So you think coin dealers are bad?

shorecoll

I asked earlier today if anyone new any good record dealers...I've been reading online today and see notes that many used record dealers pay 5% of list value for collectible records...now there's a deal.

Coinosaurus

<< <i>I asked earlier today if anyone new any good record dealers...I've been reading online today and see notes that many used record dealers pay 5% of list value for collectible records...now there's a deal. >>



I know nothing about records. But I do know in comic books there might be a lot of things that list for $1 and are extraordinarily difficult to sell at that price. 5c apiece is probably a reasonable offer for something like that.

droopyd

<< <i>I've been reading online today and see notes that many used record dealers pay 5% of list value for collectible records. >>



For the true rarities and semi rarities, your best bet is selling direct to collectors on eBay. But you need to know what you have and describe it in excruciating detail.

B&M record shops/collectible dealers will in fact pay you pennies on the dollar. Primarily because they will assume people know nothing about the value of the "old and worthless" records they are selling.

If all you've got is beat up old Foreigner albums, well, you can't even sell those for a quarter at a garage sale.

Lakesammman

No, I don't think coin dealers are bad.

coinkat

It all depends what the records are- the problem with records is that there is alot very undesirable records that people think have value-

BillJones

In general I've found that the mark-ups for LEGITIMATE coins dealers OVER the prices that they paid for the coins they offer are among lowest of all hobbies. I’ll be honest and say that I am a retired coin dealer, but when I bought coins from the public, I paid AT LEAST 75% of my selling price and the average number was closer to 85 to 90 percent. I was a dealer who sold items that mostly sold for a few hundred dollars and up, so maybe I was not “average,” but that was my average.

When I bought raw coins, I paid less than the average because I had to factor in the cost of slabbing plus a factor for getting grades that were less than I thought they would be. NO DEALER hits the slab grade every time when he sends coins in for grading. There is always a deviation.

Since I’ve become a retired dealer the prices I’ve gotten from dealers for the coins I sold between 70 to 90 percent of their selling prices. I know this from feed back from one honest dealer to whom I sell some material.

Compared to other hobbies, coins are a bargain. Collectors should be pleased, not angry, at most dealers. Are there dealers who rip-off the public? Sure, but if you know what your certified coins are worth, by in large you won’t be giving away the store when you sell something. Remember, the dealer must pay prices that let him make a living. If you don’t believe in that, then you are living in a fantasy world.

DaveG

Frankly, if anyone thinks that buying records for 5% of list value is a good way to make money, then I encourage that person to do that and, after a year or so, let us know what his experience is.

Here's something I learned in my Economics 101 class: businesses that have fat profit margins will attract competition that will reduce those fat profit margins.

So there's always more to the story about how "little" dealers pay.

Personally, I don't know any "bad" dealers (or even ordinary ones); I only do business with great dealers who offer me the coins I want to buy at prices I'm willing to pay and who offer to buy my coins at prices I'm willing to sell and I do business with those dealers because I want them to be able to stay in business - I want them to make enough money (in their eyes) to make it worthwhile for them to stay in business as coin dealers.

JamesMurray

<< <i>It all depends what the records are- the problem with records is that there is alot very undesirable records that people think have value- >>



Records are not unlike coins in regards collectability , condition is everything as is date of issue or reissue etc

rec78

<< <i>It all depends what the records are- the problem with records is that there is alot very undesirable records that people think have value- >>



My other collecting hobby is 78 rpm records. I do not find much difference excepting that most record dealers are trying to sell, not hold onto records-most records are not worth very much to begin with and the number of collectors is much more limited than coin collectors. It is the same as coins in the aspect that the condition is most important . Most records are worn to the point whereas 5% may be a good offer. A record may look mint buy could play poorly. I do not think that there are many records that sell for more than $3k, while there are many, many coins that sell for more than that amount.
Most people think that the popular records of say Frank Sinatra or Bing Crosby should bring big money--They don't. They were very common and still are, even in high grade. Also- everything done by the most popular artists and even some virtual unknowns, is available on CD--So why should these records retain much value, if all you want to do is listen to them? I record them and burn them to CD. I give all my Frank Sinatra and Bing Crosby records away that come in collections.

If a person likes old music they are most likely to buy cd's or Mp3 format versions, rather than buy old records and a record player. There is a much smaller niche collector for certain types of records. I have purchased many thousands of records and never paid more than $10 for any single one and I have a lot of quite rare 78's and some 45's. The market is just not there. Most record enjoyer's just want the inexpensive ones to listen to, not really collect them for value but for listening pleasure.

Bob

JCB1983

I've only been a coin dealer for 3 weeks, so I may not be able to answer this question. Here is my take. There is a wide variety across the spectrum of ethics within human behavior, and it can all be found within the dealer community. It has been said that we as people are motivated by economic incentive. This could prompt/does prompt some individuals to take shortcuts in order to get the fast dollar. On the other hand the ethical dealer not only retains their ethics, but realizes the long-term opportunity cost of any sort of shady dealing. When dealing with a matter of principal your mind knows what is right, and what is wrong. What I am attempting to do at our shop is this. Whenever an individual who is not in the know brings in a coin, I will show them on the computer what the current market value is (via eBay completed listings/HA realized Prices. Then I tell them what I can offer them. I do not feel like dealers in general are bad people, especially in the coin world.

~Jason

WinPitcher

With records the Jacket cover and the pressing number are important.

rec78

<< <i>With records the Jacket cover and the pressing number are important. >>



Not for 78's. Most didn't have jacket covers.