Most of us maybe familiar with the services that a pawnshop offers and to some it may the only way to make ends meet in an economy where job loss is prevalent and keeping up with the monthly bills have become a more stressful activity. We may know that “a pawnbroker is an individual or business that offers secured loans to people, with items of personal property used as collateral.” “If an item is pawned for a loan, within a certain contractual period of time the customer may purchase it back for the amount of the loan plus some agreed-upon amount for interest.” “The amount of time, and rate of interest, is governed by law or by the pawnbroker’s policies.” “If the loan is not paid within the time period, the pawned item will be offered for sale by the pawnbroker.” (Unknown Author, Pawnshops, Retrieved from www.wikipedia.org).
We are also aware that the price received by the customer does not truly reflect what the object may be worth because even as the pawnshop makes money on the interest charged when the loan is paid back, they will also make a profit on selling that item by “lowballing” its actual worth. We understand that this profit may not be real for the pawnbroker because of the enormous amount of work it takes them to sell it. It can only be assumed that because of the thousands of pawnshops in every city known to man that there must be some pretty good profit in this industry. It may also be the ultimate place for other businesses to learn how to keep and maintain proper records of their business dealing. Many pawnshops are notorious about keeping accurate records because of the likelihood that some of the property that they take in could be stolen and therefore confiscated by local authorities.
It appears recession proof mainly because everyone has assess to them and the ability to sell these treasures almost as quickly as they loan on them means a fast and efficient turnover. There are some items which have been found to be quite inexpensive at pawnshops when compared to other outlets. Things like jewelry and audio/video equipment are the most in stock items found in your local pawnshop. Depending on the attitude of its owner, some have even taken to using pawnshops as the place to go for those special people in their lives as well as a decent place for Christmas shopping. If we continue to allow those with no regard for the welfare of this nation to lead, pawnshops may be the only real American business left when it’s all said and done.
