Do you include shipping?

For accounting purposes, you must include the shipping cost, if it is broken out. If it's included in the price, no. If it's spread over more than one item, I apportion it equally among the coins.

 

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Do you include any tax paid into the total price paid for a coin? What about those states without or lower sales tax than another?

 

In FL there is no tax, but if there were, yes, I would include it in the cost basis.

 

Here is how I look at it.

I pay $8 for a coin, then $2 for shipping.

If I tell someone "I paid $8 for that coin", it's true, because I paid $8 for the coin itself. I don't mention the shipping service, because that's not part of the coin, but rather part of the total transaction.

It's just like auto service centers that advertise "19.95 oil change". The cost of the oil change itself is $19.95, plus the money for oil and a filter.

 

If you were to buy a coin for $ 100.00 plus $ 10.00 shipping.
But found yourself in need to sale at your coin cost ($100.00), you would be out $ 10.00. You wouldn't be able to do this too many times before filing bankruptcy.

 

If you buy groceries for $50, the store will use part of your 50 to cover all kinds of services, from suppliers delivery costs to store cashiers and janitor salaries. Will you tell everyone you paid $20 for the groceries?

 

That is what I am thinking as well, businesses pay all kinds of expenses. If I buy something for $50, there is probably a hundred percent mark-up. This mark-up covers everything from keeping the lights on to profit. I am sure there are standard business models but business compete with one another and would deviate from that anyhow. Ebay is different since you can start your auction at whatever price you want and you can also charge whatever shipping charges you want. I could charge $10 shipping and put a stamp on it. If the coin is worth $20 and I start my auction at 99 cents, someone will bid anyhow. Does someone say that they paid 99 cents for it?

 

Yup,

Like purchasing anything, all costs associated with obtaining it should be considered purchase price.

 

That is how I record the cost of the coins I buy. TC

 

Do you tell everyone the groceries cost $60 because you put wear and tear on your vehicle plus gas? How about your opportunity costs? i.e. your time you could have spent doing something other than shopping, maybe even working? If work you are out that hour of work. Does that get included into the cost of groceries.

Now what if you travel across town to the coin shop for the coin? Do you add gas, time, and wear on your vehicle into the purchase price of a new coin? Online, it is just a click away (however, do you add in a portion of your monthly internet bill?).

Perhaps, no matter how the coin is acquired, just add $5 to cover any other costs involved?

Or, just how much did the actual coin cost? (excluding the extremes like $1 for the coin and $20 shipping).

 

It is not in my nature to discuss my grocery bill with anyone. But when shopping, I certainly consider the time and expenses of the shopping experience itself.

I send my laundry out, for example, because it is simply not worth the cost in time that it takes for me to do it myself. I make small food purchases for immediate need near by, when I walk past stores because I save on time and transport. But then I make large food purchases all at once in locations further away with better prices. I order at small grocers with higher prices because they deliver, saving me a parking ticket.

Every purchase I make, I consider the costs of acquisition, so I don't see how that defends your point. Likewise, you have to consider shipping, taxes, and auction fees when making on line purchases. What angers me is when a company refuses to give me that information until AFTER they have my credit card information.

 

This is something I remember being discussed, how people use up gas to save money but do not consider the cost in gas they use to get there.

 

You`re talking here about overhead expenses. When significant, they are definitely taken into consideration. You do not add gas money to your groceries price because it is easier to keep different expenses separated. You will know that last month you spent X for food and Y for gas.

Is it easier to keep and mention 2 different prices for each coin/bill in your collection? Or will you just say "The total shipping fees for my collection are currently at $350"?

In both cases it sounds quite ridiculous but you must mention the shipping fee, otherwise you`re not telling the actual price. It just makes more sense to include it.

 

It all sounds like "to each his own" accounting practices. I agree with both sides and really wouldn't get technical about it unless I really had to. Whether I paid $6.25 for a dateless Draped Bust large cent or $7.50 is like horse shoes and hand grenades to me - its close enough.

 

but you can combine trips and do other stuff along the way to the B&M coin shop. Add the shipping to the coin, IMO !

 

Telling someone how much you paid for a coin is like telling someone about the results of a fishing trip, ALL LIES!

 

How about little white lies?

 

Exactly... When telling tall tales, you could always claim that some mysterious stranger appeared at your door bearing an 8.5 million dollar headache for all.

 

Scenario1-:

You borrow $100. You buy a coin for $10 and shipping is $10. You have $80 left in your pocket. You sell the coin for $10. You now have $90 in your pocket. You are now $10 short. Do this a few times and you're broke. Not good business.

Scenario 2-

You borrow $100. You buy a coin for $10 and shipping is free. You have $90 left in your pocket. You sell the coin for $10. You pay back the full $100. You are still even.

If you made profit on the coins in both scenarios, in the first scenario you will eventually run out of money.

Simple.

 

Do you consider shipping cost when bidding on a coin.If the coin is $.99 and shipping is $20. Are you bidding on it if the coin is worth $2?Your taking into account shipping cost when bidding so why not take them into account when you have bought it.