Coin and Paper Money Collecting/Novice Dealer requesting advice.
QUESTION: Hello Joe,
I am a new dealer as of 5 months. I have had a few lucky scores and some setbacks. I deal in bullion and want to get into non bullion coins better, and I will slowly as I learn what things are worth. I use ebay for selling, gauging demand, and pricing. I use Photograde to get an idea of what to grade coins if I feel I have a winner and I strive to low grade it so that I do not exceed expectations. I also try to be better than most. I do not want to be a crook. I was told by a friend that one of my clients will haggle me so I started a 160$ collection (16, 1964 Kennedy's) at 80$ and she took it. I gave her 90$ because I felt guilty. She's a banker and got them for .50 apiece.
1) My question is how do I go about getting more to sell? I have a craigs list ad but I am nervous to put it up because it speaks what I feel to be the truth. Will it work? (Ad below)
Lets be honest here. I am a coin dealer. I am also a collector. I want to buy your coins like Rick Harrison from Pawn Stars. I can make money if I can get it at "The Right Price". But I also believe in being honest. That is my strong/weak point depending on who you ask. I am not going to cheat. I am not going to rip people off. But there is a difference in retail and wholesale. I have to make money on the purchase. Otherwise, I am not a business. That being said know that you have a friend in the coin and bullion business. If you don't want to sell to me, call me and I will tell you if you are getting a fair price. Understand that you want to sell to buyers and collectors to make the most money. Many, but not all on this site are sellers and dealers. If the person pays 30ish for a morgan dollar he is a buyer. He collects morgans. If he pays 20ish he is a seller/dealer. Hes going to resell it or if he is like me, he might keep it. But the seller cannot make money at 30 unless its rare and hes ripping you off. For morgans the magic letters are CC. This coin can run into 1000's depending on condition and date and even the cheapest CC is worth 70-80.
I want to be your coin dealer.
Get a fair deal.
If you don't trust the guy get a second look from me.
Know that this is a hobby for me. I have a good job. Money is not my main motivation. I am good but I want to become an expert.
Text anytime, pics help, Calls after 5:30 pm to 9:00 pm please. (phone#)
2)Where can I look to find a dealers market? Do I have to rely souly on collections coming in or is their a way to get better deals? Im just starting and have close to 500$ so every penny counts. Any advice you can give would be great.
ANSWER: Hello Jeremy,
Now, you say you paid this woman $90 for 16 Kennedy Halves, 1964. Melt value is just about $160 so you bought them for silver, not the coin value. Which is correct to do since they are common and only worth silver value. However, that said, you ripped her off. You offered $80 (rip off) and "felt guilty" so you raised it to $90 (still a rip off).
Chances are you will never see her again. And once she realized what you did, she will not refer anyone to you either.
You got off on the wrong foot. Everyone in business is entitled to a fair profit, but 100% profit is not fair.
I have no interest in helping you become a dealer of numismatics. I sat on the board of directors of The Industry Council for Tangible Assets for 6 years trying to eliminate dealers who conduct business like you claimed to have done.
My advice is change your ways or find a new "profession".
---------- FOLLOW-UP ----------
QUESTION: She bought the coins for face value. 8$. On top of that she over paid me at the bank. She is a banker. She gave me an extra 80 dollars that day from me withdrawing my paycheck which I paid back over what was owed to me and she is grateful because if I was a crook I could have kept the money. I will see her again. I do not see advice but criticism in the comments above. I was expected that she would haggle me and she did not. As in I start low and she moves me up in price. I was expecting to pay 120 if I was lucky. I came seeking advice to correct myself if I had flaws and you have just turned away a person seeking enlightenment. If your first reaction is to push a person away for a mistake then I cannot endorse you, not that your ego cares regardless. You may be an expert but in my opinion you are not professinal.
What she paid is irrelevant. If she paid $20 for each coin, would you have paid her more? Of course not. The most they are worth right now is $10-11 each.
The fact that she made a mistake when she cashed your paycheck and you returned the extra money just means that you know how to "do the right thing".
You say that I criticized rather than enlightened you. I merely pointed out that your action with the banker and what you state in your ad, contradict each other. Paying half of the value is not fair in my opinion. You state that a buyer will pay $30ish for a morgan while a dealer will pay $20ish. I just bought a large lot of Morgans , not mint, and paid $28 per coin. I sold them the same day for $31. I made money. I could never pay $20 per coin and reap a 55% profit and sleep at night. Maybe that's just me but I will not take advantage of someone because they do not have the knowledge or skill that I have. It simply is not right.
I am sorry if I offended you, but it did make you think. Hopefully you understand what I am telling you. No matter how much money you do or don't make, you are the one looking in the mirror in the morning. You have to be content with yourself. You only go around once in life and in this industry, you are only as good as your word and reputation.