Your pawn shop enables customers to obtain a loan using the items they bring to you as collateral. The amount of the loan they receive depends on the value of the merchandise. Once believed to operate in defiance of the law, today’s pawn shops are highly regulated and reputable. Nevertheless, your store might still seem shady or suspicious if your day-to-day operations are not smooth and professional. 

Obtain the right payment processing infrastructure.

Having the right payment processing services in place is the single most effective step you can take to show your customers that your pawn business is credible. After all, this is the company that will work with you to ensure that your clients’ money is transferred efficiently and securely.

You will need to apply for a high-risk merchant account in order to transact customer payments. This is because the pawn industry is subject to numerous regulations and has more chargebacks and instances of fraud than do average businesses. As a result, the companies that work with pawn shop owners believe themselves to be at higher risk for default, crime, and legal scrutiny.

Consequently, you can expect that it will take longer for you to apply for a merchant account. You may need to produce additional documentation, and you will most likely pay higher ongoing per-transaction and monthly fees. This is just the cost of doing business in the pawn sector.

Enhancing your day-to-day operations.

Now that you have laid the groundwork of your store with a reputable, industry-based merchant account, it’s time to polish your routines and practices. Here are just a few helpful hints that successful brokers do every day.

• Let customers see that your electronic merchandise works. Keep TVs on and at low volume so that buyers can see the quality of the picture.
• Foster successful, motivated employees. Promote a workplace that rewards top-tier sales, excellent customer service, and large loans. Publicize workers’ accomplishments, give bonuses and offer training for those who are lagging.
• Take advantage of community resources for mutual benefit. Periodically, offer to co-host an event such as a barbecue along with a church or charter school. Feature items for sale as well as affordable food. Offer to give your partner organization all of the proceeds of the event, and advertise it prominently on flyers, social media and at meetings of the partner organization. Raffle off a relatively low-cost item such as a tablet, and furnish those who come with discount coupons that can be used at future visits to your shop. This strategy will virtually guarantee that you obtain new customers who were once too squeamish to enter a pawn shop.
• As the owner, don’t do all the work. Let your manager do their job, only stepping in when complex concerns arise. This will encourage professional growth on the part of your staff while simultaneously giving you the time to run the behind-the-scenes operations.

For centuries, pawn shops have been providing communities with a valuable and necessary service. By enhancing the security and efficiency of your store via these tips, you can ensure that it remains a pillar of your town or city for the foreseeable future.