Most of us are already aware of the existence of probably hundreds of precious metal merchants spread across Australia and although most of them are governed by the same legislative national governmental bodies, some stand out in terms of offering and services, setting them apart from the rest.
These are the elite few that know how to do business and are fined tuned towards sustaining their businesses in the long run. Among these exclusive or rather ‘elite’ gold trading companies is Melbourne Gold Company Gold Buyers and Refiners, a family run business that has been a part of Australia for over 2 generations and despite the steady growth of the company over the years the traditions and beliefs continue and are reinforced periodically. The secret to their success is evidently in their transparent and value added services that advocate customer loyalty.
Their entire value chain is focused on ‘what more can the customer get instead of what more can the company get’. The company focuses on customer satisfaction more than anything else which can be seen through their dedication towards affording the best prices for buying and selling gold. While most other merchants charge a myriad of fees that range from assaying to retention, Melbourne Gold Company gets straight to the point by negotiating an agreed price that is paid upon delivery.
The buy rates that the company offers for scrap gold (including jewellery), silver and gold bullion and other physical items that contain precious metals are the highest throughout Australia while their selling price is among the lowest, which leads us to the question – how do they do it? The answer to that question is – sheer volume!
The company’s long standing affiliation with other gold traders and refiners make it possible for them to reduce cost significantly and this cost saving is transferred to clients instead of being marked up in books as profit which is what most other gold merchants do. The company managers recognise the fact that most people don’t have much gold and when these individuals do decide to sell the gold that they own it is an indication that they need cash and they need cash quick which is why the ‘system’ of buying gold was formulated to be not only transparent and fair, but also quick and efficient.
Another factor that is worth mentioning here is the company’s ‘buyback policy’ – MGC Gold Buyers and Refiners offer the highest value when they buy back their own gold from their loyal customers which actually presents the company as a ‘trading post’ that customers are able to return to in order to ensure that they get the best deals. The success story of this company does not lie in complex business models that are mind boggling, as a matter of fact it’s completely the other way round – it’s pure simplicity – keep margins low and aim for profit from volume not from single individuals.
The company’s value chain is a key aspect of their business as the transfer of savings from the value chain to customers is a critical success factor of their business. The precious metal industry is anything but easy as the risk of price fluctuations is high and as the prices of precious metals are under the constant threat of bull and bear markets, gold trading companies must have the capacity to ‘maintain’ their services and ride these ‘storms’ in order to survive in the industry and the current low prices of gold has mounted pressure on most gold merchants toa point where only the strong will survive.