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CNG Raises Buyer Premium


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🤔Inflation affecting CNG? I didn’t realize the cost of goods rising was affecting CNG as a professional middle man…

I really hope that raise in BP goes to employee salaries (which I highly doubt) or else this is just a thinly veiled excuse to make more money

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Every other corporation is making record profits & using inflation as an excuse, so why not auction houses?

I'm sure ebay is sniffing around and will be following along by years end.😒

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Same as Amazon - here in Germany. Amazon Prime goes up 30%… and the joke is, Amazon is one of the Winner of the crisis and says, we must get more money, because there are crisis. Double win. Same CNG - coins go higher last month and so their profit also - and now they say we must take more money. What a joke. Winner of the coin inflation and says we must take more money because there is a inflation. 

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10 minutes ago, John Conduitt said:

A 12.5% increase - above inflation. And it's on a percentage, which means they earn more money when there's high inflation anyway. If they continue with that logic, they'll reach 100% fees eventually.

no, it's more close to a 2% increase.

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35 minutes ago, John Conduitt said:

Yes. I've bought a lot from them. But I have to pay import duty on whatever they charge, so they're getting uncompetitive. From the US, I think I only have Davissons left worth buying from 🤣

 

I'm gonna confess I never thought of Davissons as being "affordable"! Maybe that's just the particular stuff I'm looking at though... Usually they have lots of stuff I love, but the opening bids a bit higher than I want to pay. Actually, when it's coming from collections that have been off the market a while, I sometimes find the opening bids attractive. But when they've (or their consignors have) just won something at a Swiss e-auction a couple months ago, and set the opening bid at 2-3X the hammer, I leave it on my watchlist, but don't seriously consider bidding!

In the US, seems like we're getting the extra benefit right now of currency conversion swinging our way. (Suddenly I don't have to multiply my Euro bids by 1.2 anymore to figure out what the hammer will be in dollar equivalent!)

Edited by Curtis JJ
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1 minute ago, Curtis JJ said:

I'm gonna confess I never thought of Davissons as being "affordable"! Maybe that's just the particular stuff I'm looking at though... Usually they have lots of stuff I love, but the opening bids a bit higher than I want to pay. Actually, when it's coming from collections that have been off the market a while, I sometimes find the opening bids attractive. But when they've (or their consignors have) just won something at a Swiss e-auction a couple months ago, and set the opening bid at 2-3X the hammer, I leave it on my watchlist, but don't seriously consider bidding!

In the US, seems like we're getting the extra benefit right now of currency conversion swinging our way. (Suddenly I don't have to multiply my Euro bids by 1.2 anymore to figure out what the hammer will be in dollar equivalent!)

Fair point. But sometimes Davissons work out good value because of the 0% buyer's fee 😁

The US exchange rate is definitely not helping...

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I found the announcement quite interesting as it seems to confirm a suspicion that ancient coin prices have actually fallen a bit since the downturn. If bids at auction were increasing, then there would be no need for the increased buyers' premiums since they would be making more money.

However, like many companies I assume they've had to increase salaries to match inflation, so they felt compelled to raise commissions. Since they raised their printed auctions by 2.5 points vs 2 points for E-Sales, I assume the extra .5 points is due to the increased costs of printing.

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Kicking up the buyer's fee was a poorly timed stupid idea by CNG management 😕. The consigners will be the real losers with that decision. I don't see CNG getting any more consignments from me 🤔. The smaller auction houses just got bigger...

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59 minutes ago, Al Kowsky said:

I don't see CNG getting any more consignments from me 🤔. The smaller auction houses just got bigger...

That's what I always say when I get upset about one of the auction houses. Until another coin comes along that I want so badly. 

😄 

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  • 2 months later...
5 hours ago, Glebe said:

CNG last raised their fees only a few years ago.

Inflation is no excuse as it boosts coin prices like everything else.

Perhaps business isn't as good as it was.

The ownership of CNG changed in 2018. It's now run by a guy who used to work in 'water and wastewater'. Of course, his main concern is growth, which costs money. And as with all business that are taken over, each time they are, profits have to be higher than beforehand to cover the cost of the takeover and new expectations of returns. So prices creep up until they become uncompetitive, the business runs into debt and declines.

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3 hours ago, John Conduitt said:

The ownership of CNG changed in 2018. It's now run by a guy who used to work in 'water and wastewater'. Of course, his main concern is growth, which costs money. And as with all business that are taken over, each time they are, profits have to be higher than beforehand to cover the cost of the takeover and new expectations of returns. So prices creep up until they become uncompetitive, the business runs into debt and declines.

It's true of course that the current owner of CNG was "new" to running a coin dealership when he took over, but he is a long-time, very serious high-end collector of ancient coins. It's not as though he had no background in ancient numismatics. (I know John that you didn't imply that he had no background, but I thought it was worth a bit of clarification. Hence this comment; no criticism of your post is intended.)

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