10:38AM

Basically ask yourself 3 questions; 1) how hard will it be to replace it, 2) is it in a core series of your collection, and 3) how much does the profit mean to you compared to the first 2 questions.

IGWT · January 18, 2008 10:39AM

-- Any chance that this coin is worth considerably more than the WGD is offering? --

Perhaps to the person who's interested. Otherwise, no.

-- Dealers shouldn't do that. But now the cat's out of the bag. Take the 33% and give the dealer a third of it. And remember that the dealer now owes you a favor. --

You don't think the dealer should inform me that I can make a tidy overnight profit? Really? BTW, there is no pressure from the dealer whatsoever. In fact, I'd say that he's pleased for me.

-- Then send the WGD his quoted price to you. If the WGD is someone you would want to do business with in the future, send him a percentage of your profit with a thank you note. --

If I were to sell, I'd probably split the profit 50/50 with the dealer, although he hasn't and wouldn't ask for that.

-- In my experience, whenever you pass on an offer like this you end up selling the coin years later for a loss. --

I'm emotionally prepared for that.

-- guess it depends on whether you want the nearly instantaneous cash profit or the coin. Only you can decide that issue. --

That's right, of course; and, if the money meant that much, I probably wouldn't have spent it in the first place.

Edited to offset quotes more clearly.

WTCG · January 18, 2008 10:39AM

Decide whether you believe the 33% profit adequately compensates for the need and time required to find a similar coin. If you answer yes then take the dealer's offer. If you like the coin immensely and you believe you will have seller's remorse then decline the offer. An instant 33% profit on a straight flip of a coin isn't always easy to come by.

RYK · January 18, 2008 10:39AM

I had a similar situation to this about a year ago. I ordered a type coin (a half dime) from Mark Feld and posted a photo of it on the forum.

A fellow forum member PMed me to inform me that the person with the finest ever seated half dime set needed that coin, and I should name my price. The forum member was going to be the middleman in my transaction. I named my price, a profit of about 40% (which I split with Mark), he asked if I was sure that was all!!! I did not feel right jacking the guy up (I would make a lousy coin dealer

) and accepted the small profit and moved on.

mrearlygold · January 18, 2008 10:40AM

<< In my experience, whenever you pass on an offer like this you end up selling the coin years later for a loss. >>

Yup!

Russ · January 18, 2008 10:54AM

<< What would you do under these circumstances? >>

An immediate 33% profit? Is this a trick question?

Russ, NCNE

LincolnCentMan · January 18, 2008 11:22AM

If you bought it as an investment, take the money. If you bought it as a coin for your collection, sell it only if you're willing to risk not finding another one at a cheaper price.

-David

LeeG · January 18, 2008 11:27AM

It ain't all about the money for me. I've got coins I could sell for a mad profit but I love the coin in my collection. It's all about your want's and needs for your collection. Wish you well whatever your decision!!!!!!

Frankcoins · January 18, 2008 11:35AM

How much is this 33% profit?

If a few hundred, I would keep the coin I liked.

If a few thousand, out the door!

dogwood · January 18, 2008 11:40AM

Post a picture, dang it, we'll tell you if you should keep it. All this talk of profit and the seller pschology stuff is well and good but if you get a string of smiling, clapping, beer drinking emoticons, that'll be your answer.

MidLifeCrisis · January 18, 2008 11:45AM

The coin is not rare...the offer is lucrative...sell the coin, give the dealer his cut, and start looking for an even better example. After all, the thrill is in the hunt.

tradedollarnut · January 18, 2008 11:45AM

Before you start splitting the profit with the dealer, remember that he already made something off his sale to you. 1/3 of your 1/3 is more than generous.

fc · January 18, 2008 11:49AM

i need to know what series, date/MM, the look, and cost to even
decide.

if i just paid 1000 for a coin and it was fabulous... 333 dollars profit
in such a short time would not really interest me in the least.

WinPitcher · January 18, 2008 11:54AM

I agree I have to know more details. Is the profit 33.00, 333.00 3,300 etc?

Also agree with mr trade dollar nut. he already made profit and i bet he is selling it for more then 33%. He is allowing you to make 33% (possibly)

Steve

BAJJERFAN · January 18, 2008 12:05PM

<< Dealers shouldn't do that. But now the cat's out of the bag. Take the 33% and give the dealer a third of it. And remember that the dealer now owes you a favor. >>

Why give the dealer a third or even anything? I'm sure he will add a markup to the new buyer.

wondercoin · January 18, 2008 12:10PM

It happened to me once. I bought a couple jackie Robinson PCGS-MS69 $5 Gold Commems for around $1,000/coin and before the coins even arrived here, the dealer I bought them from asked me if he could buy them back at about $1,150/coin. Heck - 15% in a day - why not. A couple years later now they Grey Sheet at $4,400/coin. Guess I shouldn't have been so agreeable.

Wondercoin

Coxe · January 18, 2008 12:22PM

Whatever you determine and do bear in mind how much you value a continued pleasant relationship with that dealer. You are in the driver's seat. Having a favor owed implicitly coupled with a profit might not be a bad situation.

mnmcoin · January 18, 2008 12:26PM

<< The World’s Best Dealer™ >>

Funny, I don't remember selling a coin to you?!

morris

mnmcoin · January 18, 2008 12:32PM

<< Dealers shouldn't do that. But now the cat's out of the bag. Take the 33% and give the dealer a third of it. And remember that the dealer now owes you a favor. >>

What???

What is wrong with a dealer doing this? I can think of absolutely no reason.

I for one have been on both ends of this several times. It all comes down to whether its a coin you can live without...in my experience coins come and go, so take the money and have fun hunting for another one (its all about the thrill of the hunt anyway)

morris

CarlWohlforth · January 18, 2008 12:33PM

You say you will split the profit with the dealer. So you could make %17 in 2 days.

Is this an important coin for your primary collection? I mean if you are like me and many of us you have myriad interests and can part with a coin after spending a few days closely fondling.. I mean examining it.

In other words if you will regret selling because you need the coin and can't replace it you should keep it. This is a hobby. On the other hand if you are working on many areas or trying to earn a profit on coin dealings you would have to consider the offer. BTW if you did want to sell you may not have to split the profit 50-50. You could just ask for %25 more and the dealer could either accept his %8 or bump the price to the buyer a bit if that works.

I will say I do regret selling only a few of my coins. These are ones that I can't replace for anywhere near what I sold for... and can't even find choices to decide between...

BAJJERFAN · January 18, 2008 12:58PM

<< Whatever you determine and do bear in mind how much you value a continued pleasant relationship with that dealer. You are in the driver's seat. Having a favor owed implicitly coupled with a profit might not be a bad situation. >>

Why should refusing to sell a coin back after 2 days have any effect on any amicable relationship that you may have already had with said dealer. Surely he would not take offense at your refusal to sell.

Coxe · January 18, 2008 1:01PM

<< 

<< Whatever you determine and do bear in mind how much you value a continued pleasant relationship with that dealer. You are in the driver's seat. Having a favor owed implicitly coupled with a profit might not be a bad situation. >>

Why should refusing to sell a coin back after 2 days have any effect on any amicable relationship that you may have already had with said dealer. Surely he would not take offense at your refusal to sell. >>

I meant it the other way around. Selling it back, with some money in the pocket to boot, makes you The World's Best Dealer's World's Best Customer or somewhere favorable in there.

291fifth · January 18, 2008 1:06PM

Flip it!

Shamika · January 18, 2008 1:16PM

I think it depends on how much "33%" actually is. If it's 50 dollars, keep the coin. If it's $5,000 then you have to think twice.

sinin1 · January 18, 2008 1:23PM

I don't ever remember that happening ro me

asking this forum, you must realize many of the posters are collector/dealers who flip to improve their collections

you should ask yourself why you bought the coin in the first place, and your plans for it
when you can answer yourself those questions, you will know what to do

Elcontador · January 18, 2008 1:31PM

So he makes money when he sells you the coin, and now he wants more? If he's so smart, why didn't he sell it to someone else for more money in the first place? Sounds like a bit of a naco to me.

It's your coin, period. If you think it's really nice, keep it for your collection.

In 2002, I picked up the second nicest toned Liberty Nickel I've ever seen @ a Heritage Auction. I flew back from São Paulo, went straight to the Long Beach Show & picked up the coin. It's an 1899 in PC 6. I showed it to some dealers and one guy offered me 25% over what I paid for it. I turned him down; I'll have a very tough time finding any other Liberty Nickel with that look.

stman · January 18, 2008 1:36PM

No wonder the dealers love some of you

Many are ready to give the dealer a cut of the new offers to buy the coin. Let's see, dealer charged a couple hundred more than the ballpark price, dealer made money on the first deal. OK, I know, when dealer had these new offers, and being a business man he must not of figured a cut in there.... and that's why ya ll want to offer more.

I guess it all sounds good on the forum, so it's all good then. hahaha

mozin · January 18, 2008 1:59PM

Assuming I paid the going rate for the coin, I would flip the it, and keep all the profit. The dealer already made money on the sale to you, AND he likely already has this new offer well above one-third more money. Be sure to tell the dealer that he owes you a favor.

paigowjohnny · January 18, 2008 2:10PM

You like it...you wanted it...keep it.

I think if you sell it, you'll eventually regret it...

RKKay · January 18, 2008 2:10PM

<< It happened to me once. I bought a couple jackie Robinson PCGS-MS69 $5 Gold Commems for around $1,000/coin and before the coins even arrived here, the dealer I bought them from asked me if he could buy them back at about $1,150/coin. Heck - 15% in a day - why not. A couple years later now they Grey Sheet at $4,400/coin. Guess I shouldn't have been so agreeable.

Wondercoin >>

PLUS it's for your collection. Keep it, Lou.

pcgs69 · January 18, 2008 2:15PM

sorry for being nosey, but can you tell us what the coin is?

Lakesammman · January 18, 2008 2:18PM

Yah - more details, please.

I bought a piece for $16.5K in Dec. and now the dealer is offering me $20K to get it back. Strange business.

An interesting turn of events on a FUN purchase: Has your dealer ever done THIS to you?

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