Comment by DP on April 23, 2011 at 4:15pm

True. What would be considered a normal mark up. Does the mark up depend on the value of the item. For example is a George Washington Society of Cin. document have a different mark up on a percentage basis than let's say a signed modern piece like J. K Rowling book or a U2 album? 

David

Comment by Steve Zarelli on April 23, 2011 at 4:22pm

I presume a dealer would pay 30-50% of retail for common items or material that may sit for a while. Something where they likely have a quick sale or a buyer lined up would probably get more than 50%.

Comment by Steve Cyrkin, Admin on April 23, 2011 at 4:26pm

It depends. Most dealers buy for half or less what they can sell it for. Certain things have much closer margins. Some offer 10-20%.

I think we all agree that most of the prices listed are high...but they've been high pretty much all along. What I think are really worth discussing is the reasonableness of the percentage increases over the years, and the investment potential of autographs—by name, by category, genre, etc.

What do you think?

Comment by Steve Cyrkin, Admin on April 23, 2011 at 4:29pm

Zippy, in some cases it's even closer...more like 70%-80%, particularly if they have a client for a hard to find item and you have that item.

Comment by DP on April 23, 2011 at 4:33pm

May I should ask this in a different thread but it has got me intrigued now. So assuming I buy at an auction a John Adams Land Ships papers for say $4,000 or so plus the buyer's premium. A dealer will only pay $2,000 for this?  Or is it more likely that this kind of piece the haircut would be smaller and you would be looking at $3,500 to $3,800. Or am I mixing auction prices with retail prices. Because I guess you shouldn't mix retail and wholesale prices and auction prices.

Comment by Steve Cyrkin, Admin on April 23, 2011 at 5:03pm

David,

You've introduced a fantastic topic! Would you be interested in moderating a discussion on profit margins, discounts, etc.? If so, let's discuss what we want to cover by email, and then introduce it. I think it would be hugely valuable. Please drop me an email. You may need to friend me first.

Thanks,

Steve

Comment by Chris Maksylewicz on April 24, 2011 at 10:29pm

I will agree the prices are stupid high, The original post on my FB was for many of my friends and others who slam the hobby.  GRANTED the prices are high, but it is so fun and the output cost on many pieces is just time and maybe a stamp.  And the return can be amazing.. NOT Fraser amazing but at times, it can be close, as people attach emotions to some pieces (case in point, a clapton guitar I once sold for over 10 thousand as the guy remembered when he met his wife at a Clapton concert).  It just KILLS me that people slam the hobby (although I am not in it for cash.. ) and think it is just money down the drain.

Comment by Robert Zarrillo on April 25, 2011 at 2:58pm

I think the concept is a good one.  the problem is there is no standard for what an autograph is worth.   If you collect coins and you have a particular coin date and condition - you know what it is worth and you can estimate what a dealer will pay for it considering a reasonable markup.   We can only work in ranges with autographs - but that said - what this particular dealer charges is clearly outrageous.  I have exact knowledge here.  On his website he has a John Wayne autograph he is selling for £1950  or about $2500 in todays money - well guess what folks - I recognize that photo as one I SOLD in a R&R audition about 2 years ago - the hammer price as $1200 give or take a few.  So he is asking twice what he paid for it - that does not mean that is what it is now worth.  Arguably $1000-$1500 may be what ist worth - a range not an absolute  (but $2500???? not likely in this universe).

Comment by Robert Zarrillo on April 25, 2011 at 3:05pm

I should point out I've also recently sold Waynes at much less on eBay - where you can rarely get what something is worth

Comment by Dr. Richard Saffro on April 25, 2011 at 3:21pm

These prices, in my opinion, do NOT reflect accurately on today's marketplace.  I am a seller at these prices.............any takers?

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