Find solution
How do pawnshops make profits?

How do pawnshops make profits?

  • Answer:

    Two ways: Firstly buy things from people as cheep as possible and make a good profit from selling them. That also means they will only buy things that they can sell. Secondly they lend people money on a negotiable rate (but usually much higher rate of interest than a bank), but you also have to leave something as insurance( e.g. a watch, ring, TV, ETC). If you don't pay them back in a specified or agreed time, they will keep it or sell it to get their money back. Therefore, they will only lend money in proportion to watch you leave as insurance. For example it you leave a TV that they feel is worth $200 (doesn't matter if it's new or second hand, it's what they think that can get for it), they will probably only lend you $100-150 maximum.

eidsur21 at Yahoo! Answers Visit the source

Was this solution helpful to you?

Other answers

buy things from other ppl for as low as they can. then turn around and sell it for more than they bought it for.

james_marpole

they charge you a fee when you return to get your articles out of PAWN.

darrell n

Buy low, sell high

USA

Related Q & A:

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.