Larger Stamp Houses?

I know that larger stamp houses make it their business to go around the country buying up collections then selling off the cream. Are some of these guys trolling on E-bay as well?

Since their piggy banks are much larger do they peruse the listings looking for bargains? Or do they just buy what looks interesting and set their purchase price high knowing they will still get the collection at a bargain bulk price and make way more by breaking it up and reselling.

Most of the larger auction houses like you see on Stamp Auction Network make their money selling collections on consignment. They receive a seller's and most often a buyer's commission for each sale.

If you're talking about larger stamp dealer's then yes some definitely buy from ebay and other web auction sites. I think they would buy items that are greatly undervalued and those in which they know they have a buyer for a particular item.

Yes, I see that if you have a buyer looking for a particular item and you can use your connections to locate and procure it cheaply. At that point they are just a professional buying agent for the buyer. I would also see these dealers buying from the auction houses as well if their was a need for the stamps. Maybe I need to rephrase my question.

A lot of times I go to library book sales. At these sales there is a lot of people with scanners and Iphones going through the stacks of books checking the bar codes. Every once an a while they would cull a book here and there and put it in their stack. Its obvious they are buying against a want list or a list the of wants the company they work with needs. Henceforth what they are buying for .25 to .50 they are selling for a few bucks either directly or up the chain. This causing the book to only be available at a much higher price.

What I wondered is if some of the stamp dealers have such an intrinsic workforce working for them where they are so good at purchasing quickly a good bargain on e-bay or wherever, the lay person looses out? Basically the corporate person doing the purchase knows if he gets the collection at X dollars he can automatically sell it at Y. And even if a collection costs a few dollars more than what the lay person would purchase it at he knows he still would have a good payday. Henceforth they casual collector ends up having to pay way more to get an item only because the buyer has a better network to disperse the collection.

I don't think it's possible to generalize about upstream buying habits. There are sharks and there are minnows and then there are guys who sell hooks. After 60 years in philately, I can look at a jumbled-up box lot and know (at a certain price) if I can make money parting it out (same theory as junked cars). But I'm not an active buyer now, I'm sitting on the other side of the table. Most months, I only spend $30-40 on ebay or bidStart, primarily on misdescribed or overlooked lots of foreign covers or postcards.

I can tell you that the dealers and wholesalers who advertise that they send buyers all over the U.S. pay a pittance compared to other "categories" of buyers; it's VERY expensive to keep those guys on the road.

I keep CraigsList full of stamp ads, and occasionally hit paydirt. I am more interested in how many cubic feet I sell, not the dollar amount (small apartment).

There are a lot wrong statements on this page and not a lot of truth as to how business is done at the major stamp auction firms .I don't know were your coming up with this stuff -----ARE YOU SERIOUS with the above postings ?

My two cents for what it's worth.

As a collector with limited means there isn't much you can do to alter the situation that you painted out (if it is true to begin with). Keep in mind that even if a dealer is doing what you claim they do then that's alright because for them it's a business. If anyone else were in his place they would do the same. The guys who sell used cars do the same thing. They buy a used car for cheap and sell it at a markup. You can't really bargain with the guy unless you know everything about cars.

However, there are certain things you can do:

Firstly, decide if you want to collect just because you love stamps or because you also want your collection to have some monetary value.

Next, if you don't have deep pockets, you have to scout on ebay for the best deals you can find. There are some pretty good deals if you look properly and there are ways to reduce your overall expenses.

Example: If you find a single stamp from a seller that you need / like. Before you buy it check if the guy has other stuff too which you could afford and need. This way you cut down big time on shipping and buy more stamps.

Try and look for deals with free shipping (Will save you good money)

To start with, buy the more common stamps that you need to fill up most of your topic. Only once the vast majority is complete will you start needing the really rare ones which will make you feel it on your pocket.

I know I strayed off topic but only trying to help.

Floortrader,

I guess when I rephrased my question I was going more to the dealer side than the auction side.

After looking back at what I was asking I see where it may not make any sense. The stamp universe has many facets that one can pursue some for money some for fun. My question, I guess, is more lamenting the sharks and the minnows aspect of stamp collecting.

Where the sharks are the more experienced and cash rich who are using their knowledge of the stamp industry for business purposes and not necessarily collecting. And the minnows are geared to the more recreational aspect of collecting. The guys that don't have the knowledge or dough for the big scores but enjoy the ride that comes their way.

Are there so many sharks that the minnows loose? Or is there a good way for the minnows to find value without having to ply the big sea waters?

I know that the world of stamp collecting is huge. And I know that there are deals to be had with a little knowledge. Because I see it all over this forum. People sharing their knowledge and interests. And making the hobby, at least for me, more enjoyable.