JEWELRY TRAINING

Need more jewelry? Pay customers more!

Many Pawnbrokers have been asking how they can get more jewelry in their showcases.

While buying new jewelry, refurbished jewelry, repairing broken jewelry, and stock balancing are all excellent options, the lowest cost and easiest option is often overlooked. The lowest cost and best business-building option to get more sellable jewelry is to pay customers more! Don’t let any customer walk when they are selling or pawning sellable jewelry. Sellable jewelry is not valued based on scrap. Sellable jewelry should be valued based on what you can retail it for.

Here’s what I mean: Let’s say you have a customer that wants to sell a beautiful item for $200 and it has a scrap value of $175. Based on experience, you know you have many customers that will pay $300 for that item.

In this case, the customer will not sell for less than $200 or they will walk. Don’t let them walk, pay them $200!

There are many reasons why this is the best strategy for the business:

A happy customer is going to bring you more items;

A happy customer is going to tell their family and friends; and

You will beat your competition and get more sellable jewelry. If this was a loan and you loaned $200:

A happy customer will get more loans and tell family and friends;

More PSC if they renew or redeem;

If item forfeits, you have a highly profitable sellable item. Always begin every transaction with your exit strategy in mind. This means, you must evaluate the jewelry and make sure the item is desirable and sellable as is. Do not use this strategy of paying more than scrap for broken and unattractive items or slow sellers. If the sellable item has diamonds in it - pay for the diamonds! Even the smallest, lowest quality diamonds can be sold for you through our NEW In-house Wholesale Program for 10 cents per point, and we wholesale higher quality small diamonds for you for $1.00 per point! Adding new & refurbished jewelry can be a great strategy to fill in high-demand categories…But there is no less expensive way in the world to buy jewelry inventory than to pay our customers more for their sellable jewelry. Pay customers more and increase your inventory, help more customers, beat your competition, increase retail sales, get more collateral on the street, and build your long-term business!

Greg Weiss

Director of Jewelry Operations