Pawn Shop rationale????
stevepk
Posts: 238 ✭✭✭
I always stop for pawn shops to check out their video game inventory. Good deals can be found as all game titles are usually equally priced but not equally valued. That's besides the point of this post. I would like to know what the logic is for pawn shop owners who sell coins. A few examples I've seen that come to mind include:
worn out common date buffalo nickels for $7 each
Eisenhower dollars for $14 each
worn out common date Indian head cents for $10 each
silver eagles for $50 when melt is $30
common date, polished and heavily circulated Peace dollars for $50 each
Most coins found in pawn shops are extremely common with problems and offered at very high prices. What is the logic of a pawn shop owner who asks ridiculous prices for junk coins? Does anyone ever submit to rip off coins from a pawn shop, and why? Are they targeted to the non-collector who has never seen a buffalo nickel and makes the assumption that everything is fairly priced?
In regards to the Eisenhower dollars at $14 each, I spoke to the pawn shop dealer and commented 'I had no idea Eisenhower dollars were worh so much!'. I asked how much they would pay if I brought some in, and they refused to buy any at any price.
How do pawn shop dealers price their coin inventory?
worn out common date buffalo nickels for $7 each
Eisenhower dollars for $14 each
worn out common date Indian head cents for $10 each
silver eagles for $50 when melt is $30
common date, polished and heavily circulated Peace dollars for $50 each
Most coins found in pawn shops are extremely common with problems and offered at very high prices. What is the logic of a pawn shop owner who asks ridiculous prices for junk coins? Does anyone ever submit to rip off coins from a pawn shop, and why? Are they targeted to the non-collector who has never seen a buffalo nickel and makes the assumption that everything is fairly priced?
In regards to the Eisenhower dollars at $14 each, I spoke to the pawn shop dealer and commented 'I had no idea Eisenhower dollars were worh so much!'. I asked how much they would pay if I brought some in, and they refused to buy any at any price.
How do pawn shop dealers price their coin inventory?
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Comments
Most pawnshop and flea market dealers likely pull their numbers out thin air, or maybe consult online priceguides or the Red Book or something like that, with no idea how to grade their coins. Sure, there may be some snake oil involved at times, but I think a lot of it is just common ignorance.
As with anything, though, there are exceptions to the norm. Someday somebody might find a pawnshop dealer with realistic coin pricing (I haven't, but c'mon, there has to be at least one or two out there.) Or sometimes that common ignorance can be a double-edged sword and allow the perceptive numismatist to cherrypick the pawnshop guy.
I've never been able to figure it out.
I spend the Winter in Florida which must have more pawn shops per capita then anywhere else in the US and the story is the same at every one.
Guns and tools and coins at way out prices.
They also have tons of jewelry but I don't know anything about that so I can't comment on those prices.
Beats me..
One place in Tarpon Springs has had an UZI for sale for at least 5 years, I've made him several offers but it's still there.
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<< <i>I suspect logic doesn't enter the equation very often.
Most pawnshop and flea market dealers likely pull their numbers out thin air, or maybe consult online priceguides or the Red Book or something like that, with no idea how to grade their coins. Sure, there may be some snake oil involved at times, but I think a lot of it is just common ignorance.
As with anything, though, there are exceptions to the norm. Someday somebody might find a pawnshop dealer with realistic coin pricing (I haven't, but c'mon, there has to be at least one or two out there.) Or sometimes that common ignorance can be a double-edged sword and allow the perceptive numismatist to cherrypick the pawnshop guy. >>
NGC registry V-Nickel proof #6!!!!
working on proof shield nickels # 8 with a bullet!!!!
RIP "BEAR"
I agree with the presumptions that they are (1) priced for the target customer which isn't you or us, and (2) they expect some haggling and build that into their prices.
I bought an engagement ring from a pawn shop once, and had it appraised by a very reputable diamond dealer, and the value was $200 over what I paid! Not all pawn shop items are overpriced. But most of them are. BTW she said yes and our 5th anniversary is right around the corner
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<< <i>The guy that runs the pawn shop by me makes his money by pricing the coins competitively but only paying like 8X melt for them. >>
If he pays 8x melt, I would be happy to sell to him.
But if he pays 8x face for 90% silver, I would rather sell elsewhere.
An authorized PCGS dealer, and a contributor to the Red Book.
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
<< <i>Alot of people know very little about coins. I ve a co worker who just bought a slick common date Morgan for $100. He had never seen ome before and thought he got a great deal. >>
As long as he's happy don't ruin it for him!
5 CC Morgans for $125
1998 Kennedy set for $49
2008 1/10 Buffalo gold for $250
Coal scrip by the handfull for $2 each
they do price some a little high, but aren't generally knowledgable about the details, and let a lot of things fall through the cracks.
<< <i>
<< <i>The guy that runs the pawn shop by me makes his money by pricing the coins competitively but only paying like 8X melt for them. >>
If he pays 8x melt, I would be happy to sell to him.
But if he pays 8x face for 90% silver, I would rather sell elsewhere. >>
My bad, he pays 8X face for them. Right now selling about 22 X.
<< <i>The rationale is they price their goods for their target customer. You are not the customer they like to deal with. I deal in low income rentals and my renters do not believe or think like other segments of society. I am not saying it is right or wrong just they may look at things differently than others. >>
Bingo. Pawn shop customers are not price checkers. I have a buddy who has a pawn shop in another city with a heavy Mexican population.
They will pay MORE for a used TV than for a new one because they don't shop in the new stores.
ALSO..... Pawn shops make their money on the "vig" from returning borrowers. People will renew loans for a ridiculous amount of time and the money isn't in sales, but in INTEREST.
<< <i>
<< <i>Alot of people know very little about coins. I ve a co worker who just bought a slick common date Morgan for $100. He had never seen ome before and thought he got a great deal. >>
As long as he's happy don't ruin it for him! >>
I strongly disagree. Try to educate your friend so he doesn't go back and buy more slick Morgans at $100 or any other overpriced junk coins from this crook. Then lend or give him a Red Book and suggest a more honest source to buy from. If your co-worker is a good friend, give him a higher grade AU Morgan to take some of the sting out of being ripped off. Sounds like he may get interested in coin collecting and it would be nice to work with a fellow coin collector that you can mentor.
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