Pawn shops become important economic partner for many. Pawn shop...the mere mention of the phrase elicits a vast array of opinions from many people. The opinions about pawn shops these days seem to depend on which group of people you're talking to. For those who have never been in a pawn shop, the opinion might very well be, "I wouldn't be caught dead in one", in spite of the fact that these people may have virtually no understanding of what pawn shops do or who their customers actually are. For the vast majority of the population who are trying to hang on and survive the toughest economy in several generations, the opinion might be considerably different. For someone who just received a cash loan to take care of an unexpected car repair the opinion might be, "Thank goodness for the pawn shop! Without it, I would have missed work and maybe lost my job!"
As with most things in life, everything is a matter of perspective. The devastating global recession has changed the proverbial economic "Playing field" for perhaps a generation. Many people, through no fault of their own, have found themselves on the receiving end of employment downsizing, shrinking housing values and stagnant or declining income. If there is any comfort to be taken during these times, perhaps it is knowing that being frugal, resourceful and improvisational are not only desired skills for many, they are essential skills that have once again become in demand if not downright fashionable.
And therein lies the value of the community focused, family owned pawn shop. Now you may understand the value of a "community focused", because the value of giving back to the community has been an essential part of our civilization since the beginning. But the value of "Family owned" may be a bit less understood. The family owned pawn shop in most cases has been or will be, handed down from parent to child and in many instances, through multiple generations. The people who work at these neighborhood institutions are superbly aware of the needs of their customers and are in the pawn shop business because the pawn shop business is who they are and what they do. As with all businesses a profit must be made for the business to continue to operate, grow and better serve their customers. But unlike most retail businesses, the family owned pawn shop develops a unique relationship with the people that they serve and in recent times the people that they serve are people who have only recently discovered the value of pawn shops.
For the record and for those who do not understand what a pawn shop does or how it works, the principles have not changed much since the days of Queen Isabella in the 1400's (Who happened to get a pawn loan on her royal jewels to finance a famous expedition to the Americas) Essentially, a pawn loan is a secured loan where a customer leaves an item of value with the pawnbroker and receives an agreed upon amount of money. The loan is for a certain period of time and the pawnbroker makes a profit from interest and fees, which in most communities is regulated by the local and state authorities.
If, at the end of the loan period, the customer has not paid the loan or extended the loan, the ownership of the secured item of value defaults to the pawnbroker. The pawnbroker then sells the item at his pawn shop in order to recover the amount of money loaned. In days pasts pawn shops were known as "Gold and Silver Pawn Shops" because gold and silver jewelry were the most common items used as pawn loan collateral. While gold and silver jewelry are still the primary items used as collateral for pawn loans, flat-screen televisions, home electronics, antiques and collectibles have become quite popular as pawn loan collateral. Recreational vehicles, cars and real estate have also become important source of pawn collateral during these trying economic times.
Contrary to what many people perceive, the vast majority of those who utilize pawn loans, estimated to be 80 - 85% pay off the loan and retrieve their items. It is a fact that for many of those who have been impacted by the ongoing recession, conventional loans from banks and other financial institutions are simply not possible due to damaged credit, lack of income or other factors. In the opinion of many, conventional banks are no longer in the business to loan money to individuals and have shifted the bulk of their business focus to private and institutional investors, further narrowing the options for those who need access to funds.
So how do pawnbrokers feel about their rapidly rising role in helping the masses of people who are hoping for "Better days"?
"No matter how much we would like to have a particular item for sale in our store, all of us here at Glendale Pawn and Jewelry understand that the item will never be as valuable or important to us as it is to the original owner.", Grossman elaborated, "We are in the business of helping people. We help people with their immediate financial needs, we help people save 30 - 60% on fine jewelry and other items and we help people by buying excess items that they own and turning those items into cash."
As with most things in life, everything is a matter of perspective. The devastating global recession has changed the proverbial economic "Playing field" for perhaps a generation. Many people, through no fault of their own, have found themselves on the receiving end of employment downsizing, shrinking housing values and stagnant or declining income. If there is any comfort to be taken during these times, perhaps it is knowing that being frugal, resourceful and improvisational are not only desired skills for many, they are essential skills that have once again become in demand if not downright fashionable.
And therein lies the value of the community focused, family owned pawn shop. Now you may understand the value of a "community focused", because the value of giving back to the community has been an essential part of our civilization since the beginning. But the value of "Family owned" may be a bit less understood. The family owned pawn shop in most cases has been or will be, handed down from parent to child and in many instances, through multiple generations. The people who work at these neighborhood institutions are superbly aware of the needs of their customers and are in the pawn shop business because the pawn shop business is who they are and what they do. As with all businesses a profit must be made for the business to continue to operate, grow and better serve their customers. But unlike most retail businesses, the family owned pawn shop develops a unique relationship with the people that they serve and in recent times the people that they serve are people who have only recently discovered the value of pawn shops.
For the record and for those who do not understand what a pawn shop does or how it works, the principles have not changed much since the days of Queen Isabella in the 1400's (Who happened to get a pawn loan on her royal jewels to finance a famous expedition to the Americas) Essentially, a pawn loan is a secured loan where a customer leaves an item of value with the pawnbroker and receives an agreed upon amount of money. The loan is for a certain period of time and the pawnbroker makes a profit from interest and fees, which in most communities is regulated by the local and state authorities.
If, at the end of the loan period, the customer has not paid the loan or extended the loan, the ownership of the secured item of value defaults to the pawnbroker. The pawnbroker then sells the item at his pawn shop in order to recover the amount of money loaned. In days pasts pawn shops were known as "Gold and Silver Pawn Shops" because gold and silver jewelry were the most common items used as pawn loan collateral. While gold and silver jewelry are still the primary items used as collateral for pawn loans, flat-screen televisions, home electronics, antiques and collectibles have become quite popular as pawn loan collateral. Recreational vehicles, cars and real estate have also become important source of pawn collateral during these trying economic times.
Contrary to what many people perceive, the vast majority of those who utilize pawn loans, estimated to be 80 - 85% pay off the loan and retrieve their items. It is a fact that for many of those who have been impacted by the ongoing recession, conventional loans from banks and other financial institutions are simply not possible due to damaged credit, lack of income or other factors. In the opinion of many, conventional banks are no longer in the business to loan money to individuals and have shifted the bulk of their business focus to private and institutional investors, further narrowing the options for those who need access to funds.
So how do pawnbrokers feel about their rapidly rising role in helping the masses of people who are hoping for "Better days"?
"No matter how much we would like to have a particular item for sale in our store, all of us here at Glendale Pawn and Jewelry understand that the item will never be as valuable or important to us as it is to the original owner.", Grossman elaborated, "We are in the business of helping people. We help people with their immediate financial needs, we help people save 30 - 60% on fine jewelry and other items and we help people by buying excess items that they own and turning those items into cash."
About the Author:
Looking for info ? Click here to go to our tucson pawn shop website for the best advice.
No comments:
Post a Comment