Test Results Validate .82% Average Marketing Response Rate for Customers Requesting Priority Gold KitsADDISON, TX--(Marketwire - April 29, 2009) - Precious Metals Exchange Corp. (PINKSHEETS: PRMX) announced today that initial test marketing through its in-house marketing division, VolumeContact™, demonstrated response rates of .82% average from customers requesting Priority Gold Kits seeking to sell old gold and other precious metal items.
Garrett Vogel, President and Director of PRMX, stated, "Initial testing through VolumeContact™ shows a response rate of just less than 1%, and preliminary results suggest these response rates should be consistently achievable. The results will be significant in determining potential growth and revenue projections and establishing a realistic basis for projecting future requests for the Priority Gold Kits. These were only tests and resulted in requests for Priority Gold Kits, not actual precious metals received. The amount of metals returned with the kits is a critical volumetric driver. As tested, our projected cost of acquisition per customer could have been as low as $2.58 per request; in volume, projected costs could be as low as $1.00 per customer. Even in limited tests, VolumeContact™ represents the most cost effective method we are aware of for acquiring new customers in the online precious metal refining industry."
The Company's initial test results were determined by broadcasting audio commercials to potential consumers, with prompts to request a Priority Gold Kit for gold exchange. Test # 1 prompted 58 requests out of 6,773 potential consumers and resulted in a .85% call to action response rate. Test # 2 prompted 133 requests out of 16,452 contacted consumers and a .79% call to action response rate. Test # 2 was completed with just over 10 minutes of broadcasting. These tests were conducted in preparation for the national launch of www.CashOutMyGold.com.
Mr. Vogel continued, "Industry statistics peg the average pure gold content received in a gold kit at approximately .25 Troy Ounces, valued at about $225.00 at today's prices. Our ability to target one million or more live prospects per week wishing to sell gold jewelry could average our company 32,000 Priority Gold Kits per month through this method of marketing alone. If we converted all of those, that's approximately 8000 ounces of pure gold, generating gross monthly revenues of over $7.2 million. Obviously, we're not going to have a 100% conversion rate, but we expect to do better than our competitors based on our high pay-outs, and will hire staff as needed to handle the volume of customers we generate. Our electronic marketing equipment has high limits; we can make over 3 million calls per day and could conceivably contact up to 500,000 potential customers per day looking for gold buyers. Simply put, the power of numbers in direct marketing simply cannot be denied."
Precious Metals Exchange Corp. operates in the precious metals refining and recycling sector of the precious metals industry. The Company provides a convenient, secure and efficient method for customers to sell items containing precious metals. Targeted direct marketing is used to identify potential customers, and a highly automated fulfillment process to ensure their satisfaction through high payouts and quick service. The Company recycles customers' broken or unwanted jewelry and other items for gold, platinum and silver content, avoiding the risks and environmental costs of mining. For more corporate information, please visit www.preciousmetalsexchangecorp.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act") including the fourth quarter revenue and future growth. Additionally, words such as "seek," intend," "believe," "plan," "estimate," "expect," "anticipate" and other similar expressions are forward-looking statements within the meaning of the Act. Some or all of the events or results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include the future U.S. and global economies and the impact of competition. Precious Metals Exchange Corp. does not undertake any duty nor does it intend to update the results of these forward-looking statements.
For further information on Precious Metals Exchange Corp., please view www.pmecusa.com.
