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ABOUT US THE PAWN INDUSTRY FREQUENTLY ASKED QUESTIONS  Question: Do pawning customers lose their merchandise? Response: On average, 70 to 80 percent of all loans are repaid. Repeat customers make up most of our business, similar to any other lending or retail establishment. Pawnbrokers know the vast majority of their customers because they often borrow against the same items over and over again. Pawnbrokers offer non-recourse loans, looking only to the items being pledge to recover their investment if the borrower chooses not to repay the loan. Question: Why is the image of pawn broking changing since the 1930s? Response: Today's pawnbroker is upgrading everything from the interior and exterior of his or her shop location, employee presentation, customer service, signage, marketing and the merchandising approach. Pawnbrokers focus on providing exceptional customer service and are very active in the community, both politically, and in local charities. Pawnshops today range from a single or multi-score operation to publicly held company chains. The atmosphere at a pawnshop is nothing like what you saw in Rod Steiner's depiction in the Pawnbroker. Just visit one to see for yourself. Question: Are pawnshops a bad time industry? Response: Pawnshops survive bad times if they make adjustments both at the retail and loan counters, but they do far better in good times. In hard times, customers move away to finds employment, have less ability to repay their loans and the value of all merchandise goes down. Merchandise values go down because the major retail discounters sell for less to maintain or broaden market share. If the sell for less, pawnbrokers must loan less thus earning a smaller return. Regardless of income level, most people periodically borrow money. In good times, customers are more able to repay their loans and unredeemed merchandise sells faster because customers have more discretionary income. Question: Do pawnshops attract indigents and derelicts? Response: Neighborhood property values are impacted by the appearance and care given to the properties. There is no factual basis to support a claim that an eye pleasing pawnshop negatively impacts values. On the contrary, if they attract customers, they enhance the opportunities for other merchants and the community. both at the retail and loan counters, but they do far better in good times. In hard times, customers move away to finds employments, have less ability to repay their loans and the value of all to finds employment, have less ability to repay their loans and then value of all merchandise goes down. Merchandise values go down because the major retailers sell for less to maintain or broaden market share. |
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