Pawn Shops

Sep 14, 2017 in Business

Pawn shops is a kind of business where a person seeking a loan surrender some goods such as all kinds of jewelry and home electronics goods so that pawnbrokers lend him money in terms of the value calculated of the item being secured. On payment of the loan by the borrower, his property is returned as agreed. In case the borrower fails to pay the loan, he cannot demand his property again and the pawnbrokers have all rights to sell the property without any legal consequences. This type of services offers potential consumers easier way of acquiring short loans without long procedures in the local or international banks. In terms of the maximum or minimum loan one has to borrow, pawn shops do not set the maximum and minimum loans that a customer can borrow unless stipulated in the federal borrowing laws. Pawn shops differ in terms of lending services due to internal set policies by the owners.

Stuff sold in pawn shops

Most pawn shops are limit themselves in terms of stuff they require so that they can lend out some money to specific clients or customer. The nature of good required must be determined in clear and proper evaluation (Collier 2012). These stuffs include selected music instruments, used text books, all types of computers, and jewelries among other precious goods. The reason why many pawnshops prefer the above goods are that their places remain fixed a given period of years.

Comparison between pawn shops and e-bay business

E-bay is becoming more popular in because of its online services across the world. The e-bay business organization has become more popular in buying and selling merchandise in safe and faster way. On the other hand pawn shops have opened branches in many places offering the same services to its clients or customers. Since both two companies provide the same services to customers, a big question we should ask ourselves is that, between pawnshops and e-bay, which one should we buy and sell our proper so that you make profit or you access quick loan with fair interest rates. Let us evaluate each of these two business empires in terms of buying and selling plus other benefits.

Selling

Selling Goods on Pawn Shops

Pawn shops are well known for selling variety of commodities from computer machines to jewelries. When comparing it with e-bay, in terms of the best-selling service, pawn shops emerges the best in buying those goods in any price they wish (Rivlin 2011). Pawn shops can pawn your commodity at low price in case you need faster and quickly cash for use, but in case you want to acquire the same good from them it, you will pay more since pawn owns the items and can sell to its clients at higher price, by comparing the price quotes of different customers.

Example:

Assume you want to sell 20kg of diamond ring at $150; pawnbrokers will only be interested in buying your ring at $80, meaning they will pay you less dollars than you expected. This depends on the demand and supply of such diamond rings in their stores. When the demand is high, they may offer you good price, but when the demand is low, you will be poorly paid because of risk involved. On the other hand when you want to repurchase the same diamond ring after few hours, they will send at a price which is more than $80. You may be surprised to buy the same item at $100.

Selling Goods on E-Bay

E-bay has been known for selling unwanted commodities if the owner thinks no need for such items for future use and they need quickly case cash. E-bay operates in unique way, where by someone has to pay some transaction fee such as PayPal fee, listing fee and shipping fee. For one to get high pay on the item on e-bay, he has to include a photo of the item and the description of the product. This long procedure sometime reduces the amount of dollars the customer is going to seller is going to receive.

Selling Comparison

When comparing both shops (pawn and e-bay shops), pawn shop is the most faster and safe away of selling items.

Pawn shop

Advantages:

  1. No long procedure of selling the item.
  2. Quickly and safe way of selling the product.
  3. Relatively fair selling price.

Disadvantages:

  1. Repossessing the product is very expensive.
  2. Low selling price

E-bay shop

Advantages:

  1. Clear procedure of selling the product
  2. Relative safer way of receiving money

Disadvantages:

  1. Long procedure of selling the product
  2. Low prices

Buying

Pawn shops are relative effective in terms of buying the items. This is because one is given an opportunity to check or inspect the property before buying. Also the owner tests the product whether its working hence one is able to buy quality item. On the other hand, they have policies which allow the buyers to return the commodity is it's not working as expected. This is relative quickly way of buying an item unlike e-bay where one has to bid for a given item and chance of winning the bid is 50 out of 100.

E-bay

Customers who buy items from e-bay have added advantage of saving some cash due to clear buying policy unlike e-bay. In the recent world, e-bay has been effective in selling second hand products. Buyers have the opportunity to ask the customer all questions about the product hence giving the buying green light about the importance of the product and how useful the product is in handling a given task. As compared with Pawn shops, the buyer can calm is money back since all money was paid using PayPal option by disputing the payment (Pugh, 2012). The PayPal team will investigate the issue and if you are found that your claim is correct, you receive your payment after three months. E-bay provides better options of selling products comparing with pawn shops. On the other hand pawn shop is the best in terms of buying items.

Monitor and Control operations between pawn shops and e-bay

Monitoring and controlling operations of the two business organizations is very important in terms making sure all business activities move efficiently. Monitoring for example pawn shops is very important to ensure that all set goals are on track. This will help the management to know which part of business is not doing well in the market and what the possible alternatives to correct the situation are. The other issue is about controlling all affairs of both business bodies. These enable both shops to keep the business organization growing by ensuring that all departments in the organization are smoothly operational. Pawn shops more many years has been effective in terms of monitoring its market share so that to avoid other companies from having added advantage over given opportunity in the market. The same thing applies to e-bay which is the fastest online selling and buying business around the world.

Implement policies and procedures

Implementation of policies and procedure is the key driver for the two business organization. Due to economic change, business must adopt new technology in terms of providing quality services to their customers. Clear structure should be implemented on how buyers and sellers should buy or sell their product without any barriers. On other hand clear procedure should be put in place to ensure that customers are aware how to sell or buy certain product from the given business organization

Compliance

Both pawn and e-bay have been establishing either by national business act of respect countries or international business acts among the bloc countries. They have compliant with the set laws with govern their business. Any violation of such laws will lead to their business empires closed down.

Document Progress

In terms of documentation, e-bay is very effective due to online storage of its documents. Although both businesses have adopted computerized documentation, e-bay has been in the front line of ensuring that all information of its client is well saved for future use in case of any disputes. Proper documentation ensures that customer information is well saved for future reference or in case of misunderstanding between the customer and business representative. In conclusion E-bay provides better options of selling products comparing with pawn shops. On the other hand pawn shop is the best in terms of buying items.

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