Sell a coin for less than what you paid?

So I'm at a coin show today (managed to pick up some nice Swiss Francs, including the 1901B key date :smile) and I really wanted an AU 3 dollar gold piece, and was willing to pay up to sheet "ask". There was only one dealer there that has a common date piece, so I ask for a price. The price he quotes me is way too high, and I call him out on it, asking why he is asking more than sheet "ask". His answer? He paid 'x' for the coin, so he needs to sell it for 'x' + $50 at minimum!!

Now, had he told me that sheet is a guide, etc. and he wants to charge more, that would have been understandable. To answer that he paid too much for the coin and therefore needs to sell it for more than it is worth is something I don't understand from the business side. Perhaps a dealer could enlighten me, or others could explain if this is a common occurrence?

Thanks

 

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What if sheet wouldn't exist? As some coin collectors today, you buy the coin, if you really want it. Of course, negotiate first but it is what it is.

 

No offense, but who are you to "call him out on it"? If his asking price is too high for you you should either make him a counter-offer or politely decline and move on.

Again, no offense, but why do you feel you are entitled to paying "Ask"? (I am assuming you are talking about Grey Sheet.) Grey Sheet prices are wholesale, dealer-to-dealer prices. Unless you are a dealer why should you be able to buy from a dealer at wholesale prices?

 

i always assumed the "ask" price was the price a dealer would quote if they were buying the coin, not selling it. at the same time, i thought "bid" was the recommended selling price for a dealer. am i wrong?

 

coins aside- that is just a bad way for that dealer to conduct business- what he paid should not enter into negotiations.

 

It is called making a profit. It is how businesses stay in business. Do you not think that other businesses don't pass higher costs onto the consumer?

 

it's his coin, he sets the price. that's pretty simple to me. you counter offer and then buy or don't. you can always buy it from the "sheet" if you like that price.

 

Yea i've sold coins for less than i paid for. People are entitled to ask 1 million for a common cent. Like hobo said, the worst things to do at a coin show are:

1) Point out mistakes of the coin, call it ugly, etc.. (this doesn't help you get a better price)

2) Bring your referances into public negoiating (Keep the knowledge to yourself, be polite about it and move on)

Also, i recommend reading Thepennylady's guide to coin show etiquette, there's a lot of good information that can help anyone really.

Goodluck :thumb:

 

You have that backwards, swish. 'Bid' is what a dealer may pay another dealer for the coin and 'Ask' is the price for which a dealer may sell the coin to another dealer. (That is why 'Bid' is lower than 'Ask'. The dealer wants to sell the coin for MORE than he paid for it, not less.)

For example, for an MS-64 1885-CC Morgan Dollar 'Bid' is $580 and 'Ask' is $625.

 

it's not that simple. sometimes a business paid the wrong price or prices drop and you can't sell at a profit or you just need cash. you get what you can and use the money to move on. but i will agree no one but the owner gets to set his price. along with the market at some point but that varies with each business and product

 

With all due respect, I wouldn't have even answered your question. Who cares what the sheet says. Customers come along in all colors, and people are incredibly presumptuous. He was nice enough to even give you a reasonable answer, he was too nice. Nobody in business ever tells anyone what their wholesale costs are. He wants to make 50 bucks on a coin? And you have an ethical problem with that? Then you pay for a table and set up business.

Meanwhile, over the cost difference that your presume you deserve and what he wasn't willing to give you, you went home without the coin. If that is fine with you, then fine. Considering your here complaining about it, it seems to me you should have ponied up and enjoyed taking home the coin.

Ruben

 

Its like checking auctions on ebay. A seller can set or ask whatever price he wants to. Its his coins, whether he sells it or not theres not much anyone can do. And its part of doing business. No one wants to take a loss and will want to at least break even when selling.

 

my bad. i couldn't remember which is which. i don't subscribe to greysheet.

 

The Grey Sheet, Numismedia, and any other price guides are just that, guides. They are completely wrong on some coins listed, and what the dealer paid almost always has everything to do with what they sell for. Premium quality and colorfully toned coins are a perfect example. People, including dealers will pay sometimes multiples of any price guide for premium quality coins.

I hear this discussion at almost every show I go to recently,(usually someone trying to haggle with a dealer over gold bullion) Dealer: I just paid x, so I need to sell for y . Customer: thats not my fault you paid too much , gold is only z , you should sell to me for a loss. I can see where a person would expect to pay a certain amount for bullion or coins that are basically priced at their bullion value, but a coin with a numismatic value is not the same as bullion.

 

I have heard that some dealers write codes on the back of 2x2 flips that help them remember what they have paid for the coins. They have to make a profit over what they have in it or they would be out of business quickly. I can imagine a dealer selling a coin at a loss perhaps if they want to get rid of a slow mover or maybe a problem coin, if they need some quick cash, if they already made significant profit that day on another transaction, or if they are liquidating to go out of business. TC

 

people pay a premium for damaged (toned) coins?? i guess mr. barnum was right...

 

I see the rudeness you have is not just limited to dealer interactions..

 

rudeness? a dealer quotes a price, i either walk or i accept. negotiating is rude. taking a premium on a damaged coin is rude and disrespectful.

 

and pugnacious

 

only sometimes!