Fair spread between ask and sell prices at coin shop?

[tgcougar]

OK, so I was not able to search anything in Lansing, MI, for a variety of reasons (chief not having enough foresight to order half boxes BEFORE I went - doh!!) but I was able to stop into a (the?) local coin shop to peruse things and pick up a folder for my daughter.

While there, I asked what I could sell a 90% half for and was told $11.15. Their price to sell one to me was $13.50, which is about a 20% markup. Is this in the range of what others here experience? Even with feeBay fees (which are paid in part, or in full, by the buyer, in many instances) this seemed like too much of a spread, although I do not begrudge ANY business making whatever profit they can.

Love to hear your thoughts.

PS I'm getting a box EVERYDAY this week! The teller ordered $5,500 worth last time (instead of $500) and was all distraught telling me. I said "No problem, I'll take one a day until they're gone. I just can't carry more on public transportation!! Results (and hopefully, some coin 'porn') to follow!

Tom

 

[captainfwiffo]

For a dealer, that's a pretty small markup. I've heard of a lot worse (like offers of $0.30 for war nickels, etc.)

 

[ArkieBassMan]

I'd say 20% is a very small markup as far as coin shops go. I'd even venture to say that the average small business would have trouble staying afloat with only a 20% markup.

There really is no such thing as "fair" when it comes to this. A high volume coin shop might be able to turn a good profit at less than 20%. A tiny shop might have to make 100% just to pay expenses and break even.

 

[DarkRider23]

For a dealer, that's a pretty small markup. I've heard of a lot worse (like offers of $0.30 for war nickels, etc.)

That's a very small mark up, especially if they'll have to sit on it for a while before someone actually buys it. I doubt many shops would even survive with a 20% mark up with all the overhead they have.

 

[quiksilver]

Ranges change according to the area , shop , show , price pattern , etc.

Shop around for the best buy sell prices. If you live in an area with limited choices save up either way for a big coin show which i find to have the best buy sell prices unless you get lucky and find a person willing to give better prices.

 

[fistfulladirt]

If you went to the shop that I think you did, that place is kinda stuffy. They charge a "sorting fee" if you want to pick through the pile. Even if you are buying quantity.
You can do better buying if you shop around.
I edited my post to avoid slander. That place sucks.

 

[Generic_Lad]

It really depends on the shop. Really a 20% spread is pretty good, a dealer offering $11.15 for a $12.40 bullion coin isn't too bad, especially compared to "cash 4 gold" people. Also, while $13.50 might be slightly high for generic bullion, it isn't outrageous.

I agree with selling at a major show if you want to sell, especially if you are a collector, dealers might be looking to get rid of a pricey but hard to sell coin for a fairly low price if you sell them enough easy to sell junk silver. If you are looking for cash, a coin show is about the only place where you can get cash offers from 25+ dealers all in the span of an hour.

 

[Bigheed]

i've hit a couple shops around town and it seems to me that they work the margin in terms of x FV not %. The ones doing more volume like CNI in Los Angeles are working a 4x FV spread for 500 and 1000 bags, slightly more if you are less than 500 Face, maybe 5-6 x FV spread depending on your negotiating skills .

 

[clovis97]

My local shop has about a 2 point spread between buying and selling. Buys at 23X face, and sells for 25X face, for example.

I don't know how he makes enough to stay in business, but he lives frugally and pretty simply...and he owns the building where his shop is outright.

 

[Bigheed]

ya rent can be a killer so if he owns / lives there he has WAY less overhead than the competition.

 

[weighit]

Last week I went to a coin show and sold $450 in 1964 and older silver coins, walked out with $10,147.00 pretty close to 23 times face. Took some talking to various vendors to find the guy that would pay, but I felt I did OK.