Hi Guys, I just wanted to know how dealers price thier coins that they sell to you. I know dealers use a variety of different methods to price coins and sell them to the public. I know whenever I sell coins to the public as a dealer, I typically sell them at the same prices I would sell to another dealer. I see no difference in who gets the items I sell as long as I get the price I originally wanted. I typically price collectable coins at 90% of Greysheet Bid and then if it is a common date type coin, usually at about 70-80% of bid pricing. I usually sell junk silver a little bit over the spot price. Just wanted to know other peoples thoughts on dealer coin pricing.
I never thought they had a set price on the coins we buy. They kinda lead you into a conversation to see just how smart you are and then they pick a price that will go with how much or little you know. We call it getting a snow job now but the words used by my dad werent as nice.
I guess some dealers do that. I usually price my items first and then I'm open to discussion about the price. Will the dealer go down to below Greysheet Bid price on the coins you buy from them after the price is set? That's what I'm really wondering.
It depends on the coin. There are some I would love to get bid price for and then there are some that I would love to be able to by at ask.
What, where, when, and why? Your questions - as asked - are far too general to give a meaningful answer to. May I ask what you consider to be "collectible" and "common date type" coins? I remembered (and reviewed) your older thread on "dealer ethics", and am still left with the impression that you're really not sure on running your business. Just being honest and I mean no offense in saying this. If you are generically pricing everything at a percentage of CDN without considering other factors, you may want to step back and rethink. If running a table, you should concerned with your margins, moving inventory, and customer satisfaction - not with how someone else prices/negotiates. Without more information or even knowing what you are interested in, there is no way to effectively answer your questions.
BooksB4Coins, I consider common type coins to be any coin that is on the Greysheet "type" sheet that isn't a better date coins. For example A seated liberty half in good might bid for $23.00, I would buy it for $15.00 and sell it for for $19.00.. Another example is a 1928 peace dollar. It was Ngc xf 40 and I paid $275.00. Bid was $350.00 and I took $315.00 for it. Generic coins like large cents in decent shape, I pay about $9.00 and sell them for $12.00 and bid is $17.00. I usually try to make 20% on what I buy and sell. I also try to sell them as soon as I have a show I set up. I try to have a good sell price, make a decent margin, and optimize customer satisfaction. I was mainly wondering if other dealers work the same way as me. Other examples From people's experience would be good too! I hope this help. Thanks for your help too!
One of the dealers I go to sets his prices to greysheet. The good thing about him is if the day you buy the coin and the greysheet price is lower than his set price, he would adjust it to the current price. But he would not charge me more it if its at a higher price. I think he changes his price every month or two accordingly. The common dates in average condition are usually tossed into junk bins. Sometimes I find good half dollars in MS grade for PM value. The other dealer charges accordingly to what he paid for an item. Its usually a bit more than what he paid for it. Funny thing is he openly tells close friends and good customers how much he paid for a coin / paper money. He charges anywhere from twenty to forty bucks extra for an item. The only common coins he deals with are silver dollar coins which he charges accordingly to PM value. Its always nice to dig out a common date Morgan or Peace in AU grade from him.
There is no rule when it comes to how a particular dealer prices his coins because it can vary greatly with each individual dealer, and each individual coin. If you take the time to really look what you will find is that dealer A may ask $100 for a given coin while dealer B is asking $200 for the same given coin - or anywhere in between. Of course this is partly because no two coins are every truly equal in even the same grade because each coin is unique. But even when 2 coins are as close to being equal as they can get, the scenario of the asking price being as much as double still occurs. That is why it is so important for collectors to search out and find good, trustworthy, and respected dealers and to establish relationships with them.
A dealer (or any salesperson), will get as much for any item they sell you as they can. I've once asked that question before to someone who knows, generational experience, and the answer was, ..".. I'm gonna get as much out of you as I can.." I keep the quote in my mind everytime I buy anything from a salesperson.
Not every dealer uses the same formula for pricing their coins to sell. Some follow retail trends of past sales from a variety of sources, a small number in my area are strict on Red Book prices, others use Grey Sheet for their pricing. It all depends on the dealer, and what they consider accurate for pricing.
Though this sales practice does exist, utilized by a very small number of dealers, this is not typical of ALL dealers; and if their price is not clearly stated on the coin holder, then those feet were made for walking, i.e. move on to another dealer.
Doug hit the nail on the head. There's no stopping dealers from pricing their coins in accordance with everyone else. A couple points to consider, dealers will price "hot" items higher because of the interest that is involved, demand ultimately drives this dealer practice. Secondly, dealers will price up their pieces, and will make a deal to you or any buyer knowing full well they still make a nice profit. In that particular case, everyone is perceived to be a winner. In the grand scheme of things, it's the way "all" businesses make their money.
That's fine if that's what you choose to do. But in all honesty very few dealers are going to have a price marked on the holder. There's a couple of reasons for this. First and foremost not putting a price on the holder saves them a ton of work and time. Because as prices change over time they may then want to change that price. So instead they will put their own personal code on the holder that tells them what they paid for the coin but tells you nothing. So they never have to change the price or use a new holder or a new price sticker. So when you ask them the price, they look at their code and know immediately what they have in the coin. They can then offer you a price that is current with the market, or give you a break if you are a regular customer, or if you are buying several coins, or whatever. It allows them latitude, saves them work, saves them money, and saves them time. So by walking away simply because coins are not plainly priced on the holder, you're not really doing yourself a service. Instead you may often be doing yourself a disservice.
