Pawn shops provide simple financial opportunities for people. These businesses do help those who may not be able to access loans through tradition lenders such as banks and lending institutions. “Pawning” and item simply refers to making a loan based on using an asset as collateral. The loan amount is based on the value and potential resale value of the merchandise. Pawn shops also outright purchase merchandise. The buying option does assist those in need of money and a desire to get rid of unwanted belongings.
Would-be visitors to a pawn shop should realize something. Whether borrowing or selling, there are certain “Do’s” and “Do Not’s” associated with visiting a pawn shop. Understanding these points increases the chances the experience turns out to be a positive one.
Things to Do When Visiting a Pawn Shop
Rushing to a pawn shop without a little self-education could make the trip disappointing. So, here are some things to do before venturing into the store:
- Do Know the Value of the Merchandise
Don’t make assumptions about what something is worth. The pawn shop dealer cannot give you money based on an exaggerated price. If you purchased a TV three years ago for $200, do not assume you could receive $175 for it. The depreciation on the TV would likely be well below that. Additionally, the pawn dealer must offer an amount low enough that he/she can make money on a potential sale. People who buy things from a pawn dealer look for deals. So, merchandise has to be purchased with the buyer’s price in mind.
- Do Prep Merchandise for the Visit
Make sure the merchandise looks appealing to the pawn shop proprietor. An old desk covered in dust won’t exactly look like something of value. Cleaning off and polishing the desk not only makes it shine. The extra steps may enhance the pawn price. You want to get the best value for a pawn deal. Properly prepping merchandise helps with this cause.
- Do Try and Sell Precious Metals at High Market Value
Nice pieces of jewelry may come with great resale values. Certain items, however, only present “scrap” value. That means the gold or silver would be melted down for reuse. Of course, gold and precious metals maintain value based on weight. Check the markets and try to time visits to a pawn shop when the market value of precious metals is up.
Things Not to Do When Visiting a Pawn Shop
Appropriate behavior isn’t always about what you do. Things you don’t do contribute to pawn shop success. Here are some things not to do:
- Don’t Be Afraid to Negotiate
Just because the pawn shop representative gives you a price on something doesn’t mean you have to accept it. A visit to a pawn shop involves the art of negotiation. If you receive a lowball offer, upping the asking price to a reasonable amount and continuing to negotiate makes sense.
- Don’t Challenge Indisputable Facts
When the pawn dealer reveals the diamond ring is really made of glass or a gold watch turns out to be a brass one, ask the pawnbroker to explain how he/she arrived at the conclusion. A response that indisputably proves a product has no real value shouldn’t be challenged. Yet, people do make a reflexive response based on anger. Such an attitude won’t be helpful. Glass won’t turn into a diamond. The pawnbroker’s mind won’t be changed. All you do is run the risk of hurting your relationship with that particular pawn shop.
- Don’t Be Afraid to Walk Away
When the final offer turns out to be a really bad one, don’t feel bad about turning around and walking out the door. Be professional about things. Don’t get angry or indignant. Just realize that you can take your business and merchandise to another pawn shop and seek a better deal.
