Pawn Leaders

Welcome back to Season 2 of the Pawn Leaders Podcast. Today we have Greg Engstrom, who has been in the pawn business since 1986. He is the president of the Indiana pawnbrokers association and recently put on the incredible Midwest pond conference that I attended and spoke at. He was also on the board of the NPA for 11 years, the winner of Pawn Broker of the year in 2016. He is also a pilot, a scuba diver, and a mountain climber.

[03:04] Prior to opening a pawn shop, Greg operated a jewelry business

[03:50] Greg got his license in '85, but didn't open the store because he and his business partner were not ready

[04:55] They later opened a bigger store, with more parking, in 1989, and continued to grow, until he chose to only operate 3 stores

[10:29] Greg got ordered to stay in a hospital because he was close to having a heart attack and doctors were able to catch it before it happened

[10:55] Things that were once important, aren't important anymore. This helped them to scale down the amount of stress and number of stores and now life is fantastic!

[15:05] What advice would you give young pawnbrokers to not have all the stress? "There's a lot of underlying stress and I think that's what a lot of us as pawnbrokers and any business people need to watch, because that's the killer. And along with the underlying stress, is guilt"

[15:49] The cleanup of the underlying stress is what a lot of us skip

[18:53] Most pawnbrokers do an amazing job at becoming familiar with their current customers

[22:55] What does it take for a pawnbroker to be successful and what mistakes are they making that they need to fix? We need to serve these people that have nowhere else to turn.

[29:24] It's important to start networking with politicians from early so they become familiar with you

[39:14] "The one thing a pawnbroker can't change is, you loan money to people who need it"

Visit the Midwest Pawn Convention next year May in Louisville.

Joey Coleman helps companies keep their customers. He's an award-winning speaker and works with organizations around the world; from small startups to major brands. His wall street journal 2nd best-selling book Never Lose a Customer again offers strategies and tactics for turning 1-time purchases into repeat sales. Joey enjoys spending time with his wife and 2 sons. This year, Joey is the keynote speaker at the Pawn Expo in Vegas, but first, he joins us on the Pawn Leaders podcast to teach us how to retain customers.

[02:59] Joey will be doing a keynote at the Pawn Expo in the morning and a workshop in the afternoon

[04:23] Joey used to be a defense lawyer, starting as a son of a criminal defense lawyer to doing national security law, international law and working in the Whitehouse in the CIA

[05:44] "In order to succeed in all of those industries, you had to have a very keen and clear understanding of the human condition"

[07:50] "We spend so much time and effort building our businesses, and focusing on our businesses, that when someone chooses not to do business with us, it feels like a dagger to the heart"

[09:19] Businesses get caught up in B2B or B2C that they forget that there are humans involved in every transaction

[13:11] "32% of the new customers who will join a bank, will leave that bank before their 1 year anniversary…half of them will leave in the first 100 days"

[14:55] "Somewhere between 20-70% of your new customers will decide to stop doing business with you before they reach the 100 days anniversary"

[20:30] You will run out of new customers, but you won't run out of existing customers if you pay attention

[21:14] What is a customer experience? "Customer experience is every single touchpoint, every single interaction you have with a customer"

[23:42] Joey's book Never Lose a Customer Again is highly recommended and you can also visit JoeyColeman.com

[24:05] The 8 phases a customer has the potential to go through:

1. Assess (Marketing and Sales)
2. Admit
3. Affirm

On this five minute Friday episode, I discuss the issues around keeping it real and sharing the ups and the downs.

• To continue the discussion join the Pawn Leaders Facebook Group.
• Schedule your complimentary Strategy Session today at pawnleaders.com

On today's episode of Pawn Leaders, we speak to Jerry Whitehead. He is a 2nd generation Pawnbroker with over 45 years of experience in the industry. He was one of the founding principles of Uncle Joe's Pawn, a family owned 12 store chain that was sold to Cash America in 1992. Jerry was the CEO of Dark Holidays in Austin, Texas. He grew that chain to more than 50 stores and sold that chain in 1997 to Cash America as well. He served as a director on several industry boards, including the National Pawnbrokers Association. He's also a leading mergers and acquisitions specialist who has bought and sold more than 250 stores in his career. Jerry started the Pawnshop Consulting Group in early 2000 and today has serviced hundreds of clients in more than 40 countries around the world and all across the USA.

[03:16] At 8 years old, Jerry's father asked him to volunteer at the pawnshop, where he worked 40 to 50 hours per week.

[05:19] The first set of stores were sold to Cash America? "In mid-1992 Cash America approached us and made us one hell of a cash offer and we ended up selling out to Cash America"

[08:52] How did you get word around about your consulting business? Bob Moulton described his frustration when going into his pawn stores and that he had little motivation and it was here that Jerry took him on as his first client.

[09:20] He was able to guide Bob Moulton, who now has increased his store count by 11.

[09:39] "The business really began by word of mouth, all the years I served on the NPA board, lots of great contacts, lots of great friends and family in the industry. In the beginning it literally was word of mouth. I was speaking in all the trade shows and getting a lot of visibility from the trade shows"

[10:38] "If people told me 15 years ago I'd be doing gigs in Cambodia and New Zealand, I never would have fathomed that"

[12:26] What is one thing that you think pawnbrokers are still doing wrong? "Unfortunately many independent pawnbrokers, operating not only in the United States, are still overvaluing their inventory"

[13:05] "Technology is a way of life and so there's so much information that's available today and when I go into stores I'm amazed at Pawnbrokers, because you know why they price this stuff to the moon. What are you thinking?"

[14:03] Why do you think some pawnbrokers are unable to turnover inventory quickly? "I think most mom and pop pawnbrokers have a sense of joy when they look around on their shelves and think about all the net worth they've got sitting around on"

[14:16] "There's two types of people in this business. There's retailers and there's collectors. You need to figure out which side of the equation you're on"

[15:23] What's another mistake you see pawnbrokers making? "Number two is a general lack of understanding of the financial metrics or what I call the KPIs (Key Performance Indicators). Most brokers really have no clue"

[16:51] What are the most important metrics? "Loan yields obviously number one, because whenever I have an outstanding loans, I need to know what my annual return is on that loan balance and how do I compare with other peers in similar markets?"

[17:40] The inventory yield is also very important, as it looks at the combination of inventory turns and margins

[18:06] Looking at the net profit percentage return on revenues is another important metric, as well as the return on assets

[20:44] What would you say is the third thing pawnbrokers are doing wrong? "I'm still shocked today to see as many stores as I do that are in such utter disarray"

[22:52] People become numb to their environment, and therefore don't see the need to change their image

[23:36] "I have just found that stores that are bright, clean and friendly, with smiling, friendly, happy people in there, that want to do business with you, do better than the other guys do"

[24:39] What are some of the things pawnbrokers need to do to become successful? "Leaders lead…when you've got strong leadership at the helm who is constantly grazing the road for something new or something different or seeking more from their personnel or their operations, constantly trying to improve, and constantly trying to do things differently, they tend to set themselves aside"

[28:18] "9 out of 10 times when you get the right players in your operation, those operations will grow and grow and grow"

[29:57] "Those that come in with baggage all the time or negative energy, they can certainly pull down the positive energy that exists in that environment"

[32:21] Goal setting is a big part of what Jerry does as a Consultant

[35:30] In the event that a pawnbroker is thinking of selling their store, how do they improve their store? "Oftentimes we can enhance the value of the business model just by doing some corrections in the operations over a period of time to improve the KPIS"

[36:34] Entering into an agreement with a pawn business, and helping them enhance their financial metrics will ultimately enhance the value of the business.

[38:59] "About 50 percent of the clients that have approached me to sell are still operating and they're operating with more integrity. They're happier"

[39:28] Make contact with Jerry Whitehead by visiting his website Pawnshop Consulting Group as well as on the Pawn Leaders podcast community on Facebook.

On this five minute Friday episode, I discuss the one mistake that will destroy your pawn business guaranteed!

• To continue the discussion join the Pawn Leaders Facebook Group.
• Schedule your complimentary Strategy Session today at pawnleaders.com

On today's episode of Pawn Leaders, we speak with Joe Apfelbaum, CEO of Ajax Union; a B2B digital marketing agency in Brooklyn, New York. He is a Business Strategist, Marketing expert and certified Google trainer, as well as the author of the book High Energy Secrets, where he

[10:20] How and when did you realize that you had to make a change in your life? "I started reading more books, bought a book called The Habit and I looked into personal development"

[10:55] The conscious and subconscious mind are different ways of thinking. The subconscious mind works 90% of the time

[13:09] "It's not about self-control, it's about rewiring your habits"

[14:12] "Every human being has the same 24 hours in the day. We all have time"

[19:40] People believe that if they drink a lot of water, it causes them to go to the bathroom very often and it's perfectly normal.

[26:35] If you realize that you are not focused as an entrepreneur, it means you are losing electrolytes

[31:11] "The definition of stress is not breathing"

[33:44] "The healthier you get, physically and emotionally, the safer you'll be"

[34:56] Get your copy of High Energy Secrets and visit Joe's website at Joe Apfelbaum

On this five minute Friday episode, I discuss finding the importance of practicing and sharpening your skills.

• To continue the discussion join the Pawn Leaders Facebook Group.
• Schedule your complimentary Strategy Session today at pawnleaders.com

Shawn Goans is the owner of Fort Scott Gun & Pawn and Fast Guy Stuff. He has a background in Sales and Aviation and made the dramatic switch to the pawn business after making the transition from customer to pawnbroker. Shawn shares his pawn business experience thus far on today's episode of Pawn Leaders.

[00:49] Shawn's pawn store is located in Fort Scott, Kansas

[01:02] He has been in Sales for the past 2 years and in the pawn business for 3 years

[01:12] Shawn went from customer to pawnshop owner

[02:29] 10% interest charged on a 30 day loan and a 90 day grace with a hold period of 30 days

[03:25] People travel to do business with him because of the low interest rate

[05:08] Shawn had to start from scratch with making a name for the business. He created a Facebook page and used word-of-mouth and giveaways to increase following

[07:02] His Facebook page has been removed multiple times due to his business being a gun shop

[08:36] Engaging posts are used as a strategy on Facebook

[12:39] Tactic used to engage customers:

• Send a handwritten "Thank You" card to customers after they make a purchase

[14:53] Mistakes to be aware of:

• Make smart loans
• If you are new to the pawn business, work for a Pawnbroker to learn the business

On this five minute Friday episode, I discuss finding the gift.

• To continue the discussion join the Pawn Leaders Facebook Group.
• Schedule your complimentary Strategy Session today at pawnleaders.com

Scott Wintrip is the author of High Velocity Hiring: How to Hire Top Talent in an Instant, named the must-read book by SHRM's HR Magazine. Over the past 19 years, Scott has led the Wintrip Consulting Group, a global consultancy that has helped more than 22,000 organizations build talent-rich companies that have eliminated their hiring delays forever. For five consecutive years, Staffing Industry Analysts, a Crain Communications company, awarded Scott a place on the "Staffing 100," a list of the world's 100 most influential leaders. He's also a member of the Million Dollar Consultant Hall of Fame and was inducted into the Staffing 100 Hall of Fame.

[02:13] Scott studied Music in college

[03:02] He was unaware that putting people in jobs was an industry

[04:04] Scott realized that apart from employment agencies, he had to serve companies

[05:22] Making history repeat itself is the best strategy Scott would share with people

[05:52] Recurring patterns make better hires

[06:29] "70% of hiring managers and HR professionals often see agencies and recruiters as a necessary evil; people stealing persons from one company and putting them in another."

[06:56] Find people who are willing to join an industry with a reputation that is not well deserved

[10:05] The old way of hiring no longer works

[11:53] "Smart, talented people give themselves options. They know that the job they have today can go away tomorrow. So they believe in lining up options for themselves."

[13:16] Hiring under the influence of overwhelming responsibility is a bad idea

[13:56] Scott identifies the recruiting process in his book High Velocity Hiring: How to Hire Top Talent in an Instant

[14:10] Various types of companies benefit from his book. However, he believes that the smaller businesses benefit the most

[15:02] Look for the recurring patterns among the people that matches their personality to their career

[16:18] Scott thinks that small businesses have a competitive advantage that allows them to sell a career path to people

[18:27] "If you want to recruit good people, you have to run a good business, and serve your community"

[19:02] Conduct a different type of interview to ensure you make:

- the right hire

- attract good people

- eliminate preconceived notions

[19:17] In the typical interview, candidates TELL, SELL and SWELL

[19:56] Scott focuses on proof, not promises

[20:08] How to conduct an experiential interview:

• See the candidate in action; doing sample work
• Hear how they will behave around customers and colleagues
• Experience the quality of his/her skills

[25:19] The Biggest Mistakes in the Hiring Process:

1. Blaming the skills shortage
2. Making it more complicated than it is

[29:48] Comment "I want High Velocity Hiring" and you will be entered into a raffle to win Scott's book