Pawnshop Cash Flow Versus Profit

In the pawn business today, we hear lots of discussion about cash flow instead of profitability and if you are not careful, you can cash flow yourself right out of business. The reason we can make this bold statement is that we have seen it happens hundreds of times over the years. So, what is the difference between cash flow and profitability?

The Profitability Difference

At Devoted Pawn Consulting, we talk about and preach long term profitability and “winning each transaction” as if your life (and the life of your customer) depends on it. Becasue it does! There are tons of things that you hear about or that others tell you will help boost your cash flow but ultimately lead to long term headaches and even disastrous issues. One of these is commission pay outs simply for increasing sales. If this is not done right and with great oversight, it can kill you because you end up paying commission on top of losing money on the transaction in the name of cash flow. Talk about a cash flow killer! Another example is paying “max value” above normal on loans to “ramp up the amount of interest that comes in” only to find out that it hurts your redemption ratio and the customer do not return to get their items at the same rate. Your service charges (interest) can actually go down! What about taking layaway payments over a period of months on high necessity items like guns or electronics when we desperately need them in the stores and that others will pay full price for now? We can name tons of these examples that we run across daily in pawnshops and I am sure many come to your mind as we discuss this. The basic difference between cash flow and profitability is that one enhances your current short-term situation and the other makes you long term successful and solidified.

How We Achieve Long Term Profitability

At Devoted Pawn Consulting we help our clients achieve supreme long-term success by including what we feel is the most robust, business changing services included all at one low price. Just take a look at a few things that you get for one low price here:

Free cost savings review ✅

Free website and SEO review ✅

Key metric creation and tracking✅

Guaranteed return on investment ✅

Custom commission & bonus plan creation ✅

Included custom marketing & advertising plan ✅

Free written plan to work from long after we leave ✅

Work/Life Balance training for owners and managers✅

Hands on sales Training to grow retail sales and gross profit ✅

Complimentary 60-day follow-up to monitor & assist in your success ✅

Free tax consultation to show you where you are overpaying on taxes ✅

Complimentary month of consulting support after the initial onsite visit* ✅

Custom business & people growth plan take your business to the next level✅

All the tools & training materials ever created for pawn over the last decade ✅

Hands on Pawnbroker Training guaranteed to grow pawn balance & service charges ✅

And now you can pay for our services over time!***

We feel that our services and the value we provide is second to none in the pawn industry even if you have worked with others before. You will be so impressed with your results that you too will give us a rave review. Check out some of your fellow pawnbroker’s testimonials here.