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Is it common practice for a dealer to offer a buyback on coins they sell?

Billet7Billet7 Posts: 4,923 ✭✭✭
You buy a coin, and later decide to upgrade, downgrade, or sell the coin. Do the dealers that you bought the coin from usually offer some sort of incentive to stay with them and sell back the coins you bought. It seems like a good business practice.
If so, what is usually the percentage that they would pay? If they do buyback, would they give you a higher percentage for the buyback in trade? Say they would usually pay "X" for a given coin, would they pay "X" as a buyback, or would the pay "Y." If the buyback were a trade instead of a cash transaction would they then pay "Z?"

Just wondering what common business practices are. I have done this a few times and there doesn't seem to be a general rule of thumb that I can tell. What has been your experience?

Comments

  • 19Lyds19Lyds Posts: 26,492 ✭✭✭✭
    It depends upon the dealer and it depends upon the coin.

    I don't expect that when the prices fall on the ATB Hockey Pucks that any dealers will be buying them back for you to purchase some other coin.

    On the other hand, a higly popular coin such as an 1955/55 Lincoln or 1932-D Washington would most certainly be bought back since they would be easy to resell. Percentage of buyback is solely upto the dealer and what profit margin s/he expects.
    I decided to change calling the bathroom the John and renamed it the Jim. I feel so much better saying I went to the Jim this morning.



    The name is LEE!
  • I've had dealers offer a buy back in an attempt to close the sale of the coin we were negotiating on. Usually a set $ amount for a specified period of time. Example: buy this coin for $100 now and I'll give you a buy back of $90 good for 60 days.
  • ColonelJessupColonelJessup Posts: 6,442 ✭✭✭✭✭
    One caveat. A dealer may sell a coin on consignment and not want to stock it after it is gone. Some will say this is a quality issue. Perhaps, but often cash-flow is the reason. If slabbed, he should virtually always be willing to take it on the arm at roughly 15% below your purchase price.

    A lot also depends on the value of the coin. You're right, there is no general practice.

    Remember that good faith includes enlightened self-interest. Most will not take the coin back if the cert # is not the same. It's generally assumed that a try for an upgrade is a dealbreaker
    "People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf." - Geo. Orwell
  • LakesammmanLakesammman Posts: 17,494 ✭✭✭✭✭
    Offer, yes. Follow through, no. image
    "My friends who see my collection sometimes ask what something costs. I tell them and they are in awe at my stupidity." (Baccaruda, 12/03).I find it hard to believe that he (Trump) rushed to some hotel to meet girls of loose morals, although ours are undoubtedly the best in the world. (Putin 1/17) Gone but not forgotten. IGWT, Speedy, Bear, BigE, HokieFore, John Burns, Russ, TahoeDale, Dahlonega, Astrorat, Stewart Blay, Oldhoopster, Broadstruck, Ricko, Big Moose, Cardinal.
  • lkeigwinlkeigwin Posts: 16,894 ✭✭✭✭✭
    Andy Skrabalak will credit you 100% as long as you apply it to a more expensive coin. I like that policy and I've used it more than once.
    Lance.
  • DrPeteDrPete Posts: 1,497 ✭✭✭
    I think you will find that the short answer is: it depends. Dealers vary and so do coins.

    I will present two nearly opposing scenarios below.:

    1. If you buy coins from a dealer that handles popular and hard to find nice quality coins, and works on a markup that is "reasonable" (let's say around 10-15%) you can expect these dealers to be very interested in buying back the coins that they sell at a price that is reasonably close to your original purchase price. Don't expect them to buy them back at 100% or more of the previous selling price you paid, unless the value of the coin has increased in the interim; this usually takes multiple years. Dealers only survive in business by making a profit. Dealers have expenses such as overhead that they have to pay, also. Think in this group of coins that are highly sought after like original and nice type coins or uncirculated or proof coins always in demand. Key dates like 16-D dimes, 09S VDB cents, 16 Standing liberty quarters, 11-D $2.5 gold, etc. all are easy to sell, if prices aren't crazy. Demand is strong and supply is limited. There is a lot of competition for these coins and dealers like to buy them.

    2. When a dealer sells less desirable coins, they may or may not want to buy back coins they sell, and may pay a very low percentage of their selling prices, if they will buy them at all. This is partly due to the difficulty in selling such coins which could remain in inventory for an extended period, yielding no profit, and tying up resources. If they pay a low price, they might be able to move them along wholesale to someone else who deals in such coins. Think here of problem coins, very common coins like ordinary wheat cents, common buffalo nickels, and many other coins that can be found in vast quantities. The demand is not as great as the supply. This is the way the market works.

    Hope these comments are useful. I know of some dealers that are very interested in buying back nearly any coin they sell at "reasonable" prices. Check out the Message Board or ask others and you will soon find out which dealers fall into this category.
    Dr. Pete
  • LindeDadLindeDad Posts: 18,766 ✭✭✭✭✭
    I have not heard of any dealers doing Buy Backs on modern era coins. But most of the better known dealers of classics and type coins seem to take it as a business plan.
    Seems like good business to encourage repeat customers and upgrade deals. Most seem to have their own set of rules as to buy back rates and seem to tailor to the deal at hand.
  • MikeInFLMikeInFL Posts: 10,188 ✭✭✭✭
    The dealers I buy from do.
    Collector of Large Cents, US Type, and modern pocket change.
  • BarryBarry Posts: 10,100 ✭✭✭
    Offering a buyback is meaningless marketing hype.
    If you don't agree on the price, there's no buyback.
    Suppose the dealer offers 100% of your initial price if you buy a more expensive coin. In an up market you lose accepting that. In a down market, he boosts the price of the new coin to compensate for his loss. It's no different than a car dealer giving you a great price on a new car and reaming you on the trade-in.
  • Unless agreed upon at time of sale, do not expect an offer to buy the coin back. They may be willing to do so, but do not expect it.
  • fastfreddiefastfreddie Posts: 2,919 ✭✭✭✭✭


    << <i>You buy a coin, and later decide to upgrade, downgrade, or sell the coin. Do the dealers that you bought the coin from usually offer some sort of incentive to stay with them and sell back the coins you bought. It seems like a good business practice.
    If so, what is usually the percentage that they would pay? If they do buyback, would they give you a higher percentage for the buyback in trade? Say they would usually pay "X" for a given coin, would they pay "X" as a buyback, or would the pay "Y." If the buyback were a trade instead of a cash transaction would they then pay "Z?"

    Just wondering what common business practices are. I have done this a few times and there doesn't seem to be a general rule of thumb that I can tell. What has been your experience? >>



    IMHO most do not want to buy back - either as a straight purchase or as down payment on an upgrade. They're in business to sell, not buyback and then resell the same coin again - especially on the same profit dollars that were previously reaped/booked. The only excepption is that if you offer it low enough and they know they have a buyer and can make a quick profit. That being said, I have heard of, on more than one occasion, of those willing to buyback coins, it's at a 20% discount assuming the coin has not moved in value - either way.

    It is not that life is short, but that you are dead for so very long.
  • BillJonesBillJones Posts: 34,949 ✭✭✭✭✭
    Some dealers keep records on the coins that they have sold to regular clients and use that information to fill wants lists and to replenish their stock. When a customer comes along who wants coin X, the dealer contacts that client to see if he or she is ready to sell. Yes, as a collector, you often have to hold the coins for a long time, but for some collectors that's not a problem. And when it comes time to sell the collector has more control over the price he she receives that what they would have in an auction consignment.

    I know a couple of token and medal dealers who do this for items that have a known population of ten pieces of less.
    Retired dealer and avid collector of U.S. type coins, 19th century presidential campaign medalets and selected medals. In recent years I have been working on a set of British coins - at least one coin from each king or queen who issued pieces that are collectible. I am also collecting at least one coin for each Roman emperor from Julius Caesar to ... ?
  • PerryHallPerryHall Posts: 46,996 ✭✭✭✭✭
    Any dealer that sells quality coins should be happy to buy them back in the future at market wholesale prices. A dealer that sells overpriced junk coins never wants to see them again.

    Worry is the interest you pay on a debt you may not owe.
    "Paper money eventually returns to its intrinsic value---zero."----Voltaire
    "Everything you say should be true, but not everything true should be said."----Voltaire

  • coinguy1coinguy1 Posts: 13,484 ✭✭✭


    << <i>Any dealer that sells quality coins should be happy to buy them back in the future at market wholesale prices. A dealer that sells overpriced junk coins never wants to see them again. >>

    Other than that I hate saying "never", I think that is a very good summation.image
  • 291fifth291fifth Posts: 24,778 ✭✭✭✭✭
    I once forced a dealer to honor his buyback pledge. He never bought anything from me again and, as a result, I stopped doing business with him.
    All glory is fleeting.
  • coindeucecoindeuce Posts: 13,497 ✭✭✭✭✭
    I have in the past, and I will continue to offer a buyback for any coin that I sell which I firmly believe would be hard to replace. That hasn't happened very often though.

    "Everything is on its way to somewhere. Everything." - George Malley, Phenomenon
    http://www.american-legacy-coins.com

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