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How does this coin shop survive with low profit margin?
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<p>[QUOTE="physics-fan3.14, post: 3311586, member: 19165"]Low margins can be overcome by large volume, but that doesn't sound like this guy. Large volume is how outfits like Apmex can charge great prices - even if they only make a dollar per bullion round, but they sell a million of them, they still make a good living. </p><p><br /></p><p>But it sounds like this guy is more in it for the fun. He's probably not too concerned about profit because he has other sources of income. He probably is just making enough to pay the rent and electricity, but it keeps him active and engaged. </p><p><br /></p><p>The other alternative, as someone else alluded to, is that this is a marketing scheme. If you tell someone you'll sell it for $640, they'll be willing to accept $615 knowing that you need to make a profit. In reality, he'll turn around and sell it for $740, having talked the seller down to a lower value. Not saying that's what this guy is doing - but I have seen it done before.[/QUOTE]</p><p><br /></p>
[QUOTE="physics-fan3.14, post: 3311586, member: 19165"]Low margins can be overcome by large volume, but that doesn't sound like this guy. Large volume is how outfits like Apmex can charge great prices - even if they only make a dollar per bullion round, but they sell a million of them, they still make a good living. But it sounds like this guy is more in it for the fun. He's probably not too concerned about profit because he has other sources of income. He probably is just making enough to pay the rent and electricity, but it keeps him active and engaged. The other alternative, as someone else alluded to, is that this is a marketing scheme. If you tell someone you'll sell it for $640, they'll be willing to accept $615 knowing that you need to make a profit. In reality, he'll turn around and sell it for $740, having talked the seller down to a lower value. Not saying that's what this guy is doing - but I have seen it done before.[/QUOTE]
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