What do I need to become a dealer at a coin show?

I'm the wise guy who said coins and I stand by it. Do you have coins to sell? Can you not vest pocket deal? Can you buy coins? That's what I think. You need inventory and capital. A charming attitude or the ability to sell your product would probably help.

 

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Here in MD, the State hasn't given out a precious metal license since 1991 or so. On top of that, I read the statutes and it states that you must write down the description of the person buying, or selling. height, weight ( approx ) color hair etc. Also if you sell online you could be found at fault as their explanation is you don't know who you really sold the coin to. The precious metals license, is lumped in the same category as pawn shops. So that begs the question to me, if you're not supposed to sell online, then how do LCS's get away with selling online without getting in trouble? One of the biggest online dealers and LCS's here is in MD.

I was told by an attorney that the licenses are grandfathered in. I was looking to obtain one, but you actually have to have a commercial business address etc. to even start. Ugh.

 

"What do I need to become a dealer at a coin show?"


Knowledge.

If you are asking these questions, you should wait.

 

Of course there's no opportunity to buy, but selling on eBay or eBid is 10 times easier than setting up at a coin show, plus bad weather can torpedo all your efforts.

How many people do you want to view your coins, 300 or 300,000?

Coin shows are for the big boys, who might sell more in one day than they would on eBay in a month. But you have to jump through a lot of hoops, and there are some serious risks to hauling your coins around, plus a lot of legal crap to contend with.

 

MD? You should have asked DA Mosely.

 

I showed up with a bunch of coins, a case and some change.

Went home with more coins than I came with.

Have you worked the floor as a "Vest pocket" dealer to get your feet wet?

 

Ok, how long and how do I learn the information?

Ok well how do I get up to par with them?

You have to understand I'm not planning on attending any super big coin shows. The two coin shows I've been too (I've been their more then twice but it's the same place and group running it) have had about 11 and 25 dealers. To answer you question no I have never worked as a Vest Pocket dealer. I don't even know what that is.

 

Frankly, I enjoy attending coin shows. As far as me being a prospective buyer there, my viewpoint is that a number of coin dealers save their "undergraded" coins for the shows so that customers can see the nicer coins in hand with a loupe. Whereby the "overgraded" stuff is placed on eBay whereby you can't possibly see everything from an internet pic.

So...if you're going to do a show and feature graded coins, save the good stuff for the show, the rest can be listed on eBay.

That's my two cents, and that's all it's worth. LOL

 

I think the question you asked "Would you buy from a 15 year old?" says it all. At this stage of the game my advice would be to give up this idea of setting up a table at a coin show and instead, see if you can hook up with one of the other dealers, sort of like an "Apprentice" program. Offer to volunteer to work for him, ask about selling some of your own stuff at his table, but pay attention to what he does, take (mental) notes, and learn from the experience. Do this several times. Gain experience! I can't say this enough. I don't mean to rain on your parade like this, but honestly, a 15 year old acting the dealer will probably get eaten alive. Personally, I would not even stop to browse a table solely manned by a young'un. Give up this idea for now. Find a dealer, make a friend, and volunteer your time to work for him/her. "I went to a couple coin shows" hardly qualifies you to be a dealer. Try it a couple times from the other side of the table before you try it on your own.

When you research what it takes to satisfy the laws and regulations in your state regarding sales and associated taxes (including income taxes), you'll see it's not as easy as simply setting up a table and hanging an "OPEN" sign on the front. State and federal laws make little distinction for age. I would check this out before I ever picked up a Red Book or other publication for setting prices.

I don't mean to deter you from becoming a dealer. But i think jumping into it head first is only setting you up for disappointment. The key to success in any business is to learn all you can about the business, then put that knowledge to use developing your own business. While there is a great bunch of guys on this forum with a lot of knowledge and good advice, the only practical way to success is some type of formal education and hands-on experience.

 

Every dealer I know subscribes to CDN's Greysheet as a price guide. That is not the only reference but it seems to be the"bible" in this area.

 

How big is a table?
Depends on the show, but usually either 6 foot or 8 foot long and 2 1/2 foot wide. You may or may not have a back up table behind you. Oce again this depends on the show and the size of the bourse floor.

What equipment/supplies do I need to bring?
Coins, cases, lights, price guide, cash, references, magnifiers, holders (flips and/or 2X2's),some way to keep record of sales and purchases.

What coins should I bring?
What's ever you think you can sell. Consider that certain coins sell better than others in different areas. This is an area you should reference before you try setting up. Watch other dealers and see what sells well for them.

How much cash should I have?
Who knows. How much you will need will depend on what you have an opportunity to buy that you believe you can sell. Too much cash isn't a problem, but having to pass on a deal because you don't have the money can be a problem. Contrary to what has been said, checks are not that big a problem. If someone wants to use a check and you don't know them, ask for references from other dealers there that the have dealt with. If they can't give references, tell them to write the check for a little more and you will be happy to ship the coins once the check clears.

What else should I bring to sell?

How much money do I need to have enough product to sell?
I'm not sure I understand this question.

What's is a reasonable table fee?
Again it depends on the size of the show, but for a show the size you are talking about I would think $25 -$40 per table.

Should I buy coins?
Sure, you are going to have to be able to replace the stock you sell.

Should I have a "deal box"?
What do you mean by a "deal box"? New purchases that you will flip fast for a quick smaller profit, dead inventory that has been sitting too long and you need to move to recover capital, or a junk box that has had the coins marked up some that are now "50% off"?

Is it worth it?
It can be if you enjoy it, and if you work at it it can become a career. But it does take real work to make it successful.

What's a good guide for coin show prices (are the different because it's a coin show?)?
Typically the best price guide reference is the Greysheet. This is what most of the industry uses. You can get it from the coin dealer newsletter website. www.greysheet.com Since you are just parttime right now there is no reason to subscribe. For a few dollars you can buy the most recent issues and download them off the net.

Should I advertise?
Just starting out I would say No. Advertising isn't cheap.

How often should I go to coin shows?
Depends on how serious you want to be in the business. If you just want to have some experience in the game just attending the two local shows is good. But if you want to start making part or all of you living at it you will have to travel and hit two or more shows a month. Many dealers that don't have shops and just do the show circuit will do 30 to 40 shows a year.

How do I set up my table?
Look at how others set you theirs. You will find there isn't that much variability.

How do I look professional?
Dress neatly, clean clothes, well groomed, and adopt a professional attitude. (Forget the Hawaiian shirts and mustard stains for right now. If you don't get that, it's an inside joke.)

Would any of you actually buy from a 15 year old?
Yes, if he had what I could use at a fair price. Your age could be a problem as others have mentioned. So have a "token" adult there. He can watch the table while you are gone. People will probably ask him questions and he can then refer them to you. Remember Q David Bowers was setting up at shows when he was 16.

Do you ever lose money?
Yes sometimes you will. Frankly just starting out don't be surprised if it happens for awhile and be happy if you can just cover your table fee and expenses. You are learning the ropes and that usually takes time and money.

 

While Q David Bowers started at a younger age, times have changed and people are not as trustworthy and would take advantage of a young person if there was a profit to be made.

 

I don't think people have changed that much, and I would bet there were just as many people ready to take advantage of a 16 year old back then. And I also believe that most people are fairly trustworthy today. Sure there are bad ones out there, but I still find that most people are fairly honest.

 

Inventory,inventory,inventory

Building a starting inventory should be the first thing
that needs to be done somewhere close to $3000-$5000 worth.

And personally if I were you (and I'm not) you should spend
1-2 years building said inventory.
Small inventory=minimal sales.
I was told one time percentage sales to inventory is in the 10-15% range

Example:
Say you only have 8-10 really nice coins in a small inventory generally speaking
those will be the ones that sell and now that you've sold them you make $5 profit on each one.
5 x 10=$50.
Say table fees are $45 how much have you made?
Even if you sell 20 coins @ $5 profit each 20 x $5=$100.

Think of it this way selling any one coin is like finding a needle in a haystack
you need that one coin collector that is looking for that one coin you have for sale at a price he/she is willing to pay.
So having 2-3 coins same date mm still will not guarantee a sale
(no 2 coins are the same).
Now if you have say 2-3 same date mm in 3-4 different grades (9-12 coins)
your chances of selling 1 of those 9-12 goes way up.

And you'll need to do this for at least 2-3 coin series.

And I get your just wanting to get started and there has to be a starting point
but lots & lots of quality inventory is the number one key component to just getting started.

And one other thing you might do is have a note pad and write down what folks are looking for like what coin date grade & price range.
This will at least help you get an idea what collectors are looking for and you'll know what to buy and carry in your inventory.

Hope this helps you in some way. Good luck!!

 

Conder, and others, have given you some great answers.

While you say the flippant answer "coins" is unsatisfactory... the truth of it is, you are setting up at a coin show.

The coins you are offering should be coins you are knowledgeable about. The key to being a dealer is to know more than the buyer. Only you can decide what you'll offer, but it should be material you are familiar with (whatever that may be). You may decide to specialize in a series or two (which can highly profitable), or you may offer a wide variety (which may also be profitable).

The key in today's market is to offer high quality, eye appealing, and original coinage. Don't settle for crap. Only buy nice stuff, and only offer nice stuff.

Also - honesty is key. Much of the key to being a dealer is to have character. Be someone that people can trust. If I trust you, I'll be willing to deal with you. If not, I won't.

 

Mustard stains.

 

Its like deja vu all over again, isn't it?

We've been through all this before, Sully, and the one thing I cannot help but to notice is that you still seem to be demanding the cart go before the horse. You say you're willing to put the work in, yet months later here we are again, giving essentially the same advice. Rushing into this isnt likely to do you any favors, and this is especially true for someone more interested in potential profits than enjoyment, but do as you will. You've again been given fine advice; I only hope you will take it to heart this time.

 

(Bonus points for Yogi Berra quote) I don't really think it is. To start I don't think it is a similar question to what I've asked before. You seem to being saying that I keep going out and doing something before I learn about it, but that is the exact point of this thread, to learn about being a dealer at a coin show. I am and already have put in the work, and I feel this is natural progression of that work. I'm trying not to rush into this and learn as much as I can before doing anything. As a matter of fact I have been given fine advice, and once again you have nothing to prove that I didn't take it to heart before and/or I will not take it to heart this time.

 

seriously?

How long have you been here?

how do you learn?

Seriously?

read, read, and read some more.

 

Maybe you would be best served by building your display case, filling it with whatever coins you have to sell, and just going for it. Rent a table and see how it all pans out. What's the worst that could happen? You might lose money. Report back how it all worked out.