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Topic: How do collection shops make money?  (Read 8687 times)
EyeTradeMoney
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« on: February 04, 2009, 02:47:26 pm »

Just curious. They usually sell what they have at book price or below and often there is a tax to be paid on the purchase so they have to lower their prices even more for a client to want to buy. They must buy their notes and coins very cheap to make a profit... but how?

I understand all the multi-color and birds they got are probably kept from circulation, but the 1954's and older, dominion, chartered banks', etc? Is there some kind of whole sale?

They way I see it, if the number of collectors increase, all old notes will eventually be kept in someone's closet and become impossible to be found.

Already the highly priced 1935's and $4 bills and such are hard to find. You'd have to make special requests to a big collector and in spite of the high prices you'd be lucky if he's whilling to sell. If he is, he'll over-grade knowing that you want the bill badly. All "Buy it now"'s on eBay are ridiculously higher than book value. Heck, I've been collecting for 15 years now (mostly buying) and if someone offered me full book value for my entire collection, I would still not sell !

Either that, or, paper money becomes an old fad like Pokemon cards  :-\
friedsquid
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« Reply #1 on: February 04, 2009, 03:02:20 pm »

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They must buy their notes and coins very cheap to make a profit... but how?
Go to any coin show or shop and see what they will actually offer you compared to book....obviously they will make a profit.
Realize that people have hundreds of reasons to sell....the bottom line is that if someone has to sell...they will sell even if they are not really happy with the price. I'm sure that some buyers take advantage when they can by under grading and underpaying.....but what comes around ...goes around...it's still a small community when eventually things come out in the wash ;D



Always looking for #1 serial number notes in any denomination/any series
friedsquid
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« Reply #2 on: February 04, 2009, 03:34:28 pm »

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if someone offered me full book value for my entire collection, I would still not sell !

Consider yourself one of the lucky ones...not everyone can hang onto their collections as times get tougher and they need to liquidate to get some cash.
The fact is that collecting money is a luxury as far as I am concerned....as many other things are necessities



Always looking for #1 serial number notes in any denomination/any series
LordCo
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« Reply #3 on: February 04, 2009, 04:15:30 pm »

Consider yourself one of the lucky ones...not everyone can hang onto their collections as times get tougher and they need to liquidate to get some cash.
The fact is that collecting money is a luxury as far as I am concerned....as many other things are necessities

I agree 100%.  If I was asked to sell the better items in my collection now for higher than book, I'd refuse... I'm simply not interested.  However, if things went sour and selling meant the difference between my family eating and not eating, I'd sell for a fraction of the value in a heartbeat.
friedsquid
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« Reply #4 on: February 04, 2009, 04:19:03 pm »

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I'd sell for a fraction of the value in a heartbeat.
Let me know when that time comes....if I'm not broke by then 8)



Always looking for #1 serial number notes in any denomination/any series
EyeTradeMoney
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« Reply #5 on: February 04, 2009, 05:11:20 pm »

Go to any coin show or shop and see what they will actually offer you compared to book....obviously they will make a profit.
Realize that people have hundreds of reasons to sell....the bottom line is that if someone has to sell...they will sell even if they are not really happy with the price. I'm sure that some buyers take advantage when they can by under grading and underpaying.....but what comes around ...goes around...it's still a small community when eventually things come out in the wash ;D


Yes I've tried. It's an insult. I can't think of any rational whilling buyers to accept.

I once went to a show and tried selling a 1923 $2 blue seal S VF (book $450), the guy goes "a hundred dollars!" and turns away. I don't answer, I just put the note back in my coat-pocket. I'm a collector but even a regular person would not sell for that much, how much must've he paid for it?
EyeTradeMoney
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« Reply #6 on: February 04, 2009, 05:13:23 pm »

Consider yourself one of the lucky ones...not everyone can hang onto their collections as times get tougher and they need to liquidate to get some cash.
The fact is that collecting money is a luxury as far as I am concerned....as many other things are necessities

Luck has nothing to do with it. I have been saving up for my children's education (and a future house's down-payment and my honeymoon) ever since I was 10. Never bought fancy clothes, never went clubbing or drinking.... okay occasionally and I do take care of myself clothing-wise but never $200 shirts or anything like that.
friedsquid
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« Reply #7 on: February 04, 2009, 05:17:48 pm »

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I just put the note back in my coat-pocket.
and downgraded it to a GOOD ;D



Always looking for #1 serial number notes in any denomination/any series
Punkys Dad
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« Reply #8 on: February 04, 2009, 07:45:16 pm »

Yes I've tried. It's an insult. I can't think of any rational whilling buyers to accept.

I once went to a show and tried selling a 1923 $2 blue seal S VF (book $450), the guy goes "a hundred dollars!" and turns away. I don't answer, I just put the note back in my coat-pocket. I'm a collector but even a regular person would not sell for that much, how much must've he paid for it?

You could draw a few conclusions from this.

1. This is how a dealer makes his money from a desperate and willing seller.

2. Such a low ball offer is a polite way of saying, "I'm not interested in buying that."

3. Go ask someone else.

Some dealers would pay a decent price if he or she already has a buyer lined up for it and flip it for a more modest profit. This way he avoids having it in his inventory for long and freeing up his cash flow.

Dealers are businesses too, they have to pay for their show and shop expenses. Remember there are always other options to selling notes like Auction houses where your market is more geared to the collectors and not just the dealers.

 :)

Teeny guy on my shoulder sez, It's only money mon
alvin5454
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« Reply #9 on: February 04, 2009, 09:48:50 pm »

volume
 

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