Most pawnshops try to maintain a 38-50 percent profit margin. So, they’ll assess your item’s market value, then reduce it by their profit margin. Keep in mind that sentimental value and the original purchase price mean little in relation to current market value. Pawn shops refer to blue book market value or certain databases for the items they buy. They may also do some internet research to understand retail and wholesale prices. But at the end of the day, pawn shops consider a price that will justify a profitable resale value.
Market Value and Resale Potential
Where do pawnbrokers find market value? The resale value will be a huge factor when a pawn shop is determining the value of what you are selling. The ability to resell will encompass everything from how long an item will take to sell and for how much. Inventory is a huge component of running a pawn shop. And so, the longer an item takes to sell, the less space they have for other things that could be displayed, which is bad for business.
Evaluations are a considerable part of purchases that include fine jewelry or precious metals but can also apply to other items. Pawn shops will factor in market and resale value to come up with a loan amount they feel comfortable giving out. You may also hear about appraisals.
Selling Versus Pawning
If you choose to sell your item, you will probably get a higher offer from a pawn shop. Pawn shops are open to negotiating your final offer, but be aware that most offers will not go above 60% of the value of your item. The primary factors that influence pawn shop valuations include: Category and market research.
Calculating Your Item’s Pawn Value
To get a more accurate pawn value estimate enter a full description or the make and model of your item. The make and model of your pawn item can usually be found next to the serial number on the information label.
Pawn Shop Tools and Calculations
PawnGuru works with local pawn shops who compete for your item.
There are a few important factors to keep in mind, in terms of determining an item’s value:
- Market Research and Online Resources. Pawnshop representatives use research tools that they have at their disposal to determine an item’s value and get you the most money.
You too can get an idea of how much pawn shops pay you if you’re planning on selling or pawning with a pawn shop using the Pawn Offer Calculator. It estimates a loan amount range for your items. Search electronics, handbags, cell phones, tools – and almost anything of value!
Pawn shops will pay anywhere from 25% and up of its determined value or worth. At a pawn shop, you typically get 25% to 60% of the item’s resale value. The average amount of a pawn shop loan is about $75–$100. Selling an item instead of pawning it may get you more money depending on the item.
In my experience, pawn shops pay approximately 7-35% of the original retail price. If you bought a power drill for $300, a pawn shop would typically offer between $21-$105. Reasons for low offers: they need to resell at a profit and account for the chance that the item doesn’t sell.
How do pawn shops calculate gold value? Pawn shops pay 25% to 90% of 24K gold’s actual value per ounce. So, you get $535 to $803 per ounce, or half what you get in real value. Weight of gold in grams and purity in karats determine value.
Silver Valuation
Here’s how to calculate approximately how much pawn shops will pay for your silver: Multiply the weight by the percentage of silver. Let’s say your silver weighs 21.4 grams and that it is .925 (sterling silver).