need info on pawnshop business

[john_dux]

(to the mods, pls check and kindly merge if there was a previous thread like this, havent found one using search, thanks in advance)

guys, kinsa ninu naa idea how a pawnshop works? kanang prenda2x nila... and unsa profit margin ana nila..

ganahan tana ko mag start pawnshop business nga mo focus on electronic gadgets.....

please give me an idea on
1.) capital requirements
2.) marketing
3.) important stuff to consider

and also.. naa mo nahibalan nga pawnshop nga specialize pud sa electronic gadgets.. kanang nindut.. please inform me sa ila location nd store name para ako i visit. para studyhan nako ila operation...

[kit_cebu]

jerome's ug jardul's bro...

[dorian]

I'm in this kind of business, but i don't concentrate on gadgets. But my friends pawnshop does.

To answer your questions:

1. To start, make sure you have at least 1 million. But you will be adding more capital as you operate for maybe a year (depending on how strong it will be turning out)

2. I didn't really do much about this, just the regular streamers, tarps and signage,

3. Make sure it's accredited with BSP.
Terms and conditions that you will printing on your pawn ticket should be with accordance to the rules of BSP, so make sure you attend seminars, they usually add or alter something every 1 or 2year/s. This will be for your own protection.
Always be aware of the gadgtets' appraisal values of pawnshops around you, how they compute interests and, their maturity and grace period. You can use these for your own gain.

Another thing that's really important is to gain your customers trust. Their items should be sealed in front of their eyes to convince them you will not be using it.

Maybe I can help you some more. Just send me a PM for your inquiries.

[pogy_uy]

up for this.

I am planning whether to go legit on my lending biz or my sangla biz. all have a paid up capital of 1million.

do u have recommendations on online blogs or links that we can get more info about pawnshop?

@dorian, "Always be aware of the gadgets' appraisal values of pawnshops around you, how they compute interests and, their maturity and grace period. You can use these for your own gain."

how do u do this? do u have employees assign to check out on the competition? periodically?
how can we compete with the Big Boys? What's your strategy.
are u starting out? how many branches do u have? What's your interest range? service fee?
IF the jewelries that are rematado fail to be sold during auction, is there an existing market where in we could sell it to a trader? So that we could have a good cashflow.

I hope u can answer my query. Thanks!

[dorian]

up for this.

I am planning whether to go legit on my lending biz or my sangla biz. all have a paid up capital of 1million.

do u have recommendations on online blogs or links that we can get more info about pawnshop?

@dorian, "Always be aware of the gadgets' appraisal values of pawnshops around you, how they compute interests and, their maturity and grace period. You can use these for your own gain."

1. how do u do this? do u have employees assign to check out on the competition? periodically?
how can we compete with the Big Boys? What's your strategy.
2. are u starting out? how many branches do u have? What's your interest range? service fee?
3. IF the jewelries that are rematado fail to be sold during auction, is there an existing market where in we could sell it to a trader? So that we could have a good cashflow.

I hope u can answer my query. Thanks!

Answers: About the blog, I dn't really know since we've been in this business for almost 30 yrs.

1. Not actually employee, usually friends. Sometimes, we pawn some items to other PS, take a look at their terms and conditions (this includes interests and maturity period), w/c is written on their pawn ticket then compare it to ours. Twice a year is not bad. But after establishing a name and getting loyal customers, you won't be needing to do this anymore. You will be doing this to give your future customers, service/offer that they won't get from pawnshops around you. You can explain to them why your service/offer is better than the others since you know how other PS deal with customers.

2. Our family started our first PS duirng the 80s. I started my own in 2004. Interst range is 2.5-5%. We don't charge service fee, and no advance interest.

3. This is the hardest part. to keep up with the big boys, you have to measure up to their apparaisal values right? Most of the time, around 70% of the customers don't care about the interst. Their main concern is how much their item's value is, this makes it harder. You will have a high loan value, and it will be difficult for you to sell it as scrap anytime you want because gold price varies everyday.

I know people who buy gold, but they are based in Manila. Maybe I can help you if you have some that you want to dispose. I haven't found any scrap gold buyer here in Cebu yet.

[pogy_uy]

^ thanks for the honest reply dorian. can u pm me ur email? so if ever you won't be active in istorya, i can still ask questions from u about PS.

So from 2004 til now bro, have u expanded ur PS outlets?

Ryt now, l'm still doing my own homework about PS. More power to your business!

[dorian]

I'll send my email thru PM

I haven't added another branch yet. I was not concentrating in PS from 2004 until mid-2008. I was working with different projects at that time. But sh*t happened, I invested on some things and got nothing in return. In 2008, I put up a branch but I had to close it down eventhough it was doing good, my clients doubled in just a span of 6 months (long story, it was a partnership).

Thanks. Same to you. Check your inbox