How to Deal With Pawn Shops

Dealing with a pawn shop requires flexibility and compromise.

Visiting a pawn shop is ideal if you have possessions for which you want to receive cash. While selling your items to a pawn shop will make you some money, the pawn broker will turn around and sell your item for more than he paid you. Thus, it's important to negotiate wisely when dealing with a pawn broker. Getting fair value for your goods isn't always easy, but you'll be satisfied if you feel you've received a favorable deal.

Instructions

1. Gather any receipts for the goods you wish to take to the pawn shop. Most pawn shops are vigilant about ensuring that the goods they buy aren't stolen. If you can provide sales receipts, it will put the pawn broker's mind at ease and make the transaction quicker.

2. Decide whether you want to sell or pawn your item. Selling the item means giving it to the pawn broker for an agreed-upon sum of money. Once the transaction is complete, the pawn shop will try to sell your item for more than it paid you. Pawning your item is a form of loaning. For example, you may give your item to the pawn shop for a specified period of time and for a certain amount of money, plus interest. You'll have the agreed-upon time to return to the pawn shop to repay the money; otherwise, the pawn shop will legally own your item. Typically, selling the item outright will give you a higher yield on the item. You'll usually get less for a pawned item, and because you'll still have to pay interest, this option isn't always ideal.

3. Decide on the price you hope to receive for the item through research to determine its estimated market value. You can also choose a price based on the product's sentimental value. Keep this number in mind when you begin negotiations at the pawn shop.

4. Tell the pawn broker what price you hope to get for the item and why. It's nearly guaranteed that he'll offer less than you're hoping to get, so it can be beneficial to artificially inflate your price. At this point, it's your job to negotiate with him to reach a middle ground on which you can both agree. Remember that he has to sell the item, which is his main reason for trying to offer you less than you want. Also, artificially inflating your price runs the risk of offending the pawn broker, which may make him disinterested in dealing with you.

5. Use tactics such as saying you'll visit another pawn shop, saying you think you'll keep the item or saying you'll sell the item online to attempt to raise the price in your favor. If the item is rare, valuable or otherwise noteworthy, the pawn shop may have an extra incentive to make a deal with you. If you seem ready to take your business elsewhere, the broker may increase his price to a level that's acceptable to you.

Tips & Warnings

• If you're not satisfied with the price offered at one pawn shop, take your item to another store. Repeat this process as many times as is necessary to reach a price you can accept.

• Be courteous with the pawn broker. When he offers you a price lower than you want, he's not doing it to be rude. He's doing it to make money.

• Many pawn brokers will try to tell you why your item isn't as valuable as you think it is. Take every bit of "advice" with a grain of salt. Remember, the broker is in business to make money, not give you a favorable deal.

• Avoid giving your item a "hard price" and being unwilling to deal. You'll likely have no success in selling the item for the price you want.

References

• Everyone Negotiates; 6 Negotiation Lessons from Pawn Stars; May 2011
• Designers Couch; Lessons on Tough Negotiations from Pawn Stars: Part 1; Becky Sheetz-Runkle; June 11, 2010
• HowToSellGoldJewelryForCash.com: How to Pawn Jewelry
• Guitar Alliance: Buying A Guitar From A Pawn Shop
• Ed Brodow; Ten Tips for Negotiating in 2011; Ed Browdow