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 Replies: 9 / Views: 4,736 |
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Valued Member
United States
374 Posts |
Hey now,
I was at a coin show today. Two of the dealers I bought from were giving me prices out the grey sheet, around the Bid price, more or less.
Is there something I am missing? I thought these were the low end prices.
I had a copy on me as well to check.
thanks!
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Pillar of the Community
United States
623 Posts |
Dealers will buy back 20-25% of greysheet. It all just depends on the coin. One they may buy 25% back and another they may pay double bid.
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Valued Member
 United States
374 Posts |
Russ:
you mean they will buy back 25% *off* the grey sheet bid price? What do you mean by "buy back"?
So for example a grey sheet price lists $100 in XF condition and the ask is $110.
The dealer may have bought it from a customer for $75? Therefore they can sell it for $100 and still make a profit.
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Bedrock of the Community
United States
11951 Posts |
Greysheet is for dealer to dealer prices. Many dealers do not hold on to the coins that come into their coin shops. They will sell to other dealers.
And Russ is correct, most dealers pay back of greysheet for coins that come into their shop. 20% to 35% is not uncommon.
Buying %25 back on $100 coins would be $75. There is a lot of cost to running a business, this is what they have to do, to stay in business.
Edited by GR58
09/08/2013 12:47 pm
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Valued Member
United States
374 Posts |
GR58:
Thanks for the insight. So what I am reading into your post is that if, as a customer, you are getting the bid grey sheet price that is not too bad. However there is a good chance that the dealer may have got the coin for significantly lower from a walk-incustomer selling to them. The 'blue book' seem to be lower the the grey sheet.
When the dealers sell to each other are they actually paying the grey sheet prices themselves? Or have has the grey sheet become more like retail?
My other thought was that they may have over-graded the coins and then gave the greysheet price for a high grade.
Is it then possible (I guess anything is possible) to negotiate under the grey sheet prices?
I did not really negotiate much lower at this show, but I also did not spend big bucks, so if I did save another 10-15%, it would not have been much.
However, this info would be good to know for the future! It's like buying a car, where it is possible to negotiate below invoice, as there are dealer incentives, blah, blah, blah...
Edited by Bababooey
09/08/2013 12:51 pm
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Bedrock of the Community
United States
11951 Posts |
I think you are on the right track.
If a dealer bought a coin from a walk in customer, those might be the coins you can get at a better price.
There are a lot of factors.
- The particular coin (rare or common)
- The grade, if the coin is close to say
VF or XF. The dealer has to buy at VF.
this might make some room for a better deal
- Problems, if a coin comes in with tape of paint
on the coin, the dealer will buy back.
Acetone may or may not fix the problem.
If it does, the dealer may be able to deal
more on the coin.
These are just a couple example. The best way is to
develop a good relationship with a good dealer.
How do you do that
- Try to be professional in your conversation and dealing
- Don't always try to get a deal, there will be times when
you ask a price, when the dealer gives you a price. Just
buy at that price. If you come in enough .. and buy
enough, the dealer will start giving you deals.
- Then when you see coins in the displays that have been
there a while .. asks if he can do a better price.
What not to do
- Dealers don't like know it all type, and types that will argue on what a coin is or what the grade is. You can offer opinions, but it is easy to insult the dealer. This point is one of the hardest to learn.
If you want the good deals, you have to learn how to be a good customer.
So ... if you are getting below, at or near greysheet .. you are on track to getting good deals.
The best deal to get, is to get a good deal when buying a coin. I see more collectors sell coins for less than they paid for them, then the other way around.
There are collectors that say, they will never sell their coins, so it does not matter what they sell for. And that it does not mean as much if they pay a little to much.
Everyone should learn how to buy and sell coins so they know how the hobby really works.
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Pillar of the Community
United States
3486 Posts |
GR58 has written some great advice. Practically speaking, any dealer who shares his or her 'greysheet' so that you can see what dealers use is the kind of dealer that you want as a friend. I am always prepared to offer a 10 to 15 percent over asking price if the coin is decent and more if the coin is outstanding in some way. And then, if my coin is not quite up to snuff I'll take a much lower bid price. Bottom line, learn how the trade works. Respect those dealers who respect you. Over time, you will be pleased by the willingness that these dealers have to give you 'first dibs' on that special coin. I have gathered a precious few of them and I ALWAYS seek them out first. There is nothing better in this hobby that a dealer who will buy coins that he or she 'thinks' that you may be interested in. My favorite area is Barber dimes and I have one dealer who is on the lookout for me. Not just space fillers but XF and AU examples which DO NOT EXIST in high numbers. I'll pay whatever he asks because I know just how rarely they come to market. And if you are offered a coin around 'asking' price and the coin is nice, THAT is a good deal. Edited by matthewvincent
09/08/2013 1:32 pm
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Bedrock of the Community
13014 Posts |
Quote:
- Dealers don't like know it all type, and types that will argue on what a coin is or what the grade is. You can offer opinions, but it is easy to insult the dealer. This point is one of the hardest to learn. To me thats the biggest difference between buying in person and buying online. Online you can get away with that some pointing out auction histories, in person youre likely to just tick someone off. It doesn't mean you cant try and get a lower price you just have to be more polite. Questioning the grade generally isn't a great way to do it imo especially if you dont have a standing relationship there. |
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Valued Member
United States
374 Posts |
Thanks for all the advice, it is very helpful. It is good to learn how to the business works. It is probably not worth irritating someone over a couple of dollars, but you really don't want to "overpay" for that bigger ticket item. It can be a nice hobby if you can spend some cash, get some enjoyment out of it, but also know you can get a good bit of your money back if you want sell. In that sense it is different than buying a car, as the car depreciates while use it, and your essentially paying for this use. Whereas a carefully bought coin should retain its value, market fluctuations aside.
To argue over the grade seems pointless, as you're basically calling the seller a liar. I guess you could offer $$ for the grade you think it is without explanation, or just not buy from him. I've read before not to buy from someone with over-graded coins, and think this many tie into why. It is just difficult to judge the grade quickly if you are not as familiar with the series that you are buying.
Edited by Bababooey
09/08/2013 8:35 pm
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Bedrock of the Community
United States
19957 Posts |
Dealers like to pay 50% off CDN....like most businesses, the rule of thumb is you want to buy at half of what you think you can sell for. Doesn't always mean they'll hit that but it's a target. Generally, most dealers use CDN at the shows. It keeps things simple. My favorite guys will tell you bid/ask before they offer a price. I never debate price with them....it's considered an insult. If I don't agree with the price, I don't buy it and keep my trap shut. This goes along way toward building a relationship. Every once in a while these guys will throw me a nice bone.  IMO, CDN is the fair, wholesale price. The new retail price standards are the online marketplaces. |
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Replies: 9 / Views: 4,736 |
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Posted 09/08/2013 02:56 am
