How do pawnshops make money?

From the interest earned on the pawned items and on the items that have not been redeemed by their owners which the pawnshops either sell through an auction or have these re-set and sold as new pieces of jewelry.

yuo bring in ,lets say,a drill,i say how much,you say 20$ ,i say ok,for 2wks ,pay back is 30$ 2more wks 40$,after 4wks you don't pay, i sell it

Pawnshop is like a bank, you need money they lend you money with collateral, If you pawn your jewelry for $50, you have 4 months to redeem it, 4 months not 4 weeks, each month your interest will be 5% of $50. You have an option to pay the interest monthly therefore extending your redemption period for another 4 months. Assuming you failed to pay the interest within the 4 months redemption period then the pawnshop will sell your jewelry to cover for the $50 plus 4 months interest. Mostly pawnshop makes profits from the interest, not from selling the items.

to pawned the jewelry,if the owner doesnt get their jewelry

buying stuff dirt cheap, a 2000 camera and lens for 275.00 and selling it for 1550.00. or people pawn stuff a 400$guitar for 50 bucks, and the person never makes a payment on it and the pawn shop gets to sell it after 60 days! pretty smooth. payday loans also. loan ya 200 bucks until next Friday when you get paid, then you owe them 275 back. lots of ways to make a buck when people are down on there luck! word

In two ways...by the fees and interest they charge should you come and buy it back or by selling it after the time to buy it back has lapsed.

eg, you pawn your rolex for US$100 and if you can't redeem it back within certain period of time, they'll auction off the items n selling it at >US$100

They pay the person hocking it less than what they believe they can sell it for. So... you want to sell your watch. The shop may give you $50 then turn around and sell it for $100.

at 5% interest per month, they earn higher than banks. aside from that, some scratch bits of gold from your jewelry.