Larry Nuckols laughs when asked about the usual television image of a pawn shop and the reality he has seen during his 30 years’ experience.
“Yes, the stereotype of the shady-looking guy behind bars in a dimly lit store still exists, but definitely not in our stores, that’s for sure,” said Nuckols, the president of Money Mart Pawn & Jewelry, a privately owned business with 18 regional pawn shops, including two in New Braunfels.
“In fact, I like to compare ourselves with a fine retailer,” he said. “All our stores are in prominent locations and are well lit, with professional employees who proudly offer customers a warranty on most all our goods.”
Just like any other company, pawn shops operate to make a profit.
However, in this uncertain economy, unlike many other businesses that are downsizing or closing, many pawnshops, thrift stores and the like are experiencing an increase in business.
“We’re fortunate that here in Comal County, things haven’t been as bad as elsewhere in the country,” Nuckols said. “Jewelry has been traditionally about half of our business, and while that is slowing down, on the loan side of the business, about 75 percent comes from repeat customers.”
Indeed, many who shop at pawn stores do so because they know they will get a bargain.
“It’s a totally ‘green’ way to go in that most goods are ‘recycled’ or previously-owned,” said Chris Upton, Money Mart’s vice president of operations. “Much of what we sell is in excellent or near-new condition, but so much more affordable than the full-priced goods found at name-brand shopping outlets, mega-chains like Wal-Mart and even through online discounters.
“This alternative shopping approach is catching on with consumers. Despite the recession, Money Mart has experienced double-digit growth in the past two years.”
Nuckols said some of his stores’ business stems from smart parents who, for example, are trying to save money on new family hobbies.
“Let’s say a child wants to take up a musical instrument or dad shows an interest in golf,” he said. “It certainly makes sense to buy an instrument at half price instead of full price while you see if the interest will hold up.”
And, should the prodigy lose his or her desire to create a musical masterpiece, Nuckols said dad could always revisit the pawn store to trade the instrument for the set of golf clubs he wants.
Pawn shops are licensed and have a special set of laws to protect themselves and the community at large.
Nuckols said his staff carefully screens customers and the products taken in exchange for its short-term loans.
“For example, there are various steps and precautions we take to help prevent us from accepting — and unwittingly selling stolen items,” Nuckols said. “We provide a copy of every pawn ticket to both the local police department and the information also goes into a national database, allowing law enforcement agencies across the country to verify the status of a particular item.”
Patty Carter is one local resident who freely admits to having used the pawn shop’s loan service.
“I’ve been going to pawn stores for years and they were there for me when I needed them,” said Carter, a team leader who works locally for Goodwill Industries. “They’re always real fair with their prices and even willing to work on their prices.”
Carter said she too has noticed business at area Goodwill stores has increased over the past few months.
“I’m seeing a lot of people coming in for things like video games and with the economy the way it is, I don’t blame them,” she said. “I go to the pawn store at least once a month and hit other thrift stores in the area. People tend to think people at thrift stores are poor or in a low-income bracket, but everyone in town wants a good bargain.”
Another cost-conscious consumer is Nancy Howard of New Braunfels.
“We’ve shopped around at other pawn stores in San Antonio, especially at Christmas, but generally we like to stay local — my girls like jewelry and I go because I feel I can always get a real good bargain,” Howard said. “But, we’ve bought things that we strictly needed like lawn mowers and tillers, too.”
Upton said electronics tend to be a perennial favorite when customers come in looking for a gift, especially when searching for the latest in items such as computers, camcorders, cameras, iPods and video game systems.
“It’s amazing to watch customers come in with a traditional gift like this in mind and then see something that’s so different or unusual they can’t resist it,” he said. “It is perhaps not the most conventional way to shop, but it is by far one of the most entertaining and interesting.
“And in a world where waste and overspending are top of mind, a pawn shop gift purchase just makes people feel good.”
