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Went To The Pawn Shop Yesterday...

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Stacker82's Avatar
United States
157 Posts
 Posted 03/18/2015  12:16 pm Show Profile   Bookmark this topic Add Stacker82 to your friends list Get a Link to this Message Number of Subscribers
The same one who wanted $90 for some regular panda the last time I was there was maybe a month and a half ago.

He has a label of "Walking Liberty" and about 8 of the ugliest Eagles you have ever seen priced at $30 each, plus tax. Then he has some 1/2 oz brand new sunshine mint for $15 each. He has about 10 Morgans all priced at $25 each, from 21's to some other dates, but mainly 21's. I know $25 isn't such a bad price, but I can get them cheaper. You'd think the guy would go down or give up by now, because it is one entire case taking up room. I asked him yesterday, you're still pricing those at $30 eh? LoL, he didn't barely nod his head.
I know the practice in business is to not take a loss, even if it's a penny, but at the end of the day, people don't seem to realize, the dollar drops, there's all sorts of factors (even though the dollar is gaining) to just cut your losses, I mean the guy probably paid $10 each for them... and silver isn't going to go anywhere near where paying $30 for the dirtiest silver you've ever seen again for a long time. Just thought I'd update.
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CGCoins's Avatar
United States
797 Posts
 Posted 03/18/2015  12:38 pm  Show Profile   Bookmark this reply Add CGCoins to your friends list Get a Link to this Reply
I have the same problem at the Pawn shop across from my work.

He bought so much when silver spiked, and refuses to lower his prices because he does not want to lose money.

Cheapest Morgans he has are 30 for common date/vg, and he has a bunch. Scrap Dimes/Quarters are all much higher than reasonable, $1.90 per dime, and 3.95 per quarter.

I just seem to shake my head at places like that, its a wonder how they stay in business.
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billymac11's Avatar
United States
613 Posts
 Posted 03/18/2015  1:07 pm  Show Profile   Bookmark this reply Add billymac11 to your friends list Get a Link to this Reply
You know, if the guy's that stubborn, take them off display, put them away till his price comes back (could be a while) and put something in the display case that'll move and make some revenue, instead of frustrating himself and potential customers.
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Stacker82's Avatar
United States
157 Posts
 Posted 03/18/2015  1:09 pm  Show Profile   Bookmark this reply Add Stacker82 to your friends list Get a Link to this Reply
It really is, at some point ya gotta cut your losses. Silver isn't touching $25 to make those ugly things even remotely "pretty" to someone. And that $90 panda..... LoL, just in a plastic baggy. I figured with the $15 per ounce he would've lowered them down. He has 2 2007 ms69 Eagles, might be first strike I can't remember, but for $30 as well. I bought one when spot was at $19.
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duncanbishop24's Avatar
United States
898 Posts
 Posted 03/18/2015  1:45 pm  Show Profile   Bookmark this reply Add duncanbishop24 to your friends list Get a Link to this Reply
If he sold move and moved his prices as spot moves and operated on a margin he'd probably do better. Like what APMEX & JM Bullion do.
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T1Steel's Avatar
Canada
623 Posts
 Posted 03/18/2015  7:08 pm  Show Profile   Bookmark this reply Add T1Steel to your friends list Get a Link to this Reply
The pawn shops don't do that with just coins.
Tried to make a deal with a pawn shop on some tools, asked for 10% off no way he said.Came back through 3 months later still sitting in the same spot.
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Stacker82's Avatar
United States
157 Posts
 Posted 03/18/2015  7:50 pm  Show Profile   Bookmark this reply Add Stacker82 to your friends list Get a Link to this Reply
It's weird isn't it? to me it makes sense to take a $20 loss and put something up that's gonna sell for a $40 profit, so there wipes out your loss. Plus business's can write off loss's. Oh well, I won't understand, and I'm guessing there's a reason. There isn't a lot in the shop though, just a bunch of ugly morgans for $25 and tax and THE ugliest "walking liberty's" you've seen. They have walls full of your pre-made typical chains, in the same pattern you see everyday. I mean they don't have TV's or anything, it's weird... but they do accept credit cards, so I know it's gotta be legit somehow. lol.
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ChildOfTheWheat's Avatar
United States
5828 Posts
 Posted 03/18/2015  9:41 pm  Show Profile   Bookmark this reply Add ChildOfTheWheat to your friends list Get a Link to this Reply
My pawn shop sucks. I was lucky one day to get a worn '48 dime for $2! Normaly the price is $3 per dime, $8 per quarter, $9 per 40% half, and $18 per 90% half! Morgans run at $35 a peice for the 1921, and Peace dollars cost the same with the '22. Most coins are cleaned.
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Bertensgrad's Avatar
United States
1192 Posts
 Posted 03/18/2015  10:05 pm  Show Profile   Bookmark this reply Add Bertensgrad to your friends list Get a Link to this Reply
That is super high I laughed at mine selling a 40% half for $4. I'm getting 90% walkers for $7 right now at my favorite coin store.
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ChildOfTheWheat's Avatar
United States
5828 Posts
 Posted 03/18/2015  10:11 pm  Show Profile   Bookmark this reply Add ChildOfTheWheat to your friends list Get a Link to this Reply
Yeah bretensgrand, I'm now giving up that pawn shop, and I'm not sorry :)
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Avshater22's Avatar
United States
337 Posts
 Posted 03/18/2015  10:32 pm  Show Profile   Bookmark this reply Add Avshater22 to your friends list Get a Link to this Reply
My local pawn shops prices vary. I've picked up some what I thought were some good deals. I bought 2 1901 o Morgan's and a 1992 ASE for $20 a piece. He has some other Morgan's for more which some are nicer and he's sold me some junk silver right at spot. But then he has some basic wheats for .50-$1.00 and some other random things way overpriced. Seems to me it's hit or miss there and I only buy when I feel I'mgetting a good deal.
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Bertensgrad's Avatar
United States
1192 Posts
 Posted 03/18/2015  11:43 pm  Show Profile   Bookmark this reply Add Bertensgrad to your friends list Get a Link to this Reply
I had good deals too. He had damaged 1981 proof sets that he was selling for $3 that I talked him down to $2.50. Coins were unharmed so I put them in flips and traded them to a dealer for a common Peace dollar and a classic commentative half that went for $20. Turned a $25 pawn shop purchase into $45 one for my labor.
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SPQR's Avatar
United States
327 Posts
 Posted 03/19/2015  5:22 pm  Show Profile   Bookmark this reply Add SPQR to your friends list Get a Link to this Reply
Laughing at you guys but not in a bad way. You gotta know how Pawn Shops work to understand them. Pawn shops aren't in the retail game; not really.
They are in the high interest loan game.
What they make off the stuff they sell is FAR below what they make in loaning money out to the ignorant and unwise that are their primary customers. Most of whom are repeat customers, many times over. Normal rates run 30-50 percent interest (on what on average is about one third of the perceived retail value of the item). Most of the time people pay up and retrieve their items, frequently at over what a new one might cost. Even if they make all of the payments except the last one, once they default the item will be sold for what the perceived value was at pawn, so the profit margin may go as high as 100-150% over the loan amount.
That $100 dollar item you bought there was probably pawned for $30 or less. The pawn was paid back $20, but went south and forfeited for $10. $100 purchase +20 pawn payments, $120, minus 30 dollar pawn equals $90 profit. Jewelry frequently pawns at less than 10 percent of retail value as pawnbrokers routinely discount stones and only offer value for scrap gold/silver.
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