(PRWEB) May 6, 2005 -
Everyday thousands of Pawnshops loan individual's money on property they pawn. Everything from Jewelry to sporting goods and Rolexes to Cameras, there is nothing that you cannot find in a pawnshop. Sometimes it takes a little longer to find what you want but it's there in a pawnshop somewhere in the world. These same pawnshops provide a tremendous service to individuals in there own communities, but how do the pawnshops make their money. In most cases, itÂs from the interest that the person pays when they reclaim the pawned item or items. About 82% of the pawned items are returned to the person that pawned the item. But what happens to the items that are not returned. The pawnshop takes ownership by forfeiture. This is where the time has expired and the person has not returned to pick the item up, sometimes due to economic circumstances and other times they donÂt have any interest in getting the item back. Maybe itÂs a wedding ring from a divorce or a music instrument that is no longer played. Whatever the reason, there is always equity in the items but not always interest in the local market.
Pawnshops are inundated with inventory that has been forfeited; the only way that they are able to get their money back is by selling these items at a fair market price. Usually this means that there will be considerable equity left. In some pawnshops, such as Beverly Loan Co in Beverly Hills, they have pawned items such as Ruby and Diamond Bras to Sports cars. A quick search on a search engine such as Google.com and you will find articles about the wealthy pawning their high-end property and the Every Day Average Joe doing the same.
The problem that pawnshops are having now is liquidating this forfeited property. The cost of selling these items online thru some web based auction sites are cost prohibitive. By the time you include all the cost associated with selling the property, the shop owner usually ends up losing money. Recently, websites such as http://www.Epawnauction.com and Pawnshop Auction Network have teamed up to provide a place that shop owners could come together and sell this merchandise without any insertion fees. This new online community is helping to serve the local economies of the shops as well as providing a resource for the shops to address issues and concerns with other shops in real time.
There are a lot of great deals to be found online, start by going to http://www.Epawnauction.com to see what is out there.
IBP Corporation Inc.
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