Sam Shocket is the President of King’s Jewelry & Loan, North America’s largest jewelry-only pawnbroker.
Sam is an innovative leader with a reputation for excellence, known for being transparent in sharing lessons that he’s learned along the way.
When asked about specific ways that pawnshops could emulate his success to grow their loan balance, he happily shares a long list of tactics. In the end, for King’s Jewelry & Loan, it boils down to a customer-centric approach to finding a plan for every client that gives them the best opportunity to meet their needs.
We’ve narrowed his recommendations for growing your loan balance into this QUICK list.
Q-U-I-C-K LIST OF SUCCESS STRATEGIES FROM SAM SHOCKETT:
Q – QUALIFY EVERY TRANSACTION
• Always tell a Client the highest loan that can be offered on an item during the loan process (even when the client asks for less). In this way, they’ll know where you stand if they shop around other pawnshops in the area without assuming that your offer was as high as you were able to go.
• If the client needs more money than you’re able to lend on an item, ask them what else they have, letting them know you want to work with them to get them the money they need
• No walking of any loan without a second and even a third-person turnover. Write down every loan turn down, document the amount requested, the offer given, and reason for not making the loan.
U – UNDERSTAND THE CUSTOMER’S PERSPECTIVE
• Many of your customers, even with long histories, don’t know all of their options. Be sure that your team explains every opportunity to them, including the ability to extend the loan rather than paying it off.
• Be respectful of the attachment that the client has to their collateral.
• Offer overdue clients the opportunity to bring in additional collateral to cover the interest due.
I – IMPROVE THE CUSTOMER EXPERIENCE
• Lengthen the days and hours you’re open and consider perks like a 24-hour walk-up window.
• Allow interest, renewal, and layaway payments online.
• Offer rewards and refer-a-friend programs.
C – CAPTURE OFTEN OVER-LOOKED OPPORTUNITIES
• Bump up loans for clients who have a strong client history
• Loan at more competitive interest rates whenever possible, including new client rates, special interest rates for particular merchandise, etc.
• Partner with businesses that have the same target audience as you and consider co-op advertising relationships (divorce attorneys, bail bondsmen, check cashiers, bill pay companies, etc.).
K – KEEP YOUR PAWNSHOP TOP OF MIND
• Send cards and letters, particularly on birthdays and anniversaries
to clients, and include special offers.
• Be generous with giveaways, branded merchandise, special events,
and community partnerships.
• Encourage your clients to review
you online and tag you in their social media profiles.