I
23
that responsibility for pricing rests with the client although its advice is always offered.) The ability to obtain such prices, which are set to the limit of what the market will bear, must rely, at least in part, on the high intrinsic values of the coins (see Section 8.5)
and their comparative rarity. Where the issuing authority's royalties
are based on the market prices of the coins, the higher the retail price the more beneficial is the outcome for both parties. The same is, evidently, not true where royalties are calculated on the face
value. The degree of control over the pricing and thus the profitability for the promotional company of issues produced under
US-style contracts varies. In all but one of the cases examined the company may increase the retail prices of its coins without allowing for any change in the royalty payment to its client. The Solomon Islands Monetary Authority, which recently concluded an agreement with World Coin, has, however, pressed for and obtained a clause specifying that, should the company's retail price to customers rise by more than 25% over the initial agreed price, the royalty payments will be subject to review. Such a clause would at least help prevent possible excess profit-making by the company concerned.
TABLE 2
Retail Prices of Selected Numismatic Issues
Territory
Bermuda
Year
Denom.
Quality
Price
Royalty Receipt
1975 B$100 (US$100)
Proof Specimen
US$140
US$15
US$100
US$7.50
BVI
1975
US$100
Proof
US$140
US$15
Specimen
US$100
US$7.50
1975
US$1.91 set
Proof
US$25
US$1.22
Specimen
US$12.50
US$0.74
Cayman Islands
1975
CI$50(US$60)
Proof
US$90
US$10
1975
CI$100 (US$120)
Proof
US $200
US$20
1977
CI$25 (US$30)
Proof
1977
CI$100 (US$120)
Proof
US $45 US$200
US$5
US $20
Falkland Islands
1973
18 p
Proof
£4.50
1973
£8.50 set
Proof
£450
£1.12 £112.50
1977
50p
Proof
£12.50
?
Gibraltar
1975
£175 set
Proof
£417.50
?
£ 100
Specimen
£130
?
£50
Specimen
£65
£25
Specimen
£32.50
?
1977
25p
Proof
£12.50
?
ป ป ป ป ป
?
Turks and Caicos
1976
US$ 20
Proof
US$30
US$4
Islands
Specimen
US$20
US$3
1976
US$100
Proof
US $175
US$16
Specimen
US$100
US$8
1977
US$25
Proof
£25
US$4
(US$43)
Specimen
£18.25
US$3
(US$31)
1976
A$5 (£3.20)
1976
A$100 (£64)
Proof
£9
£2.25
Proof
£140
£35
Tuvalu
(Sources:
Questionnaire returns and advertising literature)