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How do pawnshops make profits?

How do pawnshops make profits?

  • Answer:

    They pay desperate people about 25-50% of the value of what they are selling them and then resell it at about market price. For example a down and out gambler in Vegas has a 3 thousand $ rolex and walks nto a pawn shop to sell it. The Pawn shop owner knows the guy is so desperate for money that he will take alot less then its worth so he offers him 1k for it. Then the pawn shop owner turns around and sells it for 2500 $ and still makes a 1500$ profit...

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Pawn shops "buy" items from people for WAY less than what they are worth and then jack up the prices. That is how they make their money. For instance, yuo can come in with a 600$ camera and only walk out with around 50 bucks- if you are lucky. The pawn shop calls it a "loan" and if you dont pay back the loan within a certain amount of time they keep your belongings and resell them.

glorymomof3

they give you little or nothing for your stuff and they re-sell it @retail pricing,b\c nobody ever comes back for their stuff

the man

I would assume they offer you less for your stuff than it's worth (or that they could get for it) and then mark it up.

boobacule

They give people hardly any money when they pawn something and try to bank on people not having the money to pick it up and then turning around and selling it for more than what they bought it for.

bellas_mom2003

They pay you for your item and then turn around and sell it for more than they paid you. Also, a lot of time they provide other services too, such as bail bonds or sell new items, such as knives.

lvminole

Most are used as fronts to launder in drug money (or other illicitly earned income). Since they can charge whatever they want for their merchandise they can easily cook their books.

Jason W

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