2007-01-18 06:27:54 · 27 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
simple ... they buy things at a less than worth value... and sell them at there true worth value ...
example - i take a 100 dollar watch in ... they give me 40 for it ... and sell it for 60. Thats a 20 dollar profit for doing basically nothing.
im sure they make very good money .
2007-01-18 06:32:18 · answer #1 · answered by NA2006 2 · 1⤊ 0⤋
Normally a pawnshop will give you maybe 25 =50% of what an item is worth and you only have a certain number of days to redeem it back with the ticket, like 30-90days. After that they can sell it for more than they paid you so they always make a profit.
2007-01-18 14:31:24 · answer #2 · answered by Tapestry6 7 · 1⤊ 0⤋
The lifeline of a pawnbroker is jewelry. However: if a pawnshop did pay you... say 30% of an items value, there is no way they can sell it for 100% value.
Who goes into a pawnshop to pay retail, you?
So most items go to scrap dealers and e-bay.
2007-01-21 00:54:16 · answer #3 · answered by armen b 1 · 0⤊ 0⤋
Most pawnshops also charge HUGE interest on the money that the pawned item secures if you ever actually DO redeem it.
If they lend you 20 bucks on a 100 stereo, you'll be paying back 50 or losing the stereo (Example)
2007-01-18 14:33:31 · answer #4 · answered by wizjp 7 · 0⤊ 0⤋
They give you much less than the actual value of the item pawned then if you don't buy it back in the time limit they sell it for a profit.
2007-01-18 14:31:39 · answer #5 · answered by Chrisssy 2 · 1⤊ 0⤋
Buy charging interest on items people pawn. Also if the person does not come back for the item, it is sold making more money. They only loan the lowest possible amount in case it has to be sold.
2007-01-18 14:31:19 · answer #6 · answered by Sparkles 7 · 2⤊ 0⤋
Buy low, sell high.
If you are leaving an item temporarily for some short-term cash, you can expect to pay a surcharge or commission to them when you return.
And don't expect them to give you anywhere near what it's actually worth, because they don't expect, or even want you to come back for it.
2007-01-18 14:30:18 · answer #7 · answered by DT 4 · 1⤊ 0⤋
They sell things for more than they buy them for. Same way any store makes money.
You bring a piece of jewelry worth $100. They give you $35 for it and sell it for $100. Cha-ching! $65 profit.
2007-01-18 14:30:03 · answer #8 · answered by Blunt Honesty 7 · 1⤊ 1⤋
They give dope heads just a little bit of money(just enough for their next high) for the expensive things they stole and brought in the store, then they turn around and sell these things for a huge profit (AKA ...MARK UP)
2007-01-18 14:31:25 · answer #9 · answered by CRYSTAL S 6 · 0⤊ 1⤋
Buy something from you for $5 and sell it for $75. The idea is that you sell it and go back for it when you have $, which never happens.
2007-01-18 14:31:22 · answer #10 · answered by nyckib 3 · 1⤊ 0⤋