5 Helpful Hints for Pawnbrokers - Volume 1

Posted on 16 Jun 2017

 

1. All TV’s on the sales floor are turned on. Two factors sell nearly all TV’s… Price and picture.  There is virtually no chance a TV that isn’t on will generate much interest from customers. Older TV’s may sometimes have a great picture and, hopefully, be affordable to someone with a small budget. Even poorer pictures can sometimes be enhanced by attaching a Blu-Ray player. Still, go back to rule one… Turn it on!

2. Brag. Create an e-mail string among your stores and employees where each employee can earn virtual applause for outstanding customer service, big sales, large loans, etc. Make sure the brags are for behavior you want to encourage. As an owner, participate in the e-mails and recognize your employees.

3. Gun Inventory sales tags must be detailed and in large print. Most long guns (shotguns, rifles) are behind a counter, typically at least six feet from a customer. Handguns are under glass in cases (sometimes scratched glass with a glare). Make sure all tags have the following: Manufacturer, Model, Caliber and Price. In large print. Gun enthusiasts usually know most guns on sight, however, your average customer needs some guidance. Save both you and your customer time and aggravation, it makes the sales process go much smoother.

4. Reach out to the community (my favorite!) Reach out to a church or like-organization that you can help. Many times it will be one of your really good customers. Talk to them about a HUGE cookout.  You supply all of the goods, and they get to keep all proceeds for their church from the plates sold. Offer to use your parking lot, store, and your money to help them gain new members to their congregation/organization. This usually only costs around $100.

Since you’re buying the food they have to sell the plates extremely cheap, $2 to $3. Let everyone know of the HUGE cookout through Facebook, flyers, and especially with the church/organization. “June 18th we’re having a cookout for the church and plates will only be $2.00! EZ Money Pawn is also going to raffle off a 42” LED TV (Find an item to raffle off with low cost, i.e. TV, tablet, game system). Each plate purchased gets a raffle ticket. Come out to support, feed the whole family for $10, and have a chance to win!” Imagine if they talk about this to their congregation each Wednesday and Sunday!

This will bring new customers to your store that possibly have never been into a pawn shop. They’ll see that you’re doing a good deed for a great cause and also now know where they can come to buy, loan, sell items if needed. How can you go wrong with a $3 BBQ plate or a $2 Car Wash? 

5. Let your manager do his/her job. Managers are the highest paid employee in each store and are trusted to make almost all daily operational decisions. Make sure they know when you (as an owner) should be consulted – usually when an unusual transaction occurs or the value of a transaction exceeds certain limits. After that, don’t micromanage. If criticism is necessary, do it privately and don’t undermine his/her authority with other employees around.
Corby Logue

Written by Corby Logue

Mr. Logue has over 30 years of experience in the pawn and collateral loan industry. He has held and operated almost every position the industry can offer including tenured positions at a strategic level in the sales, operations and acquisition lines of business. Before coming to Data Age Business Systems, Mr. Logue was the Chief Operations Officer at National Pawn and Jewelry, one of the largest privately owned chain pawn shops in the United States with 33 stores. Prior to that, Mr. Logue began his career with EZ Pawn, his family’s pawn shop, which grew from a privately owned, single-store operation to 225 publicly traded locations. He managed operations on the private side and lead the acquisitions team on the public side. Mr. Logue has an extensive business background and earned a degree in Communications from The University of Texas at Austin. Mr. Logue’s success and contribution to the pawn industry has gained him great respect and visibility which he will use to advance the success of other pawn shops.

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