Comments on: Coins Cost More to Make Than Face Value http://www.getrichslowly.org/blog/2006/05/11/coins-cost-more-to-make-than-face-value/ personal finance that makes cents Tue, 07 Oct 2008 23:21:25 +0000 http://wordpress.org/?v=2.5.1 By: Kellie Hill http://www.getrichslowly.org/blog/2006/05/11/coins-cost-more-to-make-than-face-value/#comment-116687 Kellie Hill Sun, 10 Feb 2008 21:22:46 +0000 http://www.getrichslowly.org/blog/2006/05/11/coins-cost-more-to-make-than-face-value/#comment-116687 everyone sets the price of fuel ending with 9/10 of a penny, that's just to make it look cheaper than it actually is, not because of anything to do with actual change. I want to keep nickles and pennies! if we get rid of them, everyone will take their prices up that tiny amount to make up the difference, and I won't be able to save them anymore! also, I can't help but think one thing, every time I hear this- aren't they making enough "profit" printing twenties, fifties, and especially hundred dollar bills to render this a moot point? everyone sets the price of fuel ending with 9/10 of a penny, that’s just to make it look cheaper than it actually is, not because of anything to do with actual change.

I want to keep nickles and pennies! if we get rid of them, everyone will take their prices up that tiny amount to make up the difference, and I won’t be able to save them anymore!

also, I can’t help but think one thing, every time I hear this- aren’t they making enough “profit” printing twenties, fifties, and especially hundred dollar bills to render this a moot point?

]]> By: Richard Eichenberger http://www.getrichslowly.org/blog/2006/05/11/coins-cost-more-to-make-than-face-value/#comment-111020 Richard Eichenberger Mon, 07 Jan 2008 04:34:35 +0000 http://www.getrichslowly.org/blog/2006/05/11/coins-cost-more-to-make-than-face-value/#comment-111020 Once we had half-pennies. Some states had tax tokens worth a tenth of a cent, made of aluminum or plastic. What a pain! Pennies have outlived their usefulness. And what can you buy for a "big" nickle? Kill them and start with the smallest coin, a dime. Price stuff sensibly--3.99 is $4.00! We'll quickly get used to it. Ignore the complaints of the mining interests and people who set the price of a gallon of fuel to fractions! Once we had half-pennies. Some states had tax tokens worth a tenth of a cent, made of aluminum or plastic. What a pain! Pennies have outlived their usefulness. And what can you buy for a “big” nickle? Kill them and start with the smallest coin, a dime. Price stuff sensibly–3.99 is $4.00! We’ll quickly get used to it. Ignore the complaints of the mining interests and people who set the price of a gallon of fuel to fractions!

]]> By: Brandon http://www.getrichslowly.org/blog/2006/05/11/coins-cost-more-to-make-than-face-value/#comment-104038 Brandon Thu, 08 Nov 2007 19:27:03 +0000 http://www.getrichslowly.org/blog/2006/05/11/coins-cost-more-to-make-than-face-value/#comment-104038 I think it's premature to consider abolishing the penny and the nickel b/c of some quick cost comparison. Manufacturing costing is a tricky discipline and there are many ways to arrive at a "final cost" answer. Is the "cost per penny" ONLY the incremental cost to make one unit, or "loaded" with the costs of overhead? Is it just the copper? If you get rid of the penny & nickel, what is then the cost to the US of changing sales tax, prices, and financial institutions to deal with remainders or rounding? Rather than get rid of small change (which is no small change), it's better to look at ways to reformulate the materials composition in pennies and nickels. Reduce the concentration and you reduce your cost, assuming no other increases to the manufacturing side other than a one-time R&D/project cost. Interesting stats, but I likes my Abe Lincoln and TJ, both on bills and coins. :) I think it’s premature to consider abolishing the penny and the nickel b/c of some quick cost comparison. Manufacturing costing is a tricky discipline and there are many ways to arrive at a “final cost” answer.

Is the “cost per penny” ONLY the incremental cost to make one unit, or “loaded” with the costs of overhead? Is it just the copper?

If you get rid of the penny & nickel, what is then the cost to the US of changing sales tax, prices, and financial institutions to deal with remainders or rounding?

Rather than get rid of small change (which is no small change), it’s better to look at ways to reformulate the materials composition in pennies and nickels. Reduce the concentration and you reduce your cost, assuming no other increases to the manufacturing side other than a one-time R&D/project cost.

Interesting stats, but I likes my Abe Lincoln and TJ, both on bills and coins. :)

]]> By: majeest http://www.getrichslowly.org/blog/2006/05/11/coins-cost-more-to-make-than-face-value/#comment-44 majeest Fri, 12 May 2006 17:25:48 +0000 http://www.getrichslowly.org/blog/2006/05/11/coins-cost-more-to-make-than-face-value/#comment-44 Making the nickel smaller is certainly possible. There will be some unintended side-effects to deal with, though. Specifically, I'm thinking about how that would affect coin-operated vending machines, not to mention the blind. On a similar note, I've long heard the rumor that printing dollar bills is also a net loser. Supposedly, that was the drive behind the Sacajawea (sp?) dollar. People just don't like dollar coins, though. Making the nickel smaller is certainly possible. There will be some unintended side-effects to deal with, though. Specifically, I’m thinking about how that would affect coin-operated vending machines, not to mention the blind.

On a similar note, I’ve long heard the rumor that printing dollar bills is also a net loser. Supposedly, that was the drive behind the Sacajawea (sp?) dollar. People just don’t like dollar coins, though.

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