Question On APS Circuit Stamp Pricing

I am considering putting together a circuit book of modern mint US stamps, but I am having trouble determining a pricing strategy because these stamps also have value as postage.

Let's consider the case of a stamp like C146, with a face value of 79 cents and a catalog value of $1.75.

Guidelines state stamps should sell at 40-60% of catalog. This means $0.70-$1.05 would be the suggested price range. Now, consider that the APS charges sellers a 20% overhead + 1% insurance fee. This means I would get at most 79% of the value back, or a net return of 0.55-0.83 for this example. If you consider I also have to pay a couple cents for the mount, that means at best I can get 1 or 2 cents over face value. At that price point I'd rather use it as postage for my outgoing mail (I send a lot of mail and could easily use it).

This same stamp on ebay right now is going for $2.08 - and it has sold for that amount recently. The seller has to pay for postage, 60c and ebay Final value free (Let's estimate 50c) so maybe he makes 20c over face in profit. The equivalent APS sales price to get 20c over face profit would be approximately $1.25

So, my question for people that buy from APS sales circuits, what would you consider a fair pricing strategy for modern mint US in APS sales circuits. Would you buy this stamp that catalogs for $1.75 for $1.25 or would you consider it overpriced and pass?

I would purchase one of the numerous face lots that come to auction for 50% of face plus tip.

I think you answered your own question. Just like ebay, there is some minimum price point below which it is not economical to price lots at. And what is your time worth?

Put the higher dollar items in your sale circuit books and use the stamp you mention, and others like it, for postage to mail in the circuits. If you are in a stamp club, you could offer such stamps at face to other members.

Likewise if you sell on ebay, sell the higher dollar items and use the stamp and other like it for postage sending out the lots. There you will get full face for the stamps as postage.

The stamp mentioned is a little better than discount postage since it is one that was often overlooked by collectors who use the post office as their primary source. Collectors that are looking to fill spots rather than filling out a collection aren't going to buy postage lots to gamble that this one stamp is in it and want to spend the time to resell the balance. There are also a fair number of stamps that hardly ever if ever show up in postage lots besides. Show dealers have always sold loads of very modern US, even stamps that might have been available at the USPS booth, at 10% less than Scott catalog.

StamperJD, you've done your research and that's a good thing. I'd try it at $2.00-$1.75. Whatever else you have to sell ideally needs to be in the same frame for the most part to be able to sell, stamps that were often not picked up at the post office. How to figure that? One is going to be oddball values not commonly used like C146, otherwise it's back to researching what things have sold for on ebay. Forget about the shipping cost being any factor in pricing; it's a given, but if a single bought on ebay was part of a larger purchase, what was its actual shipping cost?

What will work to some degree against you is that now that stamp shows have returned, there will be more stamp buyers going there where they couldn't in last few years. And I doubt most show dealers have deviated from selling modern US generally at Scott catalog less 10%, even C146.

For low value 20th/21st century stamps that are not common usage are difficult to fill spots unless bought as a whole remainder collection, so unless there is a large supply, you can ask for your costs (cv+$.30+13%+$.60 postage) on ebay and get it because that's cheaper than buying it individually at most online stamp stores when you consider their minimum shipping fee. If customer buys multiple lots, combine shipping fee for them to make it more attractive. Certainly won't make a living at it for all the work involved though :-)