Pawn shops offer a degree of price flexibility that is rare in retail. Whether you are selling an item, pawning it for a loan, or buying something off the shelf, there is almost always room to negotiate — if you know how.
Tips for selling or pawning
Pawnbrokers want to make a profit, and their first offer will reflect that. A few principles will help you hold your ground:
Know what your item is worth before you walk in. For jewelry, look up the current spot price of gold or silver and, ideally, get the piece appraised by a jeweler first. For electronics, check eBay's completed listings for the same model in similar condition. Going in with a real number protects you from a lowball offer.
Let them make the first offer. Do not volunteer what you paid for the item or what you think it is worth. Once you name a number, you give away leverage. Let the broker speak first, then negotiate up from there.
Don't anchor to what you paid. What you paid for something years ago is not the same as what a pawn shop can sell it for today. Brokers know current resale values; come prepared with the same information.
Get offers from more than one shop. The single most effective negotiating tool is a competing offer. If a shop down the street offered you $150 for the same item, say so. Most brokers will at least try to match it.
Tips for buying
Pawn shops are also good places to find tools, instruments, sporting equipment, and electronics at prices well below retail — if you know how to protect yourself.
Know the item before you inspect it. If you want to buy a guitar, learn enough to identify a well-built one before you walk in. If you're buying a power tool, know which brands hold up. Showing competence tends to move the negotiation in your favor.
Don't accept the first price. No pawnbroker expects you to. Ask "is that the best you can do?" and stay quiet. Silence works.
Examine everything carefully before you pay. Most pawn shops carry quality merchandise, but the inventory is used. Test electronics, play the strings, power on the laptop. Reputable shops will accommodate this.
The most verifiable items to buy tend to be tools, bikes, DVDs, and video games — categories where function is easy to assess on the spot. For jewelry, watches, or high-end electronics, bring some expertise or ask the shop for documentation.