Cash4Gold (sometimes styled in ads as Cash4Gold.com ) works as a mail-in refinery that buys gold, silver and platinum especially from jewelry.
The original ownership team of Cash4Gold.com was hit by a complaint by the Better Business Bureau and filed for bankruptcy after excessive spending on major advertising efforts including ads aired during the Super Bowl. In 2012, the company's assets are bought by Direct Holdings Global. The company changed its name in an effort to improve the Better Business Bureau rankings; However, complaints persist about their questionable business practices.
Video Cash4Gold
Process
Consumers request a pre-paid envelope known as the "Refiner Pack" online or by phone. Customers place their precious gold/precious metal in packaging and deliver it to the Cash4Gold refinery in Florida. A Cash4Gold employee weighs things, photographing them and assessing items using tools such as acid, X-ray and electronic testing devices. They then make customers a financial offer for the delivered goods, and pass on the checks for the specified value to the customer. If a customer declines this offer, they have 10 days from the date on check to request that their jewelry be returned.
Many people complain about the fairness of this process and the gold rating they send to the company. Every effort is made to ensure that all customers are fully aware of the appraisal process, and have the opportunity to decline the financial offer within the stipulated time frame.
Cash4Gold also buys diamonds, but will not pay for additional gemstones and recommend that they be removed from jewelry before sending jewelry for evaluation.
Maps Cash4Gold
Security measure
To ensure customers are the legitimate owners of jewelry shipped, Florida passes laws intended to regulate the online gold buying industry. Cash4Gold is working with Florida legislators to draft laws. The new law also requires companies to obtain a SIM number and swearing statement from customers stating they have the items they sell. The seller must be at least 21 years of age and the sender's address verified.
CNN visited Cash4Gold headquarters in March 2010 to see the company's method of collecting, processing and melting gold jewelry. During the visit, the steps shown included a customer background check, jewelry separation, then processing items for evaluation before sending their customers to check and melt items into gold bullion. In an advanced article written in 2012, CNN Money describes some of the business practices that led to the bankruptcy of the company in the same year.
Company history
Establishment
Green Bullion Financial Services LLC was formed in April 2007, and traded under the principle of Cash4Gold (sometimes styled in ads as Cash4Gold.com ) , finally located at 2800 Gateway Drive, Pompano Beach, Florida 33069, and comes from Albar Precious Metal Refining, made by former CEO Jeff Aronson. Due to the rapid growth of their trade and operations during late 2008 and until the first quarter of 2009, there is a need to address some specific operating problems. Future investors are concerned that the Company will struggle to process the estimated volume of the Refiners Package. So the consulting firm (Synergetics Installations Worldwide Inc.), based in Portsmouth, New Hampshire, is invited to analyze and then improve the current operating process, with a view to meeting customer service levels and processing significantly higher volumes. The first requirement is to relocate the entire business from a relatively small place to intermediate and secure temporary sites, pending redevelopment of existing commercial/industrial units in the Pompano Beach area, which later became their US headquarters. Improved processing facilities and procedures, as well as customer call center operations and administrative functions. After the level of customer service and performance of this process has stabilized in US operations, the Company launched the proposition of Cash4Gold to the UK, then to other mainland European countries. David Knight, SVP for international marketing and expansion, joined the team in July 2009 from eBay. Shawn Kernes, former Chief Technology Officer at StubHub, is the company's COO.
In 2006, Cash4Gold had sales of $ 40 million with 14 employees. In May 2009, the company employed about 300 people with nearly 800,000 customer transactions. In 2010, the company has received more than 1,700 ounces (48 kg) of gold per day with 94% of respondents receiving cash offers. The quick growth of Cash4Gold is based on some clear beliefs: first, that the majority of potential customers prefer to monetize their valuables through the anonymity of using the Processor Package, rather than visiting a local pawnshop: second, that the majority of customers are ready to accept the distinction between the Cash4Gold assessment and their local pawnshops for pre-visit interest to their local pawnshops: and lastly, that the use of both mass marketing and targets through all forms of media highlights this opportunity for many at that time experienced a decline in both North America and the global economy.
Controversy
Under Jeff Aronson's leadership, the company claims to pay between 20-80% of the item's melting value to the seller even though independent reports show less than 20% of the value is the norm. The norm for the gold buying industry is the seller must be paid more than 90% of the value of gold.
Channel 10 News in San Diego conducts an investigation into which they send in a ring containing more than 2 grams of gold worth $ 17 in weight to three different sites. Payment from Cash4Gold is $ 7.91. Consumer Reports, using the "mystery shopper" team, sent 24 pendants and identical gold chains (bought for $ 175 each) to Cash4Gold.com and its competitors. The melting value determined from the jewelry is calculated at about $ 70 every time gold is above $ 900 per ounce. Compared to Pawnshop stores and Jewelry store quotes (which range from $ 25 to $ 50), Cash4Gold.com quotes between $ 7.60 ~ $ 12.72 melting values ​​for jewelry. Similar low quotes are also given by GoldKit Cash4Gold.com competitors (about $ 7.81 ~ $ 20.59) and GoldPaq (about $ 8.22 ~ $ 13.11).
When Rob Cockerham, a blogger, detailed a drastic change in Cash4Gold's assessment of jewelry after a complaint was made about a low initial assessment, search engine optimization consultants offered "several thousand dollars" to Rob to remove criticism. Cash4Gold CEO Jeff Aronson stated that they had nothing to do with the incident, although the consultant stated "everyone (in Cash4Gold) is very aware of what is going on." On the Cash4Gold blog, the company then posted a "clarification statement" alleged by the consultant that contradicts the quote: "Cash4Gold does not know all the tactics being used (sic) in my reputation management services."
After whistleblower posted on ComplaintsBoard.com discussed the workings of Cash4Gold.com, The Consumerist and other blogs were hit with a libel suit by Cash4Gold.com after posting. In September 2009, Cash4Gold.com dropped the Consumerist from their lawsuit.
New Bankruptcy and Management
Cash4Gold filed for bankruptcy in July 2012 with its assets purchased by Direct Holdings Global for $ 440,000.
Direct Holdings Global made major changes, including new operating processes and customer service centers.
Ads
Super Bowl XLIII Ads
The Super Bowl XLIII ads feature Ed McMahon and MC Hammer, both famous for their financial problems later in their careers. A 30-second ad was produced and produced by Havas Edge (formerly known as Euro RSCG Edge) and directed by Super Bowl advertising veterans, Bryan Buckley and Hungry Man Productions. The source puts a charge for a 30-second ad at $ 2.4- $ 3 million. Cash4Gold also plays a 60-second ad on NBC's pre-match event, making it the first direct response advertiser in the venue.
This place received considerable news coverage and was seen by many commentators as a sign of the lowest economic situation in the United States at the time it was aired. The CNBC Sports Biz blog has been called Cash4Gold's place as "the most relevant ad in the entire Super Bowl."
Commercial Sponsors
In the past, Cash4Gold.com has signed sponsorships with Milwaukee Bucks, a multi-car sponsor with JD Motorsports from NASCAR, Jim Dunn Racing from NHRA, and MMA competitor Randy 'The Natural' Couture.
In addition to Randy Couture's sponsorship, Cash4Gold also sponsors his charity, Xtreme Couture G.I. A foundation that respects US Armed Forces veterans
The "Train the Troops" event sponsored by Cash4Gold at Camp Pendleton, Marine Corps Air Station Miramar and Marine Corps Air Station Yuma. This event brings professional MMA fighters along with the Marines to help them prepare for placement. Three "Train The Troops" events were held at three Marine bases and included 12 pro-combatants and trainers, as well as hundreds of Marines. There are six four-hour training sessions.
Cash4Gold signed a one-year contract with UCMMA for their 2010 event, which added their interest in Mixed Martial Arts and sponsorship deals with Cristiane Santos ("The Cyborg"), Brandon Vera, Kennedy's Team, Gray Maynard, Leonard Garcia, and Damacio Page. UCMMA is a UK-based MMA organization and has a history of over 40 high profile, successful events.
MC Hammer and Cash4Gold partnership partners are working together to contribute resources to "Feed the Child" to assist recovery efforts after storms in the Philippines, American Samoa, Indonesia and Georgia in the US. They also distributed food to families affected by the recession in the Stockton County, California.
In December 2009, MC Hammer and Cash4Gold helped "Feed the Children" launch Breakfast2Live - "a new campaign to persuade schools to wear morning snacks to raise cash for developing countries and support more breakfast clubs".
For the 2009 holiday season, Cash4Gold and MC Hammer shared toys at the "Toys for Tots and Teenagers" show at Broward County, Florida Sheriff Office. MC Hammer and Cash4Gold also helped Essie "Big Mama" Reed to give-away her annual toy, presenting hundreds of pre-selected children from a local nursery school with gifts and photo shoots. They partner with Fort Lauderdale Police Department and Fort Lauderdale Park & ​​amp; Recreation.
Related business
Land Buyers
Cash4Gold launched a new division in 2009 called "The Estate Buyer" serving individuals who sell high-end jewelry from brand-name manufacturers. Unlike Cash4Gold, "The Estate Buyer" does not base its bid on the melting value of gold in an item, but after reselling the goods.
Operations for Housing Buyers not resumed after the 2012 bankruptcy.
OroPorDinero.com
Cash4Gold.com also offers a Spanish-language website called "OroPorDinero.com" that makes its services more accessible to Spanish speakers.
United Kingdom
Founded in 2009, Green Bullion Europe Ltd. launched their Cash4Gold service in July that year in the UK, operating from a small office/processing site in Sheffield, the volume of Refiners Package received in the first few weeks was very low, but then expanded rapidly when The company moved to a new administration and processing site in Catcliffe, near Sheffield. In the following month, they received over 4,000 packages. More importantly, the new Company earns cash within 12 weeks of starting trading, a remarkable commercial achievement for 'start-up'. The new location is central to UK operations, and the company's expansion into Europe. In 2012, the company is cited by the Standard Advertising Authority for misleading advertising.
Various British media organizations have tested the Cash4Gold UK services and found their ratings well below fair value assessed independently. For example, in November 2009, the BBC Newsbeat program was awarded gold by an independent gold bullion dealer in Mayfair, London, about £ 300. Three jewelry sellers at Hatton Garden then offered the same amount for the same collection ; The Cash4Gold score check is £ 63, raised to Ã, £ 100 when researchers call to get their gold back.
Parody
Cash4Gold has attracted a parody of their business model and advertising. The Cats4Gold website parodies Cash4Gold by encouraging visitors to post their Gold in exchange for a cat or kitten (depending on the amount of gold delivered). South Park and That Mitchell and Webb Look also parodied Cash4Gold and its peers.
References
External links
- Cash4Gold.com Official Website
- Patriot Ledger Shop Around Before Melting Your Gold
Source of the article : Wikipedia
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