Making the move to dealer
yspsales
Posts: 2,588 ✭✭✭✭✭
Been nine months of upheaval.
Loss of my second parent.
Moving to be close to my healthy, but frail, 94 yo MIL.
Packing up and selling two houses.
Enduring a detached retina and being blind in one eye four months
Multiple trips from Myrtle Beach to SW GA (with my one good eye)
Finally see a light at end of tunnel
Oct14 eye surgery to clean up cataract and hopefully restore my vision.
Oct 22 close on sale of my house
New beginning...
26k acre West Point Lake with 22 boat landings
Firing up my Ebay store and trolling stores for resale items on top of the hundreds of items for sale in my warehouse.
With no children of our own, engaging and being a positive influence in the dozen or so youth on my wife's side of the family.
No longer in a coin desert. Access to coin clubs, Atlanta Airport for national and regional coin and card shows.
Everything is aligning. Time, money, access, some experience, and a drive to move onto a new phase in life.
Minimal inventory but a pocket full of cash and a cool vest pocket.
Aiming for Baltimore in November.
BST: KindaNewish (3/21/21), WQuarterFreddie (3/30/21), Meltdown (4/6/21), DBSTrader2 (5/5/21) AKA- unclemonkey on Blow Out
Comments
Have you been in the coin game long?
Student of numismatics and collector of Morgan dollars
Successful BST transactions with: Namvet Justindan Mattniss RWW olah_in_MA
Dantheman984 Toyz4geo SurfinxHI greencopper RWW bigjpst bretsan MWallace logger7
Best of luck
A challenge. Cool
"Inspiration exists, but it has to find you working" Pablo Picasso
You can make a ton of money relatively quickly if you are willing to lie to folks (both buyers and sellers), but if you want to treat folks the way you would want to be treated (or at least the way most of us would want to be treated) then it will take more than just multiple things in your life lining up at the same time to make it happen.
I sincerely wish you luck, but you will be in a very competitive arena given everyone and their brother thinks being an ebay coin dealer is easy.
In honor of the memory of Cpl. Michael E. Thompson
First purchases were the 1995ddo Lincoln.
Learned a humbling lesson.
In and out a few times. Experience in sports cards but always came back to coins.
My comfort level is good with Buffs and Morgans. Don't really count moderns, though that area has always been my most profitable.
Got a liquidation plan for estate and my existing collectibles and camera gear. Lots and lots of $$$ sitting around.
As I learned here and in my part time hobbies.... turnover is key. Ruthlessly grading and evaluating. Stay in my lane. Reinvest
BST: KindaNewish (3/21/21), WQuarterFreddie (3/30/21), Meltdown (4/6/21), DBSTrader2 (5/5/21) AKA- unclemonkey on Blow Out
I am glad you're getting your eye fixed.
Vision is an important element in being a coin dealer I'd think.
peacockcoins
I look at Ebay as a general resale yardsale. If it covers my travel cost, I will consider it a win.
Literally, the vest pocket approach will be my focus initially in coins.
Education, shows, clubs, and face to face relationships is the biggest part of my model. Quality not quantity
BST: KindaNewish (3/21/21), WQuarterFreddie (3/30/21), Meltdown (4/6/21), DBSTrader2 (5/5/21) AKA- unclemonkey on Blow Out
Lately, I've put some thought into rehoming my treasures. But that would just be a sell side thing.
Once I part with items I never thought I'd sell over last 40 plus years I will have moved on from coin collecting hobby. I see it like a Fred Weinberg departure.
Collecting Mint Error coins has been an enjoyable ride !
If I pass before her I don't want my awesome wife to get screwed by local dealers.
Sadly, I've heard firsthand accounts so that's not happening to her, unless I keel over soon.
Good Luck to you !
Lindy
best of luck
https://photos.google.com/album/AF1QipNmiAijitpq-ZDHsmIgGZ1pmlYcLP-8_hB7JrLk
If one a dealer on the show circuit can be tough:
It takes its toll:
Fierce competition - many have really huge inventories.
Travel can be stressful especially if flying, going thru airports, on a plane - don’t let your inventory out of your sight, control.
Some shows may be a bust (sales wise). And then you can be in the red after fixed overhead expenses.
Unloading / Loading very stressful- you can be a sitting duck especially if no security around. Would frequently realize robbers could shoot one dead, be out of there quickly with my stuff.
Always lock cases if away from table. Many coming in bourse room there to rip you, steal.
Try a few local shows to get a feel.
Good luck. Education is a very key aspect. Never miss an opportunity to learn. 2nd key is to learn how and when to listen to both peers and customers.
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
Just wanted to chime in with another thought.
Do you have a wholesale connection or connections or will you be buying your inventory over the counter?
Auctions?
Private sales?
I think they have an upside but many mistakes can be made and become expensive very quickly.
I do wish you luck. I am just suggestion you think it through.
Maybe some gold will help you as a hedge.
Student of numismatics and collector of Morgan dollars
Successful BST transactions with: Namvet Justindan Mattniss RWW olah_in_MA
Dantheman984 Toyz4geo SurfinxHI greencopper RWW bigjpst bretsan MWallace logger7
Best Of Luck
Need a signature look... LordMarcovan inspired
BST: KindaNewish (3/21/21), WQuarterFreddie (3/30/21), Meltdown (4/6/21), DBSTrader2 (5/5/21) AKA- unclemonkey on Blow Out
It's a quality vest with pockets, seems perfect for some vest pocket dealing, and it appears you can pack some heat as well.
Overhead is a killer. Customers are not as retail as before. They get the greysheet. They participate in the same auctions that used to be a dealer's source. 10% on eBay store sales. Coin show travel and bourse expenses. Other selling site costs. Acquiring inventory that is reasonably liquid and has margins above those overheads costs is important. I am saying that as someone who learned such obvious lessons the hard way. The collector instincts and get in the way of responsible business conduct.
That all said, get your local license and fictitious name(s) properly registered. Connect a bank account with them. Make sure to have any appropriate sales tax exemption permits registered and set up at the auction sites you might buy from. Same with linking the business checking account. A card payment option is a potential consideration. (I am still trying to get mine, from Costco, working.) Venmo, PayPal, ... too of course. A business tax ID will be needed if hiring anyone. Insurance and secure storage can eat into the margins too.
Records cannot be overemphasized. Taxes are the reality, whether a sole proprietorship (or husband/wife partnership) or some level of incorporation. The bright side is that income is ordinary business income and expenses are deductible on Schedule C, if a sole proprietorship.
I doubt many have gotten into this business and done well from the get-go and with very few obstacles and mistakes. It involves money and that is a magnet for criminals. On criminals, also be aware of just how difficult it is to return from a coin show with a pile of absolutely legitimate $$$$, documented for taxes and all, that you can't deposit easily in the bank without triggering a SAR (Suspicious Activity Report) if it, or a series of deposits, is near or exceeding $10k. Oh, and print out some IRS Form 8300 copies before hitting shows. You need to properly document and report cash (or cash equivalent) transactions exceeding $10k.
Very helpful. Thank you for taking the time to respond.
BST: KindaNewish (3/21/21), WQuarterFreddie (3/30/21), Meltdown (4/6/21), DBSTrader2 (5/5/21) AKA- unclemonkey on Blow Out
Its not all doom and gloom out there. Some valuable advice here in this thread.
Shows, customers, and dealers are all about relationships in my mind. If you want to have good relationships, excellent customers, and good shows, treat people how you would want to be treated. Don't gouge, be realistic in setting profit margins, and pay fair prices when buying from folks. As pointed out, they have resources just like you do (if they are savvy), and if not, it still isn't cool to gouge. Well, at least that would make me feel icky and wrong. Relationships with other dealers are just as important, if not MORE important, than you might think. I know at least 10 other dealers that I can do business with, for a variety of different types of coins, and what they are likely to pay (or I can call them and get a fast quote). Most are wholesale, but that tells me what I can and can't do (might be important before buying a coin/collection). Its very important, particularly when you might not be the best to maximize profit on a coin, but someone else can -- and you can profit share with them.
Coin knowledge and grading is where you can make real money. Know more than the guy next to you, and you know what you can and should buy.
Yes, criminal activity is real -- just make sure you do things smartly. Know who in the room is the plain clothes cop, and make friends with the ones in uniform. Have them walk you to your car when loading, and have them stick around till you drive out. Watch your mirrors for 10+ miles, do NOT stop for gas or a drink or dinner when driving. Drive to your destination, period. Get all that other stuff done before getting in your car. Pack a piece if you want to.
Share advice and knowledge. It will get shared back with you. Good luck. Maybe I'll see you on the national circuit sometime!
Surf
(Beachcomber Coins)
The best of luck to you!
Good luck! Lots of great ideas above.
Build a brand. Are you general coins or specialized? Build a business plan around that.
Online only, shows, brick and mortar?
Don’t forget, depending on your financial savvy, hiring a CPA
Keep any online presence current. I personally assume a shitty or out of date online presence equals shitty / shoddy company.
Remember people have jobs. A store open 9-5 helps nobody if they are working.
Estate sales.
Sounds like you’re on track and things are working out for you!
Hope it continues and best of luck!!
Sometimes, it’s better to be LUCKY than good. 🍀 🍺👍
My Full Walker Registry Set (1916-1947):
https://www.ngccoin.com/registry/competitive-sets/16292/
Selling is fairly easy, unfortunately money is made on the buying side.
11.5$ Southern Dollars, The little “Big Easy” set
I’m ready to get out of the business …. But it’s like the song “Hotel California” lyrics ….”you can check out any time you like, but you can never leave”.
It is fun, though unlike you, there is never enough money in the bank ( for what comes in ). Be selective. You got it right ( attitude). Stick with what you know and stay in your lane. Enjoy !
``https://ebay.us/m/KxolR5
At my pre-op, met a former diamond grader of 30 years.
This led me down another rabbit hole of jewelry and such.
No grand delusions.
Looking forward to the next 20 years of my life.
If all I do is subsidize a glorified hobby? I have made worse decisions and their will be no regrets.
BST: KindaNewish (3/21/21), WQuarterFreddie (3/30/21), Meltdown (4/6/21), DBSTrader2 (5/5/21) AKA- unclemonkey on Blow Out
I would suggest specializing in some area that you know well. That way, the collectors who specialize in that area will find you. This holds true if they are buying or selling. If you are a generalist, you need a lot more capital and you need to know about every area, which is much more difficult.
An authorized PCGS dealer, and a contributor to the Red Book.