Why can people be cheap with selling their coins and vice versa?

because people dont want to know that the dealer is making profit. deep down, we all know they are... but when something is over priced, it gets people worked up.

me personally, i like to just offer something insultingly low like half of what they are asking. that is my way of showing my disgust. it irritates them, and lets them know what i think all at the same time, without acting like a complete jerk.

 

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Quote:
Originally Posted by mark_h
Why does it always seem like people want to deprive dealers of their profit, even online dealers need to make a profit. As mentioned ,as the buyer you can either accept their prices or move on you get to decide what you pay. And as a seller you can sell as cheap as you feel like it.

because people dont want to know that the dealer is making profit. deep down, we all know they are... but when something is over priced, it gets people worked up.

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Frst of all, the word "cheap" doesn't belong in the thread title IMO. Getting top dollar for your possessions is human nature and to do otherwise would be stupid.

I don't worry about the dealer, he wouldn't buy the coins if he didn't think he could meet his profit objective, plain and simple. If the deal doesn't have "win-win" potential, there is no deal.
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Well, I imagine for some it's a business and how they make a living, so therefore the profits go towards providing food and shelter and all that hoggy stuff. Of course, I could just be looking through stained glass here as it's all just a hunch because I don't sell coins as a business. The few coins I've sold have sold probably for less than I had into them, but went to collectors who I knew would enjoy them as much as I had, so in my opinion was worth the small loss. My approach would put a coin dealer out on skid row in no time, however.
Guy~

 

A lot of this really does boil down to how much has the potential buyer done their homework. This varies from person to person as well. How long have they been in the hobby? How much information do they have access too? How well do they analyze it?

Yes, there are a plethora of "price guides" available. Some decent and some just downright ridiculous. None of them are right all of the time.

Here's an example. Before I worked for my current boss I decided to "beef up" a few semi key Lincolns as I figured they'd be taking a nice jump in 2009 (I wasn't wrong).
The other local dealer that I buy from had started selling MOST of his coins at Greysheet bid.
I went in and looked at some Lincolns. He had a nice XF+ 1911-S that I was interested in. Well, just so happens that Greysheet was ahead of Coin Prices. I told him I'd GLADLY pay full retail for it because I noticed it was UNDER bid. So did he, of course, so we met halfway.
This is a case of the dealer doing his homework as well. It works both ways.

Yes, dealers want to maximize profit even those "dealers" on ebay. I haven't sold on the bay in over a year but when I did I wanted to at least cover my cost, ebay fees and maybe make a few bucks.

Ideally I would like to buy coins cheap, sell them cheap and still make a profit. Like many others I have always tried to make better deals for a repeat customer.

I have knowingly paid "too much" for a coin because I wanted it or realized it's potential. I have "sat on" coins too long and missed a profit. I've been burned at times and done well at times.

I guess the bottom line is although I work for a dealer I am not a dealer. I'm still a collector that sells on occasion. The big plus I have is seeing how it really works and it's not all about Greysheet and "fair" prices. Perhaps I've "hardened" over the years but I expect the buyers to know what they are willing to pay as the sellers know what they are willing to sell for.
Sometimes it works and sometimes it doesn't.

I've had coins go at auction for so much over what they're worth that I send a bonus. I've had other coins that I lost my butt on. It happens.

There is no perfect formula as there are too many variables involved. One can refer to oneself as a dealer all day long but this thread is about sellers. There is a world of difference between the two IMHO.

Enjoy the hobby no matter what folks.

 

Yeah - but over priced is a matter of opinion, especially when it comes to quality of coin. And part of the problem is sometimes those looking at the coin have no idea what they are doing or offering. What is really funny is when they want to buy bullion from my local dealer for less than the current rate - I have seen that.

 

Thats true. Overpriced is a term people who can't afford it use. I say this because no matter the price, there is always a buyer somewhere, therefor nothing is ever overpriced.
Guy~

 

I'd love to meet this guy. I'd love to frequent his place of business.....

 

I found a column in the 11/30 Coin World to apply to this thread in a way. Q. David Bowers , who many might be considered one of Numismatic's foremost coin "dealers", paid 132,000 ( including commissions) for a 1861 Confederate cent ( 12-15 known) in 2005, sold it in Stacks 11/7-11/9 auction for 112,700 which after fees ( if applied) would give him about 93,000. SO if all stands, QDB lost $40.000 in about 4 years.

Again showing how what has been said by many in the forum. The coin is only worth what the last person is willing to pay for it at the time.

This is an important and popular historical coin.
From a well known and astute collector

And still has a loss if all goes as said.

Jim

 

graysheet prices are the average reported prices are they not? If only 2 sales of a 1892o MS63$ are reported that week, one coin at 500 and the other at 1300, the sheet reports 900 the average of all the coins reported sold.

FWIW I paid whatever price was necessary the first two-three months of collecting dollars. Then I finally figured out the greysheet is the dealer wholesale price list and have since, many years, used it as a max for what I pay and it works well. I will go to the high end if I find a coin that speaks to me but no more. There is always an other Morgan. I sell surplus basically the same way. When I upgrade a coin, the one that then has to go doesnt have to bring a high price if I didnt have to pay a high price.
Speaking of greysheets, our local coinclub, where the average member age is something between retirement age and the grave, holds a 15 min member only auction after each meeting. Basically members dumping surplus. Look around the room during bidding and there will be 10-15 bidders with a greysheet and coin loupe checking highs and lows. LOL
Same situation on bourse night where each member sets up his 'might be for sale' display. No serious haggling begins until both parties are armed with their reading specs and graysheet.

 

A couple of dealers at the coin show I attended last weekend had an interesting method. When someone ( most) was interested in buying, they pulled out a coin values magazine and quoted their price from that. I had a few coins to sell that do much better % in CV than CDN, so I lingered and then noticed when someone wants to sell, out came his CDN and he used that. I guess that really lengthens the spread. Didn't buy anything at those two.

jim

 

interesting