Where’s the Best Place to Start a Pawn Shop?

Looking to start up a pawn shop but aren’t sure where to start? Here are a few of the best locations to start up your new business.

An Old Pawn Shop

You might have noticed that most pawn shops have been in business for over 20 years. This is because these businesses tend to be run by families who pass down their shops to their next-of-kin when they retire.

However, you can easily snag an older pawn shop of your very own without those familial connections. You might be able to purchase an older pawn shop when first breaking into the industry, if you’re lucky. The previous store owner might even be generous enough to teach you the ropes to running their old business properly.

Pawn brokers also have plenty of coaching programs and qualified consultants to help your new business thrive in even its earliest days!

High-Traffic Retail Areas

Almost every store owner vies for a good location that guarantees high traffic. More people mean more eyes on your store, and more publicity means picking up more potential business.

Just keep in mind that stores in these areas are highly sought-after by businesses of all kinds, and therefore, their leases are priced much higher than other places. Pawn shops already take quite a bit of capital to start up. A pricey lease might be more of a detriment to your business than a benefit if you fail to turn enough profit.

In fact, most pawn shops tend to settle for a building in an area that does not receive as much traffic but will still remain pretty visible to the public. Be sure you carefully weight the pros and cons of starting up a pawn shop in busy retail areas. Ensuring that you have a good enough financial cushion to withstand a few blows every now and then will also help.

Online

Of course, with more and more consumers switching to online shopping, creating a website for your pawn shop may be your best bet. A good example of a successful online pawn shop is Pawn America.

They are basically a network of pawn shops that have expert teams of appraisers and jewelers on-hand that are ready to help you buy or sell used goods. The site owners take clear and accurate pictures of the merchandise they offer, so you know what you’re getting before you buy. You can also pawn off almost anything you own for a temporary loan you can work out with Pawn America.

Pawn America is just one example of a pawn shop’s site thriving. Of course, you will still need a location to at least properly store and maintain your stock, so creating a website should be treated more as an add-on to your pre-existing physical store than a store of its own. You can even entice customers to visit your site by offering exclusive collectibles or other hard-to-find goods only on your store’s website!

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