How do pawnshops make money?

It would be much easier to tell you how they don't make money.

A pawn shop owner is like a loan shark who takes collateral. They typically only offer a tiny fraction for the item (maybe 1/10th of the value) as a loan. The person getting the loan typically gets 30 days to pay the loan back plus interest (usually more than 20%). They make money in two ways: * They make money off the interest if the loan is paid back * If the loan is not paid back in time, then they can sell the item for a profit

How many times are you going to ask the same question? You are getting the same answers... Seriously? And it's not even a gambling question. Tool.

Usually you can either trade in your item for something else, usually of less value to them. Or they simply watch what they buy and are familiar with the market and current pricetags for items. They use their knowledge and can either get it from you for less then what it's worth, and then sell it for it's value or more. Or it can use it's connections to get an item repaired, in order to make a profit.

They buy your stuff and offer you pennies for it and then if you sold it and didn't get a pawn loan (Where they hold it for a certain number of days and then you pay back your loan plus interest and get your item back) they sell it for not only what it'[s worth but probably double that but sometimes triple. They make what they gave you plus a hella big profit...

they buy you **** at 10% of the value, hold it for 30 days, after that 30 days, if you don't show up with your claim slip and the amount of money in which you sold said item to them, they can add on juice your item. items that aren't claimed become theirs, and then they mark up the price and sell them to the public.

They try to get things that people don't know about the real value of it and they sell it for the real value or above. or they just buy things people don't normally want (notice how they have some pretty weird stuff?) for a discount then they sell it at a higher price.

Buy items on the cheap. People who use pawnshops are desperate for money. If you can buy a playstation 3 for 1/10th the normal price and sell for 1/4th you have made a nice profit. Buy low, sell high heh

They pay less than retail value for the items brought in to them. When they resell it at retail value, they've made a profit.