PawnMaster Blog

When "Plan A" is Dead

 

How much does it cost you when Plan A fails and you are left to figure out how to recover if a vendor goes out of business or a new regulation is enforced? What is your Plan B? 

For many customers in our industry, Plan B was making sure Plan A works, especially when it comes to relying on vendors. As we have seen in 2016, the pawn industry has experienced some unsettling events. With new compliance regulations and new legislations, vendors going out of business or being taken over, you want to make sure your vendors are in your corner to help you keep your business running smoothly. 

Why aren’t we seeing software vendor choices out there in the Pawn Industry?

We don’t see too many new vendors throwing their hats in the ring to service the pawn broking industry. Why is that?  It seems lucrative, right? Pretty straight forward? The loan payment calculations seem easy enough... It's quite the contrary. As far as software goes, this is a very niche or vertical market. That is to say that this market is very finite in the number of possible customers and very specialized in terms of operation and calculations.  Not only that, there are also specific requirements state by state when it comes to regulatory mandates, controlling the rates that are charged and how they are calculated over a period of time. In the nearly 30 years that I have catered to this industry, I've seen over a dozen decent sized software vendors come in with high hopes only to fade awaysome slowly, years later, and some abruptly. With every new vendor I met while attending any state, regional or national trade show, I always made sure that I sincerely extended my handshake and wished them good luck in their new endeavor. I always followed my well wishes with, “It’s not easy."

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