Coin Prices

"Buy low, sell high" is the mantra of capitalism. It's how the system works. Buying and selling coins for a living is no different.

I think most B&M coin dealers are just getting by and it's more of a labor of love.
If it wasn't for the precious metals play even more of them would be gone.

With the advent of the internet, sales, auctions and the selling on the forums along with anybody can set up a sales site with CC payment in a day or less. the LCS is becoming like the stamp hobby. very little chance to make a continuing profit. I was in one LCS in the metro Detroit area. They didn't carry flips, or 2x2's for sale due to the fact that most buy from the internet at better prices for larger quantities. So why tie up money in dust collecting inventory.
I know the ones in my area that I have been in. the selection of items to buy is smaller, and the shops have less clutter.
But the buying and selling of silver and gold keeps most of the paying the rent.

Welcome to the new world order of commerce!

Not to mention the State Quarters and dollar coin hoarders that don't understand why they aren't every going to be worth anything more than face value for circulated and uncirulated ones. or the rip offs of the proof and mint sets by the mint some are selling for 1/3 of what was paid for them. Just due to the numbers produced.

You always have the option of becoming a Dealer (good luck).

In the late 90's I switched over from a collector to dealer and even though I was able to purchase some nice coins, the overhead costs (outside the internet) ended up costing more then I could generate in sales. I also didn't like listening to the ***behind the table chatter*** of the dealers located next to me at one of the larger NY coin shows expressing how they "shafted" the people they were buying coins from, but that's for another CCF thread on "How to find a Honest Dealer".

Lots of reasons for your question. If you think about it, cars, boats, houses, coins, stamps and even Beanie Babies don't really have a set price. And in many instances the prices of those are depending on a sort of haggling system. You go to buy a car. The sticker price is $20,000. The salesperson says I can let you have it for $18,000. You say the best I can do is $16,500 and this goes on and on until maybe you buy it. Same with a house, boat, stamps, coins, etc. This means many objects are worth what you are willing to pay for them.
One coin dealer I know told me he puts prices on all his coins about 25% or more on all his coins. Then he tells all potential customers I'll give you that coin for 20% off. Most collectors know this full well and will say I'd want it for a lot less. He then drops to 25% off and now gets what he wanted anyway.
And remember that many dealers only have that one job so all the profits have to pay for all the things people that have a regular job use money for. Pay a mortgage, gas and water and electric bills. A phone bill, internet bill and of course clothing, food amd a car.
One of the biggest problems with any salesperson type of profession. Everything is based on the size of the profits.

not sure what you do for a living but if you think coin dealers are making out like bandits you should open a storefront. you'll find out real quick why dealers "buy low and sell high"

Fat Freddy- Starbucks works off a totally different concept. They are a service industry. You are buying 10 cents worth of coffee and $2.40 worth of indulgent semi affordable luxury. If they charged half as much, they would still be highly profitable.

Another way to think of it. If all of the sudden, a grocery store raised all prices by 25%, most people would look for a new store. If a coffee shop raised their prices 25%, most people would just buy it anyway. Starbucks has pushed this idea as far as possible and everyone else, like DD, just follows.