Coin Business: How Much Profit?

The ebay business generates $25,000 in sales a Month!?

are you looking for a 3rd member of that group?

I'm gonna wait for some clarification on your part before I give an answer

Thanks for your input everyone.

Yes, The ebay sales for the last 31 days is just under $25,000.00 so that comes to about $300,000 a year. There is only two of us and really no overhead to speak of. The owner is a friend of the family and is very "nice" so I just assumed that everything was on the up-and-up.


I feel a bit foolish and naive as I've only recently suspected that I'm being ripped off. I really appreciate the responses from you guys as I'm trying to see things clearly and not blow my top off and burn a bridge...



a bit more info.

I essentially started the business for him. He had the coins and I the photographic expertise and computer know-how. I am told, by him and customers, that I take some of the best macro-photos on ebay and that many even surpass those in RedBook. I would generally agree.

I've been promised more pay from day one. For the last 6months I've been given a number of "promises" that I would get a pay raise. The most recent was that I would get a .50 cent raise starting in july. Now I am told that until the %5 of the errors in the ebay listings are corrected I will not see a pay increase.

I now have repetitive motion injuries from 6months of overuse hoping to get a raise.

there is no overhead other than the office and the internet and I make $8.50 an hour.

(Professional photographers make $20-$100Hr)


I feel kinda dumb.

Depending on the initial cost of the coins, I would suspect that $25k/month is about the "one person making a living" level of coin sales. You mention your partner already "having the coins," but that doesn't necessarily indicate his initial investment in them.

I can't speak for ebay, of course, but 10-15% is a pretty healthy margin for a coin dealer. The best way to make a small fortune in selling coins is to start with a big one.

On an unrelated note, I'd enjoy to see some of your photography work. It's a bit of a passion for me, as well.

I would look around for better job that could better use your skills and talent. Just keep the job until you have one that better suites you.

I'd also love to see some of your pictures.

If you're a fraud like 'numismaticbureau', you could MAKE 50,000 a month ROFL

$8.50 and hour? Starbucks, Walmart, Kmart, etc pay about that or more around here in the Chicago area. Where are you in some remote place without communications with the rest of the world? Jewel Food Stores pay more for stock boys. I'd hate to even tell you what a company I worked for not long ago paid a photographer but he made in one day what you would take about 100 hours to make.
Up in Wisconsin I went to a wedding where a photographer sold a wedding album to the bride and groom for $1,200 and that was for only 12 8x10 photos.
As to what coin dealers make and purchase. That can vary massively. For example one dealer I know comes from Wisconsin and sells at a flea market here on Fridays only. He says he makes about $10,000 sometimes clear. He buys stuff up there somewhere for practically nothing and sells it here for a large profit. At one of the local coin shows a lady dealer I know was telling me her and her husband just go to banks, buy up new coins, put them in 2x2's and that is basically what they sell at the coin shows. For a one cent coin they get a dollar. You figure out the profit there. Many dealers buy up complete collections from estate sales. They then sell each coin separately. Sort of like the auto industry. A junk yard buys a car for about $50 and sells all the parts for thousands.
I would suspect many dealers on ebay do similar things for their products. My sone has been selling on ebay for years. The stuff he sells I would normally throw out but he does sell it. A freind of mine buys cameras at flea markets, garage/yard sales and sells them on ebay. His profit margin is about 90%.
I don't do this but I've been thinking about raiding my neighbors garbage cans and selling whatever I find in there on ebay.
$8.50/hour? I'm in shock. I wouldn't get out of bed for that.

Wow,

That's very small profit margin only 15% for selling coins . I talked to one dealer who sells his stuff below or at greysheet prices today on his stuff. He told me his trick was to buy 30k worth stuff all at same time . He said he pays under 15% on greysheet prices for his stuff. He does it where he can sell volume besides high prices. He was lawyer and did coins as an hobbie on ebay I guess.

Like in cars most of us buy cars at dealers onley auction . Are there coin dealers auctions where an dealer can buy say over 30k or 25k worth invortary in one month or whatever. Also how many coin dealers own stores and just wait on people to bring them inventory to sell. You were talking about buying stuff from estates and stuff. I see never any auctions or estate sales. Most people who are coin collectors don't have 20 to 30k worth of proof sets , mint sets or tons stuff for coin dealer to buy on weekly basis to keep there store stocked. My car auctions I go to each week have maybe 2000 to 3000 cars to bid on at any given time.

Car dealers like me sell maybe 10 to 20 cars per month. My profit margin is higher compared to the coin dealer. Some cars I make 50% or 100% profit from them. One reason I do it is I tote the note. If they don't pay I go get and sell again. Some cars I have sold 3 or 4 times over so far. I spend more money on mechanics, body-shops, Insurance, rent, overhead maybe more than the coin dealer.

Reason I am asking since I may want to open an coin shop or just upgrade my coin collection when good deals come up.

Thanks Chevrolet454ss