how do pawnshops make profits?

Answer 1

There are three ways they make money. They used objects as collateral and collect interest when the person returns to claim whatever they pawned. They sell new, often surplus stuff for more than they payed for it. Sometimes people don't come back to claim their stuff so they sell it for more than they gave the person. Pawn shops give money way below market value. That $200 ring might get you a $20 loan.

Answer 2

pawn shops buy items at low prices and resell. They also loan money on pawned items at a high interest rate and can sell the item if you do not repay the loan when due