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