ethical buying question....

[basicbob101]

I have just recently renewed my interest in collectiing coins after about 40 years off...I think I am fairly knowledgeable about coins, especially the older ones; not really up on all the new issues, especially all the new prices than what I was used to 40 years ago.

 

Question is: I have someone in my church who has some coins to dispose of, knowing me as an honest person who is also interested in coins, they have asked for my help. I stated that I would either help them sell the coins or maybe buy them myself...but not sure of what would be a fair value or mark up. If they sell them to a dealer they won't get full value as obviously the dealer must have some mark up...but what is a fair and ethical markup?

 

Obviously to buy as cheap as possible is the goal of many, but If I were to accept a fee for service, say selling them on ebay is 20% of the sales price fair? If they sell to a coin dealer, and I buy the same coin from the dealer...what is the average discount the dealer would offer? I think it would be fair to the seller if I paid them the same amount the dealer would plus some extra for "good will", maybe 10% better than they could get from a dealer...but I have no idea what that would be. Any help out there?

[GDJMSP]

I have just recently renewed my interest in collectiing coins after about 40 years off...I think I am fairly knowledgeable about coins, especially the older ones; not really up on all the new issues, especially all the new prices than what I was used to 40 years ago.

 

Question is: I have someone in my church who has some coins to dispose of, knowing me as an honest person who is also interested in coins, they have asked for my help. I stated that I would either help them sell the coins or maybe buy them myself...but not sure of what would be a fair value or mark up. If they sell them to a dealer they won't get full value as obviously the dealer must have some mark up...but what is a fair and ethical markup?

 

Obviously to buy as cheap as possible is the goal of many, but If I were to accept a fee for service, say selling them on ebay is 20% of the sales price fair? If they sell to a coin dealer, and I buy the same coin from the dealer...what is the average discount the dealer would offer? I think it would be fair to the seller if I paid them the same amount the dealer would plus some extra for "good will", maybe 10% better than they could get from a dealer...but I have no idea what that would be. Any help out there?

 

 

Howdy Bob -

 

If ya wanna know what dealers will pay, get a copy of the Grey Sheets and they will offer 15% - 20% lesss than Grey Sheet bid. That's pretty standard. You can get the Grey Sheet here - www.greysheet.com You can get copies a month old and download for under $3 each.

 

If you want to see retail prices, then just check realized auction prices. You can do that here - http://coins.heritageauctions.com - for free. Just register at the site and search the Permanent Auction Archives.

[28Plain]

I can only tell you what I usually do in the same sort of case. I ask the person how much they want for the entire lot. If they have an amount in mind and it isn't unreasonable, I may buy the lot myself. If they want more than is reasonable, in my opinion, I will make a counteroffer or direct them to a dealer. If they haven't a clue what they should ask, I may make them an offer or I may refer them to a dealer, depending on how well the coins appeal to me.

 

I don't usually offer to sell anything for anyone and will decline to do so if asked, because of time constraints and because that sort of thing can cause friction if the sale doesn't go the way they hoped it would.

 

Also, I don't consider it unfair to offer someone what I think a dealer would pay, because they could save the trouble of going to the dealer by selling to me and may just avoid being underpaid if the dealer is in the mood to do that.

[just carl]

You leave to much out of the story. If that person is a friend or someone you know real well or someone that knows lots of others in the church, I'd just make a fair offer for the entire mess. A guesstamate type of thing should be OK for a price and only if you plan of keeping the coins for yourself, not resell. If no deal then just tell that person to try to learn as much as possible about the coins and sell them as you wish or try to find someone else that is honest to do it. I say this because if you sell them for a lot more and the word gets out, you are a crook. If you sell them for that person and tell them you got X for them, they would always wonder if you got X+++ and again, your a crook. If you take them and any gets lost anywhere as in the mail, again your a crook. Even if you have them and get robbed, you may be lying and again, your a crook. Summation is to not get TOOO involved if it's dealing with money and with church, clubs, neighbors, etc.

Naturally it is OK to take advantage of a relative but only if a in-law.

[bahabully]

I agree with what's already been said. Be carful not to appear like your taking advantage,, while in fact your taking advantage.... I always tell folks asking me about a lot that if they sell them to me I'm gonna make sure I make money on the transaction... why the heck else would I waste my time. Also refer them to ebay, have them check the prices realized for the coins, and let them sell them there or elsewhere at full retail if they prefer. That generally ends the discussion. However, if they are still willing to transact, then I generally offer 10-20% less than redbook value for key date coins,, and 50-70% less than redbook value for common stuff,,,, with 20% below melt value my ethical low ball. If they are a true friend and your willing to forego any profit, then offer around 10-15% below what you see the items going for on ebay. You'll then be able to sell them on ebay for around that price, ebay will take the 10-15% profit, and you'll only be out abit of time and energy for a good friend.

[28Plain]

I agree with what's already been said. Be carful not to appear like your taking advantage,, while in fact your taking advantage.... I always tell folks asking me about a lot that if they sell them to me I'm gonna make sure I make money on the transaction... why the heck else would I waste my time.

 

Yep, I agree completely. People seem to think that it's unethical to take advantage of the time and expense you have invested in learning about coins. They equate it with cheating someone, but an advantage gained by hard work and money is a fair advantage. I've had people offer me coins they've looked up in the redbook and take the position that I should pay them book value for them or I'm cheating them. I usually tell them that if they want to get full book value for their coins, they can go rent space from the people I'm renting from and put their coins out for sale.

 

I realized long ago that when I have something for sale, it's my responsibility to learn the value of it and to go to the effort of offering it for sale in a venue where lots of people will see it if I want to get the best possible price for it. If I'm unable to invest the time and money into learning about what I have for sale, and getting it positioned for optimum value, then I'll benefit from selling it at a lower price to someone who can and will invest what it takes for them to sell it at a better price.