Coin Community Family of Web Sites
Like us on Facebook! Subscribe to our Youtube Channel! Check out our Twitter! Check out our Pinterest!
Username:
Password:
Save Password
Forgot your Password?

Welcome Guest! Need help? Got a question? Inherit some coins?
Our coin forum is completely free! Register Now!

Is A 100% Profit For Coins Unrealistic?

 
Previous Page
 
To participate in the forum you must log in or register.
Author Previous Topic Topic Next Topic
Page: of 2
New Member
Australia
17 Posts
 Posted 12/30/2018  05:39 am  Show Profile   Bookmark this reply Add Coinaholic20 to your friends list Get a Link to this Reply
I used to sell on EBay, you just need to do the maths. Do you research and calculate what will be taken from you. Include PayPal fees as well. It's sad many people are shocked when they realised they didn't quite make a profit when they realise the fees, I am sure it has happened to all of us at some stage. They need to make their money too, it's all about doing your research, personally I only use EBay to buy now, it has it's purpose for me but not as a seller just a buyer
Pillar of the Community
United States
1339 Posts
 Posted 06/18/2019  03:10 am  Show Profile   Bookmark this reply Add jmkendall to your friends list Get a Link to this Reply
No...if you have an item that you paid x for, then sold it for x, then your profit equals 0.

If you have an item that you paid x for, then sold it for 2x then your profit equals 100, as you have doubled the value of your purchase.

Another way, profit is the percentage of initial value achieved. If you bought a coin for $100 and sold it for $100, then subracted your initial investment your profit is (100-100)= 0

In the same vein if that $100 dollar coin sold for $200 then subracting your initial investment of $100 leaves you with $100 which is 100 percent of your initial investment.

I may not be an accountant, but I do have a degree in mathamatics...
Forum Dad
Learn More...
United States
19951 Posts
 Posted 06/18/2019  11:09 am  Show Profile   Bookmark this reply Add bobby131313 to your friends list Get a Link to this Reply

Quote:
Another way, profit is the percentage of initial value achieved.


No, it's not, that's markup. Profit percentage is the percentage of the gross sale amount that is profit.

As stated before if you buy something for $100 and sell it for $200 you marked it up 100% and made a 50% gross profit. If you buy it for $100 and sell it for $130, that's a 30% markup and a 23.07% gross profit.

You can only have a 100% profit percentage if you have a zero cost of sale. If you buy something for $100 and sell it for $1,000 it's a 90% profit percentage and a 900% markup.

It's first day of school accounting.

https://www.patriotsoftware.com/acc...infographic/
Pillar of the Community
Canada
3022 Posts
 Posted 06/18/2019  11:55 am  Show Profile   Check Pacificoin's eBay Listings Bookmark this reply Add Pacificoin to your friends list Get a Link to this Reply
Being a coin Dealer ........" A tough way to make an easy living".
Being a coin Dealer on Ebay ........... " A tougher way to make an easier living"
Anyone who thinks they can make 100 per cent profit on coins is being totally
Unrealistic . Best way to be successful is to make sure that you KNOW how to
run a business , period . In the end all that matters is the bottom line , NET PROFIT
after all costs.
Pillar of the Community
United States
732 Posts
 Posted 06/18/2019  12:03 pm  Show Profile   Check Collects82's eBay Listings Bookmark this reply Add Collects82 to your friends list Get a Link to this Reply
My reading of the initial post is the seller wants a situation where he is selling at a minimum 2x to his cost.

I see a couple trend lines at work here. On the very low value stuff, like mentioned above, buying pennies for around face value and flipping them at a retail price of a few cents. Sure, this situation happens all the time and real money is tied to moving volumes of sales in a somewhat timely manner. As the product moves further into higher value collector pieces, those x's or % margins are going to erode as the real value of the margin becomes more substantial and the market dictates a smaller margin. On the far end there are famous coins like an 1804 dollar. There is no way a retailer is going to get that merchandise for 50% or less of market retail. Even if they got it for 80-90% of market value, their margin is a 6 figure payday and they go home feeling like a champ. Sometimes auction houses waive seller fees on the good stuff and just enjoy the rewards in the buyer fees and market themselves as the leading house that featured the rarity in their sale.

The question may be where do these two trend lines intersect? Different series have different supply and demand charts, but a lot of the time, I think even around $40-50 retail stuff is probably already giving way to % margins such that a minimum 2x to cost is becoming hard to accomplish. Morgan dollar sellers, ASE, bullion, etc can run some very tight margins with additional risk tied to metal prices; it's all about volume and speed of sale.

As a buyer, some of my best value finds have been stuff in the $50-$150 range they bought that morning and just wanted to unload for cash same day. These literally were being sold for a 0.25x; as in the guy just wanted lunch money for something above the value menu. These situations are VERY real threats as competition to ensuring 2x + margins.

The industry I work in does 5-20x all day long, but marketing costs are steep with hundreds of brands fighting for attention and brand / product valuations.

You have a better chance at meeting or exceeding your profit goals by flipping garage sale finds than focusing on coins, to be honest. This hobby has so many players already dealing in what are generally commodities that supply and demand dictates margins are slimmer.
My hoard of '82s is up to 159! 218 BC x 1, 118 BC x 3, 18 BC x 1, 82 x 1, 182 x 1, 282 x 2, 582 x 2, 682 x 1, 782 x 2, 882 x 1, 982 x 3, 1182 x 8, 1282 x 2, 1382 x 1, 1482 x 4, 1582 x 12, 1682 x 12, 1782 x 40, 1882 x 41, 1982 x 21
Edited by Collects82
06/18/2019 12:15 pm
Valued Member
United States
77 Posts
 Posted 06/18/2019  1:58 pm  Show Profile   Bookmark this reply Add HGK3 to your friends list Get a Link to this Reply
Actually, Bobby and JM, you're both correct. You're just conflating your terms.

Profit Margin is a measure of how much of your total revenue is profit.

Profit Percentage is the ratio of your total profits to your cost of goods.

They're looking at the same things just coming at them from opposite directions.

Buy a coin for 1 and sell it for 2. You made 1 in profit.

Compare the amount you made in profit to the cost of making it (1:1) and you get a 100% profit.

However, compare the the profit of 1 to the total amount you took in (revenue) of 2 (1:2) and you get your margin of 50%.

https://en.wikipedia.org/wiki/Profit_margin

Profit margin is a tool designed to analyze the risks a business faces in it's revenue stream. Grocery stores, for instance, have notoriously low profit margins, while other business, like jewelers, have a much higher profit margin. However, a downturn in the economy affects jewelers much more than grocers, so using profit margin as a general analysis tool is of limited value, especially in something like selling coins on Ebay.

Getting back to the OP's question about getting 100% profit on Ebay, that's too subjective a standard to use to make a decision.

You could buy 100 cents every day for $.01 and sell 100 cents every day at $.02 for 100% profit and still starve. The better analysis is a profit per hour standard. How much are you making per hour of your time spent doing it, making sure to include time spent finding, preparing, listing and shipping your coins?

If you're a hobbyist, $2 - $5 per hour might be enough to justify your effort since you're really just doing it for pocket change and to offset your crazy hobby.

But if you're intending to try to make serious money at it, you have to do that $$$ per hour analysis and find ways to make selling more efficient (and cut down on the hours) or move to higher end coins where the $$$ are bigger.

Forum Dad
Learn More...
United States
19951 Posts
 Posted 06/18/2019  3:23 pm  Show Profile   Bookmark this reply Add bobby131313 to your friends list Get a Link to this Reply

Quote:
Actually, Bobby and JM, you're both correct.


No, we're not. Business accounting is the same everywhere. We can't both be right. No matter how you spin it or what you call it, doubling your cost is a 50% profit. In NO business world is it 100% or any different.
Pillar of the Community
United States
4002 Posts
 Posted 06/18/2019  3:50 pm  Show Profile   Bookmark this reply Add fioti to your friends list Get a Link to this Reply
As recent as last fall, I was selling 5c'82 & '83 P&D sets.

14.99 w/shipping inc. was a nice profit, for 20c in.
Valued Member
United States
77 Posts
 Posted 06/18/2019  4:23 pm  Show Profile   Bookmark this reply Add HGK3 to your friends list Get a Link to this Reply
Respectfully, you can both be right because you're talking about 2 different things.

What you're describing is profit margin (or more precisely profit margin ratio, since all percentages are ratios). That's total profits (in this case 1) divided by revenue (in this case 2) x 100. Your profit margin is 50% because half of everything you made was profit.

What JM was describing was profit. Cost was 1, profit was 1. 1/1 x 100 is 100%. His profit was equal to 100% of his costs.

Same variables in both instances but different relationships are expressed.

Here's another link with to go along with the Wikipedia link defining profit margin ratio:

http://financial-dictionary.thefree...argins+ratio

In any event, I don't mean to hijack the thread nor do I mean to debate needlessly the arcane aspects of accounting or business economics, so I'll let this one go after this.
Forum Dad
Learn More...
United States
19951 Posts
 Posted 06/18/2019  4:50 pm  Show Profile   Bookmark this reply Add bobby131313 to your friends list Get a Link to this Reply
I give up.
Valued Member
United States
449 Posts
 Posted 06/18/2019  8:36 pm  Show Profile   Bookmark this reply Add joecoin to your friends list Get a Link to this Reply

Quote:
I give up.


Took you long enough.
Valued Member
United States
449 Posts
 Posted 06/18/2019  8:37 pm  Show Profile   Bookmark this reply Add joecoin to your friends list Get a Link to this Reply

Quote:
I used to sell on EBay, ... personally I only use EBay to buy now, it has it's purpose for me but not as a seller just a buyer


So, where do you do your selling now?
Page: of 2 Previous Topic Topic Next Topic  
 
To participate in the forum you must log in or register.

Coin Community Member eBay Sales

Certified Coins   Certified VAMs   Certified Errors  




Disclaimer: While a tremendous amount of effort goes into ensuring the accuracy of the information contained in this site, Coin Community assumes no liability for errors. Copyright 2005 - 2019 Coin Community Family- all rights reserved worldwide. Use of any images or content on this website without prior written permission of Coin Community or the original lender is strictly prohibited.
Contact Us  |  Advertise Here  |  Privacy Policy / Terms of Use

Coin Community Forum © 2005 - 2019 Coin Community Forums
It took 1.12 seconds to rattle this change. Powered By: Snitz Forums 2000 Version 3.4.05