"I Paid More Than That."

I realize not all the time can a buyer and a seller come together and agree on a price the buyer wants to pay for a coin he/she would like to add to their collection. It doesn't matter if it's at a show or on line. But personally, when those times do occur, and today was another one of those days again, I'm tired of hearing what I call the seller's overused default answer, "I paid more than that." I interpret that response as being less than honest. Sorry, but I just do. And I'm talking about an offer of 81% of the suggested, current, published retail value of a $1500 coin; not some insane, unreasonable, low-ball offer.

 

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Well, as a dealer, I can say that generally, you are not wrong. On the other hand (and usually when buying to order, and later trying to sell after a default on the deal on the part of the buyer) this situation has occurred to me. Sometimes, yes, dealers make bad deals, and its up to us to swallow that, I suppose... or sit on the stock until it appreciates (tends to be a lengthy process ).

 

Yep, when I hear that line, the response that comes to mind is "that sounds like a you problem". Of course, saying that doesn't help move the negotiation along.

More specifically, I think of all the times I've heard a dealer say "you make your money when you buy the coin" -- guess this guy hasn't mastered that yet!

 

At least you are making a fair offer. As an occasional Ebay seller I'm amazed at what some people think is an appropriate offer. I have an item up priced fairly at $229 right now and someone just offered $50. I had another item up (also priced fairly) for $100 a while back and was offered $20. Do they honestly think a seller will go for that?

 

Me: What's your best price?

Dealer: $750

Me: Grey Sheet has it going at $650. Is that price the best you can do?

Dealer: I paid more than $750 for it. I can't come down any more.

Me: Thanks, I'll pass.
[aside: Why should I pay for your mistake?]

 

So at this point an offer of $1,215 for a $1,500 coin is fair but not great. I think a 90% offer for most coins are more do-able and would probably break the impasse for this seller. As long as you know the ballpark price is valid, why not compromise to the seller, if the grade is solid?…jmho…Spark

 

About 10 years ago, I had a chance to buy a complete Unc set of 1935 Alaska Rural Rehabilitation Corporation (ARRC) tokens. The Seller wanted $750 for the lot. I tried to dicker and lost the deal. I've kicked myself ever since. Everything is relative.

 

How about:

Buyer: The Grey Sheet is $1000
Seller: I got such a good deal on it, I can let you have it for $600

In a far-off universe...

 

I've used that line before when selling. I'm not a dealer and some of the coins I've listed were either not generic and/or I didn't need to sell (I was ready to let them go at a certain price but anything lower than that I would rather keep them); so I would honestly tell the potential buyer that I paid more than their offer and couldn't go that low.

Another factor is relative amount. If I'm selling a $50 coin and you offer 81% ($40.50), I will likely let it go even if I paid $45. It's a minimal loss (~$5.50 eBay fees and ~$4 shipping = ~$14 loss) and likely not a coin that is hard to replace. On the other hand, a $1,500 coin where I paid $1,350 and you offer $1,215, is a bigger loss to absorb (~$153 eBay fees and ~$11 shipping = ~$299 loss) and likely a coin that is hard to replace.

Edit: in general 81% of the ask is within reasonable range for an offer but it is pushing the outer boundary. It also depends on factors like if the coin is already fairly priced; is there something unique about it (nothing similar available); is it something that does not come up for sale often; etc...

 

I've sold coins for less than grey sheet and less than the going rate before if I was lucky enough to find it for a good deal (and a few where I wasn't lucky but didn't want to keep it-one half cent comes to mind in particular where I didn't like it and decided it was best to move on than to be reminded of the poor purchase).

 

Let me give you the exact details. I base all my purchases on NumisMedia Fair Market Value Price Guide, which has the retail price listed at $1470. The seller has the coin priced at $1695. My offer was $1200. And the seller said, "I paid more than that," and he's offering the coin at $225 above listed retail price. The grade is solid, no problem with the grading. Would you offer 90% of the, in my opinion based on the Price Guide, overpriced $1695?
And to everyone who has graciously replied so far, thank you!

 

You made an offer of 71% of the asking price, which is generally on the low end.
Guide might be lower, but guide is different than the asking price. Right now the market is hot and the coin could easily be worth well above guide (even if the market wasn't as hot, a PQ coin could still be worth more than guide).

Coins are selling well now and sellers are also having difficulty sourcing inventory so many are hesitant to discount prices (especially if coins can be moved at retail levels).

This could also be a case where the person has greatly overpriced the item and $1,200 is closer to fair market. In general, if I'm that far apart, I don't make an offer. Sometimes you still might want to test the water, but most times don't expect the seller to come down that much.

 

As an aside...what is the lowest price you purchased any of your 1 ounce silvers for? I think I remember $10

 

I remember $7-$8 for Silver Eagles around 2002-2003.

 

edited

 

I think there is a flaw in the above statement in your post.
Seller's asking price is $1695. Price guide quote is $1470. My offer was $1200, approximately 81% of price guide quote.

 

Bottom line: if you think it is overpriced, pass…imo…Spark

 

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I've always found it funny that buyers just can't ever pay what is being asked for an item if that price is anywhere in the ballpark of fair.

 

Why should they.. that's negoatation 101, you can always raise your price.. kind of hard to back up..

 

It's okay for a seller to lose a little on every sale as long as he makes up for it in volume . . . .

Then there's bullion. Nobody loses money on bullion items . . . .

Z