Here's the story that happened to me last weekend at a local coin show: I was set up as a dealer as usual at a local show a couple hours away. I always, before the show starts, look around at other dealers booth. I stopped at an elderly dealer (let's call him Dan) booth that I usually buy from. I bought a couple of morgan dollars at decent prices but thats about it. I thanked him and said I'd be back later. Later I went back to his booth and saw a Consitution Dollar (1987 Proof) without box or coa, but still a nice silver coin. I asked him how much and he said let me think and get back to you. He later stopped at my table and said how about $15.00 for it. At the time that price was about $7.00 under the scap value of the coin itself. I thought for a moment and said "Dan I can't do $15.00, I can do $20.00". He said okay and let me have it for $20.00 which is still a great price. Later that day I sold it for $23.50 ($1.00 over melt). So my question to everyone is, do you think I did the right thing by offering a higher price, or should I have accepted his offer? What would do you in this situation as well. Thanks!
I think you need to do what you think is right. My honest guess is...he wasn't up on the current silver prices. However, he probably bought the coin a while back and was still making a profit on it at $15. I don't think there is any wrong answer to your question. You did what you thought was right...which is what you should do. But remember, just because you might get a good deal on something does not mean you ripped someone off. He may have been making a profit too.
With all due respect, an experienced dealer should need not to ask such a question. If this is your business, you should not be second guessing yourself over a few bucks. If this guy is setting up at shows and is not up on silver prices (as Camaro suggested) that's his own fault. A more likely scenario is that he was cutting you a break.
BooksB4Coins, I have been doing this for a few years and collecting for over 10 years, but I have never encountered a situation particularly like this one. It's not really the pinciple of a few dollars but rather should I accept the price someone is asking or try to be fair to them, considering I was paying about $20-$21 for silver anyways that day
In my personal opinion...it is the duty of the professional (dealer) selling the coin to establish the price. The dealer should know what the fair market value for his item is. That said, as has been stated...the dealer could have simply been making you a deal. Sometimes, that is a wise move because it creates a good relationship with the customer and thus will make them want to purchase other items in the future. It could be the way to open the door to a long business relationship. As I said before as well...the job of the dealer is to make a profit. That doesn't necessarily mean make as much money as possible. Perhaps that coin was purchased several years ago when silver was much lower and thus $15 is still a profit. It is also possible the coin has been sitting in his inventory taking up space/money for quite some time. This is also a common reason why items are liquidated at lower than retail costs. It frees up space and money while getting rid of merchandise that is not moving.
I suppose everyone has different experiences, but I've found that its quite common for people not to know the value of their coin/metals/whatever. Unfortunately its usually the other way around, but still the point is that this guy was not some little old lady walking in off the street. You even said he sets up, so the responsibility was his to know the value of his product. You both do the same show and one hand washes the other. Chances are he was either trying to do you a favor or start a throw a bone to start a two-way relationship. In all fairness, if you were going to pay $20-$21toz for silver, that would be taking just about the same advantage over someone as you would have paying this guy the $15.
No matter what your prices are or your ethics the one thing that really turns me off, and i attribute this to being young, is a dealer who does not take you serious. The kind that sees you browsing his items but makes no attempt to talk to you or find out what your interests are. I am from southern New Hampshire and alot of the dealers have turned me off because im young so they immediately have the attitude of heres another kid looking to spend his ten bucks and they look at me like im crazy when i tell them i primarily collect Ike Dollars and High grade rare toners. Some shops were arrogant enough to tell me im wasting my money, if they only knew the business they are missing out on but im sure my favorite coin shop is not missing it.
I forget what the item was, but on Pawn Stars, Rick bought an item from this guy, without one of his experts looking at it and giving him their opinion on value. When he found out that he underpaid for the item, considerably underpaid, he contacted the person who sold it to him, and gave him a couple thousand more and told him he wanted to be fair with the guy, that he found out he underpaid for the item and wanted to make it right. I would say the moral of this would be to go with what your gut feelings are, and if your feelings told you to offer the other dealer a more fair price for that coin, than that's what you do. If your feelings told you to just buy at that price, that's what you do. Remember, regardless of which way you go, you, and ONLY you have to carry that around with you. BTW, I would have done the same thing myself :thumb:
In cases in which ethics are not mandated by law, they are personal. People have to look at themselves in the mirror. You do what you think is right, and you did...nothing wrong about that. How someone else would handle it really does not matter. You may get opinions that differ from your and that is ok as well. TC
I don't blame those who scrap for every penny, it may be their meal ticket, but I think you did the right thing, the upstanding thing. Some people are just wired to get worked up about things, like a few bucks. Others don't. I'm fine with either. I just like to remember back to those baseball card dealers that would wring a 10 year old for an extra five bucks. I choose to never be that guy. Money isn't worth it.
Thanks for all the opinions you all! I appreciate it. To clarify i was paying $20-$21 for a silver dollars amount of silver which was about $2.50 to $1.50 underspot.. I was having a hard time moving dollars at even $23.00. But I appreciate all the othe different views and it's interesting to see how others think about the situation.
I think sometimes people over-think things. The dealer offered the price for a said reason that nobody knows. The deal is done and that should be it, the end. As far as ethics I think you did what you thought was right. Was it wrong if you had took the lower offer? Absolutely not, business is business you did it the way you want to.
Yes you should be fair to them. Now what is fair is the item in question. I think if he asked for $15 then $15 is fair for both parties. That does not mean that I have never paid more then someone asked before, but either way if your fine with it and he's fine...it is fair IMO.
Paying the asking price is fair. Paying more than the asking price if it feels right is also fair if it makes you feel good. As a dealer, you have to consider your profit margins over a period of time. For some items you pay too much, other items you get a good deal. I've paid more than the asking price on occassion to create a relationship with a seller. It certainly makes you more memorable and a lot of times, you get first crack at new stock.
