Let’s have a conversation about the price of convenience and how expensive it can be over the long term.
Many times we encounter refining prospects who like the convenience and the quick turnaround from a cash buyer. Cash buyers are just around the corner from the store or stop by once a month, usually someone a pawnbroker or jeweler has been using for years out of convenience.
How a cash buyer determines value
Cash buyers generally look at the hallmarks on a piece i.e. 10K, 14K, they do a quick calculation by weight and the looks of the piece(s) to determine its worth. They take a risk because heavily plated pieces and counterfeit pieces that are improperly marked can bring the value of a lot down drastically. They make a calculation judging by the risk on how much they will pay for a lot. They are in the business to make money, so as you may imagine, the calculation is always in their favor.
What you are giving up for the quick cash?
- The cash buyers do not pay on the platinum in your lot and many times not even the silver. This can add up to thousands lost over the course of a year.
- You always lose. There is no way you can win with percentage based value. A cash buyer normally gives 98% but this is based on what they think the lot is worth. The average loss being conservative is approximately 2% per lot. If you calculate your lot size and figure a 2% loss, is that really worth the convenience of the transaction? Wouldn’t you rather KNOW what your lot is really worth?
- Remember, free containers, shipping and insurance when you use Pease & Curren Refiners.
Check out next week’s blog: “An Owner’s Story”