Question on How to start a coin biz.

When I was self employed two decades ago, the health insurance premium for a healthy non-smoking single male in his 20's was $4000 per year with a non-trivial deductible. I can't imagine what it is now.

The solution is a high enough margin to pay for such insurance (and everything else) or do without, absent a spouse. I suspect it's the latter. I'm not trying to get political here-- this is just one of many "existing realities" for self-employed persons at it makes me wonder how anyone with a small business survives, whether in a "virtual store" only or via brick and mortar.

 

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Lately I've noticed a lot of the same thing being asked on many web sites. There is a really big attempt to start a coin buisness by many people right now. Not long ago a thing came out called VHS tapes. Little stores opened all over the place with them for sale or renting. Then every one jumped on the band wagon. Most are all gone now. Then there was Beanie Babies. That too was everywhere for a while. Many ended up selling for $1. Now that too is gone. Stamp collecting, baseball and football cards, etc. Also, mostly faded away.
Attempting to start a coin buisness now is similar. A little to late. Many, many, many dealers have thier own web sites. Heritage, ebay, etc auctions. Coin stores, shows, everywhere. Lately a coin book for every coin also. If you can't sell coins, write a book about them. This boom will not last so be carefull. I suggest you don't over indulge in inventory unless you plan on being a collector after all has faded.

 

I just opened an Ebay store in May. Some of my inventory coins took nearly a 50% jump, so that fueled early sales & profits. But keeping a fresh supply of appreciated inventory, that can be sold at a fair profit after fees is tricky. I'm now taking a slower approach, keeping a closer eye on profits than total sales. Selling without a fair profit margin obviously makes no sense(Giving a customer a fair deal does, but you still need to watch margins closely). Coin boom short lived? That's very hard to predict in my opinion. Some factors that i look at; (1). Many predict the US population continuing to climb as time goes by(some estimates are from the current 300 million to 600 million in just 50 years). (2). Precious metal prices could really generate some excitment & profits, think what melting can do to mintage numbers. (3). The mint seems to try to make their products both exciting & educational, which surely can't do anything but grow the hobby. (4). Whenever the economy picks up, it might mean more money flowing into the hobby. (5). I enjoy it, and life tends to be short.

 

Carl....Just wondering. Do you ever have a positive outlook on anything? Seriously, ever on anything?

 

spares eh?
I just sold a bunch of spares on Ebay.

I sold a few V nickels, buffalo, wheat cents, and threw in some quarters and a silver half dollar.

I think Ebay can work well with those kinds of things. Depend what you have as spare though.

 

Do It!!

Never let anyone talk you out of starting a business. I've started a few. Though some failed miserably, they were tremendous learning experiences. no matter how often soemthing has been done, it can always be done better. And the more people that are doing, the larger of a market there is for it. Just find the right people to work with, a niche, market it well and stick to it no matter what the obstacles or challenges along the way. I'm to Anthony Robbins, but for g-d's sake, when the hell were we taught that we might fail. We should have been taught that we WILL SUCCEED. Anyone can. Go for it.