1st year in the " coin biz"

Congrats, Jack! I'm happy I could help with at least three minor purchases from Mesa Coins. Hope to buy a lot more in the future.
Guy~

 

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Very nice review of your progress! Congratulations.

 

Great post! Best of luck in year 2!

 

I love this site, congrats jack EVERYONE NOMINATE THIS THREAD!!!!

 

Congrats and good luck in the future. Most of the things you mentioned could be translated to the pure collector also. Know what you are buying. I have read books on what and how to buy, I just don't have the patience and discipline to hold out for the best I can get for my money. I would make a lousy dealer.

BTW Jack, are you still selling hot sauce?

 

Happy aniversary Jack. Hopefully many more to come. Great post!!!!!

 

I want to join the parade on a great post, Jack. Very insightful and enjoyable post. Please add to it with your other observations/lessons learned.

 

Congrats Jack!!! I hope you have many great years ahead of you. This is one collector who will always be a loyal customer of yours.

 

Congrats Jack! I hope you have many more successful years in the coin biz!

 

I'll bet the casinos have been wondering where you've been. Just kidding. But, they are on a losing streak, now (poor guys); here's a linky on that: http://www.chicagotribune.com/travel/chi-0308-tr-vegas-downmar08,0,1743105.story.

You're giving a lot of us, here, an education, Jack. Thanks! And congrats!

 

Thanks for all the well wishes folks, it does mean alot, and many of you are customers as well, I thank you for your trust and support.

One thing that I think really changed me was the 2 diferent worlds that exsist in the coin biz. Buying and Selling.

It is a totally different experience being behind the table rather than on the buy side. I find myself to many times thinking " collector ", but I do think that gives me a better additude and perspective on the situation. I hope that does not change, it will not change, how's that.

Long ago, GDJMSP advised me to walk a show and test the selling to dealers. I think that was the greatest advise ever given. It grounds you in reality when you have a cherished coin to sell, and it get's a 2 second " not interested " from an old salt dealer, I had to learn not to take it personally. Selling that way will realy open your eyes to where you stand, and I 100% agreee that that experience will make you a better buyer.

Many "rare" coins are as common as the dirt we walk on., You need to truly understand that. Your VF-30 1924-D Lincoln that you expect to get redbook price for is not so rare when I have 7 of them at my table, and there are 10 more of them at any given show. Only if your's is well struck, mark free and eye appealing would a purchase be considered , and then it will be "behind the sheet". This goes with every coin as I do not deal in rare coins at all, RARE coins are way above my level. I used to get offended at these dealers, but now I understand so much better. I hate to see a sad face leave my table, but sometimes it is just the way it is.

Out of time, I'll add more later.

I have some mentors that need acknowledgment, and some true great folks that have helped pave my way.

I will get into buying at auction, and another big thing that most do not do......the amertisation of costs involved. Are you REALLY making a profit? Or are ya just having fun.........

 

Great post, keep at it AJ, we need decent folks like you in the market.

 

Congrats Jack!

Mesacoin.com is very customer orientated. The prices are very very resonable compared to other websites. Good to see you wean yourself off ebay.

 

Jack, you inspire me man....

 

Now I'll do the costs involved, from a business point of view. Strictly anylitical.

I'll start with Ebay, because thats where I started.

Folks gripe and moan about the fees, but let me tell you from experience, Ebay is actually one of the cheapest ways to sell ( it's just the enviornment and rules that have soured me )

Simple. List a coin, take 90-95% of the selling price and put it in your pocket. You can do this from home. You can also buy on the bay and sell on the bay, the same coin for profit if your sharp and diligent. There are bargains out there.

Coinshows:

My Scottsdale show is a cheapie but a great show full of great folks, I have made alot of great friends there. Sure I was a newbie and fresh meat at first, but, I think I fit in well these days. I have developed my regulars in a short time.

Scottsdale table fee is $45. Thats right off the top. Glendale show is $45. Mesa Coin Club show was if I remember correctly $185 and the best value on the planet as far as coin shows go. These local shows are a great way to get your feet wet at very little costs, and that's how I did it.



Tucson runs me near $400, then add 200+ miles of travel by truck and hotel costs. As a semi major regional, Tucson is becomming a great show, and is a steppingstone to the majors. I cringed when I figured out the costs outlined above, I had to PROFIT $700 or so just to break even !!!!
I sold 2 SVDB's my first timethere and that did it for me, then the second show I did there I sold 2 more. I have read on other sites that some dealers have never sold an SVDB expect to other dealers, I beg to differ.

Long Beach is a different story, I never get a table there ( yet ), and it is expensive for me. $300 minimum for lodging ( $600+ if you like the nice places ) $200 rent a car and another $250 airfare. Add the incedentals and I spend about $1000 before I buy or sell a coin.

Last Long Beach, I brought $10,000 cash and a loaded debit card. Add another $12,000 or so at Heritage on " terms" and that was my budget. I think I bought about 5 or 6 high grade SVDB's, and a load of raw coins.

We have to figure that $1000 cost into the coins, and don't forget the Heritage " juice and interest ". If you were to look at an auction archive on any given coin sold by any given dealer, you would see that coin sold for $3500 lets say, but hey, that greedy dealer is asking $4500.....

It is very difficult to figure all these thing on individual coin ( yes, I do have price/date codes) , so I do it on a total basis. I have x amount of coins at X cost.......you have to keep that number in your head at all times, and on ocassion, you run several mental tabs at once. Only then you'll figure out if your making money OR having fun.

To me, having fun is great, but I am out to make money as well. To be perfectly honest, if I had to feed myself on coins and pay my household expenses etc, I'd starve. Only if I had the time to dedicate full time, could the income jump. As a vest pocket/web guy, I am doing alright, but I always have that cushion of a very nice day job in case I need a bailout, lol.

 

That's good info, Jack. Many buyers either are not aware of the costs of doing business or they choose to ignore them. Can you give us an idea of what your Year 1 overhead costs were as a percentage of the total of your 94 sales?

 

I can do that Bruce, I'll get it to you in an email. I am doing last years taxes as we speak.......

A quickie figure would be around $6000+ in non coin costs vs XX..K in sales, BUT, I had a ton of inventory already, and even more now, you have to figure that in

 

This is exactly why I hate discussing profits about coins. It just takes the fun right out of it.

Ruben

 

Eddie,

While I don't dispute that the gaming industry has been hurt as much or more as every other industry by our failing economy, I have a hard time believing anything written by a guy who doesn't even know how to spell Pai Gow in his article. He spelled it Pow Gai (paragraph 3).

There are many other things in that article that are just wrong that I won't go into, but suffice it to say, that guy has no business authoring an article about gambling or casinos.

Paul