2007-01-22 07:27:52 · 5 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
They buy low and sell high. When an item is presented to the pawnshop, only a fraction of its value is given. The person who pawned it has to pay back that amount plus an agreed-upon interest for the duration of the loan, while the item is held by the pawnshop as collateral. If the person reneges on the loan, the pawnshop gets to keep the item and has the right to sell it at cost, or higher, depending on current demand and prices.
The pawnshops profit from the interests on loans and they make profits from unclaimed items sold for more than what the previous owners were lent.
2007-01-22 07:36:57 · answer #1 · answered by JADE 6 · 0⤊ 0⤋
They loan you money for your property, hold it for up to ninety days and then charge you interest on the money they loaned you on your property. Then if you don't pay back the loan and the interest on or before ninety days they sell the property and make their profit.
2007-01-22 15:46:19 · answer #2 · answered by Slim Jim 1 · 0⤊ 0⤋
Ãou bring me an item, I loan you some $, you come and get it and pay me my $ plus some interest. If you don't come get your item, I sell it for more than I loan you
2007-01-22 15:32:14 · answer #3 · answered by Anonymous · 0⤊ 0⤋
in interest charges and sometimes people don't pick up there pawns and the shop puts them up for sale.
2007-01-22 15:33:06 · answer #4 · answered by native 3 · 0⤊ 0⤋
They buy stuff and then resell them for more than what they paid for it.
2007-01-22 15:35:26 · answer #5 · answered by Amanda S 2 · 0⤊ 0⤋