Week 39.1 Location Location (2)
Well, it’s known that Precious Metal trading is best done via COD. Postal is a problem. You will bump to it later on. CityLink who lost my shipment 20oz silver, last week just got a letter stating that they only pay me RM200/- for the losses. Let move on from here. The location of your workplace must be good. If you work in good location area town center Masjid Jamek, KL Sentral, Mid-Valley etc. You can meet up with lot of people in a very short time.
If your location is good you can sell at higher prices lah. Think about it, you only see Tesco, Giant, Ecosave in sub-urbans area. You don’t see Tesco in KLCC correct. 1 meal in KLCC cost RM10/person, similar meal cost only RM5 in Cheras.
If you are in high density area and have the time to COD, don’t do wholesale deal lah sell few hundred oz in one goal after that nothing to sell at higher price. Sound very stupid for you to do wholesale deal. Do lot and lot of small deals lah each 5oz or 20oz each. Each will earn you RM3-5/oz extra, think about it. Sometimes, wholesale can give you quick bulk for little work, after that you will run out of stock, now what? How long for you to restock? At the meantime, no business can be done.
I work in far-far away places thus I have to do wholesale. No choice.
Nobody knows about the future. When will be your next sales and how big will it be, nevertheless you should put this in your mind ok. Things can happen very odd.
You decided not to sell 100 oz @RM100/oz sales to Mr A, but sells 40oz @RM103/oz to Mr B and hope to sell to the remaining 60oz other customers at @RM104/oz. Nobody turn up to buy the 60oz you are stuck with 60oz.
You sold 100oz @RM100/oz to Mr A, the Mr B&C&D call you and said they willing to buy at RM105/oz but you have nothing to sell.
Which one will happen first, you won’t know. Make the best guess ok.
What is my conclusion from this?
Dealer will get 100-1000 oz from main dealer each time, then they will go and sell back to their client in their own area at small quantity. Then you will have SilverKlang, SilverShahAlam, SilverPJ, SilverSubang, SilverBangsar, SilverKL, etc. Crossing border/district will be unsustainable unless the order is very big. Cost per km for car is around RM.30-RM.40 (all in maintenance, petrol, toll etc) + telephone charges etc. The most expensive part is the time spent on making the CoD.
SILVER is still a good investment, just that sometimes it becomes an overcrowded field and need to be sorted out.
ReplyDeleteeven Sugar King Robert Kuok said last time he used to have 40++ competitors, but many dont last long. Of course over time many gone ... for many different reasons.