PawnMaster Blog

Things I Wish I Knew As A Young Pawnbroker

Posted on 20 Oct 2021

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When I began my career as a young(er) broker, I quickly discovered how much I didn’t know.

The crazy thing about this business is how much you can learn from your customers, but the business model itself is so “counter intuitive” that it took me about 6 months to begin to figure it out. That’s when I realized how much I didn’t know.

My journey of knowledge since then has been pretty significant, and I can confidently say that I truly understand the business now, but there is still much that I don’t know.

I guess that when you get right down to it, that’s one of the things that I love about the business. It is a constant learning experience, and as they say on TV, “you never know what's going to walk through that door.”

When I was asked to write about what I wish I knew when I started, I wish that I knew what the business truly was all about. It would have saved me a lot of time, and I would have made a lot of money. Too many shops these days consider themselves retail stores. If you are loaning to sell, you are losing money! Selling product is a byproduct of this business as you never loan thinking they are going to lose the item (yes, I know there are those loans that you know are really buys). So if you are loaning, the goal is to get the customer to pay and eventually redeem.

When I make a sale, I'm selling with the hope to loan on that item at some time in the future. It takes some people a long time to figure that out. We sell money! I know that there are those that disagree with that statement, but it is the goal of every broker to have a large loan balance that has a great yield and the “right” redemption rate. It's what pays the bills.

Dave Larson

Written by Dave Larson

Dave’s background in the collateral loan industry spans out more than 20 years. He began as a District Manager for a large chain of pawn shops in the Southeastern United States. There he was promoted to Director of Operations, overseeing all of North Florida and the Tampa Bay region. Taking the knowledge he gained as Director of Operations, he purchased his own pawn shop that he ran for eight years until making the decision to sell. As the current Director of Global Sales and Operations for Data Age Business Systems, Dave brings a great deal of pawn industry knowledge to the table. Using his own experiences buying and selling a pawnshop, to overseeing the operations of a large statewide pawn shop chain, to working in pawn consulting, Dave works hand in hand with pawnbrokers to assist in their successful development.

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