Need Some Help From Coin Shop Owners

First of all, my hat is off to anyone who wants to start up their own business.

I hope you don't think my comments are negative towards this.

Basically most everything that would apply to opening any sort of retail shop would apply to a coin shop. I would suggest you speak to your local chamber of commerce and better business bureau. I would also suggest contacting Score (http://www.score.org/index.html).

Is their enough demand for your product? If so, then I suggest you try to keep the exact nature of your business quiet until you close to be ready to start up.

Are there many collectors in your area?

Can you fill in a gap that maybe the banks can not meet the demand for as well?

Can you afford to pay all our personal bills and business bills as well as obtain stock until the business can support itself and provide you an income?

Need to plan on how to attract people to your business. Is there a good location to open your shop?

Have you or are you planning on doing coin shows? Mail order? ebay? Have you considering selling via the forums? Have you looked into an ecrater site?

You also need think about security of your shop, home, and yourself and family if you do this since running a coin shop will most likely increase your risk of being a target of crime.

Just a quick braindump on the matter.

Best of luck.

Keep us posted on your decision and progress if you ahead with this.

Ken

How many coin collectors do you know in that 164,000?

Any coin clubs?

Any coins listed on CL?

You can open and operate a coin business from your garage.

if there are collectors in the area that deal with the same stuff you did in the coin shop you described.

My advice is run an add that you are buying coins, see what you can put together for an inventory for less than 5000.00 and start from there build ,give good to great customer service, get your bank to give you a 20,000 dollar line of credit for the stuff that walks in the door and go for it.

If you do a search on the forum you will find this topic came up before and a number of dealers and members posted some other information you might want to read.

I am intentionally not posting the link to this information. This is done for two reasons. If you are just considering becoming a dealer out of frustration you will do nothing more than ignore this post.

If you are serious about your venture - even on a part time basis- then you will do the research necessary.

Just remember becoming a dealer takes time and effort as well as an initial investment.

Good Luck in your decision.

Carl,
In Addition to his prices, his attitude towards hid customers is also a big concern for me. In my original post I also state that they run a Real Estate business out of the same office as well. So the coins aren't his only source of income. And up here I know a few Real Estate agents that make enough for their families on one sale per month.

Try "becoming a dealer" in the search field.

I live in a bedroom community for Sacramento, CA

The Median Home price is currently $201,000

Now for my 2-cents:
I am not a dealer, but have a friend who is. His store is alarm-guarded, and has remote controll access in, and out. He has a LOT of coins in sight, and on the bid-boards, plus the regular inventory, of supplies, albums, folders, flips etc. The "good stuff", is not in sight. Sure there are a couple 10 ounce silver bars, etc, but no gold, of any kind. I don't know if he also sells on ebay, or not, but in addition to the inventory on hand, he also makes special orders for the regular customers, or maybe just for me, like boxes of square tubes, etc.
My poimnt is this: Unless you are experienced in the coin dealing business, or at least have done quite a bit of buying/selling on ebay, or other on-line type, and know the values of the different coin varieties, errors, ect, you will put yourself, and your family at high risk, trying to open a shop, particularily at this time. Under no circumstances leyt your home address, and location be known! Give ebay a try, and you will get an idea of what you are getting into. That is what I would do, if I were to even consider a shop.
You have been given many "points of view", and I hope you cake them seriously. Your family safety depends on your decision, and future action. If you "take the plunge", I wish you good luck! You will need it.
As for the guy also doing Realestate dealings, at the sasme time, I doubt he is making a "great income" from it, especially in the current situation. my neighbor is a "Broker/Agent, and his wife is also a Broker. They hava at least one of the local motorhomes for sale. One for nearly a year. They have not made a sale in over a year. They went from two cars, to one, ant use a rental at times. Their comment on realesrarte business, BAD! Maybe that is what the guy you refer to is also doing. Selling coins, because the home sales are down to zero! bottom line: I would go ebay. At least you will save a bundle on "overhead", and not put your family at risk..
Dick