How hard is it to own a pawn shop??

Patrick McIrish · 08-13-10, 03:23 AM

I don't think it's "hard" to own a pawn shop, is it "smart" is the question. I'd say an important factor for you guys is how many pawn shops are there now in your area? Like most industries an area can only support so many of them, a small city can be tough. Also the worst part is everyone and their mother is now buying gold. I hate to admit what we used to pay percent wise to buy gold, now with competitors on every street corner it's really cut in our profit margin. I wish gold would plummet and send all these Johny-come-lately pretenders back where they came.

Overall check out what the requirements are for the state you are in, they are not all the same. What I would suggest though is just open a small place where you just buy gold. I think the license for that would be easy and you don't need a big place to operate from. All this other pawn brokers license and other requirements is a lot of effort, make sure this is what you want to do before you get too far caught up in it. It's good your buddy works in one now, at least he knows a little bit about what to expect, it's nothing like what you see on TV.

SaviorTebow · 08-13-10, 04:01 AM

I don't think it would be too hard to turn a profit if you have low overhead. But be prepared to deal with dumb fvcks everyday that want top dollar for their used crap.

HauntingTheHoly · 08-13-10, 04:46 AM

Why can't I sell my gold directly to a refinery and skip the middle man?

robmpink · 08-13-10, 04:47 AM

i would think it would be hard dealings with the thieves and addicts everyday. That is most of the sellers.

hhsilver · 08-13-10, 05:56 AM

get a feel for the business by opening one here. A lot of SBRers losers would be willing to pawn their used junk for points.

tltaylor89 · 08-13-10, 06:17 AM

Shouldent be to hard location location location

MadTiger · 08-13-10, 07:12 AM

Pawn shops
repo businesses
used car lots
bail bonds

The businesses where you never get invited to the local chamber of commerce.

Those are profitable, yet TRASHY businesses. Why get involved in those businesses if you aren't trashy?

sundin4prez · 08-13-10, 07:54 AM

in toronto i think it would be hard. theres to many of them and there all real scuzzy lookin. not to mention i go into one maybe twice a year just to check thing out and i swear he has the same stuff for sale and when i go in he never has any customers..

also it would suck dealing with the sum of society (drug addicts, tweakers, fuk ups etc.)

katstale · 08-13-10, 08:09 AM

You really have to ask yourself if you want to be the middle man for crankster 3 tooth thieves. Most pawn shops are merely glorified fences. If the police did their jobs, instead of looking for soccer moms not wearing their seatbelts, they could arrest 2/3 of the thieves in "any town" America by sitting on these places. The pawn shop is 100% complicit with the addict/thief. If pawn shops were not there to supply them with money for their ill gotten gain--they have no reason to steal.

No tweaker is gonna sit at a flea market all day to haggle prices for his recent haul.

unusialsusp5 · 08-13-10, 08:25 AM

yes,eventually all the available gold to be sold will dry up in your neighborhood pawn shop and you will have to turn to fencing stolen goods. it is just the way it is.

Doug · 08-13-10, 08:40 AM

Originally posted by HauntingTheHoly

Why can't I sell my gold directly to a refinery and skip the middle man?

you can

Precious Metal Buyers - Midwest Refineries, LLC

http://midwestrefineries.com/

Midwest Refineries is a Precious Metal Buyers, Gold Buyer, Silver Buyer and More! Locale smelters & refiners. Serving Michigan & All The USA.

pavyracer · 08-13-10, 08:43 AM

Owning a pawn shop increases your life insurance premiums.

milwaukee mike · 08-13-10, 08:44 AM

Originally posted by helicopter23

A friend and me are thinking about opening a pawn shop in a smaller city. He currently works at one now and they make all there money buying gold. The markup on gold at this shop is 100% meaning buy $100 worth sell it to a refinerary for $200.

"they make all there money"

seriously, if you don't know the difference between there and their you SHOULD NOT BE OWNING A BUSINESS. how are you going to properly handle payroll/lease agreements/taxes/purchase restrictions/etc, etc?

if you have to ask a sports website how hard it is to open a business, you have about a 1% chance of success.

milwaukee mike · 08-13-10, 08:45 AM

that said, good luck if you do go through with it

make sure you trust the guys handling the money and get them bonded

AMBlai01 · 08-13-10, 08:53 AM

Well I think the problem with owning a pawn shop is evaluating the worth of things. You have to have a lot of knowledge if something is worth something or nothing...

katstale · 08-13-10, 09:01 AM

Originally posted by AMBlai01

Well I think the problem with owning a pawn shop is evaluating the worth of things. You have to have a lot of knowledge if something is worth something or nothing...

Nope, not really. In most places you really only need to know how much it costs for a rock, ounce and/or gram. Then you know what to offer the guy for the power tool he has never used. If its a very hot/cold day to the next pawn shop, he will take what you offer and make some unintelligible scribbles on the appropriate form.