Pawn shops are now frequented by all economic classes
Once derisively called “banks for broke people,” pawn shops across the country have experienced a revolution in popularity. According to survey results, pawn shops are now frequented by people from many different social and economic backgrounds.
Customers who return to pawn the same items again and again are still likely to be from households earning less than $15,000 per year. However, they have been joined by more middle class and even upper middle class pawn shop patrons. In one survey done in Tennessee, researchers found that 25 percent of people earning $30,000 to $50,000 and 20 percent of people earning $50,000 to $75,000 had visited a pawn shop in the past 12 months. Some pawn shops, such a Gems & Jewelry Inc., actually court upper-income patrons by offering loans on big-ticket items such as boats, planes, fine art, and high-end vehicles.
Why are pawn shops so successful right now? Here are three possible contributing factors.
Pawn Shops in the Media
First of all, TV shows like Pawn Stars have helped improve pawn shops’ image. These TV shows allow the public to venture into a pawn shop and even get a behind the scenes look at how they operate without leaving the comfort and safety of their own living room. For better or for worse, whatever is on TV tends to get legitimized in the public eye and this seems to have happened for pawn shops.
Improved Security
Another important factor is that many pawn shops have made an effort to improve their premises, locations, and security. While pawn shops were once only found in the worst parts of town, now pawn shops have sprung up all over, even in suburban locations. With the improvement in cleaner, more secure premises, more people feel comfortable going into the pawn shop to do business. And with many pawn shops offering guaranteed secure, insured storage for pawned items, people may feel it’s less of a risk to trust their big-ticket items to the pawn shops for the duration of the loan.
Hard Economic Times
One final factor that has no doubt contributed to the rising popularity of pawn shops is the overall hard economic times facing our country. Many people from all walks of life find themselves needing extra cash, and the best place to get it is a pawn shop. There’s no need for a credit or income check, so people who could never secure a loan from a bank can easily walk away with cash from a pawn shop the very same day that they need it.
