How do coin dealer mark-ups compare to other types of dealers

Longacre

I believe that generally coins are marked up between 10-20% by reputable coin dealers. I have a friend in the jewelry business. He says that typical markups on jewelry are in the 400-500% range. You probably cannot compare coins with jewelry/diamonds, etc. but does this sound right to anyone? He has an unbelievable jewelry business, so it is probably not an exageration. If this is so, are we too quick to complain about coin dealer's markups?

orie

markups depend on the market.

coinvet

I know 3 major dealers who buy at auctions and you can see the same coins on their site at a 30-35% markup.

As for 400-500% on jewlery...I doubt the margins are that large but they are significant. Keep in mind we are comparing apples to oranges here. Sure there will be a huge margin on costume pieces but on high end [5k+] pieces the margins are much lower. For example the margin on a Swatch is probably 400% but on a Piaget more like 40%.

Are coin dealer markups justified....maybe....if you don't know what you are doing and want to avoid a $5k mistake. However, there are too many dealers playing dealer and are nothing more than a conduit to a coin.

100proof1957

Well that would depend on if its margin or markup and there is a difference !

A 100 % markup is a 50 % margin !

$ 10 coin sold for $ 20 is a 50 % Profit !

cladking

Most businesses have huge mark-ups. Even in the grocery business the price varies
in a huge range and one has to believe they make money even at the low end of the
range. Furniture, jewelry and the like are even higher, of course.

Dealers may make only 10 or 20% on high value coins sold to collectors, but the mark-
ups can be much higher on many items. There are other ways they can make money
with value added and crack-outs and the like. Most mom and pop shops average much
better than 20% but this still leaves them lower margin retailers.

DHeath

The margin in the automobile business is around $2000 per vehicle used, and slightly less new. The spread between wholesale and retail in any of the price guides is around $3500, and vehicles are discounted from retail. That margin is pretty constant whether the vehicle is $15000 or $50000. There are always plenty of dealers willing to sell for a $1500 profit regardless of the price of the vehicle, and there's plenty of competition.

100proof1957

Auto garages routinely sell a $ 10 part for $23, that about 57 % margin.

boyhowdy

I think it is a matter of scale. I just heard a coin dealer say he was happy to make $300 on a $8000 coin. I doubt he would accept less than 4% profit on a $50 coin.

Steve

ER

Where is ANACONDA?

Bear

He was out of the country in Costa Rica for a few weeks.

He should be back sometime next week.

TheRaven

They will make as much as they feel they can make.

If you are in a berg and there is only 1 coin store, he is probably making some pretty good cash.

Look around on the web and see what some websites are making on new material fresh from the mint.