Reply to Thread

Message:: [QUOTE="GDJMSP, post: 351096, member: 112"]Cheryl the reason they do this is simple, dealers need to make a certain amount of profit on every sale they make. On low dollar items like this it still takes just as long to to make the sale as it does for a high dollar item. And the dealer's time is worth money. So make it worth his while, he has to charge way more for an item than what he pays for it. On higher dollar items, he makes his profit on the spread. The spread is the difference between what a deaer pays and what he sells for - that's typically anywhere from 20% - 40%. For example, if an item is worth $100 wholesale a dealer will pay $80 for it and he will try to sell it for $120. 20% under for buying and 20% over for selling. That's the spread. So if it takes him an hour to buy the coin he needs to make $20 off that for his time. And when he sells it, it takes another hour so he needs to make another $20. But on an item that is only worth $15, how does he make up for the cost of his time ? He buys very cheap and sells very high. Hopefully that is  a better explanation.[/QUOTE]