And do you mind enlighten the rest of us?It is well known mate just not in your native language
And do you mind enlighten the rest of us?It is well known mate just not in your native language
Sure although the OP has already done that- it's Joint Venture.And do you mind enlighten the rest of us?
It could also be junior varsity, I guess it depends on your perspective. Since we have an international representation here on the forum it's best spelled out.Sure although the OP has already done that- it's Joint Venture.
Most people who sell scrap jewelry by the piece aren't repeat customers, so likely, they do not know who to call to get a fair shake. That's where a good advertising blitz may be effective, or a catchy name to point out that your transaction can be fast and honest and risk free.Has anyone else got anymore cool suggestions here like the video link, and how I can differentiate myself from the competition?
Interesting stuff and exactly what I am trying to do differently. I came across this funny mini doc about the Toronto cash for gold tycoon which is funny, he obviusly made a fortune out of itHere is a video exposing cash for gold's scam. inside edition video
They had a time limit on how long the customer had to accept or reject the offer. If you missed the deadline, all done with snail mail, they paid you what they offered. They got snagged by posting the mailings but not putting them in the mail for delivery until it was too late.
Hi all
I’m still working on this and am deeper into it. I notice that some of the big gold buyers in the UK (pawnshop types) are all doing rather well - see attached from HT Pawnbrokers who gross profit is £160m a year - their scrap gold part of the business accounts for nearly £9m of that, and they note a 20% profit margin in their accounts. So does that mean they are essentially making 20% margin on their scrap gold spread to customers? That would mean selling at 98.5-99% to a refiner and then giving roughly 80% off fixed to the customer which seems extremely predatory. The issue is working off 5-10% isn’t really viable as a business model unless very big volume and to start I don’t see how the volume could be so big.
Is there anyone in this forum who has a C4G business that could spare me some time to chat?
Well their company audited accounts which they file in the UK for the HMRC (our IRS) outline exactly where the profit for each sector of their business, the above exert is from the scrap gold buying department - so £9m GP which has a 20% margin built in. Pretty good business lol.Much of the profit for the pawnbrokers may well be against unredeemed pieces which I’m sure they will leave a decent margin to cover any downwards movements in the gold price plus perhaps some pieces are sold as items rather than scrap which will boost their margins.
I mean the top top payers in the country I’m in pay 90-93% (and I don’t really know how they are doing this) - there is no way they are getting more than 98.5% from the refiner (they aren’t refiners themselves) or they may have other use cases for the gold, I.e jewelry manufacturer etc. Buying at 95% and making (or selling for 97-98% to refiner) and making 2-3% before marketing costs/operating costs is an impossible business model and I wouldn’t entertain even thinking about it. But I’m sure it’s ultra competitive unless you pick and choose who you buy from if they don’t want your prices then you don’t buy it. If there’s 10-20% margin it’s worth exploring.If you want to buy in volume you need to offer really top prices for the scrap at least 95% of spot for gold in my opinion especially if you are going to advertise to buy on your website as many buyers are already in that space.
I’m dubious that they get a straight 20% margin on buying in gold scrap but as the market price has risen over the last few years it’s possible some of that margin comes from that, I also suspect that if items aren’t redeemed and have no value but scrap then those pieces may end up in the scrap department.
A couple of the major refiners here in the UK, yes this 97% is based on beginner volume, larger volume would be 98.5-99%, so that would be worked towards. Nobody is giving more than 97-98 from the get go. But tbh, I’m not sure i want to get involved in a business that relies on a 1-2% spread to make or break you. Hence my constant back and forth with this :/ one minute I love it and the next I wouldn’t touch it (depending on what I’m reading/research). I’m usually very quick at setting things up and have sold an online business recently so this is me on the fence and im glad I’ve found this forum to learn more before I dive in.Who are you getting rates of 97-98% from? What are the quantities you were quoted on and what were the terms? Interest on advances, minimum payable quantities, lot charges, etc. A lot of the major refiners in the US are offering in excess of 99.5% and a good number of them are owned by European companies. After all of the add on charges we can compare apples to apples to see what you can really do.
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