Want to know the secret behind pawn shop prices?
Use a free pawn shop price calculator. Knowing how pawn shops determine prices is key to getting a good deal at a pawn shop near you. Use the only consumer pawn calculator free by selecting the pawn calculator or jewelry pawn calculator on our menu.
Consider this when visiting your nearest pawn shop:
1) The item’s re-sale value
This is probably the most important variable in determining pawn shop prices. Do pawn shops take in electronics? Yes most do. Do pawn shops take in jewelry & diamonds? Yes most do.
For electronics and general merchandise pawn shops search online for average prices and estimate demand online, and in-store, with their own sales experience. For jewelry & diamonds pawn shops check current stock prices of precious metals and stones and offer you a higher percentage of its value than that of other merchandise.
2) Depreciation
To understand how these businesses determine pawn shop price we have to make a distinction between jewelry and general merchandise when dealing with a pawn shop. The rule of thumb is general merchandise depreciates almost always – and gold, platinum, and silver go up and down in value unpredictably. From the pawn shop owner’s perspective betting on pawn loans can be quite risky. Keep this in mind and expect about 30-60% of your item’s resale value.
3) The Pawn Shop Business Model
The pawn shop business model is straightforward.
A. They evaluate your item’s worth.
B. They offer you a portion of that value
C. If you don’t pay-back they sell it
Pawn shops have to leave room on your item’s to make a profit on either interest or the sale of your item. They have to pay their employees and operation costs to stay in business. In most cases pawn shops rather you go back and redeem your item out of pawn to collect the interest charges. Selling used merchandise is more difficult than selling new stuff.
4) Customer Loyalty at a Pawn Shop
Customer loyalty can make a big difference in pawn shop prices offered to you. Pawn shops are ready to lend more money to people who have a track-record of redeeming their loans. Remember a pawn shop would rather you get your item back so they can collect interest charges. And if you generally return for your item they perceive a lower risk of default. Selling merchandise is a whole other task pawn shops would rather avoid.
Consider this if you plan on selling to your local pawn shop:
A. The item’s resale value
B. Demand for the item
C. How fast you need then money
Pawn shops sometimes have a bad rap. But knowing how pawn shops determine prices is key. Help us out by letting your friends and family know about this resource. Check out our social links and share one of our pages. Find a local pawn shop or use a free pawn shop price calculator on the menu of our site. Thanks!
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