How difficult would it be to start a pawn shop?

[Duer 157099]

With all the attention that Pawn Stars is getting these days, plus with the economy the way it is, it seems like now would be a good time to open a pawn shop. I would LOVE to do that but I wouldn't have the first clue as to how. There are zero pawn shops in my town (!!!) but I just KNOW it would succeed.

So even if I don't do it, whoever does will have a great business, I just know it.

I think the Harrison's should franchise their business or something... some sort of turn-key approach.

[Vinca]

1. I think the biggest stumbling block would be getting enough financing

so you could actually lend or buy on things in addition to the usual costs of setting up a business. I think it would be a great business to be in right now.

[grasswire]

2. must be state licensed

...and I think there's a lot of skill and experience needed if you are going to buy items. Local law enforcement watches pawn shops pretty closely to make sure stolen goods aren't passing through -- how would you determine if the seller was legit?

[Whoa_Nelly]

4. The legit or not part...

Pawn shops are required to have a certain waiting period on items they buy before selling them, and this time frame can be different for different items, especially guns. Whenever there is a weapons crime or stolen property report, pawn shops receive notice so they can check their inventory. Also, pawn shops have to keep a very detailed record of items bought, sold or reclaimed, with identification of the buyer or seller. It's not a business I would want to get into...TV just makes it all look like just so much fun and simply business with play.

[safeinOhio]

3. Legal crooks

been around them for many years and they are nothing like the tv show when there are no cameras around. With graigslist and Ebay type sites there is never any reason to take bottom dollar.
I've watched them give $50 for a rifle and them put a $400 price tag on it. I have bought a few items from them. Always offer them half of what they are asking. Even at that they are making money.

[sufrommich]

5. I always wonder why people who are specifically told what

their item is worth are willing too take so much less on Pawn Stars. Some of the things I've seen would have been worth sending off to an auction house.

[pipoman]

6. Usually desperation...

also, most people have no way of knowing who to consign their item to or how to do it, getting full, live auction retail is difficult. I have seen pawnstars pay ebay retail for a few items...All that said, if I were the pawn guys, I would have a house full and then some. For the prices they are paying, what great long term investments..