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<p>[QUOTE=&quot;National dealer, post: 6493, member: 487&quot;]This thread is for all the members and guests that consider jumping head first into this wonderful coin business.</p><p><br /></p><p>Now this will not apply to those people who choose to sell their coins on Ebay. For our firm, they are nothing more than any other customer. When they get bulk prices, they have to buy in bulk.</p><p><br /></p><p>First is obtaining your federal EIN. Then your state wholesale and retail tax id numbers.</p><p>Second is getting your company listed in the Numismatic Dealers Directory. This is such an important aspect.</p><p><br /></p><p>Being a member of the ANA, PNG, and some other organizations will also help you to become recognized. Some of these organizations have very strict guidelines, and even being recommended by other firms.</p><p>Next is location. If you choose to operate a website, storefront, or office space, a business location is a vital point.</p><p><br /></p><p>Advertising: Consider for a moment that these large dealers are spending thousands a week in their placing their ads. They do this because it works.</p><p><br /></p><p>Insurance: Liability insurance should be a minimum of 1 million. Every dealer in the world will tell you that if you get sued, the amount is always in the millions. If you sneeze on someone and they catch a cold, you can get sued. Not to mention some third party grading services that make a habit of suing people.</p><p>Also, the major shipping companies including the post office DO NOT insure coins. Some rare occasions they will pay for a lost or damaged package, but it is not often. Most of the time, you end up losing all the way around. </p><p>Property loss and damage. Do not skimp on this. Make sure it includes any transportation. Nothing like having your car stolen with your coins in the trunk.</p><p><br /></p><p>Safes: Here is another place not to skimp. Big and Heavy are the way to go. </p><p><br /></p><p>Now onto buying/selling. </p><p>This is often where want to be dealers get confused. Buying is often hard work. There are no coin fairies running around selling coins. Join in on the dealer networks. They aren&#039;t cheap, but you will find nothing in this business is. These networks allow members to buy and sell coins with each other easily.</p><p><br /></p><p>Profits: Here is often a subject that is so out of line. I will provide a short example. Everyone is following the metals market so I will use that example.</p><p><br /></p><p>Take Silver Eagles. Lets say you find them offered for the buy price of $8 per coin. This is the bulk dealer price. Bulk means 500 coins or more. So you buy a tray of Eagles at $8 each, bringing your total to $4000. Once you move these coins at an average of 60 cents a coin profit, you have made a grand total of $300.00</p><p>Now if the price drops or raises, the profit goes that way also. Some dealers move only a tray a year, while others move this in a matter of days. </p><p>Bullion is only used for quick transactions and customer satisfaction.</p><p>You will never get rich selling bullion.</p><p>Another important part of selling is who to sell to. Making good contacts with many dealers will assist in this. Sometimes it is not in what you have, but more of who you can sell it to.</p><p><br /></p><p>Now TraderNick and I are the two most active dealers on this forum, and our abilities to move material will be very different. Knowing who can move the material will often equate into who pays the most money.</p><p><br /></p><p>In buying, two principles are the most important. Make sure you go through with any deal you strike. Do not ever back out of a deal once the numbers are agreed upon.</p><p>Second, make absolutely sure your payment is good. Writing a bad check will spell doom quick. All dealers talk to each other on a regular basis, whether it is at shows, online, or over the phone. If you can&#039;t make your paper good, you will not survive.</p><p><br /></p><p>Customers. These are the people who keep you alive in this business. Whether they are retail customers or other dealers, make sure you let them know that you appreciate their business. Customers buy out of want. As a dealer, you buy and sell out of need. There is a huge difference. A thank you will go such a long ways. Always leave a little meat in the deal for your customers. </p><p><br /></p><p>The most important aspect is honesty. Nothing in life means more than your word.&nbsp; &nbsp; &nbsp; </p><p><br /></p><p>Take into consideration that being a coin dealer is more than just selling coins. Many people will never understand the time and effort put into making a living in this business. Everything you do, will have a small effect on the rest of us. Just look at the customers of the TV shopping shows. How do you think they view the rest of us dealers after they learn they just paid 400% of retail.</p><p><br /></p><p>So many other costs go into this business. Employees, supplies, and the traveling. Finding good help is next to impossible. So make sure you take care of your people well. </p><p><br /></p><p>A line of credit: Make sure it is a good one. You never know when that monster deal walks in the door. Don&#039;t let your customer take his coins to another dealer. You may never get them back.</p><p><br /></p><p>I know that this thought doesn&#039;t exactly follow in order, but it is the basics of this business. Profit is made on volume. Customers keep coming back because of service. Deals are made because of your honesty. </p><p><br /></p><p>Now I am sure many will not agree on these things that I have listed, but I can only offer the opinion by doing this everyday.[/QUOTE]</p><p><br /></p>

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