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MMD > Archives > August 1998 > 1998.08.14 > 03Prev  Next

Valuating Items & Dealer Mark-up
By John A. Tuttle

Hi All,  Jim Heyworth asks:

"The question I have is, what is the magic multiplier to convert the
collector price to the commercial vendor price, and is it the same for
all items be they automata, cylinder boxes, disc boxes, or whatever ?"

Admittedly, my personal experience with valuating items for resale at
the dealer level goes back more than a few years.  However, the people
involved locally are still the same people that I dealt with all those
years ago and I can't imagine that their philosophies have changed very
much.  So, I offer this information.

The typical mark-up at the dealer level is no greater than 100%
and no less than 80%.  But one must bear in mind that the dealer
will usually offer less than 60% of the fair market value when they
purchase the item.  So, doing the math on an item with a fair market
value of $1000, this is the way it works out: Dealer purchase price:
$600.  Resale price: $1200.

Frankly, this is the reason I never went into resale on my own.
I don't have the conscience which allows me to make so much for simply
offering the piece a place to be viewed by the public.  But that's life
in the big city.

So there is no confusion, I emphatically state that the above is my
opinion.  However, I seriously doubt that many, if any, dealers will
divulge their 'magic numbers'.  It's like asking a person how much
money they make, and that's not polite.


John A. Tuttle

Key Words in Subject:  Dealer, Items, Mark-up, Valuating

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