It is considerably more stressful and time-consuming to try to sell an item when you don’t know what it’s really worth. As a pawn shop owner, you know this, having experienced trying to get rid of an item on your shelf that is of indistinct value. What happens? You either wait around and hope that the right customer eventually comes through your door, or keep lowering the sticker price until the item finally moves.
The same sort of thing can happen when you put your pawn shop on the market without knowing what it’s really worth. You can hope that the right buyer will come along and meet your asking price, but over time, chances are you’ll find yourself lowering your price again and again until you eventually close the sale.
In a paper put forth by the US Small Business Administration, business valuation expert John A. Johansen explains, “All too often, sellers arbitrarily decide on a price for their company and then go to the expense and effort of developing prospective buyers, only to be unable to strike a deal. It is only after repeatedly lowering the price that they learn what their business is really worth.” He continues, “A professionally prepared appraisal eliminates this problem.”
If you don’t want to wait and see if you’re going to have to keep lowering the price of your pawn business again and again, contact Stallcup Group. You should never be in the position of waiting for a buyer to bite—and at the wrong low price! Stallcup Group’s exit strategy specialists can proactively seek out the right buyers and ensure that you never have to play the wait-and-see game.
To learn why it is important to obtain your pawn business appraisal, or valuation, from experienced pawn shop exit strategy consultants rather than from business brokers with little or no experience working within the pawn industry, see last week’s blog post.