Coin Dealers/Shop Owners

[zvandehey-migration]

Hey all,

 

New on here. Very nice forums BTW. I just wanted to see if most people on the forum are collectors or dealers? If you are a dealer how did you get your start? I've been toying with the idea of opening my own shop but have no real idea on how a person builds up a stock to sale?

 

Thanks!

[jayman1970]

just a collector,welcome to the boards!!!

[Bugmann1974]

Just a collector here. Welcome!

[zvandehey-migration]

Thanks for the welcome notes!

[Oldtrader3]

Welcome, I am also a collector.

[nunfa0]

Welcome, collector here too!

[PerryHall]

Welcome. Most of us here are collectors but that doesn't mean we don't buy and sell coins to support our collecting goals.

[Dcoin]

I would think it would be just like any other storefront. You need to find the right supply of goods, market your store and build your customer base. If you do those three things well then you're golden.

 

Seems down right easy don't it

[ldhair]

Welcome.

Are you talking an actual building or an internet business?

 

[JStull]

Hey all,

 

New on here. Very nice forums BTW. I just wanted to see if most people on the forum are collectors or dealers? If you are a dealer how did you get your start? I've been toying with the idea of opening my own shop but have no real idea on how a person builds up a stock to sale?

 

Thanks!

 

My suggestion to you before opening your own coin shop, is take years of studying grading of coins.

 

If you can't grade coins, you won't have a successful business.

 

Welcome.

[zvandehey-migration]

I was thinking a store front shop, although things seem to be going all to the Internet. I'm just trying to figure out how one would be able to find a large stock of coins without taking years to do so. I'm sure that everyone on here has had a thought about starting a shop at one point though.

[Conder101]

Usually they take years to do so, or have a LOT of money bankrolling them, or they buy out an existing dealership.

[Houston Investor]

I would suggest the book by David Bowers: How to Become a Successful Coin Dealer.

 

A shop has tremendous overhead and is a major investment. Not all succeed as numismatics is a highly competitive business with many experienced big money players.

[BillJones]

I started as a dealer at the coin shows. I brought with me a lot of knowledge and experience as a collector. One dealer, who had a shop, advised me to have some angle or angles that would set me apart from other dealers. My "grabbers" were that I maintained a large stock of Civil War tokens, I published a monthly newsletter, and I really worked on filling want lists. Most dealers ignore or don't do much with want lists these days.

 

I came in with a broad knowledge of American numismatics which made it easy for me to get up to speed with specialist collectors. For example I had a customer who collected middle date large cents. That was not my field, but I had the major reference books and was able to get up to speed quickly.

 

Opening a shop adds a lot of overhead expenses to your costs. You might get some people walking through the door with stuff, but I've heard from other dealers, a lot of that material has been bought up. You also can't pay as well as show dealers or dealers with only office space because of your overhead expenses. Some collectors label "brick and mortar" dealers as "crooks" because of the lower prices they might pay, BUT they have high operating expenses that have to be covered if they are to stay in business. By in large numismatics is a low mark-up business, and collectors should be thankful for that.

 

I too would recommend the "How to be a coin dealer" book by David Bowers.

 

Becoming a coin dealer is not an easy business. You need to know how to grade coins, how to spot counterfeits and have a very good knowlege of the market for the items you sell.

[zvandehey-migration]

Thanks for all the great info bill! I'm going to check out that book soon. Seems like coin shows are the way to go

[Bruceswar]

There are lots of ways you can get into this industry. You will not buy 40,000 coins overnight, but if you do it right you can make some money while doing it over time.

 

If you are really hurting for inventory you can always buy off another dealer. Someone like Southpark coins usually sells to dealers at close to bid or bid sometimes.

 

I say let it come to you. Display what you have and watch it grow. Knowledge is power.

 

 

Good Luck!

[Mr.Mcknowitall]

Combine with a pawn shop, or in the alternative, next to one.

 

Respectfully,

John Curlis

 

[mvc-migration]

Collector for years and now have my own website to buy and sell part-time as I have a day job and likely could never make enough buying and selling coins to allow me to quit my day job. As suggested before, you needs lots of knowledge (and I still learn every single day) otherwise you will lose bigtime. Counterfeits, etc.

[zvandehey-migration]

Yeah it would be awesome to have something online that was part time. I would love that

[James_OldeTowne]

Hey all,

 

New on here. Very nice forums BTW. I just wanted to see if most people on the forum are collectors or dealers? If you are a dealer how did you get your start? I've been toying with the idea of opening my own shop but have no real idea on how a person builds up a stock to sale?

 

Thanks!

There are some forum members who constantly predict the demise of the brick-and-mortar shop. The claim that eBay and the internet have put such shops out of business. I think that is pure fictional nonsense. On the contrary, the internet has given coin shops a powerful tool and outlet in which to buy and sell coins. It isn't just collectors who benefit from the internet! Case in point: the number of coin shops in the St. Louis area is very easily at least DOUBLE what it was ten years ago.

 

My point is that a shop is quite difficult to start, but far from impossible, and if there ever was a time to do it, now is probably it. I don't think you necessarily need a ton of inventory to start. Rather, what you need is excellent, precise expertise in dealing in bullion and popular modern issues. And I suspect the best margins for you to pursue will be in foreign coins. Your strongest tool by far will be in the coins that come in off the street.

 

I would say that THE MOST important thing of all is a high-traffic location that meshes well with a consistent, effective marketing strategy. Your money is mostly made on the BUYING side, not the selling side.

[coinman_23885]

Hey all,

 

New on here. Very nice forums BTW. I just wanted to see if most people on the forum are collectors or dealers? If you are a dealer how did you get your start? I've been toying with the idea of opening my own shop but have no real idea on how a person builds up a stock to sale?

 

Thanks!

There are some forum members who constantly predict the demise of the brick-and-mortar shop. The claim that eBay and the internet have put such shops out of business. I think that is pure fictional nonsense. On the contrary, the internet has given coin shops a powerful tool and outlet in which to buy and sell coins. It isn't just collectors who benefit from the internet! Case in point: the number of coin shops in the St. Louis area is very easily at least DOUBLE what it was ten years ago.

 

My point is that a shop is quite difficult to start, but far from impossible, and if there ever was a time to do it, now is probably it. I don't think you necessarily need a ton of inventory to start. Rather, what you need is excellent, precise expertise in dealing in bullion and popular modern issues. And I suspect the best margins for you to pursue will be in foreign coins. Your strongest tool by far will be in the coins that come in off the street.

 

I would say that THE MOST important thing of all is a high-traffic location that meshes well with a consistent, effective marketing strategy. Your money is mostly made on the BUYING side, not the selling side.

 

I think it depends on the area. Where I live, the are only a handful of brick and mortar shops, and all of them are pathetic. I have more inventory than they do (and sadly, I'm not kidding).

[Houston Investor]

Many coin shops buy cheap from walkin traffic, then flip it on ebay. They also do a blockbuster bullion business with walkin customers not to mention books and supplies.

[Bruceswar]

Many coin shops buy cheap from walkin traffic, then flip it on ebay. They also do a blockbuster bullion business with walkin customers not to mention books and supplies.

 

Bullion makes no sense on Ebay. Here is a prime example...

 

If you were to walk into my shop with 20 art rounds. You would come out with - $2 from spot on each.. or - $20 total. Now if I sold you those art rounds back it would be $2 over which makes me $4 a coin or $40 total. If you try to put those same coins on ebay you might get $2 over netting you a total of $620 at $31 each. Assuming Spot is $29... When you take out those Ebay Fee's you are 10% back of your final number. Between Ebay and Paypal they take about 10% or in this case $62 sooo $620 - 62 = $558 and my offer would have been $540.. So for $18 is it worth it? That is not counting for the cost of shipping, hassles with that etc. If you get less than 2 over on ebay then you are way in the hole as to what I would pay. Now not all dealers have the same spreads, but most of us are pretty close. You do the math.

 

 

[coinman_23885]

Many coin shops buy cheap from walkin traffic, then flip it on ebay. They also do a blockbuster bullion business with walkin customers not to mention books and supplies.

 

Bullion makes no sense on Ebay. Here is a prime example...

 

If you were to walk into my shop with 20 art rounds. You would come out with - $2 from spot on each.. or - $20 total. Now if I sold you those art rounds back it would be $2 over which makes me $4 a coin or $40 total. If you try to put those same coins on ebay you might get $2 over netting you a total of $620 at $31 each. Assuming Spot is $29... When you take out those Ebay Fee's you are 10% back of your final number. Between Ebay and Paypal they take about 10% or in this case $62 sooo $620 - 62 = $558 and my offer would have been $540.. So for $18 is it worth it? That is not counting for the cost of shipping, hassles with that etc. If you get less than 2 over on ebay then you are way in the hole as to what I would pay. Now not all dealers have the same spreads, but most of us are pretty close. You do the math.

 

 

Actually, eBay fees are only 9%, but PayPal fees are 2.9% on small purchases; thus, you are looking at close to 12%. You're giving eBay/PayPal too much credit IMO.

 

$620 x.881 = $546.22 - S&H =~dealer quote

[HiHoAudio]

As James said, the real benefit of having a store is that people will come to you to sell their coins and paper money. And if you treat them fairly word will spread and your business will grow. And the things that will walk into your store will amaze you. But you will need the expertise to separate the real from the fake and the rare from the common.

 

There are two downsides to a store. First, your landlord will want rent every month even if you have had a bad one. Second, unless you hire a security guard you are open to criminals who can be quite violent sometimes. They have guns, you will need one too.

 

Best to begin by buying and reading books and going to coin shows. If you have questions post them here and we will try and help you. This forum has some of the best minds in numismatics and best of all, our advice is free.

[Houston Investor]

After a number of years as a collector / investor I started setting up at shows with a friend from my coin club who had been setting up. Then I started taking tables on my own as my inventory grew. Now I still take tables at shows but have added an online store. My advice, start small, get a feel for what works for you before expanding.