Selling Coins in Facebook Groups

I've talked before about where to sell your coins.  I've briefly discussed the idea of flipping coins.  I've explained how just a small extra income can improve your situation.  I want to get more in depth regarding selling coins in facebook groups because it is perhaps the easiest platform to use.  Quick, simple, you are probably already on facebook and the best part of all: no commission.

FEES
There are no commissions or listing fees to participate in these groups.  Prices need not be inflated to account for high overhead expenses.
You get to talk with the buyers (I pick up sales all the time far in excess of items sold in groups)
Bad people get removed, often from many groups at the same time.
Its a return to earning a reputation which made the hobby more fun.

SOCIAL ASPECTS
The nature of facebook as a social network offers tremendous advantages that are impossible to find in other sites such as eBay.  The people join groups primarily because the subject of the group is of interest to them.  Gardening groups have gardeners.  Quilt groups have quilters.  Coin groups have coin collectors.  If they are in the coin group, coins are their thing.  The groups have moderators to keep things smooth.  The moderators establish the rules of the group.  In some groups sales are allowed.  In others, its only discussion.  Both types of group are handy.

The social networking aspect is critical to selling on facebook.  The buyers and sellers are able to become familiar with each other, gauge their level of knowledge and sincerity, and develop trust.  Out in the corporate world, they call this Branding and Name Recognition.  Regardless of the label, the fact is people will get to know you.  They will be more willing to purchase from you if you come across as friendly, approachable, and sincere.  As a seller, your personality will become an overwhelming aspect of your ability to attract customers.  There is no room for drama.  There's nobody in the groups that want to get involved.  If you want to talk about romance, emotion, hardship, vice, or subjects not related to coins, you risk losing that reputation that takes so long to develop, even if you conduct the chat over private messages. 

There is a tremendous percentage of the population in these groups who are new to collecting.  There are lots of young people.  There's people who have insecurities about collecting coins and don't really have a good handle on what they are doing.  Bear in mind, these people may well be your customers one day.  When coaching or commenting on coins posted by others, be positive and supportive at all times.  Someone finds a 1981 Lincoln Cent in decent condition and wants to show it off?  "That's a coin in excellent shape and well worth adding to your collection."  At the very least, give it a thumbs up.  You need not offer a shoulder to cry on, but being pleasant and supportive will go a long way in showing the world you are a nice fellow to do business with.  It may be just a few words, but for a new collector, stepping up and posting a blurry photo of a low value coin is a big step.  People relate to their coins, and often take comments personally.  Commenting that a coin is junk, trash, or otherwise unworthy can be perceived as an assault upon their character.  Maintain a positive and supportive posture and you will win their hearts.  Tear them down, you'll drive them away.  Go back over this section.  Learn it, live it.  Its the same everywhere, not just in coin groups.  People want to be told they are doing it well, whatever 'it' is.

There is no room for drama, anger, or discord.  Being involved in an argument will only hurt your reputation.  There is no victory to be won, no point to make, no gain from being right.  Facebook group coin sales offer you the opportunity to develop a substantial income.  Enough to pay your bills.  This is one sandbox you will want to keep clean.  Personal differences may arise, personalities will surely clash.  Pay these situations no heed.  Walk away without comment or involvement.  Being involved in any sort of petty bickering, belittlement, or personal attacks will only hurt your opportunity.  Focus on the income and what it means for you and your family's lifestyle and stay out of it.

TABOO: THE BIG 3
In the groups, avoid discussions of the Big 3: Politics, Religion, and Abortion.  These are subjects that are highly volatile and emotional.  As an example, if you show yourself as a liberal or conservative, you can drive away half of your prospective clients.  If these subjects are on your personal page, people can see the posts if the privacy setting are public.   It may be wise to keep customers separate from your personal page.  Friend them at your own risk.  Discussion of these topics in groups will drive people away and probably get you removed from the group.  You want to bitch about the gubmint?  Rant on about your agenda?  Do this on your personal page.  In the coin groups, talk about coins.  That's what people are interested in, and the reason they are there.

MODERATION
The group administrators and moderators take an active part in the groups they serve.  By removing those who fail to meet the standards set in the group rules, the buyers and sellers have some protection from less scrupulous individuals.  Moderation is what sets facebook apart from eBay.  If the coin is fake, the mods will find out and take it down in a hurry.  If a seller is moving bogus coins, not only is the post going to be taken down, the seller will be booted from the group.  The moderators of some of these groups share information.  If a seller gets removed from one group, there's a good chance they will be removed from others.  Sellers have a strong incentive to tow the line, offer authentic products, handle billing honestly and ship promptly.  At the same time, buyers want to be honest in their dealings and pay promptly.  The result is a heightened level of professionalism.  Better buyers, better sellers, better results.

I am one of several moderators in the group: Coin Opp Sales and Trades Only.  When the group was created there was much discussion as to standards.  We elected to screen sellers before they are permitted to post items for sale in the group.  The first test was if they have sold online before.  Novice sellers make lots of mistakes and may not be able to perform at the level of experienced sellers.  The next test is procedures, for example, does the seller take steps to ensure coins are shipped properly and safely.  Another test is policy: does the seller guarantee a refund in event of an unsatisfied buyer.  Meet these standards, the group is populated with better sellers to attract better buyers.  So far the results have been excellent and the group is about to pass 1000 members at the time of this writing.

MODES OF SELLING
As with eBay, you can offer your coins for sale in a variety of ways: Auction, Buy It Now, a combination of both, or in a trade.  BIN items are straightforward:  here's the coin, $X takes it away.    Auctions are a bit different.  Rather than have a time limit, the auction ends when the BIN is reached, if the listing includes a BIN price, or when 24 hours have elapsed since the last bid.  This is a tremendous advantage for the seller.  The time limit on eBay can often result in bids only in the last few moments, with the clock cutting off potential higher bids.

 When listing your items, be specific regarding terms of sale:
-What is being sold:  how many coins, what date, opinion of grade, price if applicable. If the coin is a die variety, list it's attribution and attributor, for example, CONECA DDO-001 or Coppercoins RPM-002.
-Payment Option.  You can accept whatever form of payment you choose.  Paypal is the preferred method.  USPS Money Orders offer protection from check overdrafts and have no 3% fee.  Personal checks are at your discretion.  Concealed cash is an option.
-Shipping.  If not listed, shipping is assumed to be included in the price. Once offers/bids come in, you don't get to go back and change your listing.
Shipping method: USPS, FedEx, other carrier, overnight, Priority Mail, USPS 1st Class, Media Mail, spell it out.  If tracked or untracked, make a note.  Combined shipping should be mentioned. USPS 1st Class with tracking is $2.62, be sure to account for envelope, shipping label, padding, and whatever else is required for your situation.

I suggest you put together a standard disclaimer containing all the pertinent information that you can add to the bottom of each sale post.
I do this, it saves a lot of headaches. I copy/paste then edit for the specific item:

>>>
---
Grade is my opinion. Coin pictured is the coin you are buying.
This lot WILL SELL once the starting bid is met, to the highest bidder. It is not being sold or offered anywhere else.

THIS IS AN AUCTION.
Starting Bid: $5
Buy It Now: $25
Auction ends when 24 hours have passed since the last bid or BIN is met.

Payment in US funds by Paypal Goods and Services, or Postal Money Order.

Shipping: $3, USPS 1st Class with tracking. Combined shipping on all purchases within a 10 day window in any group. I will ship to Canada for $4.

14 Day Return for any reason gets you the purchase price refunded. No refund on shipping charges.

Bid Early!
Bid Often!
Good Luck!

Lot#:ABC123
<<<

PHOTOS
High quality, clear photos are critical to online selling.  Facebook groups are no different.  Buyers scroll through lists of coins being sold.  The only way to get them to stop and look is to present the best photo possible.  The right photo is about all you have to grab a buyer's attention.  I find a short description with date, mintmark, grade and price is also helpful, but secondary to the image.  If the photo is not clear, the buyer will scroll past you.  Good photos means more people stopping to take a look, more bids, and higher bids.  Decent camera equipment can get expensive.  You'll need the ability to handle full coin images as well as zoom in on the finest details.  With each piece of camera/photo equipment your results will improve as you learn how to use it.  Without a decent camera and the skill to use it, you will not get top dollar for your goods.  You can figure a 20% lower price for the coins you manage to sell if the images are poor.  This is not a big deal when just getting started, but when you are generating sales in the $500/week range, poor camera equipment is costing you big money. 

COMBINED SHIPPING
This brings in the sales.  Not only does the customer save money buying several items with a single shipping charge, the seller saves with paying only a single Paypal fee.  Paypal gets 3%, but they also charge 30¢ for each transaction.  If a customer buys 10 items on a single invoice, the savings is enough to pay for the shipping.  Offering combined shipping works well when you have multiple items being offered at the same time in the same group. 

SALES STRATEGY: BATCHES
I see folks dabble in coins, selling one or two here and there.  It can be successful, but its slow and limited.  Consider selling batches of coins: a dozen different items listed in the same day offers the buyers a chance to pick and choose several items which allows them to take advantage of that combined shipping.  Perhaps you have an item with a low bid.  A customer with several items already on order would be able to place a slightly higher bid since it would incur no additional shipping.  The result is consistently higher bids across the board.
When offering batches of coins, be sure to include a broad spectrum of selections.  All high dollar may not be the best strategy.  Having several low dollar items for sale allows people to pick up impulse items.  While-I'm-At-It grabs by the customer equates to increased sales for you, but you have to offer them. 

SALES STRATEGY: SPECIALIZATION
I'm a Copperhead.  I deal with copper coins: half cents, cents, 2 cents, Canadian cents.  Primarily I deal with Lincoln cents.  I've developed a reputation for having all dates and mintmarks available in a wide range of grades, as well as a fairly sound knowledge of the series so I know when the coin is no good.  I rarely deal with nickels, silver, or currency.  From time to time I'll find something at a great price and offer it for sale but Lincolns are the backbone of my operation.  All my supplies are geared for handling cents.  Tubes, flips, holders, albums, even lighting for the camera is optimized for dealing with Lincoln cents.  Not only is my operation streamlined for handling cents, I'm able to better identify, describe, and market those Lincolns to my potential customers.  Since people tend to stick with a favorite series, I'm better able to service a customer for years as they complete and upgrade their personal collection.  That's job security. 

SALES STRATEGY: MULTIPLE GROUPS
There are dozens of coin groups on facebook.  Many allow selling by BIN, auction, or both.  It is possible to run a route: List coins initially in one group.  If it does not sell, move it to the next group on your list, then the third and on until it sells or you reach the end.  There are tens of thousands of prospective buyers on facebook, but not all in one group.  You'll want to join several groups to garner the exposure that may be needed to sell your item.  I use a primary group, a main group, a starting point, a home base...call it what you will, it's the sales group where I spend most of my time and make most of my sales.  I choose Coin Opp Sales and Trades Only because the sellers are vetted and the moderators take an active role in keeping the group moving in the right direction.  Good sellers attract good buyers. 

SALES STRATEGY: STARTING BIDS
When I offer a coin at auction I have a starting bid.  The coin will not sell unless that starting bid is met.  Below that starting bid, no deal.  Most groups allow this.  The amount is easy to figure out: the price I paid, plus shipping, plus a little bit to cover paypal fees.  I want to at least break even with the starting bid.  If its the only bid, the buyer got a deal and I recover my investment and can hunt for another deal.  Quite often I get to chatting with the buyers through the private message system.  In these chats I have had excellent success in achieving additional sales.  I ask them what they are looking for, offer photos, a price and point out the fact there is no additional shipping charge. 

POLICIES AND PRACTICES
This is the behind-the-scenes nuts and bolts of the operation.  How you do those things you do can have a tremendous impact on how effectively you can maintain sales and provide a high standard of customer service.  How you pack your coins for shipment can have a profound impact on the customers perception of your professionalism and their willingness to deal you you again.  How you handle invoices, billing, inventory control, returns and refunds...all of this needs to be planned in advance.  You'll need accounts: Paypal, Google Wallet, a dedicated checking account.  These are simple enough, get on it. 

REFUNDS
In any business I've owned or operated, a satisfaction guarantee has always been an important aspect of the terms of sale.  When I see an item for sale and "All sales final-no refund-no return" I automatically assume the product is being dumped on the market and is probably crap.  I'm not the only one.  If a buyer is being set up to be ripped off, they will pass you by.  You might draw in some novice buyers, but they wont be back.  Offer them risk free shopping-accept returns with no questions asked. 

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I'll be posting more ideas and experiences about selling coins.  Come back to this blog, keep an eye on it.  You may find something helpful.