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<p>[QUOTE=&quot;Hobo, post: 515534, member: 11521&quot;]Those of us who are self-employed understand that it costs money - a <b>LOT</b> of money - to operate a business. Coin dealers are no different. Let me see if I can name a few expenses facing a coin dealer off the top of my head:</p><ul> <li>Inventory (coins) and supplies (books, magazines, loupes, scales, tubes, coin folders, other items to sell) And remember, the longer a dealer holds a coin the more it costs him in interest and the less additional coins he can buy for inventory.</li> <li>Interest - If you borrow money to buy coins to keep in inventory you are paying interest. If you have enough money to buy your coins using your own money the money is not free because you could be earning interest on the money.</li> <li>Advertising - Have you priced a Yellow Page ad lately?!&nbsp; :bigeyes:</li> <li>Rent (or mortgage, property tax and property insurance), signage, parking, etc.</li> <li>Phone</li> <li>Showcases, displays (for B&amp;M dealers), supplies, computers, software, equipment</li> <li>Insurance (for inventory, fixtures, equipment, etc.)</li> <li>Business license</li> <li>Security - alarms, security cameras, safes, security guards, etc.</li> <li>Web site</li> <li>Education (e.g., grading &amp; counterfeit detection (available at ANA Summer Seminar, major coin shows, etc.))</li> <li>Books, reference materials (e.g., books on VAMs and other varieties)</li> <li>Tools of the trade - loupes, lights, scales, calipers, subscriptions to Grey Sheet, Coin World, ets.</li> <li>Professoinal memberships - ANA, PCGS, NGC, PNG, CCE, etc.</li> <li>Employees</li> <li>Coin Show expenses - travel (airfare, rental car, motel), table rental, security, security shipment of coins (e.g., Loomis or Brinks)</li> <li>Taxes - don&#039;t forget that if you are self-employed you pay 15.6% Self-Employment Tax on top of your normal Federal and State Income Tax.</li> </ul><p>Those are just some of the expenses a coin dealer faces. He (or she) must mark up his merchandise enough to cover those costs and to make a reasonable profit. Otherwise it makes no sense to be in business. Nobody is in business to break even or lose money. </p><p>&nbsp;</p><p>It is so easy for someone to question a business&#039; markup if they have never operated a business. My brother is trying to start a small business. At first he thought it was going to be a breeze to get started. Now that he has gotten into it he realizes how complicated and expensive the business is to get started. His overhead expenses are <b>WAY, WAY</b> more than he ever imagined. I think now he better appreciates what every other business faces.[/QUOTE]</p><p><br /></p>

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