Im Joining The Coin Dealing Industry --- Any Suggestions

GregTheGreat · September 1, 2004 5:23PM

Hello.

Recently I have been down on my luck and have had a lot of financial issues.... It eventually got to the point where I decided to sell my coin collection. The one great thing that came from it was that I realized that the coin industry can make you money. I am now officially registered to be a part of a local coin show in N.W. Indiana in late October. I have spent the last 3 weeks getting together as many coins as I can find and building display cases etc. and this is what I am going to continue to do until October. I have purchased many items off CU, Ebay, a coin show I recently attended and off the RCC. I am getting ready to take the first step into becoming a coin dealer. I know that this task is hard expecally when you are in financial troubles but I feel like where there is a will there is a way and I am refusing to fail at my new endevor. I used to work for a coin shop (and have been a collector) for more years then fingers on my body, and this is the next great way for me to make myself happy and possibly solve my financial issues.

I would love to hear any advice that you might have to offer me on being a dealer (from where to get merchendise to a good luck wish). I plan on working at it until I beat it.... I am not a quitter and never have been so I know I won't fail at this. If any of you big time dealers or fellow collectors have a few extra coins you don't need anymore and feel like helping an upcoming rookie dealer out let me know. I feel like every item is important from wheat cents to 2004 nickels, to mercs, to roosys to everything. I know its tough in the beginning and the more support I have from the coin industry the better. Please give me some suggestions or if you have a few extra coins you don't mind parting with I would love to add them to my very first table.

Thanks In advance for all the support.

The New Dealer,

-Gregory Ullstam

greatcoinshop@yahoo.com

Sequitur · September 1, 2004 6:52PM

First suggestion: don't waste valuable time making 3 trillion posts in "cheat" threads.

291fifth · September 1, 2004 6:53PM

Prepare to be disappointed. Also, forget about collecting and think of numismatics from a commercial standpoint.
Don't overpay when buying. Don't badmouth the sellers coins when buying.

sliderider · September 1, 2004 8:43PM

I was dabbling with the idea myself, but thought better of it. I don't think I could stand the rigors of packing up all my coins and travelling all over creation doing shows like a wandering gypsy peddler. If I do decide I want to sell anything, I'll be trying ebay (maybe even getting their mid priced store package) or Teletrade. I might even consider selling through my own e-commerce site. Having a shop is expensive and you don't reach as large a market as you do online, especially if you aren't located near a major metro area. Sorry to be the one to bring a dose of reality into the discussion. If this is what you want, and you have your eyes wide open and your feet firmly on the ground, then go for it. If you have any romantic illusions about being a dealer, don't do it.

GregTheGreat · September 1, 2004 10:44PM

I worked at a fairly large size coin shop for several years and got most of the tricks of the trade. I understand the work behind it but I do know that if you can buy from the public cheap and sell at the shows reasonably and have the pacience to do it.... you can make money. I will give it a whirl and I do plan on going out quietly.... I am going to do my darndest to make it in the coin biz. I was taught by a seasoned veteran with over 40 years of owning his shop so I kinda know the game and how the start is the hardest.

-Greg

UncleWiggly · September 1, 2004 11:03PM

I'll send you my want list. Good luck.

Jerry

cladking · September 1, 2004 11:09PM

Good luck.

Iwog · September 2, 2004 2:52AM

Most coin dealers I know are miserable people and very unhappy. I think one of the reasons is that your profit isn't the result of how hard you work or how smart you are, but how lucky you get when the right seller shows up. Your perspective changes and instead of participating in a market that you've found a niche in, you start to feel entitled to a 'dealer discount' and get ticked off when the coin collectors dare to challenge your special status. Get a real job and keep coins as a hobby, you can still make money but you wont hate the world.

GregTheGreat · September 2, 2004 3:17AM

Wellfrom my expierences I have seen that hard work DOES pay off in the coin industry. I do accept that a lot of it is luck but the right marketing and layout and personality can really make the difference.

For example.... at the show I am going to there will be around 10 dealers and my display is by far the best. I have put some serious money into the layout and overall appearence of my table. Also all the dealers at the show I am starting at are somewhat "laid-back" and look "unprofessional".... however a suit and tie can really make you look like the #1 goto guy. I do have a LOT of expience working in the coin industry.... (have only been out of the game for 1.5 years) and I know how the game is played. Granted many coin dealers might be unhappy but I have run the route before and dealing coins is enjoyable for me. I can understand why many collectors could not understand that though. Overall I know that I can make it if I put my mind to it. I have the patience and the vigor to achieve my goal.

-Greg

Halfsense · September 2, 2004 3:18AM

Do not hire Michael Jackson as your coin company spokesman.
-donn-

EagleEye · September 2, 2004 3:39AM

There are many different kinds of dealers:

1) Local buyers. These try and buy off the public. The key is to buy cheap and move the stuff as fast as possible. Develop good wholesale connections to liquidate your common stuff and sell the better stuff retail. Their gravy comes from buying great deals that walk in. You probably need a shop for this, or set up an ebay store.

2) National buyers. These buy for dealers want lists. They travel from show to show buying what they think they can make money on from dealers and auctions. Then they must sell wholesale to dealers or in auctions. Their gravy comes from upgrade hits and high turnover. No advertising necessary.

3) Retailers. These guys buy coins for their customer data base. Their gravy comes from building a loyal customer list and finding that special coin their customers want. Selling is easy when you know your customers well. Downside is you need to advertize heavily to gain customers.

4)specialist dealers (myself included). They are the go-to guys. When a collection comes on the market they are the name that comes to mind for the dealers who are more interested in high turnover. The gravy comes from lower advertising budget (except for the initial start-up period which may last 10 years) and higer customer retention. Downside is you don't get deals outside your specialty.

The question iswhich do you want to be.

MS68 · September 2, 2004 3:44AM

Count your fingers and toes at the end of every day

Russ · September 2, 2004 4:04AM

<< I feel like where there is a will there is a way and I am refusing to fail at my new endevor. >>

I will say one thing. You have the right attitude for venturing in to any business endeavor.

Russ, NCNE

kieferscoins · September 2, 2004 4:37AM

<< I would love to hear any advice that you might have to offer me on being a dealer (from where to get merchendise to a good luck wish). If any of you big time dealers or fellow collectors have a few extra coins you don't need anymore and feel like helping an upcoming rookie dealer out let me know. >>

Ok.

<< I do have a LOT of expience working in the coin industry.... (have only been out of the game for 1.5 years) and I know how the game is played. >>

Are you a rookie or very experienced? I wish you luck at it but it seems like you know what you are doing if the above quote is right.

Cameron Kiefer

Longacre · September 2, 2004 4:40AM

Best of luck to you. Once you get established you should let the forum know so we can send you some business to the extent possible.

ScarsdaleCoin · September 2, 2004 4:40AM

Greg...good luck to you...it becomes work and like any other job you have to enjoy it to make it work for you....ditto Rick's advice....find a niche and stick with it....also on my web site I offer several really good products for dealers...these are tried and true products and may be of help to you...good luck pm if you have any other questions that I might try to answer....

SDCollector · September 2, 2004 5:16AM

As a business person and occasional career counselor, here's my advice.

If you have coin shop experience, then you may want to open a bricks & mortar coin shop. Hopefully you can find a good location with a lot of walking-in sellers. Or you can work for a shop with an owner that will be retiring soon.

Based on your experience, you know better than me that you aren't going to last long selling coins. But you may survive if you can do a lot of buying from walk-in customers and turnover the coins quickly to wholesalers. I would focus on trying to find an avenue for buying coins and turning them over quickly. I recommend you find a shop that is hiring with the goal of buying out the owner.

Hope that helps.

bullseye · September 2, 2004 5:56AM

Greg,

You may not call yourself so great after the first show. I have hung around many successful dealers and watched them grow. I think your expectations are off.

If you think being big cheese at a small show is going to make you sell more-that may not be true. If a show is that small, its that small for a reason. People probably don't attend it. Also, you don't want to be the big cheese, thats an easy invite for the bad guys to follow you.

Also, having worked at a shop and being out on your own are two different things. The shop owner probably took years to build up his name and traffic. He probably also spends a lot on advertising. You are out of your mind if you think you can just set up at a show and your off and running. You are on your own now, it will take you a long time to build a business.

I set up once to sell my duplicates. I practically sold out. I had an itch to be a dealer. I tried to restock, and realized the game was over. Reality sucked!

Just wanted to give you my point of view about all this.

Hey, if you have the drive and guts, good luck! I hope you succeed!

Mike

EagleEye · September 2, 2004 7:45AM

<< Most coin dealers I know are miserable people and very unhappy. >>

Huh? None I know of?

GregTheGreat · September 2, 2004 7:47AM

<< Greg,

You may not call yourself so great after the first show. I have hung around many successful dealers and watched them grow. I think your expectations are off.

If you think being big cheese at a small show is going to make you sell more-that may not be true. If a show is that small, its that small for a reason. People probably don't attend it. Also, you don't want to be the big cheese, thats an easy invite for the bad guys to follow you.

Also, having worked at a shop and being out on your own are two different things. The shop owner probably took years to build up his name and traffic. He probably also spends a lot on advertising. You are out of your mind if you think you can just set up at a show and your off and running. You are on your own now, it will take you a long time to build a business.

I set up once to sell my duplicates. I practically sold out. I had an itch to be a dealer. I tried to restock, and realized the game was over. Reality sucked!

Just wanted to give you my point of view about all this.

Hey, if you have the drive and guts, good luck! I hope you succeed!

Mike >>

I understnd your point of view.... however I do understand how to make money in the industry. Being the "big-cheese" is not my goal.... my goal is to sell coins. I did nearly all of the advertising and "set-up" stuff for the old shop I worked at so I definitly know how to appeal to the collector. I do understand that my aproach may be egotistical but I am just confident in myself. I don't accept failure and I put in the time and effort to make it work. I know the game and have a TON of expierence at being the go-to-guy of a coin shop, this however will be my fist solo endevor into the coin industy. I have done work on CU, the RCC, and EBAY and recently attended this local show and would be a good success there.

The 411 on the show I am attending....
Around 10 dealers total....
$1 admission
and not a one of the people there buy from people....

and there were at least 30 people I seen looking to sell at below wholesale....

The one that stuck out in my head was 800 partial and full date buffalos for 15 cents each....

and I am pretty sure I saw a 1913 in his bag with FD.

I wanted to make him an offer right there on the bag but it was not my place to do it then and I had just spent my last money on a Morgan Dollar.

My plan is to start there and possibly get a shop if things are going ok....

I actually am already scouting locations.

In reply to an earlier message.... the 4 different types of dealers that you listed can often be combined into one.... I am mainly going to be buing the low grade raw and overturning, but then you can also do the "wish-list" cust. as well. I have had some luck in this area before.

Thanks for all the comments,

-Greg

relayer · September 12, 2004 5:37AM

If you get enough coins donated to your business in the coin dealing industry, perhaps you'll break even.

But what about donations of supplies and cash? I think you'll need to ask for those as well.

stman · September 12, 2004 5:44AM

Relayer

But wait, he IS a good business man, he already thought about the supplies.....This belongs on the "I wanna be a big business man forum

100proof1957 · September 12, 2004 5:50AM

Greg,

Not to rude,but really,how old are you ?

Proof

kieferscoins · October 20, 2004 12:38AM

Any update? When is the show?

Cameron Kiefer

bestclser1 · October 20, 2004 12:50AM

Greg,Good luck.Lloyd

laurentyvan · October 20, 2004 12:54AM

I've dabbled in selling Fantasy and Science Fiction paperbacks for years. I recently sold a Harlan Ellison PB from the 60's that cost me .25 for $83.00. When I originally bought the book, there was no collector market and no listed values. That's all changed-very hard to find cheap and rare anymore. I owned a bookstore for several years and sold a lot of used but if I couldn't buy I had nothing to sell.

And that's the key: buying consistently which allows you to sell consistently. You'd better have a good war chest too; you can't afford to pass up opportunity when it presents itself.

Edited for punctuation

pharmer · October 20, 2004 1:24AM

What is your mailing address for the donated coins? Need anything else? Flips?

JadeRareCoin · October 20, 2004 1:28AM

Who dug up this old thread????

MrEureka · December 2, 2008 12:47PM

Who dug up this old thread????

Yeah, I hate when they do that.

RYK · December 2, 2008 12:48PM

Ah, the good old days.

Unknown · December 2, 2008 1:01PM

This content has been removed.

MikeInFL · December 2, 2008 1:02PM

Man, they gotta color code these old drug-up threads. I get confused far too easily.

MrEureka · December 2, 2008 1:04PM

for anyone with a similar question, stop calling it an "industry".

I agree. It's only an "industry" when the market is going up.

RYK · December 2, 2008 1:08PM

Looks like GTG got his timing right. He rode the upswing and got out on top. He is probably living on his own private island with a supermodel (or two) while MrEureka et al are slaving away, working for dog food.

Frankcoins · December 2, 2008 1:13PM

If I hadn't worked as manager of an established coin shop for 10 years, (until the family wanted to sell the real estate) I would have been totally screwed trying to jump into the business with only my collector experience. And please don't call it an "industry"

Frankcoins · December 2, 2008 1:21PM

Wish they would lock the threads after 90 days...so what became of the guy? Looks like he was 17 in 2004

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Im Joining The Coin Dealing Industry --- Any Suggestions

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