

"Pawn Stars" Teaches How *Not* To Negotiate - AgentConundrum
http://infochachkie.com/pawn-stars/

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kls
Many people that look to pawn items look at the item as opposed to the
economics, where the pawnbroker is looking at the economics, they have no
attachment to the item nor value. Even if the person presents a good deal to
them, one has to realize that there will be another person that comes along
that will settle for a 30-50% discount on the actually value of the item. Sure
it is a different item and not "the" item that that person is selling, but the
pawnbroker does not care, the item could be total junk so long as they can
make their massive margin. Once you realize this and that the pawnbroker has
limited capital and store space you then start to see the picture that there
is no way you are going to get a fair price minus a decent margin. Because the
next better deal is literally waiting behind you.

You are actually in a better position to reduce their margin when you are on
the other end of the transaction. When you are standing with cash in hand,
trying to chip away at an item that they have for sale. In this situation you
hold all the cards so long as you do not reduce their margins past their
absolute minimum. In which case, if it is a niche items that will not sell to
just anyone, it is better to negotiate, walk away, let the item age on their
self and then come back and negotiate again. Time is the best negotiation
tactic, when dealing with shelf inventory, the pawnbroker will try to compress
your time, your goal should be to expand it because expansion of time means
that the pawnbroker eats up margin that he cannot recoup. An item has a fixed
price and time eats at the margin built into that price.

Unfortunately Ebay has become kind of an insurance safety net for pawnbrokers
and reduced the ability to negotiate for a portion of the deep discounts that
they receive, but it cuts both ways too, it has also provided a medium to
avoid the pawnbroker entirely. I cannot fathom for the life of me, why someone
would pawn, with the exception of hot goods and emergencies in which a person
needs cash right now.

