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Author: cabinsmama Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 885596  
Subject: Re: Why Are Pawnshop Prices So High? Date: 10/12/2012 4:16 PM
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They might tag something at a price that seems high, but they might actually sell it quite a bit lower. If once in a while they get someone in who doesn't know the value and doesn't want to dicker, that's gravy.

I'm guessing at least some make their money from actual pawning--the interest they get when the person pawning their stuff redeems it. They used to loan 10% of the value of the item, IIRC, so if they lend $10 for a $100 tool, and the borrower doesn't come back, they can sell the tool for $50 and everybody's happy (or they can tag it at $110 and see what happens, I guess. I've never seen anything like the guitar example).

They buy low and sell high as much as they can.

Some might be fronts, but they have some strict rules about reporting items to law enforcement regularly (maybe weekly?). Not to say there's not ways to run illegal activity under the noses of law enforcement.

They probably *could* give you the highest price you could get, if they have a scrap gold buyer who pays them top dollar, and if they want to pass that along to you. As to whether they "would" give you top dollar, I'm thinking they'd more likely give you the least amount you'd accept to part with your stuff.

This can be a big YMMV area.

cm
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