How Do Dealers Make Money?

I talked to my local dealer about this before. when I told him someday I would like ot own a shop. His reply to me was that is very hard to make good money at it. he said if oyu think you are going to become rich being a coin dealer you will not. he said the only rich coin dealer are the dishonest ones that take advantage of customers. he said you cna make a good living at it if you are honest and people learn to trust you but it is hard. He also tolkd me that his main income is not coins, he invest in real estate. I know it is off of the point a little but acourding to my local dealer he saids it is hard to make money. But I have seen alot of dealer who buy coins at the low price on the grey sheet and then turn around and sell it for the price in coin Values. so I guess that is how most do it. Buy low sell high.

As already noted most dealers don't make a fortune on graded and slabbed coins. However, if you go to enough coin shows you'll see there are people that will only buy a coin in a slab. I believe this is partially due to all the fakes, counterfeits, errorneous grades by dealers. I've even seen simple coins such as a 1989 Lincoln Cent graded as MS60. I'd wondered who the nut was that had that coin graded but later I noticed it was sold.
Back to how dealers make money. That too was fairly well covered especially the robbing of customers. I've seen so many of that at coin shows and at dealers. There is one coin store downtown in Chicago I've witnessed ripping off customers by offering them cents for coins worth dollars. Not long ago I saw a dealer at a coin show buying a bag of Mercury dimes from a custome for double face value. Last weekend I was talking to a dealer I know at a coin show. He showed me a Mercury dime and Washington quarter collection in Dansco Albums and most coins in MS something or other. He paid $6,000 for both from someone. He is selling the 16D Merc for that exact amount. Lots of profit in that deal.
Most dealers will give you practically nothing for coins worth a lot if you don't know what you have. I've never heard of a coin dealer telling anyone anything like you have a fortune here. In many instances some dealers work with massive profits.

Boy I've learned alot!!! Thank you to all for all your help. One final thought. What percentage of coins purchased at mint come back graded ms69 or pf69. What do dealers do with them? I've noticed that one grade dramatically reduces the value. Add that to the equation and the profits are getting smaller.
Thanks again for all your help!!!
Vince