How to open a pawnshop - registration and registration

Those who want to earn money without large investments should choose the simplest and most understandable business possible, such as opening a pawnshop.

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Pawnshop as a business

In recent years, more and more pawnshops have appeared in Russia. This is quite normal, because this area of ​​​​business allows you to earn a lot of money in a relatively short period of time.

In the case of a pawnshop, you can do without guarantors and a credit history. If a client pawns an expensive item at a pawnshop, it may not be returned if he does not pay on time. Then there will be no collectors, lawsuits, and so on. This is a profitable and profitable type of business that can be recommended to both experienced businessmen and novice entrepreneurs.

Business Features

The pawnshop business in Russia is in the development stage, so the niche still remains quite free and is filled by about a third of the total market need. At the same time, the saturation can vary quite significantly: in some cities there is already an oversupply, while in others there is a complete absence of pawnshop outlets.

The profitability of financial institutions of this type can reach 35–40%, which is an excellent indicator for beginning entrepreneurs. However, the success of such a business is influenced by too many factors that must be taken into account at the start. The main ones are:

• correct location - the place should not just be crowded, but with a high traffic volume of potential customers;
• availability of rent - in the most advantageous locations, the rent for premises may be too high, which will not allow you to quickly recoup the investment and make a good profit;
• effectiveness of advertising tools - an advertising campaign should be aimed at attracting the target audience, taking into account its interests;
• presence of competitive advantages - if there are already pawn shops nearby, then you need to analyze their activities and offer customers more favorable conditions;
• competently selected personnel - appraisers must have experience and high qualifications, at the same time be able to communicate with visitors and avoid dishonesty in their work.

The greatest difficulties in the pawnshop business usually occur in the first 6 months after the start of activity, when the break-even point has not yet been passed, and there are not yet enough clients. It is during this period that every third of the newly opened pawnshops closes. And only those who survive begin to gradually increase their turnover, and after 1.5–2 years they are already making a profit of at least 100 thousand rubles monthly.

How much does it cost to open a pawnshop?

In order to organize a pawnshop, you do not have to hire a large number of employees. You also won’t need a large amount of complex technical equipment, but to open a pawnshop you will have to study this area of ​​business thoroughly.

Pawnshops can accept both jewelry and furs, genuine leather, mobile phones, household appliances and even cars. In this case, you will have to find approximately 1 million rubles to open it.

Types of pawnshops

There are several types of pawnshops specializing in:

• accepting various types of equipment as collateral;
• accepting jewelry, jewelry, 500-carat gold and other valuable metals as collateral. A jewelry pawnshop does not require additional storage space for items. However, it may take a lot of time to resolve the legal aspects and collect the necessary documentation;
• antique products, accepted on a very good deposit. Visitors bring paintings, awards, ancient souvenirs and coins here. They can also accept expensive clothes made from natural fur (mink, lynx, chinchilla, arctic fox, etc.). This pawnshop is a favorite place for many collectors;
• issuing a certain amount of money as collateral for a car. In order to open a car pawn shop, you will need additional parking area. However, the income from operating such an establishment can be quite good.

What do you need to open a pawnshop?

In order to operate legally, all bureaucratic issues will have to be resolved. A pawnshop can be registered as a legal entity. It can be either an LLC or a CJSC.

A businessman should know that a pawnshop has the right to issue funds on bail. Selling pawned items is not allowed. However, such a work scheme is unlikely to bring in a lot of money. Therefore, most often a consignment store is opened next to the pawnshop. Then you can also register an individual entrepreneur.

You will not need to obtain any licenses, but you will have to go through a simple registration procedure with Rosfinmonitoring. If this is not done, then any check can cause numerous problems.

A pawnshop can be registered no later than a month after registering an LLC or CJSC. To do this, you need to contact Rosfinmonitoring and submit an application for registration. This application can be made in any form. Before this, you will have to fill out and then notarize (by a notary) form 2-KPU.

When this is done, you must register with the Assay Office if the pawnshop will accept jewelry with precious stones. This also applies to any other products made from precious metals.

Legal features of a pawnshop

Registration of a legal entity to open a pawnshop is the same as for any other limited liability company, but there are still some nuances.

1. The company name of the pawnshop must indicate the word “pawnshop” and its organizational and legal form. For example, like this: “Limited liability company Pawnshop “Golden Key”.

2. A pawnshop cannot be registered in an apartment. The law requires not only the creation of special conditions at the legal address for the storage and security of the surrendered property, but also the absence of other things not related to this business in the pawnshop.

3. A pawnshop has access to only three types of business activities, specified in the Law “On Pawnshops” No. 196-FZ:

• provision of short-term loans to citizens (OKVED code 64.92.6: Activities for provision of short-term loans by pawnshops secured by movable property);
• storage of things (OKVED code 66.19.5: Provision of services for the storage of valuables, depository activities);
• consulting and information services (OKVED code 70.22: Consulting on commercial activities and management).

4. The pawnshop has no right to dispose of and use the pawned items. Pledged property that is not redeemed on time must be sold at public auction. This condition is mandatory for items costing more than 30,000 rubles. A pawnshop can sell less valuable items both through auctions and through other channels. In particular, you can open a consignment store to transfer pledged items for sale, but for this you need to register another LLC or individual entrepreneur.

5. The founder or participant of a pawnshop cannot be an individual who has an unexpunged (unexpunged) conviction for an economic crime or a crime against government.

6. The minimum authorized capital for a pawnshop in 2020 remained at 10,000 rubles, although bills were introduced proposing to increase it to 50 million rubles.

7. The law does not establish special requirements for premises specifically for a pawnshop, but the conditions of the so-called guiding document of the Ministry of Internal Affairs of the Russian Federation (RD 78.36.003-2002) must be observed. Without this, the security organization will not issue a certificate of compliance of the premises for pawnshop activities.

8. A license is not required for a pawnshop, but the organization will be under the constant control of Rosfinmonitoring, the Central Bank of the Russian Federation and the Assay Office, where you must register.

Market analysis

First you need to study this market in the city as carefully as possible. It won't hurt to find out about your competitors. If it turns out that there are too many of them, then you will have to wait to open a business. Studying competitors is a separate topic that requires a lot of attention. You should find out about their location and operating hours. You also need to find out exactly what items they accept.

If it turns out that there are few establishments in the city that accept electronics, then it is quite logical to open a pawnshop specializing specifically in electronics. Determining the specialization of your own pawnshop can take a lot of time, but this is the best option in order to get maximum profit in the future.

Features of taxation

Many novice entrepreneurs abandon their idea almost immediately and switch to something simpler, having learned the sequence of actions in what is required during registration and how many authorities need to go through. The process can indeed take a lot of time and nerve cells, but with the right approach it is worth it. In addition to delving into the niche and understanding the sequence of organizational work, it is important to determine the nuances of taxation. Future net profit will also significantly depend on it.

In accordance with the Tax Code, the general tax system applies to pawnshops, but interest received from the issuance of a loan is not subject to tax by law. That is, you will have to pay the Federal Tax Service only for appraised items that are pledged as collateral.

You will need to keep constant accounting records, and most likely you will need outside help with opening a pawnshop.

You will need to report to the state for your activities:

• Rosfinmonitoring - once a year to the SDL department and every quarter, submission of the FES-04 report;
• To the Central Bank of the Russian Federation - once a year regarding the composition of management, every quarter directly about activities and every month about monetary transactions.

Choosing a name

The choice of name deserves special attention. Only in this case can you count on the gradual development of your business. A pawnshop with a memorable name will be recommended to their friends and acquaintances. How to choose a name?

It is not recommended to choose a name for a pawn shop that is too long. No one will remember such a name, and the high cost of making a sign can be a serious argument in favor of abandoning this idea. It is best to come up with a name consisting of several words. One of these words should be “pawnshop”.

Even while studying all your competitors, you should pay close attention to them. It is not recommended to repeat other people's names, because in the future this may cause all sorts of problems.

It wouldn’t hurt to do at least a little research into the options you come up with. This will be enough to decide on the most suitable name for the establishment. To do this, you can offer various options for the name of the pawnshop to your friends and acquaintances, and then choose the option that received the most votes.

Choosing the right location

Rules on how to open a pawnshop and step-by-step instructions are unlikely to help you decide on the location. In them you can only find requirements for the premises itself, so as not to have problems with permits from the SES and fire inspection.

The flow of customers and your future turnover also depend on whether the location is chosen correctly. The more profitable your position is, the faster the business will pay for itself. Therefore, pay special attention to the search and what is needed for this. The best way to open your own pawnshop is:

• In a room that is in a crowded place;
• On the ground floor of a building or in the basement (allowed);
• In an area that is densely populated;
• In a place that is easy to get to and clearly visible from the street.

Business plan for a pawnshop for the first month of operation (in a small town)

Spending plan:

With an income plan, everything is much more complicated. If the interest rate reaches 1% per day, then you can achieve payback after just a year of work. Everything is calculated individually, so you need to focus on your own calculations and the financial indicators of competitors in the city.

Step-by-step instruction

The first thing you should do at the opening planning stage is to study the market for these services. A businessman should:

• carefully calculate the risks, costs of opening and organizing an enterprise;
• find out how popular pawnshops are in a particular locality and region;
• is there competition, can he offer clients more favorable conditions than competitors.

If preliminary economic calculations suit the entrepreneur, the enterprise should be registered with the official bodies:

1. Register with the tax office as an LLC, indicating the relevant OKVED 65.22.6., 74.14., 67.13.5.
2. Register the pawnshop within thirty days from the date of registration with the Assay Office and Rosfinmonitoring.
3. Insure the accepted items in favor of the pledgors with the selected company providing these services. It is advisable to take out insurance for any amount so that you do not have to insure each item separately.

Selection and preparation of premises

The choice of location should be approached responsibly: a considerable share of success depends on the location. So, the best place for a pawnshop would be a shopping center or a separate premises located in areas with high customer traffic. It is very good if there is a parking lot next to the pawnshop you are opening, and the premises itself will be close to busy public transport stops.

A pawnshop does not need expensive, elite furnishings—it is enough to place good-quality chairs and a table in the customer area, as well as equip a work area. But you should not neglect security - you should install:

• alarm and panic button for quickly calling security;
• metal bars on the windows, where the work and client areas are separated;
• metal doors;
• bulletproof glass;
• video surveillance system.

The set of equipment for work will depend entirely on the preferences of the entrepreneur and the type of pawnshop, but in any case you will need:

• office equipment - printer, computer with licensed software, high-quality Internet, telephone;
• special equipment - to determine the authenticity of products, high-precision weighing equipment, etc.;
• trade equipment - racks, counters, information boards, display cases, tables and chairs for staff and visitors.

In order for as many clients as possible to know about the pawnshop, you should not spare money on advertising. First of all, you need to come up with a name for the pawnshop - it should be sonorous, memorable, and not too long. Then you should order an eye-catching sign that will indicate the name and operating hours.

It would be a good idea to order advertising in the media, hire promoters to distribute leaflets, and organize enterprise groups on social networks. An excellent solution is to hold a promotion on opening days, for example: “For first clients, the interest rate is halved!”

Hiring staff

To organize the work of a small pawnshop, a minimum staff consisting of qualified and certified workers is sufficient:

• manager;
• appraiser;
• security guard;
• accountant;
• merchandising specialist

Often the functions of several employees are assigned to one employee, but this is best done only if the pawnshop is small, otherwise the employee will not be able to cope with all the responsibilities.

Business plan

When drawing up a business plan, the most important thing is to calculate all costs and estimated profitability and profit. Thus, it is advisable to open a pawnshop whose profitability is at least 30%.

When writing a business plan, it is important to consider the initial costs:

• for documentation - 50,000 rubles;
• repair and equipment of the premises - 1,000,000;
• purchase of office equipment and equipment - from 300,000;
• advertising - 150,000.

Initial costs include funds intended for distribution to mortgagors (at least 9 million rubles) and money intended to finance activities until they become profitable (at least 2 million).

You should also take into account monthly costs, which include:

• payment of wages to employees - from RUB 300,000;
• rent - individually, depending on the location of the premises can vary from several hundred to several thousand rubles per square meter;
• hiring security - from 150,000 rubles;
• other expenses, tax deductions - from 200,000 rubles.

To calculate the profitability of a business, you should calculate what percentage the net profit of the revenue received will be. For example, with a million-dollar revenue, the profit is equal to 142,200 rubles, respectively, the profitability of the enterprise will be only 14.2%. In the first months of operation, such indicators are not low, but after 3-6 months they should at least double - this will mean that the pawnshop pays for itself and begins to make a profit.

Where to open a pawnshop

If we are talking about a relatively large city, then it is recommended to open an establishment in some residential area where a large number of residents live. This is due to the peculiarities of this field of activity. When people urgently need money, they will go to a pawnshop located somewhere nearby. This is the best option to receive money as quickly as possible. If it is a small city, then it would be wise to open an establishment somewhere in the center.

When choosing a specific location, you should focus on the following factors:

• Presence of competitors. It is recommended to choose places where there are no competitors.
• Passability is an equally important factor. If there are highways, shops and markets nearby, then the likelihood of achieving success will be much higher.

What you need to know about pawn shop franchises

The good thing about franchising is that even a novice entrepreneur who doesn’t thoroughly know how to open a pawnshop can do it with minimal risk, a ready-made advertising campaign and trust from potential clients. But you shouldn’t rush into buying a franchise; you need to be able to distinguish between a profitable offer and an obvious failure.

It is important to carefully study the franchisor’s performance, answering the following questions:

• How long has the organization been on the Russian market - if less than one year, look for other offers;
• At what rate is it developing?
• How efficiently the processes are running.

You should not buy a franchise if the copyright holder does not provide complete documentation for an easy start and does not provide comprehensive support to partners.

Premises requirements

In Russia, there are no special requirements for pawnshops. This means that it is possible to open such an establishment almost anywhere.

• It is recommended to give preference to detached buildings with one or two floors. This must be a non-residential property. It is also allowed to place a pawnshop on the ground floor of a residential building.
• Basements or semi-basements should be avoided. By placing a pawnshop in such a place, the reputation will leave much to be desired. This will immediately affect the flow of customers.
• Commercial real estate can be too expensive, so if it is not possible to purchase premises, you will have to rent it. Even 30 square meters is enough for this business.

What should a pawnshop premises look like?

From the point of view of legislation, the requirements for the premises of a pawnshop are that all conditions for the proper storage of things pledged are met. There are several general rules regarding preparing an object for a pawnshop:

• it is necessary to ensure the safety, absence of harmful effects and damage to the pledged items;
• it is necessary to exclude the possibility of unauthorized persons entering the storage room;
• the premises should be selected and equipped in such a way that it complies with the standards of the SES and State Fire Supervision;
• The security of the pawnshop should be ensured by concluding an agreement with a specialized enterprise.

From a commercial point of view, the best option for locating a pawnshop would be a premises located in a densely populated area or in a crowded place. At the same time, it is worth renting space on the first or ground floors of buildings with a convenient entrance.

For a small pawnshop, a room with an area of ​​40-50 square meters will be enough. m., divided into 2 main zones: for storing things and for customer service.

The storage place, let's call it a “warehouse,” should be equipped with racks, shelves, and a safe for jewelry. For the service area you will need to purchase office furniture, organizational units. equipment, a computer on which you will also need to install special software. Here you can organize the appraiser’s workplace and equip it with the necessary tools - scales, reagents, etc.

If there are no strict requirements regarding the premises and its equipment in the Federal Law “On Pawnshops”, then regarding the organization of the work process there are a number of specific rules that the founders should find out about in advance.

Employee selection

Depending on how highly qualified the pawnshop employees are, you can count on either success or failure. All things that clients bring need to be assessed. If any mistakes are made during the assessment, problems will not be avoided. For example, if your pawnshop will give out a substantial amount of money for fake jewelry, then there can be no talk of any success.

• To evaluate equipment, you will have to hire men who are well versed in how to carry out the evaluation procedure. They must have sufficiently broad knowledge and extensive practical experience.
• Girls are recruited to evaluate jewelry. To do this, you need to be able to determine the authenticity of the product and its weight.
• Even someone who has neither experience nor education can work at the cash register.

The total number of employees directly depends on the operating mode of the establishment. If the pawnshop operates around the clock, then it will not be possible to do without shifts.

How much does it cost and what will be the income?

Opening a pawnshop from scratch is a troublesome and very expensive business. The cost of organizing a business will directly depend on the type of establishment and the services it provides, the location (city, district, region, etc.) and a number of other factors. The rent for premises in the center of a metropolis is several times higher than the same rent for an office in a small provincial town.

from 1 to 1.8 million rubles to open an establishment . The period during which the business will fully pay off and begin to make a profit can be about 1-2 years. So, after a 3-year period, a small pawnshop can generate a profit of 100-150 thousand rubles .

The period from the opening day to the end of 6 months of operation of the establishment is especially important. This period of time can be called critical: funds have already been invested in opening and developing the business, but it has not yet turned into a plus. In order to make a profit, you need to achieve high daily traffic: on average, from 30 to 50 people per day. Otherwise, the establishment will continue to bring only losses. That is why, after six months from the date of opening, over 30% of pawnshops simply close.

How do pawnshops work and how do they make money?

In order to know how to competently open your own pawnshop,

you need to study the principle of its operation, where the profit comes from.

Pawnshops are organizations that issue loans secured by things. This could be jewelry, household appliances, cars, electronics, antiques and other valuables. Please note that real estate is not included in this list. Such activity is not legal. Only banks issue loans against real estate.

Pawnshops issue loans for a short period (up to 1 month) secured by things, for which they charge a percentage. The interest rate averages 10-12% (maximum 25%). In this case, taxes are paid for the safety of things, but interest is not taxed.

The specialization of the organization affects what requirements will be in the assessment and safety of things. If a pawnshop has a wide specialization and is engaged in issuing money for various equipment, cars, furs, then having sufficient space in the premises for their storage and compliance with all the requirements for the necessary conditions is mandatory. In such cases, you need to monitor the quality of the technology and its novelty. Otherwise, if they don’t come for the item, you may have problems selling it and you will lose money.

Basically, pawnshops try to earn income from interest, rather than from selling things. Ideally, the percentage of things that people didn’t come for is 7-10%. There is another option for earning money. This applies to issuing loans for jewelry. In this case, pawnshops make money on the difference in price. They buy jewelry at a low price and sell it at a higher price tag.

Pawnshop registration and insurance

Registration of a pawnshop occurs exclusively as an LLC. Step-by-step instructions for creating an enterprise include the following points:

1. You will need to register your pawnshop business with the Tax Office. There you can get more detailed information about the required documents.
2. Within 30 days after registration, your organization must be registered with RosFinMonitoring.
3. After this, your company must register with the Instrument Board. This requirement was decreed by the Ministry of Finance of the Russian Federation No. 68. According to this order, any enterprise whose activities are related to the turnover of jewelry must be registered.

After registering your business, you must insure the items that you accept as collateral from clients. According to the law, it is necessary to insure the client’s property offered as collateral at his own expense. It is strictly forbidden to force the client to insure his property on his own! In order not to separately insure each pledged item, you need insurance for a certain amount of money, which allows you to cover your obligations to clients.

An insider from a pawnshop: “There are fewer clients from the “shop”, more cultured, wealthy ones”

“The PSK is the same for all regions, although the average loan amount in Moscow and Saratov is very different” Photo: © Nina Zotina, RIA Novosti

About heroes and the difference between pawn shops and thrift stores

In Tatarstan, according to the register, there are now 52 pawnshops operating (excluding branches of the same LLC).
Their work is strictly regulated by the Central Bank. But, in addition to pawn shops, there are also thrift stores. Their records are not kept. According to the website 2gis.ru, there are about 100 of them in Kazan alone (including all branches). “Pawn shops are often confused with second-hand shops, but this is fundamentally wrong. We are not as scary and gray as we were 10–15 years ago,” says one of our insiders. The key difference is that pawnshops are required to store collateral, insure it and charge only the interest (PSC) dictated by the regulator.

PSK is the full cost of the loan; the Central Bank names it once a quarter, based on the results of the pawnshops’ reporting. It is taken from the average market rate of the top 100 pawnshops in Russia. “And here one very negative impact of large networks is manifested: over the past two years, this rate has been decreasing and decreasing,” says our hero. — Because of this, networks issue loans at a low interest rate and thus small pawn shops survive from the market. And they just go to thrift stores or close.”

The PSK is the same for all regions, although the average loan amount in Moscow and Saratov is very different. Now it is 142.350% per annum (about 11.8% per month). “Yes, it seems like a crazy number,” agrees the insider. But with 1.5 million rubles (the average pawnshop gives out this amount per month) it turns out to be 178 thousand. In fact, this is the income of the pawnshop. “But if you subtract the salary of an accountant, an appraiser, rent, and so on, then there is practically nothing left,” says the insider. And if you raise the rate higher, you will receive a fine of 500 thousand to 700 thousand rubles.

In this regard, it is simpler for consignment stores: they do not provide any reporting to the Central Bank and are not required to insure collateral. But this does not mean that their activities are not controlled: they are monitored by Rosfinmonitoring and the Assay Supervision Inspectorate (relevant for jewelry). Therefore, they, like pawn shops, must comply with the law on combating the financing of terrorism and money laundering. How does this happen? Each client is checked against a special list, which is updated once a week; transactions above 600 thousand rubles, for weapons of mass destruction and any other dubious transactions are checked.

To be called a pawnshop, you have to work a lot, complains one of our heroes. It happens that banks do not treat them very well - they simply refuse. “So they force them to work as second-hand workers,” says the pawnshop owner.

Our insiders come from both sides. One has been working in this field for more than 10 years and represents a federal network; the other is 20 years old, he has a network of pawnshops (some with stores), including in the regions of the Republic of Tatarstan. They talk about how the coronavirus has affected their industry and people's behavior, and expect an influx of clients.

“During the first three weeks of quarantine, the number of clients who want to hand over equipment and gold increased by 10–20 percent” Photo: © Natalya Seliverstova, RIA Novosti

About clients during self-isolation

Thrift stores:

• Customers are divided into two categories: those who sell and those who buy. There are more of the first ones, but so far this is not widespread - apparently, people still have some reserves. During the first three weeks of quarantine, the number of clients who want to hand over equipment and gold increased by 10–20 percent.
• There are much fewer buyers. This is not to say that there are no sales at all. They buy from us through online platforms, and there are resellers. But the total number of customers has decreased, and our income will naturally fall.
• Nowadays, sometimes we get calls from clients who have taken significant sums from us. Many people have great difficulties, and we make concessions to them and extend them. If someone was unable to bring the money, we give a significant delay. That is, we have an individual approach to everyone. We don’t have anything like this to specifically profit from this situation. We try not to lose our clients.

Pawnshops:

• The flow of clients since the beginning of self-isolation has decreased by 60–70%. This is due to the fact that some people are afraid to go out, and some do not have time to come due to the reduced opening hours. And in general, people’s expenses have decreased as they stay at home. In addition, in April people received their salaries for March and there is still money. But next month we expect a surge in clients. In other, less affluent regions, colleagues say the influx is already beginning.
• Now, if a product is being sold, we try to call customers before selling it for scrap. We ask if they plan to repurchase the product. If yes, then we individually agree on the timing and price. After all, if we simply sell all the products, we will no longer see these clients - they will have nothing to pawn.

“The more expensive we value gold, the more we will issue and the more interest we will receive” Photo: pixabay.com

On changing the principles of valuation and structure of goods

Thrift stores:

• Our output is very large, but there are not very many sales. Therefore, we reduced the estimate by 5–10 percent.
• The quality of equipment carried by people has not improved. But we used to take some things even though there was no demand for them. And now we take only what is really liquid. Because a lot of people use pawn shops in the modern situation. Now we need to try to somehow save money, and not engage in wastefulness.
• That is, we have become more selective in evaluating technology. Roughly speaking, if we used to buy an old hairdryer or an iron for at least 50 rubles, now we don’t buy such things.

Pawnshops:

• We left rates and prices at the same level. The only thing is that we stopped charging penalties for this entire period - for us this is approximately 10% of profit.
• We have now limited the acceptance of large equipment. We only accept phones and tools in perfect condition and try to work only with gold - it is always liquid and has no hidden defects.
• We have not reduced the price for accepting gold. Why take it cheaper if it is at the same level on the stock exchange, and there was even an increase in early April? The more expensive we value gold, the more we will issue the amount and the more interest we will receive.
• Those who are now reducing the price for accepting gold may not have established sales of scrap and are selling it for cash. This is, as a rule, 70–100 rubles per gram cheaper, and per kilogram it costs 100 thousand rubles. And we work directly with factories and receive money into our bank account, we have nothing to fear.
• In March, we issued an average of 9.7 thousand rubles, in April - 8.3 thousand rubles, this is more than last year. The picture regarding the redemption percentage is not yet clear; it will only be clear by mid-May.
• The clients themselves began to change two years ago. There are fewer clients from the “bench”, more cultured and more affluent. This can be seen both in the pledges and in appearance. In general, they bring everything - boots, sewing machines, and devices for soldering fiber optics. Everything that moves.

“When there was a “peak of restrictions,” we worked through the windows, but recently opened” Photo: Zuma\TASS

On organizing work during the period of self-isolation

Thrift stores:

• When there was the “peak of restrictions,” we worked through windows, but recently we opened: we have essential goods, and we also sell cellular communications, and cellular communication stores are open. But we try to comply with all measures. Almost 90% of orders are made online.
• There were no staff reductions. On the contrary, we are recruiting people - now there is such an opportunity, because stores selling household appliances have closed, many specialists have become vacant.
• Quite a lot of people go for interviews. I can’t say how much the percentage has increased, but in the office I constantly see people coming. Not much more than in the “pre-quarantine” time, but there are those willing.
• We are doing well with security. In general, there have been cases of raids on stores, but there have been no life-threatening robberies. And there have been no thefts recently. There are places where it is easier to commit theft than here: the cashier is completely protected, money cannot be stolen. And if a person wants to steal a phone, well, in our time this is the most thankless task.

Pawnshops:

• We continue to work because we have products and personal belongings of people, we cannot completely stop our activities. But some collateral had to be transported to a centralized facility and work on holidays - this is the recommendation of the Central Bank. We work through the window and online.
• We are not going to cut staff. We employ more than 10 people as appraisers and cashiers-custodians - not counting the accounting department, programmer and cleaners. We are not hiring new employees now, and there is no such need. Training employees is very labor-intensive (training is two to three months), and there are plenty of people willing to pawn a piece of metal instead of gold.
• During self-isolation, the Central Bank recommended that we not sell the collateral for three months. In general, at a pawnshop the maximum loan period is 30 days. But if a person comes back after 30 days and pays interest, then he is given another month, and so on indefinitely. Plus, another 30 days are given - this is the so-called grace period when penalties begin. And only then does the pledge take place. But many pawnshops (even large chain stores) issue a deposit for one day, thereby avoiding the grace period and calmly sell the deposit within a month. These recommendations are a big blow to the pawnshop’s pocket; the assets will simply hang.
• But they won’t hit us specifically, because we give all our clients a plus of two more weeks. That is, we keep the deposit for two and a half months. It happens that some clients come after three or four months and demand their collateral, although the loan term and sale date are clearly stated in the contract. We even outline the deadlines with a marker, but, as practice shows, when people see money, they sign everything without looking or listening. Sometimes they cry and make trouble.

What to expect after COVID-19

Thrift stores:

• It is still difficult to say how people will behave in the future. But still, I think that the number of clients will only increase. In our country, usually in the summer - when people go out of town, on vacation - the flow of people wishing to hand over things for consignment decreases. And in September, when everyone returns, children are getting ready for school, it increases.
• What will happen to us after self-isolation? Such activity, it seems to me, has always been and will be, at all times, in any political and economic situations. Pawn shops have always worked - sometimes worse, sometimes better. I'm more worried about how long this crisis will last for people. But, I think, even regardless of what the situation will be in society, everything will be fine here specifically, because many people use the services of pawnshops and microloans, especially since there is no support from the state at all. People have no choice.

Pawnshops:

• In terms of the amount of loans issued, we already have a 45% decrease in the first two weeks of April. This just means that people went into saving mode and spent their salaries for March. In addition, cafes, bars, and restaurants are closed. People don’t go on vacation, their cars don’t fill up, their expenses have decreased. But in May, the salary portion of salaries (if there is any left) will not be enough for many to pay for a mortgage.
• Whether the business suffered or not depends on the owner. We still have a pillow, we can still afford to sit, we don’t consider ourselves victims yet.

Pawnshop business: theory and practice

If you have a desire and inclination for the pawnshop business, then it’s worth getting into this business. It is very difficult to go broke in a pawn shop.

So, have you decided to open a pawn shop? What do we have to do? Before opening your own business in the pawnshop business, you need to study the market in which you will have to work, carefully familiarize yourself with the legislation regulating the activities of pawnshops and the relevant by-laws. This includes regulatory documents, regulations of the government of the Russian Federation and instructions, rules and requirements.

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Is it profitable to open a pawnshop?

Being in the pawnshop business is a profitable business, so the number of companies and individuals involved in it is constantly increasing. According to information received from government sources, the number of pawnshops in our country increases annually by at least 150 companies. This year was no exception. Therefore, when studying the market, you need to find out the number of companies that are engaged in pawnshop business in your city. To what extent do they satisfy the population's needs for such services?

You need to find a niche for yourself, that is, a direction that you will pursue. Whether you will specialize in household appliances or vehicles, whether you will deal exclusively with jewelry and gold or real estate - all this needs to be determined before opening a pawnshop. It must be taken into account that a pawnshop is, in fact, a small bank that lends to the population for a short, most often, period. But unlike a bank, this credit institution deals only with loans and only on the security of movable or immovable property.

The pawnshop operates only with the public. Therefore, in order not to go bankrupt and have a constant profit, the pledged property must be liquid. Simply put, it should be such that it can be implemented quickly. When choosing a specialization, this point must be taken into account.

After you have studied the market and decided on your specialization, you can start opening a pawnshop.

Pros of this business

Among the main advantages of opening this establishment are the following:

• The risk of losing money is extremely small, since the loan is equal to no more than 90% of the total cost of a particular product or product. If the client does not intend to buy the jewelry back, the pawnshop has the right to sell it at a much more favorable price.
• In this case, for organizing your business, the impressive area of ​​the rented premises is not so important as the presence of a large and reliable safe in it.
• The services of pawnshops have always been, are and will be in great demand among the population.
• Good income.
• Low competition due to the low popularity of this business.