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Valued Member
Canada
333 Posts |
Wow, I thought the margins would be higher for a brick & mortar operation.
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Pillar of the Community
Canada
695 Posts |
Those would be the margins while the coin is still available to purchase through the mint. Once it is sold out, dealers will usually increase the selling price and thus their margins will increase as well. The more popular the coin, the more that the dealers can raise their prices/margins.
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Rest in Peace
Canada
1360 Posts |
Though interesting, the statement "interesting to know how much money they do on our back" is really unfair. Though I am not in retail today - I once was. Does your 'interest' also include the amount the dealer pays for inventory storage, security, insurance, property tax, heating and hydro, let alone employees, and a personal salary. What you ask is NOT a fair question, and I'm sorry, but really is none of your business. You are (likely)not in business, and probably can't understand all the issues with selling a simple coin.
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Pillar of the Community
Canada
6768 Posts |
Yes, the statement is not really fair, but...
to be dealer / retailer - is your choise, the choice to be a customer of other "dealers" as Hydro, insurance etc. And together with all this you also need to earn the profit.
So, for the average customer - you "doing" the money on coins, while the CP or Mint boutiques do not.
Edited by Silveroid
02/15/2013 2:10 pm
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Pillar of the Community
Canada
3690 Posts |
Quote:
Those would be the margins while the coin is still available to purchase through the mint. Once it is sold out, dealers will usually increase the selling price and thus their margins will increase as well. The more popular the coin, the more that the dealers can raise their prices/margins. And equally obvious - when they sell below issue price on the many coins that do not sell out, their margins are even lower than those stated above.. |
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Pillar of the Community
Canada
695 Posts |
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Valued Member
 Canada
246 Posts |
I just want to apologize about my quote "doing money on our back". I know it's tough to be in business... I was curious about the margin and knowing that 15-20% are the average margin between the amount customer paid and the merchant is fair enough... It's not like buying t-shirts made in china with the a trademark like "Nike" with huge margin, even if it's on sale at 50% the still doing lots of margin... Thanks.
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Valued Member
Canada
430 Posts |
Primary source of dealers profits come from people bringing in coins/precious metals//jewelry, to supplement newly released mint products margins. No dealers just sell strictly newly issued RCM products. There is not much money to be made. I know some dealers that will sell newly issued mint products at about 5 to 10% discount from issue price. Edited by Coinsplus
02/16/2013 02:07 am
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Pillar of the Community
Canada
789 Posts |
Quote:
Primary source of dealers profits come from people bringing in coins/precious metals//jewelry, to supplement newly released mint products margins.
Relating to selling precious metals or jewellery to stores, unless you are sure what you are selling, it is better to get appraisal from multiple stores first, as mistake do happens. http://www.cbc.ca/news/canada/manit...s-iteam.html |
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Pillar of the Community
Canada
972 Posts |
 Mialonde1977 |
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Rest in Peace
Canada
1360 Posts |
shopaholic Thanks for that post/link - an interesting read for sure Especially since Gatewest was mentioned, and were only wrong 1 for 6 items.
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Pillar of the Community
Canada
789 Posts |
I think most of us only deal with GW for NCLT, so for that we are pretty safe  |
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Valued Member
United States
157 Posts |
@shopaholic, thanks for the info... interesting as mentioned.
Good to know.
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Valued Member
Canada
269 Posts |
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CCF Sponsor
Canada
149 Posts |
I have an online shop, and trust me I'm not making close to 20%. You have to be a direct distributor/dealer from the mint to get about 20% on the higher margin products. A lot of your neighborhood coin stores work on way lower margins because they by from a distributor not the RCM. You have to do a LOT and I mean a LOT of business to get to be a distributor (except if your in Quebec for some weird reason.) If your paying by VISA / Paypal they also loose 2-3%. Gold/Platinum coins usually have smaller margins. Like mentioned above we do have overhead expenses as well. Edited by LondonCoin
02/17/2013 4:06 pm
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Posted 02/15/2013 12:01 pm
