I have a plan!!! (differs from 'Gregthegreat')
Geoman
Posts: 2,491 ✭✭✭
I have been thinking about how I can successfully buy/sell some coins as a side job/hobby. I am not planning on getting rich, or even making a living from buying selling coins. But my goal is to just break even after 1 year, and make a "small" profit in years that follow. I also realize I will lose money the first year. But I enjoy collecting, and I enjoy buying/selling/trading coins as well; and am really doing it for the fun of it, and as a hobby.
Background - I was unemployed for several years, and tried to start an online (www.lakesuperiorcoins.com) coin store since I had the time. I thought myself how to create web pages, bought up some inventory, and had a few friends cosign coins for me to sell. Of course, I signed up for Paypal too. But I soon learned that most of my coins were "junk" or just to common and/or low-grade for people to be interested in, or make a profit on. That's okay, as it is fun learning. I did plan on expanding the site including spending some money on advertising, which I feel is important. However, I finally was offered a good job this past January, and haven't done much with selling coins.
Now that things have settled into a somewhat predictable pattern and hours, I have been itching to try start selling/buying coins again as a side job. One of the things I have learned on these boards is quality over quantity. Also, I plan on concentrating on just two series, and specialize on those, and not worry about having such a wide variety of inventory.
It will take time, and frustration and money, but I think if I apply what I have learned over the past 3 years on these forums, and by trial and error on my website, I may just break even, maybe make a couple of dollars to buy more coins, but have fun doing it.
I plan on concentrating on Morgan Dollars (yea right you are thinking, not many doing that
) and Walkers. Probably just buy a few coins at first, and try and add 1-2 coins a week. Nothing big here. I also think by just concentrating on just 1-2 series' you should be able to follow the trends, prices, etc. better so you can make a dollar or two. For example, you have been studying Morgans, their prices, and trends for a year now; and if I see a coin I can buy for $100, and believe it can sell for $125, I'll do it. Not a huge profit, but it's a start. My plan in 5-10 years is to have approximately 100 coins in inventory.
What are your opinions? Any sugesstions?
Thanks!
Background - I was unemployed for several years, and tried to start an online (www.lakesuperiorcoins.com) coin store since I had the time. I thought myself how to create web pages, bought up some inventory, and had a few friends cosign coins for me to sell. Of course, I signed up for Paypal too. But I soon learned that most of my coins were "junk" or just to common and/or low-grade for people to be interested in, or make a profit on. That's okay, as it is fun learning. I did plan on expanding the site including spending some money on advertising, which I feel is important. However, I finally was offered a good job this past January, and haven't done much with selling coins.
Now that things have settled into a somewhat predictable pattern and hours, I have been itching to try start selling/buying coins again as a side job. One of the things I have learned on these boards is quality over quantity. Also, I plan on concentrating on just two series, and specialize on those, and not worry about having such a wide variety of inventory.
It will take time, and frustration and money, but I think if I apply what I have learned over the past 3 years on these forums, and by trial and error on my website, I may just break even, maybe make a couple of dollars to buy more coins, but have fun doing it.
I plan on concentrating on Morgan Dollars (yea right you are thinking, not many doing that
) and Walkers. Probably just buy a few coins at first, and try and add 1-2 coins a week. Nothing big here. I also think by just concentrating on just 1-2 series' you should be able to follow the trends, prices, etc. better so you can make a dollar or two. For example, you have been studying Morgans, their prices, and trends for a year now; and if I see a coin I can buy for $100, and believe it can sell for $125, I'll do it. Not a huge profit, but it's a start. My plan in 5-10 years is to have approximately 100 coins in inventory.What are your opinions? Any sugesstions?
Thanks!
0
Comments
1) Buy a crappy coin.
2) Take a GREAT picture of it.
3) Put it up for sale and tell everyone it's a nice coin.
4) Hide all of your fees somewhere on your site.....
4) Send the winner their coin and have them return it.
5) Pocket $ 52.00 and be on your way.....
You will STILL have the coin AND make money...... AND they can't do anything.... no negitive feedback.... nothing....
JK
Come up with a convincing answer to that question and you will be better positioned for success. Some good answers might be:
1. I have a pre-existing client base
2. I can grade like Halperin
3. I know where to buy cheap
4. I specialize in stuff no one else does (doesn't really apply with walkers and Morgans)
Good luck to you.
-JamminJ
I like your idea - specialize in something popular and learn as much as you can about it. Don't try and be all things to all people - that can come later, and it's not even a requirement for success. Even at the big shows you can see that tons of dealers are still niche players.
The first picture I see is a poor quality (i.e. out of focus) image of some silver eagles. Not a bad price, not a great price, but you'd get some takers. Improve the image quality.
Browsing through a few inventory pages it does look like a bunch of "junk". If you want some stuff that you'll move, stay out of the circulated junk and stick with uncirculated coinage, unless you get a key date or a semi key date that is cost prohibitive. Even if you do make some money, it will take forever to even break even buy selling common, circulated $6 or $12 coins when most people can afford the $50 Uncirculated version.
Good luck!
p.s. need some flips?
Thanks, but I am set on flips. However, if people want to dontate a few dozen Morgan Dollars (graded by PCGS) in MS64 or above, please do!
Good question JamminJ.
Maybe start with circulated key & semi key dates, catering to die hard collectors
Here is Morgan Dollar I recently purchased (thread). I paid $117 for it, plus $5 insured shipping. A few thought it was a good price. So I thought maybe I could sell it for ~$130 plus shipping and make $15 on it. I am not trying to make a killing, and will always make sure the customer is happy. Heck, when someone wanted to return a coin they did not like that I sold off my website this summer, I paid him full price (no restocking fees) and paid shipping both ways, so he didn't lose a cent. Sure, I lost a little money on shipping, but I did make a repeat customer.
<< <i>What are your opinions? Any sugesstions? >>
Hi,
well, I didn't look at your coins I looked at your site. It is very bland - you can say so very much with deliberate and judicious use of color, fonts, images etc. Also, I did not see anything about requesting an image. The fact that you don't have images does not help - at least image the better stuff. The certified coins are not staggering, so what will distinguish your raw coins from any others on eBay (likely imaged) or those at other venues? You don't have to use a million dollar camera and set-up. I have achieved very good results with a good scanner. You need some kind of an edge IMHO.
We both started collecting in the same year by the way. I was 10. It is cool that you are doing this. I am trying to do similar things in other areas. I had a few sites but found I could not compete with eBay in terms of raw numbers. Now I am simply into developing and cultivating a customer base personally by finding the material they want and selling it at good prices. Everyone's happy. And, they do come back
Best wishes,
Billy
You are correct about the images, especially the blurry image on my homepage of the ASE's. That was taken with my old camera, a 1.1 MegaPixel. I just recently bought a new digital camera, and have been testing it out, and learning how to take better pictures. See this tread (tread) for a picture I just took of a Bust Half Dollar.
P.S. To all, most of the coins on my website are not my, as these were cosigned to me. Most are no longer available. I need to redo my website. Just so there is no confusion.
Another comment that was made, was about eBay. I plan on having a least 3 items up for sale each week. I have heard from other part-time dealers is that by having a few items up, it attracts people to your "About Me" page, where you get more traffic going to your own website. So I plan to learn and put in use all these little things that I ahve picked up on over the past several years here.
Fair prices, honest grading, awesome return policy, courteous, and quality coins. This should win out over the long haul.
- High quality pictures (it's really not that difficult)
- Liberal return policy
- Accept credit card transactions
- Honest grading
- No reserves
- Minimum bids if you your worried about taking a loss
- Never cancel an auction
It's a mystery to me why more sellers don't abide by these simple rules...which is why I rarely bid on eBay.
If you're going to sell Morgans, then you'll have to separate yourself from the masses. I would specialize in VAM's. Ideally they should all be certified and attributed by a 3rd party (ANACS). If that's too costly then attribute them yourself, and offer a return if the buyer disagrees with your attribution.
Of course you'll need to buy low. You'll better your chances if you can learn how to cherry pick VAM's from other dealers.
Seems like you have the right attitude. Good luck and don't ask for flips.
Thats all the auction house's do !
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
I must agree with the following points rasied by others - I had either planned on or have been (happily) forced to pay heed to all these things. Remeber that I am not selling coins - but the data remains just as true.
Jammin J's advice:
1. have a pre-existing client base
2. can grade like Halperin
3. know where to buy cheap
4. specialize in stuff no one else does (doesn't really apply with walkers and Morgans)
SDCollector's suggestions:
- High quality pictures (it's really not that difficult)
- Liberal return policy
- Accept credit card transactions
- Honest grading
- No reserves
- Minimum bids if you your worried about taking a loss
- Never cancel an auction
And obviously, everyone should get great merchandise for less money and always be made happy if there is a problem. Make them want to come back - not to make money but to make them happy. The, make them happy again.
Best and much good luck,
Billy :
goodluck; :
I mostly buy at coin shows. I started one series at a time. While I understand some of the reasons listed above for Unc coins, I do not buy and sell Unc coins, only circulated. I researched by books and online both the grading and pricing of my selected series and became somewhat "expert". I only sell on eBay so I checked my series to see what kinds of items in the series sell and for what prices while taking into account how many auctions and bidders at what price levels. After acquiring that knowledge when I went to a show I "knew" what items were worth buying.
My usual results are for every $100. in coins I purchase (I typically buy between $300-$500/show), $25. worth are for my personal collection and the other $75. worth are for resale. I have almost always been able to resell the $75. for more than $100. after expenses and start all over again. I am now on my fourth series.
But regardless of which "plan" you use, make sure it works for you. Best of luck and Hey!!!, I'm running out of 2x2's.
Joe.
<< <i>My experience. First, this is my hobby. I do this for fun and relaxation. The money I have "made" works out to be about $1./hr.(actually it is now closer to $2./hr as I get better at this) If this is what you mean when you write "I am not planning on getting rich, or even making a living from buying selling coins" then here goes:
I mostly buy at coin shows. I started one series at a time. While I understand some of the reasons listed above for Unc coins, I do not buy and sell Unc coins, only circulated. I researched by books and online both the grading and pricing of my selected series and became somewhat "expert". I only sell on eBay so I checked my series to see what kinds of items in the series sell and for what prices while taking into account how many auctions and bidders at what price levels. After acquiring that knowledge when I went to a show I "knew" what items were worth buying.
My usual results are for every $100. in coins I purchase (I typically buy between $300-$500/show), $25. worth are for my personal collection and the other $75. worth are for resale. I have almost always been able to resell the $75. for more than $100. after expenses and start all over again. I am now on my fourth series.
But regardless of which "plan" you use, make sure it works for you. Best of luck and Hey!!!, I'm running out of 2x2's.
Joe.
I'm going to print out several copies of this post and hide them in my Whitman folders, reference books, &tc. This is exactly what I strive to do, except I don't get to as many shows, don't have as much to spend, only occasionally make my money back, and always end up with more stuff for my collection than for resale. Other than that, I'm with you 100%.
Which dovetails nicely with my own bit of advice - be careful if you decide to become a specialized dealer in a series which you also like to collect. While you may feel most comfrotable dealing with a familiar series, the temptation will be great to keep the best buys and coins for yourself.
Good luck!
Sean Reynolds
"Keep in mind that most of what passes as numismatic information is no more than tested opinion at best, and marketing blather at worst. However, I try to choose my words carefully, since I know that you guys are always watching." - Joe O'Connor
My usual results are for every $100. in coins I purchase (I typically buy between $300-$500/show), $25. worth are for my personal collection and the other $75. worth are for resale. I have almost always been able to resell the $75. for more than $100. after expenses and start all over again. I am now on my fourth series.
I checked my series to see what kinds of items in the series sell and for what prices while taking into account how many auctions and bidders at what price levels. After acquiring that knowledge when I went to a show I "knew" what items were worth buying.
EXACTLY!!
This is very close to along the lines I am thinking. I also have been tempted after I buy a coin, to add it to my personal collection, and not put it up for resale. However, that is what is fun about this hobby.
Thanks for all the comments everyone.