Posts

The ‘lumpy incomes’ of the rich

/in ,
the last egg

the last egg

A little late — and a lot more illiterate than the predecessors — Barron’s comes to note the arrival of Suttons & Robertsons pawn shop for the rich in Manhattan. Kamaaina Loan blog has already noted the incursion of the newcomer a month ago based on reports in the New York Times and other publications.

In some ways, the Barron’s report is better. It points out that while S&R can claim to have been in business for 250 years, it is really a new enterprise, having been taken over by a much younger, bigger firm with dreams of globalizing a local brand, sort of like what happened to Krispy Kreme donuts, although no doubt DFC Global hopes not to repeat that fiasco.

We like DFC chief Jeffrey Weiss’s characterization of his target customers as people with “lumpy incomes” and intend to steal that. Most of our customers are rather less rich than his but the conundrum of lumpy incomes is just as pressing. On Maui, with the visitor industry pulsing through peaks and bottoms and sides and saddles, lots of working people find  that — just like investment bankers waiting for the year-end bonus — the bills arrive before the money does.

Another interesting factoid — of no obvious relevance to us in Maui, though — is that while the uber-rich keep about 9.5% of their richness in tangible things (Aston-Martins, spare houses), that rises to 18% in places like the United Arab Emirates, Saudi Arabia and China. It helps to have a handkerchief full of jewels you can stuff in your pocket when fleeing the revolution.

Pawnbrokers and second-hand dealers made a good thing out of the Russian Revolution, as the exiled aristocrats unloaded their Faberge eggs, jewel-encrusted ikons and silver-gilt tea services in Paris, London and New York. A La Vieille Russie (To Old Russia) moved from Kiev to Paris about 1920 and opened a branch in New York in 1934.

It’s still there, across the street from the Plaza, and as late as about 1970, you could still buy the sweat of Russian serfs, once removed; although after three generations the plunder of the oppressed had finally been processed through the digestive organs of the capitalist snake, and the last time we were at A La Vieille Russie, it was reduced to selling reproductions of Georgian furniture and there wasn’t an ikon in the joint. (There are some rather pitiful-looking ikons, no jewels, in their online store at www.alvr.com; but the goose that laid the Faberge eggs is just about dead.)

The article is in Barron’s “Pentadaily,” which is described as “Insights and advice for families with assets of $5 million or more.” It’s a shame Pentadaily cannot afford any copy editors.

We are considering adopting a slogan for the Kamaaina Loan blog. Maybe:

“Insights and advice for families with assets of hard work, lots of children and an Hawaiian heirloom bracelet or two.”

 

Pawnbroker heads for paradise

/in

From the headline

West coast pawnshop owner moving to Paradise

we thought we were going to get some more competition for our Maui pawn shop. But no. Newfoundlander Rod Lyver is just moving across the island to a town called Paradise. But it’s still in Newfoundland, where it’s cold!

Kidding aside, Rod’s story is inspiring, how a kid struck a deal with a local merchant to take over some unsold stuff, turned a slight ($32) profit and took off from there to create a successful small business.

Attaboy, Rod!

 

 

 

 

Snakes

/in

We like to say you should check into our Maui pawn shop frequently, because you never know what you will find. Neither, of course, do we, until we have it.

Like this snake deity:

snakes

Redeeming a pawn the hard way

/in

So last week, we noticed a story from Nampa, Idaho, about police catching a burglar cutting through the roof of a local pawn shop. Nothing that unusual.

But now we find that he was a carefully focused burglar.  According to Kotaku website, he just wanted his Xbox back. If he didn’t have the money to redeem it, he could always have extended the loan, which no doubt would have been cheaper than what he’s going to pay now.

Why he was armed with an AR-15 is yet unexplained.

 

Being ‘female friendly’

/in ,

We have been in pawn shops that do look kind of like a man cave, but we think this story in the Tampa Tribune overstates the novelty of Lauren Myhre’s “female friendly” She Money shop.

Most pawn shops, including our Maui pawn shop, have something like a 50-50 split of men and women customers, if not an absolute majority of women. After all, most pawn customers are working people, and women are in the work force in equal numbers with men.

Still, it couldn’t hurt to cater to half your audience, and Myhre has gone extra steps:

Like most any pawn shop, She Money takes gold, silver and diamond jewelry, but the store accepts high-end costume jewelry, too. Most women don’t have the tools and other items that are staples of the typical pawn shop, but Myhre saw the genuine value in other items they do possess.

“Women don’t always have jewelry to pawn or sell,” Myhre said. “I take a lot of crystal, such as Waterford or Tiffany crystal, as well as designer handbags and sunglasses, figurines, hand-carved wooden pieces, art, sterling silver, pieces of fine furniture, high-end lamps, musical instruments and even high-end cars.”

 

At Kamaaina Loan, we take most of those things, too, without specially considering ourselves “female friendly.”  Cars are an exception as Hawaii law restricts that, but our retail store has sun glasses, art, designer handbags. Not many lamps, perhaps.

A lot of what any pawn shop accepts as collateral (or will purchase) is unisex. Game systems are an obvious example. We probably get as many Xboxes and Playstations from women as from men, and, in fact, a lot from moms accompanied by their children.

 

Want to visit ‘Pawn Stars’?

/in

Get in line. This tip from Examiner.com says 4,000 people a day go through the famous Gold and Silver Pawn Shop in Las Vegas.

Pro: It’s free.

Con: There is usually a line.

Helpful hint: There’s a 24-hour drive-through window.

Seth Gold on pawnbroking and teevee

/in

Hard Core Pawn’s Seth Gold gave an interview to the National Pawnbrokers Association in which he talks about how he was headed for a career in medicine, in part because he had picked up the negative attitudes toward pawnbroking that were — and still are — so common, even growing up in a pawnbroking family.

But he got — sidetracked hardly seems the right word — back on the family track and ended up in the family business anyway.

Seth Gold at work

Seth Gold at work

He praises the effect of the show on himself and on the pawn  business in general:

Another source of pride for me that stems from our roles as pawnbroking personalities is that visiting a pawn store is now cool. There are so many negative stereotypes surrounding the industry that have been dispelled thanks to reality shows such as ours. When people see our store on television every week, they are not only entertained, but also become open and aware to situations where they themselves might choose to visit their local pawn store.

Hard Core Pawn is an unreal reality show in one sense, at least. The Golds are well-known in the pawn business, and are really sweethearts. All that drama on the screen; that’s Hollywood.

(We are Kamaaina Loan are aware our local readers may not be familiar with Hard Core Pawn, unless they get it via satellite or internet, as Oceanic doesn’t favor it. But the show has the Golds arguing amongst themselves all the time. That’s scripted for them. In real life they get along.)

More teevee pawn

/in

Why not us?

As you may know, Kamaaina Loan shot some trial scenes for a pawn shop reality show. You may even have helped us by bringing in your strange items. While not entirely dead, that one hasn’t been picked up by a producer yet.

Yet another pawn reality show debuted over the holidays, called Game of Pawns, shot in Branson, Missouri.

What caught our attention was not the new wrinkle — it’s a combination of a pawn reality show and a game show —  but its location in a tourist mecca.

With the notable exception of Hard Core Pawn set in Detroit, it seems most of the leading pawn reality shows are in tourist towns — Las Vegas, Beverly Hills, now Branson. What more touristy place to have another than Maui?

We’re ready for our screen test, Mr. DeMille.

On the other hand, according to this other story about the big dog among pawn shows, Pawn Stars, being a pawn star brings with it its own problems:

“Their life has completely changed because of this show,” Mason said. “They used to be just guys working in a pawn shop – now they’re celebrities.”

Now, when they’re taping the show, they have restrictions on who can come in, because they’d never be able to get anything done otherwise. But the extras you see in the background are picked out of the actual crowd.

So if you go, you could be in the background on the show, but they’ll make you sign a waiver and instruct you not to walk around staring into the camera.

 

What was he thinking?

/in

From Albuquerque, a short piece about how pawn brokers and police interact to catch bad guys.

There’s something new here. We have often cautioned that pawn shops are bad places to sell stolen goods, since we take your name, address, phone number, driver’s license and thumb print; plus each transaction is videotaped.

To heck with Sherlock Holmes examining footprints in the snow.

But, in Albuquerque, there was one thief who pressed his luck even further. If you watch the report, it says  a regular customer at University Pawn snatched a tray of chains and ran out. Then went to a different pawn shop to sell them.

What was he thinking?

The KOAT report mentions a pawn shop network that tracks thefts in Albuquerque and also gives the example of a woman whose ring was stolen who emailed pictures to every pawn shop, resulting in a recovery.

First, you have to have a picture available to email. Second, on Maui, you can use mystolengoods.com, Kamaaina Loan’s exclusive website where crime victims can post information about their losses. That simultaneously alerts both our pawnbrokers and the Maui police, and provides descriptions.

The irony here is that we make it as easy as possible to alert us, and we (helped along by state reporting laws) make it as hard as possible for thieves to fence at pawn shops in general and our Maui pawn shop in particular. Well, that makes it less likely, on the whole, that a recovery will be made through our shop.

 

 

 

Class acts

/in ,

A repeated theme here at Kamaaina Loan blog has been the turnaround in the attitude toward pawn shops in the press, probably due to reality teevee more than anything else.

Over the weekend, a kind of milestone in this process occurred when the New York Times published an admiring piece about pawn shops for rich East Siders, based on a 250-year0-old English pawn shop’s first branch in Manhattan. Not only that, although the story was in the “Wealth Matters” section, far inside the bulky newsprint version of the Sunday Times, for a brief time today, the story was on the front page of the Times’ internet edition, until it was pushed off by fresh Chris Christie scandals.

Their fancy East Side store

Their fancy East Side store

Now, as a pawn shop, we are happy to have the Times look upon pawn shops as public-spirited businesses, or at least as public-spirited as the big banks the paper writes about all the time. But we do have a couple of comments.

First, the Times is about a year late on this story. Reports about pawning by the rich have been common fare on such sites as CNN for a long time now. Second, the Times may have been late, but its reporting (by Paul Sullivan) was superior:

The high-end portion of the industry is betting that with comparatively lower pawn rates and an ability to fulfill even large loan requests in a day or two, it will be able to build its business on happy repeat customers. Paul Aitken, founder and chief executive of Borro, said he attributed repeat business to the human desire to spend today without thinking about tomorrow.

“Entrepreneurial people like to do things on the spur of the moment, and they’re probably not the best planners,” he said. “When they have money in their pocket, they like to buy luxury goods. When they don’t, they like to use those goods to get money for their next venture.”

And that is how he ends up taking a Mercedes McLaren in as collateral for a loan.

That’s an aspect — we are not necessarilu endorsing it — we haven’t seen in numerous other stories about high-end pawn.

Third, high-end pawn is not, as Sullivan’s story implies, something that arose when banks tightened credit following the Panic of 2008. It’s been part of the business all along. It has probably extended its catchment area since 2008.

Our Wailuku pawn shop. We have a fish.

Our Wailuku pawn shop. We have a fish.

Fourth, while our pawn shop at 96 N. Market St. is not as flossy as Suttons & Robertsons Upper East Side shop, our Private Viewing Room is just as swank as S&R’s, what with its Chinese antiques and paneling. And — something S&R does not seem to have — its private entrance, for those rich borrowers who don’t want the neighbors to know they are pawning the McLaren. (Actually, in Hawaii law pawn shops cannot make loans on McLarens, but you get the concept.)

private

Fifth, the bottom line is, as always with pawn loans, would you rather be turned down by a banker or accepted by a pawn broker. Because pawn brokers lend on collateral, and the extra scrutiny that has scared bankers into holding onto their money means nothing to us. Gold is gold, a diamond is a diamond, a Rolex is a Rolex, whether the stock market is booming or crashing.