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Gold Buying Business

Discussion in 'Offline Marketing' started by flexpaydude, Jan 25, 2010.

  1. flexpaydude

    flexpaydude Regular Member

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    I'm thinking of getting in on this "we buy gold" wave.

    The price of gold remains strong, and consumers are open to the prospect of selling their gold more than ever due to the cash4gold type companies advertising all over the place (which consequently are completely taking people's heads off with grossly low payouts).

    Of course, there is also the "gold buying party" craze that's been around for a year or two now. And many of those have lower payouts, too.

    I'm thinking of taking a little bit different slant....mobile gold buying. Meaning, we buy gold, and we come to you at your home or office (or local starbucks, wherever) to test/measure and purchase gold on the spot. "WE BUY GOLD - WE COME TO YOU"

    I can sell gold directly to the refiner, and not have any middle men, so theoretically, I can offer higher payouts and the convenience of a housecall gold buying service.

    I can definitely be a more competitive than the local pawnshop and even the local jewelry store, and still make some pretty decent money.

    I've crunched the numbers, and this can definitely work. I'd focus locally at first, and offer the service in my small town. Of course, I've considered the cons, namely security (handling cash, etc.).

    Main question is, besides letting all my family/friends know, magnetic car signs, advertising on craigslist, advertising in my local newspaper, bandit signs, etc., how else could I get the word out?
     
  2. onetoo3com

    onetoo3com Registered Member

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    Flex, I have been looking at this also, the only thing that bothers me is, distance and the content. By the time you have gone above 10 miles and the gold weighs hardly anything then your wasting your time.

    Go to car boot sales really early, you could get to 3 in if your quick enough on a Sunday.

    Get a couple of news papers ( while your waiting) and sit near the Guy who has the "Stand" in the Shopping Prescient. When his clients have left after getting their ripped off price, follow them and put your card in their hand.
    They'll be glad you spoke to them.
     
  3. sparky123

    sparky123 Registered Member

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    Do it locally first and see how it goes. If there is a demand as you predicted, it'll go viral for sure. My main question is how will you know if the price of gold will not fall? It is like playing the stock market and what you're planning to do is to buy up a large sum of stock certificates, if the price dips a little and with a large quantity......reminds me of walls street.


    Secondly, how do you know the house/place they ask you to pick up/exchange will not rob you? Afterall, you're telling them no need to rob the bank because we're coming to you instead.

    Thirdly, if you are going to issue a check, many people will be suspicious if it'll bounce or not since they already handed you their gold.

    Lastly, my family did gold refining, so it doesn't matter who you sell the gold to, the gold refiner, the broker (slightly higher priced) or regular consumer, the price around the world remains the same in value. The price of the GEM in the gold changes without a fixed price setting.

    I see many cons in this model, unless there are something unique I didn't see.
     
  4. flexpaydude

    flexpaydude Regular Member

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    Good points you mention. In terms of pricing, yes gold does fluctuate daily, but not by a huge amount. You can track daily spot prices easily. As a gold buyer, you want to purchase at steep discounts anyway. Those cash4gold companies only give 15%-30%, pawnshops/jewelers typically only 40%-50% and gold parties maybe 60% at best. I could easily provide 50% - 55% payout, provide the convenience, and still make good money.

    Yes, security is a major concern for me and my reps, and that is the biggest hurdle I'm considering now. I've also considered going the starbucks route. Meeting them in a public place to do the transaction. Also, only daytime hours for residential appointments, and doing a quick online background check ahead of time (beenverified.com). Also, scanning a copy of drivers license, and even doing a thumbprint scan (there's a cool bogus app on iphone that looks like you're scanning a real thumbprint). Letting them know there will be 2 reps present at all times, etc.

    There are a lot of precautions that can be taken, but you're right, it can be dangerous. Using common sense is the best thing I think.

    I think starting locally within my little town is the best bet....also letting family/friends know.

    The gold buying party may be the best way around this:

    1) Safety in a crowd and everyone knows each other
    2) People will definitely accept a check
    3) Let other people market for you

    Anyway, still lots to consider....but there is money to be made
     
  5. khirad

    khirad BANNED BANNED

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    Advertise on Facebook ( target your city )

    Send messages to ppl on facebook from your city

    Open a Page related to gold on facebook
     
  6. Cookiehunter

    Cookiehunter Registered Member

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    Maybe you guys have it already, but think in the "go for gold" report of David Anderson are some topics how to search used gold /2nd hand gold...

    Code:
    3w david-recommends com/gold/Go%20for%20Gold.pdf
    A place where you should spread your flyer is definetly the caring- and housing-facilities for elderly people (..don't know the name in english,sorry)
     
  7. theconfidenceman

    theconfidenceman Regular Member

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    I think you might be on to something, but the "we come to you" will add cost to your operation and put a cap on earnings; due to distance involved some areas may be costly and not feasilble to get to, plus you can only cover so many appts in a day/week/month.

    Why not try the same as your competitors but offer better payouts, and maybe as USP such as -- guaranteed highest rates or you keep our money and your gold - and free shipping both ways -- and -- higest payout plus $300 in free groceries/gas/air fare...

    the thing about mailing in the gold is that the customer has all the investment, hes mailed his thing in, is waiting and hoping and desperate, all that built up emotion, and my guess is they just send out a check so less likely for him to say -- no thanks ill keep my gold.

    what happens if you drive 40miles, pay tols and parking and they guy shows up late, and they says... "nah man.. ill keep my gold"

    things to think about.

    with the by mail model you can have affiliates/cpas offering high payouts and drive tons of traffic and sales to you.
     
  8. sparky123

    sparky123 Registered Member

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    Where do you guys sell the gold to? I mean if a customer is willing to sell it to your at 50% and in turn who do you sell the gold back to and at what percentage?

    How do you guys come up with the capital to pay for all those people exchange their golds?
     
  9. speakout

    speakout Registered Member

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    this sounds good but where do you get the car boot sales, it havs been years since I have been to one.
     
  10. robertodelgato

    robertodelgato Regular Member

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    Security is not just one of your concerns...it is your PRIMARY concern if you're selling in the US.

    A lot of people here have been out of work for years. For them, things have gone beyond serious - a whole level of society now has 'nothing to lose'. Hell, 3 hots and a cot (jail) sounds like a vacation if you don't even have a car to live in.

    People are shooting other people while robbing coffee stands for $100, for god's sake.

    The minute you advertise and/or show up at a 'boot sale' - at least in the US and I understand the rest of the world is probably in the same shape or worse - you're going to be a target.

    You'll have gold AND cash with you!! (Trust me when I tell you no one is going to take a check for their gold.)


    Think about this: why do all the 100 or so companies now in the business only work through the mails? It's not only to broaden their reach, it's the security involved.

    Hey, just my cheerful $0.02!! :D
     
  11. mrsix

    mrsix Power Member

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    just bring a friend/guard with you and carry a gun (with the proper permits) and you're fine.
     
  12. Grandslam

    Grandslam Senior Member

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    LOL. Gold is not going lower anytime soon. As long as Bernake is printing, worrying about the price of gold going lower is not something to engage in. Printing money = gold to the moon.

    Gold has value. Stocks are only based on the management (or mismanagement thereof) of the company.
     
  13. yoyas

    yoyas Junior Member

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    On monday my new local store for trading gold will be opened. :D I am opening it in Spain. Gold is where the money now. People in crisis has to sell it. You can expect earning $9000 each month (free from expenses) and from the first month. The idea is opening a store and when you can afford it, open another and outsource the work. You only watch your stores and collect money.

    Here in Spain there are a lot of steps to open these kind of business, as jewelries, police has to give you their OK before opening and you need a lot of security in your store, else you cannot open: reinforced door, caja fuerte anclada en el suelo, lots of alarms and sensors... We needed 6 months to get everything appoved.

    My husband and me were thinking about going to customers house to get the gold too (with a plus cost), but we thought it was better to go there, and pick up the gold to our store, there we apply the acids to know the quality and we phone customer to let him know how much we will pay him. If he agree we transfer the money by wire, else we come back to their house with the gold back.

    Here in Spain we have to fax a photo of every jewel we buy, with the identity card or passport of the seller to the police.
     
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  14. Grandslam

    Grandslam Senior Member

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    Yoyas - You should really keep us updated on this. I'd love to follow your progress and learn something while I'm at it. How do you plan to advertise your store? Also, how much are you going to pay customers for every ounce they sell you? (of course some customers will sell less than an ounce to you at a time, but what is the going rate you pay per ounce?)
     
  15. yoyas

    yoyas Junior Member

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    I haven't planned anything yet. My husband learnt the bussiness from the owner of lots of these stores. The owner has a store in the street where I lived some months ago and he teached it to my husband, to a jewelry store owner and to the cafe owner when they drink cafe

    Too much information :tumblewee

    The owner of the jewelry has opened 4 or 5 gold trading stores. He has a lot of money so he pays clerks to get the permissions as soon as possible. That is why he has opened them already. So he is banking $45000 each month only from these stores.

    The cafeteria owner opened a store some months ago and now he is opening one. Police is giving him some problems with the security documents.

    So with these successful bussiness we came to leave to other town (Pamplona) in July, we got the store in September (in August people were to lazy to rent store and then they tell you the is crazy, too much lazy here) and now in January we are ready to open.

    We sell gold for $20000 to $23000 and we will buy it for $15k to $17k.

    I will keep worling in IM because now I am lucky with the offers I am running. The gold business is for my boy. Any way, that dark side inside me with SEO trends has told me to register a keyword rich domain and I have set the store information in Google Local. So now the store is the first thins you see when you write "compra venta oro" (buy and sell gold) :D

    I wanted to buy a domain like compra buyandsellgoldinmytown.com (in spanish) but since buyandsellgold.net (in spanish too) was waiting for me I have bought it with the idea of making a local directory of buy and selling gold stores. Competence for this keyword is very high in Adwords, let's see what can I do with organic results.

    I have just created a page in facebook as khirad has recommended. Tomorrow I will work in the new site and in the facebook page. I have to read a little bit more about it because I don't know anything about it.
     
  16. angelas111

    angelas111 Jr. VIP Jr. VIP Premium Member

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    i do this already. i normally buy at local auctions and resell on ebay. i tried putting a couple of ads on craigslist but did not get too much response from those. but i can pay double the pawn shops and still make good money. you just need a good gram scale and a good gold tester and be able to do math in your head.
     
  17. flexpaydude

    flexpaydude Regular Member

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    Are you buying jewelry and re-selling as jewelry on ebay? Or are you buying unwanted/scrap/old gold and selling to a refiner for the intrinsic value of the gold?

    What types of auctions do you go to? Just general household items auctions, or do you find specific jewelry auctions?

    What types of ads did you put on craigslist? WE BUY GOLD types of ads? I was thinking of doing this too, but didn't think it would bring a great response. I also thought about harvesting the jewelry for sale section and spamming them.
     
  18. jaguarslug

    jaguarslug BANNED BANNED

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    This will be something serious biz.. Make sure you plan everything.. Golds aren't just toys... They're big toys. And are you looking for a gold bar purchase?
     
  19. Cookiehunter

    Cookiehunter Registered Member

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    This is getting interesting with so much Blackhats here having an offline "Goldhat"-Biz running.

    Just thinking again about the whole process, it must be the "selling" of the cheaply bought gold which is essential; and for doing this you need to have the contact first...

    Otherwise everyone could sell their gold to these "end-buyers" for the same higher price, so there must be hurdle, like "business-to-business-only"?

    Or is it a matter of volume to be able to sell for the higher price?

     
  20. onetoo3com

    onetoo3com Registered Member

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    If you do a bit of research, use Google Maps, find all the car boot sales in the area, plan it, then you can do 3 easily, but get there early, as they are unpacking, just ask "have you any gold" and move to the next.
    If 2 of you do it, it's easier and quicker.