Is it worth turning my pawnshop into retail jewelry store
 

Is it worth turning my pawnshop into retail jewelry store. I have a pawnshop, we buy gold , jewelry and diamond, and sell it to a broker or online right away, we don't keep it long, but we sell it at wholesale price. But now me and my partner are thinking of saving the jewelry and buying more, and making it into a retail store.. Downside is we are keeping the item for long time, upside is, more profit. What do you guys think.

Do you mind if i call my buddy who's an expert in converting pawn shops to jewelry stores?

Do you mean close the pawn shop or expand and have a shop inside your pawn shop?

Yes have a shop inside the pawnshop. So basically will try to retail what we buy, instead of selling it fast with low profit, will hold on to it longer.

Surely that would be much better if you have the funds to hold on the the goods

You probably will want to have a seperate shop for selling as in jewelry shop. People coming into sell their gold etc will know you are low balling them so you can retail after. That biz might drop off. :2 cents:

Can't hurt to do some testing. If you dont sell it retail you'll still have it to sell wholesale later. My guess is it will be a matter of retail volume. Can you move anywhere near as much retail as you can wholesale?

Location location location? The ideal place for a pawn store is probably NOT the same as the ideal place for jewelry store... Nor are your target customers the same, nor is the way you deal with those customers the same.

Combining these 2 into one store seems strange.

I've seen it done, but usually they have a discrete little counter/room for buying stuff and a "normal" retail store for selling their stuff.

I stopped retail in mine years ago. Take the profit at a wholesale level and be done with it.:2 cents: Keeps things nice and simple:thumbsup

I guess it also means you aren't left holding the bag if the merchandise is questionable too. ;)

:2 cents::2 cents:

what about setting up on ebay to start? so you'd have the pawn shop, then flip it on ebay, build up capital, work into retail that way?

its.. early tho, and i am still working on first coffee

i would never think of buying jewelry from a pawn shop the trust just isnt there, as im sure its not with a lot of people

I doubt we can retail as much as wholesale. But the profit will make up the differences.

Having a retail business to consumers is so vastly different than what you are doing now, why would you change?

People fail in business because they stop doing one thing, following the money! You have something that is successful, so figure out how to make it more successful.

Open up another location 20 miles away.

IMO, worst idea you could ever do is to change a business model that is working and producing revenue and attempt to chase something you know zero about.

That was really clever lol :thumbsup:thumbsup:thumbsup:thumbsup:1orglaugh:1or glaugh:1orglaugh