Coin Show Question

I am curious about how most dealers make a profit at a coin show. I
mean, many of them have airfare, hotel, rental car, not to mention
table fees. I see many dealers sitting at their table with what appears
to be little or no activity. Am I missing something? Do most dealers
come away from a show with a profit? Do most shows only benefit dealers
in from the dealer to dealer business they do?

Along these same thought, is it hard for someone to get into the
business transitioning from a hobby? I imagine it to be a bumpy road.

Yo Momma's Boyfriend wrote:
I am curious about how most dealers make a profit at a coin show. I
mean, many of them have airfare, hotel, rental car, not to mention
table fees.


They obviously pay much less for what they buy than when the sell it.
It helps when the sellers know little or nothing about what it is they
are selling or the market dynamics. I've seen a dealer offer someone
20% below melt for unc double eagles. You can't expect to get full
retail price for your coins now can you.

I see many dealers sitting at their table with what appears
to be little or no activity. Am I missing something?

Have you ever watched a spider operate ?

Do most dealers
come away from a show with a profit?

I wouldn't know. They usually don't share their accounting with me,
but, I'm sure that if it wasn't profitable they wouldn't be doing it.

Do most shows only benefit dealers
in from the dealer to dealer business they do?

This is where they get the coins that they want for personal
collections before any non dealers get into the bourse, move excess
inventory in bulk, and pick up stuff for want lists so that it can be
marked up twice.

Along these same thought, is it hard for someone to get into the
business transitioning from a hobby?

Not hard at all. you pay your money and you takes your chances.

I imagine it to be a bumpy road.

I've been down that road. It is indeed very bumpy for the
inexperienced and underfunded.

Along these same thought, is it hard for someone to get into the
business transitioning from a hobby? I imagine it to be a bumpy road.


Not as difficult as it used to be depending of course on what your
business plan is.

In the old days many people got started with price lists and mail bids
sent by snail mail.
One of the biggest problems was getting a mailing list together along
with the expenses
of sending out lists, adding and dropping people etc.

Now, practically anyone can jump into the business via Ebay and have
instant access
to thousands of potential customers at a very low cost.


Many coin shows are oriented to the dealer to dealer transactions
during table set up
time and dealing with the public as an afterthought. We have of course
all
heard of the complaints about dealer attitudes at shows in that regard.


During the 1980s there was for a time dealer to dealer only shows where
dealers flew
into a specific airport, met in a designated room, did their busines
transactions and then
left with no public contact. These were never advertised to the
public and not many
people heard of it. Maybe it would make sense for dealers to do these
kinds of shows
again.

I just wonder, with the eBay and all, how dealers can make much of a
profit using traditional selling techniques. (unless you happen to be a
big name auction house selling ultra collections). As a collector, I
know that I am more likely to find the coin I want at the price I want
on eBay. I have rarely bought a coin on eBay that didn't meet my
expections for the price paid. I enjoy going to coin shows for the
atmosphere, but rarely am able to get good deals. (although sometimes I
am pleasantly surprised).

I am always amazed at the dealer with the energy to haul in a junk box
of "10 for a dollar" coins. Can imagine the profit to effort ratio
being high in that instance (though I do appreciate the opportunity to
dig in, though my hands are usually black after the exercise).

Some dealers have given up or cut back on doing the coin show circuit
due to
more money making opportunities on Ebay and the costs of traveling to
shows.

With the price of gas and related expenses this trend will probably
continue.

"Yo Momma's Boyfriend" wrote in message
ups.com...
I am curious about how most dealers make a profit at a coin show. I
mean, many of them have airfare, hotel, rental car, not to mention
table fees. I see many dealers sitting at their table with what appears
to be little or no activity. Am I missing something? Do most dealers
come away from a show with a profit? Do most shows only benefit dealers
in from the dealer to dealer business they do?

Along these same thought, is it hard for someone to get into the
business transitioning from a hobby? I imagine it to be a bumpy road.

When I have read the coin show results in hobby papers, there success of the
coin show is generally divided into two categories by the dealers. It is
not unusual to see a comment along the lines, " Yes, we had a good show.
Retail sales were on the slow side, but we were able to restock our
inventory with some quality stuff."

OTOH, I went to the St. Louis Silver Dollar show last October and, in about
10 minutes time, dropped almost $1,400 at one dealer's table buying two
coins and I think I got his bottom dollar, for that moment in time anyway.
I wouldn't think it out of line if the dealer had $1,000 or a little less in
the two coins. Maybe he had $1,200 in them. Whatever the margin, a chunk
of his show overhead was taken care of in about ten minutes.

Bill