I got an education in selling

Yes it is a learning process, and usually one that most collectors do not learn until too late. I know I hated that lesson when I learned it. I always tell newer collectors who don't believe me about the spread in this hobby to go to a show and find a nice coin you like. Buy it, and then go to a few other dealers and ask them how much they would pay you for it. That is always a shocker.

I believe you will do better than most Race, since you are more knowledgable than most, (as evidenced by you being a member here ). I always hated having to tell heirs that the box of coins dad bought from Littleton, HSN, and similar were worth just pennies on the dollar. Way too many collectors never learn the selling part, and as such spend way too much money on coins versus resale value. IF they only bought coins for their own enjoyment that is fine, I just feel way too many were suckered in by "investment" angles. This is why I rail against "coin investment" so much, not for intelligent pseudo dealers here, but for the average Joe collector who is getting sold a bill of goods if he thinks he can retire comfortably off his coin collecting "profits".

 

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Welcome to the coin game.

Not to sound harsh, but now you know why I collect coins and I buy/sell bullion.

The transaction costs for coins is very high, and the deck is strongly stacked against you. Not so much for bullion.

 

That is not true. Some dealers make a habit of lowballing, and expect negotiations. Once again, a categorical statement.

 

If you are going to sell your collection, you really (really) must get a gray sheet. All you need is the sample pack that they offer. http://www.greysheet.com

I looked-up your complete set of SLQs in VF, minus the 1916, and minus the overdate and with the 1923 S slabbed in F12. The total for that completed collection came to $3,089. If any of the key coins are not in VF, then the total would vary significantly. IMO you need to get the gray sheet & do the look-up yourself. Please post it here & let us know if you are placing any coins in the For Sale section of CT.

 

With all due respect, a large percentage of these coins - while they may be fine collectibles as a set - have little collector interest/value, other than the keys/better dates/varieties. Going on on your grade ranges, and as much as I hate to say this to a collector, the average B&M most likely would sell many for melt and have little need for the non silver coins. The unfortunate fact is that while the better dates may sell (reasonably) well, a sizable portion of the rest are basically stagnant inventory. If this dealer had a customer (or customers) looking for such sets, chances are his offer would have reflected this.

For anyone to state - as a fact - that the dealer lowballed you only because the coins were in sets or that he thought you needed money is nonsense. Sure, this happens and some dealers have been known to do such things, but by and large this is not why offers are often lower than collectors hope for. There is no reason for the dealer to buy if he cannot make a profit AND turn over inventory. Its not like people are going to rush the door to snatch up most of these coins.. demand simply isn't there. Without the OP providing an detailed list, all we can do is speculate, but chances are his offer was not that bad all things considered. While it was probably a little lower than he would go, I am quite sure he was not swinging for the fences either.

OP, have you ever dealt with the dealer before? If a regular customer, you would most likely get a better offer, but if a walk-in he has never seen before... well, you get my point. Building a relationship with a good dealer, even if it may cost a little more upfront, can often be made up for in the end.

 

Thanks for posting this story Race. It helps solidify my decision to give my collection to my kids someday. I think Chris gave you very good advice in seeking our specialists at a big coin show to sell. Good luck! TC

 

RaceBannon, just on these two, this is the bottom-line you're looking at from the dealer's standpoint. It's all about a little number in his Income Statement, third line down, called his "Gross Margin on Sales." Otherwise referred to, simply, as his "margin," that's the number he's going to respect if he has any business brains. Translated, if that number is 40%, and he approximates your retail value at $38K, he's going to offer you $22.8K. That margin, 40%, is probably high, unless he's a big brick-and-mortar retailer. If he's an online retailer (i.e., "paper pusher"), he's going to be in a position to offer you more. Either way, based on that $38K, 40% margin, that $16K offer is low. Variables, here, are the retail value and his margin.

 

As an interesting update, I went to a different dealer today and had him look at just my Morgan collection. His offer was around $9k as opposed to $6K from the first dealer just for the Morgans.

Now the difference is that I have a relationship with the second dealer. I've bought a lot of coins from him over the years. The two points I take from this are:

1. relationships matter (as BookB4coin mentioned in his post)

2. just as in buying, shop around when you sell

 

Don't throw in the towel Race. In order to maximize profits you must liquidate on ebay. Even if this takes a 1,000 photography settup, countless hours of time, and eating the 9% + 3% fees. With a collection of this size you must attempt to sell it on ebay. I'd say whatever doesn't sell on ebay/coin forums then take it to the dealer. I recently sold a section of my collection as well. Upon hearing his first offer I almost said "Could you give me the number to a coin dealer."

 

Sounds like the dealer offered you a fair price. Remember, what ever the dealer buys might stay in his inventory for a long period of time, tying his funds up for an extended period of time.

As the saying goes, “Knowledge is Power”. Some collectors may specialize in a certain series to collect, so do dealers. Know your series and the dealers that support that series. If you take your collection to just any B&M corner coin / jewelry store that spends 75% of their time buying and selling scrap silver and gold, don’t be surprise if they offer you a price based on the scrap silver / gold price. Time is money and a lot of small B&M operations watch their overhead and the sense of what they can move quickly so that their funds are not stagnate.

Research, research and research, not just before you buy the coin but you should get an idea of where to sell when the time comes (don’t wait until the last minute to figure out how to liquidate. Even have your liquidation plan spelled out in writing so if something happens suddenly; your family will know the best way to sell the collection).

 

Selling of a collection can be a hassle. Just like buying shop around before you accept a deal. I find the two most important factors are how much the dealer knows you. And selling to another collector, this cuts out the middleman (dealer) and maximizes your profits. You can complain about ebay as much as you want but you have to understand. When you list on ebay you are essentially showing millions of buyers what you have instead of one dealer / buyer.

 

If you have local coin shows, it might be fun to rent a table and sell there?

 

Race, thanks for posting your experience with this and good luck in selling off your collection, however you choose to do it. Keep us posted on the results.

 

"Millions of buyers"? Tens yes, but millions.... no. This is like saying that just because you started a website, you are showing billions of people since most could visit if they chose to do so. Sounds great but is far from reality. With that said, you are right about more exposure.

 

My two cents from a few years of buying/selling coins:

I have only taken coins to sell to a B&M when I absolutely needed the money the next day to pay a bill. This is even at a local coin shop that I have worked, whose owners I consider friends. There have been many good explanations before mine of why they offer the prices they do...they gotta make a living, too.

I have sold a few thousand coins and coin lots on eBay. Don't sell during the summer months, ever, because people are on vacation and realized prices are usually pretty low. Plus, the aforementioned reasons that the Bay is stacked heavily against you...but it can work if you group your items right and have decent photography skills.

I have sold a few thousand coins and coin lots on Craigslist. If you can learn to weed out the crazies and lowballers, this too can work. Good advice has been given already for this.

I have been to a few auctions with my auctioneer friend - and I wonder if this may be a median option for you that may work? Sometimes coins go for a crazy amount...normal sets that I see in a B&M coin shop for $20 going for $45, CC Morgan dollars going for 2x their BV...etc. I think with good advertising, this may be an option for you. I might give a couple of your local auctioneers a call and see what they think - chances are, they'll be able to tell you if there is a heavy demand for what you've got to sell.

Finally, I've had some decent luck selling items here on CT - just thought I'd give them a nod - it's free, if you do PayPal gift there aren't fees there, and you might be able to group your collections and get more than the B&M offered you.

Hope that helps!

 

You may want to try a local auction house as another source to sell your coins. I've been amazed lately at the high prices for coins being paid by the folks at auctions. They seem to have no clue at the value of the coins. You could start slowly with a few select coins or coin groups. If the auction houses are like central NY, they will love to put your coins into the auction because they seem to gain a lot of local interest.

 

Since no one has yet said this, I will.

If you beleive that you purchased problem free coins, take the top 20% of your raw coins, and send them in for grading.

Graded coins are MUCH easier to sell than a mountain of raw coins. It takes much of the guess work out of valuing them. I had a collection of raw large cents and realized quickly they are much more liquid being slabbed. Yes it will cost money to get them slabbed (approx $16 per coin via PCGS Economy), but I firmly beleive you will make more in the long run.

Those who say coin collecting is a hobby not an investment. I ask this question. You INVEST your TIME and MONEY. How is it NOT an investment? Frankly I dont have either of those two to waste. I have made a good amount in coins, and there have been very few circumstances that I have actually lost money selling.

At the end of the day, if you buy quality, you cant go wrong.
My 2 cents.

 

I agree with much of the above, but I would stay far far away from local antique/merchandise/household goods auctions; many are rigged, and you have zero control over what happens. Stay in charge: eBay, CraigsList, flea market (with 3 friends for security), etc.