Should you identify youself on the bourse as a "hybrid collector/dealer", but isn't everyo
Longacre
Posts: 16,717 ✭✭✭
I was reading the thread about returning coins to dealers. In one response, a very experienced bourse dealer made the following (valid) observation regarding returns:
"PNG members have agreed to this, in advance, by virtue of being a PNG member. Most long time dealers recognize that maintaining good relationships with the ultimate consumer is extremely advantageous.
On the negative side is the hybrid collector/dealer that is trying to fund his collection by buying and selling. Collectors that are doing this and returning items that they cannot re-sell are abusing the return privilege."
*****
I agree with this statement, but I was wondering if it is possible for this "hybrid collector/dealer" to identify himself in some way on the bourse. At what point do you cross from being a pure collector, to a hybrid collector/dealer? I think that even pure collectors try to flip coins on the bourse to generate funds for their collections. Isn't everyone a hybrid animal in some form or another?
"PNG members have agreed to this, in advance, by virtue of being a PNG member. Most long time dealers recognize that maintaining good relationships with the ultimate consumer is extremely advantageous.
On the negative side is the hybrid collector/dealer that is trying to fund his collection by buying and selling. Collectors that are doing this and returning items that they cannot re-sell are abusing the return privilege."
*****
I agree with this statement, but I was wondering if it is possible for this "hybrid collector/dealer" to identify himself in some way on the bourse. At what point do you cross from being a pure collector, to a hybrid collector/dealer? I think that even pure collectors try to flip coins on the bourse to generate funds for their collections. Isn't everyone a hybrid animal in some form or another?
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)
0
Comments
<< <i>I was wondering if it is possible for this "hybrid collector/dealer" to identify himself in some way on the bourse. >>
If you're buying with the intention of reselling, I'd think the easiest way to identify yourself would be to tell people that's what you're doing.
<< <i>At what point do you cross from being a pure collector, to a hybrid collector/dealer? >>
I would say that you have crossed that point when you start looking for coins to buy specifically for resale.
Authorized dealer for PCGS, PCGS Currency, NGC, NCS, PMG, CAC. Member of the PNG, ANA. Member dealer of CoinPlex and CCE/FACTS as "CH5"
EVP put it best - "We are all actors on the same stage".
The terms of a wholesale deal and a retail deal differ and for a successful transaction it is important that both parties view the nature of the transaction in the same way.
Wholesale deals will ordinarily be at a lower price. However, don't expect to use a credit card (or PayPal), put the item on lay-a-away, or trade in some other coins. There is also typically not a return privilege if a sale and persons in the trade are typically expected to make a quick decision on the coin (typically taking no more than a few seconds). They won't be asking the dealer if he thinks the coin was cleaned before or if it might upgrade or cross over, etc. They won't be asking if they can show it to another dealer or the guy giving free opinions at the ANACS table. Shopping around the coin may be okay (in this case, the deal is set up as a memo arrangement rather than an outright sale). If the buying dealer is buying it hoping to get it slabbed, crossed over or upgraded and that doesn't work, the selling dealer will never hear about it. The buyer will be back at the next show trying again. If the grading service says it is cleaned, altered surfaces, tooled, etc. the deal still holds and no one blames anyone. Wholesale relationships also are much higher volume than retail ones.
On a retail sale the price paid will typically be a little higher. With that higher price comes the ability to use plastic or PayPal or perhaps take some added time to pay or trade in something else for a part payment. It might also come with a buyback arrangement. The dealer may hold a coin or allow someone else to look at it for the buyer. It may get sent out on approval and typically always would come with an return privilege. The dealer may take it back if it doesn't slab or cross over or is bodybagged for [fill in the blank].
Both of these models are great and there are any number of permutations in between for individuals who are hybrid. When problems occur is when one of the parties doesn't view the transaction in the same way as the other. Thus, whether you're wholesale, retail or in between, it is best to make sure that is understood. In fact, collectors who transact similar to a dealer (quick decision, high volume, instant check, no returns, no complaints) will over time find themselves accorded prices closer to wholesale.
WH
<< <i>The reason one might want to describe oneself as a hybrid collector/dealer is to obtain wholesale pricing. Just don't indicate you're buying for resale, get the wholesale pricing and then whip out the Visa or ask to put it on lay-a-way.
The terms of a wholesale deal and a retail deal differ and for a successful transaction it is important that both parties view the nature of the transaction in the same way.
Wholesale deals will ordinarily be at a lower price. However, don't expect to use a credit card (or PayPal), put the item on lay-a-away, or trade in some other coins. There is also typically not a return privilege if a sale and persons in the trade are typically expected to make a quick decision on the coin (typically taking no more than a few seconds). They won't be asking the dealer if he thinks the coin was cleaned before or if it might upgrade or cross over, etc. They won't be asking if they can show it to another dealer or the guy giving free opinions at the ANACS table. Shopping around the coin may be okay (in this case, the deal is set up as a memo arrangement rather than an outright sale). If the buying dealer is buying it hoping to get it slabbed, crossed over or upgraded and that doesn't work, the selling dealer will never hear about it. The buyer will be back at the next show trying again. If the grading service says it is cleaned, altered surfaces, tooled, etc. the deal still holds and no one blames anyone. Wholesale relationships also are much higher volume than retail ones.
On a retail sale the price paid will typically be a little higher. With that higher price comes the ability to use plastic or PayPal or perhaps take some added time to pay or trade in something else for a part payment. It might also come with a buyback arrangement. The dealer may hold a coin or allow someone else to look at it for the buyer. It may get sent out on approval and typically always would come with an return privilege. The dealer may take it back if it doesn't slab or cross over or is bodybagged for [fill in the blank].
Both of these models are great and there are any number of permutations in between for individuals who are hybrid. When problems occur is when one of the parties doesn't view the transaction in the same way as the other. Thus, whether you're wholesale, retail or in between, it is best to make sure that is understood. In fact, collectors who transact similar to a dealer (quick decision, high volume, instant check, no returns, no complaints) will over time find themselves accorded prices closer to wholesale.
WH >>
Good post.
NO.. not at all... I have never sold a coin... for profit or to fund a purchase - period. Cheers, RickO
If I buy a $500 coin and later sell it for $450 to fund another purchase into a down coin market, am I a dealer? There's clearly no profit motive involved.