Little coin shop blues
Myqqy
Posts: 9,777 ✭
This past weekend I visited a local hole-in-the-wall coin shop just to shoot the breeze for a bit and look around. This particular shop rarely has anything I strongly desire, but I feel for the owner and usually purchase something small (like an SAE) to make us both feel a little better. Anyway, this past saturday the owner starts in on a huge rant about how bad business is nowadays, and how he is thinking of closing up the shop for good. His main complaints were 1) that the internet has dried up local business and people are abandoning local stores for eBay type markets. Also, he believes that the internet has dried up the amount of new material coming into local stores, and that people often have an inflated sense of what their material is really worth. And 2) that PCGS/NGC 2 party system has created a whole catalog of "other" slabbed coins that people won't look at because it's not in one of those slabs. And blah blah blah, he also had little affection for the whole submit/crack out phenomena that plays a big part of modern dealers lives now. So I began wondering if other people are noticing small shops in their areas starting to go under because of the changes in the coin market. Do you think that the local coin shop is an endangered species, or was I just chatting with a relic who is being petty and inflexable? 
My style is impetuous, my defense is impregnable !
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Comments
Glen
and yes, certified coins do bring more money, third tier and raw coins have their place, but it's not at the top of the "high margin" list either.
Ask him how is online sales are going.... If he has no internet presence, he's missing out, his lag will only get worse, and he will probably be forced to close up shop.
Do you think that the local coin shop is an endangered species, or was I just chatting with a relic who is being petty and inflexable?
yes to both.
Liberty: Parent of Science & Industry
The store front is to attract material to be bought, selling there is non-existant
<< <i>a local shop near me has pretty much stopped putting teh material they buy in the display case - it goes straight to ebay.
The store front is to attract material to be bought, selling there is non-existant >>
Sounds like the local shop I have seen in Bellevue, Wa.....small storefront...some items in there, but they sell on ebay...a lot of things that they don't display at the store.
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
I live in Orlando and I know there is supposed to be a shop SOMEWHERE but I haven’t found it yet. If anyone knows of any in that area, let me know!!
Anyway, the way i see it, if dealers to not establish a web presence, they are simply shutting down their business very slowly as the market has moved on. I have re-entered this hobby this year after exiting as a teen around 1992 before there was a web. Now that I have adult money and a lot more education about coins, there is no way I can find the choice key dates I am looking for unless I go online. As cliché as it sounds, the Internet has changed things...forever.
<< <i>Do you think that the local coin shop is an endangered species, or was I just chatting with a relic who is being petty and inflexable? >>
I hope not, since I plan on opening one in my retirement years. I guess I'm kinda lucky that I have 4 pretty close to me. And sometimes they have pretty decent finds.
Michael
Our eBay auctions - TRUE auctions: start at $0.01, no reserve, 30 day unconditional return privilege & free shipping!
However, just 6 months ago, I found out that he has been buying and selling on eBay for years. So he has learned to change with the times. If you have some good business sense, you will do what keeps you in business. He also does some gold/silver bullion sales, that equals more than his over the counter sale of coins in his shop.
Think about it.
Craig
Translation: Coin collectors have some nerve, imagine the arrogance of wanting the same prices dealers get for the same material! How dare they!
Translation: It's damn near impossible to pay AU money on a coin if it's in a PCGS MS63 holder.
<< <i>I hope not, since I plan on opening one in my retirement years >>
I think "brick and mortar" has a place, and can do well if....
1. Proprietor is cordial, professional, and above all knowledgable
2. Proprietor is fair and honest on both sides of transaction
3. Proprietor keeps up with trends and works hard to keep fresh quality material.
I can say from experience...San Diego...second largest city in California...and we're STARVED for quality shops where folks can feel comfortable going in, knowing they have a shot at quality and not getting screwed.
<< <i>Also, he believes that the internet has dried up the amount of new material coming into local stores, >>
I have to believe that's very true. I'll say it outright, I am relieved to have the option of selling coins myself via eBay. I have rarely ever been offered a decent price for even a truly quality coin from a store front dealer.
It use to be you had no other recourse--and they knew it. Now there are plenty of options.
Options are good.
Edited to add: Also internet forums like this one provide collectors of like interest an opportunity to meet and trade material between themselves. This also is going to diminish what a store front dealer sees coming through his door.
Clankeye
<< <i>So I began wondering if other people are noticing small shops in their areas starting to go under because of the changes in the coin market. >>
There are two "pure" coin shops relatively close to me. The first is doing extremely well, the second barely hanging on. The difference? The first isn't bitching about the changing marketplace, but rather is participating in it.
Russ, NCNE
Bingo Clankeye.
My complaints about dealers with shops are three
1) Their buyback prices are far lower than their selling prices.
2) Lack of adequate selection: I'm shopping for old coins and they have mostly new ones.
2) For coins I may be interested in: Fixed prices that are higher than I can get the coins for online.
For me the internet and coin shows are far and away my sources of coins, with the occasional shop visit a distant third.
Liberty: Parent of Science & Industry
<< <i>For me the internet and coin shows are far and away my sources of coins >>
And I think for people with any experience in numismatics that gets to be more and more the case.
Which leaves some of the store front dealers with one last, large pool of people coming to their shops--the uninitiated who may be walking in with a group of "old coins" that they really don't know anything about. And don't know anything about the coin market.
Have you ever tried to explain coins, and the coin market as it has developed to someone that is starting from ground zero? They look at you like you're crazy.
Clankeye
I would rather purchase locally since sight-seen will never be replaced by sight-unseen or digipic-only-seen. I would rather spend a few dollars more for a local purchase than take the chance on an auction or online store purchase, even if there is a return policy.
The problem I am encountering is that the selection is so limited locally. This is the greatest problem with local stores, but also is an issue at local coin shows. If you are looking for PCGS/NGC slabbed coins only, there is not much selection. As time goes by and I learn to grade better, I will start buying raw/other slabbed coins. Even counting those, the turnover rate for coins seems to be pretty slow locally.
So there is a dilemma: Sight-seen but low inventory turnover, or sight-unseen and 100+ times the inventory which rapidly changes.
I agree that local dealers need to integrate the internet into their business model. Even if their profit margin is lower via eBay, etc, this would let them turn over inventory, free up more cash for new purchases and maybe advertising, and increase their customer base.