Want to see a waste

Plus it is a risk, business can make a loss or a profit and have to take that into account. The cost of keeping inventory, storage, shipping, air time etc. they all add up.

 

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Absolutely true.

 

That's true...they might even take a loss on some of their products to try and bring more customers in.

 

I get weary of hearing Mike Mezak's business conduct being excused by "high costs." He sells coins at those ridiculous prices because he can -- at a huge profit, even with his costs.

 

Wouldn't surprise me if they've had some under performers or sit on a large inventory trying to time the market better on some things.

That's likely mostly true. Their grading fees are probably almost nonexistent per coin which certainly helps them, but when it's said and done I'm not entirely convinced their margins will be what most people think they are. Don't get me wrong I'm sure their profit margin is healthy but I don't think it would be as far out of the industry norm as most people think it would.

Also lets not forget there are shops that sell the same things for even higher prices as well.

 

And I don't trade with them, either.

 

I don't either, I just always wonder why they don't get the attention when they're even more expensive

 

I don't know...and neither do you. I do know about running a business though and costs are always higher than the consumer thinks. I'm not saying they aren't making money...but I wonder how "huge" their profits really are.

 

Profit or not -- and I think the profit is substantial at a minimum -- aside, he clearly takes advantage of an unknowing public and peddles items ranging from worthless -- such as gold-plated state quarters -- to the outrageously overpriced -- his $1799 price for the 2016 Walking Liberty half (still available from the Mint).

He's not selling to us -- he's taking advantage of suckers. It's called ethics -- or in this case, a total lack thereof.

 

Their overhead is so large it's doubtful their margins are out of the ordinary, maybe even what you'd call "thin." TV production is mostly Union.

 

Presuming he is charging $100 for a coin you can get for $50 at the mint. With overheads his profit may be around $25-$30 per coin. Keep in mind he also will have taxes on his profits too. So around 25-30% profit.

Now consider the mint, they too have overheads etc, they sell burnished silver eagles for $45 I believe. The price of silver is $17 so they are making $28 per coin, given their overheads they are probably making a similar retail profit.

 

It doesn't make any difference whether his profit is enormous, small or whether he loses his fanny trying to make a profit, his business ethics are in the gutter. The profit motive is not an excuse for his business conduct.