What does "net priced" mean on a dealer's inventory listing?
Longacre
Posts: 16,717 ✭✭✭
As I am sitting here eating a very tasty turkey and cheddar wheat wrap with lettuce, tomatoes, onions, and jalepenos, I took a look at the website of a BIG dealer. The coin that caught my eye was as follows, which is a nice grade, and dirt cheap:
"1860 $3 PCGS AU58 | Low mintage early date $3 gold in best collector grade. CAC Approved. NET Priced.
3000.00"
Does anyone know what "net priced" means? I know what net graded means, but I am not sure what net priced means? Does it mean that the coin has been discounted already (from its already razor-thin margin), such that the dealer is at his rock bottom price? Does anyone know?
"1860 $3 PCGS AU58 | Low mintage early date $3 gold in best collector grade. CAC Approved. NET Priced.
3000.00"
Does anyone know what "net priced" means? I know what net graded means, but I am not sure what net priced means? Does it mean that the coin has been discounted already (from its already razor-thin margin), such that the dealer is at his rock bottom price? Does anyone know?
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
NGC registry V-Nickel proof #6!!!!
working on proof shield nickels # 8 with a bullet!!!!
RIP "BEAR"
eligible for (mixed) case discounts. They usually will count said bottle toward
a case, but not discount its price. Doesn't indicate anything about methods of
payment.
Not sure of the exact meaning with coins.
Unlike pennyannie's experience, in my experience net pricing does include a check as a method of payment (which is viewed as cash because there are no transaction costs), and can even include credit cards (just expect the buyer to pick up the CC charges).
Here's the way it works in my experience (as a collector): A dealer will have a coin in their inventory for a while at retail pricing. Then they mark it down to "net" as a way to blow it out (as an aside and generally, net priced coins aren't the best coins to begin with). One dealer I work with frequently that does things this way is Shawn Yancey, and you can see a number of net priced coins there right now ( http://earlycoppercoins.com/id8.htm ).
Respectfully...Mike
the terms: "BIG dealer" and "already razor-thin margin" should never be mentioned together in one post. there is no such animal
<< <i>Haha, I always thought it meant something along the lines of a special InterNET price that you could only get online as opposed to a show or B&M shop. I guess "cash, no credit cards or checks, no discount" makes more sense though. >>
Why not accept a check? Does the dealer expect you to mail him cash?
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
<< <i>Why not accept a check? Does the dealer expect you to mail him cash? >>
No, I guess not, but I was just repeating what someone else had said. I meant that that line of thinking of "net priced" made more sense than what I originally thought it was.
If you don't do it when you get to it,
You'll never get to it to do it again.
Its a pretty common term in the Gem business. The Gemstone business is much larger and more refined than the coin industry. There are all sorts of prices on a stone depending upon who you're selling to. Retailers and wholesellers speak different languages. Wholesellers used to use "keystone" pricing a great many times, some still do. The type of keystone pricing depends upon the Relationship and volume. It's a confusing way of pricing to some people, dealers are now more prone to price Net in a completely controlled wholesale only show. Net of course meaning exactly as its' definition. It's what they want out of the stone after all transaction costs. Meaning if paying by Credit Card, they intend to tack on a percentage, although it's an ez thing to negotiate out of.
When a wholesale Gem Dealer quotes Net - believe me - it does not proclude further negotiating many times. Case by case basis. I've been in the negotiating arena for a good many years. Just because someone says Net, does not always mean that. Many times it pays to further negotiate. In many situations, when a seller states emphatically up front that they will not sell below so and so, more often than not they are the ones most likely to settle for less. In the case of some coins, I'm sure they are consigned and negotiating further would be to no avail, still doesn't hurt to try.
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<< <i>I'm sure they are consigned and negotiating further would be to no avail, still doesn't hurt to try. >>
Amigo's comment brings up a question.
Are dealers likely to use that line only if a coin IS consigned?
"Inspiration exists, but it has to find you working" Pablo Picasso
<< <i>
<< <i>I'm sure they are consigned and negotiating further would be to no avail, still doesn't hurt to try. >>
Amigo's comment brings up a question.
Are dealers likely to use that line only if a coin IS consigned? >>
if we are referring to HLRC, no (he has quite a few net-priced coins, or did last time I looked on Monday)
<< <i>
<< <i>
<< <i>I'm sure they are consigned and negotiating further would be to no avail, still doesn't hurt to try. >>
Amigo's comment brings up a question.
Are dealers likely to use that line only if a coin IS consigned? >>
if we are referring to HLRC, no (he has quite a few net-priced coins, or did last time I looked on Monday) >>
HLRC is the only place I can recall seeing use precisely that term. I have assumed that it meant "our rock-bottom price".
I have seen Legend similarly use "Firm" with the price for generic gold.
When I see that a dealer has some coins that are "Net Priced", I always wonder what it suggests about the other coins on his list.
I guess it means that price is negotiable, as it often is, in fact, negotiable.
Turkey, cheddar and jalepenos go very well together, as long as it's not turkey roll and canned peppers.
<< <i>Interesting discussion and useful to understand these terms. So this $3 piece is either a loser no one wants, it was priced too high and wouldn't sell, or the dealer is strapped for cash. Which is your guess?... >>
Not strapped for cash. Is 'NET priced' essentially a wholesale price, or a last attempt to squeeze a bit more than wholesale from the coin before letting it to at wholesale?
<< <i>In the shop it may be priced higher. >>
What shop?
<< <i>I'll guess NET is short for Internet. In the shop it may be priced higher. >>
I don't think so. Otherwise, why would a dealer hand you a box of coins at a coin show, tell you "These are net priced" and sell them to you (right there at the show- not over the internet) at the marked price?
From BusinessDictionary.com:
net price
Definition: Final price after deducting all discounts and rebates.
``https://ebay.us/m/KxolR5
The term is very common among dealers. Vest pockets will sometimes have net-priced boxes when they walk table-to-table at a show. They may say, "wanna look through my net-priced box?" That means that the price marked is the final price.....no negotiating. That type of material is generally run-of-the-mill stuff and priced around "bid." To make money, you are looking for a coin that is either undergraded by the vest pocket (needle in a haystack), or something that just jumped on the sheet. The other extreme is to "net price" a coin in your case simply because it is a great coin that everyone wants, but you are tired of being chiseled on the price. In that case a dealer may put "$5,000 NET" on the holder. It saves time for everyone.