Ever been in a BMW i8? It’s awesome. So that’s why I decided to record episode 37 of #AskBRP in one. In this episode I review the new Apple Watch 2, answer a specific question about the loan process, and answer why I don’t accept memorabilia as collateral. If you want to learn more about my pawn shop Boca Raton send me a direct email to Seth@brpluxury.com.
What do you think about the Apple Watch 2?
So Apple introduced the second installment of their watch. And it looks exactly the same. In fact, I don’t think they changed the look of the design at all. If you put the two next to each other they look identical. However, they did update a few features that many of us were hoping they would.
First, the watch is now “waterproof” up to 50 meters. This means you can swim with the watch on your wrist to a certified depth of over 150 feet. Since 99% of us are not diving on a regular basis, it basically means you never have to take it off. Taking a shower? No problem leave the watch on. Going for a swim? Same thing. Definitely needed this considering any watch you buy now-a-days is somewhat waterproof.
Second, it is much faster. That is a huge problem I had with the first version, it was super slow. Compared to the iPhone, the response time on the watch was agonizing. They claim it is super quick now but I’d like to try it out first before I confirm.
Finally, they got rid of the all gold versions. Hallelujah. Who in their right mind is going to spend $15,000 on a piece of technology that is obsolete in a years time? I feel bad for anyone who bought one the first time around. Yes, they still have the Apple Watch Edition but it is made out of white ceramic rather than gold. I definitely think the white ceramic is the best looking version and sells for $1,299, a fraction of the $15k for the previous gold models. I look for this to be a big seller.
Why do you ask how much people want on a loan rather than telling them how much their item is worth?
So this is a fairly easy question for me to answer. Most people who watch Pawn Stars or Hardcore Pawn think that every pawnbroker is out to get them. That we all want to rip our clients off and sell things for enormous profit margins. Well here’s the thing. We’re not all bad. In fact, pawn shops play an integral part in most communities.
When I tell people what I do they assume I just buy and sell merchandise. They don’t realize that the main focus of my business is to lend money. I could honestly care less whether I buy anything. I just want to lend money in return for collateral.
So when a client come in and wants a loan, the first thing I do, even before I really look at their items, is ask how much they are looking for. This is exactly what would happen if you went to a bank for a loan. The bank doesn’t tell you how much of a loan you can get. You apply, and if you qualify for the amount you need they will lend you the money. Same goes here. If you bring me a two tone Rolex Submariner and need $3,000 on a loan, here ya go, done! Why would you take $4,500 (which is a reasonable amount for this item) when you only need $3,000? Not only will your monthly interest payments be lower but it will be easier to redeem at the end.
That’s why I ask clients how much they need. Because more often than not, they don’t need as much as they think they do. And it works out well for both parties when my client only takes how much they need and is able to repay the loan in a timely manner.
Why don’t you take memorabilia?
When the pawn shop first opened we took anything and everything. We didn’t transition to only high end for a year or so. In the mean time I had an opportunity to buy a bunch of sports memorabilia cheap. I’m talking pennies on the dollar. I bought more than fifty pieces. It is literally the hardest item to sell. No one wants to pay any real money for it and it just sits in the back. We had cool pieces too like Muhammad Ali, Brett Favre, Michael Jordan, etc. Nothing sold. I guess you can say I learned the hard way but the memorabilia market is awful.