How did you get started as a dealer?

USMarine6 · February 6, 2013 7:24AM

Just curious how most of the dealers out there were able to get started in the biz. Did you buy a B&M outright? Or maybe start from scratch? I do have a small little shelf in a group shop that I sell a coin from time to time and things are going somewhat well making anywhere from 10 to 15% per coin. Im thinking about setting up at a small local coin show next month to try and keep the ball rolling. Feel free to tell your story even if it failed or is a great success. Thanks

LanceNewmanOCC · February 6, 2013 7:36AM

.
from scratch and small loans (and i mean small)

going to a lot of auctions, shops and shows made all the difference. seeing this stuff in-hand and seeing a lot of it.

although the internet has been a great help as well for learning and selling/buying

sold some neat stuff via email and it is a custom experience for the client(s)
.

amwldcoin · February 6, 2013 7:41AM

I started as a collector setting up at small shows looking for coins for my collection! Blossemed from there.

AnkurJ · February 6, 2013 7:56AM

Had a lot of excess to sell. Set up a few times and enjoyed it, so I continued.

Cameonut · February 6, 2013 7:56AM

<< I started as a collector setting up at small shows looking for coins for my collection! Blossemed from there. >>

Me too, but my motivation was more to sell much of the coins I accumulated over the years.

TwoSides2aCoin · February 6, 2013 8:03AM

My dad told me about a 1943 Copper cent in 1961 or thereabouts. That gave me a dream to search for it, and buying a shop in 2009 only made me realize a nightmare.

NewEnglandRarities · February 6, 2013 8:08AM

My father and me started as collectors and then in college I started working with a well known dealer for a few years before starting on my own from scratch. Luckily things went good in the beginning and here I am 11 years later.

Seeing as many coins as you can in person and following all the auctions is extremely helpful. Once you have a few good pieces in inventory customers will start finding you and it can build from there. Good luck!

jdimmick · February 6, 2013 10:37AM

I collected for many years, before dealing. Starting dealing a little on the side to help finance some of my personal purchases, actually enjoyed it more helping people find the coins they needed.
Always wanted to be a full time dealer , but never had the guts to open and try it, had a good job that enabled me to tool around on company time and visit coin shops around the region.
Loss job in 2008 due to economic slowdown, sold personal collection to open B & M. Operated the B & M for a few years, coin side of the business was so -so too sucky locally, mainly due to this area, and secondly the economic slowdown, but the gold buying business blossomed and did well. Started back buying coins again for my personal collection instead of leaving cash sitting around collecting dust. Really love buying for my self again.

This past January, due to medical reasons , safety concerns and wanting to step back a little an enjoy life with out having to be tied down running the store all day everyday, I worked out a deal where I financially back two locations here in town, one my old store front, which is mainly a gold buying place, and the other a coin shop (currently now operating out of the flea market), but moving to a full store front location soon.

Now I due a few more shows, pal around to a few other shops to do business away from here, and do quite a bit of internet business. Really enjoy relaxing, not having to work or do anything I don't want too.

jim

bidask · February 6, 2013 11:50AM

<< I collected for many years, before dealing. Starting dealing a little on the side to help finance some of my personal purchases, actually enjoyed it more helping people find the coins they needed.
Always wanted to be a full time dealer , but never had the guts to open and try it, had a good job that enabled me to tool around on company time and visit coin shops around the region.
Loss job in 2008 due to economic slowdown, sold personal collection to open B & M. Operated the B & M for a few years, coin side of the business was so -so too sucky locally, mainly due to this area, and secondly the economic slowdown, but the gold buying business blossomed and did well. Started back buying coins again for my personal collection instead of leaving cash sitting around collecting dust. Really love buying for my self again.

This past January, due to medical reasons , safety concerns and wanting to step back a little an enjoy life with out having to be tied down running the store all day everyday, I worked out a deal where I financially back two locations here in town, one my old store front, which is mainly a gold buying place, and the other a coin shop (currently now operating out of the flea market), but moving to a full store front location soon.

Now I due a few more shows, pal around to a few other shops to do business away from here, and do quite a bit of internet business. Really enjoy relaxing, not having to work or do anything I don't want too.

jim >>

Thats a nice story.......glad your relaxing and still involved.

USMarine6 · February 6, 2013 7:58PM

Thanks for all the stories. Maybe Ill take the leap and set up at a small local show next and see where it leads

TwoSides2aCoin · February 6, 2013 11:35PM

<< Thanks for all the stories. Maybe Ill take the leap and set up at a small local show next and see where it leads >>

Margins are a lot thinner than you think. I'm doing a show in Nebraska City this weekend. I'm always afraid of the same thing. Buying more than selling. It went from a good hobby to a bad habit, real quick friend.

Tomthecoinguy · February 7, 2013 1:43AM

I had collected coins as a kid spending most of my summers hanging around a coin shop and learning everything I could. I got a bad taste for coins right around High school. I didn't think about coins much for a long time, probably 10 years or more.

Then I was at an auction and I just had a sense that the 90% silver, and some current foreign currency was going for way less than it should have. I didn't buy anything, because I didn't do any research and didn't know for sure. The next time that particular government auction rolled around (two years later!) I came prepared with local dealer buy prices on 90% as well as some foreign exchange rates. My initial hunch on the auction was correct and I ended up doing well. I bought at the auction and sold to the dealers at a local coin show. After that I started searching for any auction I could find. I gradually started moving from the easy stuff like 90% silver, to things I would need to grade like key date coins. As I started to buy more and more, it became increasingly difficult to sell the stuff at coin shows just because of the amount of my inventory. I also got a little frustrated with selling to other dealers lots of rejection, and when they did want it lots of criticism on the quality.

Then I remembered what my neighbor had told me. He was a jewelry designer and started out doing wholesale. When he first moved into retail I asked him what he thought. He said that he had a lot more job satisfaction working retail. The other jewelers would always rip apart his work looking for flaws, and trying to get a cheaper price, where as the end customer would really appreciate the work he did. This was exactly how I felt about selling to some (but certainly not all) of the other dealers, couple that with the fact it was taking me so much time to shop around my inventory, I decided to setup at a coin show. I bought some cases I found hand made at a local antique shop, and rented a table at a coin show.

I felt very intimidated at my first show, like I was out of my league, but that feeling left after the first show (although it came back the first time I did a regional show, and expect it will the first time I do a national show). I really did love working with the end customers, selling them a coin that they would just love and appreciate. I also do antique shows. The sales aren't as good there, but I just love talking to people about coins that are not familiar with them it gives me the chance to spread the word about the joys of coin collecting.

I'm so glad I got back into coins, and I'm so glad I became a coin dealer. It is so fun!

ColonelJessup · February 7, 2013 1:47AM

<< .... It went from a good hobby to a bad habit, real quick friend. >>

Been there, done that

I was a retail customer of Renrob in the 70's. When I told Bob Rose I was going to go back from management to technical gun-for-hire consultant in the computer software field and want to futz around as a vest-pocket, he said "Why don't you come work for me?". I was out on my own in 6 months.

Surely only a precipitating factor, but my marriage broke up within a year. It hurt. But I now consider the whole situation a win-win. My ex-wife, mother of my child, now happy with her 4th husband, agrees.

CaptHenway · February 7, 2013 2:02AM

Ask PerryHall. He knows everything about coin dealing.

SmEagle1795 · February 7, 2013 2:09AM

I pose the question: what exactly defines a dealer versus a collector who sells coins?

Onedollarnohollar · February 7, 2013 2:20AM

<< I pose the question: what exactly defines a dealer versus a collector who sells coins? >>

The kind of car they drive....

guess which one I am.....

pennyannie · February 7, 2013 2:54AM

I do not doubt the 10 to 15 percent now so i chose not to play in that sandbox. 8 to 10 years ago the numbers were better IMO. A bad deal here or there and you are in negative numbers. The local B@M's in my area are more like a pawn shop. At best they pay 25 cents on the dollar and fudge the numbers on the bullion. Coin people must be a smarter lot cause before the big boom on guns i could always buy at 25 to 40 cents on the dollar. The week before xmas i set up at the gun show and doubled the price on every gun on the table after 9 a.m. and was sold out by lunch time.

I have from time to time placed ads in small retirement communities looking for certain items and you would be amazed what shows up on your door step. Not sure if you could just place buy adds in coin mags but i would look into it.

In the past ( about 7 years ago) me and a few friends pooled our funds and set up at a coin show mainly trying to buy, we had moderate success but not enough to stay after it. Mainly we were hit by dealers trying to dump there problems on us. When setting up at any type of show i have found it to work better with 2 people, one at the table and one on the prowl looking for material. A good percent of the time if you deal with a person and it clicks you may find you will do more business outside of the show.

I have been self employeed for 30 plus years, the first 4 were the hardest. I always plan for the worst and look at everything thru the worst case outcome and go from there. As with anything timing is important and the more you put into it the better off it usually turns out. You need to find something you can do better than the other guy.

A wife/partner with income makes things easier. I have 24 duplexs and some mobile homes and lots so i can pick and chose what i want to do and at least have my bills covered.

I would lay out what i thought i needed to make on a monthly basis and then figure out if i thought i could get there. I never go to a show with less than 10k, i would think you would need access to 100k plus to think about opening a store after you have your opening inventory.

Good luck!!

Put me down for a few silver eagles or a few common morgans.

crypto79 · February 7, 2013 2:58AM

<< I pose the question: what exactly defines a dealer versus a collector who sells coins? >>

I bet a few of the people who responded don't poses resale licenses and or ever pay taxes on their sales. They are hobbyists who fancy themselves pros but they don't really have the obligation to turn a profit for food and water. Doesn't sound like a dealer to me and just because they buy at retail and find ways out of a bunch of coins because of the bull market doesn't make them a retail operation.

bidask · February 7, 2013 3:38AM

I had a very well known dealer tell me recently:

He said "if you ever set up like a dealer and sell your collection I will cherry pick you and so will other full time dealers"....

Tomthecoinguy · February 7, 2013 4:35AM

<< 

<< I pose the question: what exactly defines a dealer versus a collector who sells coins? >>

I bet a few of the people who responded don't poses resale licenses and or ever pay taxes on their sales. They are hobbyists who fancy themselves pros but they don't really have the obligation to turn a profit for food and water. Doesn't sound like a dealer to me and just because they buy at retail and find ways out of a bunch of coins because of the bull market doesn't make them a retail operation. >>

In my state you won't find someone that sets up at a show that doesn't have a resale license, which is called a sales and use tax ID number. You have to provide it to the show organizer before they will sell you a table. Actually if you were just going to do wholesale, and sell to other dealers it would still make sense to get a tax ID number since then you do not have to pay sales tax when you buy coins.

Now that I think about it having a sales tax number would probably be how I would define a dealer verse a collector, at least in my state.

As for the second part of your question, that hardly seems fair, and I'm not sure why you feel the need to disparage posters on this thread.

Tomthecoinguy · February 7, 2013 4:38AM

<< I had a very well known dealer tell me recently:

He said "if you ever set up like a dealer and sell your collection I will cherry pick you and so will other full time dealers".... >>

Perhaps they are afraid of the competition.

RYK · February 7, 2013 4:40AM

I did not ever get started as a dealer, but some folks here and elsewhere have confused me with one.

ColonelJessup · February 7, 2013 5:50AM

<< I did not ever get started as a dealer, but some folks here and elsewhere have confused me with one.

>>

Put down the mustard bottle and back away from the table slowly.

Sonorandesertrat · February 7, 2013 5:55AM

<< I did not ever get started as a dealer, but some folks here and elsewhere have confused me with one.

>>

Wait a minute. I thought you were a specialist, but you mean some people confused you with a proctologist?

Broadstruck · February 7, 2013 5:56AM

<< 

<< I did not ever get started as a dealer, but some folks here and elsewhere have confused me with one.

>>

Wait a minute. I thought you were a specialist, but you mean some people confused you with a proctologist? >>

RYK · February 7, 2013 6:20AM

<< 

<< 

<< I did not ever get started as a dealer, but some folks here and elsewhere have confused me with one.

>>

Wait a minute. I thought you were a specialist, but you mean some people confused you with a proctologist? >>

>>

Put down the mustard bottle and back away from the table slowly.

CJ, I have not had a hot dog in 20 years. You must have me confused with someone else.

LindeDad · February 7, 2013 6:25AM

<< 

<< I pose the question: what exactly defines a dealer versus a collector who sells coins? >>

The kind of car they drive....

guess which one I am.....

>>

All I have is a truck......But then I only sell online.

ColonelJessup · February 7, 2013 6:32AM

Gulden's on wiener, bratwurst, pretzel, pastrami, Hawaiian shirt, Tommy Bahama. whatever......

All will get you a better deal than a stinkin' resale number

But with a resale number you can work a better deal on writing off expenses like buying mustard and dry-cleaning shirts

Never never never never never never never ask a dealer for Grey Poupon. If you do, you're immediately identifiable as retail.

How did you get started as a dealer?

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