Rare Coins and Currency Running Costs: $28k Monthly Fixed;

Rare Coins and Currency Running Costs

Expect fixed monthly operating costs of $28,075 in 2026, primarily driven by specialized payroll and secure storage needs This figure covers essential overhead like office rent, specialized labor, and high-security vaulting On top of this, you must budget for variable costs, which total 195% of revenue, covering inventory acquisition (100%), grading fees (20%), and marketing (50%) The high cost structure means achieving profitability takes time your financial model shows you need 25 months to reach breakeven (January 2028) To sustain operations until then, you must maintain a cash buffer, with minimum required cash projected at $161,000 by December 2027 This guide breaks down the seven core running costs so you can manage cash flow precisely

7 Operational Expenses to Run Rare Coins and Currency

#	Operating Expense	Expense Category	Description	Min Monthly Amount	Max Monthly Amount
1	Specialized Payroll	Personnel	In 2026, payroll totals $19,375 monthly, covering 25 FTEs including the Founder/CEO ($120,000 annual) and specialized numismatists defintely.	$19,375	$19,375
2	Inventory & Grading	Variable/COGS	Inventory acquisition is the largest variable cost at 100% of revenue, directly impacting gross margin, plus 20% for authentication and grading fees.	$0	$0
3	Secure Vaulting	Fixed/Overhead	Maintaining high-value assets requires $1,300 monthly for secure vaulting and storage fees, a non-negotiable fixed overhead cost.	$1,300	$1,300
4	Office & Utilities	Fixed/Overhead	Office rent is a fixed $2,200 monthly expense, plus $350 for utilities and internet, totaling $2,550 for operational space.	$2,550	$2,550
5	Insurance	Fixed/Overhead	Professional insurance premiums, essential for covering high-value inventory, cost a fixed $950 per month.	$950	$950
6	Tech Stack	Fixed/Overhead	E-commerce platform and CRM subscriptions cost $1,800 monthly, plus $500 for website maintenance and hosting, totaling $2,300.	$2,300	$2,300
7	Marketing & Fees	Variable	Variable marketing and advertising (performance) is 50% of revenue, plus payment processing fees consume another 25% of every transaction.	$0	$0
Total	All Operating Expenses	All Operating Expenses		$26,475	$26,475

What is the total monthly running cost budget needed for the first 12 months?

The total cash requirement for the Rare Coins and Currency business over the first 12 months centers on covering the projected $245,000 Year 1 EBITDA loss while managing a fixed monthly overhead of $28,075.

Fixed Cost Baseline

Monthly fixed operating costs are set at $28,075, which you must cover regardless of sales volume.
Variable costs are extremely high, estimated at 195% of sales, meaning you lose 95 cents for every dollar you bring in.
This structure means you defintely need significant startup capital to bridge the gap; you can read more about owner earnings in a related piece on How Much Does The Owner Make From Rare Coins And Currency Business?
The initial cash buffer must support this fixed burn rate until sales scale significantly past the current projection.

Total Year 1 Cash Need

The Year 1 projected EBITDA loss totals -$245,000, which is the minimum cash hole you must fill.
If you only cover that projected loss, you still need $28,075 per month for overhead, totaling $336,900 in fixed costs over 12 months.
The required capital must cover the $245,000 loss plus the fixed overhead for your chosen runway period.
This high variable cost ratio (195% of sales) means sales volume must explode just to approach breakeven, so plan your cash reserve accordingly.

Which cost categories represent the largest recurring financial risks?

The largest recurring financial risk for Rare Coins and Currency is inventory acquisition, which requires 100% of revenue immediately, making it a far larger cash drain than the $19,375 monthly payroll expense. Figuring out how fast you turn that inventory is key to managing working capital, which ties directly into What Is The Current Customer Engagement Level For Rare Coins And Currency?. The fixed security cost of $1,300 per month is small by comparison, but it must be covered regardless of sales volume; I think this is a defintely solvable problem if you manage the float.

Inventory Cash Commitment

Inventory acquisition demands 100% of revenue before you realize any margin.
Payroll is a predictable fixed drain of $19,375 per month.
If your average gross margin is only 20%, inventory costs consume 80% of the sale price immediately.
You need substantial cash reserves to cover inventory purchases before customer payments clear.

Fixed Overhead Scrutiny

Fixed vaulting and security costs run $1,300 monthly.
This fixed overhead amounts to $15,600 annually.
You must generate enough gross profit to cover this $1,300 easily every month just to break even on fixed costs.
If sales volume drops, this fixed cost rapidly becomes a major drag on profitability.

How much working capital is required to survive until cash flow breakeven?

You need to secure $161,000 in minimum cash balance financing by December 2027 to bridge the gap until the Rare Coins and Currency operation hits cash flow breakeven in January 2028, which is a 25-month runway. Honestly, understanding this runway is critical before you finalize your funding ask; Have You Considered Including Market Analysis For Rare Coins And Currency In Your Business Plan? If onboarding takes 14+ days, churn risk rises, so you need this buffer locked down.

Financing Gap Requirement

Minimum cash balance required is $161,000.
Financing must be secured by December 2027.
This covers 25 months of negative cash flow.
Breakeven is projected for January 2028.

Cash Flow Planning Levers

Focus on hitting $161k buffer target.
Model monthly cash burn rate precisely.
Accelerate high-margin sales volume.
Defintely track cumulative cash position monthly.

What specific costs can be cut if revenue targets are missed by 30%?

If Rare Coins and Currency misses revenue targets by 30%, immediate cuts focus on the largest variable expense—performance marketing—and non-essential overhead like travel, while carefully evaluating the 25 planned FTEs for 2026. Honestly, understanding the true market potential, which you can explore further by asking Have You Considered Including Market Analysis For Rare Coins And Currency In Your Business Plan?, dictates how deep these cuts must go.

Pruning Variable Spending

Performance marketing is the single largest flexible cost, budgeted at 50% of revenue.
If revenue drops 30%, marketing spend must drop by a similar percentage to protect contribution margin.
Stop all non-essential travel immediately; this overhead is fixed at $750 per month.
This is defintely the fastest way to preserve cash flow when sales slow down.

Assessing Fixed Payroll Commitments

The planned 25 FTEs for 2026 represent significant fixed payroll exposure.
Payroll is sticky; cutting marketing saves cash faster than reducing headcount.
Review all open roles and delay hiring for non-critical positions until revenue hits 80% of target.
If the shortfall continues past the first quarter, you must re-evaluate the 2026 staffing plan.

Key Takeaways

The baseline fixed monthly operating cost for the rare coins and currency business starts at a substantial $28,075 in 2026, driven heavily by specialized payroll.
Variable costs are extremely high, consuming 195% of revenue through inventory acquisition (100%), grading (20%), marketing (50%), and payment processing (25%).
Due to this high cost structure, the financial model projects that the business will require 25 months to reach cash flow breakeven in January 2028.
Founders must secure a minimum cash buffer of $161,000 by December 2027 to sustain operations until the business stabilizes financially.

Running Cost 1 : Specialized Payroll & Wages

Payroll Commitment

Your 2026 projection shows a fixed payroll commitment of $19,375 monthly to support 25 full-time employees (FTEs). This budget must cover the Founder/CEO at $120,000 annually plus the specialized numismatists needed for appraisal and trust. That’s a significant fixed cost base to cover before inventory sales begin.

Staffing Inputs

This $19,375 monthly payroll covers 25 FTEs in 2026. To validate this, you need the Founder/CEO’s $120,000 annual salary broken down monthly ($10,000). The remaining $9,375 must cover the 24 specialized numismatists. You must confirm if this total includes employer taxes and benefits; defintely check that assumption.

Managing Wage Costs

Since numismatists are core to your value proposition, focus on efficiency, not just cuts. Use fractional experts for non-core appraisal tasks. Keep the 25 FTE count flexible until transaction volume supports the fixed commitment.

Convert 5 FTEs to contractor status initially.
Benchmark numismatist loaded cost against industry peers.
Ensure CEO salary isn't subsidized by owner draws later.

Payroll Risk Check

This $19,375 monthly expense is fixed overhead. If revenue stalls, this high FTE count quickly burns cash. You need at least $20,000 in monthly gross profit just to cover this single line item before accounting for inventory, rent, or marketing costs.

Running Cost 2 : Inventory Acquisition & COGS

Inventory Cost Dominance

Inventory acquisition is your single biggest drain, costing 100% of revenue just to buy the assets. Add the mandatory 20% for authentication and grading fees, and your gross margin is immediately negative. You’re starting 20% in the hole before paying staff or marketing.

COGS Calculation Inputs

For rare coins, COGS is the purchase price plus the cost to certify the item for sale. You need the exact unit cost for every coin acquired. Since acquisition is 100% of revenue, gross profit calculation requires careful tracking of the 20% grading fee per item sold. Here’s the quick math:

Acquisition cost per unit.
Grading fee per unit.
Target resale margin.

Managing Acquisition Costs

You can’t cut the 20% grading fee if you need certified authenticity for high-value sales. Focus instead on sourcing inventory below the expected market value. Negotiate bulk rates with grading services if volume scales up defintely. Speed in sourcing matters more than small price cuts.

Source inventory below spot price.
Negotiate volume discounts.
Improve sourcing velocity.

Margin Reality Check

Your total direct cost tied to sales volume is 120% of revenue (100% acquisition plus 20% fees). This means you need revenue growth far exceeding the 50% marketing spend just to cover the cost of the goods themselves. That’s tough sledding.

Running Cost 3 : Secure Storage & Vaulting

Vaulting is Fixed Overhead

For managing rare coins, you must budget $1,300 monthly for secure storage. This cost is fixed overhead, meaning it doesn't change with sales volume, so it directly pressures your operating margin until you scale revenue past it. Honestly, this is non-negotiable for asset protection.

Storage Cost Drivers

This $1,300 covers required security, insurance mandates, and environmental controls for high-value numismatic inventory. Since this is fixed, it must be covered before profit hits, regardless of how many coins you sell this month. It’s a baseline cost of doing business with tangible assets.

Monthly fee: $1,300.
Asset type: High-value collectibles.
Budget placement: Fixed overhead.

Controlling Vault Fees

You can't cut this fee without changing compliance or security standards, which risks your core value proposition. The only lever is increasing inventory turnover to absorb this fixed cost faster. Don't skimp here; cheap storage invites fraud or damage.

Negotiate based on asset volume.
Review insurance riders annually.
Avoid using personal storage options.

Break-Even Impact

If your total monthly fixed costs are, say, $25,000, this $1,300 storage fee represents about 5.2% of your baseline expenses. You need sales volume to cover this before you start paying specialized payroll or variable marketing costs. That’s a significant hurdle to clear every thirty days.

Running Cost 4 : Office Rent & Utilities

Fixed Space Cost

Your physical footprint costs a predictable $2,550 monthly. This covers rent and essential connectivity for operations. Since this is fixed overhead, managing revenue density is key to absorbing this cost efficiently.

Cost Components

This operational budget line item is strictly fixed overhead for your physical location. It combines the base lease payment with necessary services like power and data access. For Legacy Numismatics, this is a baseline expense regardless of sales volume.

Rent: $2,200 per month.
Utilities/Internet: $350 monthly allocation.
Total fixed space cost: $2,550.

Managing Overhead

Since this cost is fixed, you cannot cut it month-to-month. Focus on maximizing utilization of the space you pay for; perhaps consolidating the appraisal team versus maintaining separate offices. You can defintely avoid signing long leases early on until revenue stabilizes.

Negotiate lease terms carefully.
Bundle internet/utility providers if possible.
Ensure space supports 25 FTEs efficiently.

Overhead Context

Compared to payroll ($19,375/month in 2026) and insurance ($950/month), office costs are moderate overhead. However, this $2,550 must be covered before inventory sales generate margin. It’s a critical baseline expense to track against your gross profit dollar flow.

Running Cost 5 : Insurance & Risk Management

Fixed Risk Cost

For this rare coin business, fixed insurance costs are $950 monthly. This premium is non-negotiable because it protects your primary asset: the high-value inventory you buy and sell. Missing this coverage exposes the entire operation to catastrophic loss.

Insurance Inputs

This $950 monthly premium covers the risk associated with holding valuable numismatic assets. It’s a fixed overhead, not tied to sales volume. You need quotes based on the aggregate appraised value of your vault holdings to set this number accurately. If your inventory value jumps significantly, premiums will defintely rise next renewal cycle.

Coverage tied to appraised inventory value
Fixed monthly overhead
Renewal based on asset exposure

Cost Control Tactics

Managing this fixed cost means optimizing asset storage protocols. High-security vaulting protocols, like the $1,300 monthly secure storage fee, directly influence your insurance rate. Avoid over-insuring low-value inventory; focus coverage strictly on certified, high-appraisal items. Keep inventory records clean to prevent premium creep.

Align insurance with vault limits
Audit inventory valuations yearly
Ensure proper security documentation

Operational Risk Link

Risk management here extends beyond just the premium; it involves operational discipline. If authentication or grading processes fail, the insurance policy might deny a claim due to poor chain of custody. Your real risk is not paying $950, but having a claim invalidated by operational sloppiness.

Running Cost 6 : Technology Stack & Hosting

Tech Stack Fixed Cost

Your technology stack and hosting create a fixed monthly overhead of $2,300. This covers the essential e-commerce platform, CRM systems, and site upkeep necessary to run the marketplace.

Cost Breakdown

This $2,300 monthly expense is fixed overhead, unlike your variable inventory costs. The $1,800 covers essential software licenses—the e-commerce engine and the customer relationship management (CRM) system. The remaining $500 covers basic website hosting and maintenance fees needed to keep the platform running for buyers.

Platform/CRM licenses: $1,800 monthly.
Hosting and maintenance: $500 monthly.
This cost is predictable, unlike marketing fees.

Managing Tech Spend

If you're just starting, avoid paying for enterprise-level CRM features you won't use for a year or two; that just inflates fixed costs. Honestly, you can often find better rates by bundling hosting and maintenance, but don't lock in if you plan major platform migrations soon. Keep your tech spend lean.

Audit CRM seats quarterly for waste.
Check for annual hosting discounts now.
Keep maintenance scope focused on uptime.

Fixed Cost Floor

This $2,300 tech expense is a fixed floor you must cover every month, regardless of coin sales volume. It's a relatively small component compared to the $19,375 monthly payroll, but it's non-negotiable infrastructure for your digital storefront.

Running Cost 7 : Marketing & Payment Fees

Revenue Drain Check

Your sales engine costs 75 cents of every dollar earned before you even touch inventory costs. Performance marketing eats 50% of revenue, and payment processors take another 25% of the transaction value. This structure demands a massive markup on the coins you sell just to cover acquisition costs.

Inputs for 75% Cost

This 75% cost bucket covers customer acquisition and transaction overhead. Marketing spend scales directly with sales volume; if revenue doubles, acquisition costs jump by 50% of that new revenue. You need crystal clear tracking on Customer Acquisition Cost (CAC) versus the high Average Order Value (AOV) of collectibles. Payment fees are defintely calculated on the gross sale.

Managing Acquisition Drag

Since marketing is 50% of gross revenue, optimizing ad spend efficiency is the primary lever here. Focus on driving repeat business from existing collectors, as their CAC is near zero. You must ensure your retail margin significantly exceeds the 75% taken by marketing and processing fees combined.

The Real Margin Picture

With 75% gone to sales overhead, your ability to absorb inventory costs (100% of revenue) and authentication fees (another 20%) is severely limited. Your markup must cover 195% of COGS just to break even on cash flow before factoring in fixed overhead like payroll and rent.