This is How The Stamp Trade Works
Philatelic Expert Lets You into his Selling Secrets so you can benefit from a totally different (and New) Selling Experience
1 ►If You want to learn how the stamp trade works, please read on… When I was 15, I did. I wondered if there was some secret source of supply? So, I bought my 1st stamp mixture, (wholesale I thought), broke it into 50 smaller units, advertised it in Stamp Magazine ‘Classifieds’, and waited for the orders to roll in… I’m still waiting, 51 years later !...
✗ ✗ ✗ Wrong Offer Wrong Price Wrong Place
✔ H
(naïve seller) = me but I was only 15 at the time!
About The Author ► Andrew found his Father’s stamps at the age of 10. A year later at Senior School he immediately joined the School Stamp Club. He ‘specialised’(!) in British, but soon was interested in Queen Victoria which he could not afford. The 2nd to last boy wearing short trousers in his school year, he religiously bought Post Office New Issues on Tuesdays with his pocket money. He soon found that he enjoyed swapping / trading stamps as much as collecting them. Aged 19, eschewing University he quickly found a philatelic career in London, leading to creating his own companies in stamps. Andrew has authored many internationally published Stamp ‘Tips’ articles, appearing on Local Radio and National TV promoting Philately with Alan Titchmarsh. Andrew’s area of expertise is unusual – in so far as his grounding in collecting and wide philatelic knowledge has given him a deep understanding of Philately. He has studied Philately for the past 51 years, in combination with Commerce and Marketing Expertise, enabling him to create synergies in ‘lifetime’ interlinked Stamp Selling Systems, selling unit-priced stamps through to handling collections & Rarities up to £700,000 each. Today Andrew is fortunate to be co-owner with his Wife, of Universal Philatelic Auctions (aka UPA) – the Largest No Buyer’s Premium Reducing-estimate System Stamp Auction in the World, creating records selling stamps to 2,261 different bidders from 54 different countries ‘in his international auctions. Andrew stopped collecting stamps aged 18 reasoning that his enjoyment of stamps would be in handling them and selling them… He loves working in stamps and looks forward to each philatelic day
2 ► Three years later, attending my first public stamp auctions I wondered how some bidders seemed to buy everything, paying the highest price? It didn’t occur to me that they were probably Auction Bidding Agents, paid by absent (dealer) bidders to represent them. I wondered why two collectors sitting side by side muttered to each other “he’s a dealer” as if that justified him paying the highest price… …but did it really? What was the real reason? How could a Dealer pay a higher price than a Collector? It doesn’t make sense, does it? Collectors are customers. Customers usually pay the highest price, unless… for a Collector, this was…
Wrong Presentation✗ Wrong Place ✗ ✗ therefore Wrong Price
3 ► Fast-forward 48 years later to a British Empire collection, lot #1 in an International Stamp Auction – Estimated at £3,000, but we were the highest bidder at £21,000 – YES – some 7×higher. Including Buyer’s Premium in the extraordinary sum of £4,788 we actually paid GBP£25,788= upon a £3,000 estimate… however, we broke it down into sets, singles, mini-collections etc. We made a profit. Some might say it found its price. Others may say:
✗ ✗ Wrong Estimate Wrong Presentation Wrong Structure✗ Wrong Protection of Price ✗
– Lucky for the seller that 2 well-heeled bidders saw the potential value that day or it could have been given away… the seller could easily have lost out couldn’t he? or she?
So, by un-peeling the layers of obfuscation, hopefully we can all agree:
The Secret is Simple – it’s ALL ABOUT : TIMING Plus the 3 Philatelic ‘P’s – Presentation ✔ place ✔and Price ✔
4 ►Understanding the problem… I always remember the car trade had their own little ‘bible’ – Glass’s Guide. I’ve no idea, I’ve not even looked – in this internet-dominated world, it may even have disappeared. Well, there was an insider Stamp Trade publication for Stamp Dealers called “The Stamp Wholesaler”. There was nothing that special about it – and you would not have learnt much or found massively reduced prices by subscribing then – BUT – it was a forum, a paper focal point, a last ‘bastion’ in this on-line transparent world that we inhabit… whereby dealers (and auctioneers) can try and communicate with each other. I published my own articles there…
More recently in print, I discussed the outcome of my 10 years’ simple research, asking dealers and auctioneers ‘what is your biggest problem?’
To a man, (why are we almost all men), they replied – “my biggest problem is stock, if I can get more of the right stock I can sell it easily”
Strange thawt,wnwo.ablloabdoyutesvtaemr me the same question back – because my answer would have been entirely different (and I don’t treat it as a problem) – I seek to satisfy more collector clients than any other stamp auction
This is the reason why my company has such massive advertising. This is the reason why we spend up to 8% of turnover – up to £200,000 per annum in marketing costs. (Most dealers don’t even sell £200K per annum). 5
►Why
is that? Because, as the world revolved the Stamp Market, imperceptibly Changed, and incrementally – Massively
So, although few will tell you this, it’s clearly evident that the problem for most Sellers of Stamps today is no longer absent stock – but absent collectors in the place they choose to sell their stamps in. Simply put, other Dealers, Auctions, Stamp Fairs have not invested in marketing to have a strong Customer-core. To be fair, this is not true of all – but it is true of most – so that a former competitor had 800 bidders in a recent auction. In my most recent 18,933 lot UPA 80th Auction we had 1,893 different bidders from 51 different countries, 95% of whom were Collectors. Some other well-advertised auctions only have 200 bidders (a high percentage of whom are dealers – so that, essentially they are Dealerdominated auctions) – so that when you sell through them – you’re paying up to 18% (including VAT) seller’s commission and the buyer is paying up to 25% and more in Buyer’s Premium, credit card fees, on-line bidding fee, delivery and insurance etc… AND all of that so that your stamps may be sold, wait for it – TO DEALERS (and some collectors), but Dealers, that naturally must make a profit to survive…
6 ►Now, let’s examine the cost implications – Example: Your stamp collection sells in public auction for £800. Upon a 25% buyer’s premium, the dealer pays £1,000 and it could be more. He breaks it into £2,000+ selling price (much lower and he’ll go out of business). The auction charges you a seller’s commission of up to 18% (VAT included) upon the £800 sale price. This is GBP£144. Therefore you receive approaching £656 – which is approximately 33% of the dealer’s £2,000+/- retail selling price - BUT… now that we have identified the problem…
Isn’t the Solution Staring us Right in The Face ?
7 ►Why Pay an Auction to Sell to Dealers: Sell to Collectors instead? In our example with buyer’s premium, sellers commission, lotting fees, extra credit card charges, VAT and even insurance - you’re already being charged in different ways up to 40% of the selling price to sell, possibly or probably, to the wrong person.
Why not direct that 40% cost you’re paying to sell to Collectors instead? Sounds good, so why hasn’t this been done before ?
8 ►Truth is, it Has been done before… Sometimes the ‘old’ ways are the best ways aren’t they? But in today’s enthusiasm to obscure the obvious so that money may be taken, almost surreptitiously, in numerous different ways, (without us apparently noticing until we see the cheque in our pocket) – the transparent ‘seller pays’ has been deliberately ‘obscured’ – so much so that, amazingly, the latest 2017 European Auction Selling Legislation just introduced – now requires auctions that charge ‘buyer’s premiums’ to warn the buyer in advance. Just imagine going into the petrol station, and being warned that the price you’re paying to put fuel in you tank is not the real price, you have to pay a premium! Obviously, there would be an uproar…
9 ►How can you cut out the middleman and sell to Collectors instead? Well, I can think of two ways. 1). DIY - Do It Yourself selling on ebay. That may be fine for lower grade material – but, would you risk auctioning relatively unprotected rare material on ebay ? We don’t and we’re professionals, so we should know what we’re doing. Or 2). Cut out the extra middle-man. Use my company UPA, which reaches collectors instead. Here’s how it works: Continuing from our previous Example:
The auction sold your stamps to a dealer for £1,000 – but You received circa £656
UPA sells them to collectors for you for up to £2,000 – even after 40% commission you receive up to £1,200. Up to £544 more. Now that’s amazing, isn’t it?
10► Sounds Good Andrew, but Can You ‘Deliver’? Obviously, nothing is as simple as that, and as we auction stamps to collectors some collections may ‘break’ to the example £2,000+/- but the stamps may be sold for more or less – especially as we reserve all lots at 20% below, (Estimate £2,000 = £1,600 reserve) and not everything sells first or even 2nd time so prices may come down… Naturally, it’s not that straightforward for a dealer either – he may sell at a discount to ‘move’ stock OR, like many dealers he may be sitting on the same unsold stamps, that you see time and time again, in dealer’s stocks years later and still at the same unattractive prices… So, I think it is more reasonable for you to expect up to 36% to 50% more, indirectly or directly via my Collector’s Secret Weapon: Universal Philatelic Auctions, which moves material more quickly, by incrementally reducing estimate (and reserve) price in a structured selling system…
11 ► Q. ❱ What is the Collector’s ‘Secret Weapon’?
A.❱ It’s called the Unique
UPA Reducing Estimate System...
This is a rather long explanation, I don’t want to bore you, but 20 years ago, when my wife and I set up Universal Philatelic Auctions I detected that the stamp trade’s biggest problem then was not what sold – but what didn’t sell… So, because I didn’t want to try to keep on offering the same either unsaleable or overpriced stock I created the unique UPA Reducing Estimate (and reserve) Selling System. Simply put, if a lot doesn’t sell in the 1st auction we reduce the estimate (and reserve) by 11% and unlike other dealers and auctions WE TELL YOU – ‘US’ = once unsold. If unsold after the following auction we reduce by a further 12% and WE TELL YOU ‘US2’, if unsold after a 3rd UPA auction we reduce by a further 13% and WE TELL YOU ‘US3’ and so on till the lot finds its price, is sold or virtually given away...
12 ► Any Scientist will tell you that combinations of ingredients can produce powerful results. So we created the unique combination of my UPA Reducing Estimate System, married (in stone), with UPA’S fair ‘NO BUYER’S Premium’ policy, PLUS each lot carries my total ‘no quibble’ guarantee – this formula is the reason why within the span of 4 auctions (one year)… 90%95% of lots broken from a collection have sold.
This Unique Philatelic Selling System Formula is the reason why we are the largest stamp auction in the UK today with more than 2,250 different regular bidders.
In Hindsight Dealers warned me 20 years ago that my idea wouldn’t work. 20 years later I think I’ve proven that it does. (Reader: Please Request a complimentary UPA catalogue – using the contact details further below)
13 ► OK, Cut to the Chase Andrew, what’s the offer? All of my Selling Systems are based upon selling to Collectors Globally, so that 95% of stamps sold by UPA are sold directly to Collectors. If you wish to benefit by up to 50% or more, depending upon your circumstance and type of material, by cutting out the middleman – then this offer may be for you. Generally ‘time’ is the enemy in our lives, and for most dealers not being able to sell stock. Now is the time to let ‘time’ do the ‘heavy-lifting’ and consider making ‘time’ work for you, so that at UPA you can make time your friend.
14 ►AND the SMALL PRINT? Some lots are too small in value for us to offer this system. Other lots may not be suited to selling in this manner (e.g. surplus mint British decimal stamps best used for postage) – especially if the market is heavily compromised by stock overhang in specific areas. Some Collectors will not wish to use time and systems to leverage price, others will want to agree a specific price and know that they are paid precisely this amount. No client is treated like a number and no client is forced like a square peg into a round hole.
15 ► OK, What Do I Do Next? a). You contact UPA to discuss with Andrew or a highly-qualified Auction Valuer/describer what you have to dispose of and your options bearing in mind your specific interests / requirements b). If you wish, get a 2nd opinion, but investigate what type of auction / dealer you are dealing with. Is it a Dealer’s auction with relatively few collectors? Can you see where / how the Dealer sells? If you can’t easily see any pricelists or high quality selling catalogues – that Dealer may sell your stamps to other dealers… c). Finally you ask U P A to collect your stamps, insure in transit for an estimated replacement retail value…
16 ► What Happens then?a member of my Team telephones/e-mails you to confirm safe receipt. ‘Overnight’ valuations, unless simple, are rare. Valuing stamp collections that have taken tens of years to create takes time. Depending upon your priorities / timescale I, or an experienced member of my Team will contact you to discuss your requirements and the options available to you for the sale of your collection. Provided only that you feel well-informed and comfortable do we agree strategy
17 ►How Strong is the Stamp and Cover Market? Everybody knows that the strongest areas are GB and British Empire. Postindependence / QEII material sells but if hinged at considerable discount. Mint hinged material pre 1952 is regarded as the industry ‘norm’ and therefore desirable – but genuine never-hinged commands a premium. Europe sells but at reduced levels, Americas is good, as generally is Asia but the ‘heat’ has come off China which is still good – and Russia which can still be good. East Europe is weaker. Overall, Rarities throughout can command their own price levels and real Postal History has good demand.
18 ►What Should I Do Next? Discuss your collection with U P A. Contact Andrew or an experienced member of his Team now…
19 ►Guarantee: I want You to be absolutely Sure So If You’re not sure we’ll transport and return your stamps for FREE up to £200 in actual shipping cost at our expense. It sounds generous (and it is), but it’s far less than the cost of driving 100+ miles each way and 3 to 6 hours in your home valuing your stamps
20 ► My Double Cast Iron Guarantee: We can do a better job valuing your stamps in our office than in your home. If you don’t agree I’ll pay you an extra £50 for you to pay somebody trusted to open the boxes and put your albums back, in the same place, on the shelf they came from.
21 ►Act NOW: Contact Andrew or an experienced member of his Team using the on-line selling form at our website, by fax, telephone or by mail. We’ll work harder for you not to regret the decision to sell all or part of your collection…