Business ideas and suggestions

Seanthecoincollector · May 11, 2014 4:25AM

i have loved the hobby of coin collecting since i was a kid and have also loved the idea of buying and selling coins, so i have an idea for a small business online. i know many people are involved already. i would like to start selling regularly on the coin forums i am a part of. i would like to inspire trust and confidence when buying from me and i will try to always keep coins in stock so they are always available to ship. i also was thinking in the future of branching out and have a website, i would like to ship at low costs and i would like to always include tracking. i also want to be able to able to sell below retail as much as possible!! I do have a small stock to start with and a lot of coins on the way!! Any suggestions would be greatly appreciated! Thanks for your time Sean

crypto79 · May 11, 2014 5:12AM

Trust and reputation comes after positive transactions which will enable you to charge more as people become more comfortable with you and your "eye". If you put quality coins at competivetive prices enough people will bite. That said the best advice I can give you is in a liquid two way market profit is made on the buy side of the transaction and not the sale side.

If you master pricing you will sell most coins about where they should land with the fulls off setting the wholesales, wins happen when you get into the coin well. There is a good price for every coin but get into too many bad coins and you will get a bad reputation.

291fifth · May 11, 2014 5:55AM

Buying will be your biggest problem. If you can't develop sources for new material your business will go nowhere after you have sold off your existing stock.

Don't expect much, if any, help from dealers and be wary of anything they may offer you.

If you are undercapitalized you must address the issue of financing.

Start thinking like a dealer and not a collector.

Pokermandude · May 11, 2014 6:05AM

<< Start thinking like a dealer and not a collector. >>

Note too that it is very difficult to wear both hats at the same time.

Buying at retail and trying to resell for a profit is generally a fool's errand. As others have said, it is all about finding material at attractive prices. This is the hardest part.

On the other side of the coin, I've missed out on some choice pieces that I'd have loved to have in my collection. All because I was thinking like a dealer, trying not to get buried in a coin. I wasn't willing to buck up and pay retail or retail+ when maybe I should have for the sake of my collection. I probably also under-judged the quality/value of some particular pieces. Price guides are a good guide, but in the end it is about an individual coin, and knowing the market for said coins.

Seanthecoincollector · May 11, 2014 7:30AM

Thanks you for the the advice and ideas!! It is much appreciated, here is what i have up for sale presently. i think the prices are fair but if they are not could somebody please shot me a message we could discuss more fair prices ?? Any input on my prices people have would be very welcomed but please send it in a message and not discuss it here !! Thanks all

http://forums.collectors.com/messageview.cfm?catid=7&threadid=917677

TomB · May 11, 2014 7:34AM

I see you have been a member here for about nine months yet have only 50+ posts. This fact may limit your reputation and make it less likely for folks to trust you. Also, it may mean that you are not so familiar with the board rules and the link you have put into this thread to direct folks to your BST thread may be viewed as poor form if considered to be essentially spam.

bidask · May 11, 2014 7:39AM

Do you belong to a local coin club that you can buy, sell and trade?

I admire your wanting to start a little coin business!.

derryb · May 11, 2014 7:47AM

Look into the business side of your endeavor. Are you gonna claim income as business income or consider yourself an investor and claim your income as capital gains/losses? Capital gains is the easy route, especially when filing taxes, as long as you do not consider yourself or operate as a business. Either way study the IRS website for records you will need to maintain (again capital gains/losses is a lot easier). Develop a good Excel spreadsheet that will hold your inventory and all the information you will need at tax time. Just plug more info to it when you complete a sale.An ebay store is a great route - lots of buyers can easily find you, discounts with the "store" (and another 20% off that if you become a Top Rated seller), easy payment via paypal, shipping discounts, print labels, etc. Ebay can get you up and running ASAP while you focus on other selling venues.

toyz4geo · May 11, 2014 8:08AM

<< i have loved the hobby of coin collecting since i was a kid and have also loved the idea of buying and selling coins, so i have an idea for a small business online. i know many people are involved already. i would like to start selling regularly on the coin forums i am a part of. i would like to inspire trust and confidence when buying from me and i will try to always keep coins in stock so they are always available to ship. i also was thinking in the future of branching out and have a website, i would like to ship at low costs and i would like to always include tracking. i also want to be able to able to sell below retail as much as possible!! I do have a small stock to start with and a lot of coins on the way!! Any suggestions would be greatly appreciated! Thanks for your time Sean >>

I used to collect Hot Wheels and the same idea crossed my mind. But I found it difficult to part with some of the harder to find cars. I ended up with a pretty big collection. It is hard being both a collector and a dealer. Good luck with your endeavor.

BillJones · May 11, 2014 8:17AM

<< Buying will be your biggest problem. If you can't develop sources for new material your business will go nowhere after you have sold off your existing stock. >>

Buying is the hardest part of the coin business, and my sense it's hard to buy now that it was before I retired because there a shortage of nice material available. A lot of dealers tell me that finding properly graded, attractive (for the grade) coins is really hard these days. I know that as a collector I have pay what I considered to by high prices for coins I like. Since I'm not looking to sell them immediately I can pay a bit more, but in many ways I think that this coin market is a bear. You can buy cheesy stuff cheap, but selling it at a profit is another thing.

SamByrd · May 11, 2014 8:38AM

You will have to earn trust among buyers and even many sellers. Keep in mind the history is searchable on these forums and many will trade information here about a buyer and a seller privately.

Post an item for sale and be very careful to follow through fully , if you do so every time you will be able to carve out a niche in time. Tracking is a must as well as very prompt safe shipping. Specific details description and adequate images help to build credibility.

Price is a significant factor but also good for grade material can often sell for more then retail. Acquisition cost is greater and more competition on nice materiel and in some areas such as early US type and Barber material many will pay for nice examples. There is opportunity for the savvy seated material buyer many coins sell for more then trends , if you can find them. Constant self education is a big factor with those that want to sell ongoing. Specialist often can do well in a particular series.

Many do have websites and its a good method to display your entire inventory as reputation is earned so will traffic be greater your clients will often guide you as too what they want to buy and assist you
with building your business if your listening.

Seanthecoincollector · May 11, 2014 8:44AM

Thanks you all for the support bid i am not a member of a local coin club i have actually never heard of one around here maybe i can do a little research into one. As for taxes i am not 100 percent positive what to do in that area i have never put money from buying and selling collectables on ebay in my taxes i just keep it separate because it was a lot of money mabye only like 500 bucks last year. Also i will have to try to keep both up my end of the bargain and also make the customer happy. This is not my first rodeo with selling collectables but i never did it officially just a piece here a piece their!! also interested if accepting checks is ok and how do i know they won't just keep the coin and never send a check !!

derryb · May 11, 2014 8:56AM

<< also interested if accepting checks is ok and how do i know they won't just keep the coin and never send a check !! >>

You don't know. Best to only ship items that have been paid for unless you are starting out on the BST where you will be expected to ship first until you have built a good reputation. Checks, even after they clear, can be recalled months later - I avoid them from people I don't know. Paypal works good for BST transactions.

TomB · May 11, 2014 9:02AM

"also interested if accepting checks is ok and how do i know they won't just keep the coin and never send a check !!"

The only time I was ever ripped off in coins was from a long-time member of these boards who had previously purchased and paid for coins from me. I sent off a $500 coin and no money ever came. He ignored my emails and other communication and dropped off the boards under his old user name. He is still alive and posts updates on his life on Facebook, but alas cannot seem to pay me.

Unknown · May 11, 2014 9:05AM

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MGLICKER · May 11, 2014 9:08AM

<< i also want to be able to able to sell below retail as much as possible!! I do have a small stock to start with and a lot of coins on the way!! >>

Forget about retail, online selling is wholesale plus perhaps a few points. Difficult but not impossible to find a small margin in this business if you work at it.

Seanthecoincollector · May 11, 2014 10:00AM

fadetoblack how do i fix them and change them to what ??
also thanks for the info about checks i guess i should just be careful to some extent !

DIMEMAN · May 11, 2014 11:57AM

Do you have any Dimes I need?

BAJJERFAN · May 11, 2014 12:24PM

<< fadetoblack how do i fix them and change them to what ??
also thanks for the info about checks i guess i should just be careful to some extent ! >>

Log in to your PB account. Go to user settings, then albums. Make sure that the Link back to albums box is unchecked.

MsMorrisine · May 11, 2014 5:06PM

<< Do you have any Dimes I need?

>>

You mean have as in listed in inventory all over the internet?

I have the world's largest sea shell collection. I keep it scattered on beaches all over the world.

slipgate · May 11, 2014 10:21PM

There is nothing new about what you want to do. You just need to do it. I don't think there is much money it in. As others have said, you need to get coins at a good price in order to make any profit at it. And if you are going to do it "legally" with bookkeeping and reporting and all, Uncle Sam is going to want his cut. I don't see you making much at all, if anything, and most likely will lose money. Most of the market is owned by eBay. If you are going to go another route, the cards are already stacked against you. Your inventory will sit and sit and sit until you accept one of the lowball offers you are sure to get just to start moving some product. You are starting in a saturated market. You'd have better luck opening a Starbucks. Sorry to be harsh, I prefer reality over pink fluffy unicorns.

PFU

ricko · May 12, 2014 12:18AM

Good luck in your endeavor..... not an easy business to break into. Cheers, RickO

CoinRaritiesOnline · May 12, 2014 12:43AM

This topic has been discussed here in the chatroom multiple times, so if you can access the archives you will find some useful info there.

Broadstruck · May 12, 2014 2:02AM

Seems everyone has forgotten the last time the OP hit this forum like a wrecking ball...

RYK · May 12, 2014 2:08AM

<< Seems everyone has forgotten the last time the OP hit this forum like a wrecking ball...

>>

Anyone here remember GregtheGreat?

Broadstruck · May 12, 2014 2:33AM

<< Anyone here remember GregtheGreat?

>>

Nope but I bet there is a story

RYK · May 12, 2014 2:38AM

<< 

<< Anyone here remember GregtheGreat?

>>

Nope but I bet there is a story

>>

He was a newbie who wanted the forum to help him get started in coin dealering. He asked for members to give him some flips and let him borrow a stapler. Things fizzled out pretty quickly after that.

Broadstruck · May 12, 2014 2:45AM

<< He asked for members to give him some flips and let him borrow a stapler. >>

Boosibri · May 12, 2014 2:50AM

With the selection of coins offered and the business model discussed in the original thread, I'd say that this individual is probably only a danger to himself.

ctf_error_coins · May 12, 2014 2:51AM

I say go for it. I did and I am very happy that I made the move.

I am still a collector, but I did go through my collection and thinned it quite a bit and that it what I used for my starting inventory. Ninety percent of my buys now is for my inventory, but I still get to tuck away a few cool pieces here and there.

Broadstruck · May 12, 2014 3:02AM

Found the original GTG thread

numisma · May 12, 2014 3:17AM

I remember GregtheGreat. Good times, good times....

Regarding the business ideas and suggestions, I would suggest that you not consider it a business at this point, but rather a hobby. Get a few years of buying, selling and trading under your belt, and then you will know if this is right for you or not.

Business ideas and suggestions

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