Hypothetical - you walked into a shop to buy some bullion. You are quoted a price based on spot+% and agree to the price and tell them to proceed. From the time it takes them to invoice the item, the spot price moves. Question - would you expect to pay A. the price originally quoted and agreed upon B. the adjusted price which takes into account movement in spot while the paperwork is being completed C. the lowest of the two because of goodwill D. the highest of the two, because, well, they are a business after all
or E: you agree with the dealer that after they have drawn up the invoice, you will compare the two different prices and decide which one to pay.
If an actual price was quoted then I'd expect to pay 'A', but if a percentage was quoted then I don't know - never had the situation of being quoted a %.
I ordered a monster box from Gainesville this time last year in person - their computer network was down and it took 45 minutes to get a printed invoice - the box had gone up $200 in 45 minutes, but we got the price quote when we walked in the door. Depends on the situation - I often get email requests for quotes even though there's live prices quoted on the website - in those cases I either give a time limit ("good until 4pm" etc) or a spot ceiling ("good while spot under $29.50" etc). When we do a brokerage order, we do quote a percentage - the final price is based on Perth Mint ask when an order is locked in at the mint, not when the order is placed, but that's explained during negotiations - the customer gets a guaranteed lowest possible premium but variable spot.
I would think the initial price agreed to is contractually binding. An offer, an acceptance and commiseration. A
Key term here might be "quote" - if a dealer wants to protect themselves from spot movement while a customer decides if they are going to accept, then they should "estimate" a price, not "quote". But seriously, a price given a couple of minutes before paperwork is completed presumably during an over the counter transaction in person should be honoured. Won't ask names Auagau, but I assume this is an event you experienced?
Yes, and "B" happened, they put the price up because of a movement in spot. The $$ side wasn't massive, I just thought it was a bit lousy. It's not as though their cost price also increased in that time. It was a firm quote, "the price is x", "ok, done"... "now the price is x + y"... Hmm I wont mention names either, but they are well respected here. I will never return however.
Same thing happened to me in brisbane. Was my first ever physical purchase so thought it was the norm at the time. I got the feeling they knew i was a jube. Poor form now i think about it. I thought id locked in the price. Only had a few hundred in the wallet and was putting remainder on card. Their eftpos machines wouldnt work so i paid some cash and went to atm. Came back (15min max) with remainder and price had gone up!
What in the frakking frak? I assume you mean they made you pay the extra since when the price went up too? If that's the case, boycotting from now on. That's some dodgy practice by any standards. I wouldn't even expect that shit from a used car salesman.
Yep. I think the girl was new. I paid a few hundred so i didnt have to line back up outside as it was pretty busy. Only talking $15 but thats not the point. Glad i found this place!
Very surprised to hear this situation A is my experience and would walk out the door immediately otherwise Wonder if the opposite is true when the spot drops? serious doubt it
I have noted that quotes in Australia do not mean what I though they meant. Just about every job I have been quoted a price on ends up being more, in some cases 40% extra, I now assume that a quote is really an estimate and factor in up to around 20% extra. But to change prices half way through a transaction? What kind of customer service is that? I, like most people, would probably swallow it for a couple of extra bucks, especially when you factor in the price of taking the day off, driving to the shop, chosing a product and the lack of options for taking your business elsewhere, but I would be fuming and I certainly wouldn't bother going through all the effort to shop there again, not now you can get decent service from this website. You are lucky though, Gold and Silver are usually traded in US Dollars, if they were really keen they could have hit you up for fluctuations in the exchange rate as well. I do not think it would be a name and shame if you were to mention their name, it is a business practice of theirs to change the price half way through a deal and other customers need to be aware of this, could save someone a trip or help to inform the company's business practices.
Its happened to me however over a longer time period and they honored it in my favour...a drop in spot. I saw the item and got a verbal quote (kilo dragon). Went for 'lunch' to think about it. Less than an hour later went back to buy and the seller checked spot on his PC, and requoted a lower price for the item.
A is the only acceptable answer. I source from a number of suppliers and it is not unusual after I get the invoice that I might see something else that I want. My favourite supplier doesn't even bother printing another invoice. He just writes down what I owe him and adds it to the following week's invoice. Spot may have dropped or risen during the half hour I am browsing in his store however he will charge me at the original quoted spot. It all evens out in the end because its 50/50 which way spot can go at any given time so any dealer who doesn't apply (A) is a greedy idiot as well as a fool.
