pawnshop Archives - PETE THINGS

Previously had written a post about my favorite sources for tools. Pawnshops are probably my favorite spots for deals and not just tools. There are a couple of different categories of pawnshops and those are corporate stores and privately owned stores. In this post, I am going to dive in a little more and give a little insight into how pawnshops work and the strategies I use to get the best deals I can.

First we will take a look at the corporate stores. These would be your Cash Americas, EZ Pawns, etc

Corporate stores have huge databases that price and value the items they take in and sell. These databases are only as good as the information that gets put in to identify the items. These systems are kept fairly up to date which makes it more difficult to find smoking deals. However, the databases are only as good as the information that they get fed, and it’s not always inputted correctly. Generally, if something is ridiculously off in price, you can blame that on an incorrect model number, brand, condition, etc.

These corporate stores can get penalized for keeping stock on the shelves for extended periods. The longer an item goes without selling, the worse it looks on the store manager. “Aged” merchandise in a pawn shop is going to be the main source of smoking deals. A real niche or specialty tool is a prime candidate for becoming aged merchandise–there are fewer people looking for it, and so it just won’t sell. The longer it sits, the better deal you can generally get on it. Some corporate stores actually get charged a penalty for items on their aged list, or the list might even be tied to the manager’s bonus. The manager wants to get that stuff out of the store, help them do it!

Privately owned shops are something like “Jim Bob’s Gun, Pawn, and Haircare”. Ok, I jest, but you get the idea

When it comes to privately owned pawnshops, they generally don’t have the database or infrastructure that the corporate ones do. They rely more on product knowledge and research to price things. This can go either way for the buyer. Sometimes the shop will go off what items are listed for new, not what they are selling for used. However, the private shops are generally more flexible with pricing. It may take a little more work to get a lower price, but it can be worth it. A lot of these owners and managers enjoy the haggling process and enjoy making deals. Hone your negotiation skills before you go in, but don’t be afraid to walk away. Nothing softens a stance on a price like looking at an item every day that you could have sold for a little less. You may need some persistence and patience with this.

These private shops are more common in smaller towns. They often will have multiple stores located in different towns in a particular area. This can be advantageous if they are all owned by the same person or company because they can share inventory or check multiple stores for something you are looking for.

I’ll wrap up with my personal tips for getting the best deals at Pawnshop regardless of the type

Become a regular. Making regular appearances and purchases will help with your bargaining position. I even have managers that will call me if they get a particular item they think I will be interested in.
Cash is king- you will generally get a better deal if you are paying cash. The store can avoid the credit card fees and may pass those savings on to you.
After you negotiate the best price, ask for that to be the “out the door price.” This means the store covers the tax and can be an additional 7% or more discount. Cash can make this easier.
Establish product knowledge. Become an expert on items you are interested in. Know how to test them and ensure they work. Know the value and what they sell for new and used. Teach the employee something about the product they didn’t know, but don’t be an ass about it. Helping them by passing on knowledge can help build rapport. A good rapport with the employees can only help with deals and prices.

A few notes on safety:

Be careful to not use a tool that is malfunctioning or has a defect that would be a safety issue.
Don’t put yourself in compromising situations and beware of scams or stolen merchandise.
Learn to use a tool before you operate it. You should take the time to educate yourself on a tool prior to operating it. Failure to do so could have permanent and life-changing consequences.
Learn what PPE(Personal Protective Equipment) is necessary for each tool and use it!

So now you know and knowing is half the battle! Now go out there and get those deals!

Keep making and stay awesome,

Pete

I shared one of my favorite sayings in my last post, and it applies to this one as well. The source for a particular tool will depend on your priorities (good, fast, or cheap), and remember you get to pick two in most cases. Each of these has its advantages and trade-offs. Identifying those will help guide you as to where the best place is to hunt down some new tools. For instance, I am currently on the hunt for a stand-up drill press. I currently have a benchtop drill press, so I don’t HAVE TO have it right now, as in I don’t need it fast. This allows me to focus on good and cheap. Good and cheap will lead me to used sources like pawnshops, estate sales, and craigslist. I can take my time and get the best deal on the best tool I can find. Below are six of my favorite sources I use to acquire my tools.

Family and Friends are the ones we turn to when we need help, why would it be any different with tools?

My go-to source, first and foremost, is family and friends. Most of us have more than we need. We have stuff we bought, used once, o never used, and it went to the back of the closet. Tools are one of the items that fall into this category, and it applies even more to specialty tols. People get inspired, buy all the tools, and jump into a project or new hobby only to lose interest for one reason or another. A lot of those tools go to storage and are never thought of again

I talk to my family and friends about projects I’m working on all the time. I’ll mention that I’m looking for a specific tool or tools in general. Fairly often they volunteer information about unused tools they are aware of. They say something to the effect of, “I think I have one of those in the garage I don’t use” or “<insert husband/wife/son/daughter/friend’s> name bought one of those years ago and never uses it, you should ask them about it.” Offer to buy it. Sometimes they will give it to you and be happy just to help you out. It also helps them because they are happy to see the item go, get rid of some clutter, and free up some space. Even if they want to sell it, it will most likely be substantially less than what you would pay for it from other sources.

Talk to other makers. Makers have the best tools!

For specialty tools, you might look to other makers. Makers are constantly buying and upgrading tools. Upgrading tools is like an addiction! Some of us just must have the most up to date model or newest gadget. I’m guilty of this occasionally–it happens! Those perfectly good older models of tools or items that have been replaced end up on a shelf or in the back of a drawer, and shop space is at a premium! When I do a deep clean of the shop, I find tools that have a small issue or were replaced, and I just don’t use any more. I generally offer them up to my friends and family because I just don’t feel like haggling with people on Craigslist, and because it helps my friends out!

Ask other makers that you know at local shops. Maybe they have a tool with a small issue you can fix or live with. A quick YouTube or Google search could surprise you at how easy it is to make certain tool repairs yourself! Makers like to help out other makers generally speaking and this can also get a good dialogue going.

Retail store sales/coupons: it is a waiting game, but it can pay off, especially around the holidays

When you need to go retail, try to wait for a sale, the big box stores(Home Depot, Lowe’s, etc,) run good combo sales around Christmas time and other holidays. Great deals can be found on battery packs, tool kits, and combos. I generally buy at least one multipack of batteries for the brands I use every year. With a lot of brands going tool only, this gives more flexibility to select the tools and batteries that are more geared towards your particular uses in an “a la carte” fashion.

Another thing the big box stores do during their Christmas sale is offer combo and bonus deals: “buy this 5-tool combo and select two of these other tools free” or some variation of this. These offers give you more customization to your purchase, so you’re able to get what really works for you.

Discount stores (like Harbor Freight) may not be known for quality, but they can be a good source when you’re priority is to save money! I buy from discount stores when I am not particularly concerned with quality or accuracy, and I want to spare my expensive tools. Consumables like gloves, masks, drop cloths, etc. are other items that HF is a good source for. They run ads regularly and have coupons to even further reduce the prices. I can’t speak for a lot of the power tools and have heard mixed reviews. It generally seems pretty hit or miss. I do have friends that run their HF tools until they die, return them, and repeat. It isn’t a bad option to start with on a budget and upgrade as you grow.

Pawnshops/thrift stores: Bad reputations. Good deals.

Probably the most intimidating source for buying tools is the pawnshop. pawnshops get a bad rap, maybe some of it is warranted. I worked at pawnshops for years and learned a ton which I’m happy to share. First thing is that there are two types of shops and they are fairly different: Corporate stores (Cash America, EZPawn, etc) and then the local, privately-owned shops. I will tackle the differences between these two in a future post and give some tips.

Craigslist/Facebook Marketplace

Just because I don’t like selling things on Craigslist doesn’t mean I don’t like buying from there. There is a lot of junk for sale on there, but there are also deals to be had. With the internet, people are generally aware of what things are worth. Like pawnshops, product knowledge is your friend here. You can run into some of the same issues where people overvalue their items, but what you want to find is where the seller NEEDS to get rid of the item. Maybe they have a bill due, are trying to clean out the garage, or the item was a gift from an ex. It doesn’t matter to you; they are looking for a quick sale and that does matter. Just be smart about it.

Estate sales/Auctions/Liquidations

A lot of people that shop these do so with the intent of reselling items. They generally have more resources to buy but must leave enough room to make a return on the item. Since you are buying the item to use, you are most likely willing to pay more than the reseller. Again, product knowledge is key. Some of these will list the items with pictures online before the sale. Get an idea of what items you are interested in and do your homework. Familiarize yourself with what types of payments are accepted and show up early!

Be creative, be resourceful

The key to all of this tool hunting is the same as designing and completing projects. It is all about using your creativity, using the resources available to you, and a little bit of luck. I will expand on a few of these in a future post to give more tips and tricks on how to get the most out of them. Until then, stay awesome!