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 Replies: 7 / Views: 1,138 |
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Valued Member
United States
218 Posts |
I have been talking with my better half and we have decided (more like she gave me permission  ) to check into what it would take to open a non-online coin and bullion shop. There isn't one for 40 miles from where I am at and my area is skyrocketing in population. My question is what method was used by members of this forum that own shops to acquire your inventory initially? Did you use your own collection? Was about consignments? Did you get a loan and purchase items? Also, What would you think the required amount of cash on hand would be? You would need to be able to purchase items or collections brought to you and that could add up quickly. Thanks for any info. We would like to know before hand to see if it would be feasible. |
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Rest in Peace
United States
2684 Posts |
Steve, I don't own a brick and mortar coin shop*** but a person I know back home opened one in a tiny very rural city (Norwich, NY popn 7000 and NOT growing) in upstate NY about a year ago. He used his personal collection to get him started. His main investment was in promotion: news articles and permanent ads in local papers, attending local coin shows, getting listed in the local COC and business directories, and otherwise just getting the word out. As a former small business owner (wildlife and environmental consultant), I secured a small business loan to keep me going for the first year before word of my existence got out.
I agree with you 1000% that a coin shop in Buckeye is badly needed in our area and would be a lot more convenient than downtown Phoenix. I have yet to find a real coin shop in my travels in Arizona. I found a couple middle-drawer-in-the-bedroom-dresser types and a few (highly overpriced) coins in pawn shops, but nothing I would call a true coin shop.
I am not certain about the non-online part although I know one owner who has managed to stay offline for decades (Uncle Sam's Coin and Stamps, Watervliet, NY; lousy parking\
) and still stay in business. It's my feeling internet capability makes finding a particular coin for a customer a lot faster and easier, even if one has a full Rolodex.
I might think that consignments would be a major part of your business. There's lots of old folks in the area whose heirs are looking for a venue to sell collections of deceased relatives. Personally, I would not be inclined to buy whole collections rather than consigned collections since the $$$ outlay could force the family into sandwiches and water unless you're well endowed. And it would take awhile to recover costs.
Any particular location in mind? I knew the owner of a small shop in a mall (good parking) in Oneonta, NY who had a booming business until he suddenly died whereupon his wife took it over, sold off his inventory and made it into a curio and antiques shoppe.
We have absolutely got to get together. I'm in Prescott for extended medical treatment, but hope to return to my desert home this fall (October?). I can and would willingly add to your potential consignment and counter inventory.
Fred
***In my fantasies, I would love to open a combo coin and gun shop.
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Valued Member
United States
157 Posts |
I don't know anything about opening a brick and mortar coin shop, but I do know a little bit about being on the customer end of it.
There were about 3 or 4 coin shops in the city where I grew up. I talked my mom into taking me to all of them at one time or another. My favorite shop, and the one I returned to for years and years (eventually doing considerable business with as my income grew), was the one where the coin shop owner greeted me warmly and made me feel at home, even as a kid looking for cheapo wheaties for my collection. I felt a sense of loss when that friendly coin dealer passed on.
I guess that what I'm trying to say is that friendly customer service is a good way to get your business going in the right direction.
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Pillar of the Community
Belgium
2078 Posts |
I have had a Paris Fashion shop
First supply ; I was honest and lost bucketsfull of money with dresses really coming from Paris
My friend had a coinshop and says his best suppliers were widows, divorcees and estate sales . Estate sales take a keen eye and deep pockets
Then there is inventory : my shop died because I had two years inventory in a field were 6 months is final and taxes not allowing depreciation in less then 5 years . I do not think in coins that would be a problem ; my friend ebayed off his surplus inventory
Then there is sales . If prices can be discussed that is a very dangerous thing for somebody who is not hard enough to go for max price . My friend had a wife who would virtually give away the coins at cost ( which does not pay the rent )
He summed it up
A succesfull coindealer can buy large estates knowing what he is buying ( deep pockets ) and a network of other dealers that will take part of the estate of his hands to free working capital
You have to be rich to get richer
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Pillar of the Community
United States
834 Posts |
FRED.
I will agree there is a need of a coin shop in the Buckeye area, for your info there is a great coin shop in Mesa I have been going there for years. Ferret good luck on you new coin shop, the one thing I always like to see in a coin shop is a lot of different type of coins
both U S and foreign, mint sets and proof sets silver and gold and coin supplies. There are some shops that only deal with big money coins it is always better to find a dealer that loves collecting and who enjoys talking about coins. The one that collects cents is just as important as the one that collects gold There are not many coin dealers like that anymore and that is to bad if you are going to be that kind of dealer who loves his job then you will do just fine I wish you all the best and good luck.
Bruce.
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Valued Member
 United States
218 Posts |
Fred, I agree totally that we need to get together sometime. We are the CC family reps in the west valley. The area I was looking at was either in Goodyear by Central and Van Buren or in Buckeye by Main and 4th st. I didn't mean to imply I wouldn't be using the Internet. I was just trying to clarify it was brick and mortar. I would be using the net all the time. Overstock sales, price verification on coins, currency and bullion. Plus I could spend time promoting the auction site as well while I'm there. Daniel, I couldn't agree more that customer service is one of if not the most important thing in business. Good product, Good prices, Convenient location, Great service. In theory you will make it. Ageka, I actually have a couple people in town I can unload estate stuff on I don't want. They are in business too so I wouldn't expect to get a whole lot for the "left-overs" but I wouldn't have to hold onto them. As far as price goes, I think there are 3 prices in coins. purchase price, what you are willing to sell it at and asking price. If you keep firm on the second one then you should be okay. |
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Valued Member
United States
218 Posts |
Bruce,
I feel the same as you do. I love going into a coin shop just to browse and shoot the @#$% with people. The big money coins have to be there to a degree but most people cant afford them. You need to cater to the whole market. from 10c. Wheaties on up. I would have all the supplies and books. Foreign coins to a degree. Bullion is a must. I would want it to be as much a store as a place to relax. maybe a small reference library and a few chairs or a couch off on the side to sit a talk. Who knows, maybe start the West Valley Coin Club. That way we could help educate the next generation.
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Pillar of the Community
United States
834 Posts |
When you get it up and running I will come, Mesa is not that far away.
Bruce.
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Replies: 7 / Views: 1,138 |
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Posted 05/27/2007 1:34 pm
