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How to Successfully Pawn or Buy an Item at the Pawn Shop!

Do you want to pawn it or sell it?

How does a pawn shop work? Most people are just discovering pawn shops due to mainstream media shows such as “Hardcore Pawn”. Pawn shops are not new to society; in fact they have been around for more than 3,000 years. Today’s pawn shops operate like mini, non-traditional banks for people of all walks of life. In the United States there are about 12,000 pawnbrokers who deal with a wide variety of items including jewelry, watches, electronics, fur coats, art collections, and more.

Do you know the difference between pawning and selling an item? If you pawn your item, you are using that item as collateral for a cash loan. The pawnbroker will in turn, expect you to repay the principal loan plus interest and fees, within 3 to 4 months (typically), before you receive your item back.

So the difference is if you are pawning your item, you intend to get it back, versus selling the item outright.

If your pawn loan is not repaid on time, the pawn shop takes ownership of your item and offers it for resale. The percentage of people who default on pawn loans is much lower than most expect: approximately 15 -18 %.

Pawning or selling items in a pawn shop can have good deals for both parties involved, however, that’s not always the case. Here are some tips for selling and buying at a pawn shop.

Advice on pawning an item:

Locate the right pawn shop: Research pawn shops in your area to see what other people are saying about them. What kind of reputation do they have? Also, look at what the pawn shop specializes in; for example: antiques, jewelry, tools, household items, etc. You want to find shops that have experience with the type of item you have.
Are you pawning or selling? The typical pawn shop will give you the choice, so be educated on the positives and negatives of each. Your decision about pawning should be based on the value you place on your item and your ability to repay the loan and fees by the due date.
Negotiate: Pawnbrokers are resellers, not collectors – even though the TV shows may lead you to believe they are. Keep in mind that the $1,500 appraisal you have on your tennis bracelet is not the price you will get for it at a pawn shop. Think of a minimum price you would like for your item before you start negotiating and that way you don’t make a snap decision you may regret later.
Be ready to prove your item: Bring along any receipts or current appraisals you may have on your item. If your item needs a power chord or batteries, make sure you have them so you can demonstrate its working condition. And it is always helpful to have original packaging.
Prepare your item: Dust on your item is a deterrent even if it is an antique. Bring your item to the pawn shop in the condition you would like it to be in if you were purchasing it: a little spit and polish go a long way!
Pay on time: Remember if you pawn your item, it is a loan and if it is not paid on time, you will lose your item. So make sure you pay the loan and fees on time per your agreement. Keep in mind that forfeiting your item or extending the loan may carry additional charges.

Advice on buying a pawned item:

Research the item: It’s not important what the item cost new, what matters is what the current market value is: what is someone willing to pay for it today. Some items hold their value over time better than others. Have a good idea of your item’s value in its current condition before you make a purchase.
Negotiate: A sticker price on the item should be considered a starting point. Pawnbrokers are good negotiators so make sure you have a spending limit in mind before you begin haggling. Another thing to understand is, the longer a pawn shop has an item in their store, the more they may be willing to lower the price.
Read the fine print: Guarantees of authenticity are not always offered in a pawn shop. Some stores have a lenient return policy, yet others will not take returns at all. Policies can vary widely so it is important to read them carefully before you buy.
Pay with cash: Paying with cash may allow the pawnbroker to accept your offer. By using cash, you will also be able to stay within your set spending limits and not accrue any credit card debt.

Written by Don Battis, CEO of Pawntique. For more information regarding the online pawn shop visit Pawntique.

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Resale Shopping: Saving Big on Second Hand

While couponing and timing sales can be a good money saving strategy when it comes to bargain shopping, don’t forget about the opportunities at resale stores, where you can also shop for brand names. Sometimes it can take a while to be effective at shopping thrift, but you’re bound to found something beautiful and functional for your home or wardrobe. Another benefit of shopping charity thrift stores is that you’re also supporting worthy organizations that help your less fortunate neighbors.

To develop a good second-hand store strategy, you should have a good understanding of the differences between the various types of stores that sell second-hand goods. For example, you may not find many higher end brands at standard thrift stores, but consignment stores often sell designer clothes in good condition.

Here’s a brief overview of the types of Second Hand Stores:

Consignment Shops – Consignment stores operate very differently than a regular thrift store. They act as a “middleman” between the owner of an item and a buyer. People bring in items to the store and if the item sells, the consignment store splits the pre-determined proceeds with its owner.

Antique Shops - These businesses generally deal in older housewares and decor, and some sell retro clothing. Some antique or vintage shops specialize in items from a particular time period, while others offer a more general selection of older items.

Pawn Shops – Pawn Shops often sell higher-end items, such as fine jewelry, electronics, and musical instruments, though some sell all types of goods. Don’t expect to find huge discounts at pawn shops, but you can get some good deals on music and electronics gear.

Resale Shops - Similar to nonprofit thrift stores (Goodwill Stores for example), resale shops typically operate under the umbrella of a charitable organization. Resale shops are smaller than their thrift store counterparts, and tend to have a better quality of items for sale than what you can find at a thrift store. Resale shops can be a bit more selective than thrift shops when it comes to donations.

Thrift Shops – Thrift Shops can sometimes be operated by charities and for-profit businesses, selling donated or used goods for a fraction of their original price. Some of these stores specialize in one type of item such as books or records, while others may sell everything from bookcases to shoes to kitchenware. The quality of items sold at these stores varies, but you can find like-new and brand new items on their shelves and racks after a diligent search.

Now, some tips for Thrift Shopping:

Choosing a Store - Second hand stores often specialize and you may find that the quality and style of the goods match the community where the store is located. When shopping for designer clothing, target a consignment store or a for-profit second-hand store in an affluent community.

Bring a Friend – It’s always more fun to shop with a friend and knowing what your friend is looking for can be a fun teamwork shopping strategy.

Store Policies - Many second hand stores have policies about returns or exchanges. Expect all sales to be final; most second-hand stores simply won’t consider a return or an exchange, even if an item is defective.

Sales - Second hand stores can have sales, just like traditional retailers. Sign up for stores’ email newsletter to find out when these sales happen or visit their website to be updated on upcoming savings opportunities.

Inspect Items - You typically can’t return or exchange items at most thrift stores, even if defective or broken. Prepare to test items in the store, especially when you plan to buy electronics.

Compare prices – When trying to determine the best value of an item, visit online sites that hold auctions or list virtual yard sales websites to compare prices before making a final purchase.

Consider Alterations – Be sure to inspect items for small tears or alternations that may be needed. Being able to determine if you can repair a small tear or alter the size of the clothing before purchasing will save you time and money.

A healthy approach to shopping is to foster a thrifty attitude towards spending by considering what you need in resale shops before shopping for your next purchase. You can save big when shopping second hand stores!

What are your best second hand finds? Share them by commenting below!

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What Do You Want To Do? Sell It or Pawn It?

Hmm…What’s the difference?

Rick Harrison, from the popular show Pawn Stars, always asks his customers, “So, what do you want to do? Sell it or pawn it?”

Great question! This is probably the most asked question in a pawn shop.

A pawn is like a loan. You bring your item to the pawn shop and get cash, but only for a short period of time. In a month or so, you come back to the pawn shop and buy it back for the original amount plus a fee. If, in the meantime, something comes up and you are unable to buy your asset back, then the pawn shop keeps your item and that’s the end of it. Or maybe you decide that you just don’t want it back. No problem. You are under no obligation to pay anything. You just forfeit your ownership of the item and the pawn broker will not hound you about it.

If you want to sell your item, just tell the pawn broker and he will make you an offer to buy it from you. It all hinges on YOUR preference as to whether you want the opportunity to get the item back. If you are unsure, the pawn broker would prefer to buy it from you. That way he can turn around and immediately resell it in his retail shop and make a profit on the transaction. That is a better deal for the pawn broker than making you a pawn loan on something that you probably won’t be coming back for. The law states the pawn broker must hold that item for the entire loan period and then a grace period before he can declare the pawn loan a forfeiture. Then he must wait another holding period before he can put it out for resale. Meanwhile, he has his money tied up and he can’t even begin to list it for sale.

When you walk into any pawn shop, the pawn broker is qualifying you, not your item. He’s trying to figure out, “How much emotional attachment do you have to your item?”

This is important because it helps him determine if you are going to come back to redeem your item or not. Pawn shops make money by investing in pawn loans and collecting pawn fees. If the customer forfeits the item, he still has his money tied up but won’t generate any profit until he can sell it and get a profit back his investment. If the pawn broker doesn’t think you are coming back for your item, he really doesn’t want to make a loan to you so he will make you a low offer.

If you even ask the question, “Which option will get me more money? Pawn it or sell it?”, you are telling the pawn broker you are indifferent about owning the item and probably won’t be redeeming it. In that case, don’t expect a great loan deal. You’ll likely be better off selling.

So what do you want to do? Sell it or pawn it?

Unless you received one of these lovely Louis Vuitton pieces from their Summer EPI leather collection as a special gift from a loved one and you would cry if you let them go, just sell them. Chances are good that in the future, there will be new designs and new styles that you would like even better than these.

That Rolex or other fine timepiece you own is a perfect candidate for a pawn loan. They never go out of style and you can use it as collateral for a pawn loan over and over. And don’t forget, you only have to borrow as much as you need. If you only need $500, only take that much. You can always come back and increase the amount.

Almost all types of consumer electronic devices should just be sold. Computers, cell phones, iPods, tablets, DVD players, etc. all become obsolete very quickly. The technology for these items changes so quickly that by the time you are getting your device back from the pawn shop; there are probably new models out. You’ll either want to buy the updated one or buy the obsolete model for less than it would cost to get yours back.

If you have questions about whether to pawn it or sell it, post in the comments below. We’ll see what our readers think.

Post by Don Battis

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How Much is My Diamond Worth at a Pawn Shop?

Even if you have an insurance appraisal, the whole diamond pricing process is confusing. This infographic by Pawntique, the online pawn shop, explains what you should expect to get for your diamond if you sell it or pawn it.

Ever wonder why a jeweler is selling a piece for a certain price, yet it is appraised for twice the amount? If the jewelry were appraised for a higher amount then why wouldn’t the jeweler price the piece in regards to what it is appraised for? After all, the appraised value is what jewelers are telling you your future purchase is worth.

The jewelry market tends to have the highest markup in the retail business and it seems this industry deliberately attempts to confuse the public. So in an attempt to demystify diamond valuations, we created an infographic to help our clients understand just how much they really can get when selling their diamonds.

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Who Knew You Could Find Louis at the Pawn Shop?!

Rick Harrison, star of the hit series Pawn Stars, is famous for saying, “You never know what’s going to come through that door!” The thrill and excitement of working in a pawn shop is the fact that interesting items are always coming into the shop!

Most people probably think of pawn shop items consisting of jewelry, electronics, and artwork. These items don’t usually cause too much excitement or get people to say “Wow! I have never seen that before!” Think again because, at our online pawn shop, we had some pretty unique and unusual items come though our door this past week that we would like to share with you!

What is black inside and out, built in 1984, has traveled the equivalent of 5 times around the earth, has 6 wheels, and drives on the wrong side of the road? Answer: The London Taxi cab in our warehouse. This wonderfully restored cabbie from across the pond, built almost 30 years ago, runs and drives like it could go for another 130,000 miles. The interior room of this car makes a New York yellow cab look like a Mini Cooper. The amount of Louis Vuitton luggage you can fit in the front row space, where a U.S. driver seat would typically be, is impressive. This is a 4 cylinder diesel car, with 127,351 miles, made by London Taxi International, and was recently reconditioned.

We also received a matching set of Louis Vuitton Luggage. There are two pieces of hard sided luggage, an Alzer 70, and a cosmetic train case, as well as a Pegase 65 rolling bag. We took a photo of them being loaded into the London taxicab because we imagined that would be a very luxurious way to travel. The lady who pawned them didn’t want to sell them because they were a gift from her late husband. She needed cash to pay a tax bill and expects to have it repaid in a couple months.

Have you ever owned a solid bar of silver? I had only seen them in pictures and on TV, until a few days ago. Earlier this week we had a women come in with a silver bar stuffed inside an old ski gloved. The bar was originally purchased sometime in the mid-1980′s when silver was trading around $13 an ounce. The day we wrote up the pawn, silver was trading at $34 an ounce. That means that this bar, which is 100 ounces, is worth $3400.

An interesting thing about a solid bar of .999% pure silver is its weight. When you look at one of these bars, you expect it is going to weigh 20 or 30 pounds, however, it really only weighs 6.8 pounds. Quite deceiving. How did I know that it was in fact real silver? Just like the acid test jewelers and pawn shops use to verify what karat gold an item might be made of, we did the same with this silver bar. We applied a single drop of the solution, directly on the bar and waited a few seconds for the result.

A light green color would have meant that we only had a bar of 65-75% pure silver, but our solution turned a creamy color. This indicated that our silver was 100% pure.

Although they didn’t come in last week, one of our favorite items is a pair of seats from the Old Tiger Stadium in Detroit, Michigan. This stadium is no longer standing, but still has a baseball diamond in the original location. The ball field is located on the corner of Michigan and Trumbull Avenues in Detroit, Michigan and baseball has been played at that location since 1895. Tiger stadium was opened on April 20, 1912, the same day Fenway Park opened for the Boston Red Sox.

The Detroit Tigers played their last game there on September 27, 1999. Now fans of this team have sought out to own a piece of the stadium, more specifically to own one of the old wooden seats that were installed sometime in the 1930-1940′s.

One of our founders, Tom Persing, grew up in Michigan and is Tigers fan. You can imagine how exited he was when a customer wanted to pawn, not one, but two original seats from the old ballpark.

Now, can you imagine his elation when our client asked us to sell the seats in order to pay off their loan? Let’s just say that even though they are for sale, I doubt they’ll ever leave our shop.

If you would like to be notified if any of these items ever come “out of pawn” and up for sale, please feel free to email me.

Do you have photos of interesting items found at pawn shops? If so, send us your email and we will grant your permission to “pin” on our boards!

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History of the Pawn Shop Business

Last year we published a great blog article on the History of Pawn Shops when we unveiled our Pawn Shop Directory on our website where people could easily locate reputable Pawnbroker services in their area. Since the business of pawning is so fascinating to so many, we decided to share an awesome infographic from our friends at Pawngo, the first full-service online Pawn Shop in the United States, which launched in June 2011.

Check out this fun Infographic on the History of Pawning:

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Buying Used Goods Saves the Planet

Buying second hand goods is the most friendly environment choice any consumer can make. Whether it’s books, clothes, furniture, decorations, media or kids toys, you’re sure to do your part for the environment by buying used.

Today we’ve outlined several reasons why buying used goods should always be your first option if you’re adamant about doing your part to conserve this precious planet’s resources.

Less Expensive – Purchasing used goods can be up to 90% less expensive than buying new items. Your purchasing power will go farther by buying pre-owned goods and if you’re a savvy shopper, you can probably score items that are in perfect or near-perfect condition – no one will ever know they’re used unless you tell them. Also, if you’re buying at a local garage sale or an item you saw online from a guy across town, you can skip paying any sales tax!

Conserving Energy – All products require a certain amount of resources to be consumed, from manufacturing to delivery. This includes farming cotton, clear-cutting forests, mining metals or pumping oil. We’ve all witnessed the horrible environmental consequences when resources are pumped, scraped and cut from our planet. Fortunately, buying used goods doesn’t require any new resources to be consumed.
Pollution-Free Lifestyle – Production of “stuff” just creates more pollution, including toxic chemicals, pesticides and carbon emissions. Did you know one new cotton T-Shirt is responsible for nearly 5 ounces of pesticides to be dumped into the cotton fields? One new mid-size car is responsible for 30,000 pounds of carbon dioxide emitted into the atmosphere.
Forget the Packaging – New products require packaging, from shrink-wrap, plastic hard casing, cardboard boxes and styrofoam. The packaging materials require energy to create in addition to the production of the product. Not all the packaging is recyclable or reusable, so it gets tossed, contributing to more waste. Not only is it frustrating trying to open the packaging, but disposing of it in an environmentally friendly way is not always an option. However, the bright side is if you shop thrift stores, or buy second hand items from your neighbors next door or across town, you don’t have to deal with packaging!
Supporting Local Economies – Did you know buying used goods extends the life of the product and the planet and supports your local economy? Think about it, most thrift shops support a cause, so your money not only buys you a cool new “used” item, but also contributes to the well-being of others supported by the business. This is why shopping for items at your local yard sales, tag sales, estate sales, flea markets, pawn shops and consignment shops is so important, and fun! Keeping your money in town supports local businesses and keeps it from contributing to corporate waste.

Being “Green” is in Vogue – Simply put, recycling is is king and you avoid having to figure out greenwashing claims made by corporations. The money you save by buying pre-owned goods from accessories to clothes, books and media, will stretch your dollar and you can then go to the organic grocery store and support your local farmers. Lastly, don’t feel bad about making certain purchases of “new” items such as appliances with extraordinary energy efficiency or hybrid automobiles. These items can reduce your carbon footprint.

What’s the last “used” product you purchased that you use on a regular basis?

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Feature Interview with Lou’s Jewelry & Pawn

We recently set out to learn more about some of the exciting current industry trends that have positively impacted Pawn Shop businesses across the country. Our feature interview is with Lou’s Jewelry & Pawn of Darby, PA. Here’s what the family owned and operated business had to say:

Tell us a little about your business and shop’s history…

“We’ve been family owned since 1914, started in Philadelphia by my father, Louis Myerson. I, Stanton Myerson, am second generation.”

What are some exciting industry trends you’ve noticed in the past couple years that have positively impacted yoru business?

“Without a doubt, the cable show “PAWNSTARS” has been a major positive influence in that it has brought the pawn industry on to Main Street. Together with difficult economic times, the banks not willing to lender money (unless of course you are in the position of not needing money, which defeats the purpose), home property values declining & over 8.5% unemployment, makes the pawn shop a reasonable & legal alternative for many people to get money, and fast.”

What negatives, if any, have you noticed in the Pawn Shop industry in the last couple of years?

“Many of the stereotypical negatives and misnomers have evaporated with the ‘new’ pawnbroking experience as see on the several Cable TV shows.” Stanton also says, “A huge negative is the increased governmental involvement in creating voluminous paperwork & reporting with respect to the Patriots Act, MSB Money Services Business, 1099s to customers who receive over $600 a year & now online reporting of otherwise personal data to a governmental database.”

Has your business grown since 2009 and if so, what are some of the major factors that have contributed to this positive growth?

“Our business is dynamic in the sense that we attempt to stay ahead of the industry. We are innovative and offer our clients the convenience of complete computerization, including digital pics of ID, merchandise & the transaction, guarding against security fraud & protecting our clients privacy.” Stanton also says maintaining competitiveness is key, too. “We understand the market & what items are valued. Therefore, we extend ourselves & offer the most the market will allow & still be profitable.” Lastly, Stanton says positive press has been tremendous. “Over the past 5 years, the press & other media have shown pawnbrokers and the industry in the best possible light.”

Where do you see things going for Pawn Shops in the next 5 years?

“Pawnshops will continue to grow in popularity due to the positive images in the media, programming on pawnbroking showing exactly what we do, the difficult economic times and the tightening of the credit markets where individuals have difficultly receiving loans.”

To learn more about Lou’s Jewelry & Pawn, check out their website.

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Tag Sell It featured on 9News Denver

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The Pawn Stars Share Household Items with Hidden Value

Pawn Shops making a “fierce comeback” in this economy!

Did you know that up until the 1950s, pawnshops were the main source of consumer credit in the country? At the Gold and Silver Pawn Shop in Las Vegas, home to the hit reality show “Pawn Stars” on History, business has soared in just the last couple of years.
Source: Yahoo Finance