• When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission. Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.


This topic is now archived and is closed to further replies.

Business Practices for Collecting?

1 post in this topic

The question is are basic business practices applicable to the casual collector.


Late again, but I was out of town the week before last and didn't really have anything to say last week.


Since I didn't have internet access while I was gone, it gave me time to think about my collection. Was I being smart about my coin purchases? Was I following basic business practices? I can truthfully say that I couldn't say yes to either question.


When I got back I turned to my database only to find it sorely lacking in capability to answer my questions. So, I've been doing it the hard way using pencil and paper (actually a spreadsheet). Still it involved transferring the numbers by hand.


The first question that I asked was what was I really spending on a coin. To answer that, I devised a price-point ratio. What was my real cost for a coin verses the point value awarded for that coin? The result surprised me to say the least.


I'd been unconsciously setting this at $0.25/point for awhile. The real answer is that it depends upon the denomination of the coin. The range in the past varied from over $7 for a red One Cent to a low of $0.13 for a Quarter and a real low of $0.07 for an MS66FT Dime. In fact, over the entire range of Quarters (1946-1959) purchased the average ratio was $0.18 per point.


I've started testing this with a purchase yesterday of four new Quarters with an average ratio of $0.17 ($162 including shipping for 965 points). I intend to continue this analysis for the other denominations. Hopefully, it will make my future purchases more "business smart."


As an aside, I also got a second MS66FBL Franklin Half on eBay last night ($0.24/point). I've been skunked so many times in other auctions that last night vindicated the old adage of "try, try again."


For those who can't tell, I'm a numbers junkie and get as much fun playing around with the numbers as I do in collecting.


See more journals by pnunemacher

Link to comment
Share on other sites