One Month

OK, so I have been really open for a month now.  If you are reading this then I guess you are wondering how it's going.  Here are some fun stats.  No particular order I'll type as I think of them.

17K in purchases
9k from vendors
"retail" value 66K

We had 225 transactions mostly buys but it is changing.  Now many of our days have more pawn than buys.  Our eBay store is up and we made over 500 this week alone.  We had over 4k in pawns and currently have 100% redemption but that will go down next month.  Our income from these pawn is at 1k per month already I hope to be at 3k next month.  Our busiest day of the week is Mondays and we are busiest from 12-2 and from 4-6. 

No major mishaps yet and only one call from the PD about tickets with not enough information.  We only had two buys where I know I paid too much but we are not making the same mistakes so I chalk that up to education costs.

I've learned that employees are not as interested in being a pawnbroker as I am.  When I come across something that I don't know about I go on a research expedition.  It bothers me to not "know" what something is worth.  The questions:

• Why is it rare?
• What is the market for it?
• Can I sell it?

This stuff actually bothers me, and not many others.  Maybe we (pawnbrokers) are a rare breed.  After only a month I know that there are tons of more experienced brokers than me, but not many. 

I try and educate every single customer that comes in why I offer them what I do.  The reaction to it is surprising.  Seems that other Pawn Shops are not nearly as user friendly, that is too bad.  We have many repeat customers already, and our referral program is starting to work very well.

The business plan is still working and the goals of 30 transactions and 50 visitors per day needed are still realistic.  Our record is 28 unique customers in one day. 

The newspaper ad was a complete and total, nuclear winter, bust.  When the saleslady from the paper showed up again I actually laughed her out of the store.  More tuition towards my PHD in Pawnbrokering.  We have an ad coming out soon that will be on the table of the local hot-rod hangout Biff-Burger.  Next week also starts the door hanger campaign.  Reports on those very soon.

Having almost every single customer ask "do you watch Pawn Stars" is getting old.  My boss (the wife) says I should tell them I have a show coming up soon called "porn stars".  I told her to stick with the day job.

I have written in detail about some of the unusual things that come through but I have some winners that I am saving for slow days. 

All in all it has been one of the best months of my life and hope it's the worst one ever.  I have always tried to live my life exactly how I wanted, sometimes I feel good about it, this is one of those times.

I still haven't received any feedback about my ramblings if you have a question let me know.  The website and blog are surprisingly popular.  They will undergo a complete overhaul this month by my longtime fiend Jim Hundley.  We are going to try and make it fun and we hope to include a live video feed from the Pawn Shop.  If you have any ideas now is the time.

I wake up every day wanting to go to work, how about you?

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MerchantCircle | Hello, Tim Russell. Welcome to your dashboard.

Check out this website I found at merchantcircle.com

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Monday finds

I got a bad case of the Mondays.  Today started slow but grew on us until we had a record day over 30 unique visitors tons of pawn and sales.  looks like the plan is actually working.  It always amazes me when one of my plans actually works.

Here is a find, a Canadian dominion radio it's am/sw and it came with the repair ticket form the owner just spent $132 repairing it then took $65 from me, and I thought I was crazy.  I also went and had the silver tea set appraised and I think we have good news for the owners I just have to weigh every single piece tomorrow ;<  We have 87 items coming out in the next two days, our ebay store will be rocking.

Tim Russell
President Big Tim's Pawn
5193 73rd Ave N
Pinellas Park, Fl. 33781

727-916-PAWN
IWDTWMCAUTD

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old silver, french guns and new stories...

Another week in the books and I can see some progress.  We went like 3 days without having to go to the bank for cash.  Had our first multiple thousand dollar sales day and had days when we made more than we spent.  For those of you in any other business than a pawn shop this might seem silly to you, but you can go through a lot of cash buying and loaning without selling things. 

Had some interesting customers come through the shop also two of them notable for different reasons. 

The first up are a really nice couple from NC that came in to look at handguns spent a few minutes walking around looking before I got to them.  They were looking for something smaller than their Ruger .44 Redhawk I showed them a few things and talked with them briefly about some other items they might look to get rid of, nothing exciting.  I did give them an education about selling gold and they seemed very happy with the info.  I suspected they had a large quantity of gold sitting around somewhere.  Helping someone always comes back to help me in my experience and this time was no exception.

The next day they come back with a huge tupperware container full of old Schofield silverware, a full 8 place setting, over 200 troy ounces.  And though they were counting on selling right then, I found some interesting pieces that I wanted to further research.  I asked for more time and they graciously left the full setting behind.  I find this amazing because this set is worth at least $3000.00 just in silver, it does feels good when people trust you .

The other interesting story we had this week was another guy looking at the guns brought in a very old shotgun.  He was looking to sell it and was determined to get $500.  With very little info from him and even less information on the gun itself I was off to the internet to find the value of this weapon. 

After much research I discovered that the shotgun was a 1873 French Military shotgun. Original barrel band , trigger in great condition, barrel was thin but in all a cool weapon.  I was able to find the information fast and even show the customer a very accurate picture of the gun wi the description along with the current valuation of around $350.  With this in hand he kind of gave up on the sale of the weapon and thanked me.   Did your pawn hero stop at that though?  No, fair readers, I offered him $300 trade in and he promptly bought a Taurus Judge and left a happy gun owner. 

For a born trader like me there is no other occupation I can't wait for Monday, how about you?

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of maps, fools gold and professional pawn shoppers

Today you get the treat of an interim post because of the oddity that is my life.  Today started brutally slow and I was getting annoyed with the situation so I left the shop to handle my other life. 

My wife and I own an Employee Leasing company (EnterpriseHR).  We basically take over other businesses employees and provide the payroll, workers comp and benefits for them for a fee.  Nice business, not exciting but it does pay the bills and we get to employ our extended family.  I do the sales and Karen, the super mom, handles the day to day logistics of the payroll system.  We have 1800 shared employees in Florida and the payroll end of it is a real job.  So, I handle some issues there and between driving there and back all hell breaks out at the pawn shop.

When I get back we had purchased some gold and dvd's, but we also got a framed map of the world that I had found on Craigslist.  Hard to lose for $15.  When I finally saw it though I was blown away. This one had a nice frame, real plate glass, and a very old detailed map printed in Ye' Olde English.  Very cool and just my style...

You are reading this so I'll share a little.  I'm a pilot, private single engine.  I got my license becasue I've always wanted one and it was an accomplishment I could check off the list (more about the list later).  Maps facinate me, like automatic watches, fast cars, and big screen TV's I'm simple like that.  My day was suddenly much better.

After that normal pawn shop stuff, lots of looky-loos and shoppers, we didn't sell much but the shelves are still very bare.  It seems that no one is looking for the things we have but there is an endless list of stuff we don't have that they would pay a million dollars for.  Then we got a visit from out local professional pawn shop guy.

If you didn't know there is an actual vocation of going from one pawn shop to another buying and selling making a small profit.  Kevin is our professional, commission only shopper.  In the 3 weeks we have been open Kevin has brought us some cool stuff.

• Polaris ATV cheap
  
• Yamaha Jetski cheap
  
• nintendo wii's when no one could find them used...cheap
• tools....holy cow cheap
  

Kevin is a useful guy.  Kevin is also very under appreciated by other pawnbrokers.  As he explains the relationship with other pawnbrokers they tolerate him but hate the fact that he operates much like a mobile pawn shop without the licensing, etc.  I could see his side that he is treated poorly but, it's only his side of the story, time will tell.

Kevin calls me 30x per day....ahhhhhhhhhhhh, so today we changed the way Kevin works for us. 

The norm for him is to go to a shop and find something another shop may want and start calling the owners.  This is a problem for me as I loathe the phone.  Judging him on his short history Kevin would be a great pawnbroker but for whatever reasons, he just never put it together.  So today I gave Kevin store credit.  He has already made us more than $500, so I told him that he has the ability to buy for us up to $500 at anytime and we would settle it later.  I think I made a good friend and solid investment today.

Then the weirdness that is a pawn shop happened.  Store is bumping with lookers and this homeless looking guy comes in a wanders around obviously waiting for me to get loose.  As I find my way to him he is mumbling something about coins and holding a postcard for me to look at.  As I look at the card I don't understand the connection between the card and the customer.  It's postcard from a doctor.  Finally I get from him that he wants to know if we buy gold.  Sure, I say, then I ask what he has and he points to the card.  Again I feel like someone expecting to be in a college algebra class that accidentally sat in  a string theory class.  Then I really look at the card and it has a gold foil label. 

Finally, the light goes on, he wants to sell the gold foil label, he say he has 10 of them.  Instantly I want to burst out laughing and just as fast that is replaced by a wave of pity for him.  As politely as possible I tell him it's not gold and offer him a free pocket knife for coming in.  I could feel the shame and embarrassment coming from him. As a rule I never give money to the guys holding signs on the side of the road, (it's the independent in me) never felt the need.  I really felt bad for this guy.  He wouldn't even take the knife.  So that was my full circle of a day....how was yours?

Hey while I'm thinking about the blog if you like it please subscribe to it.  Really helps the Google score!

Tim Russell
www.bigtimspawn.com
www.bigtimspawn.blogspot.com
IWDTWMCAUTD

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stuff coming out this week

girls schwinn $45
boys mongoose 65
port cable router $20
black and decker drill $20
rigid drill $50
tons of jewelry
asus netbook $225
playstation 3 $250
ps3 games various
vivitar digital camera new in box touchscreen we have 5 at $85/each
300 dvds at $3 each 4 for $10
rolling craftsman toolbox with tons of craftsman tools $800 whole thing
garmin handheld gps nuvi 200w $100
wagner power sprayer 1800psi $40
rigid rolling shop vac $45
New Michael Kelly visionary acoustic guitar $249
canon ae1 35mm camera $75
and more

See and download the full gallery on posterous

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Gold Todays Price

Gold is 1134 this morning we are paying $28/gram Tuesday 1/19 Tim

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more of what the Pawn Shop taught me.....

Download now or watch on posterous

test.avi (5481 KB)

Another week in the books and some victories some setbacks....here is what got done.

• video systems is in ...only a few minor changes to be made move and refocus some cameras but some interesting video already.  Thanks to the guys at Privacy Electronics for a smooth installation.  I have eight motion sensitive cameras and 60 day DVR.  I attached an example of the video quality.  Very cool tech I can log in on the internet and not only see but hear what is going on in the shop.
• New guy (Dean) has a few weeks on him now.  Shows up on time and seems interested in his job.
• Eric, manager/brother-in-law is working out well, bery honest and seems to enjoy the job more than I thought he would.  For a guy who couldn't get a job teaching history to end up as a pawnbroker is a stretch but it seems to work for him, we will see.
  
• we are averaging 15-25 walk-ins a day even though we have very little merchandise to see   but we have a metric butt load coming out in the next two weeks.
• We bought out a tool shop going out of business around the corner and got some cool stuff, shelves, tools, storage stuff for $200.
• about 3k of stuff off the street, only about 1K in pawns :< but more each day.
• we have 16 oz in gold now about 30 days away from scrapping should have 30 oz in first run.
• Sold our first gun, Walther PK380, to a local employee of another gun store :>
• got some cool stuff in, ATV, Jetski, goped, bose 321, nice audio stuff, xbox360, 200 dvds, 140 video cassettes....you get the idea
  

here is what didn't get done

• still need more signage
• have appt Tuesday with flyer distribution guy as the newspaper ad was almost a complete flop.  If we didn't have one 100gr buy from it I would call it a total loss.
• Our standard operating procedures to get merchandise out and on craigslist, ebay and in the local classifieds sucks...really bad.  That I will fix this week.
• The website is still 3rd gradish but I'm just one man.
• Delivery van still needs to be wrapped.  That is a surprisingly expensive prospect $1700

The plan to get people in the store selling to us was easy and as expected worked well.  Now the hard part to switch to getting people in to just sell gold and get loans hopefully the flyers will help with that.  The signs should also.  Met some really cool people including a pawnbroker 8 miles away next to where my dodge is being rebuilt.  He was kind enough to sell me some needed stuff for my shelves, nice guy, Clint from Pawn Depot in Largo I salute you.  I might have some time to update you more frequently next week never know what will happen.

Tim

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What I Iearned this week......

Part of being a business owner is having a plan.  I've learned the hard way that you always have a plan you just just are not aware of it sometimes.  And the worst one of all is no plan because without one you will surely end up exactly where you deserve do be. 
My plan in starting a pawn shop was multi-part.

• I've always wanted one.  I know that sounds weird but when I was a kid(younger) I loved to goto them and look for rare guitars and coins.  Never really found the 100.00 Les Paul but the search continues.
• I really suck at picking stocks so hopefully I can invest some money in the shop and make a good return.
• I can not remember to take out the garbage most of the time, yet I can tell you the difference in mintage of 1964d vs 1964s dimes.  I can spot a fake Rolex at 30 feet.  My depth of knowledge of all things completely useless is only helpful in a pawn shop.
• I've always been pretty good at marketing and seeing what doesn't work.
• I am completely and utterly unemployable, so this better work.

Here is what I learned this week.
People know when you are being honest.  As a pawnbroker you LOTS of opportunity to really rip people off.  As of right now we have done almost 100 transactions and you can see in the customers eyes when they come in,fear, and really feeling out of place.  They come into the store with their guard on high alert.  But if you talk to them like they are family things change. 
We have a customer that has been into the shop three times in five days already we call "guitar Joe".  Joe has sold us a cool mid 80's Fender amp and hung out to talk.  Saturday, Joe comes in and says he would like to thin the herd of guitars in his house and wants to sell his Fender Telecaster. 
Now for those who don't know the telecaster is an iconic instrument with a long list of credits with an unmistakable sound.  The cherished instruments depending on where and when they were made go from 100 to many thousands of dollars.  Joe's pride and joy is a 60th anniversary  black and white beauty.   After a little testing Joe tells me he what he wants for it and I ask him why he doesn't sell it himself.  Joe tells me that even though I might only have it for awhile he knows I'll take care of it, and he thinks I'm an honest guy. 
I know that after a little work I'll make a few hundred from the guitar but the trust that Joe showed in me was worth its weight in gold.  Being a Pawnbroker is kind of cool.  I've always been pretty good at the things I do in life, but this one feels different.  More to come....

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Real Art In Pinellas Park, Fl.

Even as a kid I have always had a great appreciation of art.  I used to go to the Ringling Museum of Art to see the great Renaissance period works with my parents and ever since then it has been one of my favorite places on earth.  I'm almost afraid to bring my youngest one there, in fear that he won't see the beauty that I see in it.

I was always amazed at the scale of the paintings.  It was hard for me to even imagine completing one of those great paintings in a lifetime and being amazed that one man could do so many.  What I consider art is eclectic, but the things I really appreciate is 14th-16th century Flemish and Christian art.  Specifically Ruebens.  I also have a great love of mechanical things..... cars, planes, automatic wristwatches, and well made guitars.

Having a pawn shop in what is not considered a metropoliton area I never expected "real" art to ever appear in the store or at least very rarely.  Well less than ten days with the doors open in walks real art.  Not lifestyles of the rich and famous, but, some interesting stuff.

We had a customer come in and sell some coins.  Common US coins.  He also has some Irish coins, not my thing, but I liked it that he showed me.  He also had a good story about the coins and it was obvious that he had enjoyed having them. He also taught me a few things about the coins that I looked up to confirm and his information was correct.  I got to check off my learn something new for the day box, cool enough.

Then he says to me  "I brought the litho that I talked with you about in an email".....hmmmm.  Here is where our story makes a detour.

Right now most of our marketing is contacting Craigslist sellers and making offers for there stuff.  We use a combination of live and software generated offers initially.  If any interest is garnered then we get into a "live" negotiation with them.  We go through about 300 emails per day.  I had misssed this last email because had told me he was coming in then followed it up with another email saying he had more stuff.

Once I put a customer in the "coming in box" I generally ignore the follow up emails, beacuse I cant handle any more emails.  Not the ideal procedure but necessary right now.

Getting back to the story.  He tells me he has a lithograph of Frank Frazetta's original artwork of "the lieutenant".  Frank Frazetta is the artist that made the movie Heavy Metal, drew Conan, drew Tarzan and other famous dark, gothic, sci-fi greats.  It was obviously well framed with COA and it was a beautiful Lithograph.

If you don't know the difference between a good and not good litho the difference can be hard to see.  Fortunately, for me, I can see it. This particular one had great color separation and really nice paper, well framed.  It was a plexi-glass face but that was easily fixed.  I didn't put a number on it and asked for some more time.  Graciously he accepted my request.  Hopefully I can still buy it at his offer and I'll put a picture of it here.  Maybe, just maybe, there is some hope for culture here yet.

Update 01/07/2010

OK OK I know its been awhile.....In between the new Pawn Shop I have also been living my life.  For those of you who know me I have and drive a lot of classic cars and my baby 69 Dodge is just about done.  I spent the last 4 years making my ultimate daily driver and now the last of the mods are almost done.

That is 512 cubic inches of Chrysler motivation.  I owe great thanks to the Shaun over at Street Productions in Largo he truly is a master craftsman. We had it on a dyno and unfortunately the dyno only went to 700ft lbs of torque because this motor has more than that.  Should be installed and running by tomorrow.  Look out St Pete here comes the hammer....

Plus we are going to have our first buys come out of holding tomorrow and have pawn shop material for sale!!!!  We have enough to fill 4 cases and two of the big gondola shelves as you walk in the store.  We also have an ad starting tomorrow in the Pinellas Park newspaper.  The ad is one of those kind that are like Post-It notes on the front page.  Going out to 20,000 papers it's an ad for gold at 28/gram or 5% loan. We shall see how it works on Saturday.

We have had great traffic for start up and some interesting items check it out....

Michael Kelly Visionary acoustic bass 749.00 retail less than 300 here

I got a ton of new Citizen Eco Drive watches from my friends at The Watch Studio.  

These are honest $270 watches that are gonna go for less than $110!

 

No real Pimp is complete without his own pimp ring.  This one is in 14kt white gold and 1.5ct of hard slapping diamonds.  I know you can't live without it $500

More to come very soon thanks for looking and please go to Yelp and say nice things about us, that would really be great.

talk soon....

Tim