Ladies and Gentlemen in Pawn Land,
Pawnshop Consulting Group has been getting flooded with incoming traffic via phone, text, email, and various video formats we utilize for our community to communicate and stay in touch with us.
These are uncertain times we are witnessing, and as a result a number of markets in the USA and globally are closing down closing borders, cities, markets, businesses, and stores, including Pawn Shops.
Many businesses are closed or are closing, laying off employees, resulting in unemployment claims soaring as is unemployment and it’s going to get a lot worse before it gets better is the prediction.
Be prepared, significant economical changes are here and more coming, the USA has seen a sell off in the stock market estimating some 10 trillion dollars in market losses since this event began.
IT IS OUR BELIEF WE WILL BE COVERED UP WITH HIGH LOAN DEMAND, PREPARE FOR THE TSUNAMI, ITS COMING!
ADVICE FOR CLIENTS AND THE INDUSTRY IN GENERAL
Strategies to consider:
- Economy has and will continue to plummet for a while with the massive layoffs and business closures in general
- Retail sales are going to plummet, get as prepared as you can
- Build up cash reserves by any means necessary
- Eliminate all non-essential expenses in your businesses ASAP
- For firearm dealers, sell your product, replace as you can, demand appears to be strong and may remain that way for a period of time – numerous clients of ours are doing record sales of this inventory category right now
- Price your saleable merchandise to SELL and dump what you can if you have any buyers looking to buy just about anything
- Liquidate gold, reduce jewelry inventory – convert into cash everything possible
- Begin reducing loans on A line and B line goods ASAP, with the pending economic corrections luxury items will diminish in value as will the ability to sell them in many cases
- Reduce loans on B line products, work closer with good customers, and solid qualifying before loaning on any general merchandise, exclude C line product all together at this time
- Max Lending philosophies on the gold and other product categories, are out the window for now
- Gold loans to qualified customers pull back to 50 – 60% of spot at this time
- Many of the qualified loans you may be writing now, are most likely buys > were expecting forfeiture rates to climb for some period of time
- Maximize ALL security protocols, stay vigilant, stay aware, stay safe, and follow up with Tony Gallo and his team at Sapphire to better protect you, your teams, and your stores!
Keep in mind PCG is offering a variety of supportive services via online and more, reach out directly if you need any help or assistance at all, our teams are here to help!!