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It's been a long, long time since I've purchased anything from a printed ad or price list and most of the dealers at the shows I go to are regional or local and not the "big name' dealers. I don't know who their (the biggies) clientele is or how they stay in business, but they keep advertising so they must be making money.
Auction sale commissions may be a large part of the big name dealers profitability. Then, too, high profile, wealthy collectors (which I am not) may be regular buyers. The stock they handle seems higher priced to me and they may need to sell less of it at the higher prices.
I agree. Very often the marketing budget gets hit early (I work in PR so this makes me sad), and Mystic continues to be a very active advertiser and buyer. I think they might look at another market too. While I've not noticed lately (I've not paid attention), I have seen them advertise in non-philatelic venues.
A few years ago, I had a lady buy some Princess Diana stamps from me. She wasn't a stamp collector but a Diana collector. Is this type of collector a possible market for Mystic or other companies? I don't know...Just speculating. And that's about all we can do. We can't see their financials but they've been around a long time and just keep going. My speculation is they have several revenue streams, which means more than stamps and supplies - it also means several ways and several communities of customers for those things.
Sort of reminds me of Champion Stamps in NYC. Good stamp shop, but if you look them up on Yelp, the vast majority of their reviews are from brides-to-be who were looking for vintage stamps to mail wedding invitations and/or decorate their receptions/weddings. The store's been featured on some big name media for that very thing. Probably a decent little side revenue stream for them.