Is it a fine art, finger in the air or a crystal ball technique that pawn shops use to decide their prices? Well, it’s a lot more detailed than you might think and probably closer to a fine art. So many different factors can impact the value of items that careful consideration and research can be needed to determine the value of items.
When you think about the wide array of items that feature within a pawn shop and how much knowledge must be needed to know about all those items, there can’t be a simple approach. Some items might need a different valuation approach to ensure that the valuation given is both fair and competitive.
So how do pawn shops value items?
Every item that enters the pawn shop will start with a basic appraisal. This will help us to gather the basic information about the item and help us determine what to do next.
In an appraisal we will be examining the item to determine its condition firstly and whether its condition will impact its value, such as damage, wear and tear. We will also look for any markings and labels to help identify the item and what it is made of. If the item has any paperwork to prove its provenance, that will be examined too.
After looking at the item itself we will explore the item’s value by looking at its saleability in the marketplace by doing some research on it if needed and what value similar items are currently selling for. We would consider market forces such as the economic climate and whether this has an adverse or positive effect. We would also look at our stock and historical sales to see if we have sold similar items and how well these have sold.
We may also consult value databases which are sometimes known as ‘blue books’ that assist with valuations of items. Online value databases are a good source as these are frequently updated. We may also enlist the assistance of specialist consultation if the item is unusual or a historical item including antiques as these may require expertise to verify the item's authenticity.
Armed with all this information about the item we are then able to value the item and give a fair price for it.
If you are interested in selling or pawning an item but don’t know what the item is worth visit us in our Hollywood or Margate stores to let us appraise your item and give you a fair and competitive offer for it.