A word about high-price versus low-cost versus dealers. I discuss pricing in depth in a special page titled Pricing. I dedicate his page to to discussing dealer pricing.

This hobby depends to a large degree on relationships - NOT PRICES. I want to stress this deeply. I urge you to form relationships with dealers, preferably several dealers. Find dealers who will help you in this hobby. Find dealers who you feel comfortable with.

Try a different dealer. You will find dealers offering similar certificates at widely different prices. I hear from collectors all the time, often complaining about one group or the other. I understand their concerns, but I always suggest that they just try different dealers.

Dealers have their own pricing strategies, all based on hard-won experiences. Don't try to change them. That would be like trying to convince Wal-Mart to become more like Nieman-Marcus. Or vice-versa. That is just plain silly.

Instead, find dealers who fit your style - and wallet.

Please, let me make a gentle observation. Dealers specialize in different parts of the price spectrum because price is the easiest way to attract the types of collectors they like to deal with. One of the toughest lessons for dealers to learn is to identify their core group of collectors and focus on that group to the near exclusion of the rest.

As in life, no dealer can be all things to all collectors.

Low-price dealers will tend to focus on certificates they can sell quickly. They will tend toward common certificates, especially certificates they can find in volume. The idea with many low-price dealers is to make a small amount of profit on a large number of certificates.

Low-price dealers will occasionally offer a few rare certificates. Problematically, their customer base may not jump on rarities immediately. Since low-price dealers do not specialize in rarities, their prices may appear too high. Or too low. Their method of operation is to "turn" their invested dollars quickly, so they may not be able to sell high-ticket items quickly enough.

High-price dealers will tend to focus on highly-desirable certificates, even though they may not sell quickly. Often, their items are one-of-a-kind. And, to some collectors, high-price dealers' prices may not appear high at all.

High-price dealers will generally offer some common certificates. Unfortunately, their customer base may not buy common certificates quickly, if at all. The problem with high-ticket dealers selling low-priced items is that the dealers may not have those types of collectors in their mailing lists. High-ticket dealers also need to "turn" their invested dollars quickly. But, because their markup may be higher, they may not need to sell quite as many items.

So, it really comes down to how you like to buy and collect. Remember, every type of dealer must make a profit or go out of business. And every type of collector must buy what he or she finds desirable, or get out of the hobby.

Try out a lot of dealers. It will not take long for you to gravitate to the types of dealers - the types of people - you like. And, this, after all, is the goal. You want to form a relationship with someone you like. Someone you can trust. Someone who will help you achieve what you want in this hobby.

I hear a lot of complaints.

"How can he expect to sell those for that much?" "How can he sell them for so little?" "I know another dealer is selling the same certificate for half that much!" "Oh, he just sells junk!"

I realize collectors are grappling with a difficult subject.

Pricing operates in somewhat of a vacuum. Dealers often have no idea what others are selling the same items for. And their normal customers may not either. Or, they may not care. Or they may have different financial situations.

As I discuss in Pricing, the subject takes a long time to understand. Pricing is dynamic. But, to get a start on the subject, remember that certificates are not commodities. Every one is different. Secondly, remember that list prices are strictly "ask" prices. Customers always have the option of asking for better prices.

Many factors go into pricing, and they vary radically from dealer to dealer. How many examples does the dealer have in stock? How long has the certificate been in inventory? How much did the dealer invest? Is the condition of the certificate better (or worse) than average? Has rarity changed because of new discoveries? Are outside influences affecting prices? What are the dealer's typical customers like?

In conclusion, I ask you to look a little deeper. Try not to dismiss dealers at either pricing extreme just because you don't agree. Rather, try to understand that all dealers have different motivations, different perspectives, different experiences, and most of all, different customers. I suggest that dealers at both extremes have something valid to offer.

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