5 Helpful Hints for Pawnbrokers - Volume 2

Posted on 23 Jun 2017

 

1. Manager’s circle. An imaginary circle, usually in front of the counter where the manager stands. This way he/she can greet each customer and then discover the true intent of their visit. The manager acts as a facilitator for transactions, comedian, entertainer, selling the relationship between the pawn shop and customer.

2. Keep sales floor and outside area clean. This seems obvious, right? It’s more than just having a tidy store.  Organization, cleanliness, proper lighting, etc. all imply honesty, professionalism and a sense of trust; this will help procure larger loans as customers feel safe leaving their items with you.  Also, recruiting new talent for your staff is easier – no one wants to work in a trash can.

3. Set sales goals and pay bonuses. I’m a firm believer in setting a personal, attainable sales goal for each employee every month. For example, John sells an average of $5,000 month. You tell him that if he sells $8,000 he will receive a $300 bonus and if he sells $10,000, he gets $500.

What happens when he hits the goal? Pay him and congratulate him. He made money for both of you. And then raise the goal (a little) next month. John now knows what he can do and he's excited about it because he knows there's something in it for both of you.

4. Take pictures of your loans. Almost all pawnshop software offers a feature that allows you to photograph a loan.  Cameras placed on top of terminals are affordable, less than $75. Take advantage of it.  You can document the condition of an item when the transaction occurred. Also, theft is discouraged as well. Fake loans are virtually eliminated if there is no item to photograph. 

5. Text pawn and layaway reminders. At least 90% of your customers have a cell phone. Communication via text is becoming more popular and welcomed in a business setting. Customers see a text reminder as a welcome reminder as opposed to a collection call. 10 days before the due date, your software can send a text reminder. Redemption/Renewal/Extension rates will increase exponentially once you embrace text messaging.

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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