How Successful are Most Stamp Dealers

Based on American Stamp Dealer Association membership, APS dealer members and a survey of the larger EBay and Internet dealers, I would estimate that there are less than 2500 full time stamp dealers in the United States. Many collectors sell their duplicates, some build inventory towards eventually dealing full time, and there are many part timers who supplement their income and hobby with part time stamp selling. But full time philatelic professionals who make their entire livings from selling stamps and only stamps are a rare commodity. This is because it is very difficult for most dealers to make much of a living from stamps. Let’s look at Hy Pothetical’s business, a dealer of my acquaintance. Hy does $30,000 business a month-a number most dealers wistfully aspire to. Hy has 30% margins on what he buys so his $30,000 in business has a cost of sales of $20,000. He sells on Ebay and the fees and credit card fees run about 12% of sales (about $3600), less office rent, an employee part time, and the amount of material he doesn’t sell and has to mark down. Hy told me that last year his income was less that $30,000 on volume of nearly half a million. This doesn’t sound like something most of us would want to quit our day job for. There are a small number of very successful stamp dealers who by combining great skill, hard work, good ethics and luck have made large successful businesses. But even that has its limits. When was the last time you heard of a stamp dealer going public or being bought as part of larger business.