So I finally figured out how one of the coin store I go to works. When a customer asks them to find something for them they tend to tell the customer to give them a little extra room to work with. For example a coin or bill is selling for $400 they ask the customer to raise the price to $450 or so. They said this gives them a better chance to get the items the customer wants. To me it sort of makes sense but doesn't it defeat the purpose of finding a bargain? Was wondering what others think. I mean they to tend to have some very nice stuff but I have always they were slightly overpriced. They also tend to be very fair when buying coins and currency too.
This is usually how it works. If you don't haggle, you pay the full price. They always want to have some wiggle room for negotiating.
No, not at all. In fact it does the opposite, it increases your chances of finding a bargain. Tell me, which is the better bargain ? You ask your dealer to find a specific coin for you. You specify the grade you want and the amount you are willing to pay. We'll use your number of $400 for an example. In time the dealer gets back to you, tells you he's got 2 coins for you to look at. You go to the shop and look at the coins. Both are graded MS65 as you specified. The dealer tells you that 1 will cost the $400 as you specified, but the other will cost you $450. The $400 coin looks OK, you'd agree with the 65 grade. But it's really just average for the grade and maybe even a tad to the low side. The $450 coin however is drop dead gorgeous ! It has booming luster, nice strike, and it just oozes with eye appeal. Which coin is the better bargain ?
Speaking of coin dealer's ways, my coin dealer doesn't have prices labeled on any of his coins in 2X2's. I'm pretty sure he changes his "price" depending on whether the buyer is knowledgeable or someone just buying a gift. It kinda bothers me because when you ask about the price of something and you decide to not buy it, he starts offering other coins like it that are overpriced.
Finding a bargain is not always the goal. Some very rare coins are worth paying almost retail for. I searched for a MS 1885 three cent nickle for five years looking for a bargain. Then I asked my favorite dealer, Robert at Gulf South Coins, to keep an eye out for one. He came back with a gorgeous raw MS-64 (my grade) in two weeks. I was so happy to put that series to bed that I gave him what he asked for it. This may seem unusual, but I very seldom haggle too much with him. He asks a fair price and has been a wealth of knowledge for nearly twenty years. Sometimes, it is worth a few dollars to have a great dealer working for you.
Most of my "bargains " will be duds when it comes time to sell. The coins I stepped up for will likely do well. One thing I learned in the past couple of years on this site is that grade is only the starting point when it comes to price. For a recent example : I always wanted a 1907 no motto $10, I found two at local shops, both slabbed au58. One was fair for the grade - noticeable wear, a few decent hits, and middling luster. Priced at $950. The other at first blush looked like a ms 64 - hardly any wear (almost needed a loupe to find it), booming luster, and barely a mark on it. Priced at $1100. Which one did I buy? Neither, only because I want to see more coins in the flesh before making a decision. Likely at the next big show there will be many to pick from, some bargains, some not.
I think the OP's example really boils down to trust. If you trust the dealer, you should be happy to play along and give the extra latitude (the $50 wiggle room) to get the right coin. I trust my LCS, but I am still trying to convey exactly what my needs are -Nice Mint State PCGS or NGC Type Coins.
Are you looking for a bargain, or are you wanting the dealer to find a tough/difficult to find coin for you? If you want a bargain keep looking around yourself. It is unreasonable in my opinion to expect a dealer to go out beat the bushes, work his contacts to find that rare coin and then after doing all that work to sell it to you for less than what he could normally get for it elsewhere. You expect him to go through extra effort for you, you pay the going rate.
If my dealer finds something I've asked him to look for and it fits the criteria I set with him, I will pay his asking price which would still be lower than if he threw it into his showcase. He took the time and effort to locate it so I didn't have to. That counts for something.
I'm always on the lookout for bargains but I see now that if I ask for a certain item I should expect to pay the price I quoted. But if the dealer can get the item with a dealer discount it would be great if he would pass the savings on to the buyer. I don't know if any dealer would, since he did do the work and has to make money as well. But I was just wondering if its normal for a store to charge a bit more for something that a customer asks or will they help the customer save some money.
I go to a few shops. two shops are very good (not sure if I am allowed to name them). it helps to do business with them often. so, this establishes a friendship. I do tell others about how I am treated because we're always comparing notes. "treat people the way you wish to be treated." advice is common sense (use good manners). I helped a dealer at a show recently and I paid well below spot on some premium items.
If you ask a dealer to find an item, you are establishing a verbal contract. He should do the best he can within the cost restraints you place on him, but when he finds items for your approval, it seems to me that your options are to accept or decline. If you decline, the dealer might or might not lower the price, since he is the one who got it for you at your direction and has himself agreed to a price with the seller. A thorny problem!
