| Author |
 Replies: 13 / Views: 1,465 |
|
|
Bedrock of the Community
 United States
18664 Posts |
since most collectors do not have access to dealer pricing for coins, is there a general percentage one can use to get close to what a dealer would be willing to pay in relationship to retail...30%,40%,50% or ?
it doesn't need to be exact just a rough estimate what dealers need to buy at in order to make a profit.
|
|
|
|
Bedrock of the Community
United States
11951 Posts |
IMO That depends on which coin(s) you are talking about. Modern common coins would be pretty low. I have seen people get coins from the bank or change, and come into coin shops wanting to get RedBook price. For example ..a 1974 half dollar books at $2.00, dealers will only pay face .. And not really want to buy them. Now let's take a 1932D Washington quarter in XF. RedBook $300 A dealer might only pay between $125 to $150 Good reason to never pay retail Again each coin ..... And each dealer will be different. |
|
New Member
United States
25 Posts |
On average I have seen them willing to buy for 20-30% of Red Book. Really low in my eyes, I understand needing to make a living/profit but sometimes it is extreme. |
|
Bedrock of the Community
13014 Posts |
As a general statement it seems to generally be a lot less than you would think
|
|
Pillar of the Community
United States
2850 Posts |
I have some 1971-S halves I've been needing to get rid of. I noticed at my LCS they were selling them for $9.00 a piece so I asked what he'd give me and he said $1.00 - $1.25 for each one. RedBook lists them at $4 a piece so he's selling them at over double RedBook price, but only offers 20-30% of the RedBook price. |
|
Pillar of the Community
United States
3229 Posts |
I think dealers try to buy at 50-65% of "graysheet". And then sell at or slightly above graysheet...some sell at RedBook. I do not think RedBook is the price guide that most dealers use. RedBook is great and invaluable in other ways. |
|
Pillar of the Community
United States
4416 Posts |
In all my years of buying coins at shows, many of which had literally hundreds of dealers in attendance, I've yet to see any predominant buying pattern. There are too many variables. On admittedly rare occasions, some dealers will sell an item for less than they paid; this, simply to sustain cash flow with dormant stock, because they erred when buying an item or for a variety of other reasons. That said, key coins and condition-rare coins tend to sell faster, and the bigger dealers may pay above gray sheet bid for such coins (e.g. - 1915-S Buffalo in XF-40+, FH and problem-free).
Buying practices/styles differ from one dealer to another. Personally, I love to pick cherries from the high volume dealers who work on a low profit margin. It's all about sustaining a speedy and positive cash flow, and they really don't have the time or any inclination to research their "products."
|
|
Pillar of the Community
United States
4897 Posts |
Quote:
Personally, I love to pick cherries from the high volume dealers who work on a low profit margin. It's all about sustaining a speedy and positive cash flow, and they really don't have the time or any inclination to research their "products." This.  |
|
Pillar of the Community
United States
9792 Posts |
Simply put premium coins bring premium prices when selling. If not, then you are showing to the wrong dealer!
Most pay 10-20% back of bid to another dealer or a knowlegable seller, Many try to buy for as little as possible.
That has been my experience.
"Buy the Book Before You Buy the Coin" - Aaron R. Feldman - "And read it" - Me 2013! ANA Life Member #3288 in good standing since 1981, ANS, Early American Coppers Member (EAC), Colonial Coin Collectors Club member (C4), Conder Token Collector Club member (CTCC), Civil War Token Society (CWTS) member, Liberty Seated Collectors Club (LSCC) & Numismatic Bibliomania Society member (NBS), USMex, Member in good standing, 2¢ variety collector. See my want page: http://goccf.com/t/140440 |
|
Valued Member
United States
237 Posts |
I tend to see a trend where some dealers have near-market prices and thus buy at low prices, while some dealers have high prices but buy at near-market prices. Just be careful of the people who buy low and/or sell high.
Low-value coins will generally have a more substantial percent markdown than high value ones, since it's not worth the time trying to make less than a certain amount of money. A $10 coin only getting a $5 offer is fairly sensible, but a $200 coin getting a $100 offer is a real rip-off.
|
|
Pillar of the Community
United States
1812 Posts |
Quote:
since most collectors do not have access to dealer pricing for coins, is there a general percentage one can use to get close to what a dealer would be willing to pay in relationship to retail...30%,40%,50% or ?
Back in the days when I had my dealer hat on, many dealers (self included) would offer 80% of gray/blue/green sheet bid. Collectors can subscribe to these guides at http://www.graysheet.com and have a general idea of what to expect when selling. |
|
Pillar of the Community
United States
3453 Posts |
At nearly all of the shows I have attended, the dealers will consult the graysheet to make a decision if they do not have a price in mind. The percentage of the graysheet pricing depends on many things discussed above including whether or not they are annoyed that day.
|
|
Pillar of the Community
United States
1448 Posts |
Personally, I think that when it comes to selling the best bet is to sell complete sets so they can't lowball on each coin. Some coins might be nicer to sell off individually, but you'll be surprised how much people pay for a set that is complete. Even though the hobby is so much fun when you build a set on your own, people with the $ like to have the whole thing done in one buy.
|
|
Pillar of the Community
1028 Posts |
The appropriate amount for a dealer to charge for a coin should be between greysheet ask and retail price guide value. That's the real "retail", the price guide retail has always been high, though some sellers will attempt to get that.
Now they should probably be paying about 60% of what they are selling at to give a proper margin. On very expensive coins, they will pay a higher percentage and on cheaper coins, if they even want them, they will pay lower.
If they have a $5 coin, what is really the point of paying $3 for it. Maybe they'll take it off your hands for $1, but that's it. If you have some slabed high grade key date worth $10000, they know they don't need to make $4000 on it, though if they are shady and you unknowledgable, they may try that or even lower. A coin like that, they may purchase for $7500. The line for over/under 60% is right around coins worth a few hundred dollars.
What I find funny is that the greedy sellers who try to sell at full-on book retail or higher usually are the same guys who low-ball to the ground when purchasing. I suppose they need those margins because the only customers they have left are not real coin collectors.
|
| |
Replies: 13 / Views: 1,465 |
|
Posted 09/06/2013 4:38 pm
