Yigal Adato: 00:04 Hey everyone, my name is Yigal Adato and this is the Pawn Leaders Podcast, a podcast to help you make more money, stress less, and live an epic life while working at the pawn shop. Hey Pawn Leaders welcome to an episode of five minute Friday. Five Minute Fridays are just five minutes of something that happened in my coaching or a phone call that I had that I wanted to give some value to you guys. So, today's five minute Friday is about hoarding. I don't know why so many pawnbrokers feel like it's a necessity to hoard inventory. I got off the phone with a client today where they're hoarding so much more than they're selling and their pricing stuff so much more expensive than they actually need to. You guys are sitting on cash and pawnbrokers all the time or complaining about, Oh, I don't have cash, I can't pay my payroll, but when you look at it, you have inventory. We're not in the business of having inventory. We should be in the business of turning inventory over time, after time, after time. See, because the more you hoard inventory, it costs you. It devaluates every time you sit there month after month holding it, the electronics, they devaluate, if you're sitting on an iPad, eight months later, another iPad comes out and you've devaluated your item now, gold if it's just going to sit there, it might increase in value of the gold price, but you're devaluated because you're not turning that over and lending it to somebody making interest.
Yigal Adato: 01:56 So what can you do to stop hoarding merchandise? The first thing is you can have a sale, make one big sale and have a goal to raise $25,000 in cash, however amount of inventory that takes you to do, but hoarding also takes your space and your storage facilities, in the back rooms it annoys the heck out of your employees who have to sit there and continuously reorganizing the storage room and moving stuff here and there just to make something fit, stop taking stuff that you can't sell. That's another way to stop hoarding. If you can't move it, don't take it. I believe in becoming resourceful to take an item, but if you just can't move artwork, don't buy artwork. We hold onto merchandise as if it has an emotional value to us. We get angry at customers when they try to low ball us on the price, but if you think about it on the flip side, when somebody walks into our store, we're trying to get at the best price as well. It's Chris Voss said on his episode of the Pawn Leaders, be empathetic, let the merchandise go, melted. Get that cash, put it in a 401k. You know, invest in some property.
Yigal Adato: 03:25 You sit at a hoarding the merchandise over and over year after year, and all that's going to happen is it's going to become an inventory hassle, so now you're spending more time to try to take inventory. You're spending more time paying employees to organize and do inventory and you're sitting here cash strapped. Now, for those of you who are in cash strapped, what about making an investment with that money? Buy some property, put in an account where it can go to your kids and makes it a money market account. Whatever I know that you're saying that, oh, we make so much more interest. Yeah, but if it just sits there, it's going to dwindle away. It's hard to walk into stores where you see items that are four or five years old at prices are just exuberant. Ladies and gentlemen, get rid of the stuff, sell it, make money on it, but stop hoarding the merchandise because all it does is it affects you as a leader and affects your team, affects your bottom line. So with that, I'll leave you guys. Thanks for
Yigal Adato: 04:39 joining me for a five minute Friday here on the Pawn Leaders podcasts and remember to check us out on Facebook on the Pawn Leaders Podcast Community. And if you're ready to take your pawnshop to different level when it comes to leadership. Check out pawnleaders.com and I'll see you guys in the next episode. Take care.
Do not hoard inventory.
Many pawnbrokers are hoarding more than they are selling and therefore overpricing items in their store. Inventory should be turned over to get good money on valuable items.
Stop hoarding merchandise by:
- Having a sale
- Rejecting items that you cannot sell
- Investing in property or things that can be beneficial to you in the future
“Stop hoarding merchandise. It affects you as a leader, it affects your team and it affects your bottom-line.”