How to [kindly] tell people they overpaid?

I go to auctions featuring coins about every weekend.

I know about 2-3 people who over pay for coins.

Although I realize people learn from their mistakes, I can't stand it that these people are constantly overpaying.

I know these people, but I don't want to make them feel bad when I told them they overpaid.

So should I try telling them, or continue to let them get burnt?

A few months ago one of these people paid $60 and $50 for two common, average grade morgan dollars (at the time) were worth melt price.

As a coin collector, it seems two-fold.

While I don't wanna break their heart by telling them they over paid, I don't like them getting burnt so many times.

 

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If you want to be gentle with them you could ask them how much they paid, and after they tell you what they paid you could say something like "Oh really? I've seen some ones in similar condition go for (what you think it should go for)" and then you could tell them that they should talk to you before buying a coin so you can make sure they're not overpaying.

 

Thanks for the help.

Some people get offended when you tell them they paid too much, like your insulting their intelligence.

 

I think in most situations they're not angry with you, but angry at the realization that they most likely overpaid.

 

Kind of like how we were kindly trying to tell you to own up to paying a buyer's fee instead of backing out?

 

Ain't no easy way. Tough love and reality is the nature of it. Tell 'em. They may thank you one day........

 

I am all the time over paying for coins. For like 3 months in a row I would make a post on here asking if I got a good deal, and the answer was always the same.. Nice coin, but you over paid. For a short time it was discouraging/irritating, but it has defiantly paid off. The solid advice of how much I was overpaying started to sink in and made me do my homework. I greatly appreciate all of the solid advice which I first found offensive. Heck one time I paid close to 400 for an 1834 dipped Bust Half. I got murdered when I made a post about it. “You paid 400 for a 150 problem coin!?" I ended up parting with it in a trade+Cash for a nice draped half cent. The seller agreed to the value of 300 for the half. So I took a 97 dollar hit, but it was well worth it. I would advise my friends if I believed they were over paying. By the way I still over pay sometimes, and I still constantly post on CT for value on a coin. I believe if you make such a post just be honest of what you paid.

Just an anecdote: One guy said " This is a classic case of more money than sense." That comment ****ed me off I believe the reply was " Congratulations on never taking a hit on a coin." I wish I could shake that guys hand.

 

First ask them if they would like you to take a look at it and give them your opinion. If they say no, that's it.

If they say yes, then give them an analysis and describe where you are getting the pricing. Also ask them why they bought it, as often some bid more because that is a coin they wanted from childhood or the beginning of collecting. If they respect you, they will listen , if they don't it is a waste of your time and energy.

I see more people on the forum that because they are anonymous are almost mean about telling someone they paid to much, even when they are not asked by the poster.

Good Karma does pay off in the end.

 

If you know these people, then I think you should try to educate them. Suppose that you don't bother and they continually pay too much. Now, suppose a coin comes up in the auction that you really want but you lose it because they overbid.

Chris

 

Whether someone "pays too much" is often a matter of perspective.

To a losing buyer it's disappointing to see someone win who doesn't "play by the rules" and pays too much. To a winning buyer it often means paying a little extra for the instant gratification and convenience of not having to conduct further shopping to (possibly) save a few dollars.

I've often "overpaid" (coins and other collectibles) not through ignorance but simply because I found what I wanted at a place I could conveniently acquire it, and from a source I could trust. As long as the seller hasn't cheated me, I'm happy with the deal. If someone were to try to tell me I "overpaid", I would simply consider them a poor loser.

 

The only time I overpay at auctions is when some greedy person shows up and buys everything and purposely outbids people.

 

I have experienced what you are talking about OP. You are nice to be concerned about them. What I did was brought coins I have recently bought from a local coin shop. Before the auction sat near them, started chatting up coins, then pulled out what I bought and what I paid for them. Sometimes it works, and they discover they probably have been overpaying, other times not. I slept better at night either way since I had tried.

I just find it works better than confronting them about their purchases, and prices paid. When you tell someone straight up they overpaid, they get defensive and stop listening.

 

I would say if you know them as friends you can bring it up when talking about coins. Most likely they will at least listen even if they don't want to take the advice. But some collectors buy things accordingly to their income. They may not care if they pay more than the last finished price.

 

I tend to overpay a few times, but it is all for my collection. I just want a coin, set the price for my want, then see what I can do. Sometimes, I get a good deal and go under my budget and get a nice score (profit) on the coin, so I don't mind overpaying for another one.

 

But that's assuming you know those bidders and their purposes, and that the price you bid up to was in fact the "accurate" price for that coin. Sometimes the price you think it should go for is in fact over or under the amount it does. It also presupposes that the winning bidder did in fact want to pay much more than it was worth just to keep it from you. IMO only.

 

I like your methods. Sometimes speaking up is not just to prevent others from making mistakes in the future (they may not listen) but to have peace of mind knowing you did not contribute to their future purchasing mistakes by not saying anything. It takes courage to speak up in a way that is tactful, yet respectful that they still can make their own choices.

 

Detecto, I have gone back and read some of your other posts on other threads (specifically this one http://www.cointalk.com/t197508 where you want to use a Red Book as a price source) and have determined that you really don't know enough and shouldn't be giving anyone else any advice on coin values.

There are really only two people involved in determining a fair price for any coin, the seller and the buyer, with the buyer carrying much more weight in the determination.

Because a person pays more than you think it's worth doesn't mean they overpaid, it just means that you are sore that you lost it at the price you were willing to pay.

You need to learn much, much more before you have any right to teach.

 

Detecto,

A couple of things you may not understand (especially if you are using the Red Book as your price guide):

1) Not all coins of the same grade are created equal and therefore they will have different values. For example, put together a group of ten Morgan Dollars all graded MS-65 by either PCGS or NGC. You will probably notice that some of the coins appear to be in better condition or have better eye appeal than the other coins? How can that be if they are all graded MS-65? Knowledgeable collectors look for these PQ coins and are willing to pay more for them, oftentimes more (sometimes MUCH more) than the "normal" price for an average coin of that grade.

2) Coins that have exceptional eye appeal or a better strike will always command a higher price than average coins of the same grade. For example, an MS-65 Morgan Dollar with beautiful rainbow toning might sell for multiples of what an average MS-65 Morgan sells for. A Flying Eagle Cent with full tail feathers will sell for much more than another example of the exact same grade with less than full tail feathers.

3) Not all grades for circulated coins are listed in most price guides (including the Red Book). Suppose you see a coin for sale and it is graded EF-45. Your Red Book does not have a column for EF-45; there is a column for EF-40 but that is not the grade of the coin (not that the listed values are realistic).

 

It would make sense telling them about the real value only if you also tell them where can they get same coins in same grades without overpaying. Without providing them some kind of solution, it just looks as if you`re trying to make them feel bad about their purchase.

 

Two people for sure. But sometimes those two are the top two bidders and the seller has nothing to do with the price equation. =)