Metro Newspaper:- Britan, A Nation At The Prawnbrokers!

[Mega]

Everything is now getting Pawned, people trying to gamble to "Sstay in the game".......Without sussing the game is over!

Mike

[pyracantha]

Everything is now getting Pawned, people trying to gamble to "Sstay in the game".......Without sussing the game is over!

Mike

http://e-edition.metro.co.uk/2010/09/06/

[porca misèria]

Is a prawnbroker some kind of specialist fishmonger?

[Eddie_George]

Jonathan Davis interviewed there I believe.

[mikthe20]

Yes, one of the few growth sectors in the economy. I looked into getting into this game since it was one of the few growth industries in a list I made when I lost my last job, but could never get over the moral issues (stolen goods, payday loans, etc.). Surprisingly expensive to buy a franchise for a firm like Cash Converters (almost £250k for a good-sized shop). Funny story I read on the States - one pawnbroker initially did well but then started suffering themselves as too many sellers and not enough buyers (sound familiar?). The only stuff they could sell was golf clubs to all those who had lost their jobs and now had more leisure time - little demand for anything else. 

[thecrashingisles]

Is a prawnbroker some kind of specialist fishmonger?

It's an economic bottom-feeder.

[@contradevian]

Yes, one of the few growth sectors in the economy. I looked into getting into this game since it was one of the few growth industries in a list I made when I lost my last job, but could never get over the moral issues (stolen goods, payday loans, etc.). Surprisingly expensive to buy a franchise for a firm like Cash Converters (almost £250k for a good-sized shop). Funny story I read on the States - one pawnbroker initially did well but then started suffering themselves as too many sellers and not enough buyers (sound familiar?). The only stuff they could sell was golf clubs to all those who had lost their jobs and now had more leisure time - little demand for anything else.

Don't quite understand the Cash Converters business model. Selling second hand/pawned stuff for more than new? Or is it priced up deliberately, so no one buys and giving the owners time to cough up? Either way you don't exactly get a bargain. And yes in my local CC seems to queue's of people selling their gaming gear, iPhones and gadgets.

Edited September 6, 2010 by Sir John Steed

[Traktion]

Isn't MEWing very much like going to the pawnbrokers too?

P.S. Prawnbrokers!

[porca misèria]

It's an economic bottom-feeder.

Thanks for correcting me

Fundamentally it's a business built around underwater assets.

[Dorkins]

Don't quite understand the Cash Converters business model. Selling second hand/pawned stuff for more than new? Or is it priced up deliberately, so no one buys and giving the owners time to cough up? Either way you don't exactly get a bargain.

Yes, there is something fishy about that.

[mikthe20]

Don't quite understand the Cash Converters business model. Selling second hand/pawned stuff for more than new? Or is it priced up deliberately, so no one buys and giving the owners time to cough up? Either way you don't exactly get a bargain. And yes in my local CC seems to queue's of people selling their gaming gear, iPhones and gadgets.

Didn't look into it too much but I'd guess most of their profit comes from the interest on the payday loans or hocked items. The rest of it is essentially second hand buying and selling and yes some of their items are overpriced but it's amazing how few people actually shop around or just assume it's cheaper - just look on Ebay - people often pay more for second hand items than they could buy the same one new in shops.

[yellerkat]

http://e-edition.metro.co.uk/2010/09/06/

LINK without the subscription bit.

[leicestersq]

Is a prawnbroker some kind of specialist fishmonger?

I went there. Talk about expensive, I really had to shell out.

[sbn]

Is a prawnbroker some kind of specialist fishmonger?

No, its more like a sort of fiscal gream reaper.

It comes from the internet slang term "pwned"

It means you have generally been defeated in some way - ususally a pretty terminal one.

eg

"You have been pwned" = "You have been f***ed"

A Pwnbroker is a man who deals with people who are financially f***ed

Basically people who so indebted they are having to rent/sell their wife's ring to a stranger.

Or maybe even their own ring.

Edited September 6, 2010 by sbn

[whoami]

... The only stuff they could sell was golf clubs to all those who had lost their jobs and now had more leisure time - little demand for anything else. 

Around here golf clubs are a kid's weapon of choice. You can do serious damage with a nicely weighted club, and there's no law against carrying one around, unlike knives.

[Mr C]

Hopefully a glut of nice cheap rolexes on the market soon rich pickings

[mikthe20]

Around here golf clubs are a kid's weapon of choice. You can do serious damage with a nicely weighted club, and there's no law against carrying one around, unlike knives.

Interesting alternative use of a golf club . Another alternative use, which I'm putting them to at this time of year, is for foraging - very good for pulling blackberry bushes towards you to pick the fruit without having to risk the prickles. Absolutely massive amounts of fruit in the common near me that nobody seems to take advantage of, probably because they don't come in a nice cellophane-wrapped box and therefore people think they must be poisonous.

[pilchardthecat]

Pawnbrokers = Money Laundering

The same item bought and sold for cash a hundred times over. The inflated prices are intentional. Real people don't pay them though.

£250k for a franchise is naff all in that context.

[Lone_Twin]

Pawnbrokers = Money Laundering

The same item bought and sold for cash a hundred times over. The inflated prices are intentional. Real people don't pay them though.

£250k for a franchise is naff all in that context.

But if it was for laundering why buy the franchise?

Unless you are suggesting it is coordinated from CC head office it would seem the franchisee would be better off setting up their own shop.

[mikthe20]

Pawnbrokers = Money Laundering

The same item bought and sold for cash a hundred times over. The inflated prices are intentional. Real people don't pay them though.

£250k for a franchise is naff all in that context.

Good point, makes sense. I guess the franchise makes it look legit. Also might explain why the franchise price is so high.

[Dave Spart]

"Britan, A Nation At The Prawnbrokers!"

Yep, we're neck deep in mayo.

[ken_ichikawa]

Don't quite understand the Cash Converters business model. Selling second hand/pawned stuff for more than new? Or is it priced up deliberately, so no one buys and giving the owners time to cough up? Either way you don't exactly get a bargain. And yes in my local CC seems to queue's of people selling their gaming gear, iPhones and gadgets.

There was a BBC series ages ago called Skint,

http://www.bbc.co.uk/nohome/tvandradio/skint.shtml

which had many people pawning their stuff to make ends meet. Pawning stuff is using it as collateral for loan. Because electronics stuff has such low value they can give insulting amounts of money out.

I remember from Skint a guy who regularly pawned his sons playstation, he got £5 for it and had to pay back £7 end of the loan. This was when playstations were new and impressive.

[leicestersq]

There was a BBC series ages ago called Skint,

http://www.bbc.co.uk/nohome/tvandradio/skint.shtml

which had many people pawning their stuff to make ends meet. Pawning stuff is using it as collateral for loan. Because electronics stuff has such low value they can give insulting amounts of money out.

I remember from Skint a guy who regularly pawned his sons playstation, he got £5 for it and had to pay back £7 end of the loan. This was when playstations were new and impressive.

Two quid profit for the pawnbroker, not worth it, given the space that rubbish takes up, just drives customers away.

Seems to me that these outfits are mainly used for laundering cash, appears to be the right one based on your evidence.

[@contradevian]

There was a BBC series ages ago called Skint,

http://www.bbc.co.uk...dio/skint.shtml

which had many people pawning their stuff to make ends meet. Pawning stuff is using it as collateral for loan. Because electronics stuff has such low value they can give insulting amounts of money out.

I remember from Skint a guy who regularly pawned his sons playstation, he got £5 for it and had to pay back £7 end of the loan. This was when playstations were new and impressive.

Yes I know what a pawn brokers is thanks. ;)Its just my local one seems to want more for pawned or second hand stuff than for new. They seem very expensive to buy from.

Actually, the local one I thought was a "Cash Converters" is in fact an "Entertainment Exchange" when I took a closer look. At the moment they have a selection of LCD screens in the window, round the £90-100 mark. Sure you could get something better for about the same money.

Edited September 6, 2010 by Sir John Steed