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How the Status Quo Hinders Pawnshop Growth
You may be wondering:
What is the status quo? Why should I switch? I have been fine thus far…
These are all responses we have heard from pawnbrokers in the past. Click here to listen to our latest webinar.
One of the most common issues we find with pawnbrokers is that they hold onto the mindset of:
“If it ain’t broke, don’t fix it.”
This idea has become somewhat of a “status quo”…
BUT, this methodology may be hurting your business.
Throughout 2020, many business owners have made crucial adjustments to their business models because of the toll taken by COVID-19. This pandemic has changed what we consider “normal business practices” and hindered sales and usual operations.
Of course, it is natural to want to stick to what “works.”
While it makes sense when your current methods have historically shown a positive impact and will likely leave you wondering… “what is the reason to explore other options?”
In this brief article, we’ll cover why pawnbrokers should investigate new methods and how they can leverage updated platforms to help their business.
What Can Pawnshops Do Differently?
Working in the pawn industry can have many hurdles—especially when changing/updating current workflow practices. At Bravo, we believe that adaptation should be part of every business model.
We have found that pawnshops that are late to adoption will eventually be at risk. That is why we want to educate all pawnbrokers about the difference a pawn platform (such as Bravo) can have.
According to PawnShopToday, “52% Pawnbrokers cited growth in their retail sales after making changes to their business model.”
Additionally, many Bravo users have seen incredible sales results during this time of crisis after following some of our previous webinars. (Click here for more webinars)
It is because they took the initiative to adapt and introduce new ideologies and technologies to the culture/focus of their business. Pawn POS platform integrations are a great way to assist the workflow of a pawnshop.
What is “Integration”?
Integration means that a piece of software communicates with another software/program to add additional services to the original piece of software. Think of it like using PayPal with your bank account… They are two platforms that work together to make your initial purchase while making the process easier for the user.
When implementing software integrations for your pawnshop, you are effectively equipping your Bravo POS system with the ability to connect with other programs/platforms, such as:
- Your Website
*(Bravo also provides a branded website to any shop that has not yet created a website.)
One benefit of this type of integration is that your pawnshop can receive a new piece of inventory and easily log it into your system while simultaneously posting it onto your desired platform, i.e., eBay.
You can quickly enter the mobile shopping market and take advantage of the online shopping world by posting your inventory online through integrations.
With Bravo, this integration will also work retroactively and post your existing registered inventory to integrated sites to allow for more customers browsing your items.
Just think, with this type of integration, you would not be confined to the physical shop. With Bravo, you can buy, sell, and loan—all through one easy-to-use platform! Learn more about the Bravo app – MobilePawn!
So, why should you consider adopting a fully integrated platform, such as Bravo? Well, the most straightforward answer to that question is… potential growth.
There is a considerable marketing and sales opportunity if adaptation is part of your discipline—especially when you venture into mobile sales. Most shoppers are now utilizing their phones as their primary source of purchasing and expect an omnichannel experience.
- 52% of consumers have push notifications enabled, and they check their phone 50+ times a day
- 85% of Pawnbrokers operate a website and report using social media
- 3 out of 4 pawnbrokers are using eBay, Craigslist, Buya, and other sites to sell online
- 9 out of 10 consumers want a seamless omnichannel experience
- The average customer checks their phone 52x per day
- SMS open rates are 98%
- 75% prefer to receive promos via text message
Brick-and-mortar stores have taken a massive hit during the pandemic. That is because consumers are using other methods to buy items from home.
In fact, when we look at consumer trends—we see that 90% of consumers want an omnichannel experience. Meaning they want to be able to check you out and do research online, pay their loans quickly on an app, and potentially walk into your store.
Another thing to consider is that your competition is most likely already selling online (and using social outlets) to attract buyers/drive new sales. While they may be implementing new ways to move inventory, they are probably using a point solution.
So What is a Point Solution vs. a Platform Solution?
Point Solution – A single software that solves a single problem or a limited set of very closed related issues, rather than addressing all requirements.
Platform Solution – A set of cloud-based solutions/services that can be combined to provide a complete full tech “stack” that supports all business functions.
Pawnshops that leverage a “point solution” have to update listed inventory manually. Additionally, they are required to pay a premium to numerous sites to perform daily tasks. So while they may be advertising on other websites—they require an employee or staff-hours to penetrate that portion of the online market.
The excess price for point solution programs doesn’t stop at the additionally needed staff-hours…
Once you start to add up the cost for 5-10 programs—you are looking at thousands of dollars for “premium services,” which often result in paying for unused services.
A platform solution is the best (and obvious) choice because it outperforms (and simplifies) the work process. Additionally, it will encompass all of the external software/platforms/services you need to operate at a customizable level!
Here are a few key reasons to eliminate the excessive workload that comes with a point solution and shift to a platform with integration abilities:
Key Advantages of a Platform
- Easy/Inexpensive Customization
- Tailor the system to fit your process/model
- Scale quickly by adding integrated applications
- Centralized database & ability to automate
- Easier security management
As you can see, a platform solution will allow you to adapt and overcome anything that may interfere with sales!
So what are you waiting for?
Find out how the Bravo Pawn Platform can help you move inventory, increase buys/sells/loans—AND increase the visibility of your shop to consumers. Click here to schedule a demo today!