5+ Costly Mistakes Most People Make When Pawning
Pawning is a great way to make money but only if you avoid common pawning mistakes. Here are five such pawning mistakes and how to avoid them.
1. Misunderstanding Gold
Gold is one of the most common items that come through the doors at a pawn shop, yet gold itself is one of the least understood items on the planet. You see, the price of gold doesn’t operate like regular fluctuating stocks. It’s remarkably stable and, as a result, pawn shop owners understand the worth of an item mostly by placing it on a scale. Many people who try and pawn gold items try to over-negotiate when the pawn dealer understands just how much they can make by selling it to be melted down.
2. Being Sentimental
Sentimental value is important to some people, but your love of an item isn’t a big factor in pawning. In fact, it works against you when buying and selling. For buyers, they will often pay more than they need to for something they really want. For sellers, they will hold off on a fair price because they are convinced the item is worth more when it really isn’t.
The best way to avoid getting sentimental is to seriously assess whether you want to part with items you are pawning, and to not get overly-invested in items you want to buy before you make your offer.
3. Extreme Negotiating
There is rarely an item in a pawn shop that has a 300 per cent markup, yet many people buying things will try and lowball to save money. Negotiation can be part of the pawn shop experience but assuming large profit margins will shut down negotiations before they get you a stellar deal. The same applies when you are pawning items off. Understand the value of your items and negotiate from there.
4. Not Doing the Research
If you walk into a pawn shop with some items to sell and you haven’t done any research, you will often leave with those items still in your possession. The reason? Pawn shops don’t buy just anything. Be sure to head online and figure out what pawn shops are usually looking to buy and, while you’re there, do some research on what to expect in terms of cash in hand for those items.
5. Breaking Up Collectible Sets
Collectibles are a large part of the pawn shop market, but many people do not understand how to sell their collectibles to make the most amount of money. The best example is collectible sets. Too often, people will try and sell collectible sets as individual items, not understanding that they can often make more for the entire set. After all, not having to hunt down the individual pieces is a major convenience that many people will pay for.
If you are looking to pawn some items, it is in your best interest to do some research on what you want to sell. By taking the time to learn about pawning and your items, you can actually negotiate a better deal and sell more things. Also, be sure to always go to a reputable pawn shop for your pawning.