Page "Pawnbroker" Paragraph 13

On the other extreme, a pawnshop with a huge inventory has several disadvantages.

If the store is crammed with used athletic gear, old stereos, and old tools, the store owner must spend time and money shelving and sorting items, displaying them on different stands or in glass cases, and monitoring customers to prevent shoplifting.

If there are too many low-value, poor quality items, such as old toasters, scratched-up 20 year-old TVs, and worn-out sports gear piled into cardboard boxes, the store may begin to look more like a rummage sale or flea market.

Small, high-value items such as iPod players or cell phones must be in locked glass display cases, which means the owner may need additional staff to unlock the cabinets for items customers want to examine.

As a store fills with items, an owner must protect inventory theft by hiring staff to supervise the different areas or install security cameras and alarms.

Too much unsold inventory means that the store has not been able to realize value from these items to provide cash to loan to borrowers.