Decent equipment costs around $30,000 and it takes less than 2 minutes for each test.
What's a fair ask for this type of service?
What's a fair ask for this type of service?
What's a fair price for an XRF test?
- Thread starter Aurora et luna
- Start date
hyphenated
Active Member
It makes sense to treat it as a marginal cost, given that it's a pretty useful piece of kit for the business - having said that you need to cover wear & tear, especially if ham-fisted staff are involved 
. You probably want it on a fixed, bolted-down bench, in sight of the customer.
his suggestion seems pretty reasonable, and it can actually be used to get people into the shop on slow days, especially if there is a discount or waiver with a purchase or sale - just run up a sandwich board you can put out or take in...
. You probably want it on a fixed, bolted-down bench, in sight of the customer. his suggestion seems pretty reasonable, and it can actually be used to get people into the shop on slow days, especially if there is a discount or waiver with a purchase or sale - just run up a sandwich board you can put out or take in...
I would pay $5 to test a 10+gram nugget however its hard to justify a $5 XRF premium for a one grammer.
I have always used .916 fine as the average when buying. Sometimes you end up with a nugget .85 fine, other times .96
Fineness isn't always the main consideration of what a nugget is worth to me. I also evaluate it size and shape
I have always used .916 fine as the average when buying. Sometimes you end up with a nugget .85 fine, other times .96
Fineness isn't always the main consideration of what a nugget is worth to me. I also evaluate it size and shape
Aurora et luna said:
$2 an item. Thats over $60 per hour.
I didnt have to pay for some testing I had done recently (thanks Peter), but if the charge was $5 an item it wouldnt have been worth it as most were small in size.
hyphenated
Active Member
Here's an elegent setup:
http://www.youtube.com/watch?v=8jNz3XHDlUY
I'd say that $2 was too low - you'll get Mickey-Moused. By all means make it redeemable, offer a bulk rate, but you don't particularly want dodgy individuals with large sacks of crap coming in, either.
http://www.youtube.com/watch?v=8jNz3XHDlUY
I'd say that $2 was too low - you'll get Mickey-Moused. By all means make it redeemable, offer a bulk rate, but you don't particularly want dodgy individuals with large sacks of crap coming in, either.
Depends if the equipment was being purchased specifically to offer a testing service, of if you were just looking at monetizing downtime for an existing machine. Around $2 an item sounds fair - still feasible for testing silver rounds for peace of mind. You could charge additional for gold, not because it is more effort, but to reflect the higher value of the item being tested and to contribute to the cost of the machine.
$2 an item. Thats over $60 per hour.
I didnt have to pay for some testing I had done recently (thanks Peter), but if the charge was $5 an item it wouldnt have been worth it as most were small in size.[/quote]
That's too low for a $30,000 investment however you make a good point about the items value, maybe $2 for low value items and $5 for high or potentially high value items.[/quote]
I think it should be a free service unless someone continually comes in wasting your time (ie: I would have a sign saying if you come in more than once a month there will be a charge).The machine is generally bought for the dealers own use/benefit & helping out your customers on occasion shouldnt be a chance to profit from them .
I would think " i spend hundreds/ thousands of dollars here & the tightarse wants to charge me for a couple of minutes work " It is a great chance to help your customers & build relationships .
But thats just me . Ive never been worried about a couple of bucks here & there always believing that the favours will bring you far more $ in the long run for being a good bloke & helping others .
I didnt have to pay for some testing I had done recently (thanks Peter), but if the charge was $5 an item it wouldnt have been worth it as most were small in size.[/quote]
That's too low for a $30,000 investment however you make a good point about the items value, maybe $2 for low value items and $5 for high or potentially high value items.[/quote]
I think it should be a free service unless someone continually comes in wasting your time (ie: I would have a sign saying if you come in more than once a month there will be a charge).The machine is generally bought for the dealers own use/benefit & helping out your customers on occasion shouldnt be a chance to profit from them .
I would think " i spend hundreds/ thousands of dollars here & the tightarse wants to charge me for a couple of minutes work " It is a great chance to help your customers & build relationships .
But thats just me . Ive never been worried about a couple of bucks here & there always believing that the favours will bring you far more $ in the long run for being a good bloke & helping others .
$2 an item. Thats over $60 per hour.
I didnt have to pay for some testing I had done recently (thanks Peter), but if the charge was $5 an item it wouldnt have been worth it as most were small in size.[/quote]
That's too low for a $30,000 investment however you make a good point about the items value, maybe $2 for low value items and $5 for high or potentially high value items.[/quote]
$30 000 is a large investment if the only thing it gets used for is testing curious customers items.
Personally I would charge nothing and look to recoup the costs in added goodwill and positive feedback given by happy visiters. If you run a retail shop offering free testing it would be an incentive for potential customers to visit your store.
I didnt have to pay for some testing I had done recently (thanks Peter), but if the charge was $5 an item it wouldnt have been worth it as most were small in size.[/quote]
That's too low for a $30,000 investment however you make a good point about the items value, maybe $2 for low value items and $5 for high or potentially high value items.[/quote]
$30 000 is a large investment if the only thing it gets used for is testing curious customers items.
Personally I would charge nothing and look to recoup the costs in added goodwill and positive feedback given by happy visiters. If you run a retail shop offering free testing it would be an incentive for potential customers to visit your store.
Aurora et luna said:
$80 - $120/hour.
mmm....shiney! said:
Cheaper to fly to Melb.
I know of one in Perth and she is free, as long as you don't come in with 100's of coins etc... Normally it is when she buys it is xrf and then we all know. She has said that small amounts are free no problems.
What I would do is if you have some knowledge and contacts in jewelry stores, offer a service to all of the pawnbrokers and other jewelers in the area, that they can get an xrf test done. Perhaps offer something like this -
1-9 Item $5ea
10 - 20 items $4ea
20+ $3
Or something to that effect, plus you use the machine when purchasing for yourself.
The other option may be to buy one in a cooperative so the cost is not so large to one individual.
Maybe some local stackers may put in $100 or $1,000 for X amount of tests as example ? Not sure what would be a good figure, but other dealers in your region may be interested in a share of the machine ?
What I would do is if you have some knowledge and contacts in jewelry stores, offer a service to all of the pawnbrokers and other jewelers in the area, that they can get an xrf test done. Perhaps offer something like this -
1-9 Item $5ea
10 - 20 items $4ea
20+ $3
Or something to that effect, plus you use the machine when purchasing for yourself.
The other option may be to buy one in a cooperative so the cost is not so large to one individual.
Maybe some local stackers may put in $100 or $1,000 for X amount of tests as example ? Not sure what would be a good figure, but other dealers in your region may be interested in a share of the machine ?
I think it's a bit rich expecting this service for free. You have to pay something for imposing on the time and equipment of other people who are in business to make a living.
I haven't had to pay so far however two items is the most I have asked for an XRF and I made sure I bought something to return the favor.
Got a bunch of tiny 1gram size nuggets I want to list soon and if I have to pay even $3 per test, it's just not profitable
I haven't had to pay so far however two items is the most I have asked for an XRF and I made sure I bought something to return the favor.
Got a bunch of tiny 1gram size nuggets I want to list soon and if I have to pay even $3 per test, it's just not profitable
Aurora et luna said:
If they are all from the same batch, you should feel pretty comfortable doing a random batch of X like QA testing.
You answered your own question as well, you made sure their was something in it for both of you. Likewise if they trade or sell the test is free. If they don't a $5/$10 charge applies, they keep the report ?
If the owner wanted to recoup his money he would be better off charging an extra 10c an ounce or something & recouping it that way rather than slugging customers for it on the spot & looking like a pennypinching cheaparse. I think people that expect to be paid everytime they move a muscle lose more money than they would make for the couple of minutes in word of mouth lost business.Aurora et luna said:
I do agree with you on the giving them something for their trouble though if your a repeat user . In my experience a most people are more than fair & realise that you've done them a favour & reward you for it . What goes around comes around
like packing up twenty ounces for a customer that went there because through word of mouth they were easy & fair to deal with .Nugget said:
I have way more than that in tools but dont expect others to pay for them .
To me its like a bobcat driver saying i got a new machine & telling every customer theres a $5 extra charge to pay for it on top of the hourly rate .
Or a machinist at the engineering shop doing the same ..Its your tools of the trade & you cant expect others to pay for it imo.
If you have a specialty business doing XRFing & thats all you do i would understand but expecting customers to pay for your tools is outrageous. & anyone that charges for a few minutes work is a bum & should be deleted from your list of people to use for services again imo
renovator said:
EDITED
You do pay in those examples that you gave. You give those people your business because they have those tools. You do expect other people to pay for your tools in the way that they hire you / buy your goods because you are able to use those tools. A bobcat driver without a bobcat is a labourer. A machinist without machines is a labourer. A bullion dealer that say's "That Sovereign that you are selling is a fake because it fails the Fisch test, the antique scale test and the XRF say's it's gold content is XX%" is streets ahead of the dealer that say's "Hmm, this doesn't quite look right", conversely I know who I'd buy from a dealer that shows the Sovereign passing the Fisch test & provides XRF test over the one that expects you to trust them.... Just sayin'
What about those that expect you to work for free (something for nothing)? What about them?
Now if it's a business I should imagine it's something like "When you are buying off or selling to me the bullion I sell is all XRF tested in front of you". To come in off the street and expect it for free is a bit rich, however a business may do so for regular customers, someone that they hope to turn into a customer.
Scenario
Two businesses, A and B. Both buy and sell PMs. Neither has an XRF.
Business A buys an XRF and decides to recoup valuable time and $30000 outlay by charging $5 a test. Customers are ok with this as the service is not available from other places like Business B. Business A even gets Business B and some of their customers paying for tests.
After a few months Business B decides that they are spending too much on testing and losing to many customers to Business A and buys an XRF. They see that it is a great device and something that customers obviously are attracted to. In order to attract lost customers and more business they decide to offer free XRF testing and depreciate and write off the $30000 as a business expense rather than charging per test.
Business B ends up with most of their their lost customers (saying "gee, thanks for free testing. Business A's been charging me for the same service and telling me how valuable their machine and time is." type things) as well as new ones who have stuff they want tested but reckon charging for tests is a bit rich so were not customers of Business A.
I would rather be Business B.
Two businesses, A and B. Both buy and sell PMs. Neither has an XRF.
Business A buys an XRF and decides to recoup valuable time and $30000 outlay by charging $5 a test. Customers are ok with this as the service is not available from other places like Business B. Business A even gets Business B and some of their customers paying for tests.
After a few months Business B decides that they are spending too much on testing and losing to many customers to Business A and buys an XRF. They see that it is a great device and something that customers obviously are attracted to. In order to attract lost customers and more business they decide to offer free XRF testing and depreciate and write off the $30000 as a business expense rather than charging per test.
Business B ends up with most of their their lost customers (saying "gee, thanks for free testing. Business A's been charging me for the same service and telling me how valuable their machine and time is." type things) as well as new ones who have stuff they want tested but reckon charging for tests is a bit rich so were not customers of Business A.
I would rather be Business B.