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 Replies: 21 / Views: 3,260 |
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Bedrock of the Community
United States
17884 Posts |
A good way to build your way in is to work the show circuit. Take a table at the local club shows. It will get you exposed to a lot of collectors and let you start buying and selling with low expense. It will also start to insert you into the dealer community. Keep rolling profit back into stock and build your inventory. As your inventory grows you can start including the larger state and regional shows which will increase your contacts, exposure to better material and possibly allow you to move some stuff that doesn't go well in your area. You may find that the show circuit is more to your liking than being tied down to the expense of a Brick and Morter location. Or you may find that being a dealer just isn't for you without committing the funds to the expenses of a shop. I did shows for three years before I decided I'd rather just be a collector.
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Pillar of the Community
United States
2049 Posts |
Lol I thought of one more thing sorry. Don't get attached to a particular coin or coins. If you're going to do this as a business, then you need to be willing to part with items. The name of the game is turning inventory over, so buy it, sell it for a profit, and make that money work for you.
I agree with the above people who say do the show thing first to see if you like being on the other end of the deal. Some people think it's all gravy but when you are on the other side of the table or counter, you are going to see things about customers that you don't like. It's part of any business.
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Bedrock of the Community
United States
20753 Posts |
Quote:
My dream job would be to open a coin store, but I have no idea where to start. Most of the replys already tell you how to run the buisness. However, there is a lot of other things to consider also. For example the location. Just has to be in a place that gets a lot of traffic or it will never be seen. And remember if you rent a place, there is rent and normally gas, water, electric bills to pay for. Then of course a phone bill which should be a land line, not just a cell phone. Possibly a FAX machine and a separate number for that too. You would need large display cases with locks. Chairs for yourself and customers. Really good lighting fixtures. A place for all the so called nickel and dime things that most people never think about at first such as a broom, vacuum cleaner, glass cleaners, towers, soaps, toilet paper, paper towels, pencils, pens, writting paper, fax machine paper and that list could go on for a long, long time. And you need all that STUFF when you first open. Visit as many coin shops as possible and look around. Try to see what they carry for merchandise besides actual coins. And as already noted, if you don't know how to talk to people, forget that buisness. |
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Moderator
 United States
189767 Posts |
Quote:
Don't get attached to a particular coin or coins. If you're going to do this as a business, then you need to be willing to part with items. This is why I would never make it as a dealer!  |
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Pillar of the Community
 United States
3345 Posts |
Wow thanks guys that helps a lot. I obviously have a ton to learn before I even think about this, especially being 16. I have had some experience selling things and interacting with customers, and I will need to get more as y'all said. I can take that the most important aspect of running any business is (finances excluded)people skills, right?
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Pillar of the Community
United Kingdom
1684 Posts |
I think you have received some solid sound advice here. I still wonder if in this day and age if a bricks and mortar presence is really needed for someone starting out? Many of the same business principles apply to an internet based business. Selling here on CCF, ecrater, and ebay are good ways to start. Looking in the papers for yard sales and estate sales can be good places to start. Craiglist can be used but be careful. You never want to disclosed information about where you live and so forth. Maybe consider getting a prepaid cell phone which you use for business only. An advantage of going this route, you can do things are your own pace, move your business when you go to college without all in the investment that a physical store brings with it. Ken |
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Bedrock of the Community
United States
17884 Posts |
Quote:
And remember if you rent a place, there is rent and normally gas, water, electric bills to pay for. Then of course a phone bill which should be a land line, not just a cell phone. Possibly a FAX machine and a separate number for that too. And being a business you will find that you will be paying a much higher rate for all of those than you would as a residential customer. Oh and of course the deposits for those utilities that you will have to pay before you even open. here where I live the gas company deposit equals half a years billing, about $1500. |
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Valued Member
United States
404 Posts |
Unless you have deep pockets, start small. Remember in order to turn a profit you have to cover ALL your overhead before you can pay yourself(everything that everyone has listed...rent, employee salaries, TAXES, health care). Figure you may have to PROFIT a minimum of 4k+ a month just to stay afloat. Think about how much inventory you have to turn over to reach that number. This also has a lot to do with where you're going to be located, in NJ with property taxes, rent and everything being high here, you would probably need atleast $100k in inventory to cover a range of customers.
Networking - Do some shows, meet some people (customers/other vendors). At some point you have to find some "connection" that gives you an edge. I know 1 dealer that buys a lot from a guy who does storage unit auctions.
Group buys - Once you befriend some other vendors at shows, you may want to consider going partners with some in bulk buys. Estate sales - auctions..etc. These will probably be your best chances at scoring a large inventory at a reduced price.
Before all else...know your limit on what you are willing to risk. Ask yourself some..what ifs? Run the scenarios and if you're comfortable with the results or uncomfortable you'll know if you're making the right decision. Are you going to be willing to keep 10-20-50 ounces of gold in stock, with the chance it may drop to $800...what will you do with it then? Sell at a loss or hold on to it?
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Valued Member
United States
425 Posts |
Quote: This may sound like a silly post, but I am completely serious. A tip I could offer would be to make sure you develop (or have) good social skills and a positive attitude. Treat customers in the coin shop the way you are treated at well run retail stores--with interest, a smile, and integrity and patience.
At all the coin shops in my area, the owners are rude, inconsistent, and make me feel very uncomfortable. I only go to one guy these days just because he has amazing deals. I avoid the rest, and pay more for things online sometimes, just to avoid their utter anti-social behavior.
AMEN! I drive 30+ minates out of my way.... to the next town over...... passing two other dealers coin shops, because my dealer has fair prices and he is not rude or condescending when I ask a question. Also, when he see's me he will come out of his office and atleast say "hello"! But often offers to help me eventhough he has one or two other folks in there to help me. I almost always buy "Something" as I feel there is value with this level of service and Friendship!
(Same thing is true of gunshops.....that often give bad customer service!).
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New Member
United States
6 Posts |
Try reading "How to be a successful coin dealer" by Q.David Bowers. The printing I got was over 20 years old, but it has tons of information about starting up in the coin industry. He talks about everything from what reference material you need to buy and study before you ever buy any coins to how to buy, sell and advertise. It was a real interesting look into the coin business.
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Pillar of the Community
United States
564 Posts |
I see a major problem no one has really mentioned. Rachums107 is 16 years old. I know in my state you have to be 18 to own your own buissness exc. also customers might not take such a young man seriously. Don't get wrong I think owing your business is a great idea but you do need to be the proper age and enough capital saved up to start and run your business correctly. If I walk into a shop with little to no inventory I never come back. With the creation of the Internet coins are no longer as hard to find as they once were. You can find any coin you want.
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Bedrock of the Community
United States
11951 Posts |
 with afclassic87 Just because a person wants to do something, there is still a need for experience and capital. The majority of small businesses fail. Many fail because the owners have no idea how to run a business and do not have the capital to make it through the 3 to 5 years it takes to get established. |
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Pillar of the Community
United States
548 Posts |
We old fogies sometimes have a negative view of the world. Personally, seeing a young man so interested in starting his own business is enlightening and refreshing to me.
I wish this young man great success.
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Valued Member
United States
110 Posts |
Lobby. Glad to see some youngsters interested in the coin biz. rachums107 you might want to talk to your local coin dealer and see if you can work part time, after school or on weekends. Maybe he will pay you or you could start on commission only. That would be a good way to not only learn the biz but gain experience also. Edited by CowboyB
11/05/2011 4:35 pm
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Valued Member
United States
421 Posts |
As a youngster I would hang out in the next town at a hobby shop and chat with them. I would be sorting through nickels and a buddy of mine would be going through the Half Cents with the 1/200 on the reverse. We asked all kinds of questions and wanted to open our own coin shop. So I say to you learn all you can. Start saving and earning money. and like others have said check out other venues to get your feet wet. ebay and other ways to try it out. I work a full time job and do collecting/ selling in my spare time. Now a days you don't need a brick and mortar store front to have a coin business. |
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Replies: 21 / Views: 3,260 |
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Posted 11/02/2011 6:58 pm
