Pawnshops in general are a hard place to find deals on guitars, or anything else, but bargains do exist.
Based on my own experience, here's how the game is played.
A pawnbroker makes money 2 ways. #1 loaning money against the value of merchandise. Pawn loans are made to people who can't get the money any other way, or in a very short time frame. The interest rate is about 10-35% per month, and in most states you loose your right to reclaim your pawn after 90 days. Laws and shop rules vary, but that's the usual scenario. Loans are how a shop wants to make it's money. Maximum return, for minimal effort/investment. Their best customers are regular working stiffs who are bad money managers. These folks show up once or twice a month and need a few bucks until payday. They pay the loan off in a few days, or a week or two and because there is a per transaction fee in addition to interest, the shops return is higher. These types usually pawn for a lower percentage of an items value, to avoid getting in too deep. When these folks do loose their nut, the item may be a good deal for a buyer.
The other way a pawnshop makes money is buying merchandise outright, and selling at a profit. The deal is buy as low as possible, and sell as high as possible. They only purchase items they think they can move quickly, and only pay 10- 20% more than the max they would loan on the item. Remember they want to loan money. They don't want to buy and sell, they do it when loan business is slow and merchandise is bought low enough to guarantee a tidy profit. They sell stuff cheap when they need money to loan. They sell stuff cheap when too many unredeemed pawn tickets clutter their shop with merchandise. They have many places to sell outside their shop. Customers who walk in account for perhaps 30% of sales. Selling too many bargains over the counter brings in the wrong clientele, people who have money. A pawnbroker seeks people who need money.
So how do you find a bargain in a pawnshop? It ain't easy. Pawnbrokers are shrewd businessmen, they read people like books, have hearts like lions and balls of steel. They deal with the dregs of society every day. Their business is dependent on a steady flow, of exactly the right mix of people all day, every day. The merchandise on the walls is flash, to keep that mix of people flowing, remember they have other sales outlets. You need to get to know the person in charge. The best deals go to regulars, on a keep it confidential basis. Buy a little, sell a little, take a small loan now and then. The man in charge has to know your face and name. You can get lucky too, and show up at the right time and make the right offer when the man needs money.
A pawnshop ain't a simple business, and yes I worked in one once, long ago.
