List all the costs of being a "brick and mortar" dealer

Geoman · March 21, 2006 4:47AM

Just curious as to what it takes to run a sucessful coin shop. I am not wondering about how to run it sucessfully; rather the direcet and indirect costs incurred. Also, I am not talking about ultra rare dealers, such as Legend, Heritage, etc. Rather, am interested to see the costs involved in your average coin dealer that has a "brick and mortar" coin shop, does a few local and regional shows, and sells a little on eBay. I know what some of the costs are, and will list a few. Please add to this list, especially if you are a dealer and we are forgetting something. Also, if you don't mind, give us an idea of what it costs you on a monthly or yearly basis.

Rent or mortgage payment...
Utilities...
Insurance...
Advertising in the phone book...

dlimb2 · March 21, 2006 4:59AM

I would think at least 50K in cash and an inventory of 15 to 20 K to start.

SmallSizedGuy · March 21, 2006 5:00AM

business license, fees, and taxes

MadMarty · March 21, 2006 5:04AM

Cases, misc store stock...

longtimecollector · March 21, 2006 5:05AM

Fixtures, advertising, utilities, computers, rent/mortgage, supplies, safe, alarm system/cameras, signage, phone, internet access, the list is ENDLESS !!!!!!

Gator5220 · March 21, 2006 5:06AM

Internet connection

cladking · March 21, 2006 5:09AM

Mistakes.

Specialists don't get offered bad coins so often and are a little less susceptable to bad checks or buying stolen property.

Cnitas · March 21, 2006 5:14AM

Accounting
Rent
Utilities - water/electric/gas/oil
Payroll
Taxes
ongoing Inventory purchases
office supplies
misc supplies
computer related fees (software, antivirus, etc)
Credit Card merchant fees (if you take credit)
repairs/maintenance expenses
cleaning expenses - for cleaning the store not the coins

travel expenses - if you go to the local shows
dues - so you can say you are a member of ANA, PCGS, etc

While not a cash outlay, there is depreciation on the equipment/fixtures in the store.

I am sure I missed something, but this would get you by most expenses.

JJM · March 21, 2006 5:14AM

sign fees

security cams.....safes

eyoung429 · March 21, 2006 5:18AM

Stapler and free flips!!!!!!!!!

perfectstrike · March 21, 2006 9:10AM

Liability, inventory and health insurance. Don't forget life insurance if you aren't already set.

David

solid · March 21, 2006 9:43AM

LOSS/THEFT, which could be rolled in with the MISTAKES that cladking mentioned. In any
business, these are expensive as they are anti-productive expenses.

Let's say you have an average of 25% markup on coins you sell. If a $100 coin is stolen
or lost, or you take a bad check (or a counterfeit bill!), or simply lose $100 on a coin because
of a mistake on your part, you'll have to sell $400 more in coins just to get back to even,
before earning any gross profit with which to pay for "normal" expenses.

Ken

tmot99 · March 21, 2006 9:47AM

besides "expenses", you are doing this to make money. Salary is a major expense.

ScarsdaleCoin · March 21, 2006 11:29AM

coffee....lots and lots of really bad coffee.....subscriptions

BigE · March 21, 2006 11:32AM

Gilt---------BigE

Burks · March 21, 2006 11:33AM

Cheap labour

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"Personal Protection", bars/security gate, therapy, camera/scanner (for Internet sales). That's all I can think of that hasn't been mentioned. Maybe submission fee's if you plan on doing any of that.