Pawn shops can be an interesting experience if you have never had to use one before and don’t know what it is that they do. Of course, there’s always what you see on TV, but is that really a representation of what pawn shops actually do?
Some people think that resale shops are pawn shops but the truth of the matter is that they aren’t the same thing – not at all.
A resale shop isn’t a pawn shop. A resale shop just does buying and selling and that’s it. Nothing else.
That having been said, a pawn shop can actually be a resale shop.
Does that seem a little confusing? If so don’t feel alone, a lot of folks don’t see how they are related.
To be clear on the differences, you have to understand the difference between a ‘pawn’ and a ‘sale.’
It’s really simple… Ready? Here we go…
A Pawn Is A Loan
When you go to a pawn shop, you can get a loan against your merchandise and then you can come back to get it later without worrying about anyone else buying it.
Think of a pawn shop like your buddy who is going to give you $20 to hold onto your necklace. When you come back with the money, we will give you back your necklace. Pawn shops just hold onto your stuff so you get get some money to pay bills or whatever you have that came up.
Of course, you normally do have to pay back a little more than what you borrowed but it’s usually not much more.
When You Sell Something, You Can’t Get It Back
When you sell something (such as at a resale shop) you can’t get the item back. You are permanently giving them your item for a little cash that you don’t have to pay back, ever.
But your item is gone. You sold it. You can’t get it back.
If you need to get your item back, make a ‘pawn loan’ on it.
Where Most People Get Confused Between The Two
You can only make a loan against you item and get it back at a pawn shop. A resale shop doesn’t make loans and you can’t get your items back.
However, you can also sell your items at a pawn shop. What that means is that pawn shop BOTH loan against items AND buy them outright.
Ultimately that means a pawn shop offers you more options and a greater variety of services than a resale shop.
So if you have the choice, and you will like to get your item back at some point in time – go to a pawn shop.
Both Sell Merchandise
Of course to make things a bit more confusing – both resale shops and pawn shops sell merchandise to customers.
In fact, if you walked into a pawn shop – you might not be able to tell any difference from some resale shops. They look that similar!
Both buy and sell merchandise – but only a pawn shop will let you make a loan against something so that you could get it back later.
See, I told you it was simple 🙂
The Nerd’s Experience
A lot of people get confused at first – but if you go to a pawn shop you can either get your stuff back or leave it there. However, you can only get it back if you make a loan on it and don’t sell it.
That’s the real benefit to pawn shops in the communities they serve.
They let the people give up something in a time of need, but give them the ability to get it back and enjoy it again at a later point in time.
It’s a unique service offered exclusively by pawn shops.
WordPress junkie, music lover, and consumer of all things pizza-oriented. I’ve run pawn shops and check cashing operations for years. I developed the most successful digital marketing marketing strategy for pawn shops known to date, and flip items on eBay for fun.