The dealers are going to have to turn a profit.
If a coin is worth $50, they cannot give you $50 for it, sell it for $50, and keep the lights on.
While that is low, it's not terrible. Most coin dealers are only paying 20-22 times face for coins.
The worst I seen was a fly by night coin buyer that set up in our town. They paid EIGHT TIMES face, and silver was tickling $40 an ounce at the time.
I went to a bunch of yard sales during the summer and asked people if they had any old coins, many replies were "oh I took them to that coin buyer on the square".