Pawnshops, consignment stores and thrift stores are always lumped together as second-hand stores or placed where expensive things that have become useless to their owners are sent to have a second chance. But seriously, these businesses are all different. While it’s true that these businesses buy and sell used items, they serve different purposes in different ways. Let’s look at some of the key elements that set pawns shops and these other stores apart.
The business models
Pawn shops, consignment stores and thrift stores have different business models. Unlike their counterparts, Pawnshops are fundamentally money lenders. It might not sound glamorous but the main function of pawn shops is to provide loans. You go to a pawn shop Melbourne with a valuable item and pledge it as collateral. The pawnbroker will assess your item and offer you a price. You can then accept the offer or decline it and move on to the next pawnbroker. If you do accept the offer, you get cash on the spot. There are no credit checks, no background checks, no hassles. The pawnshop will hold your items until you pay off the loan. If for some reason you cannot pay the loan back, the Pawnbroker will sell the item. Thrift stores and consignment stores do not offer cash loans.
Pawnshops in Melbourne are regulated by the Victoria state government. For instance, they are not allowed to accept items from people under the age of 16. Because they give out cash loans, Pawnshops in Melbourne need to be registered. State laws limit interest rates and stipulate how Pawnshops should record transactions.
Pawnshops not only offer loans but they also buy items from people. Pawnshops accept a wide range of items. You can expect Pawnshops to buy and sell precious metals like gold and platinum and in the same space sell computers, cell phones and other things you wouldn’t expect to find in a thrift store.
Consignment stores are different to pawn shops and thrift stores because not only do they not offer loans against valuables items, they also don’t buy things to sell in their stores. What they will list your items as part of their inventory that goes for sale. If your items sell, they get a percentage of the sale but if your items fail to sell within a specific time frame, the store will return them to you. Consignment stores will charge you a service fee.
Items that thrift stores carry are usually donated and they sell at rock bottom prices. Contrary to popular belief, not all thrift stores carry old stuff or items that are not in the best condition. Some thrift stores are more discerning than others and carry quality stuff. As a seller, you won’t get much for your goods but a thrift store owner gains a lot by acquiring goods for next to nothing and selling these for a good price. When all been said and done, when you need cash fast and you have something of value that you can use as collateral, a pawn shop Melbourne is the best place to go to especially if you are still attached to the item and you are not ready to part with it forever. You can get a pawn shop loan and get the cash you need at that moment and get your valuable items back when you pay off the loan with interest. Pawn shops are convenient and but unlike