The United States is home to over 9,000 pawn shops.
If you enjoy haggling for deals, then a pawn shop is your dream store. Forget the department stores with non-negotiable prices. Pawn shops give you the chance to engage in some good old-fashioned bargaining.
Pawn shops offer individuals a place to purchase used goods for less money and to sell their goods when they’re looking for a buyer. So rather than advertising for a buyer in a local newspaper or on social media, you can go to the pawn shop where a keen, shrewd buyer is waiting for you.
But how do you know that they’re getting a fair deal? How do you know if you can trust the pawn shop?
By the time you’ve finished reading this article, you’ll understand how a pawn shop works and how to get a best deal in a pawn shop.
How to Get a Best Deal In a Pawn Shop
Before you learn how to get the best deal at a pawn shop, it helps to understand how pawn shops work. Pawn shops are not just places where you sell your goods or buy used goods. They offer individuals a way to borrow money while using their goods as collateral.
When you enter a pawn shop with your goods, you can borrow money from the shop while they hold your property. You will discuss the terms of the loan with the pawn shop broker. Usually, a loan has a 30 or 60-day time period.
If you cannot repay the pawn shop broker in that period, they will keep your item and sell it.
You can also bring your items in for the pawn shop to sell outright. In this case, the pawn shop broker will give you money for your property. You can also purchase used goods at the pawn shop.
Prepare to Sell
Before you buy or sell at a pawn shop, you should prepare yourself and your item. When you’re preparing to sell, follow these basic guidelines:
- Bring in a clean, polished, and fully functional item
- Understand the value of your property
- Know the item’s earliest origin
You want to bring in the item in its best possible shape. This means you should spend time cleaning, polishing, and repairing the item. You should also have the item evaluated so you can get the best possible price for it.
Finally, have proof of the item’s earliest origin. You want to prove that you’re not attempting to sell stolen property, so have proof that demonstrates a chain of ownership.
When you do this work ahead of time, you create a win-win situation. The pawn shop wants your goods, and you want to sell them. You’ll get your best deal when you prepare yourself and your property.
How to Negotiate with a Pawn Shop
Whether you’re selling or buying from a pawn shop, you should sharpen your negotiating skills before you enter the pawn shop door. This will prepare you for the game that you’re about to embark on.
First Impressions Matter
Begin by introducing yourself in a friendly manner. You want to play the part of a friendly customer, and then you and the pawn shop owner will enjoy the process even more. You’ll also garner more trust and score a better deal.
Expect Haggling
Pawn shop owners and brokers expect you to haggle over prices. This is the game of the pawn shop and the fun part of working with a pawn shop. You can always negotiate the prices attached to items or the price the owner wants to give you for your item.
As you begin negotiations, let the pawn shop owner make the first offer. You should not offer first. You want the broker to state the item’s value first, and then you can work with that number.
Remember that the pawn shop owner is in the game to make a profit as well. So do not expect to receive the full valuation of your property. if you can get over 50 percent of your item’s value, you’ve won.
Walk Away and Back
Don’t be afraid to walk away from the negotiations. If they’re not going the way you want them to, then take a step back and give the pawn shop broker a moment to breathe. Leave the store completely if necessary.
Then come back. Make multiple trips to the shop, especially if you have several items to pawn. This will allow you to build a relationship with the pawn shop broker and establish trust.
Answer Questions, Don’t Offer Information
The pawn shop owner may have questions about the item such as how much you paid for it, where you found it, and when you purchased it. Answer their questions, but do not offer extra information. You want the advantage in negotiating, and you’ll have that when you know all the details of your item.
Know Their Specialty
Pawn shops are not all the same. Peruse your local pawn shop before you bring in your property for sale. Then you’ll identify their specialty and be able to estimate the best valuation for your property.
Check Certifications
Always check the certification of your pawn shop. Begin with the Better Business Bureau. Here you’ll see if others have recommended staying away from this shop or doing business with this shop.
The certification of the shop also depends on your transition. See if the shop has specialized certification in the item you’re selling.
Know the Rules
The federal government regulates pawn shops much like it regulates all retail stores. Know the laws specific to pawn shops so you don’t break any rules or are subject to a pawn shop that breaks them. Here are the most basic laws you should know.
- Truth in Lending Act
- Equal Credit Opportunity Act
- Patriot Act
- Bank Secrecy Act
- FTC Safeguards Rule
- ATF Transaction Act
- Military Lending Act
Look these laws up so you understand what you’re obligated to do when you work with a pawn shop. These laws exist to protect both buyers and sellers.
Negotiate and Smile
Now that you understand how to get a best deal in a pawn shop, you can walk into a pawn shop confidently and start the haggling game. Remember that the pawn shop dealer’s job is to find the best deal possible. They typically love working with people and the negotiating process overall.
Are you looking for a good pawn shop where you can buy or sell goods? If so, contact us. We buy and sell and get our customers the fast cash they need today.
Check out our services today.
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