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 Replies: 14 / Views: 1,809 |
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New Member
Canada
2 Posts |
As a new collector, I've been having difficulty dealing with coin stores. My question is what do coin stores normally offer as a percentage to trade compared to what they sell? I was trying to trade a coin I know the store sells at 69.99 and all they would offer was a $20 trade (which is really frustrating since the face value of the coin was $25... I'd literally get more if I handed it in to the bank). I mean, I realize that they aren't going to switch it up with another $70 item, but is a $50 dollar item too much to ask? The coin was the 2007 $25 sterling silver Olympic Curling hologram coin from the RCM. |
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Pillar of the Community
Canada
1747 Posts |
CrazyJax, welcome to the Forum. When negotiating with a coin store, you need to understand that there are many factors in retail. supply/demand are only 2 of them. the longer an item takes to sell is also a significant one.
To be honest around here those Olympic coins (however nice they look) only get a little over spot. sure he may put a price of $59.99 on the coin, but he would take the first offer over that $20 he offered you. so he actually may sell it for a profit of $25 but it may take him 2 or 3 months to sell it.
What you are asking even with the $50 in trade (so he may make a little more) is for the retailer to basically do all the work in selling your coin, and make very little on it.
do you think that is fair? I get that you may have bought the coin for more back in the day, but anyone who bought any NCLT from that time period is in the same boat our coins are worth spot or a little above.
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New Member
 Canada
2 Posts |
Thanks for the welcome.
"What you are asking even with the $50 in trade (so he may make a little more) is for the retailer to basically do all the work in selling your coin, and make very little on it."
While that is true, it is more true for selling for cash. In terms of trading, wouldn't he also be getting rid of another coin that he would have had to have been selling thereby resulting in a similar amount of work whether he traded or not? The coin he offered in trade was a $20 for $20 coin... that was a trade WAY in his favor to the point I almost felt like he was trying to scam me.
Edited by crazyjax84
12/05/2016 11:25 am
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Rest in Peace
United States
17900 Posts |
The quantity in inventory may have a significant influence on what the dealer offers.
If he already has 20 or more of the coin you are offering to trade, and he only sells one every three months, he already has a 5 year supply of them and really isn't interested in adding another to inventory, even for what seems a very cheap price.
I realize you can point out the actual number he has, but you still don't know how often the dealer sells one. You've pointed out that he has at least one, and maybe that ones been setting in inventory for several years (when it might have been worth more, too).
There are a very limited number of dealers with shops open, and even those lucky few collectors who live close to several will tell you that once they have located a store they like, they do everything they can to be a good buyer, because that is who is always going to be treated best.
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Pillar of the Community
United States
790 Posts |
For those of us who are new to all this, it'd be great to have a Haggling 101 thread, with tips from experienced collectors and dealers, both for buying and selling coins. Anybody want to start one?
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Rest in Peace
United States
17900 Posts |
Haggling is really simple. Know your item, regardless of if it's a coin or a car. Know what you feel comfortable paying based on research of past sales for the same or similar item.
Offer your best price first, and it will be accepted or declined and you either have a new coin, or keep moving along.
In every stage of haggling from either side of the table absolute honesty will win friends, customers, and/or sellers.
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Valued Member
United States
110 Posts |
Not all brick-and-mortar coin shops operate on the same margins. Some try for volume sales and others try to make up for less sales, depending on a higher mark-up.
One of my favorite ways to determine that margin is to compare the buy and sell quotes from a dealer for, say, common silver dollars that are really just bullion coins.
Some dealers might be insulted if you asked them about their buy vs sell pricing, but you can be subtle about it.
I'm lucky, I'm 73 years old and have known my local coin guy for most of that time. I buy more than I sell, but we do transactions both ways, and yes, he does work on a very narrow margin. So I can ask him his buy and sell for common silver dollars (for example), or simply if he is in a buying or selling mood, what he's got that day, and his answer will help me determine a game plan. He is also extremely honest so over the years I have sent many people to him because he treats everybody fairly.
It's like finding a good car mechanic, once you do, all is good.
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Bedrock of the Community
United States
94367 Posts |
Just remember rule #1 of negotiating price: If you make an offer and it's accepted, then be prepared to back it up on the spot.  |
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Bedrock of the Community
United States
20753 Posts |
This is a problem with coins, stamps, etc. You pay one thing for one and find you could not sell it for a fraction of what you paid. And so called coin stores are just doing what is normal in business. Pay as little as possible for something, then sell for as much as possible. Think of it as if YOU opened such a store. What would you do?
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Bedrock of the Community
United States
17884 Posts |
Quote:
the face value of the coin was $25... I'd literally get more if I handed it in to the bank). That may not be true either, the bank might not have to accept it. Years ago when silver was a lot lower it's value dropped and a lot of people started trying to spend or take to the bank silver maple leaves and the 1976 Olympic coins. The banks refused them and the government backed the banks. Recently in England the government ruled that banks don't have to take the commemorative 5 pound coins. Quote:
If he already has 20 or more of the coin you are offering to trade, and he only sells one every three months, he already has a 5 year supply of them and really isn't interested in adding another to inventory, even for what seems a very cheap price. This is VERY true. Many collectors think a dealer should always offer them close to bid value on their coins, but most coins are actually pretty common, and common material moves slowly. More than likely the dealer already has a good supply and has no need for yours. In a case like that they will offer way below bid, if they offer at all, because they know their money is going to be tied up in it for a very long time. Money tied up in dead or very slow moving items is money that isn't available for use in more profitable deals. Edited by Conder101
12/05/2016 8:06 pm
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Moderator
 Canada
10456 Posts |
Why not join a local coin club? You might find better trade options with other collectors...
"Discovery follows discovery, each both raising and answering questions, each ending a long search, and each providing the new instruments for a new search." -- J. Robert OppenheimerContent of this post is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License. See: http://creativecommons.org/licenses...0/deed.en_USMy eBay store
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Pillar of the Community
United States
4211 Posts |
 crazyjax. The best advise I would have is find a dealer you are comfortable with and that you like doing business with. Once you have a good relationship with a trusted dealer more doors will open for you. |
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Pillar of the Community
 Canada
9862 Posts |
322346609213You had it priced about $10 too high. Demand is low for 2010 Olympic coins. Check the sold listings.
"Dipping" is not considered cleaning...
-from PCGS website
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Moderator
United States
187862 Posts |
I prefer coin shows because there is a natural competition between the dealers. When one treats you unfairly, there are several more who will not. Granted, a coin show may require travel, but I think it is worth the effort.
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Rest in Peace
United States
18456 Posts |
 With jbuck , There's a coin show by me every 2nd. and 4th. Sunday of every month . It's a small show but I go there often and get great deals from some of the dealers that I patronize . |
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Replies: 14 / Views: 1,809 |
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Posted 12/05/2016 11:25 am
