Loan balance seems to be the main topic of conversation as of late….or lack of it. These “covid times” have created a climate of excess vs. need with the typical pawn customer.
Even though your customer’s first thought is not to bring you merchandise right now, that doesn’t mean that you, as a broker, can take time off from building your “assets”. Loan balance and acquiring inventory need to be the main counter
focus every day. Without these items, you cannot function as a pawn shop.
Tips on growing your loan balance:
1. Make it a focus every day. Tell your customers what you need/want and let your outside community know as well. Reach a larger audience through Social Media and by text blasting your customers. In the shop, be sure to follow up every transaction with “we’re looking for video game systems, silver coins, and firearms right now. Let your friends know that we’re paying strong for these items and others”. Outside the shop be sure to let people know what you do for a living and give them a business card. Every interaction is an opportunity to grow your business. Whatever you want or need...ASK FOR IT!
2. Find reasons to say “YES”. People usually don’t bring their best items in to sell or loan the first few times. Nor would you. Be nice, find a reason to say “YES” to them, and then tell them what you’re really looking for. Creating a customer will create a steady flow of product for the future. Find a reason to make that customer come back with “the good stuff”.
3. Explain the process. Many customers do not understand the loan/buy process and think that they must sell their items. Be sure to explain how your business works and let them know that they do not have to sell the item, but instead, can get a loan. Try to stay away from the word pawn if possible when talking to customers at the counter. Do your best to refer to the transaction as a LOAN or a BUY/PURCHASE.
4. Communication with the customer. The easiest way to keep a strong loan balance is to keep what you currently have working in your favor. Be sure to get the customer’s cell phone number and email address so that you can communicate with them regularly. Texting most clients is the easiest and least expensive way to reach them, but a quick phone call or email should work as well. Make them aware that their item is coming due so that they can arrange their funds for the future. Also, let them know that they can PAY their monthly charges and do not have to pick the item up. Your effective loan balance will grow tremendously if you practice this tactic.
There are many other avenues to drive down when talking about loan balance as well. Fee free to reach out and I’d be happy to discuss any of those with you as well. Just remember...focus daily! Even when things are going well with loans, do not let up. Build your business all day, every day.