Problem At The Coin Shop

I understand what you are all saying about making a profit but. When I was in a different shop to day I saw a coin of same year and mint mark as the one I was try to sell accept it was on the short side of EF-40. My Coin is easily AU-50 if not slightly higher. He offered to sell it to me for 25$. Now If I had sold my coin to the other guy I would have gotten 12.50 for a nicer coin. Assuming he sold my coin at $25. Like the EF I saw, He'd be doubling his money. Now what I'm saying is that seems a little excessive. I really have no problem with him making ten to fifteen percent even twenty, but two hundred percent return on investment. Seems high to me. I think that 35-40 dollars for both would have been a fair trade because like everyone has pointed out it is a business and they have to make money. Just a thought.

Coinrus,

You have hit a point here to an extent. You just explained why I only go to two dealers in the area. That being what they charge.

Gonna tell you though you're not going to see them move too much on what they'll pay.

I started collecting nearly 40 years ago. Stopped for a long time and really got back into it about 15 years ago.

Went to one of the two dealers locally at that time. I paid full retail. He sold me nice coins and taught me a lot and he made money. Still good friends to this day but now I get better prices.

Before I started working at the other shop he needed some fairly common proof sets. I had spares so I sold him a few. He paid me $2 under bid which was way under retail.
I LOST money on those sets but sold them as a friend helping a friend. The knowledge he gave me over the years was worth it.

As I grew to know this dealer and learn more about coins I got better deals. Why? because I took the time to get to know him. He knew what I liked and would call me if a certain coin came in.
Same with the guy I work with. He'd see a particular coin and email me.
Layaway was never a problem. I gained their trust and respect. This did NOT happen over night believe me.

Still, IF I sell to them I won't get much more than the next guy on a common coin. That's the business part. I WOULD do better in trade.

It's a long process but one that I feel was well worth it. I now have two dealers as friends. Work in a shop and have gotten to know a lot of knowledgeable local collectors along the way.

The internet and forums are fine but the personal contact angle has a lot of advantages.

Take the time to "learn the ropes". You'll find it's time well spent.

First it's 100% not 200%. Second for more common coins markup is typically greater and it is higher for lower value coins than for the higher ones. While I would agree 100% is excessive 50% would not surprise me at all. Third at $25 he is probably charging more or the same than the first dealer would have for your AU.



Sounds reasonable to me, now what would he charg if he allowed people to pick? It would be higher than $15 right? And what would he charge if he went to the trouble of putting them in holders , cataloging them, pricing them, and selling them individually to collectors? Even more than what he would sell them for at a "you pick" price from the bucket. I could see $15 no pick, $17 pick, and $19 packaged. That would be a 25% markup, 41%, and 58% respectively. And that higher markup for the picked and packaged higher grade coins to some extent makes up for the lower grade coins that will have to be eventually be sold off in bulk at a lower rate or possibly even cost.

Coin stores, hobby stores, grocery stores and yes even auto dealers have to make large profits to pay for utilities, rent, food for the family, Martinis for lunch, alimony and child support and the worse yet, GASOLINE for their cars. All this profit comes from buying a product for as little as possible and selling it for as high as possible.
The next time you go to a coin shop, look carefully at the propriator. If he has that look of having 3 ex-wives wanting alimony, guess what you'll pay for his coins?

For starters Just Carl. Man you're killing me. What a way to put it.

Now reality again. A guy stops in today with a 1926-S Peace dollar. Well worn many an F12.
I know some of my bosses buy prices without consulting him so I offer $10.

Guy is SERIOUSLY offended. Pulls a piece of paper out of his wallet and informs me it's worth $45. Okay, so I ask him what book he got this from.
His reply "some magazine". I ask "what magazine?"

He doesn't know but the prices STARTED at $45. All right - this is a waste of my time but we're not busy and I get paid by the hour.
He INSISTS this is a $45 coin. Well, look in any price guide - it's not EVEN close to $45 at retail.

At $13/ounce that coin is worth just over $10 so it's a more than fair offer. PERIOD. Common date and well worn. A few weeks ago it would have been a $12 offer and more "in line" with book prices. Of course not the $45 value - what WAS that magazine?

So I tell him to keep it. No he wants to haggle. After all he read it in a magazine. Well, I'm not gonna budge.
So he ends up keeping the coin. I told him if he got an offer of $12 to take it.
Don't mean to sound cruel folks but that coin would have ended up with 100s of others and might have someday be sold at $12.

Scary thing is he had a few 90% halves, quarters and dimes that I offered him 8x face. THOSE he sold.

This is how it works. NOW had then been a nice BU coin I would have bothered the boss. THEN he may have gotten more but unslabbed, lower grade, common coin no dice.

onejinx

Good question and I'd have to honestly say in most cases no I wouldn't.
Mainly because it would most likely be a key coin in MY collection and would be tough to replace.
He actually called me in the past when I didn't work for him looking for a Small Motto Two Cene piece and I turned him down. He knows how I am about my "babies".

Now, were it a proof set, for example, no problem. I'd just give it to him now. He could replace it later. He makes his profit and I lose nothing.

I mentioned in another post I did sell a few sets to the other local dealer at a loss. Well, the sets aren't doing well anyway so I did him a favor. Still got about 10 of those darn sets left as it is.

As for me selling I'm sure he'd let me. There have been times in the past both before and since I've worked there when people have come in with stuff he's not particularly interested in but knew I might be.
At these times he has told me I could deal directly with the seller in HIS shop. Pretty darn nice of him actually.
As anyone knows or should know - offering to buy what a dealer turns down while in his shop is NOT a very smooth move.

This shop was on the smaller side. Do you think I might have more luck in a larger one.