Pawn Shops (Near Me): 7 Tips for Pawn Shop NegotiationSide Hustles
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Once in a while you may need to visit a pawn shop open near you, either as a buyer or a borrower
Maybe you’re trying to unload some items that have been piling up in your garage that others may find more value in than you do.
Or maybe you’re a borrower, looking to get the biggest pawn loan possible secured by your asset.
Whatever reason you’re looking for a pawn shop, you can be sure that you can find one not too far from wherever you are.
But before you go, make sure you review our 7 tips on negotiating at a pawnshop.
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They say knowledge is power, and nowhere is this more true than at a pawn shop.
Whatever the items is that you’re looking to buy or sell, make sure you do your research so you know how much it’s worth.
Once you find out the fair price of whatever the item is, raise your price (if you’re a borrower) or lower your price (if you’re a buyer) by, say, 30%, and use that as your starting price in negotiations.
Maybe 30% sounds like a lot, but keep in mind that the other party will want to chip away at you, so it’s better to start out pawn shop negotiations with some breathing room.
2. Build Rapport with the Pawnbroker.
Contrary to what some rude people believe, building rapport with and being friendly to the other party will go a long way in negotiations.
When you walk into the pawn shop, confidently (but not arrogantly), introduce yourself to the pawnbroker, asking for their name and using it in your negotiations.
Here are some tips for building rapport:
- Use the pawnbroker’s name throughout the negotiation.
- Keep your body pointed toward them.
- To the extent possible, remove any objects between you and the pawnbroker.
3. Be Patient.
If you rush through negotiations, you will leave money on the table.
Don’t play your hand (i.e., price) too quickly; don’t even mention the price you have in mind within the first five minutes of negotiations.
Let the other party play their hand first.
If they don’t volunteer their initial price within the first five minutes, casually ask for it after chit chatting a while.
4. Play Dumb.
Humans, as a species, like people that they can teach.
So if possible, play dumb, and let them explain the product to you.
Let them see themselves as the expert, and they will subconsciously develop a liking for you, which is to your benefit in the negotiation.
5. Never Give Up Your Limit.
You surely have in mind a price floor (the lowest value you would entertain if you are a borrower) and a price ceiling (the highest price you would accept if you are a buyer).
And that’s OK, but never give up whatever that number is to the other party.
6. Use Silence to Your Advantage.
Silence is an extremely powerful tool in negotiations.
After the other party has given their initial price (see # 3. above), and you counter it with something much higher (if you’re a borrower) or lower (if you’re a buyer), be quiet!
Yes, it will be awkward, but you have to fight through the silence.
The strategy here is to make the other party “give in” to the awkwardness and either accept your counteroffer or at least lower their price a bit.
7. Don’t Be Afraid to Walk Away.
Tell yourself before you walk into the pawnshop that it’s OK if a deal isn’t made today.
Until you are willing to accept this, you will routinely pay too much (if a buyer) or accept too little (if a borrower) for the item being negotiated on.
Remember, there are a lot of pawn shops near you, and it’s OK to move on to the next one.
Logan is a practicing CPA and founder of Choice Tax Relief and Money Done Right. After spending nearly a decade in the corporate world helping big businesses save money, he launched his blog with the goal of helping everyday Americans earn, save, and invest more money. Learn more about Logan.