"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?"
Exactly.
Great spirits have always encountered violent opposition from mediocre minds.-Albert Einstein
. if you truly have the drive to succeed, meaning you can make sacrifices when necessary and/or have a lot of start-up capital, go for it.
a lot of determination, relationships, experience, capital, sacrifice(very important) and creativity is what is it going to take
also keep your personal life and expenses in check, a lot of businesses fail due to these but get blamed on bad business
i personally am in love with the freedom being in business for myself provides. she can be a bit challenging at time but i wouldn't trade her for the world
And as for the shops that do not do well, consider that there are many businesses in many industries that do not do well. Usually, it's more a function of bad management than of being in the wrong business. The point is that whatever business you choose, if you run it well, it will probably do well. Conversely, if you're not going to take the business seriously, it will probably not be very successful.
Andy Lustig
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
As a retired dealer I can tell you that overhead expenses can kill you because of the low mark-ups in the coin business. When you have the expense of a retail store added to the mix, it is a croaker. Some collectors rag on “brick and mortar” coin shops as “dens of thieves,” but truth is those dealers have to charge higher price and pay lower prices to survive. In addition many of the B&M guys I’ve known, who were successful, had a big presence on the Internet as well with websites and eBay activity.
The concept of being in business for only year and then getting out with a profit is unrealistic. Often it’s going to take you a year to build a customer base, and if you do it right you should be seeing “light at the end of tunnel” (profits) for the second year. Also you might well have to be involved with things in addition to coins. There are very good reasons why so many coin shops were “stamp and coin shops” when the stamp business was viable.
I’d say you would be wise to become an Internet dealer and perhaps take a table at some local shows before you get into the shop end of the business. Running a ground level store has always been a challenge, and in the years since the 1960s and ‘70s where shops seemed to be at their peak it has only gotten harder for those who have tried it.
Edited to add:
I've known a number of dealers who once had ground level stores who moved to second floord offices instead. They will meet with clients at the office, but have limited interactions with the general public.
Retired dealer and avid collector of U.S. type coins, 19th century presidential campaign medalets and selected medals. In recent years I have been working on a set of British coins - at least one coin from each king or queen who issued pieces that are collectible. I am also collecting at least one coin for each Roman emperor from Julius Caesar to ... ?
Just don't put any faith in the Police down the street. The Rinckel Mansion (my great grandparents home) in Carson City was burglarized and about $100,000 of furnishings, paintings, crystal, etc. (1971 dollars) was stolen and it is RIGHT ACROSS THE STREET from the Police Dept. (30 feet away). It was open during the day for tours and closed at night. The sheriff's dept patrolled hourly every night, and the thieves figured that out as well.
Thieves, if they want it bad enough will find a way.
Back door, roof, walls. Watch 'em all. Pay particular attention to the installers of the alarms system.
Good luck, bob
Ah, crapolla, just noticed the date too!
Registry: CC lowballs (boblindstrom), bobinvegas1989@yahoo.com
Commercial real estate in this area is dead, dead, dead. Lots of strip malls around here with only one or two tenants left. I know of one situation where a landlord accepted 10 cents on the dollar rather than kick a tenant out. The point being, overheard will never be lower than it is now. I think a bare bones B&M could be run for $25K/year or less. If you can move $20K in bullion per week and skim off 2.5% you are even. Forget the rare coin part of it, the only way to play that game is on the national show circuit. This is mainly a gold/silver operation.
<< <i>Forget the rare coin part of it, the only way to play that game is on the national show circuit. This is mainly a gold/silver operation. >>
In the current market, that is a fair statement. Selling rare coins from a storefront is not going to carry your business. If the metals markets go into the doldrums again they did after the highs of the late 1970s and early ‘80s that market will not be able to save you.
<< <i>Commercial real estate in this area is dead, dead, dead. Lots of strip malls around here with only one or two tenants left. I know of one situation where a landlord accepted 10 cents on the dollar rather than kick a tenant out. The point being, overheard will never be lower than it is now. I think a bare bones B&M could be run for $25K/year or less. >>
The rent might be low, but I'd be reluctant to be dealing in precious metals and other valuables out of an empty strip mall. There was a recent case here in Florida of a dealer who was accosted by a man with knife outside of his store. The man had done business with the dealer in the past so he was no stranger. The man slashed the dealer’s ear; the dealer shot him dead. There were no charges filed against the dealer because of self defense, but still it’s not kind of thing you want as part of your occupation.
Retired dealer and avid collector of U.S. type coins, 19th century presidential campaign medalets and selected medals. In recent years I have been working on a set of British coins - at least one coin from each king or queen who issued pieces that are collectible. I am also collecting at least one coin for each Roman emperor from Julius Caesar to ... ?
Capital is really important to a new coin business. Thankfully we went in knowing this and to this date have not been offered a deal we couldn't afford.
Comments
This is just my two CENTs
Have a Great Day!
Louis
AHh crapola...i just noticed the date.
It is not easy, but you get to see cool coins more often than not.
Exactly.
Great spirits have always encountered violent opposition from mediocre minds.-Albert Einstein
if you truly have the drive to succeed, meaning you can make sacrifices when necessary and/or have a lot of start-up capital, go for it.
a lot of determination, relationships, experience, capital, sacrifice(very important) and creativity is what is it going to take
also keep your personal life and expenses in check, a lot of businesses fail due to these but get blamed on bad business
i personally am in love with the freedom being in business for myself provides. she can be a bit challenging at time but i wouldn't trade her for the world
edited for speeling and gramma
.
a small addition:
listen to your instincts, have faith and like dell, gates, buffett, orman, kiyosaki and many more say, LOVE WHAT YOU DO!
.
And as for the shops that do not do well, consider that there are many businesses in many industries that do not do well. Usually, it's more a function of bad management than of being in the wrong business. The point is that whatever business you choose, if you run it well, it will probably do well. Conversely, if you're not going to take the business seriously, it will probably not be very successful.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
As a retired dealer I can tell you that overhead expenses can kill you because of the low mark-ups in the coin business. When you have the expense of a retail store added to the mix, it is a croaker. Some collectors rag on “brick and mortar” coin shops as “dens of thieves,” but truth is those dealers have to charge higher price and pay lower prices to survive. In addition many of the B&M guys I’ve known, who were successful, had a big presence on the Internet as well with websites and eBay activity.
The concept of being in business for only year and then getting out with a profit is unrealistic. Often it’s going to take you a year to build a customer base, and if you do it right you should be seeing “light at the end of tunnel” (profits) for the second year. Also you might well have to be involved with things in addition to coins. There are very good reasons why so many coin shops were “stamp and coin shops” when the stamp business was viable.
I’d say you would be wise to become an Internet dealer and perhaps take a table at some local shows before you get into the shop end of the business. Running a ground level store has always been a challenge, and in the years since the 1960s and ‘70s where shops seemed to be at their peak it has only gotten harder for those who have tried it.
Edited to add:
I've known a number of dealers who once had ground level stores who moved to second floord offices instead. They will meet with clients at the office, but have limited interactions with the general public.
Just don't put any faith in the Police down the street. The Rinckel Mansion (my great grandparents home) in Carson
City was burglarized and about $100,000 of furnishings, paintings, crystal, etc. (1971 dollars) was stolen and it is RIGHT
ACROSS THE STREET from the Police Dept. (30 feet away). It was open during the day for tours and closed at night.
The sheriff's dept patrolled hourly every night, and the thieves figured that out as well.
Thieves, if they want it bad enough will find a way.
Back door, roof, walls. Watch 'em all. Pay particular attention to the installers of the alarms system.
Good luck,
bob
Ah, crapolla, just noticed the date too!
With apologies to Mr. Carr, this response seems appropriate:
So does anyone know how this worked out?
"The only place success comes before work is in the dictionary."
~ Vince Lombardi
<< <i>Forget the rare coin part of it, the only way to play that game is on the national show circuit. This is mainly a gold/silver operation. >>
In the current market, that is a fair statement. Selling rare coins from a storefront is not going to carry your business. If the metals markets go into the doldrums again they did after the highs of the late 1970s and early ‘80s that market will not be able to save you.
<< <i>Commercial real estate in this area is dead, dead, dead. Lots of strip malls around here with only one or two tenants left. I know of one situation where a landlord accepted 10 cents on the dollar rather than kick a tenant out. The point being, overheard will never be lower than it is now. I think a bare bones B&M could be run for $25K/year or less. >>
The rent might be low, but I'd be reluctant to be dealing in precious metals and other valuables out of an empty strip mall. There was a recent case here in Florida of a dealer who was accosted by a man with knife outside of his store. The man had done business with the dealer in the past so he was no stranger. The man slashed the dealer’s ear; the dealer shot him dead. There were no charges filed against the dealer because of self defense, but still it’s not kind of thing you want as part of your occupation.
President, Racine Numismatic Society 2013-2014; Variety Resource Dimes; See 6/8/12 CDN for my article on Winged Liberty Dimes; Ebay
It could cost you your life. or serious consenquences.
Just praying that I make it safely to years end
- Ian
Owner/Founder GreatCollections
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