How to start a business making souvenir coins?

Choosing the right format

It’s quite easy to start the production of souvenir coins as a business, since you don’t have to take out a bank loan or save your salary for a long time to open your own business. But you must immediately choose the appropriate format. In this case, you can work according to the following schemes:

1. Independent organization . But here you will have to invent everything and develop it from scratch without anyone’s help. But the costs will only be associated with the purchase of raw materials and equipment.
2. Franchise work . The point is to buy a ready-made package for starting your own business. This path is much easier and allows you to avoid common mistakes. A more experienced franchisor gives advice and helps resolve serious coins. A ready-made package for starting today can be purchased from two well-known in Russia, the Siberian Mint. This option will require payment of a lump sum fee, but the businessman will know exactly where to start his activities in the chosen field.

It will not be possible to do without registering your own enterprise. Experienced businessmen advise opening an individual entrepreneur and choosing UTII as a form of taxation. Due to the small areas of places for sale, the tax will be small.

Capital expenditures

The sale of equipment and raw materials for the production of coins in Russia involves a somewhat complete set of equipment, depending on the diameter of the mold, it costs from 48 to 54 thousand rubles.

The set of equipment for cold minting of coins includes:

• Hand press - 1 pc.
• Embossing stamp - 2 pcs. (design at the request of the customer)
• Hammer - 1 pc.
• Consumables (400 coin blanks)

Production technology

The process of producing a souvenir coin is quite simple. A coin blank is placed in the minting die, after which the stamp is installed on the press, a hammer blow is applied to the form and the coin is ready. On average, the time to produce one coin is 2-3 minutes.

Sales markets

The optimal place to start activities is a recreation park due to the large number of vacationers and children.

Equipment for minting souvenir coins

To make coins you will need special equipment. You can buy ready-made or order from the manufacturer. To work you will need the following set of tools:

• anvil;
• small press (for starters, you can limit yourself to a manual model);
• hammer;
• stamps (they are also called cliches) - it is better to buy at least 4-5 pieces, since it is the variety of stamps that will allow you to create coins with different designs and technical performance;
• blanks for coins (blanks made of copper, brass and aluminum are in great demand; more expensive coins are made from gold and silver).

Coinage from origins to modern production

However, the people did not like copper coins at all, and in 1662 a “copper riot” broke out in Moscow, which greatly frightened the copper coins and were swept aside.

Only half a century later, under Peter 1, the minting of copper coins was resumed. Under Peter 1, the minting of silver coins (as well as gold coins) was already carried out with various devices and machines, but still the process was not yet automated. Minting was cyclical in nature - the metal was sent by the treasurer to the mintmaster, who, in turn, upon completion of production, transferred the minted coins to the expenditure treasurer. A batch of silver of 120 poods was considered optimal. (about 7 tons) - this corresponded to one heat.

The production process is as follows - initially, the mintsproberer determined the content of alloy (copper impurities), for example, in silver. To do this, several technological tests were carried out during the melting process, as a result of which the alloy was brought to the required concentration in accordance with the standards. The molten metal was then poured into molds (special molds). The design of these devices has changed frequently over the years. Initially, these were horizontal baking sheets, but over time they turned into vertical split structures. So, the resulting sheets were rolled and rolled to achieve the required thickness. After rolling, the sheets went to cutting mills. The mills were usually driven by horsepower and sometimes by water power. Here coin blanks were cut out of them and underwent weight control, they were annealed and the surface was cleaned of burrs (tumbled in special drums), bleached, washed and dried. Light billets were sent for remelting, and heavy ones were brought to the required weight (for adjustment). Next, the edge was applied using gurtile equipment and then the blanks were sent for stamping and the minting of the already gurched coin was carried out). The embossing process was carried out with screw presses, which were operated by hand, using a special rocker arm, at the ends of which there were two weights. This method of minting coins was carried out until the 19th century; later the production of coins was automated. Coin circles were made even, coins began to have the same weight, and making coins became more difficult. Copy coins minted according to ancient ones in the online store are copies of coins and medals. Modern coin minting looks like a well-equipped technically and automated production.

The main volume of products is mon. yards is produced on coining machines (presses) using the cold stamping method. Cold stamping (minting) allows you to obtain coins from metal of complex shapes and outlines by pressure, as a result of which the metal is deformed using special tools. Compared to hot stamping, cold stamping has several advantages: there is no need to heat the metal, there is no oxidation and no scale is formed; the output after these coins have been minted is that they have low roughness and dimensional accuracy. Compared to cutting, the cold stamping process is much more convenient and practical: since there are no metal chips, consumption and labor costs in production are significantly reduced, and accordingly, labor productivity increases. At the same time, cold stamping strengthens the material and this allows you to use a much smaller volume of metal, making coins even lighter and more wear-resistant. Modern computer and other technologies (patination or artificial aging), silvering, blackening, gilding, vacuum plating, clearing, sandblasting, the use of enamels and other methods make it possible to obtain coins of the highest quality and realize any ideas of artists. With the availability of technical equipment and computer technology, coin minting by private workshops has also become significant. Copies of coins of simply amazing quality began to appear. Modern production facilities allow gilding and silver plating of coins, minting products combining various metals and alloys. Mints also use high technology (latent image, which is used, for example, on modern 10 rubles). Modern mints also produce PROOF coins, and these are the highest quality coins with a mirror field and a matte image. It is important for PROOF quality products to avoid damage, so all such coins are packaged in a special capsule. There is also ANTI PROOF quality. Coins of this quality have a matte surface, while the raised relief is glossy. Now almost every person who is passionate about numismatics can, without much expense, collect an amazing collection of ancient coins in copies and study beautiful works of antiquity using their own coins as examples. Collect a collection of numismatic masterpieces

Make high quality coins to order

Sales of finished products

Entrepreneurs may ask the question: is it profitable or not to make coins? This question is individual. Everything will depend on the correct choice of clients and methods of attraction. You can target one or more of the following groups:

• tourists, city guests (suitable for resort and historical cities, but such a business will be seasonal);
• wholesale customers who want to make coins for any memorable events, for example, an anniversary of an organization, a wedding (but in this case it is better to use the services of an advertising agency, it will help attract such clients);
• owners of large hotels, entertainment parks and centers, restaurants, zoos and dolphinariums, circuses (in this case, the buyers themselves can mint coins for themselves);
• advertising agencies (advertising coins influence potential clients much more than ordinary leaflets; it’s even a pity to throw away such souvenirs as unnecessary);
• large companies wishing to produce coins associated with their companies (they are made for presentation at presentations, exhibitions, and corporate events).

It is important not only to choose the right clients for whom coins will be produced, but also the location, especially if you want to work with ordinary citizens and not with the business sector. In this case, it is better to place the device in parks and entertainment centers.

Business expansion

Making coins on the street is a seasonal business. If an entrepreneur wants to increase the profitability of his own business, he should consider moving to a shopping or entertainment center in the city for the period from October to May. Additionally, you can engage in the following types of business:

• production of commemorative coins with landmarks and their sale through city souvenir shops or the Rospechat trading network;
• installation of a vending machine for minting coins (in this case there is no need to maintain the equipment, and interested people will independently make coins according to the instructions located on the machine) - but in this case it is important to have a fairly wide base of templates in order to attract as many customers as possible;
• production of commemorative badges;
• making nesting dolls

Improved mintage coins

The only manual production left is the production of special collection coins using improved technology.
These include: Proof quality gold coin

proof – coins with a matte pattern and a mirror field. The stamps are treated with acid to give a finely roughened effect, then the protruding parts are polished to a mirror finish. The metal circles are made by casting, rather than knocking out from the tape, then they are stamped with an edge and edging, after which they are also polished. All of them undergo careful control. Minting is done with a double strike, then the coin is manually removed and placed in a capsule (in Soviet times and in the 90s they were often placed in a plastic seal). The process requires ideal cleanliness and accuracy, since the ingress of dust can reduce the category of the coin to prooflike. The polishing of the stamp has to be repeated after several dozen coins. A similar technology existed back in the imperial period, but polished stamps, after wear, could be used for minting ordinary coins;

UNC investment coin

prooflike (prooflike) - production occurs in the same way as proof, but due to too large blanks (for example, for kilogram silver and gold coins), the smallest defects, scratches or dust remain. BU (Brilliant Uncirculated) - coins have a slightly glossy surface, but without a mirror reflection and without a matte pattern. Issued with specially prepared stamps without polishing. Manufacturing defects are not allowed. Improved UNC - issued with regular stamps, but with careful production control to eliminate defects and scratches. The coin is removed from the machine manually and placed in a capsule or seal (in the USSR it was sometimes placed in paper envelopes).

Article last modified: 01/28/2018

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Calculation of financial results

It is also very important for a potential businessman how profitable the coin business is. Calculations must be made based on the selected work format. For example, if a minting machine were located in a park with a foot traffic of 35,000 people, about 2,600 souvenir coins could be sold per season.

The equipment will cost 50–60 thousand rubles, including the cost of blanks for coins. But you need to remember that templates should be updated over time in order to attract new and already loyal customers.

The average cost of one coin is 150 rubles. For 2600 coins you can get 390,000 rubles. If we take into account that this profit will be received in 4 months (from May to August), then the monthly income will be 97,500 rubles. It turns out that the payback with proper organization of work is only a few weeks. The profitability of such a business is about 30%. The net profit for the month will be 30–35 thousand rubles. But this is not the maximum value; everything will depend on individual parameters (location, size of the city, number of tourists).

Making souvenir coins is a profitable and fairly simple business that even those who have never been involved in entrepreneurship can try themselves in.

Evolution of coin minting machines

OUR SPECIAL PROMOTIONS and DISCOUNTS!!! CLICK TO VIEW

With the support of the Real World Business Incubator, we received a non-refundable subsidy for organizing the production of coin minting equipment from the Department of Youth Entrepreneurship Development, which assessed this business as creating

• opportunity for young entrepreneurs to easily organize their business coin attraction
• jobs for youth
• an opportunity for young entrepreneurs to receive high income from the coin business and attraction with minimal investment

During the competitive selection, it played a big role that, in addition to simply selling equipment, we provide you with information support. Download contracts with the Customer, hired employee, magazine layout for street outlets, business card layout; You can study information about the legal features of organizing a business in the section SUPPORT FOR COIN MINTING .

There you can read about the SITE FOR ORGANIZING A COIN MINTING BUSINESS. It is needed to increase the efficiency of your work and attract corporate clients. At your request, we can provide and initially fill out a website template for FREE.

For your convenience, we have created profitable starter packages:

STARTER PACKAGE OF EQUIPMENT FOR MINTING COINS D-25mm - 36,500 rubles

STARTER PACKAGE OF EQUIPMENT FOR MINTING COINS D-30mm - 43,600 rubles

Machine for minting coins - 12,000 rubles/piece

Possible questions and answers on cliches HERE

1 cliche 25mm (to make a souvenir coin you need 2 cliches - heads and tails) - 2,600 rubles/piece (subject to providing your individual sketch in Corel format)

1 cliche 30mm (to make a souvenir coin you need 2 cliches - heads and tails) - 3,600 rubles/piece (subject to providing your individual sketch in Corel format)

Design 1 cliche - 600 - 1000 rubles (depending on complexity)

Capsules for coins 25mm - 30 rubles/piece

Block (stump), anvil (30kg), sledgehammer, blacksmith suit for minting coins - see RECOMMENDATIONS EQUIPMENT FOR MINSKING COINS

The price depends on the volume of purchase. Our full price list based on quantity can be found in the COIN MINTING SUPPORT

*price may vary depending on the current exchange rate

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From this article you will learn how, with 50,000 rubles of initial capital, you can open your own business producing souvenir coins.