If YOU opened a Coin Shop WHAT would you need?

How old was this "older guy"?

Did he show you the right way to hold a loupe? (Hold the loupe securely, brace your hand against your head so the loupe doesn't move around and support your other hand (with the coin) against your hand with the loupe (so the coin doesn't wobble around). Or some similar arrangement. The important thing is - you want the loupe and coin to be stable.

 

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Darryl:
You sure can dampen a dream!

But, you are accurate.

 

A killer, preferable inimitable, angle on coin collecting which draws in far more people than are currently interested.

 

One thing that comes to mind would be variety. There ius no way nowadays of just having a Coin Shop. a new owner would have to venture to others collectibles as well. comics, sports cards, etc.

Oh and I think someone might have mentioned this, but lots of money too

Regards,
Stan

 

Thing is I am constantly working on that idea of the dream coming true for me but I have to keep it all in perspective. I have a stable job with a decent income and work 40 hours a week. My wife travels a fair amount and we have two small kids - one still in day care. Even if the financial part was not an issue do I want to give up my family to start up and run a business - the answer to that is not unless the plan says this is perfect for my situation! Until I can come up with a plan that offers me a little flexibility (like having a partner I can trust) I will be okay with my 8-5 stable income and schedule. My wife is very good about asking all of the questions I have offered and more when I start a new plan - often times we work it together and realize the plan has too much risk. Two of the plans that were feasible came a little late as businesses exactly matching the plan opened in the locations we had identified (one in the exact store front). You have to keep the economy in mind as well - on what and where are people likely to spend money on in a poor economy? You have to think it all through!!!

Interesting link:

http://www.businessknowhow.com/startup/business-failure.htm

 

#3 reason the SBA says small businesses fail...

 

All swell ideas from everyone. However, where I live, none of them would work for one simple reason. I wouldn't have a customer base. I could have the best coin shop in the world. But, if there's no customer base for such a place, none of it matters. Sadly, thats why I'll never have a phisical coin shop.
Guy~

 

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As a dealer who started about a year and half ago as a retirement venture. This business has become a learning process to say the least. Previously, I had owned and operated a successful business for 25 yrs.

Having collected coins since age of 9 I thought I could do this, but was not ready for what was about to be my future. Do not let these ideas deture your thinking, it has been worth it for me and very enjoyable.

First order of business is to sell sucessfully you must think like a retailer not a collector. If you are going to do this to collect coins you will find it extremely expensive.

Well, my comment is hope you have lots of stamina plus all the other comments made thus far, I am sure we have missed a few.

O did I mention LOTS OF MONEY.

Start slow and maybe even do this part time from home for about a year until you have an established base.

Good luck with your descision.

 

Don't laugh, yes and a concealed carry permit would be a plus too if you are blessed enough to live in a state that issues them.

 

Try doing it part time and mostly at shows and on the Internet. When my wife and I had more free time we did it and realized 20-45% return depending on how we purchased the coins. The real money is learning how to buy the real wholesale way and not on the Greysheet.

 

If I opened a coin shop, what I would need is CUSTOMERS!!!! Oh... sorry, that wasn't what you meant...

I am sorry I am so late to this party, it's been a busy month in the grocery business, and the tech stuff has been daunting. Anyway...

I would want to have a small range of offerings of Mint and Proof Sets, some key dates of course, and some gold and silver. That's really all I think I would want to carry for inventory as anything that a particular customer wanted, I could probably find if I look for it.

 

Besides all of the great ideas above, you need a business mind. This isn't always obvious. For example, there is a coin dealer who owns an inventory of gold bullion coins that were unfortunately purchased above current market prices. When a customer asks about them, he says he has none, waiting for gold prices to go back to where he made his purchases. Is this smart? Probably not. He should sell the coins below his original cost as long as he can replace the inventory for less than the current selling price. No amount of discussion will ever convince him that this is the right thing to do. He will insist that he refuses to take the loss, not quite grasping that the loss already occurred whether he sells or not.

 

There have been many great ideas as mentioned but Cloudsweeper99 just really nailed one. Reminds me of my boss to a degree.

Now he has done alright with his gold and silver but only because he's been at it for 40 years. He's probably got stuff that he only paid $400 an ounce for a few years ago so selling at current levels balances out what he paid $900 for.

He dumped a lot of junk silver as it came in. When we got $500 face in any denomination he was selling it.

Where he gets silly is proof and mint sets. There are THOUSANDS at the shop just gathering dust in the vault. We've run out of room for the darn things.
He buys them way back of bid in most cases, sometimes it's just over face for common stuff but he REFUSES to sell at less than bid. Well, NO ONE wants them that bad so they sit.

Bid has gone down on many so even if he GOT bid he'd still lose but be up in his mind.

This is why many coin shops, including the one I work at, become cluttered to the max.

If it were me I'd be moving that stuff as fast as possible at a marginal profit to keep the cash flow going. This would enable me to pursue better stuff with better margins and or $ profit.

I have enough clutter in my house. If I were running a shop I'd sure try and keep that to a minimum. I see this first hand everyday.

It's okay to buy what comes in the door. We rarely turn anyone down but if you know you don't really need it then turn and keep going.
Kill two birds with one stone. Give a customer a good deal - they remember that. Get rid of stuff you wouldn't sell otherwise.

Keep the ideas flowing folks.

clembo

 

That stuff's really interesting Clembo. From an outsider's view, it's easy to envision the different perspectives in play there. Yours would definitely seem to make more sense. Get the mint sets moved! But he's waiting for a better day. So how many years must pass before one of you gets to say they were right?


Great thread.


BTW US656, I just wonder how many of those "small businesses" were actually hobbyists? I think the reason such a high percentage of small businesses fail is that so many people have caught onto how to play the tax game and most never were legitimate businesses to start with.
I don't do it and never have. But anybody can set up a business with a tax ID number and can claim losses for 7 years and get 25% of your money back on all your 'business' purchases, before you have to start reporting some sort of profit. After 7 years, whelp, the business failed! Close the door (if there ever was one) , start up the next one and your set (to buy expensive toys) for the next 7 years. It's amazing how many business expenses/write-offs there can be. And nobody in society but the owner really benefits from them. lol

And some people wonder why they must get screwed at tax time.

 

I guess I'd be leery of the overhead that comes with a shop in any kind of decent location. Why not just sell on the web assuming I could take good pictures? That way, I could build the business slowly with little risk/dollars up front and also build a clientele not limited to my location.

If I was determined to have a physical presence, I think another important factor would be the local market. Who's my competition and what kind of business do they do? How active are the coin clubs? What are the demographics of my city (income levels, age, etc.)? I don't know what the right demo mix is, but the club in my down is going to die on the vine given the average age level. Also, if the local economy is hurting, perhaps a start up hobby business might hurt too!

I think one of the biggest challenges our hobby faces is how to replenish the collectors who drive the hobby. I would give some serious thought to how to attract and market to the next demographic curve that could feed the business for years.

 

I'm not a "real dealer", but I buy and sell coins. It is not even a a money making strategy for me as much as it is fun. However, if you buy right you can make money whether it is a small amount, or a large amount.

If you are a small timer like me you have to be patient and careful. I can't afford to buy everything that comes in the door. I have to wait until I truly find a good deal.

I seem to have the best luck with online auctions at Heritage and DLRC. I bid an amount that I have a slim chance of winning, and I either win or don't. I buy stuff off of people, but most of the time I find that people over-value their junk bigtime.... and then you almost feel like you are ripping them off, or breaking their heart when you tell them the real deal.

Sometimes I sit on coins for a long time. I too have learned my lesson with mint collectibles. They are worth the metal they are made of..... People really don't want them.

I actually do best on pre-1933 gold. Morgan Dollars, and for some odd reason people around here are loving the old commems.

 

Things I would need: way more knowldege, more connections, a bigger safe and more money/credit.
I have the time, the business mind and the tax ID number(the easy stuff). Also working on the knowledge/connections.

Vess 1 - In Michigan, I think you have to show a profit for 3 out of 5 years. This can change if u can show that the business chosen is more long term. Most tax situations can be circumvented if you incorporate in Vegas, but you need to have a resident agent there.

 

You know, despite all the talk about the safety and sensibility in staying online, every collector loves to go to a physical coin shop. They have a place. I don't think that can ever be taken away. They're going to draw a hobbyist in. Maybe more so than a bad website. In this day and age, you better have a good website or it will get drowned out in the sea of them. But I can see the internet helping out the B&M store immensely though.

 

I think this is an great point.

I also think the reason that online dealers do so well is because they have made their business more modern. I purchase most of my stuff online because honestly they have better stuff than my local dealer.

Location is everything, so I think an actual shop can do well in a good location. The problem I find with many coin shops is they are far from modern. Often times the dealers are old-school and not exactly in step with where the hobby is.

For example... my local dealer's is not exactly booming in the biz because his shop hasn't been updated (painted or brightened up) since the 70's, he is still selling and displaying worn circulated crap in 2x2s, he doesn't have an online presense, and he is not exactly the most amicable guy in the world. He makes money because he is the only coin shop. Also, I am pretty sure he supplies other non-shop owning dealers in the area.

However, I do think he could be more successful with a little effort, and maybe a bigger selection of slabbed material. I'm sorry... I know people like raw coins, and I know they are cheaper, and TPG's are evil, but the bottom line is Hertage, Stacks, DLRC, Teletrade, and most major online dealers make their money on slabbed coins. People want slabbed coins.

I don't want to buy the coin (usually) that was inherited and now being liquidated after 3 generations of being tossed around in a coffee can. You know the one the dealer payed bullion for, and now wants to use the PCGS price guide as his own MSRP for coins he has graded with "50 years of experience".

I know there are other people out there like me in a metro area of over 5 million that would rather buy a coin sight-seen rather than competing with thousands of people on the internet over a picture.

It is unfortunate that many dealers have not adapted to the market.... which is why I think the coin shop is a dying breed.