With over 11,000 pawnshops operating in the United States, chances are that there is one doing business in your neighborhood. Not only do pawnshops offer customers the opportunity to take out a simple collateral loan, but they can also be interesting places to shop. Unfortunately, people can make errors during their pawnshop visit that can cost them extra money. Here are three mistakes to avoid making at your local pawnshop in order to have a great experience.
1: Not Doing Your Research First
It is always a good idea to be an informed consumer, but when you are shopping for items or selling things to pawn shops, it is absolutely crucial. Failing to do your research on an item that you plan to buy or sell can lead you to miss out on some serious cash.
Before you decide to pawn an item or purchase a piece from a store, do a large amount of research in order to determine the fair market value. Check out auction sites like eBay in order to find what similar pieces have recently sold for. This is a great way to find the baseline value of your item, which can help you out during the negotiating process.
Here is a simple way to find out how much other pieces have sold for on eBay.
- Step 1: Perform a search for your item in the search bar located at the top of the web page.
- Step 2: When the results come up, look down the left side of the web page to find the Show Only section.
- Step 3: Click the box next to Completed Listings.
After you check completed listings, the web page will reload and show all of the recently completed listings that are similar to your item. A red price will indicate that the item did not sell, while a green price indicates that it did.
By checking out the comparable prices, you will be able to get a good idea as to what you can expect to buy or sell an item for.
2: Failing To Understand Supply And Demand
Although you might have paid top dollar for that fancy hammer drill, the fact of the matter is that pawnshops usually have a massive supply of tools and construction equipment. When inventory is high for a particular item, pawnshops might not be in the market to purchase additional pieces, or wont offer you very much.
An understanding of supply and demand can help you to navigate through your pawnshop experience. Basically, the more rare and popular the piece, the more you can usually get for it. If you are expecting to waltz into a pawnshop and pick up a rare painting for a few bucks, you will probably leave frustrated and empty handed.
Keep in mind that pawnshops usually have to offer proof to customers about the authenticity of rare or expensive items. There arent that many people out there that are willing to buy a signed Babe Ruth baseball without a little proof that they arent wasting their money. Before buying or selling an item, be prepared to discuss the justification for the price.
3: Looking To Reality Television
These days, pawnshop shows are all the rage in the reality television world. Customers love to watch the intense bargaining techniques of the professionals, and to see the cool things that end up on pawnshop shelves. Unfortunately, people can sometimes get the wrong idea about the actual day-to-day business practices of real pawnshops.
In order to get ratings, pawnshop owners engage in intense discussions with shoppers, or buy tremendously rare and unauthenticated pieces. Before you decide to lowball a pawnshop owner on a price or demand details about an item, remember that television shows dont always depict real-life.
Be polite when you work with pawnshop owners, and discuss items reasonably and intelligently. Chances are that you will get a lot further, and avoid offending people.
An understanding of the mistakes that others make in regards to pawn shops can help you to enjoy the benefits of these fascinating businesses. Go to websites of pawn shops to get a better idea of the resource they can be to you.