How Pawn Shops Work

A pawn shop is a lot like a dozen garage sales, a swap meet and flea market all rolled into one. And pawn shops provide people with an easy, fast way to borrow money.

There are over 12,000 pawnshops in the USA and as the economy has taken a sharp downward turn, the business of pawning has remained stable (if not grown.) The ability to sell items for fast money, or buy items for lower-than-retail prices is more important than ever. 

Pawn shops are found throughout the world. There are pawn shops in all 50 states and in Washington DC, and each state has its own laws governing pawnshop operations (for example, the amount of time a pawn shop can hold an item), reporting, loans and interest rates. New York, for instance, limits interest to four percent per month. Some states allow higher rates. The number of pawn shops per state (source: uspawnshopdirectory.com):

Pawn shop’s main business is collateral loans: you give them something of value to hold, they loan you a percentage of the value of that item at a (surprisingly reasonable) interest rate. If the customer returns and repays the loan with the interest, he gets his item back. If he doesn’t return, the pawnshop sells the item. Pretty simple.

Pawnshop customers tend to be anyone really; those who need money quickly to meet an immediate need, like an electric bill or Christmas present, or people looking for an easy way to clear out their used items and make a little cash. Bargain-hunting buyers would be secondary customers; those looking for used, gently used or even (with luck) new items at low prices.

 

 

Pawnshops pay only 33% or so of the resale value of the item, but customers accept the amount because their need for the money is more immediate than their desire to get the best price.

MSiT - The Online Pawn Shop

Faster and easier alternatives to pawn shops, flea markets and swap meets are growing. One such example is MustSellitToday.com.

MustSellitToday.com is a website that allows "must" sellers to make more than that 33% and still get money fast with a system that requires buyers to pay fast. Sellers consider lower offers (less than full value) in exchange for fast payment, so buyers have the opportunity to get bargains if a quick, acceptable offer is made and paid right away.

Many folks feel that the shops seem “shady” or have a less-than-desirable image. Taking what a pawn shop offers—fast money for a used item—and offering it on the internet eliminates the need to visit a pawnshop in person. MSiT urges “must” sellers to price items low for faster sales and requires buyers to pay within 4-12 hours. In many other cases, buyers may take weeks to pay. At MustSellitToday.com, you could potentially list an item and get paid in as little as 5-6 hours.

MSiT isn’t the next online auction; MSiT is a different online auction. Sellers try to get the fastest acceptable price and buyers try to get their ideal purchase for an ideally low price. Faster, easier and cheaper: This is MustSellitToday.com’s mantra and the new possibility for pawnshop customers to sell, or buy, items with this model in mind.