Dealers, tell me something (not a slam post, so feel free to enter)

Bochiman

So, I am wondering how the majority of dealers work their pricing (particularly bullion, but it crosses over into "regular" coinage as well).

I have added a poll to this thread to make it easier for dealers to give the info without giving their names if they don't want to.

The reason I ask the question anyway is because I don't think like a dealer....so, if I had something, I would probably not want to sell at a loss, but, if I had to, I would if that is what the market was driving. I am just curious because I have heard it answered many ways (charging going rate, replacement cost, or what was initially paid for it cost) depending on what suited the person at the time it seems. No real consistency.
I am wondering if there is consistency out there.

Russ

You forgot one:

Do you charge based on the sophistication level of the buyer?



Russ, NCNE

Bochiman

<< <i>You forgot one:

Do you charge based on the sophistication level of the buyer?



Russ, NCNE >>



Russ Russ Russ.....you need to increase your reading comprehension levels ....look at the title, I said it would NOT be a slam post (at least, *I* am not making it one), so, I left out your suggested poll result

Btw...shouldn't you be working right now? I think I will have to tell your hard@$$ of a boss that you are slacking again

Bochiman

ttt for the night players and for those that want to see how the poll is going.

Bochiman

Actually,

Let me also add that I would love to know who the dealer is that charges replacement....if that means to him/her what it means to me....that something cost $100 but current replacement cost is $50 so the charge is $50 + x% margin?

Russ

<< <i>Btw...shouldn't you be working right now? >>



What is this thing "work" of which you speak?

Russ, NCNE

Bochiman

<< <i>

<< <i>Btw...shouldn't you be working right now? >>



What is this thing "work" of which you speak?

Russ, NCNE >>



It's this thing that I am still doing right now when my happy butt should be home watching TV and pigging out already

rkfish

Bochiman,

I can only speak for Morgan and Peace dollars but usually the coin and the market itself sets the price. We would
like to make 10% on every coin we sell but it's not realistic to expect that any of the options above would "fit" with the coins we sell.....

First, the coin itself plays a major role in the price.....eye appeal, is it correctly graded in our opinion, is it low, middle, high end for the grade, is it a common date/grade, a tougher date/grade, what we paid for the coin, is it a date/grade that we WANT to have in our inventory, etc.......

Second, what is the "market" paying for this coin NOW ?? We follow prices realized daily on EBAY, Heritage, B&M, CCE, Greysheet & Bluesheet, the Bourse floor of approx. 12 major shows a year, check other dealer websites weekly as to quality vs. grade vs. price, etc........

We have bought coins from a few members on this board (and many other places) and have paid over "ask" for the "right" coins but these are coins WE wanted to have in our inventory......these are coins that most dollar collectors are searching for that can't currently be located or at least very difficult to locate......these are not common date 66's.........

We don't think you can just "assign" a price to coin without taking into consideration the above factors.......
eye appeal, grade, date/mm, and price paid with eye appeal being King imo......

Just one "very small" dealers opinion.......

PS!! Yes.....we make a little more on some coins and we sell some at a loss as we all make mistakes and move on.

BAJJERFAN

What is this thing "work" of which you speak?

I'm like Russ then, whenever I feel like working I lie down till the feeling goes away.

As a dealer would you be willing to pay trends for a coin that you wanted for your personal collection or would you expect to get that at "sheet" too?

cladking

Most of the moderns are bought at 80 to 90% of bid and sold at ask. There are
some market makers and retailers who get retail prices now on some of this mat-
erial. Normal retail is about 35% over ask and many mint and proof sets are being
sold at 100% over ask. There is a strong tendency for dealers who sell mint sets
at ask to be sold out at any given time.

Most wholesalers offer 90 to 100% of bid for sets and 90 to 110% of bid for BU rolls.
Choice and gem rolls bring far more but it's difficult to realize a premium for gem sets
unless they are busted up and slabbed. There is a market but it depends on just
a few buyers.

BillJones

I generally work with a combination of the market price and a certain percentage mark-up. My goal is mark things up by 10 to 20 percent. If I can't make 10% on something I usually don't bother with it, unless it's an expensive item.

And yes if I buy something and the bid goes up like rocket, I charge the market price. I am not a charity.

Bochiman

Thanks for the replies dealers.

The ones who have answered are, of course, actual coin dealers, and I understand the answers completely.
I guess the piece I am still wondering, and missing, is the "commodity" portion.....SAEs, GAEs, and other very common items that are more affected by, say, the PM market.