Ever get frustrated taking items to pawn shops?
If you’ve ever been trying to sell or pawn an item, you probably took it to multiple stores to have it appraised and got all sorts of different quotes on how much your item is worth.
But there is actually a lot more that goes into the process of how pawn shops determine price. They have to consider the other inventory they have and what they think they can get for the item as well as other factors. Read on to learn more.
How Pawn Shops Determine Price by Existing Merchandise
When you sell items at a pawn shop, they check to see what other goods they offer that are similar to yours. Then, they consider what the market value is of your item compared to what they already have and see if it makes sense to buy it.
They will consider how many of your item they have sold in the past, how good the economy is in general, and how good of quality your item is compared to what they have.
Using a Value Database
There are many different value databases that pawn shops can use to look up how much the item you are offering is worth. The resale value will be published in a sort of “blue book” for every kind of item.
Your pawn shop specialist may also consult online ads to see how much items are going for on websites like eBay.
Consulting a Specialist
If your pawn specialist doesn’t have any idea how much an item you are selling is worth, but they really want it, they may call in an expert to consult on the sale.
This could be the case with a historic or antique item that has a value that can vary greatly from buyer to buyer.
Considering Sentimental Value
Many pawn shop transactions don’t consider sentimental value at all since the pawn shop is a business that needs to make sales in order to make money. But if you are just looking to loan your items in for cash, then sentimental value could be a way to ensure you get more for a good since they know you will want it back.
A pawn shop owner might also give better loan prices to people who work with them often and are a member of the community the store is located in. After all, they are small business owners who work under their own discretion.
Pawn or Sell an Item Today
Now that you know how pawn shops determine price, you can get an estimate for home much your items are worth and decide if you want to part with them. Try to be realistic with yourself and ask for what you need, but also be willing to accept a fair amount.