Is it crazy to buy a Brick And Mortar Coin Shop?

Geoman · February 23, 2006 1:36AM

How crazy is this? Is it crazy even to think of a Brick And Mortar Coin Shop in today's internet/auction age?

There has been several discussions previous as to why the downturn in the number of Brick And Mortar Coin Shops. Some attributed to rude or unknowledgeable dealers? Some comments suggested the Brick And Mortar Coin Shop is a dying business. What does it take to make a go at it (any current Brick And Mortar Coin Shop owners please chime in here). Do you think a combination of selling on eBay, selling bullion, and selling coins would work? How big of a population would you guess is needed to support a Brick And Mortar Coin Shop.

I, personally, an not planning on this. But I have heard several other collector's causally discuss this at our coin club meetings. And I wonder if this is even something someone could actually do in today's age and make a good at it.

Any thoughts?

MORGANHUNTER2 · February 23, 2006 1:52AM

can't be any worse off than any other business in today's world.

I think if you get rid of the arrogant attitude that some have experienced, and manage a brighter outlook on life as opposed to doom n gloom- you can succed.

Take a restuarant- if the food is crap- it will die- instantly. if the food is fair to good, but ambience and staff are friendly/cheerful- then the biz can succeed, excellent food but lousy service- will have a major turn over with customers and lots of complaints usually backed up with the proprietor 'giving' a break on the bill, because he would hate to lose a customer- on this one- I would inform my staff - with vigor- be nice or leave now.

as for placement of a B/M biz- ya need clientele- and if you position yourself in an area that is growing fast- then you can be set for at least 20 yrs or more- and then build on a reputation of friendly, courteous and fair to all customers not just those that can pop in with 20K and act like an ass because of what they have.

my opinion is just that.

Russ · February 23, 2006 2:10AM

It's crazy to own any small business. Much safer to be a drone in a cube farm.

Russ, NCNE

WTCG · February 23, 2006 2:17AM

Not a crazy idea to aquire a coin shop. Just be sure you know how to properly run one before you buy one.

TheLiberator · February 23, 2006 2:18AM

<< <i>It's crazy to own any small business. Much safer to be a drone in a cube farm.

Russ, NCNE >>

Says the small business owner that hated life as a "corporate lackey!"

So tell me Russ: Now that you own your own business, would you have it any other way? I often dream about it but I know what a pain in the arse it can be.

RYK · February 23, 2006 2:19AM

Sounds like another great way to make a small fortune...especially if you start with a large one.

Barndog · February 23, 2006 2:23AM

A dealer in my area recently bought out another dealer's brick and mortar coin shop. It made good business sense to him. He now has access to hundreds (thousands?) more coins each month as people bring in coins they inherited or just had laying around the house.

Cladiator · February 23, 2006 2:26AM

I don't really know if I would enjoy numismatics more or less if I was involved on the other side of the table so to speak. Somehow I think it might be less.

MadMarty · February 23, 2006 3:10AM

LongtimeCollector opened a shop in IN, and is doing well!

a039 · February 23, 2006 3:11AM

I was given a coin magazine about five months ago and that started my coin addiction. I went to several local coin shops expecting them to be like most small shops like shoe repair, drafting supplies or Mom and pop dry cleaner etc....Nothing could be farther from this expectation! It appears that most treat it like their little fiefdom and you the buyer better watch your P, s and Q, s if you expect them to interact with you. Apparently the occasional rips off the old folks are very lucrative as they do no not need your business to keep the doors open. Now that I understand this, believe it or not I put up with it hoping that they have something new that will feed my chronic coin addiction! Imagine if you had someone that was professional, honest and actually liked interacting with people that would be some shop. Take care-Mark

BillJones · February 23, 2006 3:19AM

I think that most brick and mortar coin shops are going to become a thing of the past. The overhead, risk of robery and long hours are enough to kill. In addition the mark-ups in the coin business are really poor compaired to other businesses. In the old days brink and morta dealers often survived on the stuff people brought in to sell. They would buy stuff for bargain prices, and resell them at fair or if they were lucky retail prices.

The days of the family hoards are pretty well gone. Now is more a matter of buying selling certifed coins at thin margins and doing it in volume.

I know a number of large dealers who have offices where they meet customers, but they don't have retail or groundlevel stores. That arrnagment seems reasonable to me.

BlindedByEgo · February 23, 2006 3:32AM

Most of the b&m shops around here do parallel business... OTC retail along with internet selling and even buying. The physical presence aids in the walkup opportunities and the legitimacy factor (long-standing local merchant is safer than a random phone number from the directory...)

I think it has to do more with the demographics and good site selection. There were a lot more coin shops in LA when I was growing up, and they all had bidboards

A great customer service attitude and salesmanship will help in any business, be it a coin shop, a dry cleaners or the local hot dog stand. I do wish that I saw those things more often in the coin business.

BigD5 · February 23, 2006 4:21AM

The biggest obstacle in the greater Boston area for a traditional brick and mortar shop would be the cost of real estate to house such an operation. It's virtually impossible unless you were to get creative and purchase a building and rent/lease out other parts of such building to offset costs for the coin shop.

That's why most up in this area have offices.

Plus, with the shop, you have a commitment to be open for certain hours and have to work a schedule around those hours. Working out of an office you can make your own schedule.

I have to run, but there's a couple of reason's for you.

JJM · February 23, 2006 4:30AM

I own my biz, a small restaurant, and the restaurant analogy above is right on,...Im there 6 days a week and I know everyones name. as far as a coin shop , with the right knowledge, and attitude, and mix of ebay , etc...it could be done...I live in delaware , and there are 3 shops in the state that I know of. One I dont go to cause the guy is a deek,...everything I have sucks, all his material is the best avail, bla bla bla, Ive shown him stuff in pcgs slabs and always insists everything is a grade or two lower......as a added extra bonus to having my restaurant is that now some of my coin club people / some local dealers, meet once or twice a month in my shop,...its pretty cool....coin shops are a dying breed but very

beartracks42 · February 23, 2006 8:23AM

JJM,

I have been to Diamond State in Wilmington and the one on route #8 in Dover. Where is the third shop? BTW, I live in Ohio and I visit these shops when I am on vacation to the beaches and atlantic City.

The one and only coin shop within 80 miles of my home, only buys coins. He ebays everything he sells!!

sinin1 · February 23, 2006 8:39AM

If you love buying coins, and are willing to put in the hours - this is the way to go - people bring coins to you

A nice bankroll in reserve and very good wholesale distribution routes would definitely help

ALthough the value of coins have been rising fast - there may come a time when they drop - just think of all the stamp dealers there used to be, compared to seen now

so is it crazy to BUY a coin shop? depends on the cost, location, and size of risk to buyer

BECOKA · February 23, 2006 8:49AM

The only reason to have a brick and morter shop is to get people walking in with inherited coins. Otherwise it would seem to make more sense if a dealer stuck to the internet and focusing on going to different shows around the country where the real customers are. If you earn the trust of customers at shows they will most likely keep in contact.

roadrunner · February 23, 2006 9:36AM

In my area 2 brick and mortar shops are gold mines. The stuff that walks in there is pretty neat. It's hard not to make money when people almost give you the stuff. Each shop has coins coming back to them on a cycle that began from 20-40 years ago. Can't beat that. And with all the traffic from gold and silver, and the casino's as well....life is good if you know how to play B/M coin dealer in CT.

roadrunner

Bochiman · February 23, 2006 9:47AM

<< <i>I own my biz, a small restaurant, and the restaurant analogy above is right on,...Im there 6 days a week and I know everyones name. as far as a coin shop , with the right knowledge, and attitude, and mix of ebay , etc...it could be done...I live in delaware , and there are 3 shops in the state that I know of. One I dont go to cause the guy is a deek,...everything I have sucks, all his material is the best avail, bla bla bla, Ive shown him stuff in pcgs slabs and always insists everything is a grade or two lower......as a added extra bonus to having my restaurant is that now some of my coin club people / some local dealers, meet once or twice a month in my shop,...its pretty cool....coin shops are a dying breed but very

>>

Take him some of the SGS70 material and let him pay you a grade or two lower

Is it crazy to buy a Brick And Mortar Coin Shop?

Comments

Leave a Comment