Pricing Strategies

CoinDuffle offers two pricing models to accommodate the full spectrum of products dealers sell — from numismatic rarities to bullion commodities. Understanding when and how to use each model is key to pricing competitively and maximizing your sales.

Fixed Pricing

Fixed pricing is the straightforward approach: you set a specific dollar amount and that's what the buyer pays.

How It Works

Enter a price in dollars and cents (e.g., $1,249.99). The price remains constant until you manually change it.

When to Use Fixed Pricing

• Numismatic coins — Rare and collectible coins whose value is driven by rarity, condition, and demand rather than metal content
• Graded/certified coins — PCGS and NGC certified coins where the grade determines the value
• Collectibles — Non-metal items like currency, tokens, medals, and accessories
• Premium numismatic items — Coins with significant numismatic premium over their metal value (e.g., key-date coins, error coins)
• Items with stable values — Products whose price you don't need to adjust frequently

Advantages

• Simple to set and understand
• Predictable margin on each sale
• No need to think about spot price fluctuations
• Works for any product type

Disadvantages

• Requires manual price updates if the underlying metal value changes significantly
• Can become uncompetitive if spot prices move and you don't adjust
• Doesn't communicate value relationship to metal content

Metal-Based Pricing

Metal-based pricing is CoinDuffle's dynamic pricing system designed specifically for precious metals products. Your price automatically adjusts throughout the day as spot prices move.

How It Works

The formula is:

Price = (Spot Price × Weight in oz) + Premium

Example: A 1 oz American Silver Eagle with a $4.50 premium:

• If silver spot is $30.00/oz: Price = ($30.00 × 1) + $4.50 = $34.50
• If silver spot is $32.00/oz: Price = ($32.00 × 1) + $4.50 = $36.50
• If silver spot is $28.00/oz: Price = ($28.00 × 1) + $4.50 = $32.50

The spot price updates regularly throughout the trading day, so your product price always reflects current market conditions.

What You Set

When using metal-based pricing, you configure:

1. Metal type — Gold, Silver, Platinum, or Palladium
2. Weight — The precious metal content of the product
3. Weight unit — Troy ounces (oz), grams (g), or kilograms (kg)
4. Premium — Your fixed dollar premium over spot value

The premium is where your profit comes from. It covers your cost basis, margin, and overhead.

When to Use Metal-Based Pricing

• Bullion coins — American Eagles, Canadian Maple Leafs, Krugerrands, Philharmonics, etc.
• Bullion bars — Recognized brand bars from PAMP, Engelhard, Johnson Matthey, etc.
• Rounds — Generic silver and gold rounds
• Junk silver — Pre-1965 US 90% silver coins sold for metal content
• Any product priced primarily on metal content — Items where the spot value is the dominant price factor

Advantages

• Prices stay competitive automatically as spot moves
• No need to manually update prices throughout the day
• Buyers see real-time, market-relevant pricing
• Builds buyer trust — they can verify the math themselves
• Saves enormous time when you have hundreds of bullion listings

Disadvantages

• Your margin (in percentage terms) changes as spot moves, though your dollar premium stays fixed
• Not appropriate for items with significant numismatic premium
• Requires you to think in terms of premium rather than final price

Setting Your Premium

The premium is the most important pricing decision you'll make for metal-based products. Here's how to think about it:

What Premium Should Cover

1. Your acquisition cost above spot — What you paid over spot to acquire the item
2. Your profit margin — The profit you want on each sale
3. Payment processing fees — Stripe's standard processing fee of 2.9% + $0.30 (see Fees & Pricing)
4. Shipping costs — If you offer free shipping, build it into the premium

Competitive Premium Research

Before setting your premiums, research what similar products sell for:

• Check current listings on CoinDuffle for comparable items
• Review prices on major bullion dealer websites
• Monitor eBay sold listings for market price data
• Consider the current supply/demand dynamics for the specific product

Premium Examples by Product Type

These are approximate ranges and vary with market conditions. Your premiums should reflect your actual costs and competitive landscape.

Combining Strategies

You can use different pricing strategies for different products in the same store:

• Metal-based for your bullion inventory (Eagles, bars, rounds)
• Fixed for your numismatic inventory (graded coins, rare dates, error coins)

This is the most common approach for dealers who sell both bullion and collectible coins.

Pricing Tips for Success

Stay Competitive

• Check prices regularly — Even with metal-based pricing, your premiums should be competitive
• Adjust premiums for market conditions — Premiums compress when supply is abundant and expand when demand surges
• Factor in your total value proposition — If you offer better photos, faster shipping, or stronger guarantees, a slightly higher premium is justified

Volume Considerations

• Lower premiums = higher volume — If you want to move inventory quickly, price aggressively
• Higher premiums = higher margin — If you have rare or hard-to-find items, you can command higher premiums
• Consider quantity discounts — Use Discounts to incentivize larger purchases

Psychological Pricing

• Round premiums ($5.00) feel cleaner than odd premiums ($4.73)
• "Over spot" pricing is transparent and builds trust
• Showing the spot price breakdown helps buyers understand your value

Monitor and Adjust

• Review your sales data monthly to see which products and price points perform best
• If a product isn't selling, try lowering the premium before removing the listing
• During high-demand periods (market volatility, economic news), premiums across the market tend to increase — adjust accordingly