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Message:: [QUOTE="Hobo, post: 455722, member: 11521"]The coin business is like a lot of other businesses. Let's look at a small used car lot: How can a single guy afford to buy 50 cars to sell on his car lot? Credit. He owes the bank (or some other lender) for most of the cars on his lot. The lender may require him to pay 10% or 20% of the purchase price of each car and loan him the remaining 80% or 90%. That means that every day a car does not sell is another day of interest he has to pay (and less profit he can make). The sooner he sells a car the sooner he pays off the loan and the sooner he gets his profit so he can buy another car or two to sell on his lot. He may also have a few cars that he is selling on consignment. He has not invested or borrowed any money to buy these cars but they take up space on his lot. Depending on his agreement with the owners of the cars he may charge a percentage of the sales price or he may keep everything above a certain price as his fee. Selling on consignment is a good way to expand his inventory at no additional cost.  Like most businesses this guy probably had to srart small. Maybe he started out with only 5 cars to sell. By buying nice cars and pricing them compeditively he was able to sell them quickly. That allowed him to buy additional cars to slowly increase his inventory.[/QUOTE]