I've been mulling over becoming a coin dealer (part-time) for months now. I know of someone I can purchase a decent amount of coins from that can become my "seed stock". My personal collection is too limited to be the starting point of my dealer stock. And, besides, I really don't want to part with most of my collection anyway. So, first off, let me answer the questions that are probably hitting your minds right now..."Yes, I am sick in the head" and "Yes, I realize I'm not in it to make a ton of money." I want to do it because I love the coin hobby, love being around coins and dealers (see... I AM a little sick!), and I want to make a little money on the side. Personally, I plan to treat every potential customer/collector with respect and fairness. I want to basically concentrate only on U.S. coins and mainly on Type coins (not too much on the modern stuff). I'd like to break into coin dealing as inexpensively as possible (beyond the initial stock I'll have to purchase which will be a bit expensive). But, I want to start out right and not immediately with a bad impression. My method of selling at first will be local coin shows. I would appreciate any advice from dealers and collectors alike. Thank you!
I think that it is great that you are thinking of becoming a part-time dealer as an expansion of your hobby. Why not have fun at both ends of the spectrum. I see no reason to give you advice since I am not a dealer and it seems as if you already have a game plan.
Read these threads: http://cointalk.org/showthread.php?t=1095 http://cointalk.org/showthread.php?t=966 There are other posts regarding this topic, but this should get you started.
Prethen, In addition to the coin shows, are you looking to sell via the internet or were you considering a brick-and-mortar shop?
Actually, I'm really glad you brought this topic up! I have no intention of opening up a literal coin store (waaaay to expensive and too much overhead). But, I do want to consider using an Internet store. The question on this is....How?...and "How to do it relatively inexpensively?" Since I'm only going to be a relatively small-time dealer, I don't need and cannot afford an expensive site. Is there a simple way to set up an Internet shop that won't cost me a ton each month to keep running?
National Coin Delaer....thank you very much! That was a wonderful thread on becoming a dealer that you pointed out. It appears by the first message in the thread you're saying don't get into the business unless you get in with both feet. Actually, I respect what you said very much, hence, why I feel a bit overwhelmed with thinking about doing this for fun, part-time. Your thread starts out by saying that some fairly major expenses need to be incurred in order to not get severely burned (insurance, safes, licensing, etc.). I do plan on joining the ANA, but the other stuff seems quite overkill for the small-time business I was thinking of doing. I got the idea to get into this from another guy who is also a part-time dealer (first a collector). You mentioned that the post office rarely pays out on coin claims even though it has been insured. Your note here correlates with what another dealer told me since he never insures his mail since they've failed to pay. Is it safe to say that it's a complete waste of money to insure coins through the U.S. mail?!?! Hmmm... you've given me some food for thought. I guess you could say I'm a bit more nervous about jumping into the formal coin dealing waters. ...Maybe I can find a way to work with a current dealer... Thanks again!
Prethen, The only relatively inexpensive way that I know of to sell via the Internet without having an existing customer base or paying a lot for advertising is eBay. I know there are a lot of people here who are going to disagree with me, but hear me out. When selling on eBay, you don't need to start with as large of an inventory. Ebay already has the existing customer base. To start there and get some exposure could help you quite a bit. In addition, people are always looking for honest sellers on eBay (especially because there are so many scammers out there). For $10 per month, you can open an eBay store. Once the sale is made on eBay, there is nothing preventing you from including a list of your inventory with prices or your website address so that they can access your website and purchase directly from you. If you have specific questions on how this can be done, please PM me and I'll answer all that I can.
i went and read they old threads again and glad i did.very intresting to read. Im run my own buisness too in construction and customers are the very same in this line too.Some want everything done for nothing,Some want a fix up price when you quote but a renew job when your done.Some you dont see till the end of the job others are hanging around watching from the start to finish.And some even love to help out, ive had customers many times running getting tools for me from the van ect, hauling ladders all sorts. The key to self employment is being able to size your customer up correctly.Many customers prefer to be called mrs smith or mr jones others bill or sarah.Half of self employment is customer relations, if a customer feels your honest and genuine they will do buisness with you even if they can get a better price elsewhere. Coins seem to be a buisness that runs on such low profit margins, there margins most would find hard to succeed on i know i would. And like any buisness its foolish to jump right in,the best way is to start small very small.In my line you can start with an old van a few cheap tools and a few shop window adds.In coins you could start by first selling some coins you already own and learn the ropes.The biggest misconception in buisness is how much it costs to start,to many look at shops or big set ups and think heck if i want to start my own buisness i will need 100k.Well before you go spending 100k experiment just like lot of shop owners starting selling at markets or auctions,coin dealers by selling there collections,property developers by doing odd jobs.hairdressers by doing a home service. Keep your job and your money in your pocket and start small and test the water before ever spending a load of money and time on a venture.It is also so much easier to drop and change tact when you havent invested the life savings.Personally i did all kinds of self employment buisnesses each new one would have to make me more than the last or i would revert back,hence i cannot stress enough keep the old job till the new one is paying more, then look ahead at what you can do next I cant talk about the coin trade its not my line of buisness but same rules apply for all buisness.Though i do sell a bit of coins just as a kinda hobby realy i just like to sell,and i dont do to badly from it some i lose on some i gain but overall im up.But most importantly im learning everytime and getting better. Perhaps this is the way the op should be going. ive also found that its not realy the people that are the best at there jobs that are the most successfull at making a buisness out of it, there are many great bricklayers and plumbers out there that still depend on a paycheck im sure coins is exactly the same.
You make some very good points. I have done limited selling on eBay. Unfortunately, all those coins were sold at a loss. They actually sold below wholesale which was really frustrating. On top of that, I got the pleasure of paying eBay fees, etc. I guess it could be a toss-up for a small-timer like me between the expenses of eBay versus the overhead of a coin show. I could try both. Although, after my last experience on eBay, I'm a bit gunshy about trying to sell any more coins and take more losses. That wasn't much fun. Still, it's food for thought. Thanks for the reply!
Prethen, Before considering any profession, you should put a lot of thought into it. Part time always looks good, but how many part timers do you know that are successful? Taking a job or internship with a dealer is a great way to start. This is not an easy business at all. A lot of time and effort is required, and this does not match up well with part time. Also, the best way to make money is quick turn around time. This requires capitol and a working knowledge of who is buying what. Trying to sell from the web looks easy on paper, but isn't in the real world. Now experienced dealers can incorporate a site to their existing business and become more successful. I understand that Ebay makes things look easy, but in reality, how many Ebay dealers make the transition into mainstream dealer? Food for thought?
There are some safeguards you can do to prevent from selling items at a loss on eBay. You can set a reserve price (reserve has to be met to buy it), a starting price (base price to start the bidding at) or a combination of both. You can also use Buy It Now for selling at a fixed price. I don't have any experience selling on eBay, but have bought quite a bit on it. I have been happy with the coins I have purchased from there with very few exceptions (which I posted in a different post). One was related to something I should not have bid on, just was oblivious to the warning signs and the other was a seller error that is getting resolved. There are replies with a lot more experienced members than I offering their advice on the subject. I am just offering some tips on the eBay selling aspect if you go through with it and go that route. PR70
I can't disagree with anything you said. I didn't want to put a reserve (or starting bid) because that incurs even more eBay fees. However, in the future I probably will put a starting bid and risk losing the fees without selling the coin.
you got to work at finding 1 or 2 items that you can buy and sell at a profit, then try others work up from there. i actually do well in the uk selling jfk halfs 1964-69 as a silver set last couple i sold for near 30 usd each, so i repeat till it dont sell no more.ive tried common date morgans and failed,1/10 modern gold eagles failed,quite a few things ya gotta be invented and use best description you can.Build yourself templates this saves you loads of time, use a auction add creator and image hoster this will save you paying extra to show both sides of a coin. i have done best outta buying mixed lots and cherry picking the best outta them to sell seperate.but that is shark infested dont buy like that from anyone you see that regulary sells coins as theve done the cherry picking already.And watch there not selling single coins too.But with a non collector finding a load of old coins in grandads old house and a BIN with a dodgy bad picture you can sometimes get a steal.Just gotta use your common sence
