Pawn shops come across plenty of used items and brokers need to consider many elements when it comes to determining the value of an item. A pawn broker’s appraisal takes into account the item’s condition and even the seller’s circumstances. While third-party and in-house experts are often consulted, most pawnbrokers turn to online resources and blue book databases when valuing an item.
There are Gold Buyers in Melbourne who use different methods for different types of stock.
General pawn shops, those don’t really specialize in something, deal with plenty of different items, including:
- Sports Goods
- Consumer electronics
- Specialized tools
- DVDs and video games
- Musical instruments
- Jewelry and watches
Each kind of item has unique considerations and current market values. To arrive at a price, the broker will use his skills and experience to look at the condition of the item, including accessories and packaging. They may even consider ongoing economic trends when pricing merchandise.
Gold and Jewellery
We all know that pawn shops do a lot of business in precious metals and jewelry. So, they’re likely to have expertise and experience when it comes to valuing items. For instance, they have familiarity with clarity and cuts of diamonds, and carat weights. They’ll also consider the metal price of silver and gold, keeping up with day to day changes.
While pawn shops don’t offer set a fixed minimum value on items, they often use a percentage as a baseline when valuing gold.
Before the days of the Internet, pawn shop owners relied on blue books for baseline resale values of just about any type of item. Some big pawn shop chains even developed their own internal guidebooks to help with assessments. Today, pawn brokers can head online and consult related auction sites for ideas on current market values.
Specialties and Experts
While most pawn shop owners have familiarity with the value of many items, some shops specialize in certain merchandise. Gold and jewelry are the most common pawn shop specialization, but there are those shops that specialize in firearms, electronics and even sporting goods. Sometimes, a broker may call in an expert or this-party consultant if they need assistance determining the value of something.
What’s more, the hard numbers of resale potential and market rate considered, small pawn shop owners have a great deal of flexibility to consider a borrower and seller’s circumstances. A pawn broker may place a certain degree of value on repeat business from satisfied sellers and borrowers and even recognize themselves as part of a community.
What’s more, some pawn shop owners may even offer a higher value depending on an item’s personal meaning, although this is not the case for all pawn shop owners. Offering a higher price, though, for a family heirloom compared to an identical item a seller grabbed at a car boot sale.
Overall, pawn shop owners know their trade. They have experience when it comes to properly value different types of items to ensure the best price possible.