The “golden age” of pawn shops
March 25, 2010 | Virginia, alternatives, industry | Comments (0)From the story:
Shops such as Vinton Pawn straddle the line between banking and retail — two business models that have been less than stagnant in the past year. Stagnant or not, almost 1,000 pawn shops opened in the past few years in the U.S. and at least two new storefronts have lit up in the Roanoke Valley: 220 Pawn & Gun Inc. in Roanoke County and Bargain Pawn in Salem.
The shops loan money at usually $100 or less, plus 5 percent to 10 percent interest and keep collateral, such as DVD players or hunting bows, in storage. If a customer defaults on the loan after 30 days, the item in pawn becomes merchandise.
A deflated economy has increased the stores’ revenues from loans and gold sales while slowing retail sales.
Johnny Hill, a 16-year industry veteran who works at Vinton Pawn Shop, says it’s the “golden age” and the “heyday” of pawn shops.
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