One of the successful pawnshops that I recently opened for a client in Detroit was purchased for a major television show.
I am very proud of the fact that what I set up was good enough for Les Gold and his great show!
Thank you for your interest on my web-site regarding opening up a pawnshop.
In addition to my book, How to Open a Successful Pawnshop, I do major consulting for pawnshops located all over the U.S.A.
I can say from my personal experience that part of my success is because I place a high value on personal integrity on myself in an ethical and respectable manner.
Added to my diligence in paying close attention to detail, as a consultant to your company I would bring focus on making your new business (pawnshop) one of the largest, and most profitable ventures. Furthermore I am a hard, smart-working, self-starter who works equally well in a team environment or individually.
Starting a successful pawn shop operation takes careful planning. When I first opened my pawnshop I made thousands of dollars in mistakes, it is my goal to prevent you from making similar costly mistakes.
Please understand that what I will teach you is not standard text-book. What I teach you are proven systems that have worked in my pawnshop for over 30 years—the information below is what you need to plan, start, operate and manage a profitable pawn shop operation.
CHARACTER AND EXTENT OF SERVICES
It is the mutual intent of the parties that the consultant shall act strictly in a professional consulting capacity as an independent contractor for all purposes and in all situations and shall not be considered an employee of the company.
The consultant reserves full control of his activities as to the manner and selection of methods with respect to rendering his professional consulting services to the company.
The consultant agrees to perform his activities in accordance with the highest and best state of the art of the profession. Services as an independent contractor, the consultant agrees to perform, during the term of this agreement, the following services. Advice on acquiring pawn license and permits. Advice on design of the store which will include the following:
- Alarm & security system
- Vaults & safes
- Computer system
- Pawn software & training
- Order appropriate printers for pawn software
- Design 6 different forms for pawn software
- Police forms
- D.V.R system for security
- Double door system for entry
- Joining pawn brokers associations
- Insurance companies
- Appraisal forms
- Educating on precious metals refining (gold, silver, platinum)
- Teaching of gold purity’s ( 8kt to 24kt )
- Teaching weights and measurements
- Teaching the concept of pawning
- Teaching how to pawn diamonds, and educating on the 4c’s: ( cut, color, clarity, carat )
- Teaching how to pawn semi-precious colored gemstones, educating on colored gemstones
- Teaching how to pawn watches (all types)
- Teaching how to pawn furs (optional)
- Teaching how to pawn cars (optional)
- Advice on acquiring all tools needed for jewelry repair
COMPENSATION
$50,000 for the training program.
PAYMENT FEE SCHEDULE AS FOLLOWS
$25,000.00 upon signing contract and $25,000.00 2 weeks after initial deposit.
For those who do not need the full training program, I am available at an hourly rate of $250 and above per hour.
Thank you for your interest in my consulting business, and remember one thing—any person can open up a pawnshop, but not too many can run a successful pawnshop (the words of many who have failed).
WHO WE SERVE AS PAWNBROKERS
Pawn customers have regular jobs, from working in hospitals to home construction.
They support our country and its economy by working in government, teaching our children and caring for the elderly. Just like you, pawn customers have dreams; want better lives for their children and a stronger sense of security. However, they also have pressing bills and unforeseen financial issues.
According to GAO analysis of Sept 2002, and unfortunately that’s the most current we have as many as 55 million people (28% of US adults) are unbanked—meaning the don’t have a bank account.
The Consumer Federation of America found that more 50 percent of Americans are living paycheck-to paycheck.
When it comes to financial alternatives, pawnshop customers do not have many safe, convenient, or regulated choices.
A BRIEF HISTORY OF PAWNBROKING
Pawning has long been a source of capital for people in times of need, as well as a means of financing business ventures. Considered mankind’s oldest financial institution, pawn broking can be traced back at least 3,000 years to ancient China, and reference to pawn broking have been found in the earliest written histories of Greek and Roman civilizations.
Pawnbroker's Symbol
The House of the Lombard operated pawnshops throughout Europe in the Middle Ages. The symbol for their operations, three gold balls, still remains a trademark of pawnshops today.
For a time, certain usury laws imposed by the Church prohibited charging interest on loans and limited pawn broking. But because of problems in the banking system and economics necessity, pawn broking made a resurgence.
During the 14th century, the House of the Lombard even counted royalty, such as King Edward III of England, among their clientele. Many of the first leaders in the banking industry had roots in pawn broking.
And today, the statutory regulations of banking and finance are based on the legal foundation established by pawnbrokers.
Pawnbrokers are also known as collateral loan brokers because they make loans based purely on the intrinsic value of the collateral, not on the customer’s credit history.
If the loan, or at least the interest, is not paid off during a specified term (usually three to four months), then the item is forfeited and may be resold by the pawnbroker.
A typical transaction begins with a potential borrower bringing an item he/she wishes to pledge into a pawnshop. The pawnbroker then determines how much to loan the patron for the item.
Loans are paid out at a rate of about one-third to one-half of the price the broker can expect to receive for the sale of a good during the worst times to assure that a profit will be made.
Please call or email me if you need any additional information regarding the foregoing.
Sincerely,
Norman Gornbein Jewelry Consultant
5752 Oberlin Drive # 106
San Diego CA 92121
Phone # 619-540-7189, or 1-800-361-6641 (toll free)
