Why Is My Offer Low?
The following are some of the most common reasons why you can receive a lower than expected offer for your item at a pawn shop.
Current Market Resale Values of Items
Negotiating item prices is part of how almost every pawn shop operates. It is implied that no matter where you go, a pawn shop will negotiate with you. However, it is important that you know your limit when you are negotiating with the pawnbroker. In a pawn shop, any item (including jewelry) having a 250 % markup is unrealistic. Pawn Shops price their items based on daily fluctuating market trends. Often a pawn broker will use daily eBay sales or other marketplace data when determining the resale value of your item. Hence, it is in your best interests to fully comprehend your items’ value and begin the negotiation from that point. The more you understand why the pawn broker is making a certain offer – the better equipped you’ll be in the negotiation process.
Length of Time It Will Take To Sell An Item
Most pawn brokers have lengthy experience in knowing how long it will take for something to sell. The reason for this is they have done it so many times across many different types of items. To accommodate for this, the pawn broker adds in a calculated buffer for how long they have to keep an item on their shelves. If an item generally sells faster, then the broker knows they will get their money back quicker. If an item tends to sit for a while, the offer could be lower because of the loss of spending power that item represents in their overall business.
Not Comprehending How Gold and Precious Metal Buying Works
Gold items happen to be one of the most common and popular things that people pawn and sell at a pawn shop. That said, not everyone is aware of the current gold prices in the market. Dissimilar to other kinds of valuable items, gold has a fixed rate (relatively) in the worldwide market. Pawn shops often measure its value by multiplying its weight with its existing value. If you are selling a gold item like a necklace or a bracelet, there are two important factors to keep in mind:
- Gold jewelry that is not branded usually gets offers relative to the melt value of the piece in question. Non branded jewelry is difficult to sell because the intrinsic value of the item is only relative to the person in question selling it. To the rest of the world, it is gold scrap.
- Gold jewelry that is branded gets offers relative to the market resale value of the piece in question. Brands such as Cartier, Tiffany, Van Cleef, and the like all have varying resale values that the pawn broker will use to determine the resale value. When going to a pawn shop to sell these, or to get a loan on them, its important to note that each pawn broker has a different set of guidelines they follow in order to calculate resale value.
Considering The Fees Involved In Selling An Item
In the online ecommerce marketplaces – there are several fees that pawn brokers must take on before they can calculate their profits on any item. Different categories of goods carry with them varying types and amounts of fees.
When you’re selling to a pawn broker, they are considering the estimated cost to them for listing the item for resale – so this impacts the possible amount of money they can offer you.
Cost of Shipping
Some pawn shops deal exclusively in online ecommerce efforts. These companies need to also account for the cost of shipping items. In order to have the highest standards ratings on ecommerce platforms, vendors are required to provide free and/or discount shipping. So, when you receive an offer from the pawn broker, this also plays a factor into the process. If you recall, your offer number is an outright purchase – which means there is no additional fee added to the item.
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FKTRADE CO is an independent luxury dealer and is not sponsored by, associated with and/or affiliated with any of the brands listed on this website. FKTRADE CO only sells pre-owned watches and luxury and provides its own warranties on the items it sells that are not covered under a factory warranty. All brands are registered trademarks of their respective owners.