I been in store full time since 2008, prior to that appt only as I had a regular job. Slow start at first, but since, have done way better than working any job I could have done. I am in an area that has a weak retail market for nice and better coins, but good venue for junk, and of course bullion type business. Security and safety is of most importance (been almost killed once before) so I dont keep a bunch of high dollars coins, gold bullion or heavy silver bullion out in shop. I often get folks who are passing thru or new to area that don't like the lack of inventory in shop to view, but again main reason is stated above. I sell all the better coins and such on Ebay, GC or bigger trade shows, etc. If I have a bunch of silver or shop inventory to sell from collections, etc, I only bring in a bit at a time and keep it in an offsite secure area until its time. In all honesty, profits are made on the buying, not selling. I can pay a fair price over the counter, but buy at a price that allows me some decent profit.
My only disadvantage , is that in this area, I don't get the real good stuff off the streets that often, that is usually only when a collector who knows me or its heirs decide to part with a sizeable collection. But I enjoy it, and would'nt trade it for the world currently.
@mr1931S said:
I wouldn't want any part of operating my own B&M coin store. The owner of my favorite store and his few employees are cynical, suspicious people. The owner's wife, who works in the store from time to time, tells me she would rather be at home than working at the store but she is required to help at the store. Coin/bullion business not a fun business is what I see.
Reflecting on my observations of coin store people going back 50 years or so ago, I see much cynicism and unhappiness. I would rather be broke and happy than rich and unhappy.
@ARCO said:
Never. it is a dying business as a retail endeavor. As an online dealer, potentially yes.
Online is very different than BM. Online sales are largely incremental costs while BM are largely fixed costs. Acquiring material is also very different.
That's not to say one is necessarily better than the other. Just that they are very different.
As an example, hard (impossible?) to buy/ sell bullion on a 2 or 3% margin online, but that is a staple of most BM operations.
I worked shows and in a store for perhaps 15 years. The experience was sobering and as I learned more about the way business is conducted it became discouraging. It tends to be very competitive to the point of "cut-throat" as dealers work to maximize profits and minimize expenditures . I didn't like some of what I saw, it ranged from questionable to dishonest.
NO
Not worth it UNLESS you already have a super and high end clientel already without a store and are known for scarce rarities.
It is easier to make 1K on a 10 K coin than 1k on 100 $100 coins.
H
Definitely a no from me. Aside from all the above mentions about security which is a huge concern I just wouldn't want to deal with the daily influx of low value stuff I'm not interested in that the customer thinks is worth more than it is.
I really like my local coin shop 👍🏻 but it entails a lot of work. Most of what they get is low cost junk silver. There is also the aspect of people thinking the SBA dollar they want to sell is worth 5 figures because he saw one for sell on eBay. And the really nice stuff you can’t keep for yourself as it will pay your rent and salary.
The profits are mostly from bullion. It’s not a glamorous life.
But I appreciate him and the store as I’m a good customer and he is a great dealer.
If I needed tax write-offs on a losing business... sure! Seriously though, with insurance and overhead costs I can't see making any sort of a "living" at it in my area. It sort of reminds me of the joke: "how do you make a small fortune as a coin dealer?... start off with a large one..."
Collecting: Dansco 7070; Middle Date Large Cents (VF-AU); Box of 20;
I might buy a shop as a hobby (within a hobby) if I could buy it for inventory value and it had low rent in a safe location in a state where I could easily get a permit (if required) for a pistol. I assume the profits mostly come from buying precious metals rather than selling Indian Head Cents to kids.
Have you seen how happy Seth is in his shop? Being into coins (or any hobby) and working/owning in a shop can be super fun. For some people, perhaps it's too much to work in your hobby, but for others, it's awesome.
Comments
Never. it is a dying business as a retail endeavor. As an online dealer, potentially yes.
I would. Oh-wait... already did...back in 1988.
RIP Mom- 1932-2012
I been in store full time since 2008, prior to that appt only as I had a regular job. Slow start at first, but since, have done way better than working any job I could have done. I am in an area that has a weak retail market for nice and better coins, but good venue for junk, and of course bullion type business. Security and safety is of most importance (been almost killed once before) so I dont keep a bunch of high dollars coins, gold bullion or heavy silver bullion out in shop. I often get folks who are passing thru or new to area that don't like the lack of inventory in shop to view, but again main reason is stated above. I sell all the better coins and such on Ebay, GC or bigger trade shows, etc. If I have a bunch of silver or shop inventory to sell from collections, etc, I only bring in a bit at a time and keep it in an offsite secure area until its time. In all honesty, profits are made on the buying, not selling. I can pay a fair price over the counter, but buy at a price that allows me some decent profit.
My only disadvantage , is that in this area, I don't get the real good stuff off the streets that often, that is usually only when a collector who knows me or its heirs decide to part with a sizeable collection. But I enjoy it, and would'nt trade it for the world currently.
That's a harsche assessment...
Online is very different than BM. Online sales are largely incremental costs while BM are largely fixed costs. Acquiring material is also very different.
That's not to say one is necessarily better than the other. Just that they are very different.
As an example, hard (impossible?) to buy/ sell bullion on a 2 or 3% margin online, but that is a staple of most BM operations.
I would say no.
I worked shows and in a store for perhaps 15 years. The experience was sobering and as I learned more about the way business is conducted it became discouraging. It tends to be very competitive to the point of "cut-throat" as dealers work to maximize profits and minimize expenditures . I didn't like some of what I saw, it ranged from questionable to dishonest.
NO
Not worth it UNLESS you already have a super and high end clientel already without a store and are known for scarce rarities.
It is easier to make 1K on a 10 K coin than 1k on 100 $100 coins.
H
Definitely a no from me. Aside from all the above mentions about security which is a huge concern I just wouldn't want to deal with the daily influx of low value stuff I'm not interested in that the customer thinks is worth more than it is.
I really like my local coin shop 👍🏻 but it entails a lot of work. Most of what they get is low cost junk silver. There is also the aspect of people thinking the SBA dollar they want to sell is worth 5 figures because he saw one for sell on eBay. And the really nice stuff you can’t keep for yourself as it will pay your rent and salary.
The profits are mostly from bullion. It’s not a glamorous life.
But I appreciate him and the store as I’m a good customer and he is a great dealer.
My current registry sets:
20th Century Type Set
Virtual DANSCO 7070
Slabbed IHC set - Missing the Anacs Slabbed coins
Unless I became the next Laura Sperber, I would say no. Too much dreck, which is fun at first, but gets boring after a while.
If I needed tax write-offs on a losing business... sure! Seriously though, with insurance and overhead costs I can't see making any sort of a "living" at it in my area. It sort of reminds me of the joke: "how do you make a small fortune as a coin dealer?... start off with a large one..."
Successful BST transactions with: SilverEagles92; Ahrensdad; Smitty; GregHansen; Lablade; Mercury10c; copperflopper; whatsup; KISHU1; scrapman1077, crispy, canadanz, smallchange, robkool, Mission16, ranshdow, ibzman350, Fallguy, Collectorcoins, SurfinxHI, jwitten, Walkerguy21D, dsessom.
I might buy a shop as a hobby (within a hobby) if I could buy it for inventory value and it had low rent in a safe location in a state where I could easily get a permit (if required) for a pistol. I assume the profits mostly come from buying precious metals rather than selling Indian Head Cents to kids.
No. This is a hobby for me, and making it a career would ruin the fun. Besides, I am already deeply intrenched in a few SICs... I don't need another.
I am a newer collector (started April 2020), and I primarily focus on U.S. Half Cents and Type Coins. Early copper is my favorite.
I wish we had a good local coin shop.
Competition is greater today for coin shop survival. Especially with many sports card shops now delving into selling/buying coins as well.
Too expensive.
"It's like God, Family, Country, except Sticker, Plastic, Coin."
Have you seen how happy Seth is in his shop? Being into coins (or any hobby) and working/owning in a shop can be super fun. For some people, perhaps it's too much to work in your hobby, but for others, it's awesome.
Owner/Founder GreatCollections
GreatCollections Coin Auctions - Certified Coin Auctions Every Week - Rare Coins & Coin Values
How many here would open up a shop with one or more partners?