Just like any other business, pawn shops are always on the lookout for proven strategies that will help increase profits. When it comes to the unique operations of a pawn shop, there are some useful strategies that every store owner should take a few moments to consider. In order to increase profits, a few adjustments here and there to your business model can make a world of difference.
Want to increase sales in your pawn shop?
Become a Dealer with M&M Merchandisers to keep your store supplied with the items customers want.
As you read through the following approaches to improving the profitability of your pawn shop, keep in mind that these are not necessarily “one size fits all.” Think about the uniqueness of your shop and how you can apply these strategies to specifically fit your way of conducting business.
Social media is all about making connections. Utilizing this type of communication tool is an essential component to the success of the modern pawn shop. Share updates about your shop, keep in touch with regular customers, and of course, find new customers. Most importantly, you can highlight new items and promote deals to get people in the door.
Let’s say a beautiful classic guitar comes through your door. Post it on social media and people will be clamoring for it in no time. As a pawn shop owner, you know what items are bound to get your customers excited. Social media allows you to put these coveted items right there in front of their faces.
Here are a few other benefits to using social media:
It’s understandable that you will have a wide variety of items on hand that people have pawned. However, it is your responsibility to fill the rest of your shop with specific items that appeal to your customer base. The makeup of your customer base will depend on your location and the demographics of your area. If you can connect with these people by offering them appealing wholesale inventory, you will surely see an increase in profits.
Here are some additional tips to help you stock your shop with wholesale inventory:
If you are struggling to figure out what items are trending in terms of popularity, simply ask your customers. You can have an open discussion with them when they are in your store. You can also have them fill out a brief survey to get their feedback on the types of items that they most desire.
Related: How to Buy Wholesale Products [Guide to Resale Business]
When a person steps foot into your store, the experience is just as important as the items on the shelves. While good customer service is essential to any business, it is especially crucial for those in the pawn shop industry. Word of mouth spreads quickly amongst customers, whether it’s good or bad feedback. This is why it’s so important to ensure that your customers come away with only good things to say.
Here are a few simple customer service tips to implement at your shop if you aren’t already doing so:
Increasing profits is about drawing more people into your store. Hosting a special event is a great way to help increase your foot traffic. Before you get too stressed out at the idea of hosting an event at your shop, understand that you will be in control of how you execute this idea. For example, you could simply host a large blow out sale over the weekend by temporarily marking down prices on various items that you are itching to get rid of.
Here are a few other event ideas to consider:
Whether it’s on Facebook, Yelp, or one of the many other social media platforms, you should welcome the idea of reviews. If you feel confident about the way your shop operates, ask your customers to write an online review after they leave. Online reviews serve as a major influence to those who are surfing the web in need of different services or products.
You can promote this idea to your customers through conversation, or you can add something to your printed marketing materials. Either way, find a way to plant the seed so that your customers are more willing to spread the word about your store.
As a business owner, you know just how important it is to roll with the punches when changes come along. The above-mentioned strategies are about tweaking your current business model to drive positive changes in the way your shop operates. Keep in mind, everything that you do in regards to these approaches should strive to achieve the same goal: increase your profits.