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 Replies: 13 / Views: 2,112 |
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New Member
Australia
18 Posts |
Hello all My first topic after only a few posts. Hmm...I am treading into uncharted territory here..but here goes. About 2 years ago, (and for the benefit of our US readers I'll fully clarify), I bought a 1967 Coombs/Randall $20, the rarest paper decimal note here in Oz for $680. I won the note on ebay. The note was graded? as VF+ and I wanted a Coombs/ Randall $20 and all the factors were there after research I had taken. So I bought it, paid for it, received it OK. Note WAS AS DESCRIBED. About six months later, there was a Coin/Note fair here in Sydney and I tagged along with the said $20 in my album along with others I was thinking of selling. The first dealer I approached, after showing the note without disclosing the price replied, "I'll give you $50 for it" The second said, "hmmph" and tossed it back to me like it was a used tissue" For the record, the note was a very nice example without holes, tears or major folds... After the third dealer looked at it and said, "I have no demand for this", and then promptly offered some notes to me for exchange. Mental arithmetic told me that I would be exchanging my R402 for 3 $1 DPS $1's and a $5 QPG... My question is, have any readers had any similar experiences like mine? For the record, I sold the same note a year later to another dealer, not at the fair, for $1550. |
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Pillar of the Community
Australia
1079 Posts |
TenorBd, I have heard more stories then I have time to write about. Me personally it happenes 80% of the time when I try and get a unknown dealer to value a coin. After a while you tend to know who is legitimate and who is trying to rip you off.
Research, Research, Research and more Research is all it takes to stop the sharks out there.
I am glad you had a happy ending with your note.
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Pillar of the Community
Australia
1529 Posts |
That is good advice there given by KLD...  However, you should also bear in mind that all collectables, whether they are coins, banknotes or whatever....seldom will you be given an offer to buy it price at it's CV by a dealer. This does not mean that the dealer is a crook. Dealers will often factor in a "profit" margin that he/she hopes to make when they resell the item. No dealer will buy a 1K item that at best they can only resell at 1K. Some dealers have this "profit" margin as high as 50%. Just my thoughts.....cheers. |
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Pillar of the Community
Australia
1091 Posts |
And also remember, dealers can be ignorant as to the value of a particular item, they have no special power other than a keen ability to offer you less than what they expect they could sell it for.
Ignorant more than arrogant. Although, the second dealer who made the Humph, sound and tossed it back, is also ignorant of manners and arrogant.
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Forum Mom
 United States
5877 Posts |
The other factor to consider is that many dealers specialize in a particular field. If the dealers you approached weren't familiar with your note or didn't have a customer that would have guaranteed a sale, that may have dictated their response. And, yes, there are dealers who will try to pay nothing so that they can make a fortune when they sell. Keep in mind also that, at shows particularly, dealers buy from other dealers...and ones that they know. It's a very closed community. Approaching a dealer individually at his shop or whatever is a better way to sell an item. It seems to me like you did exactly the right thing and it paid off for you. I'm glad. |
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Pillar of the Community
Australia
853 Posts |
There is a number of factors a dealer considers when buying from a client. 1) How many have I got? If a dealer has 10 of the item then the need for the 11th is just not there unless they get it at a bargain price. 2) What will the item sell for? Catalogue value is often not relistic. Many items actually sell well below or even well above catalogue price. 3) How long will it take to get rid of an item? It costs a dealer in excess of 10% a year to hold the item. This is because of overdrafts and the fact that money can be used on other profit making deals. 4) What can I get the item for elsewhere? I recently had a bloke try to sell me EF first prefix $100 test notes. These catalgue for close to $1000. I offered face value as you can get these off ebay for less than $200.00 and this was probably where these notes would have gone. Other places dealers will buy is from auction and wholesale. You do not pay more than what you can get the item elsewhere. 5) What is the dealers standard profit margin? Most small time dealers work on about 40 to 50%. They need that just to pay the bills. In fact most small dealers I speak to struggle at this level. The big boys can work on margins as high as 60 to 70% on some items. There costs include many staff, nice shops and glossy brouchures. Now I am not saying you were offered a fair or unfair price and that everyone is honest but often there are factors invoved in pricing that will change from day to day or from dealer to dealer depending on the individual dealers circumstances. |
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Pillar of the Community
Australia
1079 Posts |
Every coin has two sides and both sides have their merit.
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Pillar of the Community
United States
1203 Posts |
quote:
Originally posted by Bigfella
There is a number of factors a dealer considers when buying from a client.
1) How many have I got?
2) What will the item sell for?
3) How long will it take to get rid of an item?
4) What can I get the item for elsewhere?
5) What is the dealers standard profit margin?
Good list Bigfella, it's pretty much true on both sides of the pond, and well worth keeping in mind when shopping or selling. Edited by OldDan
02/19/2006 9:43 pm
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Pillar of the Community
Australia
1529 Posts |
Yikes !!!!! O_D actually posting at the "Darkside".....  [:0] Welcome to our neck of the woods O_D .... |
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New Member
 Australia
18 Posts |
The first two of three dealers I approached were quite well known through Aust. numismatics circles while the third didn't (to me) be as recognisable.
The first two also had a rather extensive range of decimal notes, but not one of them had this particular note on display. Not to say they didn't have 10 or so locked up somewhere.
Thanks to all who have replied to my first thread....it really makes enjoyable reading.
Cheers..
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Pillar of the Community
Australia
1079 Posts |
Threads only get more nejoyable to read. You finally get hooked.
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Pillar Of The Community
3147 Posts |
If Old Dan isn't real careful messing with Darkside coinage he will have to change his name to OD alright! "Over Dosed" on Darkside coinage and addicted like no other drug could ever do to him! Hang in their OD as I have a small "hit" headed your way!!!
Edited by crystalk64
02/20/2006 10:05 am
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Valued Member
Australia
122 Posts |
I collect for investment and really buy for beauty. That means if the dealer buys something for 100 dollar then I try to get it even cheaper. I can do that because I don't have to replace sold out stock, and don't care if I have 50 A coin and no B coin. The result of this my collection worth more melted down than I had paid for them altogether.
Edited by projack
02/26/2006 04:53 am
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Valued Member
Australia
65 Posts |
Just have to be selective to find good dealers
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Replies: 13 / Views: 2,112 |
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Posted 02/19/2006 02:57 am
