Question For Coin Dealers

I took in a bunch of common 40's and 50's wheaties to my dealer that were repeats and just stuff I didn't want.

2 cents a wheatie! What the heck is that about? I hear the going rate on ebay hovers around 6 cents. It was my first time actually selling a coin and I was a little shocked at how little he offered.

I will probably see those wheaties on his bid boards next week!
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That doesn't surprise me. If they are common 40's and 50's wheats then they may have a hard time selling them. And if they do sell them at let's say 5 or 10 cents each, their profit per coin is minimal. They would have to sell quite a few of these to make it worthwhile. At the same time, if they sell them on ebay, their profits are eaten away by listing fees and final value fees, as well as the time it takes to take the pictures and list the item. So again their profit on these, even if sold at the going rate of 6 cents each would be minimal. I have seen people selling bulk bags of wheaties on craigslist for as low as 3 cents/coin.

All dealers (any kind of merchandise) are out to make a buck. How much do you get when you trade in your car? Remember in college when you'd walked into the bookstore with your stack of texts that you paid $400 bucks for and tried to sell it back to them? No, you can't hate the dealer for trying to make money. Now, for the few bad apples who will lie or misrepresent -- that's a whole different thread.

All dealers (any kind of merchandise) are out to make a buck. How much do you get when you trade in your car? Remember in college when you'd walked into the bookstore with your stack of texts that you paid $400 bucks for and tried to sell it back to them? No, you can't hate the dealer for trying to make money.
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I know it amazes me that some people dont grasp this concept. The dealers that have storefronts have rent, electricity, water, taxes etc to pay that all take money away from their bottom line. On top of that it takes time for them to process the buys they make, to grade them, to price them out and sometimes these coins will sit for months or years unsold.

If you're not happy with what a dealer wanted to pay, sell them on ebay but keep in mind that selling on ebay involves alot of time to take the pictures, write the descriptions, package them and ship them on top of the listing fees, final value fees and Paypal fees. When it's all said and done, sure you'll have more than what you would have gotten by selling to a dealer, but you have just had a small taste of what a dealer goes through to sell his merchandise.

I have been dealing in coins for about 5 years now. For most of those years, we sold on consignment only because of the low profit margin in common coins. I've been buying now for a while and, though I've made some mistakes, I haven't carried those mistakes to my customers.

Sometimes, a really good deal will come along and a dealer can make a sizeable profit while still offering good deals, but mostly the profit margin is in the 10% range. Still, I like the business and working with coins for a living.

It is important for a dealer to take the time to know what he/she is selling or buying. The key to making good money in coins is in the buying, not the selling. If you buy smart (not ripping people off) then there is money to be made. Usually this involves cherrypicking varieties and better dates. I don't have a problem doing this with other dealers, but I always offer very fair prices for collections that I buy. Normally, I don't purchase the collections. I sell them on consignment instead so that we both make money.

Coinhunter said:" Wow, it seems that I am the first dealer to post here and I am kind of afraid to. You guys hate us don't you?"

I dont hate coin dealers or other salespeople. You see, there's a demarcation line for me about "caveat emptor."

I remember once, my girlfriend said, "if you let me take advantage of you, I will." That seemed wrong at the time; until I remembered I'm responsible for my level of knowledge and behavior after a certain point.

I dont know if that's a very good analogy; I will say this: Hose me once, shame on you; hose me twice, shame on me.

Jim

quote:

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Coinhunter said:" Wow, it seems that I am the first dealer to post here and I am kind of afraid to. You guys hate us don't you?"

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That wasn't me who said that. I am not at the level yet to be a dealer, and right now I would classify myself as a hoarder. :)

How many dealers buy pallets or an large amount of coins from banks to search and build sets out them bank boxs of coins to get all coins all face value ? I been trying to that to get invoratry and build sets for resale on ebay.

Last monlth I bought over 12 boxs of half dollars and built 6 complete sets on half dollars from 64 thru 01. I will buy need 2002 thru 2007, 87, 70d rolls later to finish them. I did buy an roll of 1964 silver coins for 80 bucks last year. I been buying those he harris folders and filling them after I go thru those fedboxs from banks. I pay onley face value for coins from 65 thru 01 on coins. Reason 1964 coins are hard to find is why I pay over face.

Sets they onley have like 35 bucks face value aslong 6 to 9
bucks on folders . I am spending around that to build each set. I am trying to build an totol of 20 sets where I will not waste money buying an Overstock on 2002 thru 2007, 87 , 70 solid date rolls to coins. Junk silver from 65 thru 69 I will sell later on ebay to buy the the other rolls I need finish them.

Reason I started building sets was I felt like I wasting time just trying to find silver coins like an lot peaple do. Silver is tough sometimes. I started saving all 82 and 83 au/bu coins to build rolls for ebay . Reason they pay over face on them. The rest of the years it not worth the trouble to build rolls since they sell for around face value on ebay. I just toss them back into bank machices like bu/au 71 thru 2000 coins I find. They are worthless after ebay fees and paypal fees is why.

I also do on same penny folders on building 1941 thru 2008 penny folders. I also save all 59 thru 81 copper pennys as junk copper rolls. I was going sell completed sets aslong with 25 dollar junk copper boxs and 2008 , 2007 bu fedboxs full of brand new pennys I get from banks later. I may build another 50 sets to use up my bu and used 41 thru 58 rolls I have in stock.

I not an dealer but I would like to make money to buy stuff to finish my collection on coins is why I been doing this. Its expensive as you know. Last monlth I went thru over 10k on bank boxs of coins trying to find stuff. I just keep dumping in banks and buy more at another bank. I keep using the the same money over and over. I may sell my classic car where I can try buy 40 boxs of half dollars all at same time to search and dump the the remains of them outside the state of texas into new orleans or oklihoma city or outside the cwi 69 federal banking system in soulth texas where I dont get them back if I reordor another batch. It cost maybe 200 bucks worth fuel to dump them outside of soulth texas or outside the cwi 69 banking system . I could cause an shortage of half dollars in soulth texas federal banks if did it to much.

Have many dealers done stuff like this on buying large amounts of coins from Loomis , brinks, banks, armored trucking companys . I am just starting out and am I new at this and wanted to see if if I could make some money doing it. I love coin roll hunting still and was thinking about this for long time to get tons cool coins at face value If I can for resale to trader material to build my dream collection of coins.

Chevrolet454ss

most dealer over grade the coins for more money.on silver and gold they pay 10 to 20 % back just if the price of them go down.1 I know of is hording date.he did that with the 1909 ind and the vdb when they where only 5 dollar each now they a around 9,99 to 11.00 each