We seem to have lost the art of negotiation and bargain here in the United States. What once was a time honored tradition of haggling has become a taboo. And it is too bad.
Negotiating is one of the greatest experiences for both buyers and sellers, and it can really bring out the best in a shopping and sales experiences.
Many cultures still expect to negotiate prices before a sale is final, and it is a sign of showing value to the seller and showing pride in ownership to the buyer.
Fortunately, America still holds onto this ancient art in many areas of our country, and one of them is within the walls of a pawn shop.
What to Know Before Going into a Pawn Shop
The first and most important thing to know before going into a pawn shop is yes.
Yes you absolutely can negotiate prices at apawn shop. In fact, you are expected to negotiate. Anyone in a pawn shop you deal with who does not see you negotiate will wonder what the heck you are doing.
So yes, go into the pawn shop expecting to haggle, whether you are buying, selling, or pawning.
The next thing to know before going to a pawn shop is that pawning is as old as humans. It is a business designed for the shop to make money and for the clients to save money. It is a great arrangement for both parties, particularly if you can master the art of negotiation.
Pawn shops are in business to buy merchandise and sell it and also to accept a pawn. A pawn is when you offer something as collateral for a cash loan under the agreement that you will return and pay for the item within a certain period of time to have it returned to you.
To Sell or to Pawn
The most important decision you will make before entering a pawn shop will be whether to sell or pawn your item.
You can usually sell it outright and get more money for your item than you would if you were to pawn it as the shop feels more free to simply sell your item and turn a profit.
You may make up to 10% more for your item if you sell it rather than pawn it, so that is the benefit to deciding to sell.
However, if you are just looking for a loan, and you know you have something of value, you will decide to pawn, which means you are guaranteed to get your item back as long as you return with the money to take it out of pawn within the agreed upon time period.
Pawn Shop Laws
Know that pawn shops are restricted by very specific federal and state laws, so that they can protect themselves and so that their customers are protected.
Here are just a few of those laws:
The Truth in Lending Act
The Truth in Lending Act requires pawn shops to provide customer with a written agreement that outlines the exact terms of the loan, including prices, interest rates, and time periods.
The Patriot Act
The Patriot Act requires pawn shops to ask for valid identification and verify the identity of their clients before coming to any formal agreement.
The Equal Credit Opportunity Act
The Equal Credit Opportunity Act prohibits pawn shops from discriminating against customers on the basis of race, culture, sex, sexual orientation, or engage in other form of prejudice during business practices or negotiations.
For a full list and complete rundown of pawn shop laws, you can check out theNational Pawn Brokers website.
What to Sell or Pawn
Now that you’re clear on what a pawn shop is and how it operates, it is helpful to know what you can sell or pawn to a pawn shop, what might get you more money, and what not to waste your time trying to sell.
Items to Sell or Pawn:
· Precious coins and metals
· Watches
· Electronics like game consoles
· Tools
· Musical instruments
· Antiques
· Sports equipment
· Jewelry
· Diamonds
· Firearms
What Not to Bother Trying to Pawn:
· Unhygienic items
· Obsolete technology
· Older televisions
· Collectibles
A note on things like older tech, televisions, cameras, and computers: these items are getting faster and cheaper everyday, so it can be tricky for pawn shops to try to buy them and sell them for a profit.
When asking how much do pawn shops mark up items, keep in mind that pawn shops need to make 150% of their purchase price back in order to make a profit and stay in business, meaning if they buy it from you for $100, they will need to sell it for $150. That’s a hard sell with rapidly changing tech like televisions, cameras, and computers.
How to Negotiate at a Pawn Shop
So, now you know about a pawn shop, what to sell, and what not to worry about.
How do you negotiate at a pawn shop?
Here are a few tricks to keep in mind:
Know Your Shop
Before you enter a pawn shop,check it out online, get word of mouth recommendations, and read online reviews.
You can start with a simple “pawn shop near me” search on your smartphone.
You want to be as prepared for what you’re walking into as you can.
Then, go in as a buyerfirst. Get the full experience as an easy going, laid back buyer browsing the shop, and be sure to buy something so you can see how the staff handles sales and customer service.
Identify the specialty of your pawn shop, so you’ll know what to expect and what they are looking for.
Know and Clean Your Item
Next, be sure you know the value of the item you want to sell. You can start with anonline search, checking on sales prices, not just list prices. Anyone can list anything for any price. You want to know how much those like items actually sold for.
Before you go into the pawn shop, make sure to clean and shine your item, so it is in as good condition as possible, You want to impress your buyer.
Plan for multiple trips into the shop, with your items all separated out. If you have multiple items to sell, take your time selling them off so you can build relationships with the staff at the shop and get a feel for how they work.
Adjust Your Expectations
Finally, be prepared to compromise on your price. You don’t want to come down too hard and not be able to sell your items, and you also want to be sure you have a friendly and personable demeanor. If they don’t like your attitude, they can decide not to work with you at all.
At the same time, if you know what you have is valuable, and you have a bottom price in mind, do not be afraid to walk away and start over somewhere else.
Just as they don’t have to buy, you don’t have to sell.
You know what you want, and you can be confident in your ability to get it.
