B&M Coin Shop in 2025?
yspsales
Posts: 2,474 ✭✭✭✭✭
Life has been throwing me curveball after curveball since Covid.
Weathered it well and now my attention can focus on moving (literally) towards my wife's family.
This is a career 2.0 move... debt free with income
1) Financially sound enough to think of a one man coin shop about 60 minutes outside of Atlanta. Back of the napkin plan is to purchase a 3-4 unit strip mall type locale to rent units and keep one to house a coinshop.
2) Travel the show circuit as a crackout, flipper, vest pocket, niche collector dealer... ie... fund my hobby via online collectibles store.
3) I know it is all about connections and relationships on the show circuit. Is there any 2025 model as a traveling vest pocket type buying collections and visiting local pawn shops and B&M?
Junk jewelry is a skill set I lack.
Relationships and connections is a tool I lack.
The security would be a big concern, but can you turn over PM's enough to make slim margins worth the risk?
TBH... as I type this and ponder, option #1 without a coin store, floating #2, and eventually growing into #3 might be option #4.
Comments sincerely appreciated
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Comments
Given what you write that you do and don't know, as well as don't have and lastly what you plan for the future, this has financial disaster written all over it. I don't write that lightly or with an attitude, but there are red flags here.
In honor of the memory of Cpl. Michael E. Thompson
“The security would be a big concern, but can you turn over PM's enough to make slim margins worth the risk?”
No. Security concerns alone should dissuade you from making yourself a target 9-5 or whatever hours your shop would be open.
I wish it were otherwise though.
Your age is one consideration.
60
BST: KindaNewish (3/21/21), WQuarterFreddie (3/30/21), Meltdown (4/6/21), DBSTrader2 (5/5/21) AKA- unclemonkey on Blow Out
wouldnt open a shop, for security as people have mentioned and it also ties you down. The fantasy of opening a store is just that, in reality it's a grind of people coming in with dreck that think you are trying to rob them when you make an offer on their crapola. Also to highlight the disadvantages of a shop, we had a storm here a couple of summers ago that knocked out the power for a few days, The local shop owner had to sleep in his store for three days as the alarm system was out. You just can't think of all the different ways a store will be a burden to you. Option 2 is less risk and ties up less capital.
Nothing against B&M's, but the upkeep cost just doesn't make sense to me, especially on a new startup venture. The cost of real estate is astronomical. Then you have electricity, heat/AC, taxes, and normal maintenance. There are so many platforms to sell your coins on for relatively cheap or a website can be built (for free) with less than $40 a month cost after that. Don't get me wrong, I love going to B&M's, I just wouldn't want to be responsible for that commitment.
How do most coin dealers start? In order to open a store front, you have to have inventory to sell. Do most dealers start out first as collectors and once they they have amassed a large enough collection, they start selling?
@yspsales - If you are truly serious, you should attend ANA Summer Seminar and take the course Advanced Coin Dealing taught by Kenny Duncan Jr, Seth Witter and Rob Oberth. They will help you develop a business plan and teach the ins and outs of dealing. Additionally, you learn a ton from others in the class, many of which will already be dealers. I attended in 2023 and it was incredible.
You would do FAR better to open an online only store front, and specialize in one thing or another - without excluding all other numismatic interests. Charmy Harker is an excellent example of successful online dealer. There are numerous, so I hope she doesn't mind me using her as an example, but she specializes in cent coins and early copper, hence her name "The Penny Lady", but she also sells other type coins on her website too. To my knowledge, she does not have a brick and mortar store but does all her business online, and travels extensively to shows across the country.
At any rate, THAT is the best and safest business model I can think of. Good luck in whichever direction you decide to take!
Dwayne F. Sessom
Ebay ID: V-Nickel-Coins
I agree with the people who said that there are some red flags. If you don't need income and want to do it for fun, it can't hurt to try. But if you can't afford to lose money, person-hours are better ways to dabble while you build the skills.
In no particular order:
1. Scrap is often the biggest slice of BM business. Knowing jewelry also helps maximize this.
2. If you lack connections, who are you going to buy collections from?
3. 90% of collections are a mix of bullion and junk. How are you going to move it?
I'd also say that, while security is a risk, the more negative responses here are rooted in ignorance. No one even knows where you are going. How can they possibly know what the risk is? Some neighborhoods are safe.
Of the 4 BM I've primarily visited over the last 25 years, the only crime any of them have ever suffered is someone palming a coin. There has never been a robbery in any of those 4 stores. You take reasonable precautions and choose a safe neighborhood for the store and you can manage the risk.
A coin shop is a nice thought, but it's akin to opening a new Circuit City, or Service Merchandise location at this point. Very different world now. Online is the way to go.
https://www.ebay.com/mys/active
It would seem like trying to sell online and renting a table at a show are better ways to start. See how it goes and from there you will have a better idea of where to go next.
Go with option #2 so you have the extra cash flow from the other renters. If the shop becomes too much for you, you will still own the building and can still collect rent to fund your numismatic ventures.
Custom album maker and numismatic photographer.
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If you decide to open a shop, have somebody there when you're gone. Nothing pisses me off more than driving up to a store on a Saturday afternoon to find out they're closed.
Sometimes I think that animals are smarter than humans, animals would never allow the dumbest one to lead the pack
Not having a B+M has it's tax advantages.😆
Travel to several local shows if available in your area and see if there’s even a demand for a coin shop. Realize that once you open a shop it owns your life…..Good luck!
Having a B&M has its tax advantages.
bought a coin shop when I was 54. My wife told me I was too young to retire in 2020 when I was 65. Now I’m 69, going on 70 in a few weeks and my wife is pleading with me to hang it up. I told her I’d quit when I got to 44,444 posts. I’m getting close.
I considered this route when I decided to get into the business. I had a similar thread about the same subject if you want to check it out. Ultimately, I decided against it, and went the online retail and some shows route. I have an office but it’s by appointment only, and most calls that come in are about wheat cents or junk silver, occasionally I’ll get some gold or decent Morgan’s.
I’m working on a different angle now as well, but I’m happy to share the information I used to make my decision if you want to give me a call sometime. There’s many factors that needs to be taken into consideration if you want to go the shop route, , in addition to a lot of great advice already posted here.
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Security would be a major concern for me as well, unless you were next door to a police station. Too many nuts out there.
I’ve known two Seattle area dealers who worked alone. One was killed during a robbery. The other was marched back to his safe in the backroom, with a 9mm muzzle held to the back of his head. He escaped without harm, but was completely terrorized, and he closed his shop within six months. A real shame, as he had never had an issue previously.
No way would I work alone.
Good luck, regardless of which way you go.
Dave
I echo the other sentiments about security. Keeping your things safe in a strip mall is probably close to impossible. I don’t think I could do a b&m unless it was in a structure with a walk in vault.
BHNC #248 … 130 and counting.
Can't you do all that without the strip mall, landlord, and physical coin shop? With the travel you describe when would your one-man shop be open?
A small business of any sort is a real crap shoot. The less capital at risk the better, which flies in the face of the need to have a superior, safe location. If one wants mainly to have some fun and have something to do post-retirement, and can afford it, then go for it. Lastly, a thick skin is needed to deal with the public.
Speaking of security, I remember going to a coin shop in the late 80's or early 90's in San Diego when I was stationed there. There was a heavy duty expanded metal door and you had to be buzzed in.
Paranoia will destroy ya, but it doesn't mean there aren't good reasons to be so as well. Once upon a time when living in the city I very much enjoyed dropping in to a friend's shop he'd been at since 1983. In 2013 he hung up his shingle but another, newbie dealer opened shop in the same location under a new name. Some months later, he buzzed in the wrong person and was knifed to death in the back. Scumball got caught and is in jail, but not nearly the punishment he deserved. I would never work alone in a B&M.
What took you so long? I lost the over/under which was one hour.
@IRS> @originalisbest said:
There's a cash 4 gold place locally that had bullet proof glass between patrons and employees. There is no direct contact ever. I wouldn't want to operate that way, but there are ways to operate safely in even bad environments.
@yspsales . I wish you the best of luck but will beat the safety drum with so many others. Whatever you do be smart and stay safe. James