Hock It To Me - Pawn Shops
Pawn shops are not a business I have any experience with. However, as poor peoples bankers they obviously are prime players in the Invest in Debt game. I have bid on a couple of guide books for how to run a pawnshop on Ebay, but they are out of print and I have never been able to find one I could afford.
A pawn shop must be able to quickly evaluate the re-sale value of an item they are offered and always have enough cash to meet demand. The valuation process should be much easier now with access to completed item information from Ebay. I have also heard of pleople using scoutpal and other plans to access Amazon data from their cell phone. If the phone is equiped with a bar code scanner the process is quuick and very discrete.
In the past, I am sure getting their cash out of dead pawn was always a problem. With the rise of Ebay checking values and a venue to sell are no longer an issue. It has to have changed the business completely.
I have purchased a few items at pawn shops and got a beautiful turquoise and silver bracelet for my daughter one time. However, now I can find a better selection on Ebay without the hassle of driving from store to store.
Interest rates are much like those in the car paper business, but the collateral is locked in a vault, not driving around town!
I have more personal interest in Old Pawn from the southwest. Old Pawn is a prized find in trading posts around the indian reservations. It is sometimes possible to buy really nice old pieces of indian art that has come out of pawn at the trading posts.