nowadays i know of nobody that actually has visited pawn shop before. so how do they actually stay in business. rental also cost money right? i heard rumor about they are usually fronts for money laundering or ah loong business. not sure if it is true or not since it is just rumor.

i meant, if it is truly and very obviously money laundering front isn't it easy to crack down? imagine a front that cannot be cracked down then every songlap person can easily use it to justify their income. must be more to that than meeting the eye.

There are plenty low income ppl that use pawn shop facilities. Mainly because the amount is not a lot and they don't qualify for bank loans. Better than loan shark.

Cash converters shop got many people frequent lah

what can they pawn nowadays? if they are poor i think they won't have car or house. only jewelry from marriage? pawn shop won't accept things like clothings, computer, smartphones etc right since those devalue too quickly.

Possible money laundering too. Selling price macam yahudi, doubt anyone would buy anything there. Some more got 3 staff manning the shop.

Cash converter and pawn shop many people go to sell or pawn their stuffs for some cash. Many are legit business, cant say about most.

I pawn my unwashed underwear for rm100

You can pawn your porn for prawn

TS never read news where pipu borrow sht tons of money to look good on cny and raya is it?

try to live in kampung area, u'll be shocked

p/s: thats where all the golds are

Still got people go.
TS must be richfag from big city.
In small towns, peasant like us still need pawnshop to ensure still got cash flow.
We pawned gold items to tide things over.
We can't get soft loan from banks because no solid income proof, no background, no kabel.
Once we got money, we will redeem those items back.
Of course, when we got the gold items back, they will be lighter or smaller than before.
This is because the pawn shop owners will chisel some off or cutting away few links in the gold chain.

Certain people, they like to spend all their money on things like watches or jewelry just to show off when balik kampung. After that regret no money buy rice, so they pawn it and take back some money. Rinse and repeat

Its not for us. Its for foreign workers

Some Pawnshop already exists since merdeka time . From wooden open air window to high tech pos machine with display menu .

Only for Malaysian

I consulted for a nasdaq listed pawnshop. So you can ask me anything.

Pawnshops unlike the tv shop pawn stars, dont make most of their money from buy-sell but rather loans. 80-90% income is from providing secured loans at a very high interest rate. It is high because the labour and insurance associated with storing an item is high. In asia and mexico, the pawn market is immature, typically focused on jewellery only. High value. Lower cost to handle. These loans are effectively to serve the unbanked and underbanked.

In US, you can pawn nearly anything with value. Top items are TVs, game consoles, handyman tools, ladies bags, air jordans...have even seen children's violin and prosthetic limbs, car rims and tyres, firearms...literally anything with value you can pawn. They typically give you 50% of current market value of item as loan. Can be higher depending on how high your drop rate is. Drop rate is industry term for default rate i.e. when you dont come back foe item

Pawn is older than banking. One queen pawned crown jewels to fund a war. Forget who it was

This post has been edited by maxmillion: Feb 22 2020, 05:47 PM

subang and usj , a middle class area also got few pawn shop open these few years.. just coz u don't go, doesn't mean there is a segment of society that don't patronise it...

didn't know that, sounds very professional. i suppose it requires a very active 2nd hand market in order to achieve this bcos if customers cannot pay back the loan, the shop will need to find ways to resell those pawned items somehow.

Interesting what u wrote!
Say, in Msia, can we walk in to view and buy the unclaimed pawned jewellery at a discount after default term (how long? )

ts rich no go prawn shop

some local public listed jewelry company also got own a few pawnshops.

U no capability say ppl launder

my friend always pawn his gold chain, and redeem back when problem solved.

way more better than loanshark.


drivethru kedai pajak
https://johor.chinapress.com.my/20191123/%E...-thru%EF%BC%81/



This post has been edited by y500: Feb 22 2020, 07:00 PM

In US drop rate is about 15%. Of the merchandise that drops, they make margin of about 35% over what they pay for it.

The segment that pawns items typically also buys the items they see in stores. These people have no self control. Poor financial management. They dont think about saving for items...they typically buy on instalment plans which also attracts interest...the listed lenders are very very sophisticated. They ML and data to determine how much they can lend you.

In US impossible to launder...they capture your ID. Also if item is stolen, police can confiscate and do not give you compensation.

A store has to wait 15-30 days after an item drops or is bought before they can sell it. In case it is stolen and someone reports.

You can get items for a bit of a discount but not much. They sell as close to retail as possible. Why wouldn't they try and get as much money as possible? In worst case they melt jewelry for scrap.

Mispricings arw more likely with merchandise. Sometimes store managers dont know what they have and misprice. Especially true for electronics and other specialty items.....they mainly use ebay to set price

ah eBay, a nice secondary market for later disposal. now i understand their business model.

outside pawn, behind ah long activities.

More mysterious is why so many middle east carpet shops still around. Osama bin Laden already gone.

Sorry. Just to be clear, they only use ebay to set price for items not ebay to sell items. Ebay is too expensive to list items. Eats into their margins.

Also, pricing of items decrease over time. You will see on certain price tags how much they are willing to sell item for after 30, 60 and 90 days. This is to deal with depreciation of technology and not keep too much stock on hand. Remember, the items you see on shelves is capital in the form of physical goods. You want to liquidate it as quick as you can for the highest price possible. Sometimes if they want to much, it just sits on the shelf and there is an opportunity cost.

The Nasdaq listed lenders are very very sophisticated. Not like Ah longs - short term intimidation and fear. The Ah longs could create a shadow banking industry but they are too stupid to think long term

Wait what?!!!! U serious? Lol.

This is what everybody says about anything that they don't know the business model of. Typical bullshit from idiots who don't know fuck all

Anyone knows currently how much the pawn shop in Malaysia the interest?

got la pipu go

you try ask shop how much for rolex

pajak gadai. u pajak cheap, u tebus high. after few month not tebus your valuable item gone.
that how pajak gadai make money