I want to talk to you guys about one of the biggest mistakes that I see in the pawn industry. It’s not just the pawn industry it’s also in retail. Let me tell you what it is, it’s promoting a pawn broker to become a manager.
For some reason, and I made this mistake when I owned my shops, we feel like the person who’s on the counter is doing the most pawn loans, the most sales, the most layaway’s, we should pull them out and make them management. Make them lead a team of people, make them orchestrate our business, make them organize what needs to happen on a daily basis but the truth is that not every one’s cut out to lead, not every one’s cut out to manage. Some people honestly don’t want to do that, they enjoy pawn broking so much or sales so much that they don’t want to sit there behind a desk orchestrating, looking at reports, making sure that everything’s going well.
Now, one job isn’t more important then the other, don’t get me wrong, you need an incredible manager. You need an incredible pawn broker, SLA or sales person, whatever you call them in your shops, but don’t for one second believe that because you have an incredible pawn broker they will an incredible leader or manager, especially with no training. That’s not training coming from you, that’s specialized training. Specialized training in communication in organization, in HR, in how to lead teams, reading books about management skills and leadership, and people and psychology so that they get to the point that they know how people work, how teams work and what they need to do to make your store successful.
Now on the other hand, if you’re a manager listening to this and you think just because you were a great pawn broker you’re a great manager, you are wrong.
Now there’s some exceptions to the rule always. If you’re not reading books on management and leadership, and organizing business and marketing and sales, if you’re not reading books on influence and psychology, if you’re not taking a course, and there’s so many courses, Udemy has courses and I think even Harvard Business School has free courses online, to freshen up your skills on management, on leading people, then you’re not doing a good job. You think you might be but you’re not.
I think as store owners we get nervous to hire somebody on the outside who doesn’t know the business, that our business is so special but there’s some incredible managers out there in retail who if you just bring them in and train them a little bit on what pawn broking is and how to become a pawn broker there would be incredible managers in your store.
So stop. If you keep promoting from within, people who don’t deserve to become management or who just shouldn’t be managers, who aren’t fit for that, right? I mean, I had … I remember one of our employees, we made her assistant manager. I’ll never forget this.
We made her assistant manager and things weren’t working out well, it was okay, until one day she came to us and said, “You know what guys, I quit.” We’re like, “Wait a second. You’ve been with the company for eight years. Why would you quit?” She told us, she said that this isn’t what she wants to do. So we asked her, “Well, what if we just brought you back down to doing pawn and sales?” Her answer, “I’ll stay with pleasure because that’s what I love to do.” She’s like, “I don’t want the extra responsibility. I don’t want the extra management. I just don’t want it.”
But if you believe that somebody deserves it, then spend the money. I’m going to say this again. Pawn brokers, spend the money to train your people. Spend the money to sign them up for a group like The Pawn Leaders Alliance. Spend the money to get them a program like EntreLeadership Leadership or any management course in your city because for some reason pawn brokers believe that it’s not worth the investment. Yet, they’re hoarding jewelry and merchandise that sits there and they’re wondering why, you are wondering why, your stores aren’t doing as well as you think they could.
It’s your fault. It’s your fault because you’re not spending the money to train your people. You’re not spending the money to give them what they need, right? The right tools, the right weapons, to manage your store and create an incredible culture, and make sales and marketing, and all these things work together because all you keep on saying is, “Aw, it’s too expensive. Aw, it’s too much money,” or you don’t believe in it.
If you’re going to bring up a manager from your store and you haven’t sent them on some type of training, stop. If you’re going to promote somebody from within to run your stores and you haven’t given them a, just a, like a disc test or a personality test, stop. It’s not fair to them to have that expectation. It’s not fair to you to think that they’re going to be incredible if they haven’t been trained.
So with that I’ll leave you this weekend and I hope you listen to this a couple of times because one … This is one of the most important Five Minute Fridays I’ve done it, I’ve gone over my five minutes and that’s okay with me.
We are not growing the pawn industry because we’re throwing people into these positions thinking that they know what to do but we don’t even know what we want them to do. We can’t even give them the skills to run our shops. We’re just saying to, “Manage my store. Run my store. Why isn’t my pawn increasing? Why aren’t my sale increasing?” But we’re not giving them the tools that they need so they can do the work.
If you have a manager that’s with you right now, five years, six years, seven years, eight years, I don’t care if its been six months, let’s have a conversation about how to train them so that they can become better. Let’s have a conversation about what you can find in your city, how they can join the Pawn Leaders to become better managers or just taking a course online that can help them out just that much more. If you aren’t making the lives of your employees better, you have no right to ask them to make your store better.
I’ll say this again. If you aren’t helping to make the lives of your team better, you have no right to ask them to make your store better.
With that I’ll leave you. Let’s have a conversation about this in the Pawn Leaders podcast community on Facebook. If you’re not part of it jump in, it’s free. We have incredible conversation’s in there. If you want to have a conversation with me, a strategy call, a complimentary strategy call, I charge nothing for this I just want to help you out with where you are. Go to PawnLeaders.com and schedule a call with me.
But please stop making this mistake, I beg you.
We keep on wondering why the pawn industry doesn’t have good talent, it’s because we are not training and we’re not giving people the method to become incredible talent so that they can stay in a business for a long time.