Question On Valuating And Buying Full Or Partial Sets

I have been dealing coins officially for over a year now, I just recently opened my own shop. I started out a few years ago almost exactly as you are describing, it can be done but be prepared to make a few mistakes..I did. One of my big mistakes was paying way too much for common circulated coins like these, JimmyJames is correct in that they are not as sought after as uncirculated, problem free coins. There is a market for them though if you can get them for a good price. I sell circulated, common date Indians, Buffalos and V nickels (usually in G to VG Condition) either in lots of ten or more on ebay, or in my shop and coin shows for between $1.00 and $1.75. Which means depending on condition, you'll want to pay between $.40 to $.75 each for them in order to make it worth your while. I don't bother putting them in 2x2's, Just dump them in a small box and let people sort through them and pick the one's they want. There is also a small market for full rolls of these coins between dealers looking to do the same thing. One of the problems is people have often paid way too much for their coins and don't really like to be told that their collection isn't worth what they thought it was. That can be the tricky part of the business. Good Luck!

So far so good on the feed back...awesome actually. Y'all are expressing in line with what my thoughts have been.

JimmyJames you nailed it here I think...




And I think\wonder if these kinds of coins, due to the common availability in this condition, are more for a beginner maybe . The person just getting started who might want to see what its like to collect a low budget set that has some history to it and doesn't look like the change in their pocket.

Many thanks so far for the replies. This is why I like this place!

Hopefully more join in.

As a dealer of many item over the past 30+ years, I will tell you a few things.

If a customer is looking to sell items, he may be a potential buyer in the future, so you don't want to low-ball him too badly. Ask them what they want for the coins, and never knee jerk a response, take a minute to contemplate the offer and look the coins over one more time and see what each one averages out to price wise. Can you make a profit on the amount your about to agree to? Remember, the seller is NOT your friend, and they may just take your money and you may never see them again as a potential customer.

I typically let them know up front that the coins I am about to purchase aren't necessarily the trend setting coins that are out there right now. These coins will probably sit in a case, box or vault for quite some time, and that you as a dealer will probably have to sell them at a discount in order to make a sale. I usually start my offer out somewhere near 50% of book if the quality of the coins is really good, or if the seller offers less than 50% of book I'd consider it a fair offer and only would lower it, if MOST of the coins were lower grade or quality. I would offer a weeeeee bit more if the coins were certified by a 3rd party grading service, since that cost is about 10.00 or more a coin plus shipping and insurance.

Yeah...you don't offer anyone a "bonus" for bringing you coins they intend to sell, full set, partial or otherwise. The easiest way to make room for a profit is pointing out some of the nicer coins, and end it with a statement like " and these coins here are going to be a hard sell for me, they are sub par, and people want quality coins". That lets the seller know he is not going to get full book, or even 3/4 book for coins. People now a days don't have the "mad money" they did 5-10 years ago. Now a days people are dumping stuff to either get rid of it, or to pay off a bill or whatever. The point is, they are selling their stuff. If they don't like your offer, you simply say, I'm sorry but that was the best I could do, and close the door. Tell them they have ebay, Pawn shops and other places they can go to and see if they can get more. Knowing when to say No thanks in business will keep you afloat longer and once you start saying NO THANKS, it will come easier over time. You have to think cost/profit on just about everything.

Low quality stuff, anything below XF (Extra Fine) is pretty much common stuff. People can get BAGS of these coins dirt cheap and all they do is fill an album and try to sell them for whatever they can get for it. I steer clear of low grade stuff because in the end, YOU will be stuck with it, or will have to start a sale on ebay in order to get any buyers, and probably start it at $0.01, at that.

For the money, starting out, it MAY pay better if you purchase a few higher quality coins and try selling those. It really depends on where you plan on selling these. If it is the ebay & Paypal route, your looking at losing 13 percent per coin to these services. Planning where and how to sell in advance, finding the cheapest and most reliable way to sell the coins is paramount. There are tons of ways to sell coins, it really depends on your style and the media that is around you.


I own a business, have a Tax ID, Business License and I own my own servers and have a decent business medium speed internet connection. I have the equipment in order to show the customer that what they are about to purchase is the real deal. I tell myself all the time, If I cannot sell myself on this coin as advertised, I probably will not be able to sell the coin to a customer. Customers want a decent coin at a decent price, and seem not too mind to pay just a little more for something if the reasons are explained to them in advance, or if you have to low ball them due to the coins being in sad shape or they aren't popular or high enough quality. Ethics, Honesty and Quality will push you in the right direction.

Collector-Corner.............




I am the 112 day newbie here..........


May I please ask if you even have one Eisenhower dollar in your Shoppe? Raw? Slab?

Same question for SBA?

Do you inventory Ancients? Foreign? Errors?

Without giving away all the proprietary info, what is a good ROI area for a newbie to look at with limited or very limited capital?

phankins..............





Good, I will try...... I would like to visit with you.

Dinner bell is sounding.

When it comes to computer *stuff* .....

I'm more dumber than a pile of smashed worms.

I still can't effectively use the Free Image Optimizer.

Later.

I have a handful of Ikes, yes. About the same for SBA's. All are proofs. Most are raw.

The website is undergoing a complete facelift. The conversion is done, but its going to take some time to get all the coins pictures taken, and then placed into the shopping cart. I have about 50 different RPM types we are doing right now, with about 5,000 RPM's in our inventory, if not more. We have about 1,000+ proof coins, ranging from 1962 to 2011. We have a lot of stuff. More comes in on a random basis. We also buy collections from locals.

Your ROI will depend on all the things I mentioned above. Return on Investment is calculated after the sale of the merchandise. Then take out what that particular merchandise cost you overall. Its not going to be the same for everything. I don't have an across the board figure for an average profit for sale, because I don't charge a flat percentage increae per item, since each item purchased costs a different price. I typically buy bargains, especially rolls of coins and sometimes bags. It depends on what we pull out of these bags and rolls. Its a long complicated process, but in a nutshell, I make every effort to show the customer what he is about to purchase. For that over the top service, I will charge a bit more than what the normal going price is. Again, it depends on how much I spent on say a roll or bag. Once the varieties are out of the bag and inventoried, then the normal coins are either rolled up and/or placed in a binder for sale. The ideal price point to make back in the "retail world" is close to 40%. In coins at least there seems to be a fluid motion when working with a customer.

BUT -In collectibles, there is one saying that sticks;
A Colletible is only as valuable as the collector is willing to pay for it.

MOST dealers will work with the Coin Dealer newsletter, (CDN). A copy can be bought online for less than 5.00 USD. The Greysheet will show some prices, mainly Morgan and Peace dollars, Rolls of coins in BU, Proof set and mint set prices and maybe a few other things. I am sure the CDN website can tell you which collectible is in which version they sell.

For dealers that want to make it, SOME light haggling might make the customer think he "won" and it will bring him back for more. price things at book value and you can always go down some.




I find it necessary to stay sort of focused on what I want to offer people. I won't scatter myself too thinly to offer things that I believe that I can't sell at the price point I would have to buy them at. I am currently focusing on RPMs, DDO's and DDR's - ALL copper varieties. Why? because those aren't being made anymore and the more stock we have in copper varieties, the longer we will have them, and the prices will eventually climb. proof coins are another area we focus on. We can get hundreds of sets pretty cheap, and it offers a pretty good range of coins for a cheap price - you can break these down and sell individually, and even find errors within them. Its important to focus on what you think your customers will want, not what you think they want. What you collect is not necessarily what will sell.

In the vault, we have a decent selection of merchandise, but in the end most of what is in there is silver based coins and bullion.

Do the research where you buy from. If you buy from another dealer, then you asking for little to no variety finds. If you buy strictly from ebay or another .COM coin shop, and they search their rolls, then you should look else where if the prices are not insanely cheap. I personally am blessed, I have run into a few shops that I routinely buy from that offer me a decent deal (BID prices in the coin dealer newsletter) and most of the items they purchase and turn around, they do not search. So, in the end, I make out pretty good.

Look, if you want to do it, go to the bank. Pick out a coin type in advance and tell them you'd like to order a few boxes, maybe 2 or so a month (from each branch). Test the water and don't question their way of doing business and you will develop a working relationship with them. You can do two things - one is to cherry pick the varieties and the BEST out of the box, and then take what is left over to another bank or coinstar the rest. You can build an inventory, at what the coin costs, and if you pull a variety you can sell that at a pure profit.
Its a slow process but in the end it doesn't cost much to build an inventory. I'd concentrate on Nickels, Quarters and Half Dollars. I don't know if they carry or can get Dollars, but its something you can ask about. The US MINT has stockpiles of Dollars, so if the bank is able to order those, you may get lucky.

Whatever area you want to invest in, make sure you know about it. It will save you in the long run from either buying something bad, or selling it.

Quality matters. If you have money to buy, why not go to an estate auction? Many collectors have high quality coins that no one in the family really would want. You might get a bargain, but do remember the auction fee is probably a percentage paid by the buyer.