Anyone know anything about dealing in scrap gold?

[Urban Publications]

It will be different form the "post your gold" because, as I said in my previous post, we will be offering a fair price to the customer. It is well known to everyone by now that a lot of the "post your gold" merchants use murky practices to part the public from their gold at really low prices. just google cash4gold scam. Even if some of these companies are above reproach, the perception has spread that they are crooks, so people are more likely to deal with a local buyer where they can be given a price for their items there and then, and accept or decline immediately without having to return a cheque within a certain time of the date on the cheque (which is deferred). So it is all open, fair and above board and can be seen to be such.

This is what people now think of ANYONE setting up a business to try and buy/sell gold, online, offline, drinking tea from their front room
It makes no difference if you are in a retail outlet.
Your off on your fair price again, if a customer comes in why would you be offering more than the scrap value for the gold that any ESTABLISHED jeweller will be offering the customer.

 

[KidsBeeHappy]

This is what people now think of ANYONE setting up a business to try and buy/sell gold, online, offline, drinking tea from their front room
It makes no difference if you are in a retail outlet.
Your off on your fair price again, if a customer comes in why would you be offering more than the scrap value for the gold that any ESTABLISHED jeweller will be offering the customer.

Because most jewellers used offer about half the price of scrap dealers. Because established jewellers have high overheads that the scrap dealers don't. Because most Jewellers are simply selling onto scrap dealers.

 

[oldeagleeye]

ha ha ha ha ha ha ha

I am almost fell out of my chair laughning at that one. I quote

as I said in my previous post, we will be offering a fair price to the customer. It is well known to everyone by now that a lot of the "post your gold" merchants use murky practices

And this from a door to door money lender - with as she calls them 'foot soldiers' . Can you believe it.

Bank Base Rate is 0.5% . Be interesting to know then Gina what your 'fair to the public rate' is.

BTW. Weighing Flour. Knowing whether its sugar or salt you throwing in the cake tin - DON'T make you a good cook. Being a good baker don't mean your going to take £8000 on fairy cakes - EVERY WEEK.

Talking of which do you know the difference between a short and a long hudredweight. What the calorific value of a grm of 9ct gold is. Those calories mount up you know.

Your talking TRADING here and without the connections - your OUT.

Anyway. That is all irelevant.

PROOF - PUDDING - PROOF - PUDDING & THAT CLOCK A GOES ON TICKING
TICK - TICK - TICK.

Ticketyboo.

 

[jelly3]

To ease the tension a little look at this, a genuine American gold ad.

http://il.youtube.com/watch?v=TrNipeP4HvQ&feature=related

and another, but I'm not certain this one is as genuine http://il.youtube.com/watch?v=UtRUY_AH458&feature=related

 

[Digger]

Had to chuckle at the Google Ad under post #72


Eyes everywhere - quite creepy

 

[BusinessIdeas]

And this from a door to door money lender - with as she calls them 'foot soldiers' . Can you believe it.

Anyway. That is all irelevant.

PROOF - PUDDING - PROOF - PUDDING & THAT CLOCK A GOES ON TICKING
TICK - TICK - TICK.

If you think I am working to your schedule, then of course as usual you could not be more wrong In fact, (if you dont know what a fact is you can google it) I couldn't give a poo what you think about anything.

I do note however that you want to slag money lenders off now - anyone else while your at it?

 

[oberta]

dont think ive ever seen a thread were so many people have got so upset over something that has literally nothing to do with them!

bizarre

 

[oldeagleeye]

I wasn't slagging off money lenders dragon lady just exposing a bit of hypocrisy of being a money lender one day and charging extortionate rates of interest because the customer can't get credit at competitive rates one the next day being a benevolent scrap gold dealer.

Bearing in mind your main occupation then I think this would be a better video.

http://www.youtube.com/watch?v=UtRUY_AH458


Come on Gin. You have already dropped the " I am gonna open up a shop in a " few weeks " idea. That wasn't my timeline it was yours. I just said it couldn't be done. Admit you got this one wrong. A bit of egg on your face is one thing. Carry on and having a yoke running down your chin would be most unbecoming.

Now I am not going to go tit for tat with you or goad you anymore and as you say you don't need me to mentor you. I will pass on one little tit bit if you forgive the expression if your bored and want to get into something else.

When I had first started my security company which specialised in covert surveillance equipment we sold to the general public via a catalogue we advertised in the Exchange & Mart. Eventually we were to move on to only supplying our own devices to the security and law enforcement agencies.

During that initial period however we got more enquiries and sold more basic kit to punters in Wales than anywhere else in the country. In fact 10 times more than in England and 20 times more than Scotland.

Seems that they are none too trusting down your part of the world.

Worth a thought. There is around 150% - 250% margin in that biz and you don't need a shop.

 

[BusinessIdeas]

I wasn't slagging off money lenders dragon lady just exposing a bit of hypocrisy of being a money lender one day and charging extortionate rates of interest because the customer can't get credit at competitive rates one the next day being a benevolent scrap gold dealer.

Bearing in mind your main occupation then I think this would be a better video.

http://www.youtube.com/watch?v=UtRUY_AH458


Come on Gin. You have already dropped the " I am gonna open up a shop in a " few weeks " idea. That wasn't my timeline it was yours. I just said it couldn't be done. Admit you got this one wrong. A bit of egg on your face is one thing. Carry on and having a yoke running down your chin would be most unbecoming.

Now I am not going to go tit for tat with you or goad you anymore and as you say you don't need me to mentor you. I will pass on one little tit bit if you forgive the expression if your bored and want to get into something else.

When I had first started my security company which specialised in covert surveillance equipment we sold to the general public via a catalogue we advertised in the Exchange & Mart. Eventually we were to move on to only supplying our own devices to the security and law enforcement agencies.

During that initial period however we got more enquiries and sold more basic kit to punters in Wales than anywhere else in the country. In fact 10 times more than in England and 20 times more than Scotland.

Seems that they are none too trusting down your part of the world.

Worth a thought. There is around 150% - 250% margin in that biz and you don't need a shop.

Gosh! How many wrong assumptions can one person make in a thread?

I do not charge "extortionate rates of interest" and I never take defaulters to court, there is also no charge for missed payments or arrears letters etc, but this has been covered on the forum many times and I dont intend to re-visit it here.

My estimate of a few weeks still stands by the way, but if it takes a little more than that, who cares? - Obviously only you it seems

 

[oldeagleeye]

If your still on the same timeline then I suggest that your order the bullet and acid proof glass now because you ain't going to simply plonk a table and chair down in the shop. Sitting there wearing a crash helmet ain't no solution against baseball bats either.

Your need at least the same sort of security your see in any village sub post office.

As for assumptions on money lending. Pray tell us what are your rates actually are instead of coming back with a lot of waffle about what a warm hearted and generous soul you are.

I gather that Capital Gold do a card for punters with a poor credit record and their rate is about the worse being about 2% a month or 37% a year APR.

What's yours because if it's worse than that your rates are extortionate.

BTW. the margin on trading new 22ct Gold . Try .000.25%. In other words there a 38p spread om a £780 troy ounce.

What is that they say. A fool and their gold are soon parted.

 

[BusinessIdeas]

There are already lots of small shops offering this service all over the UK in a similar way to the model I have outlined here, I suppose they are all getting hit over the head at least once a month

 

[Ranks]

During that initial period however we got more enquiries and sold more basic kit to punters in Wales than anywhere else in the country. In fact 10 times more than in England and 20 times more than Scotland.

Totally off topic, but this thread was lost ages ago - oldegaleye, were these products being bought to go over to Ireland do you think?
Jay

 

These type of arguments tend to happen a lot....
Some people target competitors, some people have bad days, some people are very very very negative, and some people simply write something that gets misinterpretated by others as abusive or sarcastic...

It's the downside to face-to-face networking.

UKBF is a good place, and threads like this are always an interesting read when you're not part of the argument!

I wouldn't ditch your login details just yet, there's some errr less aggressive threads on here, and you never know who you might meet that could make a real difference to your business!

Jen

I have already received the type of help i could only of dreamed of from one member on this forum who has created a massive opportunity for me and my products in the retail and distribution sector. Spent time on the phone with me and is helping me with my pitch (which i might add i had got all wrong).

Priceless help and i will be eternally grateful.

Seem to be a fair amount of talkers on this site, those who talk a good game and talk themselves up, but i wonder how much actual value they can bring to someone else. Especially when it purely comes from generosity and kindness.

Thanks Jen

 

dragon lady

Uncalled for and rude

 

[KidsBeeHappy]

During that initial period however we got more enquiries and sold more basic kit to punters in Wales than anywhere else in the country. In fact 10 times more than in England and 20 times more than Scotland.

Seems that they are none too trusting down your part of the world.

This made me laugh! When we did house clearances in Wales there was usually nothing but complete rubbish to take away. Anything with any kind of value would already have been removed. Apparently, in South Wales it's very normal not only to take the light bulbs when you move, but also the light fittings, the sink, toilet and boiler!!

 

[jelly3]

This thread.
I can see a piebald horse and he is lying down with a cat o nine tails by his side.

 

[oldeagleeye]

YET more waffle from the OP. Interest rates please lets see just how fair you re going to be with punters.

 

[Coppock]

This made me laugh! When we did house clearances in Wales there was usually nothing but complete rubbish to take away. Anything with any kind of value would already have been removed. Apparently, in South Wales it's very normal not only to take the light bulbs when you move, but also the light fittings, the sink, toilet and boiler!!

Ha ha ha.....

Before moving to Wales I had a house with my boyfriend, the relationship went sour and I eventually moved out.........

I took the lightbulbs, curtain rails, loo roll and dug up all the plants in the front garden

Who knows what I take when I move out now that I live in Wales!?

 

[BusinessIdeas]

YET more waffle from the OP. Interest rates please lets see just how fair you re going to be with punters.

I am not at all interested in anything you have to say, you are rude and abrasive and I really dont care what you think.

 

[Wikki]

I agree with Massey, too many people are doing it. I remember reading in the newspaper a woman posted upwards of £2000 worth of gold and was offer less than £100. Its a complete rip-off and aimed at less-off people. Nothing something I would consider.

Good luck anyway

 

[BusinessIdeas]

I agree with Massey, too many people are doing it. I remember reading in the newspaper a woman posted upwards of £2000 worth of gold and was offer less than £100. Its a complete rip-off and aimed at less-off people. Nothing something I would consider.

Good luck anyway

Thank you, I have no intention of advertising a postal service. The business will mostly come from the local catchment area, there is no-one else that I can find advertising this in my local area.

 

[Bes]

Does your business plan indicate there is enough demand in one little town and surrounding area to make the margins work on running a shop whilst giving the customer 'excellent prices'? It doesn't sound very workable to me..

 

[Urban Publications]

Thank you, I have no intention of advertising a postal service.

It really does not matter if you are doing it through a postal service or shop, the people behind the postal service have kicked the teeth out of the industry and trust must be at an all time low for ANY business's buying and selling gold.

I think people have been told so many bad stories now that they are either keeping their gold or finding other ways of selling.

You have been given plenty of advice and by the looks of things the majority dont think this a good idea, you mentioned you started research when you first posted this thread 1 week ago, in that week you have gone from knowing one person in the industry to now owning a shop and the fscarey thing is your are going to claim you have full knowledge of putting a valuation to consumers Metals and offer them a "Fair Price"

Another thing I have noticed with this industry is that it seems to be getting alot of attention from the Trading Standards. I just hope you know what you are doing. And make sure you stick to the Fair Price, one story I read was that they went round a city with one item of jewellery from the lowest to the highest figure there was a 90% difference.

 

[BusinessIdeas]

I know exactly what I'm doing I recieve updates from the OFT every day about this and every other matter related to consumer protection.

 

[Urban Publications]

I know exactly what I'm doing

I am sorry but to ask the question "Anyone know about dealing in scrap gold?" 7 days ago and bearing in mind in the 7 days you have

Looked for property
sorted a commercial lease with legals involved
Carried out extensive Market Research
Built a viable business plan
Wrote a ship load of posts on UKBF
Eat
Sleep
Stood in shops for 5 hours

And most importantly learnt everything there is to know about putting a valuation to precious metals and stones.

I find it hard to believe that, taking into account the above, you know EXACTLY what you are doing in 1 week.

 

[BusinessIdeas]

I am sorry but to ask the question "Anyone know about dealing in scrap gold?" 7 days ago and bearing in mind in the 7 days you have

Looked for property
sorted a commercial lease with legals involved
Carried out extensive Market Research
Built a viable business plan
Wrote a ship load of posts on UKBF
Eat
Sleep
Stood in shops for 5 hours

And most importantly learnt everything there is to know about putting a valuation to precious metals and stones.

I find it hard to believe that, taking into account the above, you know EXACTLY what you are doing in 1 week.

Nowhere in my first post did I say that I knew absolutely nothing about this business. I havent done everything by myself either. I have people working on this who are more than capable, and I can usually manage the sleeping and eating part myself . I have also sorted out the signage for the shop, done more research with potential clients (I have quite a large customer base in my existing business). I have sourced a hand held metals analyser which is used by all the large refiners to analyse constituent metals and to weed out heavy plated objects. I have researched footfall and traffic going past the new shop, and gone through all the local papers to see if anyone else is advertising in my area - they arent. I have also been managing my main business at the same time and phoned my ageing mother amongst other things You might want to add these to your list!

 

[oldeagleeye]

Totally off topic, but this thread was lost ages ago - oldegaleye, were these products being bought to go over to Ireland do you think?
Jay

No way. At that stage we were only selling pretty run of the mill stuff like miniature bugs. Bugs in 3 way plugs and lampshades etc. Even in those days the 'Johnnie's in Ireland had better equipment than that. When we moved on to designing the more sophisticated kit we sold most of it to our own security services and that of other NATO countries and we needed special MOD approval to do even that - especially when we designed something special. Then were not even allowed to sell to the CIA for a year. There's the special relationship for you.

Uncalled for and rude

If you don't get the sense that Gina is a b it of a fiery lady I suggest you don't borrow any money off her firm.

In any event the dragon referred to this picture.
May I suggest far too many assumptions are being made on this thread.
Uploaded with ImageShack.us

 

[BusinessIdeas]

Dont worry people I dont bite and I treat my customers with the utmost respect, so any inference that I use a "fiery" (read bullying) approach when dealing with my customers is totally wrong and just another one of the many stupid ridiculous assumptions that have been made about me and my business.

 

[BusinessIdeas]

If you don't get the sense that Gina is a b it of a fiery lady I suggest you don't borrow any money off her firm.

So now you are trying to undermine my business with suggestions that I treat my customers harshly. Really disgusting tactics.

 

[S-Marketing]

Thought I would stick my nose into this thread having read it from the start.

I dont intend to jump on the bandwagon and start argueing with the OP but to me this seems like a crazy idea. It seems flawed at so many levels I cant possibly see it working.

Op, hidden in the insults, there have been some wise words in this thread. That shop wont take enough money to cover overheads, let alone make a profit. You may find in the short term you get some interest. As soon as all the locals who want to sell gold, have done so, then what? To make this sustainable would take a massive marketing budget, and I dont think you would get a return on spending it.

I have left this thread alone till now as I thought 'she probably knows what she is doing'. After reading you have been carrying out footfall research I am not so sure. With this type of business, footfall is almost irrelevant. You wont get much passing trade with a bag full of gold who will just pop in. Even from an awareness point of view, footfall wont even put a dent in the amount of people you are going to need to attract, unless your shop is on Oxford street during the run up to Xmas.

With slim profits, high over-heads, limited market, limited knowledge, security issues and the hassle of every burglar in a 20 mile radius frequenting your shop, it doesn't sound to me, like a 'golden opportunity'

 

[BusinessIdeas]

Thought I would stick my nose into this thread having read it from the start.

I dont intend to jump on the bandwagon and start argueing with the OP but to me this seems like a crazy idea. It seems flawed at so many levels I cant possibly see it working.

Op, hidden in the insults, there have been some wise words in this thread. That shop wont take enough money to cover overheads, let alone make a profit. You may find in the short term you get some interest. As soon as all the locals who want to sell gold, have done so, then what? To make this sustainable would take a massive marketing budget, and I dont think you would get a return on spending it.

I have left this thread alone till now as I thought 'she probably knows what she is doing'. After reading you have been carrying out footfall research I am not so sure. With this type of business, footfall is almost irrelevant. You wont get much passing trade with a bag full of gold who will just pop in. Even from an awareness point of view, footfall wont even put a dent in the amount of people you are going to need to attract, unless your shop is on Oxford street during the run up to Xmas.

With slim profits, high over-heads, limited market, limited knowledge, security issues and the hassle of every burglar in a 20 mile radius frequenting your shop, it doesn't sound to me, like a 'golden opportunity'

Thank you for your comments
While I respect and appreciate your views on this, one piece of research that I have done that I may not have mentioned is the fact that I know of hundreds of people doing this all over the country, one in particular that is of direct relevance; is a shop that I know of in a small market town that is doing really well and is operating this exact model. Only time will tell if it will work in my chosen location, and I am prepared to take the risk of losing the small outlay that I have incurred with this project.
If you dont try, you dont succeed, so the proof of the pudding will definitely be in the eating

 

[S-Marketing]

Thank you for your comments
While I respect and appreciate your views on this, one piece of research that I have done that I may not have mentioned is the fact that I know of hundreds of people doing this all over the country, one in particular that is of direct relevance; is a shop that I know of in a small market town that is doing really well and is operating this exact model. Only time will tell if it will work in my chosen location, and I am prepared to take the risk of losing the small outlay that I have incurred with this project.
If you dont try, you dont succeed, so the proof of the pudding will definitely be in the eating

Best of luck with it. Keep us informed with your progress.

 

[BusinessIdeas]

Best of luck with it. Keep us informed with your progress.

Thank you Stretchy I certainly will.
It is very heartwarming that quite a few members on here have shown their heartfelt concern and taken the time to warn me of what they see as potential risks and I really do appreciate it.
As to the insults? - well you have to take into account the sort of inadequate people who are making them before you take them seriously

 

[S-Marketing]

Thank you Stretchy I certainly will.
It is very heartwarming that quite a few members on here have shown their heartfelt concern and taken the time to warn me of what they see as potential risks and I really do appreciate it.
As to the insults? - well you have to take into account the sort of inadequate people who are making them before you take them seriously

As I said, I dont think your idea is a good one, so I just posted my opinion (for what its worth). I put my point across, you put your point across, we were both polite, and I wished you every success with it. IMO, thats how a forum should work.

 

[Urban Publications]

I may not have mentioned is the fact that I know of hundreds of people doing this all over the country

Going from one expert to hundreds in the space of a week

So its taken 12-13 pages for you to answer your own question

"Anyone know anything about dealing in scrap gold"

I know of hundreds of people doing this all over the country

 

[BusinessIdeas]

As I said, I dont think your idea is a good one, so I just posted my opinion (for what its worth). I put my point across, you put your point across, we were both polite, and I wished you every success with it. IMO, thats how a forum should work.

This is so true! for my part; I have not always responded as well as I should to be honest, but when you are starting a new venture you see it as your baby, and feelings can run high, and maybe get a bit too defensive when you percieve that people dont care for it very much!

 

[BusinessIdeas]

Going from one expert to hundreds in the space of a week

So its taken 12-13 pages for you to answer your own question

"Anyone know anything about dealing in scrap gold"

Dont be silly , I only learned that there were hundreds of other venues where this was being operated after I started the thread, and it wasnt me that filled 13 pages so I cant be held responsible for that can I?
I just thought that maybe someone else was doing, or planning to do the same thing, and we could swap ideas.

 

[FreelanceSoftwareDeveloper]

I have to agree with the comments about this struggling to cover overheads. I'm sure you will get an initial surge but what is going to be the ongoing local demand for such a service.

As for fair pricing that's just nonsense, what is a fair price? Are you going to put a cap on your earnings and put a sign in the window, "We will not earn more than £20k/year from buying your gold and reselling it to a company you don't know about", of course not. At the end of the day you are going take that gold and sell it for a bit more because you know where to sell it. I don't get the concept that the TV ones are scams, they offer a price for the jewellery, take it or leave it. Those prime time TV adverts aren't cheap.

Whether it's cash for gold, cash convertors, second hand shops, they all work on a very transparent basis that you will buy an item from someone there and then on the basis that you think you can sell it for more.

Your making money from people who don't have any money, there's little room for ethics. They are struggling to pay bills and feed their children whilst you make a tidy profit out of them.

 

[Urban Publications]

Dont be silly

Ermmm Pot, kettle & Black springs to mind

I just thought that maybe someone else was doing, or planning to do the same thing, and we could swap ideas.

Dont be silly

Most people know its no longer a viable business.

Someone mentioned that it is none of our business what you do, they are right, I think you are going to lose alot of money with this venture, and I think you need more than a week to fully research the business/market alone.

I do honestly wish you all the very best with this new venture, and hope you come back in a couple of years saying I know I could do it and I am now about to open 3 more shops.

Good Luck

 

OP should not be in a business that he/she has to come onto a forum to ask "Does anyone know about scrap gold?"

Thats like me going onto a medical forum and saying "Does anyone know anything about surgery"

If you know NOTHING about an industry and can't be bothered to google and do your own research then you have no business in progressing into that field.