Group Buying

[Monsmoy]

Hi, I am a newbie to TSF and so apologise in advance for stepping on to ground that may already have been covered. 

My questions is to do with pre-ordering in numbers and cost. Is it done, or possible, to group together for an imminent release and negotiate a price for a big order (numbers being from TSF who had individually bought in)?

For example, the 2022 Gold Libertad.  Is there a known dealer out there who knows they will have a quota and we negotiate for a delivery of X now?

TIA for thoughts on this.

[BackyardBullion]

Yeah, this is definitely possible. When you look at Royal Mint Pricing you can see a lot of discounts for bulk purchasing. 

I did this a lot in the past with European Dealers and importing to the UK for forum members. 

However, the logistics of such an undertaking would negate any savings now. 

Example.

RM 1 oz Britannia Gold Coins, single price £1459, 100+ price £1441 which is an £18 per coin saving. 

If you take that £18 saving you then have to post the coin out to customers - that would be £9 with Special Delivery, this makes the saving £10

The person organising this would have to:

• Liaise with nearly 100 people...
• Organise, somehow, the payments from 100 people...
• Take delivery of £140,000 worth of gold....
• Insurance!?
• Time taken to manage
• Time taken to package up everything
• So many things
• All to save £10 per coin

Not to mention that all the buyers would have to have complete trust in the organiser. 

• What happens if things get lost
• What happens if mistakes happen
• What about damaged coins

There is a reason I don't do bulk buys any more 🙂 

  

[Tn21]

5 minutes ago, BackyardBullion said:

Yeah, this is definitely possible. When you look at Royal Mint Pricing you can see a lot of discounts for bulk purchasing. 

I did this a lot in the past with European Dealers and importing to the UK for forum members. 

However, the logistics of such an undertaking would negate any savings now. 

Example.

RM 1 oz Britannia Gold Coins, single price £1459, 100+ price £1441 which is an £18 per coin saving. 

If you take that £18 saving you then have to post the coin out to customers - that would be £9 with Special Delivery, this makes the saving £10

The person organising this would have to:

• Liaise with nearly 100 people...
• Organise, somehow, the payments from 100 people...
• Take delivery of £140,000 worth of gold....
• Insurance!?
• Time taken to manage
• Time taken to package up everything
• So many things
• All to save £10 per coin

Not to mention that all the buyers would have to have complete trust in the organiser. 

• What happens if things get lost
• What happens if mistakes happen
• What about damaged coins

There is a reason I don't do bulk buys any more 🙂 

  

Do you miss the BYB group orders ?

[BackyardBullion]

2 minutes ago, Tn21 said:

Do you miss the BYB group orders ?

No, can you tell!

[lst65]

20 minutes ago, BackyardBullion said:

Yeah, this is definitely possible. When you look at Royal Mint Pricing you can see a lot of discounts for bulk purchasing. 

I did this a lot in the past with European Dealers and importing to the UK for forum members. 

However, the logistics of such an undertaking would negate any savings now. 

Example.

RM 1 oz Britannia Gold Coins, single price £1459, 100+ price £1441 which is an £18 per coin saving. 

If you take that £18 saving you then have to post the coin out to customers - that would be £9 with Special Delivery, this makes the saving £10

The person organising this would have to:

• Liaise with nearly 100 people...
• Organise, somehow, the payments from 100 people...
• Take delivery of £140,000 worth of gold....
• Insurance!?
• Time taken to manage
• Time taken to package up everything
• So many things
• All to save £10 per coin

Not to mention that all the buyers would have to have complete trust in the organiser. 

• What happens if things get lost
• What happens if mistakes happen
• What about damaged coins

There is a reason I don't do bulk buys any more 🙂 

  

And…after all that tremendous hard work, community spirit and innovation…spot price drops by £20 the week after…😉

[Oddjob]

20 minutes ago, BackyardBullion said:

Yeah, this is definitely possible. When you look at Royal Mint Pricing you can see a lot of discounts for bulk purchasing. 

I did this a lot in the past with European Dealers and importing to the UK for forum members. 

However, the logistics of such an undertaking would negate any savings now. 

Example.

RM 1 oz Britannia Gold Coins, single price £1459, 100+ price £1441 which is an £18 per coin saving. 

If you take that £18 saving you then have to post the coin out to customers - that would be £9 with Special Delivery, this makes the saving £10

The person organising this would have to:

• Liaise with nearly 100 people...
• Organise, somehow, the payments from 100 people...
• Take delivery of £140,000 worth of gold....
• Insurance!?
• Time taken to manage
• Time taken to package up everything
• So many things
• All to save £10 per coin

Not to mention that all the buyers would have to have complete trust in the organiser. 

• What happens if things get lost
• What happens if mistakes happen
• What about damaged coins

There is a reason I don't do bulk buys any more 🙂 

  

I watched one of those vids from back in the day....certainly looked like a lot of work....................

[Monsmoy]

1 hour ago, BackyardBullion said:

Yeah, this is definitely possible. When you look at Royal Mint Pricing you can see a lot of discounts for bulk purchasing. 

I did this a lot in the past with European Dealers and importing to the UK for forum members. 

However, the logistics of such an undertaking would negate any savings now. 

Example.

RM 1 oz Britannia Gold Coins, single price £1459, 100+ price £1441 which is an £18 per coin saving. 

If you take that £18 saving you then have to post the coin out to customers - that would be £9 with Special Delivery, this makes the saving £10

The person organising this would have to:

• Liaise with nearly 100 people...
• Organise, somehow, the payments from 100 people...
• Take delivery of £140,000 worth of gold....
• Insurance!?
• Time taken to manage
• Time taken to package up everything
• So many things
• All to save £10 per coin

Not to mention that all the buyers would have to have complete trust in the organiser. 

• What happens if things get lost
• What happens if mistakes happen
• What about damaged coins

There is a reason I don't do bulk buys any more 🙂 

  

Thank you, and great to hear from someone who has done it.  I must admit, I did not think it would be such large numbers.  Yes, sounds like a potential nightmare on every occasion. Thank you again.

[BackyardBullion]

4 minutes ago, Monsmoy said:

Thank you, and great to hear from someone who has done it.  I must admit, I did not think it would be such large numbers.  Yes, sounds like a potential nightmare on every occasion. Thank you again.

The biggest single delivery I managed for the forum was about £50k and I estimate about £300,000 in total across 3 years.

It was amazing, don't get me wrong.

But it was literally weeks of work.

I was really happy to do it, it was very helpful to build my channel up and great content and a way for not only others but for me to save money on orders. 

Forum members were very generous with tips and donations too - but it was very hard work!

[Abyss]

To save on Gold purchases what I have found the "best way" find the cheapest price in Europe for example

1 oz Gold Britannia for 2.8% over spot from

https://www.coininvest.com/en/gold-coins/britannia/1-oz-britannia-gold-coin-2022/?change=1&curRate=pound_rate

Call round all the highly trusted UK bullion dealers (post Brexit not bought any PMs from abroad) check if they will price match or if you are able to buy at 3% above spot. Most will not wiggle for a single coin but if you are buying 5+ at a time or a full tube they will negotiate to win the business. May not have to buy 100 coins to get the best price maybe group order for full tube could do it. You still have logistics and trust element mentioned by BYB to contend with.