Why Specialty Pawn Shops Should Consider Diversifying

There seems to be no limit to the kinds of specialty pawn shops currently doing business.  Today, specialty pawn shops not only focus on buying and selling things like jewelry, guns, electronics, and musical equipment, but big-ticket or somewhat unusual items, such as motor vehicles, fine art, and specific types of antiques and collectibles.

Specialty pawn shops can provide highly valued services.  Pawn shops that specialize in musical instruments and sound equipment are considered a necessity in musical cities like Austin, TX.  In cities ripe with art lovers and artists like so many cities in New Mexico, for example, pawn shops that deal in fine art are fantastic resources.  Pawn shops near large bodies of water that deal in recreational water vehicles like boats and jet skis can also be a huge help to their communities.

Unfortunately, though specialty pawn shops may be highly valued by their customers, major pawn shop buyers typically don’t put a lot of value on them.  As a result, owners of specialty shops can find it very difficult to find buyers when they decide it’s time to move on and exit the business.  Often, owners of specialty shops simply have to sell off or liquidate their inventories instead of selling their businesses as whole units.  The majority of specialty pawn shops just don’t fit in with the national pawn companies’ business models, and therefore, are too much trouble for the national pawn companies to take on and turn into typical chain stores.

If you’re planning on selling your specialty shop or shops within the next few years, consider diversifying by seeking out and accepting a wider variety of items.  If you begin diversifying at least one or two years prior to selling your shop, you will have a much greater chance of selling to a national pawn company that will give you the kind of closing price that will enable you to retire well or turn around and begin your next business venture.

Whether you’re a specialty pawn shop owner or the owner of a more traditional pawn business, contact Stallcup Group for information on what you can do now to make the process of selling your business easier in the future.  Stallcup Group can not only help you determine what you might be able to expect out of the sale of your business, but help you meet your future goals by assisting you throughout every step of the negotiation and closing processes.