How to Start a PawnShop Business | $4543 Per Month
So how do you start a pawnshop business, it's kind of like GameStop how when you go and try to trade in your games it's literally worth 1$ but you bought last week for $60. Well pawn shops use the same concepts but they buy a lot more which means a lot more profit
And that’s why in this video im going to break down, how to start a pawn shop, the start cost, expenses and on top of that also the profits you can expect.
How to Start a Pawn Shop Business
Start-up Cost: I have a free video on doing LLC
License: if you plan on doing this Legally, you need a license
Beg: It’s called a pawnbroker license and it cost different depending on your state
Climax: However in new York, you’ll need a $75 procession fee, and 10k surety bond. But… you really only need 1-15% of that if you to a surety bond agency.
Ending: You might want to do it off the books, I don’t recommend it. You’ll have no legal leverage, and you could get fined or go to jail.
Location: this can vary: New York Rent 3k-4k per month
Story:
Beg: This is going to sound messed up
Climax: but if you noticed a lot of pawn jobs are set up in low-income neighborhoods because those people are more likely to pawn and lose their goods.
Ending: How do I know, because I live a low-income neighborhood, and they have 3 within a 3-mile radios
Money: This is your start-up capital to do deals
Story:
Beg: You might think the more money the better, but not always.
Climax: too much money and you’ll invest in items that have a difficult sale.
Ending: So start small with 1-10k and build up the business and reinvest the profits.
Tip: if you get a massive opportunity then ask for help.
Education on Niche: If you don’t have this you will get scammed
Story:
Beg: You can’t be an expert at everything, let's be honest.
Climax: So educated yourself on certain items and then hire or outsource other items
Ending: Example, people will bring cars, electronics, collector items and so.
Tip: Just eBay and see how it sells for
Expenses:
Security: You don’t need a bodybuilder but you do need some cameras
Cost: Cameras 160 bucks
Bulletproof Glass: $1000 - $5,000 bucks ( however depending on your open and close and your location you might not need them)
Insurance: $50 plus per month
Robbery or damage: keeps you covered:
Story:
Beg: I have seen people fight
Climax: and lose more than items if you know what I mean
Ending: so if you have insurance, you don’t need to fight.
Computer system: 50-60% per month
Story:
Beg: In the beg, you can use a book and excel
Climax: as you keep growing you can upgrade and make things easier
Ending: efficiency is key
Initial Inventory ( go shopping and get some products to catch the eye, to business rolling )
Profits ( the money you make)
Two ways:
By offering collateral Loans:
Story:
Beg: When someone gives you an iPhone and has to pay you back in one month
Climax: The industry standard is 10 - 240% depending on if your state regulates rates
Ending: So even at 10% a month, in one year that’s 120% ( almost 4 times what a credit charges)
- Plus you can keep the item if they fail midway
The second way is by selling items they got
Beg: The same guy with the 1000 iPhone, is only going to get maybe 500 or 400 bucks
Climax: If he stops paying you can keep the item, and resell in your store or eBay.
Ending: Mark up is usually between 15-45% ( and sometimes a lot more)
Pawnshops are missing: modernization
Example: imagine a website, that you can send your stuff to, free shipping of course and they’ll verify your product. Send you the money, and give you 1-12 months to pay it off. ( if you don’t, then they keep it )
- Of course, you'll have experts to verify everything.
Oh and please be careful
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Imagine making 10-240% every time you do a loan...that's insane ***How to start an LLC for Free Video*** Link: kzread.info/dash/bejne/g6h-m6aQqrS6m6w.html
Sir, in order to start a pawnshop you also must first purchase a software program which communicates all of your days purchases and pawns to the local police dept.
FYI - the pawn shop doesn't want your stuff. They make much more money when you come and get it back than they do selling it.
Thanks for sharing once again. You always give great advice that make sense.💪🏾🔥🔥
@TommyBryson
4 жыл бұрын
Thanks brother 😎
shiiiit the algorithm made me the best gift for 2020, Tommybryson's channel😍😍
@TommyBryson
4 жыл бұрын
Ayeeee 😎
Love these videos! Starting a music festival business would be a cool one to make.
@TommyBryson
4 жыл бұрын
Ayee good idea, I’ll check it out 😎
Me and my family are having a legal pawn shop in Europe for almost 15 years now, and i can tell you this year for our business is the worst :X... We were never been soo bad.. Unfortunately, this Coronavirus Pandemic get to us too, and we also have a lot of friends who also have this business and they say the same... Soo i'm very sorry to tell you this guys, but my advice if you're thinking to start such business, right now i don't think it's the time :) Usually you can make a lot of profit yes, but now with all of this Fast Credit Companies who grow like mushrooms everywhere in the poor regions and gives money just like that to a strangers for no reason killed us.. :D Well I don't know what is like in your country i'm not saying that is going to be the same with you i'm just telling my opinion, but it's not bad to have this in mind :) Whatever, great video anyway i appreciate it! And i wish all of you success! =]
@axa897
2 жыл бұрын
Most new pawn shops or shops are opened by dreamers . And loose money all best spots are very expensive and cheap spots don t have enough people . My friends open shop they never made any money lost a lot closed opened other shop and only now brake even not to mention was working for free for a year ...
Im opening a pawnshop in the next few weeks your info is appreciated, good video!
@donnabeeFL
4 жыл бұрын
Did you start the company
@gt_exotics0127
3 жыл бұрын
Is your business booming??
@axa897
2 жыл бұрын
Probably already bancrupt ? 🤷😂
Here again always showing support ya know how it is
@TommyBryson
4 жыл бұрын
Ayeee thanks brother 😎
Coming from a 15 year pawn broker that has managed several big chain pawn shops.. there’s alooot more needed to open and operate a pawn shop.. it was a good attempt though
@NBid-rp9ch
2 жыл бұрын
What's needed?
You took that idea right out my head lol
15:17 damn you got for a sec bro 😅😆
Great video!
@TommyBryson
4 жыл бұрын
Ayeeee thanks bro NOTI squad 😎
Here in the UK how you know you are in a low income neighbourhood is by the number of gambling shops in the area lol, some roads, yeah roads have 3 of them, its crazy
@TommyBryson
4 жыл бұрын
Lol same here
@roycropper698
4 жыл бұрын
And a Brighthouse as well.
Hi, first time sub and totally clueless abt the pawn biz however I am looking into it seriously. One of my biggest concern is with jewellery how did you approach this aspect, I am not a jeweler no experience with it but obviously it is/maybe the main turnover in my situation. Would appreciate any advice you can share🙏
@axa897
2 жыл бұрын
Jewelry is very profitable for pros and risky you need to test each item if you not expert start without otherwise you gone loose shits loads of money on fake jewelry .
One of the best videos 🤙🏽
@TommyBryson
4 жыл бұрын
Ayeee thanks brother
Here from New Mexico where we can have 299% interest loans for car titles
I'm at a point where I have to sell my business, my house, to be close to help my parents. I have tons of shit, new in the box, that I won't need again Seems a good idea to spend a few hours a day to sell off things and make a profit
Gold and silver it's the only thing that you can have that well never lose profet
Gold , cars & iPhones a lot of people look for gold at pawn shops & cars are easy for me to sell , people buy iPhone 7s for 100+
@TommyBryson
4 жыл бұрын
Exactly 😎
Want to start an online magazine. Please advise. You do one on one consultation?
@TommyBryson
4 жыл бұрын
Online magazine business, I’ll do some research and get to work. And just dm
@blaccrush5252
4 жыл бұрын
@@TommyBryson thanks bro
Great business venture, ima add this to my list thanks so much for all your advice/recommendations. Could you one day do a video on starting your own clothing brand business?
@TommyBryson
4 жыл бұрын
I’ll get to work 😎
@OhimStarSeed
4 жыл бұрын
TommyBryson awesome ima definitely eager to see your recommendations to this side of business. Keep up the great work bro stay blessed ✌🏾
Opening my pawn shop now in the UK, we don't need a license here so im good to go
@TommyBryson
2 жыл бұрын
Let’s gooooooo
If I owned a pawn shop I would focus on money...
You should make a video about how to do private lending
@TommyBryson
4 жыл бұрын
Got one Link: How to Start a Money Lending Business Legally | Profit $1459 a Month kzread.info/dash/bejne/hZtso9d9odawnpM.html
Guns and tools and music instruments
You need more money. Like 50,000 and more
Tommy I Watch you videos Daily.I'm Always open to learn something new:),Specially when i can put my money to work.Can you do a video What is the best way to Invest 20K,for maximum Profit .Thanks and God Bless
@TommyBryson
4 жыл бұрын
Thanks for the idea, I’ll get to work 😎
I have the store, I have the license, I have the proper zoning. But my store is empty, how do I fill it up and keep it full of electronics? I am well educated on electronics and phones
@jordanreyes8738
4 жыл бұрын
Yoooooooo
@michigancleaningcrew4508
3 жыл бұрын
online marketing advertise offer to buy phones itll help
I thought most of a pawnshops money was made off interest on the loan.
In Idaho you don’t have to haves pawn license.
@TommyBryson
2 жыл бұрын
A lot of shops ?
Cars and guns
4500 a month lol. I wouldn’t even made the video for that.
Guns
Man I’m sorry to say but you have no idea what you’re saying here. There’s so much more into this and the profit really isn’t that much. I’ve been in this business for 17 years.
I think it would be better to just buy a pawnshop that is already in business, instead of starting from scratch.
@TommyBryson
4 жыл бұрын
That’s an option also, however it could be expensive and then you’ll think, well if the business is doing so well, why are they selling it
@yetiking6862
4 жыл бұрын
@@TommyBryson And imagine to buy all that'' inventory ''from the pawn ,on top of the Cost of the property ,I Dont know.In my opinion if I would start this business,I would start on My Own,from scratch Or Maybe partner up whit someone I can trust to cut the expenses .
@yaneirisbrooks5061
4 жыл бұрын
Depends on the merch
This dude spelt licence..... I’m out
Scam !!!
@TommyBryson
4 жыл бұрын
Lol who ?
@millionmoes4290
4 жыл бұрын
Hush
This guy has no idea what he's talking about.
@Just-charming518
3 жыл бұрын
100% agree. No clue at all. I hate how he say his name non stop and says if you ask me. What about gold and silver pawn is that in a low income area lol
@insomthegreat
2 жыл бұрын
@@Just-charming518 YES They pay 60 to 60% of spot.
@ReinOnlyFans
Жыл бұрын
I’ve been in this business for 17 years. I’m about to take over my family’s pawn shop. And yes, this dude has no clue what he’s saying. He’s an accountant, he runs numbers, he knows jack about the ins and outs. Like the fact you have to buy a software program that keeps track of your daily pawns so that you can send it to the police so they can do theft checks and if you don’t put a good enough description on an item pawned, they’ll fine your ass for it. If you pawn something from someone who’s on the “no pawn list” (someone with a theft charge that has to be put in your system) you personally get fined for it there’s so much into this. It’s complex and you don’t make that much money.
@myles3605
Жыл бұрын
@@ReinOnlyFans you CAN make tons of money.....family in business for 40 years , just sayin
@ReinOnlyFans
Жыл бұрын
@@myles3605 that’s the keyword. Can. But some don’t
I can tell you are making stuff up, you don’t own no pawn shop!! Bye!!! Get in to the life of business for real!!
THIS SHIT IS GETTING OUT OF HAND! You speaking on businesses you haven't done yourself. That's like me tryna tell you how to open up a carwash business & don't own a car wash 🤦🏽♂️
THIS SHIT IS GETTING OUT OF HAND! You speaking on businesses you haven't done yourself. That's like me tryna tell you how to open up a carwash business & don't own a car wash 🤦🏽♂️