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 Replies: 24 / Views: 4,170 |
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Valued Member
United Kingdom
488 Posts |
I've seen a lot of threads on here that discuss becoming a coin dealer, and I've found a lot of valid points. Having started on a small scale dealing and had quite a good measure of success, I am beginning to try and think about increasing my activity formalising it as a business. One key stumbling block I am coming across is drawing the line between being a dealer and collector. I often find it hard to sell coins I find interesting, and as this applies to a lot of coins it's becoming an increasing problem. Surely most dealers have have their own collections, does any one have any experience in knowing how well people have managed to separate items to catalogue as stock and as to keep?
Any thoughts or opinions would be welcomed www.kingstoncoincompany.co.uk
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Bedrock of the Community
United States
20753 Posts |
Naturally that all depends on your preferences. If you like a hobby on the side of a buisness that is related to that buisness, it's a decent choice. I've met many dealers at coin shows and most do not collect coins as a hobby. I sometimes think that excessive dealings with a product makes a person shy away from that item. Sort of like asking a cab driver to go joy riding for something to do on a weekend. I've never met a long distance truck driver that wants to spend time off driving around either. And then there are those stories of auto machanics driving around in a car that almost falls apart. Not to interested in spending time off the job working on a car.
One frind of mine dealt with auto sales. He would sell any car, to anyone, anytime, regardless of anything. His wife fell in love with one of his purchases. After a week she came home and it had been sold. She was mad but realized that was his buisness, not a hobby.
As a dealer in coins you should come accross a real lot of great deals and eventually you'll realize the profit from that is greater than the storage of that same item.
Yes there are collectors that are dealers. And you may become one. Try and let us know in a few years.
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Pillar of the Community
Canada
1248 Posts |
If you do it as a business.....DO NOT fall in love with a coin... treat it as a medium to make a living.... NOTHING else. you are in it to make profit...
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Valued Member
United States
258 Posts |
To start I would recommend just visiting your local antique mall. If they do not have a coin dealer (or even if they do) find out how much it costs to rent a showcase from them. Usually it is not very expensive.
With regards to collecting when you are a dealer you are also a collector. After all, until you sell the coin it is a part of your inventory/collection. With regards to "very special" coins do not be afraid to put a significantly higher price on it than what the reference guides suggest. That way should the item sell at a premium (and this CAN happen for choice coins) you can replace it with another and still have your profit. That is unless it is a very rare coin in the grade you have it. Remember the following rules and it will help you. Buy ONLY what you are willing to be stuck with AND buy quality NOT quantity. Common stuff will always be common and choice items will always be in demand. Best wishes on whatever you decide to do. Sincerely, John Leckrone
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Bedrock of the Community
United States
17884 Posts |
What many dealrs do is collect one thing or an offbeat obscure item or series. That way they don't compete with their customers or if they do collect something they also sell the business only gets the pieces tht are not suitable for their own collections.
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Pillar of the Community
Philippines
1156 Posts |
well... first one must define within oneself, which comes first, the sell or the coin. This is important...to avoid conflicts between the brain and the heart. For me, there are coins which I will never sell, unless a clearly higher grade comes along, all the rest are for trade or sale. hope that helps  , it is painful to let go of a special coin, it's special because you know it's every nook cranny and crack with eyes closed, even if it will be replaced with a higher grade |
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Valued Member
United States
220 Posts |
By any chance, does anyone know the average income of a local coin store owner or of a national wholesale coin dealer? Thanks.
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Moderator
 Australia
16810 Posts |
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Surely most dealers have have their own collections... Actually, I think those are the exception. Many dealers I know are former collectors who gave up collecting for dealing; they used their now-unwanted collection to help boost their initial stock. You've got to be both a dedicated numismatist and a successful dealer in order to assemble a good personal collection while running a coin dealership. Here in Australia, I only know of a couple such dealers. Quote:
...does any one have any experience in knowing how well people have managed to separate items to catalogue as stock and as to keep? It's difficult, but not impossible, to be both a dealer and collector. The key thing to remember is that "you can't keep everything" - that sort of defeats the purpose. You've got to pick a fairly narrow field, and keep only those coins within that field. One of those dealers here I mentioned collects only tokens and medals; he keeps only the best examples of these that pass through his shop, and sells all the coins. You should also learn to "stand on both sides of the counter" and treat yourself as just another customer, as far as balancing the books is concerned. Keep your business bank account and personal bank account separate, and only keep coins you personally can afford and pay for. Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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Pillar of the Community
United States
619 Posts |
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I've met many dealers at coin shows and most do not collect coins as a hobby. I sometimes think that excessive dealings with a product makes a person shy away from that item. Sort of like asking a cab driver to go joy riding for something to do on a weekend. I've never met a long distance truck driver that wants to spend time off driving around either. Very true. Lot of drug dealers don't do drugs. Edited by deadmunny
12/09/2009 05:13 am
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Pillar of the Community
United States
628 Posts |
I sell coins at local flea markets. Very low overhead. My main sellers are common date U.S. silver, kitschy silver rounds, common date GSA morgan CCs (very popular), and the ASE reverse proof. Also a smattering of misc. U.S. coins, depending. I don't sell anything I'm attached to. On my best day I made over a grand. On my worst I sold nothing. I don't consider myself a dealer. IMO too much downside to put a lot of effort into. I've read lots of posts here on the subject, take a look, decide for yourself. I can tell you this, it is a lot of fun as long as you're not buried in it.  |
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Valued Member
United States
258 Posts |
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By any chance, does anyone know the average income of a local coin store owner or of a national wholesale coin dealer? There is no way to determine this as there are too many factors involved. To begin with you have to determine what the wholesale and retail value of a dealers inventory. Obviously a coin dealer with $5,000 in coins is not the same as one with $50,000. Other factors include the local coin market to include customer base, cost of inventory, quality of inventory and cost of overhead amongst other things. If you have a bunch of common stuff you will find it much harder than if you have a good selection of better quality older coins. I really enjoy coins from 1880-1920 as these have always been my best sellers. They are still common enough to find but are not extra common so even some of the better shops won't have it. In my antique mall I have a couple other coin dealers as well as myself. I regularly will wholesale coins to them to help them out. My one dealer has two showcases and pays me $85.00 in rent plus 10% commission. He has everything from antique coins and paper money to modern collector sets. His sales run from as little as $100.00 per month to as high as $1,000 with anything inbetween. Averaged out he sells around $400.00 per month so he probably makes $100.00 per month after paying for his rent and inventory. He gets most of his inventory from auctions so does quite well with it. His big sellers are confederate money and Morgan silver dollars but he sells a lot of other coins in the 1860-1920 range as well. My sales are hit and miss as well. I have a good selection but again if we have a month when only a few coin people show up my sales will reflect that. I always reinvest into coins and that has allowed me to grow my inventory over the years. I consider myself to be a numismatist and have a book of all of the different kinds of coins available from 1880 on. I cherry pick all of the stuff I get and upgrade these books regularly with better material. These coins are for sale but the price reflects the rarity in a lot of cases. If you want my very best coin you will pay for it. As I have stated before not all price guides take into account rarity of certain grades of certain coins. My choice books do and people are happy to pay my not unreasonable prices. I feel a little pain selling some of my best coins every so often but I enjoy the search. Will I ever be able to replace some of these coins with it's equivalent or better? Sometimes yes, sometimes no. One day I may regret selling some of them because I am sure one day the price of many of these coins will reflect the rarity. But selling coins is a part of my business AND the hunt is half the fun. As long as I am making money on coins I buy I am happy. Sincerely, John Leckrone Edited by 925dealer
12/09/2009 09:19 am
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Valued Member
United States
258 Posts |
With regards to my two friends who have coin shops one of them does not collect anything. He wholesales most of his inventory and I LOVE his stuff. He gets quite a bit of my money.
My other friend sets aside all pcgs graded mint state 70 coins as his "retirement" so I guess you could say he collects perfect coins. Most of his customers are investors.
Both of these dealers do coin shows regularly (I do not). They go to these shows not only to sell but to buy as well. If you ask my one friend he will tell you he could care less if he sold anything (and some of these shows are VERY expensive). He is just there to buy. Sincerely, John Leckrone
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Valued Member
United States
220 Posts |
Thank you for your detailed explanations, 925dealer. It seems very challenging of being a coin dealer. There are so many issues (maintaining a good inventory, a customer base, a low overhead..etc) needed to be addressed before making a good profit. I was thinking to be a volunteer in a coin store to learn some practical numismatic skills, and perhaps buy some coins from the owner at a big discount. |
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Bedrock of the Community
United States
12437 Posts |
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By any chance, does anyone know the average income of a local coin store owner or of a national wholesale coin dealer? Really depends on what type of shop it is, not too many stand alone coin-only shops exist anymore- diversification is the key these days. My local dealer has a bustling bullion/scrap business in addition to selling antique guns, militaria, a bit of jewelry, and some historical items(1904 World's Fair stuff is popular in St Louis). However, it is also a full service coin shop complete with roller cases, a bargain bin, and even a weekly bid board. I would say coins-only is probably 10-15% of his business with about 75% to bullion/scrap and the rest would fall to the other stuff. BTW, he drives a 2009 E class Mercedes so he does pretty good for himself  Edited by biokemist6
12/09/2009 8:25 pm
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Valued Member
United States
258 Posts |
You are welcome Dollarcoins. With regards to volunteering your time at a local coin shop I would only do it if you have become their friend first. Trust will be a BIG issue and takes time to develop. It is also much easier if you are friends. With regards to buying coins at wholesale or slightly above your best approach is to visit the shop with a lot of cash (minimum $500.00) and let the owner know you are ready to spend it if he will treat you right. Don't expect the same kind of treatment if you plan to pay by check or credit card. Most of us coin dealers balance out our wholesale and retail selling. We expect to do both. Additionally if we are having a slow day/week/month we are more apt to give a big spending customer good deals. Remember a brick and mortar store has fixed expenses and cash flow is critical for us. Best wishes on your efforts and tell us what happens should you visit your local shop and do this! Sincerely, John Leckrone
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Pillar of the Community
Philippines
1156 Posts |
Hi Jeff11, just as an afterthought, you can gain some more by trying out the CCF forum on Selling or trading, the experience gathered there would help you with your future customers |
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Replies: 24 / Views: 4,170 |
Posted 12/08/2009 10:06 pm
