The Alice in Wonderland question. Alice asks the rabbit which direction she should take and the rabbit asks her "Where are you going?". When she responds that she doesn't know the rabbit tells her, then, that it doesn't matter which way she chooses.
So perhaps the question is: "Where do I want to go?"
Some real soul searching has to come into play here because just because you want to become Donald Trump or Bill Gates doesn't mean you have the tools to get there.
America is still the land of opportunity - you just have to visit the land of reality before you get there.
If you are going into business you have to decide where your strengths and weaknesses lie.
From a sales standpoint - if you can develop relationships quickly, establish rapport easily and have developed an insensitivity to rejection then you may want to try a home based business. You have to understand that in choosing this method you are swapping $0.00 overhead of a store for a life of prospecting and cold calls and developing a referral base.
If you know that you can't make yourself consistently prospect then you should strongly consider opening a store in a high traffic location - that is going to take some money and some commitments.
I have done both and there are pro's and con's to each. I have trained myself to make cold calls and I can do it - although it is much like physical training for me - I'm pretty sore for the first few weeks but I get re-conditioned for it and I'm OK.
There are always trepidations in opening a store because now you have a lease, you have utilities, you have additional liability insurance, licensing, employees, security systems.... and it takes about $35,000 to really do it properly.
What about the people that fall in between - can someone who has the ability to run a store but not the sales skills to cold call be successful?
(Just a hint - the answer is always "Yes" you just may not like the qualifiers.)
Consider setting up your Gold Buying Operation in an existing store that has similar demographics to yours.
There is no magic answer but you may consider paying the proprietor a flat rent or a percentage of the gold you buy.
This business is simple - it is a matter of eyeballs on your signs. Enough eyeballs on your signs and you have a steady stream of gold sellers. Daily traffic of 3,000 cars will produce less than 10,000 cars, which will produce less than 20,000 cars and on and on.
Look for a location that you can get good signage and a decent traffic count. The rest will take care of itself as long as you take care of the people that find you.
Buy a Bunch!
Sunday, July 18, 2010
Wednesday, July 14, 2010
Handling Ad Calls or Price Calls
One of the prevailing techniques that Gold Buying Stores use that simply baffles me is in NOT giving out their prices when people call in to shop. Dumb, Dumb, Dumber and Dumb again.
Always go back to the origin: Why are people calling you?
Because they have gold to sell.
Why are they asking for your prices?
Because they want the most money they can get.
No, not really.
Price is important and you have to be competitive - but they are asking your price because they don't know what else to ask!
You want to position yourself as the most helpful and enjoyable person to buy gold. This will pay huge dividends in repeat and referral business as well as in allowing you to not have to be to highest price store all the time.
When someone calls in asking your prices DO NOT BE EVASIVE
Ask them: "Would you like the quote in grams or penny weight?"
More than likely you are going to be asked the difference - explain it to them in as much detail as you can.
"Thanks, by the way for calling, I do appreciate it. There are 31.1 grams in a troy ounce and there are 20 penny weight in a troy ounce. It is very important to ask what scale the buyer is using when you get quotes because penny weight always sounds like more".
"May I ask what prices you've been quoted so far?"
"How have you been pricing your gold? "
"Do you go on line and check spot prices?"
"Has anyone ever explained the spot market to you?"
"Has anyone taken the time to show you how to break down the spot price into grams and pennyweight?"
"What karat gold do you have to sell?"
"Do you know how to determine how much pure gold is in the jewelry?"
After every one of these questions that you ask insert an invitation to the store.
"I'd be happy to show you how to do that and then you'll always know why you are getting paid that amount rather than just what you are being quoted, can you stop by?"
"If you'd feel more comfortable come in without your gold and I'll show you how we evaluate it."
Of course, give them your prices in here as well if they ask.
You have to remember that jewelry is a mystery to most people. They consider it complicated and simply don't ask enough questions.
People want a good price for their jewelry and this is not a method to take advantage of them.
People want more to feel good about the people that they deal with. Once that is accomplished then the price becomes less important.
Ask questions that make your customer glad that they called you.
Always go back to the origin: Why are people calling you?
Because they have gold to sell.
Why are they asking for your prices?
Because they want the most money they can get.
No, not really.
Price is important and you have to be competitive - but they are asking your price because they don't know what else to ask!
You want to position yourself as the most helpful and enjoyable person to buy gold. This will pay huge dividends in repeat and referral business as well as in allowing you to not have to be to highest price store all the time.
When someone calls in asking your prices DO NOT BE EVASIVE
Ask them: "Would you like the quote in grams or penny weight?"
More than likely you are going to be asked the difference - explain it to them in as much detail as you can.
"Thanks, by the way for calling, I do appreciate it. There are 31.1 grams in a troy ounce and there are 20 penny weight in a troy ounce. It is very important to ask what scale the buyer is using when you get quotes because penny weight always sounds like more".
"May I ask what prices you've been quoted so far?"
"How have you been pricing your gold? "
"Do you go on line and check spot prices?"
"Has anyone ever explained the spot market to you?"
"Has anyone taken the time to show you how to break down the spot price into grams and pennyweight?"
"What karat gold do you have to sell?"
"Do you know how to determine how much pure gold is in the jewelry?"
After every one of these questions that you ask insert an invitation to the store.
"I'd be happy to show you how to do that and then you'll always know why you are getting paid that amount rather than just what you are being quoted, can you stop by?"
"If you'd feel more comfortable come in without your gold and I'll show you how we evaluate it."
Of course, give them your prices in here as well if they ask.
You have to remember that jewelry is a mystery to most people. They consider it complicated and simply don't ask enough questions.
People want a good price for their jewelry and this is not a method to take advantage of them.
People want more to feel good about the people that they deal with. Once that is accomplished then the price becomes less important.
Ask questions that make your customer glad that they called you.
Friday, July 9, 2010
Boost Retail Profits
Up to this point we have talked about building a Gold Buying Business from home, but many of our licensees - in fact the fastest growing segment, are retail store owners that ad value to their store buy buying gold, silver and platinum from their customers.
Think about this - in a tight economy people hold off buying because they don't have disposable cash, right?
Remember the last time you found a $20 bill in your pocket?
Most women who are 35 years old or better have over $200.00 worth of old, broken or unwanted jewelry in their jewelry box that they haven't worn for more than a decade and very likely will never wear again.
These customers also want to do business with people that they feel comfortable with.
Here are some other statistics that make this an interesting proposition:
The stand alone stores that we have opened have all followed the same pattern.
It takes 2 weeks of having signs out before the neighborhood starts to notice.
It takes 5 weeks of having signs out before the 'buz' starts in the area and word of mouth starts to build a steady flow of business.
No amount of advertising significantly impacts those numbers.
So - if you are in a relatively high traffic area (25,000 cars a day) you should expect to be buying around 30 to 50 ounces of gold a month within 90 days - as long as you can get eyes on your store!
So Check out these numbers:
It can cost as little as $200.00 plus the cost of the gold to get started - a good package with a Legal for Trade Scale and quality diamond and stone tester will run in the $850.00 range. We've assembled various kits at our website as well as a great sharing section that is filled with and constantly updated with new ads, fliers, marketing ideas, etc. that our members may use at no charge.
http://www.thegoldbuyernetwork.com/ will get you there.
Think about this - in a tight economy people hold off buying because they don't have disposable cash, right?
Remember the last time you found a $20 bill in your pocket?
Most women who are 35 years old or better have over $200.00 worth of old, broken or unwanted jewelry in their jewelry box that they haven't worn for more than a decade and very likely will never wear again.
These customers also want to do business with people that they feel comfortable with.
Here are some other statistics that make this an interesting proposition:
The stand alone stores that we have opened have all followed the same pattern.
It takes 2 weeks of having signs out before the neighborhood starts to notice.
It takes 5 weeks of having signs out before the 'buz' starts in the area and word of mouth starts to build a steady flow of business.
No amount of advertising significantly impacts those numbers.
So - if you are in a relatively high traffic area (25,000 cars a day) you should expect to be buying around 30 to 50 ounces of gold a month within 90 days - as long as you can get eyes on your store!
So Check out these numbers:
If you buy 5 ounces of Gold per month $1,800.00
If you buy 10 ounces of Gold a month $3,600.00
If you buy 20 ounces of Gold a month $7,200.00
If you buy 50 ounces of Gold a month $18,000.00
It can cost as little as $200.00 plus the cost of the gold to get started - a good package with a Legal for Trade Scale and quality diamond and stone tester will run in the $850.00 range. We've assembled various kits at our website as well as a great sharing section that is filled with and constantly updated with new ads, fliers, marketing ideas, etc. that our members may use at no charge.
http://www.thegoldbuyernetwork.com/ will get you there.
Thursday, July 1, 2010
First Steps
The similarities between coaching athletes and business people always amaze me and it is often helpful to compare on to the other. My athletes respond better to stories about coaching business people than they do to direct criticism, and vice verse.
Bio-mechanics are essential to an athlete. Learning basic movements, determining exactly what leverage points are best for that person and understanding that they are absolutely unique is essential to effectively training.
Yesterday I had a new athlete in the gym. He is obviously gifted and has been lifting weights somewhere, but no one has ever taught him proper mechanics - the first step. We worked on the 3 core lifts - Squat, Bench Press and Dead lift. He was OK on the bench - not great and he didn't appreciate my fiddling with his leverage. He was a little more receptive in the dead lift - they all are because none of the kids dead lift without a gun to their head. When it came to the squat his form was so bad that I couldn't put weight on the bar.
Here is the key - if he will work with me and allow me to refine his first steps - his bio mechanics within 3 to 4 weeks he will be faster, jump higher, quicker and stronger without adding one muscle fiber to his frame. He is simply going to learn how to use the body that God gave him.
As a business person you have to do the same thing.
All of us with experience are like the athletes coming to the gym to bench press - we already know it all and any critique is resented - but it is exactly at this point that we need to have the humility to focus and learn.
Break down your first steps. Break down your limiting factors and get the coaching that will help you break through.
As a Gold Buyer the hardest thing to get down is setting the event - the gold parties at businesses or homes.
The presentation begins before you get there - what does your dress communicate about you?
Have you managed your appearance to communicate your message for you?
Where did you park? Are you right in front of the door making it less convenient for the stores' customers to come and go?
What did you do when you pulled into the parking lot? Did you sit in your car, make phone calls, psych yourself up and otherwise creep out anyone inside the store? Or did you pull in, park well away from the door, get out of the car in a timely fashion and present yourself in a friendly and non-threatening manner?
Yesterday, before practice, I was in a corporate store.
A man pulled into the parking lot and sat in the car for at least 5 minutes.
I was about to leave but the store manager asked that I stay until the man came in.
I did, and for 5 minutes it appeared that this guy was running a mobile office. he parked in the 1st parking space next to the door and by the time he came in the branch manager was convinced that he was an ax murderer.
Needless to say, when he started his pitch (which did not begin with a question of our need) he had already lost the battle.
Think about your first steps.
What is your approach?
Is your appearance congruent with your request?
Where do you park? (If you need prep work or a 'psych up' do it somewhere else - not in the parking lot of the company you are pursuing).
What are you conveying as you walk into the business - yes they are watching you.
How do you open?
Get your first steps down. Analyze them often and refine them constantly.
Bio-mechanics are essential to an athlete. Learning basic movements, determining exactly what leverage points are best for that person and understanding that they are absolutely unique is essential to effectively training.
Yesterday I had a new athlete in the gym. He is obviously gifted and has been lifting weights somewhere, but no one has ever taught him proper mechanics - the first step. We worked on the 3 core lifts - Squat, Bench Press and Dead lift. He was OK on the bench - not great and he didn't appreciate my fiddling with his leverage. He was a little more receptive in the dead lift - they all are because none of the kids dead lift without a gun to their head. When it came to the squat his form was so bad that I couldn't put weight on the bar.
Here is the key - if he will work with me and allow me to refine his first steps - his bio mechanics within 3 to 4 weeks he will be faster, jump higher, quicker and stronger without adding one muscle fiber to his frame. He is simply going to learn how to use the body that God gave him.
As a business person you have to do the same thing.
All of us with experience are like the athletes coming to the gym to bench press - we already know it all and any critique is resented - but it is exactly at this point that we need to have the humility to focus and learn.
Break down your first steps. Break down your limiting factors and get the coaching that will help you break through.
As a Gold Buyer the hardest thing to get down is setting the event - the gold parties at businesses or homes.
The presentation begins before you get there - what does your dress communicate about you?
Have you managed your appearance to communicate your message for you?
Where did you park? Are you right in front of the door making it less convenient for the stores' customers to come and go?
What did you do when you pulled into the parking lot? Did you sit in your car, make phone calls, psych yourself up and otherwise creep out anyone inside the store? Or did you pull in, park well away from the door, get out of the car in a timely fashion and present yourself in a friendly and non-threatening manner?
Yesterday, before practice, I was in a corporate store.
A man pulled into the parking lot and sat in the car for at least 5 minutes.
I was about to leave but the store manager asked that I stay until the man came in.
I did, and for 5 minutes it appeared that this guy was running a mobile office. he parked in the 1st parking space next to the door and by the time he came in the branch manager was convinced that he was an ax murderer.
Needless to say, when he started his pitch (which did not begin with a question of our need) he had already lost the battle.
Think about your first steps.
What is your approach?
Is your appearance congruent with your request?
Where do you park? (If you need prep work or a 'psych up' do it somewhere else - not in the parking lot of the company you are pursuing).
What are you conveying as you walk into the business - yes they are watching you.
How do you open?
Get your first steps down. Analyze them often and refine them constantly.
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