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How Are Stamp "Catalog" Values Established?

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Pillar Of The Community
Canada
1324 Posts
Posted 03/13/2015   4:36 pm  Show Profile Bookmark this reply Add CanadaStamp to your friends list  Get a Link to this Reply
I agree with the observations re integrity. What dazzles me is the dealers / collectors who dare to list stuff at catalogue or anything above 60% catalogue. At the BEST, a catalogue price is a maximum retail. It is nowhere near wholesale or what - for example - an ebay opening price should be. And as far as I am concerned unless the stamp has a certificate and you are an expert in that issue, you should not pay more than 60% catalogue for a better stamp.
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Valued Member
United States
20 Posts
Posted 03/13/2015   4:47 pm  Show Profile Bookmark this reply Add Passages to your friends list  Get a Link to this Reply
ebay is difficult because by the time you pay ebay, Pay Pal and shipping (if you offer that) you get next to nothing. I'm sure that folks would like to offer reasonable deals but everybody wants their piece of the pie.
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Pillar Of The Community
United States
2055 Posts
Posted 03/13/2015   4:56 pm  Show Profile Bookmark this reply Add TheArtfulHinger to your friends list  Get a Link to this Reply

Quote:
And as far as I am concerned unless the stamp has a certificate and you are an expert in that issue, you should not pay more than 60% catalogue for a better stamp.

Usually that's the case with me, but it boils down to how badly I want the stamp. Are there 5 others available at the same time, or is it likely another pops up in a few days? No need to reach higher for it in that case. But sometimes there are stamps that might not have a very high CV, but don't come around all that often. If it's going to be a month or two before I see another copy, I'm prepared to bid 100%+ CV if it's something I really want. Of course I'm generally talking about stamps with a CV of less than $50-$100 or so. My pocketbook dictates that I get a substantial discount off of Scott for stamps valued much higher than that.
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Moderator
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United States
12330 Posts
Posted 03/13/2015   5:00 pm  Show Profile Bookmark this reply Add 51studebaker to your friends list  Get a Link to this Reply
Heir,
Yes, the some of the data would be dirty. But this is overcome with quantity, if you have enough data the bad data becomes less significant and will not effect the trend.

And keep in mind that ebay would be only a single source of data. Gleaning data from other online and offline resource would only increase the likelihood of uncovering any trends.

Although you could look at a, let's say, a five year average; a better understanding would be to break it into smaller 'chunks'. Like last 12 months, or in the year 2012.
Don
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Pillar Of The Community
United States
1125 Posts
Posted 03/13/2015   5:17 pm  Show Profile Bookmark this reply Add chipg to your friends list  Get a Link to this Reply
Canada Stamp:
You don't mention condition. The Unitrade catalog (well, the 2011 version of it) lists suggested prices for different conditions. The VF value for a 2c Small Queen (#36) is $3.00. What would you pay for this stamp (sorry about the bad scan):



The same catalog has the value of the 3d laid paper (#1) in VF condition as $1600. What would you pay for this one:



As a note, I know of one used copy of this stamp that sold for $12,000 US.

If you want mediocre stamps, you can pay mediocre prices. If you want truly very fine or better stamps, you should be ready to pay very fine or better prices. I can tell you which ones I think will hold their value better in the long run.

C.

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Pillar Of The Community
United States
1179 Posts
Posted 03/13/2015   5:42 pm  Show Profile Bookmark this reply Add Hal to your friends list  Get a Link to this Reply
Thank you Dan,
for reading, understanding and commenting at what was driving my post. While attempting to respond to your post, my comments became directed to ALL readers. My collecting interests were not only nurtured at home, they were driven by a deeper interest to learn: about people -- places -- geography -- language -- cultures not our own. Through collecting stamps, I have travelled to every county in the world. I learned about the cultures, religions and history that were briefly or never taught or discussed in school. I explored every continent never leaving my home.

Through emersion in stamps and covers I developed an interest in languages, which enabled me to conduct business in Iceland, Germany, Italy, Switzerland, Japan, Korea, China and elsewhere. I've developed friendships around the world through stamps. However, I have never allowed my collecting passion to over rule my common sense… that unfortunately the majority of collectors seem to leave at the door when it comes to stamps, as demonstrated many posts. (Now that you understand my passion, I will address your great response.)

Markets change, and the stamp market is going through a dynamic change, affected by the disposition of both "Silent Generation" (b.1925-45) collections and current "Baby Boomers" (b.1946-64) now reaching retirement, being forced into disposing of collections due to the last economic. Unfortunately, collectors are quickly coming to the realization that the "self-inflated value" of their stamp holdings has not only failed to keep-up with inflation, it has tanked…or a $1 in stamps is now only worth 20 to 45 cents, if that. And collectors do not like it!

Collectors also want "catalogs" to be reflective of what they collect and prices they perceive. Well, they haven't been since the dawn of the catalog. They haven't since "stamps as a governments' way of making money" has become a way of business. They haven't for every government, local post, municipality or island with four inhabitants and printer that will produce a stamp or postal stationary. (Back to all)

To understand history and rivalry behind SCOTT, FACIT, GIBBONS, YVERT, MICHEL, etc., what drives them: the numbering systems, the rivalry and competition between them, and the personalities would take a small book. They were hard competitors at the beginning and they are hard competitors now. Not one would shed a tear if the other went away. And what ebay "is" and "does" is not even on a par with this group, either in capacity or business model; business wise, ebay can not be discussed in the same breath: all combined do not equal the one, or what it does or could do for collecting, if stamps were a growing cluster.

From a marketing perspective, ebay's Geo-Demographic Socio-Psychographic information is one thing and their of database of pricing results could be cross-referenced, with tables established and populated, cross-referencing "all" associated catalog numbers for given issue, however, said copyright holders would step-in immediately and cry "foul" for "COPYRIGHT INFRINGEMENT."

As to the idea of using ebay as a main "catalog" source of pricing... I would throw in the towel and stop collecting immediately! Have you ever read material descriptions ebay then looked at the material? I truly think 80% of the EBAY-Sellers are blind, color-blind or inept of the understanding of stamps, and I don't think the other 20% would be able to accurately define a "Poor - Fine - Very Fine" rating between two stamps, if it killed them --some dealers included!! Mis-perfs, thins, holes, face scrapes… forget it. I'd be more accurate trying to hurl a cat at a speeding car! You want to use EBAY-prices to establish true Market Prices? Excuse me; even SCOTT is better, thank you.

Dan, I love PBS Roadshow. It's a great place for market prices Guns, Swords, or aunt Lillie's' old vase, jug and watercolor. BUT, you'll never see a stamp collection or group of stamps shown. I love when they show a piece of postal history; yet, they NEVER mention the stamp. They stay away from stamps' like they have EBOLA.

The historical "Cheerleader" for the hobby was the American Philatelic Society it was to be a great organization -- until it lost its focus. Dan, you're a consultant, so you should be aware of the saying, "EGO'S KILL!" So be it with the APS. Between the egos of board members in the 1980's and 90's and the ridiculous expenditure on their new building (which may still bankrupt them due to short-slightness and falling membership) the APS has been the driving force. More importantly, the ASDA shares a greater blame. Why? THEIR INCOME, even if part-time, depends on the hobby.

I said at the opening, "... My collecting interests were not only nurtured at home, they were driven by a deeper interest to learn -- about people -- places -- geography -- language -- cultures not our own." We, as a generation, own the greatest blame. We have failed our children and our neighbor's children by allowing our schools to de-emphasize the importance of HISTORY, GEOGRAPHY and LANGUAGE.

Ask the average "College-Prep" student to locate a country in Africa or even Africa on a map -- they can't. That is OUR fault. Ask the same student to name the first president of the United States or whose picture appears on a $5-bill -- they can't. That is OUR fault! I can go on but I won't. WHY are kids more interested in video games than history? Because we, as parents and grandparents, haven't done what our parents to us -- insist we learn and NOT spend our entire free time in front of a video or computer screen. We are the one who must correct it – we have the time.

To The ARTFULHINGER … you like German stamps and Michel#s – stop using ebay and go to DELCAMPE. (By the way, if I were a collector of Germany I would never be using SCOTT as my main reference) DELCAMPE is an excellent source for material… to buy and sell Germany. #2) As for grading, I dare you to put five stamp dealers and/or collectors in a row and have them grade a stamp. I doubt you would get the same grading between the two groups, let alone two people. Remember: "Beauty is in the eye of the beholder." And if you own the stamp, you are probably biased about it out-of-the-gate. 3.) Pricing is never, "...Child's Play." There are too many factors that have to be considered when evaluating or pricing material, that is unless you are speaking about junk stamps, or you want stamps evaluated the way "PSE" appears to evaluate stamps, based on their posted video. (Also see SCF).

51Studebaker… you want ebay's information? You have to PAY to PLAY. You can get what you want, but it's not free. I was with a Billion-dollar company that did biz on ebay. I got all the info I wanted or needed; of course, some was private and not available, or they didn't have. However, they would do anything, as long as you paid for the programming. Don, no one gives anything away for "free" in business -- especially in a public company! If you were a stockholder in ebay, would you let them give INFO away that management could sell at a profit? ebay, INC.'s e.p.s. was 0.82/share in Dec and -0,04c for the year. Give it away for FREE --- I bet you'd say, "Never!" Like I said before everyone, take off those rose-colored glasses.

GeoffHa: Don't believe for a second that S.G. prices have to reflect S.G. costs. The collectibles business (and many others) doesn't work that way. Stamps do not work on the same mark-up basis that other merchandise categories you know. In established markets like stamps, especially where you have a vertical operation of a catalog and sales operation, they are NOT going to lower prices in the catalog simply supply. The stamp market has always been driven on arbitrary price setting. SG has been a leader in this area amongst dealers. Exactly why do you think they established the S.G. catalog? It wasn't for philanthropic reasons… other than their own.

And to all, if you think the guys who call themselves "experts" (ex'pert = a drip without a spout) just take a look at the "PSE EXPERT" video clip post on their website (or on SCF the other day) showing on expert's evaluation and handling of stamps. I wouldn't let "Steve from PSE" handle my cat's litter box, let alone my stamps." If that's a stamp expert, I'm a brain surgeon!

REVCOLLECTOR… you correct in your statement but why not tell them what a SMALL % of issues that actually reflects. SCF readers and others would be surprised. Also, collectors do not have the final say on prices… it was has always been dealers --- the NYC-based segment of the ASDA + a few others that had the key say on prices. However, some of those dealers are no longer alive or in business. Oh, by the way, aren't you part of the "PSE Experts" listed on their website? What are your thoughts about "STEVE", his performance and evaluations? Do you think collectors should trust PSE after that? Ahh…that's why I use the APS and Philatelic Foundation.

Dan, thank you again for your response and for understanding my passion.

Best to everyone! (Most important: enjoy collecting as long as you can)
Hal
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Bedrock Of The Community
United States
10590 Posts
Posted 03/13/2015   6:14 pm  Show Profile Bookmark this reply Add revcollector to your friends list  Get a Link to this Reply
Again: No I am NOT involved in any way with PSE and never have been. My name is NOT on their website. I do expertize revenues for the Philatelic Foundation, and as such I prefer to refrain from personal comments about the efficacy of the PSE or anyone involved directly with it.
I did ask two dealers who's names are on the PSE list whether they still do work for them and was told "not for several years".
Bart
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Pillar Of The Community
1849 Posts
Posted 03/13/2015   6:44 pm  Show Profile Bookmark this reply Add kevin504 to your friends list  Get a Link to this Reply

Quote:
What are your thoughts about "STEVE", his performance and evaluations?
Do you think collectors should trust PSE after that?


Hal.....Do you care to elaborate???
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Rest in Peace
7742 Posts
Posted 03/13/2015   7:07 pm  Show Profile Bookmark this reply Add wert to your friends list  Get a Link to this Reply



Quote:
Obviously you've never owned a business or you would know the answer to your own question: Dealers drive the pricing in Scott's - period.


Well...I think ebay to me is dictating the price of stamps..IMHO...Even here I have seen people put links to ebay sales as a guideline to what THEY believe is the going price for that stamp..So sad.

Robert
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Edited by wert - 03/13/2015 7:09 pm
Pillar Of The Community
United States
1179 Posts
Posted 03/13/2015   7:15 pm  Show Profile Bookmark this reply Add Hal to your friends list  Get a Link to this Reply
Hi Kevin,

go to PSE Experts website http://gradingmatters.com/ Scroll down and find "PSE NEWS" - PSE ON TV and view ".. one of their of our experts, STEVE.
Sit back and become enlightened on what PSE offer as "an expert." It's also archived on the SCF post, but I can't remember the post…(my short term "c.r.s.")
Enjoy,
Hal
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Pillar Of The Community
United States
1847 Posts
Posted 03/13/2015   7:17 pm  Show Profile Bookmark this reply Add cjpalermo1964 to your friends list  Get a Link to this Reply
For GB and Commonwealth issues, in the case of Stanley Gibbons, the SG catalog value appears to be the full retail price that SG wishes to charge at its 399 Strand retail store or its online store, with margin sufficient to support London rent, staff, and IT systems and a comfortable lifestyle for its staff and directors. Not surprisingly, many collectors feel that SG catalog values are wildly inaccurate. Yes, if you want a top-quality example and want to buy it over the counter across from the Savoy Hotel in London, the SG price may make sense. If not, an auction (live or online) represents market value more accurately. SG is somewhat unusual in having complete vertical integration; unlike most catalog publishers it is also a retailer and auctioneer, so its catalog values appear set to support those businesses.
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Pillar Of The Community
1849 Posts
Posted 03/13/2015   7:23 pm  Show Profile Bookmark this reply Add kevin504 to your friends list  Get a Link to this Reply
Hal.....I have seen that tape.
What are your concerns on this???
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Pillar Of The Community
United States
1179 Posts
Posted 03/13/2015   7:28 pm  Show Profile Bookmark this reply Add Hal to your friends list  Get a Link to this Reply
REVCOLLECTOR:
Hi Bart,
I understand your response to the question; I should not have posed the question. The PHILATELIC FOUNDATION is an excellent organization.
Best,
Hal
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Pillar Of The Community
United States
1179 Posts
Posted 03/13/2015   7:35 pm  Show Profile Bookmark this reply Add Hal to your friends list  Get a Link to this Reply
KEVIN504: Concerns -many, especially the flipant handling of someone else's material.
Hal
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Pillar Of The Community
United States
1179 Posts
Posted 03/13/2015   7:45 pm  Show Profile Bookmark this reply Add Hal to your friends list  Get a Link to this Reply
cjpalermo1964
Dan,
Your observations about S.G. are spot-on. One supports the other. However, one does have the ability to drive the other, when it felt necessary. The S.G. catalog is a vertical operation.
Hal
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