Could you be a dealer without much money?

A fool and his money are soon parted.

Chris

 

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Tim, who?

Chris

 

Even if it was, it would still do nothing to disprove Chris's statement.

The fact he doesn't even have his information right anyway only makes it more funny.

I'm getting another urge to slam some whiskey here in my cube...Detecto is driving me to drink.

 

I don't think Tom was disagreeing with my comment. He was merely pointing out that neither he nor "NA" has a B&M, so Tim's mention of "NA" did not apply.

Chris

 

I agree with you.

What I meant was, even if NA was a B&M, it still did nothing to disprove your statement "most" B&M's don't carry such inventory.

 

All businesses need start-up money. How much depends on scale.

 

This is done on a common enough basis such that it is not rare. However, it is generally a very poor strategy. Typically, a collector will spend some years buying just the right coins in the right grades and will have a collection that is far nicer than can be hoped to be maintained on a rolling stock basis. Then when they set up at their first show or do their first vest-pocket dealer show they sell a huge percentage of their collection (stock) because the coins were so choice or were the "right" coins. The second show sees more success, but by the third show they have pretty much sold everything that is especially nice or choice and then they can't hope to possibly refill their stock with equivalent material. These collector-dealers tend to flame out quickly and have to spend time rebuilding their now gutted collections.

 

Good points. Like I said, I was not considering it, since I could not bear to ever part with them.

 

Uh Detecto wants to become a dealer.

 

Detecto, who?

Chris

 

I believe he said his last name is Godsill.

 

I'll throw in a nickel .

 

I need a few more belts before I tackle this thread..........

 

All businesses take a lot of money and in this economy I can only imagine how many are running on credit alone. The best thing to do is ensure you have a strong online store so that your stock isn't limited to walk ins. It is a shame because it'd be nice to see more little coin shops around town.

 

Here we go with the mistaken assumptions. I never once said I wanted to become a dealer. I just wanted to know how dealers operate financially.

I'd like to become a dealer in the future, but it would probably take $10k alone for inventory.

 

How is the first quote a mistaken assumption? In the same post that you said it was a mistaken assumption, you say you wish to be a dealer in the future, which means you do want to be a dealer. Also, $10k in inventory wouldn't work unless you're planning on being an online store.

 

I am sure QDB(Dave Bowers)started out with a lot less than $10K, or rather the equivalent back in the day.

As for the $10K - if you would stop blowing it on misbegotten eBay adventures you could probably come up with that amount with a bit of saving(presuming your not paying rent, car payments, food, child support etc).

 

Tim , think smaller to start . Selling on the internet and to friends . Go to shows to meet people . Knowing the right people is just as important as funds to succeed at 1st . Take a small business course . Also most successful dealers work hard to make their customers happy and are completely open and honest with their customers. You have a number of people on this forum who are successful , ask them questions when you can . Many have started out with less than you but followed it up with drive and hard work . You can do it if you really want to . Good luck to you if you really do .

 

I can't stress how strongly I agree with what you say here, rzage. No I do not have a B&M either, but contacts are more important than anything else, except for a sterling reputation! I have a couple of customers who send me their really-hard-to-find want lists because they do not have the time or contacts to find the coins themselves ... and they know I do and will! And, meaning no disrespect to anyone, they actually care about their dealer making a profit as well, unlike so many prospective buyers. Knowing where to find and buy their coins, having good credit and a good reputation with the sellers, keeping your word to the buyers who trust you with large sums of their money, and having the contacts within the industry is far more important than how much working capital you start up with.

Best Regards,

George

 

George - in business terms what you are referring to is called "goodwill" - something that cannot be bought or sold - but only earned with lots of experience and people management skills. In simple terms it is the reputation of you, your business or corporation.

One thing that can be assured with goodwill, it takes a lot more to earn it and very little to lose it.