The Big Secret “Pawn Stars” Doesn’t Want You to Know

When I was growing up, my family oscillated wildly between doing quite well and being dirt-poor, depending on how well my father's latest business scheme was doing. Like yours, my mom was an aggressive coupon-clipper and thrift-store haunter. She eschewed pawn shops, though, telling me that they rip people off and she wouldn't help them make money by buying used stuff from them even if it WAS a bargain. One thing I remember her saying in particular was (and I'm sure I paraphrase): "If it's worth $30 but you can buy it for $25, it's a certainty that they paid some poor bastard five bucks for it."

I've used pawn shops on a couple of rare occasions since then, and I've stood waiting in line while the guy with the green eyeshade told the customer in front of me that he just can't give him more than ten bucks for his wedding ring. Once, I just walked out.

Of course, we only had one pawn shop where I grew up, but an abundance of thrift stores, so we could get all sorts of used stuff whenever we wanted. My mom felt better about buying something from Goodwill or the Salvation Army than contributing to Slippery Vito's retirement fund.  

Thrift store, Goodwill, pawn shop, they all have their uses.  Since that transistor radio probably saved my parents a few dollars, and Maxie made a few dollars in the bargain, I'd not fault either one.  I have no doubt Mom had performed her usual price comparison duty to the nth degree. 

I would bet that most who sell something at a pawn shop is at some level of need, maybe desperation.  Who am I to judge?  Necessity is the mother of invention, hence the invention of pawn shops, however many centuries ago.  Take the bad with the good.

Well, I do judge people who take advantage of and profit from other people's desperation---and not favorably. Preying on the weak is not exactly a noble way to work your passage through life. But then (sigh), that's what Vegas is all about, so maybe it's the perfect setting for a "reality" (har de har har) TV show about a pawn shop.

I don't fault anyone who looks for bargains at a pawn shop. My personal feeling, though, is that if I get such a bargain, it came out of someone else's hide. They forked over something valuable, got a pittance for it, the pawn shop owner sold it to me, he made a profit, and I got a bargain. Hooray for us!

I wonder if Craigslist has cut into pawn shops' business at all. After all, if Slippery Max will give you $10 for your wedding ring, I'd certainly be willing to give you $20, right?

Walk into any pawn shop and look at their prices. Not jewlery- tools.Retired auto mechanic and I know what these tools go for on FEE PAY. Electric drills, impact wrenches and more. Look at the price and roll your eyes! If you see something that you like ,offer them 1/2 and when they so NO, just walk out.

Like American Pickers, I like to bundle.Lay your items on the counter in a pile and make an offer.Always haggle over prices.

My husband had tools stolen from a storage place (probably a two-bit storage place but that's another story).  Naturally he couldn't find receipts for some of the older ones but they were all good.  Insurance covered maybe half.  No doubt many went to a pawn shop.   

Lessons: Save receipts.   Etch your name in your tools.  Take photos.  Those things you intend to do but never get a "round tuit".

I think those "traders" who's bread and better are pawn shops (the owners or employees) who offer $10 for a several thousand dollar wedding ring are the epitome of the worst sides of humanity.

There was one guy who had his own reality tv "warehouse store" where he would go around and buy items from vulnerable people like you or I. He would blatantly lie to them (and his customers). He would then look at the camera all smug and acknowledge he lies just to close the deal. 

More than anything, these kinds of people and others with similar mindsets seem to be amplified by all the extremeists such as anti-maskers and conspiracy theorists — anyone who seemingly have some sort of cognitive or emotional "defect" or "disorder".

If pawn shops were truly ripping people off to the extent most people think, they'd be making tons of money, their owners would be filthy rich and then there would be one on every corner.  The reality is that the vast majority of them barely get by.

Well, ripping off POOR people has never been a very lucrative pursuit. Survival, maybe.

I think you missed the point.  If pawn shops barely get by purchasing items for half their retail value, then that is the proper wholesale price.  So they are not ripping people off.  They're paying them proper market value. Prime retail real estate, building maintenance, employee salaries, health insurance, liability insurance, accountants, legal fees, electricity, advertising, etc etc etc all cost money.  For every item in the shop, there has to be a difference between the buy and sell prices.

If you disagree, then you are free to open your own pawn shop and buy items for the exact same price you sell them for.  Good luck!  I can't wait to hear your business plan on Shark Tank.

Well, you show a pretty basic misunderstanding of business practices if you think that pawn shops buy items for anything remotely close to half of their retail value.

Once again, preying on the weak and the desperate is a mediocre business plan at best and certainly is morally reprehensible.