How Pawnbrokers Determine an Item's Value
Pawn Stars Make a Profit!
They are able to come in contact with rare and historical items. Additionally, a pawnbroker's job becomes even more rewarding when, after they determine an item's value, they stand to make a profit.
If the goal is to always make a profit, therefore, how to pawnbrokers determine an item's value?
Finding a Buyer
In determining an item's value, one of the chief measures the pawnbroker uses is in knowing if a buyer will be present for the item after it has been sold by a customer.
How could the pawnbroker make a profit, in other words, if the item just sits on the shelf? Usually, pawnbrokers won't buy anything unless they already have a potential buyer in mind.
Proof of Authenticity
Proof of authenticity, whether in written form or in special and significant markings, is another way that pawnbrokers determine an item's value.
For example, I could bring in a sword that I'm claiming is from the Civil War. Without written documentation or other proof, how would the pawnbroker know how to determine whether the sword is really valuable?
Just as they know buyers who will be interested in the item, pawnbrokers also know collectors who have expert knowledge about the item's authenticity.
In bringing an item to a pawn shop, then, it is always wise to include whatever documentation you may have.
Does the Item Need Fixing?
The need to make a profit also enters the pawnbroker's thinking in determining an item's value if the item is old or doesn't work properly.
Pawnbrokers determine an item's value by making sure that the cost to fix something won't outweigh what they will probably be able to sell the item for.
Even if a sword from the Civil War has been proven to be authentic, the rust or damage that will cost much money to repair will likely make the pawnbroker decide against buying it.
In sum, pawnbrokers have an interesting job. In some cases, they deal with rare and historical items and can decide to buy them with the goal of making a profit.
How a pawnbroker determines an item's value includes whether there is going to be a buyer for it, if the item is authentic, and whether the cost of fixing the item will outweigh the potential profit to be made.
Source: Pawn Stars
http://www.history.com/shows/pawn-stars
Published by Dan Reveal
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12 Comments
Post a CommentPawn brokers are much like antiques dealers except they usually don't have as good a reputation as antiques dealers. Interesting article!
Pawn brokers are probably very busy in a down economy as people sell their items to make money.
Great stuff...:0)
Apropos of very little, I strongly recommend the film, "The Pawnbroker," starring Rod Steiger, if you have not seen it.
Interesting!
I catch Pawn Stars while scanning sometimes...some very interesting items show up their.
Consignment pricing works much the same way.... Sellers always need to remember that Pawn Shops are not a charitable activity but profit making businesses. For them it is a win-win if they do their work correctly. They make money if you redeem your own item or (generally more) if they sell it to someone else after you have defaulted on the time limit of your reclaim option. Seems kind of sleazy - but as any devout Capitalist will argue, "Business is business."
Excellent article as always. Thanks!
Interesting article, Dan. My husband has been watching several of these Pawn shows on the television lately. It's fascinating to see the things folks bring in, cheers ;)
In sense they need to be a jack of all trades in their assessment process. I think I would fail at this job.