Numismatic product net revenue continues to drop
- Published: Oct 31, 2016, 3 AM
Net income from the sale of U.S. Mint products has dropped over the past decade as the bureau’s customer base continues to erode. The Mint’s net income from the sale of numismatic products went from $87.2 million in FY2006 to $66.8 million in FY2015, peaking at $113.2 million in FY2011.
Full video transcript:
This is the Monday Morning Brief for October 31, 2016. I’m Coin World Senior Editor Paul Gilkes.
Net revenue from the sale of U.S. Mint products has dropped over the past decade as the bureau’s customer base also continues to erode.
Mint administrators met October 13 with hobby leaders, collectors and other invited guests in Philadelphia during a numismatic forum to exchange ideas on how to turn around sales and bring more collectors into the fold.
U.S. Mint forum participants call for circulating historic designs: Many said they would like the Mint to issue historic designs in their original specifications for collector sale, and in current compositions for circulation.
According to U.S. Mint statistics, the U.S. Mint’s customer base was over 975,000 in Fiscal Year 2006, reached a peak of nearly 1.3 million in Fiscal Year 2008, and has since fallen to approximately 500,000 in Fiscal Year 2016.
The Mint’s net income from the sale of numismatic products went from just under $90 million in 2000, to well over $100 million in Fiscal Year 2011. Fiscal Year 2016 net income through August 31, 2016, is roughly $25 million.
Some of the decline in the Mint’s customer base since the Fiscal Year 2008 peak can be attributed to a global financial crisis that worsened in September 2008, leading to what became known as the Great Recession. (The federal fiscal year runs from October 1 to September 30.)
During the 10-year period from Fiscal Year 2006 to Fiscal Year 2016, the Mint maintained a customer satisfaction rating of roughly 90 percent, according to information released during the October 13 forum.
Over the past year, the U.S. Mint has made a significant change in how it accepts customer orders. It now accepts purchase orders only through its website and by telephone. The Mint no longer accepts mail orders, although it still alerts customers about some product availability via postally delivered notifications.
During the October 13 forum, the Mint reported that, based on 2015 shipped revenue, the U.S. Mint ranks 91st among Internet retailers, with $422 million in sales.
For Coin World, I’m Paul Gilkes.
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