Good deals v resalable deals

[gm2_in_co]

Anyone else hooked on the TV show Pawn Stars? Well I am. Next trip to Vegas, stopping in there will be high on my priority list.

But I'm constantly amazed at their discipline and clarity of purpose. I guess its because they don't let themselves get "emotionally involved." So often I see a bass somewhere but particularly on ebay and think to myself, "That's a steal. I could resell it and make some coin." But the reality is that by the time the bidding ends, I get a "good deal" for an instrument I want to add to my collection but without enough wiggle room to make a profit of any significance. Anyway, I admire the Pawn Star guys ability to "hold the line."

[dangnewt]

I like the show as well. It seems that in order to make resale worthwile, you have to pick things up at half the retail value. They wouldn't have been in business for as long as they have if they didn't have that discipline.

[Bassamatic]

I managed a pawn shop for a few years. It was VERY interesting. The bottom line is that you NEVER loan or pay more for an item than half of the STREET value. It is really necessary to do this. You don't know how long you will hold that item before it sells, and you are steadily losing the opportunity cost on that money you paid for it. Also - people usually expect to get a deal on an item from a Pawn shop. Most retail businesses require a markup of 40% or so to stay in business - the pawn shop is the same.

Even when you are careful, you can still get burned. An old story - a pawnbroker friend had a box full of digital watches he had loaned $100 on (They were new to the market at the time) and by the time they came out of pawn 7 months later they were selling new for $50. There are many other items that you can also get burned on if you are not careful.

[Jim Campbell]

Originally Posted by dangnewt

I like the show as well. It seems that in order to make resale worthwile, you have to pick things up at half the retail value. They wouldn't have been in business for as long as they have if they didn't have that discipline.

pawns,used book,record type stores can only function if they give you a fraction of the value of an item......i once lugged a box full of books to a place only to have the guy offer to buy 2 for 10 cents apiece.......so nothing really...

...i reminded him that i could have saved my gas and stood on a corner with my hand out,and probably made more than that in less time,and donated the books to the kidney foundation.....

the odd time you might see a deal in a pawn,but they know what things are worth and more often than not you will be better off buying privately.......the reality of pawns is not what airs on pawn stars