Question for dealers

mbbiker

I rented a table for my first time at an upcoming show (held once a year) and am wondering what is the average markup in the coin business. Also if you buy an average coin that isn't a "HOT" coin what % back of bid do you pay (i'm thinking more about Proof sets than single coins)? Thanks for the help.

TomB

This might sound silly but I don't think that there is a typical percentage of bid (above or below) that one uses for different coins. I offer money for coins based upon their "look". I would think that if you have already rented the table then you already have a pretty good idea of what to do. Also, typical monthly shows do not draw tons of material for sale.

kranky

Focus on selling. Buying is easy - selling is hard! Remember, even if you buy an average, not-hot coin at 20%, or even 30% back of bid, you have to sell it in order to make anything. If you can't find someone to buy it, it doesn't make any difference what you paid - you are stuck.

If you are going to dabble in buying, you could reduce your risk by sticking to things that are easily resold - Proof sets, Morgans, etc. Things like that are going to sell if your price is right.

coinguy1

mbbiker,

I am sorry to say that there are no easy answers to your questions.

Dealer mark-ups are based upon a number of factors, including cost, what the current market will bear, the type of coin involved (for instance, a common, generic coin typically trades at a lower mark-up/margin than a rare, esoteric one), how fast a dealer wants to move inventory, how reasonable or greedy he or she is, etc.

I think our average profit (after discounts, credit card fees, etc.) runs at about 15% over cost, though we make more on some coins and lose money on others.

If you find a great coin, you might be able to pay "bid" or over "bid" for it and still make a profit. If the coin is undesirable and or illiquid, however, it might be worth 80% of "bid" or less. By the way, "bid" is somewhat ambiguous, as there are different publications with different bids listed.

Dealers and collectors need to be aware of current market conditions, price levels, competition, supply and demand, etc. There are a lot of things to keep up with.

Sorry I couldn't be more specific but if I had been so, I wouldn't have been giving you realistic information.