Becoming A Dealer

This is true, GO, I guess you could really break it down into a few levels. There are those that rely solely on the income generated from dealing in coins, and then there are those that could either be semi retired from another profession and do it on the side, or those that extend their hobby into sales as a supplement to their livelihood which could be in a completely different field altogether.

That's a good read, Steve, thanks. I read Alan's articles quite often in the magazine. I'm not sure I agree entirely with everything he states in this article, though.




I don't really agree with that. And even given that statement he goes on to say:




I thought he just implied that if you have to ask, you shouldn't bother trying! I own my own business, and if I had not approached others that run successful businesses within the same industry and asked them lots of "how" questions I wouldn't be where I am now!

As for the basic elements of the successful dealer in his opinion, all of them make sense to me. Ya gotta know your wares! Although I might add that most of the coin shop owners I've bought from have been really nice guys, but I wouldn't call any of them "aggressive or successful salesmen", as he puts it. They are more like educators and accommodators. In fact I am not sure I would frequent a shop that had a car salesman-type mentality. Maybe there are some of those out there?

I Used to deal at local show before ebay showed up and I would sell coins that I had accumulated over the years....also these shows were also a good way to get an inventory because people were always coming in to sell stuff that could be had at a "Dealers Discount" which was usually 30 to 50 percent of the sell price...

You also dont need to start out selling right away,a lot of guys I knew would would setup to buy only and build their inventory

I see what your saying...but asking the broad question "How do I become a coin dealer" is a lot different than asking a dealer specific questions about how a certain aspect of the business works. Notice that he doesn't give the same answer to someone asking him about where to find sources (at the end of the article). He gives a more specific answer.

Becoming a successful dealer is a conscious thing...just like being successful in any business. Granted, a person may build their initial inventory while being a collector.

Please don't take offense at my comments. If folks are willing to share how they got their start, it would be interesting reading.

For me I have been playing with coins since I was a boy. After awhile you accumulate a lot and want to buy something different you can use your extra inventory to sell or trade for other coins you want.

You have all heard the saying "Knowledge is power". This certainly applies if you want to be a coin dealer. Unfortunately with coins you are always learning we simply cannot know it all. We coin dealers are not just limited to a few coins and grades but instead we have to learn several denominations of coins in various styles. Using nickels as an example you have to know Half Dimes, V nickels, Buffalo nickels and Jefferson nickels and how to appreciate and grade each one. The only way you have to learn to do this is through experience. How do you get that experience? Handle a lot of coins and study a lot of books (not just the RedBook). Additionally talk to other dealers/collectors and you can learn more about coins as they have their own opinions and experiences. Join a collectors club in your area and spend a lot of time at your local coin shop. I am always happy to share what I know with people. Why is this important to me? I want you to be a KNOWLEDGEABLE customer when buying from me. I prefer to talk numismatic lingo with people rather than having to say to someone "Yes dear, this is a Wheat penny".

Let me again state this very important thing. KNOWLEDGE IS POWER. Learn about numismatics by playing with coins and becoming a dealer will be much easier to do. Sincerely, John Leckrone

Fine.. I have LOTS of business expenses, then!

In some ways your wrong. Coin collecting is not really fading, actually it is growing at least by me. And growing extensively. In many ways what you said is truer than most seam to know but not collecting, but selling. It is becoming late to start as a dealer in todays market. Maybe not completely but really late. This hobby has grown from a decent hobby to big buisness today. Dealers must have large inventories to compete and that usually takes a lot of money and/or years of accumulating. Even then it may well be to late.

A coin dealer starting out today reminds me of when those VHS tapes first came out. Then there was Beta tapes, little stores poped up where you could rent of buy blanks and/or movies on them. Then the big stores ran them into the ground with their massive inventories and cheap prices. Now even those are fading due to DVD's and soon the little flash drives that can hold a movie and is so small you loose them all over the place.

Back to becoming a dealer. Around me they have recently expanded coin shows to 4 times a Month in different locations but all about 15+ miles from me. At one of the smaller shows held in a Holiday Inn, it just expanded from one room to two rooms. However, as many of the dealers I know have said, this is showing an increase in dealers, not collectors. One dealer I know does only shows for a living. Usually these four in this area but does travel to the larger ones. He said he UESED to make money in the 6 digits every year. This has dropped considerably and he says it is due to the excessive compitition that has popped up. Many, many more dealers and just not that many new collectors. He too acquires almost all his inventory from customers that want to sell or trade but those too have been fading and possibly due to all the new dealers.