Should dealers update their prices?

I was at a coin show recently looking for some Franklin 50c coins. I started looking through the guy's coin binder and noticed that he did have the lowest prices of the vendors at the coin show. So I started picking out a few and handed them to him so that he could total them up.

The interesting thing is that his total for my 36 dollars in coins (3) was 42 dollars, even though that would be higher than the marked prices on the paper holders. I know silver prices have gone up but he got upset when I gave him a tough time about it.

Shouldn't this guy update his prices?

 

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I'm not a dealer ekdahlj, but I would think it would be a logistical nightmare for a dealer to have to go back and change the prices on all his inventory with every increase or decrease in the price of metals. I know my local dealer has hundreds and hundreds of coins in his inventory, and when I pick out something I like I always inquire as to the current price even though a figure is already written on the 2x2. I'm sure some of the dealers we have on the forum will comment later.

Bruce

 

I have to agree with both of you, yes it annoying but it would be nearly impossable for a dealer to constantly be changing his prices, especially when you concider how crazy the market has been the last few months. I have seen dealers who put up a sign that states, due to the current market, prices may be higher than listed. Maybe that deal should have done something like that.

 

I was at a coin show on Sunday, and many dealers had noted on the cover of their binders that the prices were outdated on the individual holders and what were the minimum prices for silver dimes, quarters, halves and dollars. I would think that since silver prices are on the rise that it would be way too much work to keep changing the prices on the individual holders.

TC

 

I think a little sign or something would have been in order. Letting me look through his binder for 25 minutes before he said anything was probably was set me off.

 

A few questions/comments about this practice.... first, many coins in a dealer's binder have been there awhile, purchased when silver prices were lower. The dealer then priced them for resale with a specific profit margin in mind. So now that silver prices have increased dramatically, the dealer decides that his original profit margin needs to be increased to compensate for this increase. I hate to use the term "price gouging", so let's just say "taking advantage of the situation". Does anyone really think that this is good sales practice? When the price marked on the 2x2 is $13 and now they decide it should be $15 because melt value is higher... well, that doesn't sit right with me.

 

Sadly enough, when silver goes down, the seller's prices don't. Something I've noticed at local stores. However, there was one guy selling (and still is) coins under their melt value on circulated examples. I applaud him, and buy from him quite a bit.

 

Thats what stinks about high silver prices and why I prefer a more stable part of the market. If I had picked out a couple silver coins and was willing to pay the price that was marked and the dealer wanted to up the annie, he would've gotten a piece of my mind. It might be a pain with the market on the rise, so the dealers are better off not pricing the coins on their holders but in a folder of some sort like whats in the back of the red book. Bullion Values per ounce and denomination. jmo...

 

Don't we all. Not a surprise that we'd buy up his inventory at less then melt.

As for dealers updating prices...it would be nice if they did but when metals move this fast I don't blame them. I usually like to buy from guy's that don't update but not because I get it less then silver but because a hot market such as say Morgans now will be much higher then the prices when they posted them so although more then melt still a great deal.
Dealers like this usually flip their coins fast as they buy them and mark them with what they need to make money off of them. But this is just my opinion.

 

Are you sure there wasn't a sign on his table somewhere informing buyers that the prices on the coins have changed and are not accurate?

 

He probably should have updated the prices, but I can also see his side -- he probably has many thousands of coins that go up and down relative to the price of silver and may be reticent to change them frequently.

 

I like when dealers don't update their prices... at a local show Sunday I got a VG Barber Half for $10 and a modern commemorative silver dollar for $22 Was pretty happy about that.

But yeah, if a dealer marks prices, they should be willing to sell at those prices unless there is a notice that clearly states that the marked prices are subject to change.

 

Yeah, I'm sure. No offense to some of the coin dealers but they're not exactly the best when it comes to customer service. I went to another table and bought from someone else. I think he should have said something to me as he watched me sit there and pour over the finer details of his coins. But, that's okay - - I take comfort in knowing that he had to carry them back to his minivan at the end of the day.

I ended up getting what I thought was a pretty good deal on some proof sets also that day. I still think that you can beat $5 for some of those 70s proof sets - - - I just think that's the best deal around.

 

I find that the dealers in this area, at least in the shows I've attended, rarely have prices on the 2x2's. Most of the few that are marked have the numbers scratched out. The dealers always refer to the current price sheets before selling.

 

I personally believe that if there is no sign indicating a higher price to all the wares, than the price should be as indicated on the coin. I believe he was totally wrong and you were right to walk away IMO!

 

I can see why you were a little upset, I would have been too. I'm glad you started this thread. I'm going to the Baltimore show on Friday. This will be something else I'll have to remember when searching the binders.

Thanks!

 

Definitely have the right to walk away. No arguing there.

 

To me this is almost like a dealer changing a price because he realizes you are cherry-picking....

I say they should post a warning that the prices may be outdated (like what you see in many add's in the various coin mags) or honor the price on the coin. If they think that is unfair I would walk away.

 

I haven't read all the responses here, but many businesses frequently see price changes at the manufacturer level(I know the business I'm in does) and they always update their prices. Could you imagine going to Wal-Mart(which has many thousands more items than a local dealer so give me a break with that sob story) and getting to the register and having them tell you, "we're sorry, but the prices you saw were outdated, we just didn't have the energy to change them." I have ZERO sympathy for these dealers. It's a business; run it like one.

 

I see your point, but let's follow this through.

The dealer buys a bunch of cull silver dollars when silver is $37.50, making their melt value $29. He gets them for $27, and tags them at $32. Let's call that a fair markup.

Now, suppose silver goes up to $75, making the melt value $58. If he leaves them as tagged, people will buy them like hotcakes. If he marks them up to $60, a few people will complain -- but most will still buy, and be satisfied with the price.

Now, suppose silver instead goes DOWN to $19.25, making the melt value $14.50. If he marks them down to $16, he takes a big loss, but people will buy them. If he leaves them at $32, that's still a fair markup -- but he'll sell NONE.

His pricing simply has to track the commodity price. If he doesn't change his prices when silver rises, he's a great guy, very generous -- but when silver starts to fall, he won't be able to stay in business for long.