Why do pawn shops rip you off?
The other day, I was watching Pawn Stars. People bring in valuable items, yet they pay them a crappy amount. I know they are supposed to make profit or whatever, but still! People deserve to be payed well for their valuable items4 years ago - 4 answers
Pawn shops provide a service there has to be an element of profit in there but they do not directly buy an item from a customer. The whole idea of a pawn shop is they lend money against an item which the customer can then get back by repaying the 'loan'.
Many people have to pawn things they have no intention of ever actually selling. They dont want full value because they have to 'buy it back'.
Historically pawn shops kept whole families going week in week out. Mother pawning father's suit on Monday morning and 'getting it back' on Friday (payday) so he could wear it at the weekend. Meanwhile there would be some pennies to buy food or pay rent.
I do not know Pawn Stars so cant comment on them particularly.
they have to make money dude.by Love 42 - 4 years ago
Rick has said it time and time again, if he bought items for what they are worth, they would be out of business. People always want full retail value for their items. If you desire that much, don't take your item to a pawn shop, take it to an auction and pay the fees. You may think that they are ripping someone off by buying an item for $500 and selling it for $1,000. But think of this, take a look around the store and look at their massive inventory. Think of all the money they have tied up in purchases that may or may not sell. They had one item sit in their shop 15 years before selling! Making a 50% profit on one item, sometimes just covers for a miss or bust on another.
Source(s)by Phil C - 4 years ago
they got to make money think 500 dollar profit or 2000 dollar profit
Source(s)by Jacob - 4 years ago