5 Helpful Hints for Pawnbrokers - Volume 6

Posted on 16 Oct 2017

 


 

1. This is NOT your Grandpa's old pawn shop! We must have an outstanding customer experience!  Make it lively with upbeat music, smiling faces, etc.  Also, give away bottled water and/or popcorn.  Think about your shop from a "millenial's" perspective and make sure the experience is one that will bring them back because it is fun to be in your shop(s).

2. Compensate on loan and buy productivity, not just sales. The entire business starts by making good qualifying/lending/buying decisions at the loan counter, so why not pay a small amount per loan?

3. You need to be a Spanish-speaking pawn shop. The % of Spanish-speaking customers you have would probably surprise you – it shouldn’t, just check your demographics.  6% (or 56.6 million) of the United States is Spanish-speaking; that’s nearly 1 out of every 5 customers that comes into your store.  Everyone feels comfortable in their native langua

4. Cut back on traditional advertising. Focus more on your Google Reviews, Facebook Marketplace, Craigslist, eBay store, etc.  It takes a fresh look at your business and advertising to be successful in today's pawn shop business.

5. Turns, turns, turns! With consumer electronics facing deflationary pressures, pricing is the key to being competitive and turning that inventory in to cash to loan back out.  Don't keep anything around and make it a trophy, especially consumer electronics such as laptops, TV's, and iPads.

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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