Would you be more willing to buy a coin knowing the dealer is making minimal profit on it?
SilverEagles92
Posts: 6,787 ✭
I was reading somewhere online, and the person said basically that the prices they were charging were "only" 15% over cost. Would you be more willing to purchase a particular coin from a dealer if you know that he/she was making minimal profit?
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I want a dealer to make enough money so that he stays in business long-term.
The best way to get to be a preferred client of a dealer is to spend money with them - either you're a big client who buys lots of coins, you pay strong money for coins you want or you sell him coins he wants.
The fastest way to become an undesirable customer is to carp about a dealer's profit margins or argue over every penny.
Which would you rather be: a customer who gets offered really nice coins or a customer a dealer runs away from when he sees you coming?
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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
In selling, I sometimes tell the buyer my cost (I don't really care if anyone knows - price is what it is). If I am taking a loss, I certianly make that known!
As a dealer, when I look at a coin to buy I look at what I can sell it for, not what some price guide (except my own) says.
Collectors advise: If you see the coin you really want, don't pass on it because it is 20% - 30% over what you expected to pay.
<< <i>Would you be more willing to purchase a particular coin from a dealer if you know that he/she was making minimal profit? >>
I'm not sure how useful that information is, even if you could be guaranteed it's accurate. If you're experienced enough to know that the asking price is a good value, you're probably not going to pass on a coin you like just because the dealer is making "too much" on the deal. And if you're not experienced and are trying to use a dealer's "minimal profit" as a gauge that you're not overpaying, you certainly wouldn't know from the dealer's implied cost (offered price - 15% or whatever) whether or not *he* overpaid when he bought the coin.
Don't believe everything you read. (like new cars for $1 over invoice)..
IMO, when a dealer says something like "I'll sell it to you for $25 over what I paid" he either bought very poorly and is trying to pass his problem on to you or he is lying.
<< <i>Would you be more willing to buy a coin knowing the dealer is making minimal profit on it? >>
This question could also be asked of dealers - i.e. would a dealer be more willing to buy a coin knowing that the seller (be it another dealer, a collector, etc.) is making minimal profit on it?
And my answer would be who cares? The decision should be solely based on the coin being offered and the price quoted.
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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