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How To Start A Coin Business?

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SDcoinguy's Avatar
United States
2424 Posts
 Posted 01/01/2017  11:54 am Show Profile   Bookmark this topic Add SDcoinguy to your friends list Get a Link to this Message Number of Subscribers
I am 33 years old and am currently working full time as a Golf Course Superintendent. I have a passion for coin collecting and learning about history. I wanted to get some opinions, and thoughts from you all on how to start a coin business, or what it would take financially to start a shop or become a dealer.

i have done some research, and have seen that starting small, for example online stores and such can be an OK start. But I was thinking about changing careers all together. So unless I have substantial capitol, to buy out an existing store front, or just buy enough inventory for my own shop, I figure it may not be worth it. I do have 3 small mouths to feed.

Anyway, I would appreciate the input and discussion on this! Thanks

Chad
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T-BOP's Avatar
United States
18456 Posts
 Posted 01/01/2017  12:16 pm  Show Profile   Bookmark this reply Add T-BOP to your friends list Get a Link to this Reply
Chad , I'm not a coin dealer ,never have been ,but I've been a collector long enough to see many small shops close their doors because they just can't make a living from it .
I think it's a risky business unless you have a lot of inventory and most importantly the experience in the field .
something to think about if you really want to make a go of it is to open an online store and photos of your inventory would be a must . Along with a decent return policy, shipping charges ,and competitive prices .
Good luck in your quest to be a coin dealer .
Bedrock of the Community
United States
20753 Posts
 Posted 01/01/2017  12:41 pm  Show Profile   Bookmark this reply Add just carl to your friends list Get a Link to this Reply
Unfortunately you may well be to late. Sort of like all the stores that opened up some time ago selling or renting VHS or BETA tapes for TV Movies. They popped up everywhere. Then naturally all the big stores and even grocery stores jumped in on that. Now almost all gone and any left now sell shoes or something.
However, back to your problem. You must remember to own any kind of store, you'll need to pay for rent, electricity, phones, water, gas, etc. Then there is showcases, safes, lighting for the showcases and the store. Air conditioning, heating, chairs or such and lots and lots of coin collecting stuff. All this let alone coins for sale. Advertising could also become expensive. Now after all this, a location for such a store must me in a place where you can get lots of people to stop in. Good parking for cars may be a necessity.
All of this is why so many slowly fade away.
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SpaceMaNy0's Avatar
United States
343 Posts
 Posted 01/01/2017  12:42 pm  Show Profile   Bookmark this reply Add SpaceMaNy0 to your friends list Get a Link to this Reply
I didn't think the golf industry was doing THAT bad. Superintendent by 33, I'd probably content my blessings and coin on the side.

Yes, I worded that how I wanted to.
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ARcoins's Avatar
United States
280 Posts
 Posted 01/01/2017  1:13 pm  Show Profile   Bookmark this reply Add ARcoins to your friends list Get a Link to this Reply
In March, I will have had my ebay store for one year. It truly is only a hobby business. I'm not making a killing, but I do enjoy it. I would suggest you first try selling on ebay, then if you are successful, maybe do an ebay store. Good luck & Happy New Year !
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Collects82's Avatar
United States
1316 Posts
 Posted 01/01/2017  1:48 pm  Show Profile   Bookmark this reply Add Collects82 to your friends list Get a Link to this Reply
I think you should should try operating an e-commerce store firstly to avoid the expense of a stand alone store while you learn the ropes and build up a sizable and steady customer base. IF you can make that successful such you are nearing a point of profitability that is somewhere equal to what it takes to feed your family and cover stores expense and fund inventory, then you might have a shot and can at least break even. Just realize that if you go from e-commerce to brick and mortar you are giving up good money for the privilege of having a storefront. I think there is a reason brick and mortar stores are slowly fading away; but I'm sure there would be some in your community who would LOVE to have a new store around!

For me personally, I do a little ebay trading as a way to finance some coins I wouldn't otherwise be able to afford. But as much as I love coins, I'll keep my day job; the risks aren't worth it yet.
Edited by Collects82
01/01/2017 3:02 pm
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Dustin6's Avatar
United States
3516 Posts
 Posted 01/01/2017  4:29 pm  Show Profile   Bookmark this reply Add Dustin6 to your friends list Get a Link to this Reply
There are a lot of shops in my area, that do really well. I am in the suburbs of a large city, so thats why. Try to get a location near a large city
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moxking's Avatar
United States
17900 Posts
 Posted 01/01/2017  4:58 pm  Show Profile   Bookmark this reply Add moxking to your friends list Get a Link to this Reply
Estimate all expenses as accurately as possible. Include all non-business expenses (personal costs) too. Multiply by 24 as a minimum cash reserve excluding inventory.

Estimate GPD and GP% which is lower than typical retail. By averaging expenses per month and net sales required to break even you can also determine required inventory and turns per year.

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SpaceMaNy0's Avatar
United States
343 Posts
 Posted 01/01/2017  5:39 pm  Show Profile   Bookmark this reply Add SpaceMaNy0 to your friends list Get a Link to this Reply
Don't forget to put arms and ammo in all these monetary projections. I wouldn't have a store with that many assets without arms.
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Slider23's Avatar
United States
4468 Posts
 Posted 01/01/2017  6:03 pm  Show Profile   Bookmark this reply Add Slider23 to your friends list Get a Link to this Reply
Do not quit your day job. Set up an online site for buying and selling, and sell on ebay. Set up a table at a couple of coins shows for buying and selling. If you find that you can make a profit to support your family, then, you could consider opening a coin store and becoming a full time coin dealer.
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Joe2007's Avatar
United States
3843 Posts
 Posted 01/01/2017  7:54 pm  Show Profile   Bookmark this reply Add Joe2007 to your friends list Get a Link to this Reply
You could work as an assistant to a coin shop owner for a few years before going out on your own. I'm sure an insider's perspective is much different than our perspective (outside looking in). Setting up a coin shows or flea markets is another option to make sure you don't invest too much before you know if it is even feasible. You may have to carry other items to make a go of it, several of the coin shops in my area have large selections of jewelry, antiques, and other collectables in order to supplement the bottom line.
Edited by Joe2007
01/01/2017 7:56 pm
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denco7's Avatar
United States
2543 Posts
 Posted 01/01/2017  8:10 pm  Show Profile   Bookmark this reply Add denco7 to your friends list Get a Link to this Reply
In my opinion, it is all about inventory. Inventory brings people into the store, inventory gives people a reason to make the trip in the first place.
Many times I go to the LCS, as much to see the things I can't afford as the things I can. Almost always I leave with things I never intended to buy, coin albums, coin tubes, mint products, bullion .... etc.

People will not come in the door unless there is something to see. It is all about inventory.
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trout1105's Avatar
Australia
7096 Posts
 Posted 01/01/2017  8:39 pm  Show Profile   Bookmark this reply Add trout1105 to your friends list Get a Link to this Reply
I would think that many of us dream about running our own LCS, The same way drunks dream about owning a Bar
It would be fantastic to spend the days chewing the fat with fellow collectors and teaching the "New Chums" about numismatics and still earn a living doing this.
Sadly the Reality is that the days of the little LCS shops are numbered and the bigger more established players that have also embraced the internet will be the only survivors at the end of the day

The ebay option is OK but usually ebay is the main "Winner" and you will have to deal with various "Numbskulls" that you will definitely encounter when selling on this platform.

You could create your own website and sell from there cutting out the ebay fees but you wont have much exposure until you become a well known seller.

So don't quit your day job just yet and just "dabble" at being a dealer for a couple of years in your spare time to see how it pans out for you before making any drastic decisions
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Finn235's Avatar
United States
6130 Posts
 Posted 01/01/2017  8:48 pm  Show Profile   Bookmark this reply Add Finn235 to your friends list Get a Link to this Reply
with the ecommerce route.

Making $20,000 profit on a hobby is an accomplishment to be proud of. Making $20,000 profit in a business is poverty.
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oriole's Avatar
Canada
5239 Posts
 Posted 01/01/2017  9:03 pm  Show Profile   Bookmark this reply Add oriole to your friends list Get a Link to this Reply
In my city, the few LCS that are left make about 1/2 their business from buying and selling bullion and precious metal jewellery. If that does not interest you then it might be difficult to make a go with pure numismatics.
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SDcoinguy's Avatar
United States
2424 Posts
 Posted 01/01/2017  9:52 pm  Show Profile   Bookmark this reply Add SDcoinguy to your friends list Get a Link to this Reply
Thank you all so far for all the input! I think SpaceMaNy0 put it best! I think with the time I need to invest in my family right now and with the beginning of my new job, weekends will be the only time I might have to do any work with this. ecommerce seems to be the best route for now. And that way I can still fund my hobby. I do have an ecrater store, but have not updated it since my son was born 5 years ago. I am sure when I hit my 40's or 50's I will have more time to invest. Antiques are also a big interest of mine. Buying and selling old stuff with historical connections have always revved my engine.

I would still like to hear more input from you all! Thanks!
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