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Thinking of opening a store (brick and mortar). Post a Coin or Coins to show What you think.

fcloudfcloud Posts: 12,133 ✭✭✭✭
Perhaps I am out of my mind with the way the economy is going right now. I have run through the numbers and think it works. Of course at this point I'm not looking at profit, as I have a full-time job which will remain my top priority. My store would be open on weekends and possibly a few evenings a week. The location is on a busy road, with lots of traffic, it is also just down the street from a police station. Running the numbers it looks like the amount of sales required to pay the bills is not too bad. I did the research and found a few things more expensive than I expected, and others about what I expected. The security system was about what I expected, but the set up was much more than I dreamed it would be for example. (Start up -- well let's just say it resembles sticker shock.)

My start up goals pay the bills and show some profit at the end of the endeavor (the full year).

So, am I nuts or what?

Post an amount of coins from a scale of one to ten.

Use a cent for a bad idea (I'm Nuts)
Two center (or 2 cents) a bit better
Three center (or some other combo) a bit better
4 cents (any combination)
Nickel not good nor bad (I'm about normal).
6, 7, 8, or 9 your pick on combination
10 a dime (Dude, go for it)

Let's have fun with it

image

President, Racine Numismatic Society 2013-2014; Variety Resource Dimes; See 6/8/12 CDN for my article on Winged Liberty Dimes; Ebay

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Comments

  • DUIGUYDUIGUY Posts: 7,252 ✭✭✭
    Can the Demagraphics in your area support a B&M?


    Ratio of coin collectors vs non-collectors.image
    “A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly."



    - Marcus Tullius Cicero, 106-43 BC
  • mrearlygoldmrearlygold Posts: 17,858 ✭✭✭
    I used to have a store many moons ago and about 20 years ago an old friend of mine offered me his place down the Jersey ( no, not in England ) Shore and he had been in business for decades. I polititely declined the offer.

    It's just a different world now.
  • BaleyBaley Posts: 22,658 ✭✭✭✭✭
    image

    Liberty: Parent of Science & Industry


  • Retail Stores.....

    Be prepared to be on call 24/7.....
    I have had a store for over 20 years, for the first 17 years it was only Jewelry & Repair, now it's mostly Coins and buying over the counter...and a base for ebay shipping etc.....

    If it were me I would go for it, a lot of opportunity to buy..and if you have deep pockets .....buy/sell bullion.

    JMO

    ps....when the jewelry business was still ok, we had the best of both worlds
  • fcloudfcloud Posts: 12,133 ✭✭✭✭


    << <i>Can the Demographics in your area support a B&M?


    Ratio of coin collectors vs non-collectors.image >>



    Location between Milwaukee and Chicago. Population in the area over 125,000. I have no idea of the ratio of collectors v. normal people.

    There is one large store and two small ones in a range of about 25 square miles. (The largest of the dealers thinks I should go for it based on our discussion.)

    President, Racine Numismatic Society 2013-2014; Variety Resource Dimes; See 6/8/12 CDN for my article on Winged Liberty Dimes; Ebay

  • Racine or Kenosha?
    Racine seems pretty depressed for a retail store, but if you are planning on a buying based operation it might be a great location.
  • ctf_error_coinsctf_error_coins Posts: 15,433 ✭✭✭✭✭
    Why not go full on internet dealer, with website, plus ebay selling and telling each new ebay customer about your website. Advertise your site (and skills) on all the free coin forums.

    As an internet dealer your would have access to the planet, and as a BM your costs are high and you have access to clients that live within only a few miles.

    Good Luck whatever you decide.
  • fcloudfcloud Posts: 12,133 ✭✭✭✭
    In between. Just down the street from Walmart on Hwy 11 (technically Mount Pleasant).

    President, Racine Numismatic Society 2013-2014; Variety Resource Dimes; See 6/8/12 CDN for my article on Winged Liberty Dimes; Ebay

  • fcloudfcloud Posts: 12,133 ✭✭✭✭


    << <i>Why not go full on internet dealer, with website, plus ebay selling and telling each new ebay customer about your website. Advertise your site (and skills) on all the free coin forums.

    As an internet dealer your would have access to the planet, and as a BM your costs are high and you have access to clients that live within only a few miles.

    Good Luck whatever you decide. >>



    That is part of it. I can still do all of the above and a store brings inventory. There is no reason why the store, ebay, and website won't work together.

    President, Racine Numismatic Society 2013-2014; Variety Resource Dimes; See 6/8/12 CDN for my article on Winged Liberty Dimes; Ebay

  • RWBRWB Posts: 8,082
    Perhaps I am out of my mind .....

    At least you're starting out with a realistic approach....
  • ctf_error_coinsctf_error_coins Posts: 15,433 ✭✭✭✭✭


    << <i>

    << <i>Why not go full on internet dealer, with website, plus ebay selling and telling each new ebay customer about your website. Advertise your site (and skills) on all the free coin forums.

    As an internet dealer your would have access to the planet, and as a BM your costs are high and you have access to clients that live within only a few miles.

    Good Luck whatever you decide. >>



    That is part of it. I can still do all of the above and a store brings inventory. There is no reason why the store, ebay, and website won't work together. >>



    True, but there is just so much more to think about with a BM plus the costs, but if you think you can make it work, all the best to you.
  • My store would be open on weekends and possibly a few evenings a week.


    Some things to think about.

    1) Be prepared to be shot and killed by robbers.
    2) Be prepared to deal with people like those here on the coin forums.
    3) Be prepared to buy lots of fake chinese coins along with stolen merchandise.
    4) Be prepared to fill out tons of government forms.

    Please note, if 1) applies, no need to worry about the rest.



    TRUTH
  • DorkGirlDorkGirl Posts: 9,994 ✭✭✭
    Last year 3 out of the 4 coin shops we had shut their doors.image

    image
    Becky
  • ColonelJessupColonelJessup Posts: 6,442 ✭✭✭✭✭
    No chance of making your money on sales. If you have an overdeveloped sense of fair play you will not be able to pay your rent on your buys. This latter is how virtually all new B&M's now survive and/or thrive
    "People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf." - Geo. Orwell
  • ColonelJessupColonelJessup Posts: 6,442 ✭✭✭✭✭
    Amend that.. no money in sales other than Ebay. Be prepared to blow off your post-1950 proof sets at 30% back. Have outlets for your junk. Large volumes of purchases, small margins, a few semi-lucky rips.
    "People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf." - Geo. Orwell


  • << <i>Retail Stores.....

    Be prepared to be on call 24/7.....
    I have had a store for over 20 years, for the first 17 years it was only Jewelry & Repair, now it's mostly Coins and buying over the counter...and a base for ebay shipping etc.....

    If it were me I would go for it, a lot of opportunity to buy..and if you have deep pockets .....buy/sell bullion.

    JMO

    ps....when the jewelry business was still ok, we had the best of both worlds >>



    I'm genuinely curious on your comment to buy and sell bullion is there really any money there? Unless your pockets are deep how deep are you talking to be a U.S. Mint authorized purchaser of Bullion you have to be able to buy at least 25,000 Silver Eagles or if Gold Eagles 1000 is the minimum, even then your still paying a premium over spot not sure what but a premium nonethless. So if your not an authorized buyer can you really make money with bullion.
    Greg Bose
    CoinSpace.com Founder
    www.coinspace.com
  • If you are dead set on doing this, maybe buying a store would be a better option. Real estate in that area is going really cheap. Low ball an offer and you'll be surprised, mortgage would be cheaper than rent and give you a ROI eventually, where rent does not.
  • DIMEMANDIMEMAN Posts: 22,403 ✭✭✭✭✭
    Tony, go for it. Then you can find all the dimes I need and sell them to me really cheap!image
  • lkeigwinlkeigwin Posts: 16,885 ✭✭✭✭✭
    Yes, you are out of your mind.

    But if you feel the urge and can deal with any financial loss, go for it! You gotta chase dreams, right?
    Lance.

    imageimage
  • tahoe98tahoe98 Posts: 11,388 ✭✭✭


    << <i>My store would be open on weekends and possibly a few evenings a week.


    Some things to think about.

    1) Be prepared to be shot and killed by robbers.
    2) Be prepared to deal with people like those here on the coin forums.
    3) Be prepared to buy lots of fake chinese coins along with stolen merchandise.
    4) Be prepared to fill out tons of government forms.

    Please note, if 1) applies, no need to worry about the rest.



    TRUTH >>



    ...image------------------------image
    "government is not reason, it is not eloquence-it is a force! like fire, it is a dangerous servant and a fearful master; never for a moment should it be left to irresponsible action." George Washington
  • ambro51ambro51 Posts: 13,580 ✭✭✭✭✭
    You will make out if it is mostly a pawn shop.
  • fcloudfcloud Posts: 12,133 ✭✭✭✭


    << <i>If you are dead set on doing this, maybe buying a store would be a better option. Real estate in that area is going really cheap. Low ball an offer and you'll be surprised, mortgage would be cheaper than rent and give you a ROI eventually, where rent does not. >>



    The advantage to rent would be I can get out after a year if it simply doesn't work. If it does go good after a year I can look at buying a place at that time. There is also an advantage at that location to me. 1) Just down the street from the police station, 2) a state patrol lives right next door, and 3) a freind rents in the same building. There are a few other advantages, too.

    President, Racine Numismatic Society 2013-2014; Variety Resource Dimes; See 6/8/12 CDN for my article on Winged Liberty Dimes; Ebay

  • fcloudfcloud Posts: 12,133 ✭✭✭✭


    << <i>You will make out if it is mostly a pawn shop. >>



    I won't do a pawn shop.

    President, Racine Numismatic Society 2013-2014; Variety Resource Dimes; See 6/8/12 CDN for my article on Winged Liberty Dimes; Ebay

  • fcloudfcloud Posts: 12,133 ✭✭✭✭


    << <i>Tony, go for it. Then you can find all the dimes I need and sell them to me really cheap!image >>



    image

    President, Racine Numismatic Society 2013-2014; Variety Resource Dimes; See 6/8/12 CDN for my article on Winged Liberty Dimes; Ebay

  • mkman123mkman123 Posts: 6,849 ✭✭✭✭
    go for it! From my pms with you, your a nice pleasant person and I'm sure you'd be like that with customers. Good customer service=success. image
    Successful Buying and Selling transactions with:

    Many members on this forum that now it cannot fit in my signature. Please ask for entire list.
  • bidaskbidask Posts: 13,834 ✭✭✭✭✭
    image

    Go for it.....if you do not try you will always wonder.....besides you'll probably make a small fortune on bullion.
    I manage money. I earn money. I save money .
    I give away money. I collect money.
    I don’t love money . I do love the Lord God.




  • CoinspongeCoinsponge Posts: 3,927 ✭✭✭
    I have no idea of the ratio of collectors v. normal people.



    image

    I think collectors are not normal too.
    Gold and silver are valuable but wisdom is priceless.


  • << <i>I used to have a store many moons ago and about 20 years ago an old friend of mine offered me his place down the Jersey ( no, not in England ) Shore and he had been in business for decades. I polititely declined the offer.

    It's just a different world now. >>



    Im at the Jersey Shore and there isnt a good B&M anywhere!
    Chaz

    Proud recipient of Y.S. Award on 07/26/08.
  • Have you worked in a store before? If not, why not offer your services to one of the existing stores, for a few hours a week, or set up at a few local shows and see how that goes, to see how much you like dealing with the public. The stupid questions, the high expectations for their junky coins, the inevitable fakes, shoplifting, as well as more direct theives, all would wear most people down. Get fooled on one fake slab or one fake gold coin and there goes the profits from the month or the quarter.

    Aside from bullion related items, I wouldn't think that there would be enough traffic to pay the rent. Is that the plan to be mostly in the bullion business? The bullion market is volatile and a down year or two could cut current local retail traffic in half.
  • SmittysSmittys Posts: 9,876 ✭✭✭✭✭
    Wow go for it, I can't believe all the nah sayers ...
    Takes a while to build a base of good customers.
    Advertize big, and have a good supply of working capital.
    Be fair it pays over and over again. Referrals are worth they weight in gold.
  • SwampboySwampboy Posts: 12,875 ✭✭✭✭✭
    What'll you do with the all the coins you'll take in over the counter?

    Ebay?


    Hope it's a golden oppurtunity for you.

    imageimage
  • BochimanBochiman Posts: 25,284 ✭✭✭✭✭
    Good luck with it, Tony! image

    At times, I wish I had a storefront....both for the buying opportunities as well as for the chance to possibly better sell some of the common accumulation we have gotten over the years (that would likely do better in a brick and mortar than on ebay or anything).

    So, if I were to post a coin, for your scale, I would have to post a 1/2 cent dime mule image

    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

  • ambro51ambro51 Posts: 13,580 ✭✭✭✭✭
    I spent some time with a fellow collector, who has ventured into dealing...he specializes in errors *and knows and attributes them well* and he has rented space in a building which houses among other things a BOOMING Amish Farmers Market. One day, while my wife was shopping her heart out at the market, I walked down the corridor and seen this lone fellow sitting among his display cases. He had a few gold coins, nothing special...and a nice assortment of copper, mint sets proof sets..a fair amount of certified coins....some books and some supplies. His case with errors in it, very nice and well noted coins.

    He was sitting there.


    He told me he hadnt sold a coin in six days, and if things didnt change shortly, he was DONEZO.


    Its a tough world....the general populace is NOT your coin buying customers. To try and draw from the general populace...all I can say, is I hope your rent is really cheap or you are working toward a loss. Of course, if you can devote your "sitting on your butt' time to listing and maintaining your inventory on ebay, you may stand a chance.


    Good luck but I think its a bad idea.
  • savoyspecialsavoyspecial Posts: 7,267 ✭✭✭✭
    best of luck to you!


    dont forget to invest in Secure Plus and Sniffer



    not the PCGS kind.....SecurePlus is a gloc and Sniffer is a pet doberman!

    www.brunkauctions.com

  • ChrisRxChrisRx Posts: 5,619 ✭✭✭✭
    Via cro:

    image
    image
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    I have about half a dozen coin dealers within a 25 mile radius of me. And as far as I can see only 1 shop is doing well, and that's because of gold and silver bullion. The other shops are scrimping to get by, and not buying a whole lot of bullion. That 1 store was bought by the current owner about 10yrs ago and it was fully seeded by the work of the previous owners who started it in the early 1970's. Hence a lot of old coins keep on coming back. You're starting from scratch with no previous base. Don't expect to make any money on regular non-PM coins until the economy turns around. Bullion is the only way you'll be able to survive and you'll need to pull market share from your local pawns, Cash4Gold, jewelers, etc. If you can grab some bullion market share then you might be able to make a go of it. I would not be trying to stock much inventory except for highly saleable stuff or mostly consignments. How many coin shops closed from 1990-1996? If you're not willing to become an expert on bullion and spend most of your time involved in it, then don't open up.

    I see many formerly successful vest pocket dealers stop setting up at local or regional shows. They did very well from 1996-2008 but things have totally changed. What makes your product different that you can succeed where these 10-20 yr veterans failed?

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • In general, a coin shop makes money from the buy, not the sales through the front door. The store must have an appropriate population base and located in an older community, preferably in the 100,000 population range. Larger cities often have several dealers, pawn shops and jewelry stores to compete against. Smaller towns do not generate the purchases necessary. You can make good money on bullion, but you need to be able to lock in the prices to the wholesaler and sell that night, so a good working relationship with a level one wholesaler is a must, which, in many cases, is not an easy thing to do. Then, there are the costs, crime insurance, liability insurance, governmental fees and taxes, business overhead, salaries, etc. Then, you also have to compete with the 'hotel buyers' who will take a portion of your client base. AND, don't count on ever getting sick or injured, because a few days closed and clientel will give you up.



    TRUTH
  • chumleychumley Posts: 2,305 ✭✭✭✭
    dont have a dime to show but include an internet site and I'll support you from afarimage
  • fcloudfcloud Posts: 12,133 ✭✭✭✭


    << <i>dont have a dime to show but include an internet site and I'll support you from afarimage >>



    Already have a site; although, I need to add more stock to it.

    President, Racine Numismatic Society 2013-2014; Variety Resource Dimes; See 6/8/12 CDN for my article on Winged Liberty Dimes; Ebay

  • I wish you luck but I doubt you would make any profit. Also dont depend on the economy ever coming back. This is not your fathers recession. The US is bankrupt and can never repay its debt. A currency devaluation is looming. The govt is trying to fix a problem that was created by too much debt by taking on more debt. Wont work. I know doom and gloom but its true.
  • GrumpyEdGrumpyEd Posts: 4,749 ✭✭✭
    I agree strongly with what others are saying.
    Try it on the internet and try to find some ways of buying inventory (wholesale or from buy adds).

    Avoid the risks and headaches of a shop.

    I also think the economy isn't recovering for real so assuming the worst is the safest.

    I feel bad for sounding against the idea but sincerely think it's too risky.
    Ed
  • FairlanemanFairlaneman Posts: 10,401 ✭✭✭✭✭
    Ah Ha.....a outlet for my junk....image

    Actually, Good Luck with whatever decision you make.

    image

    Ken
  • halfhunterhalfhunter Posts: 2,770 ✭✭✭
    I have often thought that a kiosk in a mall might do well here in Albany (GA), Selling proof sets, Au/Ag Eagles & other bullion, silver dollars etc. + a few older type style coins.
    About 100,000 area pop and there are no retail coin shops within about 100 miles.
    The little 40 dealer yearly coin show here seems to have alot of traffic and the circuit dealers love this show.

    HH
    Need the following OBW rolls to complete my 46-64 Roosevelt roll set:
    1947-P & D; 1948-D; 1949-P & S; 1950-D & S; and 1952-S.
    Any help locating any of these OBW rolls would be gratefully appreciated!
  • fcloudfcloud Posts: 12,133 ✭✭✭✭
    Thanks for all the comments. Feel free to chime in if you haven't.

    President, Racine Numismatic Society 2013-2014; Variety Resource Dimes; See 6/8/12 CDN for my article on Winged Liberty Dimes; Ebay

  • RichieURichRichieURich Posts: 8,359 ✭✭✭✭✭
    I am a full-time dealer who sets up at shows and operates a website, but I do not have a shop. I prefer not having a shop. I have talked with several people who do have shops, and they said their overhead (salaries, rent, security, utilities, property taxes, etc.) runs about $10,000 a month. You have to sell a lot of coins to cover that amount of overhead. Do you think you can do that?

    Time is an issue too. You have a full-time job, and you want to operate a store part-time, manage a website, and sell on eBay. When will you have time for other things in life?

    You might want to work in a shop first before you consider opening your own shop. Also, you might consider buying all or part of an existing shop.

    An authorized PCGS dealer, and a contributor to the Red Book.

  • icsoccericsoccer Posts: 1,339 ✭✭✭
    I am wondering how this venture turned out?
    TIA!
    Successful BST transactions to date: Coindeuce, Cohodk, dantheman984, STONE, LeeG, jy8s, jkal, SeaEagleCoins, Hyperion, silverman68,Meltdown,RichieURich,savoyspecial,Barndog
  • stealerstealer Posts: 3,968 ✭✭✭✭
    Why go B&M when you can go online! JMO image
  • jesbrokenjesbroken Posts: 9,152 ✭✭✭✭✭
    Tony,
    I closed my Mom & Pop's store in 1889 due to a depressed market from the coal market fiascos of the late 70's and early 80's. I was open 10 years. I owned my own building.
    I sold proof sets, key coins(low grade) and bought and sold rolls. As previously stated, my largest income was derived from guns, hardware and general merchandise, in 1980 I made the most
    I had ever made on coins(all silver rolls purchased locally). Never made much on individual coin sales. Seeing the world today and knowing what I do from experience, I would not venture again into
    this arena. The insurance alone rose from a few hundred a year to
    low thousands per year(just in a 10 year period). According to which state you operate in, the laws can be killer(such as Florida's--I can't imagine having a coin shop there). Whatever you
    do, I most certainly wish you the best, but would not attempt to make a recommendation either way.
    Best,
    Jim

    When a man who is honestly mistaken hears the truth, he will either quit being mistaken or cease to be honest....Abraham Lincoln

    Patriotism is supporting your country all the time, and your government when it deserves it.....Mark Twain
  • lkeigwinlkeigwin Posts: 16,885 ✭✭✭✭✭


    << <i>Use a cent for a bad idea (I'm Nuts)
    Two center (or 2 cents) a bit better
    Three center (or some other combo) a bit better
    4 cents (any combination)
    Nickel not good nor bad (I'm about normal).
    6, 7, 8, or 9 your pick on combination
    10 a dime (Dude, go for it) >>


    imageimage

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