Question on How to start a coin biz.

I have been collecting for a long time and I have a LOT of spares. What is the best way to start a biz? EBAY, WEBSITE, or just do SHOWS. I do have a reg. job so this would be part time. Also how do people track there costs? by single coin or by the amount spent for the collection? How do you guys do it.

Thanks

 

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You might want to think about taking the 'So You Want To Be A Coin Dealer?" course at the ANA Summer Seminar. I took it last year even though I have no immediate plans to become a dealer and will probably limit myself to being a vest pocket dealer and sell on-line whenever I decide to deal. Last summer's course was taught by Barry Stuppler and Patty Finner. Barry is the current ANA President and Patty is VP.

The course was geared primarily to those planning to open a B&M (brick & mortar) store but had plenty of good info for other types of coin dealers.

 

First of all I'm not and never have been a coin dealer, but I did a little retail a long time ago. I've been very unimpressed by most of the coin dealers I've met, so my advice would be to look elsewhere for a business model. Focus on quality, honesty, customer service, and giving people the sense that they are important. An expensive fine jewelry store would be a better business model. It probably isn't important to know the cost of each individual coin if you bought them as a group, but it is important to know your costs and to know the profit margin in total. If you sell on Ebay, fill orders fast, pack the coin carefully, don't cheat on postage, and include some sort of professional looking invoice and correspondence. Remember to say thank you a lot. Never make fun of a customer's questions or lack of knowledge. Be interested in what they say, ask, or show you. Never ignore anyone. Tell the truth. Don't be afraid to admit you don't know something. Make it a good experience for the customer. This stuff isn't rocket science, but somehow it's often overlooked.

 

A good way to start is by setting up a table at a local coin club show. You will gain some valuable experience by doing that.

 

excellent advice.............................can i buy some coins from YOU!

steve

 

If I were you, I'd set up a nice, easy to use website to sell your coins. Ebay has lost my interest as far as coins and honesty are concerned, and shows are a rather hit and miss approach to business. I now buy almost 90% of my coins at flat rates from reputable dealers who have online shopping. Good photos and descriptions are a must. Best of luck.
Guy~

 

Setting up a website is probably not a good option because the expense of advertizing to drive business there can be quite expensive. additionally, if you do shows then you will need to be much more talented numismatically than if you sell on the web only, or you will be ripped apart by the very savy dealers there who would be fair with a retail client but think ripping another dealer is great sport (I am not exaggerating this point). Unless you are up to their skill level and can make good dealer contacts so that you can be profitable buying and selling wholesale to other dealers then you should probably stick to eBay.

my 2 cents

 

Mixed emotions to this comment - I know many real brick & mortar coin dealers for whom I have a lot of respect and admiration for as they continue to day by day keep their shops open, work with their customers, advise their collectors, and maintain as much variety inventory (translate about $200k at any given time) as possible for whatever person chooses to walk through the door to purchase a coin in hand from a living breathing source rather than risk being another internet auction victim.

On the other hand, I have met many coin 'dealers' at club shows who likely began as long time collectors, decided to start selling duplicates, rented a table and now refers to theirselves as 'a dealer'.

They're easy to spot at the shows, they're the guys with their heads down, are busy looking at other coins, and make you feel like you're intruding or basically a complete moron for interrupting and asking questions. They know the coins but know nothing about customer service.

Sometimes you get great deals from them because they aren't thinking of the sale of that coin as part of their livelihood, paying the 'real bills' - it's just 'extra money' for buying the next coin. They are also the ones making comments like 'oh, I'm not like a COIN DEALER, I just do this for extra money to get rid of my duplicates.'

But here's the thing few people consider ~ where's THAT guy next week, next month and even at the next year's show when you have more questions? Want to talk coins? Want to upgrade with a consistent source?

I think it depends on the OP agenda & future goals. If it's just extra money while you get rid of your duplicates ~ yeah, have fun at a club show but you'll never make a living that way.

IMHO - If you want to be a 'real' coin dealer you should learn from a real coin dealer. Learning to be a coin dealer from a jewelry dealer is like learning to ride bulls at a Harley cycle shop.

 

Right on, Cloudsweeper. Basics, but yes - they are often overlooked.

 

if you want to sell you can post in the open section here i know a lot of people here might be interested.

 

Well thanks all for the advice.

Someone asked about the goals, and here are some of them:

1st- to have a self supporting(money) coin biz. that I do part time(I do not want to quit my good job)
2nd- Be able to do it on my time off from work.(2am in the morn/weekends)
3rd- have some way to consign coins(charge a sellers fee, plus I will not have to come up with the cost of the coin)
4th-have a large network to be able to find that coin for the person that wants it.(finder list)
5th - sell the following cert'd companys coins--PCGS, NGC, ANACS, and ICG
6th --Not to pay EBAY's fees!!!!
7th--Have fun and enjoy coins!! If it were my full time job i dont think I would have fun.

 

When you figure out how to do all that, tell us !!!!
No actually, it can be done and is a ton-o-fun at times, and very aggrivating at others. I see nothing but great advise here from everybody. Me, I'm too much a collector I think, I like putting coins up for sale, but have a harder time selling them because they are mine and I want to keep them, lol. I'm not a dealer, I just play one on ebay.

 

Agreed. Too bad so few members use this opportunity.

 

#1 - sounds conflicting if you want it to be self supporting but not give up the 'good job'
#3 - who would want to consign their coins w/someone who isn't giving it 100% dedication for their fee earned ~ how serious will you be if you have a 'bad day' on the good job or a busy weekend yet that seller is needing that coin sold.
#4 - that large network is actually a very small group of people when it comes to finding 'the coin' once you get beyond the common date low grade coins and they take this coin business very seriously
#5 - ICG ?
#7 - Hmmm.... coins are fun; trading is fun; business is business. Maybe that's why you wrote 'biz' instead of business and I've completely misunderstood.

 

I believe that goals 1/2 and 3/4 are mutually exclusive. I don't know of a single part-time dealer who is able to charge a seller's fee on a regular basis. Additionally the large network you are mentioning isn't something that can be done part time. It has been my full time job for nearly a year now and I am just starting to develop a good network of suppliers and I work for the largest company in the business; one where everyone knows my check will be good the day I write it and where I have basically unlimited credit to work a deal. Even so, it has taken 50-60 hours a week, plus attendance at evrey major (and most medium) coin shows for a year to start having that large reliable network and I still have a long "want list" of stuff that I can't find at the moment.

The upkeep on a large list of suppliers is also something that you are underestimating. For me (or any other wholseale dealer) to want to do business with you you need to establish credit first so that you can write a check instead of having to pay with cash or a cashier's check. Unless you are financially sound to the point that your bank will vouch for your creditworthiness you will have to build that credit through numerous positive transactions. Buying and selling wholesale is quite challenging (unless you are willing to pay retail prices) because the people that you are dealing with will know at least as much as you do (and usually more, as a newbie dealer) the vast majority of the time. This is their livelihood and they don't make very many mistakes.

Finally, how are you going to buy and sell to/from the public if you are working somewhere else full time? Unless you deal entirely online and via a voice messaging system you will have great difficulty fitting it around your regular job. But if you do go online/VM only then you will cut out the huge group of potential custioners/clients/suppliers who like to deal in person.

With all due respect, you sound naive (evidenced by your overly simplistic goals). Even though I still think eBay is the right place for you, it soulds like you want to try working some shows, so try the smallest ones in your local area and once you are known by everyone at that level then move to larger shows.

You should try to always buy from people when you look at their coins (even if you have to overpay a little at first) because only a bad check can ruin a wholesale relationship faster than being a tire-kicker and chiseler. Wholesalers need a reason to deal with you instead of someone else, so you need to remove as many potential barriers as possible, so that they will make time for you/save you things they think you might buy/call you if they come across a deal that might work better for you than them. If dealing with you becomes a pain in the tail they will choose to deal with someone else because it is easier and more pleasant. I guarantee that the people I do the most business with are the one who make me the most profit and don't waste my time; you need to be one of those guys if you want to be a successful wholesale dealer.

 

This is a most interesting thread for a new collector with years of retail and other business experience. I've been wondering how on earth a coin dealer makes a living in this very public, stable market. Everyone knows exactly what everyone wants, what is available, and what everyone pays. So, why should I go to Fred for my coins when I'm going to pay the same, +/- 10% wherever I go?

The answer is here: strong, dedicated customer service. Willingness to explain to and deal with new collectors' uninformed questions; ability to meet and maybe even anticipate the needs of experienced collectors; capability to provide continuity and perspective to clients year on year.

Having just gotten started along with my young son I'm looking to develop my network of suppliers and, I'm sure when I've got enough duplicates or my interests change, buyers. Thanks for the open exchange on this topic it has helped me clarify my goals as a collector.

Mike

 

Good luck and Cloud--good advice.

 

I like the idea of setting up at a local club show. Low pressure, cheap tables, and you'll meet a ton of people. It will take a long time or tremendous effort to become a full time coin dealer - I know many coin dealers, my father has been in the business for over 40 years. Very few of them are full time, most work the bigger shows and do a ton of referral business.

I wish you luck, let me know when you get up and going.

-Steve

 

Insurance

One thing that I have always been curious about is how coin dealers buy medical insurance. A brick & mortar shop needs liability to cover a customer getting hurt. And they need theft insurance.
But as far as actual medical insurance for the owner's health, it can be quite expensive. I have asked this question to quite a few local dealers. Some have none at all. Some are covered by a working wife.
Some are old enough to get Medicare/ Medicaid. But for a person just starting out, how the heck do you pay for health/ medical /emergency insurance?