Pawn Stars

Cafe Society
1

We’ve just recently had A&E added to our cable here in Australia, so we’re only now getting a whole bunch of ‘reality’ shows, including Pawn Stars.

As distasteful as I find it, I can understand why the store offers such lowball amounts to buy. It’s a business afterall, they need to make a profit. I really don’t get why the ‘customer’ accept it though. A few hundred I can understand, for covenience, but if you know you’re getting hosed in the thousands why not find an alternative avenue to sell? The absolute worst I saw yesterday, the expert called in to consult on the value was an auctioneer specializing in these types of items. Then the pawn shop did its obligatory ‘it’ll be hard to sell, blah blah’ I offer you 4k for an item we just valued at ~10k.

Why would you not just grab the auctioneer standing right there, and consign it to him? Surely an extra 3-4k is worth waiting for the time it would take to auction?

2

My WAGs:

  • they need the money urgently
  • the money they are being offered is close enough to what they thought the item was worth
  • they don’t understand how auctions work

I also think it’s similar to the whole immediate versus deferred gratification thing. Put a child in a room with a sweet and tell them if they can sit there without eating the sweet for 5 minutes, you’ll give them two sweets. Leave the room. Most of the time, the child will chose the one sweet for the immediate gratification.

3

I haven’t watched the show, but is it based on real life pawn shops?

If so, I understood they held an item for a certain amount of time before flogging it. So the person who has the ticket can redeem it.

If that is not the case I go with what Sandra says above.

4

It’s shot in an actual pawn shop in Vegas, but AFAIK most of the interactions on the show are fairly scripted; it’s not just random people walking in with neat stuff. Though for the most part, if you have something of value you can either sell it to the shop (at the lowball prices GreedySmurf is talking about, or pawn it for a short term loan. Most people on the show are looking to sell their item.

The pawn shop on the show is in Las Vegas, so I wouldn’t be surprised if that was the most common reason.

5

It’s a particular pawn shop in Las Vegas. They always ask the question if they want to sell or pawn it. I’m referring to where they flat out want to sell.

One other thing, I don’t know if pawn shops are more common or ‘acceptable’ in the States, but some of the things that are brought in to sell, A pawn shop is about the last place in the world I would think to take them if I was thinking of selling. Things like genuine historical artifacts for instance.

6

Thanks for the info about the show. There used to be quite a few pawn shops around in the 70’s but I haven’t seen one in years. I think in Qld places like Cash Converters replaced them- and they were just glorified pawn shops anyway.

I went into one once to see if I could pick up something like war medals. They had none and the prices they had on crap was horrific.

7

Shows like this are heavily scripted. A lot of the supposed customers probably don’t sell their items at all. They get a chance to be on TV and show off their prized possession.

8

Pawn shops offer cash money immediately. Selling other ways takes time, and involves some degree of speculation. Maybe a buyer can be found that would pay more, maybe not. I assume anyone attempting to sell something to a pawn shop has some urgent need for cash, or isn’t interested in putting the time/effort into getting top dollar.

9

The pawn shop in Pawn Stars (Gold and Silver, I think it’s called?) is actually fairly unique in that regard. It started off as your typical “pawn your wedding ring for an extra $50 at the roulette table” kind of place, but has built itself up as dealing in more expensive, historic, and exotic goods over the years.

So your average pawn shop in downtown LA is NOT going to be the best place to sell your antique civil war musket…which does make me wonder, since the show has been airing, how many of these cruddy, scummy, local pawn shops have to deal with people bringing in shit they have no desire to buy/sell.

10

I assume most things get sold to the Pawn Star guys because most people are there to sell things to the Pawn Star guys. Especially these days where everyone knows the show. It’s their couple minutes of fame. They’re trading a percentage of the item’s value for quick money and a shot on TV.

I’ve never been convinced that “need money because it’s Vegas” factored too heavily into that. Guys who lost big at the roulette wheel pawn their wedding rings and watches, not their 1791 French Revolution era rifle that they just happened to take with them on a weekend bender. I assume most items come from out of town and that Las Vegas isn’t awash with items of antiquity all seeking new homes.

11

How do you know that?

12

Nitpick. Something can not be “fairly unique”.

It is unique or it is not.

13

Pay attention to the show, read the comments of people who have been on the show, and read Rick’s book. He tells stories of how they started, how they got into high-end items, and the regulars who really pawn stuff rather than sell it.

Besides, most of the experts Rick calls in aren’t based in Las Vegas to begin with. They have to come in on specific days to shoot their segments. Mark isn’t just going to drop everything and leave the museum just because Rick has a question about a piece of crap somebody wants to unload.

14

To add to what** silenus** said:

If you look you’ll notice that they have shots where the shop is crowded with people just wandering around yet when they focus on one person and their do-dad the shop is almost or completely empty. So those shots are staged.

15

A lot of folks who are pawning and selling stuff just need a hit. When you need a hit, you are not in a good bargaining position. Some things simply cannot wait.

At least that’s why I did it back in the day.

16

Rick often says in his “talking head” interviews stuff like “I know tons of collectors who would want to buy this” meaning he probably doesn’t wait for someone to come in to the store wanting a vintage Coke sign or a French musket. He calls up Tim The Coke Collector Guy and says “hey I got something for you” or better yet goes on the French Musket Collectors Of America Web site and posts “hey I got something for you.”

Not saying he does this for everything but I’m sure he doesn’t just let a ton of rare stuff sit in his store and hope for someone to buy it (even tho that’s what he says to justify his prices!)

One time I saw him buy something and he turned around and sold it to the expert. I think it was some art or photography and he was selling it to the frame shop guy. I wouldn’t be surprised if he sold most of his guns to the gun guys and the toys to the toy guy.

Then again there is a lot of weird expensive shit available for sale all along the strip in the casino malls, and my guess it’s proprietors hoping there are people walking around with money to blow on weird shit right now. So the Pawn Stars guys are banking on the idea that Johnny OnRed who has an extra $150 in cash right now would be much more likely to buy a WWI helmet on a whim right now than he might be if he were browsing the shops at home.

17

Gold & Silver Pawn has a heavy on-line presence. Before they buy most “TV episode” items, Rick or Corey have already lined up a buyer. The rest get auctioned off on-line. About the only stuff in the back room is stuff that is legitimately pawned. The exceptions to this rule are the stuff that will bring in the crowds, which they keep on display in the shop. If you watch carefully you can spot stuff from previous seasons on display.

18

That’s pretty much the way the world of brokerage works. The experienced dealer often has buyers waiting and can make a quick deal, but if it doesn’t work, the item may be on the shelf for years. The seller replaces risk with immediate cash; the buyer takes on a new risk and expects to be rewarded handsomely to cover the cost of storage and uncertainty.

It works that way in my field, real estate, too. I might take on a listing knowing full well that neighbor across the street is itching to buy it. But this quick profit is offset by the listings that have been on the market for 5 years, piling up advertising costs and draining my resources.

19

I realize a lot of it is probably staged, but I generally enjoy sort of half-watching Pawn Stars. Yes, you’re going to get lowballed at a pawn shop, but that’s sort of the point, they have to make a profit on the item. There’s not just the overhead of the rent and employees, but also time sitting on an item, which isn’t just display space but also the money locked into the item that can’t be invested elsewhere, and the risk that goes along with it.

In general, a collector coming into the shop isn’t going to pay full retail because, if he’s a decent collector, he probably has some connections and they want to keep their business, so they sell under retail. They’re generally very lucky if they can get retail value for anything that they sell.

And auctions aren’t as great as they sound. Not only do they take a large chunk for an auction fee, I believe 25-30% is typical, but there’s always the risk that it doesn’t sell for what they estimate it will sell for. And, of course, there’s the matter of waiting to post it in the right auction, because certain items will only get the right buyers at certain auctions which may be weeks away and they need the money now. So it’s not a surprise that they will often start an offer at around 40% of the auction value expecting a counter-offer and some haggling to get to between 50-60% of that value, maybe higher if they feel like it’s safe or they have a buyer in line. Considering the seller would be expecting around 70% and has no risk involved and gets the cash now, that’s really not as bad of a deal as it sounds like with the initial offer.

Even in cases where they have a buyer lined up, they still have to take a cut to make a profit, and they’re still offering a valuable service to the seller in finding someone who is willing to buy the item. The seller is getting the advantage of all of the connections and research that the pawn shop puts in to valuing the item and finding a buyer. And, generally, you will see that they’re often willing to go a little closer to retail in most cases where they have a buyer lined up.

Either way, the whole point is, as others said, they’re a pawnshop with a broader base than just buying old jewelry and stuff. People know the name and know they’re open 24-hours and know they can get cash in hand right now. If you’re really trying to get top dollar for the item, you’ll find a more specialized dealer, a specialized auction, or find the right collector yourself.

20

There is no way the scene with Chumlee swinging around the batleth in the warehouse was not scripted. That was ridiculous.