Use Business Negotiation Tactics at Pawn Shops

February 28, 2020 - Pawn Resources

Did you know the same tactics used during big business negotiations can help you?

What if a new trick or two could help you score big at the pawn shop?

Those who sell items to local pawn shops know that negotiation is everything. Whether they pay as little as possible or give you a fair price all comes down to the conversation that you and the shop owner have.

Fortunately, negotiation is a skill like any other. And you can learn new techniques and practice your skill until you get the best possible offer.

Keep reading to learn more about the business negotiation tactics that will help you get a great price for your items!

From the Business World to Local Pawn Shops

At first glance, it may not seem like the world of business executives and the world of pawn shop owners are very similar. However, there is a secret thread that links these worlds together.

The life of a business executive is all about negotiation. This includes making sales, negotiating contracts, and convincing investors to put their money into the next big thing.

Because of that, executives and other business types have had to hone their negotiation tactics over the years. And the best part is that these tactics work in places like pawn shops as well!

Keep reading to discover some tactics that will take your pawn shop game to the very next level.

Preparation is Key

The real rookie mistake of selling to a pawn shop is underestimating the value of what you have found. This is why you should do a lot of research before you walk into the pawn shop door.

In the business world, executives have small mountains of information they study before they are in the room and negotiating. This gives them valuable data they can use when trying to make persuasive arguments.

For your individual item, research how much it is selling on places like eBay, Etsy, and other venues that may sell secondhand items. This gives you an idea of how much the pawn shop is likely to charge for it.

Once you know what they’ll charge, you can negotiate a fair price for yourself. Best of all, you’ll be able to use your research to assure the pawn shop owner he will still make a decent profit off of the eventual sale of the product!

Talk Less; Listen More

Sometimes, people get nervous when trying to sell to pawn shops. And this makes them talk much more than they should.

One reality of business negotiation is that you should let the other party do most of the talking for most of your time together. This offers several advantages to you as a seller.

First, it helps you gather more information about the buyer. This is valuable because it lets you “schmooze” with him and to effectively speak his language.

Second, it helps establish trust. He will think you are a good listener and become that much more likely to buy from you.

Finally, it lets you discover more about what he really wants and needs as a buyer. So even if you strike out this time, you’ll be able to strike gold next time.

Analyzing Failure

Preparing to sell something is mostly about preparing to be successful. However, we can learn a lot by examining our failures, too.

Not every negotiation is going to go your way. And it’s easy to walk away simply frustrated that you couldn’t make the sale happen.

However, try to constructively play the exchange back in your head. Try to figure out what it was that turned the other person off.

It may have been how you described the product you are selling. Or you may have seemed a little too eager to get rid of it.

By learning from each mistake, you make yourself much likelier to be successful in your future negotiations.

The Art of Pricing

The local pawn shops see negotiation primarily as a way of talking you down from a certain price. The trick, then, is to have two different prices in your mind before you walk in.

The first price is the actual price that you want this to sell for. However, if you open up with this price, the pawn shop will try to talk you down.

The second price, then, is the first offer you make. This should generally be no more than 50% of the price you were hoping to get from the sale.

As an example, you may want to sell an old computer for $200. You should walk in and initially offer to sell it for $300 and proceed from there.

This is just human psychology at work. The shop owner will think he got a deal because he got this for $100 less than you offered. And you end up getting exactly what you wanted to get!

The Bottom Line

If you’re reading this, you have some great stuff to sell to local pawn shops. However, you might not know where you should start.

This is where we come in! PawnGuru is the ultimate authority on helping you find local shops and selling your items for the highest possible value.

Whether you are looking to sell or maybe trying to buy a hidden gem, PawnGuru has you covered.

To see how we can help you get started, click here to get multiple offers from your local pawn shops!

David Stiebel

David Stiebel is one of the cofounders of PawnGuru. David was educated at MIT, where he studied Math. He subsequently worked at Bain as a data scientist before starting PawnGuru in 2015. He started PawnGuru to build a better tool for pawn shops and consumers to connect.

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