Coin Negotiating and Shopping around

Discussion in 'Coin Chat' started by Duke Kavanaugh, Jun 21, 2012.

  1. Duke Kavanaugh

    Duke Kavanaugh The Big Coin Hunter

    While at a local shop the other day I noticed a person haggling with the price of 90% bullion. The customer was trying to get it for Spot price and the dealer wouldn't go there but was closer then I would have expected.
    I also push the prices but not as hard at that person.

    My epiphany was that from my knowledge, coin stores are less and less around and bullion places are popping up more and more. And what I am thinking is it is basically OUR faults. Yes, US, as in coin collectors, bullion stackers and currency collectors. We beat up the dealers for every dollar they can make and expect them to stay around for free. With those kind of pressures it is no wonder that many pay very little for the goods that come in.

    Look at a normal retail market profit %. It seems to be MUCH higher then coins.

    Just trying to get a feeling of what the rest of you think about this. As I think that my next trip to the coin shop will make me more thoughtful of their goods and help.
     
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  3. AdamL

    AdamL Well-Known Member

    I always have thought that people are too hard on the coin dealers. I don't know about the bullion negotiating scenario exactly. But it does seem like people always want to call dealers crooks for trying to make a buck.
     
  4. chrisild

    chrisild Coin Collector

    Actually I do not haggle. If I think the price on the label is OK, that is what I will pay. If I do not see a label (happens rarely, mostly at coin shows or street markets) and am interested, I will ask. And if the price that I see or hear is not what I would pay, that was it. The only exception that I make is when I buy several pieces (even cheap ones) at a time; then I may ask what the actual total will be. :)

    Christian
     
  5. omahaorange

    omahaorange Active Member

    I agree. You see it on here and other forums. Sellers want retail pricing, buyers want it for less. For the average seller in a venue like eBay or a Buy/Sell/Trade section of a forum, there is little overhead costs compared to a brick and mortar shop. I will haggle a little if I think the price is a bit high from the shop, but if it appears in line with current pricing I usually let it (haggling) go. If it's way off base I will simply walk away. I am willing to pay the prices at a shop, considering it the cost of the convenience of being able to see the coin in hand, and take it home immediately, as opposed to paying the same prices from an eBay seller, who I don't really know, waiting for the item to arrive, and hoping it's the one pictured in the auction.

    The trick is knowing when a seller has set a price too high, knowing the buyer will come in and haggle, but hoping he's not smart enough to realize that the price is artificially inflated so when the haggling is over, the buyer thinks he got a deal (IE "I got this $300 coin for $250", when the actual value of the item is $50) This is especially true when dealing with flea market or small shop vendors.
     
  6. Nothing wrong with negotiating/haggling. It's a free market, and the seller or buyer can say no or just walk away. The economy is not good right now so profit margins are slim and people are looking for deals. TC
     
  7. giorgio11

    giorgio11 Senior Numismatist


    You are so right. Thanks for these astute observations. I have already applied my BEST price to the coins I sell before doing a show or putting them on the website. So there is no haggle room! But most people still want a "deal." It is refreshing to do a show and see someone ask to see a coin, then pay the quoted price without bargaining.
     
  8. Kid_Collector

    Kid_Collector Member

    This is why i love one of my local shops, he's in the coin selling because he loves it and its not to make a killer profit. He pays higher than just about everyone here. And he sells for a very fair price. Usually lower than anywhere i can find.
     
  9. giorgio11

    giorgio11 Senior Numismatist

    A coin dealer lives and dies on his reputation. If people ask around at shows they find out I am fair and my checks are always good. If you "bury" a customer in a coin that is too high-priced that is not good for anyone.

    Best Regards,

    George
     
  10. ikandiggit

    ikandiggit Currency Error Collector

    I like the chance to be able to haggle. I'm not a low-baller and I am aware that the dealer has to make a profit but at the same time, I don't want to pay full retail.

    I know how much I want to spend and if we don't come to an agreement, that's fine. I'm not going to stand there and be a pain to him. He has his price (range) and I have mine. There's nothing wrong with that.
     
  11. giorgio11

    giorgio11 Senior Numismatist

    And I'm certainly not offended by that when someone asks for a better price. I don't think there is a "full retail" price in the coin market, anyway, except maybe for the very rarest coins. If you know someone who pays that, would you send them over here?

    Best Regards,

    George
     
  12. bkozak33

    bkozak33 Collector

    I just ask my dealer, whats the best price you do for me. he usually gives me a good deal.
     
  13. TheCoinGeezer

    TheCoinGeezer Senex Bombulum

    Haggling is a part of the coin show buying experience to me.
    I have yet to buy a coin at a show that the seller didn't come down on the price after a little bit of FRIENDLY haggling.
     
  14. BadThad

    BadThad Calibrated for Lincolns

    My dealer usually has stuff "at melt". I have no problem paying melt value for stuff he was going to send off for the refiner. In fact, he likes it too because it's less stuff he has to pay to ship. No need to haggle on bullion stuff and he often has coins that I see numismatic value in that he considers melt material.

    As far as coins, he uses CDN pricing...usually he's a little over CDN. Again, I have no problem with that when the right coin is in his shop. For the most part, I pay what he's asking but I do haggle a little now and then depending on the coin(s).
     
  15. Cherd

    Cherd Junior Member Supporter

    I always approach interactions with coin dealers in the same manner as I would an interaction with a used car dealer, I assume that they will try to take advantage of me. But the sad thing is that they almost have to take advantage of their customers to make a buck these days. I honestly do not understand how they stay in business at all now that they have to compete with options like Ebay. Dealers have to obtain inventory on the cheap to make money, but who is willing to sell their stuff for cheap when they can put it on Ebay and get retail? I think that the only thing keeping coin shops in business right now is the bullion boom. Once bullion prices drop or stabilize, then I fear that coin shops may become a thing of the past. How many baseball card shops do you see anymore? It's all online now, you do not need a brick and morter establishment to succesfully deal in collectables anymore.
     
  16. BUncirculated

    BUncirculated Well-Known Member

    I think a lot of comes from too much reality television that plants the idea of high price sell into these people's heads.

    But the true reality is dealers, and B&Ms, can't survive making a dollar or two profit buying from a public with high dollar signs in their eyes.

    Currently, the local B&M near me, has increased the amount of their buy price from $3 under spot per 1 ounce of silver bullion, to $4.50 per ounce under spot; and on the opposite side their retail price went from $3.50 over spot to $4.50 per ounce under.

    People have to realize it is what it is. If they have higher expectations, they should toss an ad on their local craigslist.com and retail it themselves.

    It might be a good learning experience for them and they'll see things from the dealer's point of view.
     
  17. icerain

    icerain Mastir spellyr

    Well, bartering and haggling has being around for ages. I doubt thats the reason why any stores are going out of business. Most dealers that know the customers will also automatically give them a good deal.

    You also have to understand the mentality of a buyer. Of course this doesn't apply to all but most buyers that are looking to make a profit will try to get the most out of any deal. which includes dealers.
     
  18. AdamL

    AdamL Well-Known Member

    I have no problem with people negotiating. I do it myself. I just think alot of collectors badmouth dealers from trying to make money.
     
  19. ddoomm1

    ddoomm1 keep on running

    Well, I am a believer that the price marked on a coin is not what a dealer expects to get out of it. I enjoy bargaining with dealers, especially when you know them and their style.
     
  20. mcrow24

    mcrow24 New Member

    I don't try to negotiate prices, I just don't buy if the price is too high which is probably more problematic for dealers than buying for a slightly lower price. IMO, a sale now is better than waiting for a sale you are not sure will come in a reasonable amount of time.

    I think there are just some items that dealers would sometimes be better off with if they did negotiate and sell a little lower. Having a coins sit around forever is dead cashflow, a sale for a profit is positive cashflow. Certainly, you can't do this for the entire inventory but some of the higher priced items or items that have a niche appeal are probably best suited to negotiation.
     
  21. mark_h

    mark_h Somewhere over the rainbow

    Reminds me of my local dealer - he sells silver at a fixed price over spot and he buys at a set spot under spot. Both were a $1.50 last I checked. You can haggle all you want, but it does not change. I watched them patiently explain this to customers - sometimes more than once.
     
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