# pawn shop



## flawless1987 (May 3, 2011)

id love to start up my own shop.. a pawn shop would be my ideal shop. always wanted a shop selling parts for cars etc but pawn shop is def what i want now.. anyway for any1 who doesnt know wat a pawn shop does is we would have a man come in with say for example an ipod we would take the ipod and give him a loan of money.. if the ipod is worth 150 we would give him a loan of up to around 100.. we give him around a hundred days or whatever to pay it back or else we get to keep it and if he does come back we still get intrest anyway.. we would also buy and sell things too.. from antiques to phones to watches and rings.

wat im looking to find out is what do you lads think about it? i live in northern ireland which is much the same as marketing in england at the min.. is there a market for it tho??


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## CraigQQ (Jan 20, 2011)

its probably a tough market to start up in.. 
would need a substantial starting fund i would guess..
or you will have to turn away large ticket items.

there is ofcourse a market for it, being hundreds of pawn shops in the uk already.. including the big chains such as cash converters offering this type of service.


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## flawless1987 (May 3, 2011)

ive heard of them but theres only 1 within 100 miles of me i think.. i would love to start up a pawn shop.

what do you mean turn away large ticket items? i will have quite a bit of money starting up.. i had a thread here a while ago with 90k talking about property and still looking into property but at the end of the day i want to invest my money in the best way i can..


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## CraigQQ (Jan 20, 2011)

flawless1987 said:


> ive heard of them but theres only 1 within 100 miles of me i think.. i would love to start up a pawn shop.
> 
> what do you mean turn away large ticket items? i will have quite a bit of money starting up.. i had a thread here a while ago with 90k talking about property and still looking into property but at the end of the day i want to invest my money in the best way i can..


means exactly what it says..

if you cant afford to loan against an item, then it would need to be turned away...


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## pete330 (Apr 18, 2006)

Big in the states

You watch sky?


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## Bero (Mar 9, 2008)

flawless1987 said:


> what do you mean turn away large ticket items? i will have quite a bit of money starting up..


It will need a lot of funding at the start - aside from stocking your shop with items to sell.....on the pawn side if you have one person coming in on week #1 asking for a log book loan on a car and you offer £2,000 and a second person coming in with a Rolex and asking for £5,000 and another £3,000 of miscellaneous items you need £10,000 in your 1st week and have ZERO income except shop items you sell. If you offer 100 days before you keep the item or get your money back you need £140,000 + rent + wages + utilities + rates before you got any return (assuming 14 weeks x £10,000 per week) - even if you are doing MUCH smaller amounts you will be paying out cash for 14weeks (100days) before you get your 1st £1 back! If the business is growing, even on week 15 you will be paying out more than you are taking in.....so your capital requirements will keep increasing despite starting to see a return. To begin with it will be a cash flow nightmare - if you can raise the capital it could work well.

Offering services (high margin) and highly liquid purchases like buying gold and guaranteeing to beat the crap rates offered by the likes of 'cashforgold' etc; installing watch batteries and demagnetizing mechanical watches could help cash flow while you get 'up and running'.


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## 500tie (Oct 15, 2009)

Well said Bero i have to agree with you it would cost a fortune to start a business in this market but may well be be worth it in the long run, just depends how patient you are i suppose


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## chillly (Jun 25, 2009)

Love the program pawn stars. Chum lee is as funny as you like


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## ivor (Sep 24, 2008)

A gypsy friend of mine had the right idea he always kept his money until the near the end of the month when all the other gypsy who had been out and spent theirs on rings,chains etc etc where out of cash they would go to him and he would give a third of what they paid last time I saw him which is about 9yrs ago he had five jewellers roles that where bursting with gold and also had a very nasty dog sort of like a pawn business without the overheads


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