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What Does Selling Money in the Pawn Business Mean
Once again, I would like to thank the many of you who responded to our most recent Blog from the 23rd of August. Your kind comments and requests for support are amazing, and WE really APPRECIATE IT!
Today’s Blog is for further Clarification – Selling Money
Seems Opinions these days are surely abundant.
For the record, I do agree we also sell ourselves, our store or stores, our personnel, our products and services both in house and online!
AS far as the loans are concerned, make NO DOUBT about it, as far as OUR Business is concerned everything that happens in a traditional Pawn Shop begins and in theory – ENDS with what happens on our Loan Counters or Loan Departments, or whatever you choose to call it.
Loans = 5 Steps UP and 5 Steps Down
I am going to simplify this explanation and frame it this way so we can all follow along. For those of you who have been in the Pawn Business for a while probably understand this quite well, however, there are many who just don’t get it, so we are going to spell it out so we can ALL follow along.
When we see our Loan Balances increasing, here is what happens in theory if we are following good qualifying or NEHA as we like to call it, and the basic loan standards while attempting to optimize our outstanding loan balances,
- Loan Balances go up
- Pawn Fees increase
- Loan Forfeitures (volume) levels of forfeits typically increase
- More Product for Sale
- More Retail Revenues Follow
- Customer inter-action, Customer Retention is enhanced, and transactional volume increases
AS we can all see, it’s just simple mathematics as we adjust our store performances with typical loan balance inclinations. Again, I qualify that statement with well qualified loans or NEHA, common sense, and aggressive behavior all wrapped up together, make sense?
- Loan Balances Go Down
- Pawn Fees Decrease
- Loan Forfeitures (volume) of forfeits typically decrease
- Less Product for Sale
- Less Retail Revenues Follow
- Customer Inter-action, Customer Retention decreases, and transactional volume decreases
If any Rocket Scientists out there would like for you to believe that by not SELLING the MONEY and increasing your loan balances is not just common sense for your business, then I believe they may have been sniffing too much rocket fuel.
AS stated, YES I believe it is important to SELL All aspects of everything YOU DO in this business as best you can, and be the best as YOU can at all times. That is just common sense when it comes to attempting to be the very best you can BE at ALL times.
Make no doubt about it, if you’re a traditional Pawn Shop Operation, and your Pawn Balances are going DOWN, in MOST ALL Cases, we see revenues and profitability diminish along with them.
It is a KNOWN Fact, that WE are ALL in the Business to MAKE Money!
I also agree if we can have fun doing it – If you have a bright clean atmosphere, with smiling, friendly people working in YOUR store while doing it, WE succeed!
Just a a few more notes and opinions on what drives our business for our beloved Pawn Community!
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