Friday, July 27 2018
Have you ever wondered how pawn shops determine the value of items in their shops? At Cash Express, we provide local customers with the best pawn shop experience in the Philadelphia area. We know that people are often curious about how pawn shop owners set their prices, so we’ve got a few insider facts to help explain.
Pawn shops see a wide selection of items come through their doors. Because of the volume of items that they must deal with on a daily basis, they need to consider a wide range of factors when setting their prices. Pawn shop owners take into account the condition of the item and even the circumstances of the seller when they make an appraisal.
Oftentimes, in-house, third-party brokers are consulted to help store owners make a decision about prices, yet most often, they consult with online resources and Blue Book databases to help provide them with an idea as to what the current market value is. Pawn shop owners try to be as resourceful as possible to ensure that they set fair prices for all of their goods.
Generally speaking, most pawn shops deal with a wide variety of items, such as electronics, antiques, jewelry, musical instruments, sporting goods, and watches. Many carry household tools, DVDs, video games, and watches, as well. Each kind of item has its own unique considerations, but they all have a current market value. Most pawn shop owners consider the market value, in conjunction with the condition of the item. They also consider other details like the accessories and the packaging of the item. Many pawn shop owners also consult with eBay and Craigslist to get an idea of the current market value of particular items.
Most pawn shops who sell a lot of jewelry have someone in their shop with expertise about this industry. They know how diamonds are cut, they understand how the weight of gems factors into their value and they also know what the current prices are for both silver and gold. Most pawn shops use a percentage as a guide for how they price their gold. Pawn shops usually have experts that help them handle antiques, as well.
Interestingly, pawn shop owners also have a tendency to consider each seller’s unique circumstances regarding the item at hand. For example, a pawn shop owner might place value on a particular item based on how important or sentimental it is to the seller. A shop owner might also price based on the frequency of visits from the seller.