Head's Up on Coin Prices

[+Landsharkz]

We’ve been following the thread about costs of coins and would like to advise that on January 1, 2008 metal prices at our mint are going up 10% and this will directly impact the cost of coins whether wholesale or retail.

 

We received a long letter from the mint last month letting us know of their situation and the reason behind the impending price increase. We would like to share an excerpt from this letter with you:

 

“China government’s sudden changes in policies and tax laws have caused a lot of manufacturers to lose money and even close their productions. The manufacturers that deal with metal products are mostly affected, plus the sharp appreciation of gold & RMB and the increase of all kinds of livelihoods, therefore, price increasing is inevitable.

A: Since July 1, 2007, metal products’ tax refund for export business has been dropped from 13% to 5%. Therefore, we have been absorbing the 8 % for six months.

B: Some local policies have been established specifically by the highly developed coastline cities. The policies are as follows:

a. Labor Guarantee Contract from Jan. of 2008

b. 5 working days per week instead of 6.

c. 40 working hours instead of 48 hours per week

d. Overtime wages from Monday to Friday—1.5 times of standard wages

e. Double pay for Saturday and Sunday

f. Triple the wages for National holidays

g. Severance pay is included in the Contract too.

C: People’s livelihoods have been increased drastically due to the fast rising oil price. The inflation has reached 6.5% in 2007.

E: Gold price has jumped the highest point in the last 28 years.

F: RMB appreciates about 9% within one year.

 

To adapt to the new government policies and inflation, we should have reasonably raised the price by 16% (This increase will not absorb the workers’ pay raise in 2008). To faithfully cherish and support our clients, we only made about roughly 10% increases on our items….

…we lawfully abide by government regulations, also to support the global environmental movement, 95% of the raw materials we choose or the equipments we set up go along with the global standards. The sewage treatment for plating procedures is environmentally friendly. Our strong sense of responsibility, caring attitude, and expertise have earned respects from the clients…”

 

At Landsharkz we are very happy with the workmanship at the factory where we have our coins produced. We also see the value in improved environmental standards globally, improved working conditions, reasonable remuneration and improved quality of life for the workers. We expect no less for ourselves! We all have experienced the effects of government policy, tax changes and rising oil prices and now the effects in Asia are going to ripple across the ocean to affect folks who collect custom, limited edition art in the form of a metal token/coin.

 

Feel free to post comments here, but this is mainly fyi.

Chris and Helen

[+fairyhoney]

So, 10% of a standard coin which seems to b going for $10.00 will increase it by $1.00? Shouldn't be Too much of a problem. (sometimes it's the shipping that gets us )

[+Renegade Knight]

So, 10% of a standard coin which seems to b going for $10.00 will increase it by $1.00? Shouldn't be Too much of a problem. (sometimes it's the shipping that gets us )

 

Combine that with the Dollar losing value against Chinese money. It will magnify to 20% or more. Our interest rates are low as well. That tends to create yet more demand for the money in countries wiht higher rates. I'm not sure where China sits but if they raised their interest rates (which would be good policy to keep their economy from overheating) it would work against the exchange rate still more...

[+fairyhoney]

So, 10% of a standard coin which seems to b going for $10.00 will increase it by $1.00? Shouldn't be Too much of a problem. (sometimes it's the shipping that gets us )

 

Combine that with the Dollar losing value against Chinese money. It will magnify to 20% or more. Our interest rates are low as well. That tends to create yet more demand for the money in countries wiht higher rates. I'm not sure where China sits but if they raised their interest rates (which would be good policy to keep their economy from overheating) it would work against the exchange rate still more...

 

[+Hula Bum]

So, 10% of a standard coin which seems to b going for $10.00 will increase it by $1.00? Shouldn't be Too much of a problem. (sometimes it's the shipping that gets us )

 

But it's not 10% of 10.00, it's 10% of 3.00 or so. 10.00 is market value, not mint price. The metal price increases over the past year are not matching the increase in coin prices.

[+fairyhoney]

So, 10% of a standard coin which seems to b going for $10.00 will increase it by $1.00? Shouldn't be Too much of a problem. (sometimes it's the shipping that gets us )

 

But it's not 10% of 10.00, it's 10% of 3.00 or so. 10.00 is market value, not mint price. The metal price increases over the past year are not matching the increase in coin prices.

 

So does this mean that coins should actually be chaeper in price than they are ?

[+Droo]

FWIW.... Taxation policies in China are very lax on new industries. The first 5 years are essentially tax free as the govt tries to stimulate growth. To avoid paying taxes at the end of the initial period some manufacturers choose to close down and open up elsewhere.

 

Edited redundancy.

Edited December 14, 2007 by Droo

[Hogwild Stuff]

We are at this point still thinking that we will be able to stay under the $10.00 price except for possibly the largest and most complex coins. It is correct that it is not a 10% increase on the total cost of making and selling a coin. Total Costs might include the following:

 

- Artist

- Icon

- Tracking Numbers

- Die Fees

- Manufacturing Cost

- Engraving of tracking number (part of manufactuing)

- Packaging

- Shipping from China to destination

- Customs

- Shipping from Vendor to end customer.

 

What appears to be going up are the manufacturing costs and die fees. There has been some inflation of shipping costs as well because of increasing fuel costs.

[+ThirstyMick]

I can deal with these reasons Not only is that understandable, it's a good thing.

 

b. 5 working days per week instead of 6.

c. 40 working hours instead of 48 hours per week

d. Overtime wages from Monday to Friday—1.5 times of standard wages

 

but yeah 10% of the mint's cost != 10% increase in total cost.

[+Renegade Knight]

I can deal with these reasons Not only is that understandable, it's a good thing.

 

b. 5 working days per week instead of 6.

c. 40 working hours instead of 48 hours per week

d. Overtime wages from Monday to Friday—1.5 times of standard wages

 

but yeah 10% of the mint's cost != 10% increase in total cost.

I liked the tripple time on holidays.

I wish the USA followed the Aussies lead in vacation er...Holiday.

[+fox-and-the-hound]

So, 10% of a standard coin which seems to b going for $10.00 will increase it by $1.00? Shouldn't be Too much of a problem. (sometimes it's the shipping that gets us )

 

But it's not 10% of 10.00, it's 10% of 3.00 or so. 10.00 is market value, not mint price. The metal price increases over the past year are not matching the increase in coin prices.

 

3.00 or so? Where have you found those mint prices anywhere? 2 years ago when I had a coin made the raw price was 3.50 and the last raw price I've seen was just over $6 (unique shape/trans enamel/multi-level).

 

edit to add: not naming coins, what raw prices has everyone else been seeing? curious now!

Edited December 14, 2007 by fox-and-the-hound

[avroair]

So, 10% of a standard coin which seems to b going for $10.00 will increase it by $1.00? Shouldn't be Too much of a problem. (sometimes it's the shipping that gets us )

 

But it's not 10% of 10.00, it's 10% of 3.00 or so. 10.00 is market value, not mint price. The metal price increases over the past year are not matching the increase in coin prices.

 

3.00 or so? Where have you found those mint prices anywhere? 2 years ago when I had a coin made the raw price was 3.50 and the last raw price I've seen was just over $6 (unique shape/trans enamel/multi-level).

 

edit to add: not naming coins, what raw prices has everyone else been seeing? curious now!

 

I think HB means directly from the mint. $6 would be a quote through a vendor. And $2.25 of each coin is the tracking and the icon. (Still, even intricate coins shouldn't be above $10.00 or else they had better have lotsa gems!).

[+Shilo]

So, 10% of a standard coin which seems to b going for $10.00 will increase it by $1.00? Shouldn't be Too much of a problem. (sometimes it's the shipping that gets us )

 

But it's not 10% of 10.00, it's 10% of 3.00 or so. 10.00 is market value, not mint price. The metal price increases over the past year are not matching the increase in coin prices.

 

Thanks for pointing that out!!!!

[+Team JSAM]

I think HB means directly from the mint. $6 would be a quote through a vendor. And $2.25 of each coin is the tracking and the icon. (Still, even intricate coins shouldn't be above $10.00 or else they had better have lotsa gems!).

 

We have not been able to make a coin that was under 3.00 directly from the mint since 2006. The price has slowly been going up throughout the whole year if you add some special features and different enamels it won’t be hard to get your mint cost up around 5-6 per coin.

 

J

Edited December 16, 2007 by Team Jsam