What is a pawnbroker? A pawnbroker is basically a business or a person that provides safe and secure loans to people with personal items used as collateral. The secure loans aspect is what makes the pawn industry hot. Businesses like pawn broking are booming across the industry because of unstable economic conditions. Banks are tightening their belts, so individuals and families are pawning items for cash to pay bills.
The pawnshop business model, by nature, is recession-proof. For over 25 years, we here at cash4jewelrynow.com have dedicated our time to learning the secrets to running a successful pawnshop. As a pawnshop that has been serving Metropolitan New York, we could tell you that it can be an extremely interesting and lucrative venture, as many other shoppers would agree.
There are a few ways to make money as a pawnbroker:
- Making Loans – The first is to make a loan on a valuable item that a customer brings in. If the customer defaults, then you keep their item.
- Direct Purchase – Another way to make money is by making a direct offer to purchase the item straight from the customer. The most common reason why you would want to directly purchase an item is so that you could resell it at your shop, or perhaps ship the item out to a wholesaler, such as a smelter or raw materials dealer.
- Selling Merchandise – Auxiliary operations would be to sell new or used items as you see fit in the store.
We’ve seen change over the years, not only here in the United States, but all over the world. Pawnbrokers and the act of pawning have been around for over three thousand years. It first appeared in China and has since spread around the globe. It is nothing new; it is a viable and respectable business to be in.
We’ve seen tens of thousands of items brought here in cash4jewelrynow.com. And we have to say, it never gets boring because you never know what the next customer is going to bring in.
Aside from the unique, or hard to sell items that may be of value, the real money, in most cases, are items such as jewelry, electronics such as TVs, car stereos, speakers, computers, and video games. Also, there are DVD movies, music CDs, and musical instruments–often popular musical instruments like electric guitars, basses, keyboards, saxophones, drums, and trumpets. There are also coins, various collectible like toy sports cars and hand tools.
People often ask us how difficult it is to open a pawnshop. And our response always has, and will be, that it is extremely easy. You just need to follow the way business start-ups do it, whether you have capital or not. You shouldn’t go into the pawnbroker business blindfolded or rely on a trial and error strategy. Rather, pick up a guide that will provide all the steps you need to take in order to setup your own pawnshop, from local to state licenses, to capital, choosing a location, identifying the item’s value, and screening for stolen merchandise. You need to know the inner workings of a pawnshop in order to truly understand and profit from one.
The pawnbroker industry is an art, in a sense that you can focus on, or base your business model specific to your area. The fact is, in order to be successful in this business, you need to keep an open mind and just have fun. Once you do those things, the money will keep rolling in. A six-figure a year income is typical in this business, even though the business–your pawnshop–itself is just three years old.
However, what we here at cash4jewelrynow.com can emphasize enough is the importance of shock presentation. This can be achieved by offering unique items that will capture the interest of passersby. In other words, you can grab the customer’s attention by displaying eye-catching merchandise. If you can do that, your sales will increase.
If you can draw and get them into your store, probability is high that would give word-of-mouth referrals to other potential customers who may want to purchase, pawn, or trade items. Anyone can start a pawnbroker business, as long as they have the will to make deals, know how to determine the value of an item, and know how to make an offer to the customer. We here at cash4jewelrynow.com specifically provides top dollar loans on all types of jewelry and watches. If you’re looking for cash, but do not want to part with your precious jewelry, watch, then we’re the right pawnbroker for you. Visit us at cash4jewelrynow.com.