Originally Posted by harvey_birdman
In my experience most pawn shops sell things on a payment plan, so while that bike might cost $129 from the pawn shop you only have to put $10 down.
Maybe (although there are no signs advertising it)...I've never seen anyone buy anything from this rather small shop. Obviously, the prices are negotiable too, so you could pay less...but even at $65, that bike is a bad deal.
I wonder if they just make so much money on the high interest loans that they don't really need to move inventory? They are basically payday loan places that take your stuff as collateral, and the payday loan shops get along fine. Having some inventory at least brings in foot traffic to get them aware of and comfortable with the shop. Maybe the high prices are even advantageous since they will inspire someone to bring in their stuff (only to get a lowball offer).