Pawn Leaders

Beth is the co-founder of Capital Pawn, which she started with her husband, Adam. She was born and raised in Oregon and made a switch from teaching to taking her passions to the next level and becoming a full-time pawn broker. With over 6 years in the business, Beth has already learned so much and is constantly looking for the next thing that can take her business to new heights.

[00:40] Beth was born and raised in Willamette Valley, Oregon, where the idea of reduce, reuse, recycle and renew are parts of her passion, thus starting Capital Pawn in Salem

[00:53] She graduated from Oregon State University with a BA in English and Masters in Teaching and was a Writing & Literature instructor for 16 years before opening Capital Pawn with her husband, Adam

[01:07] Beth and her husband have 3 grown children and consider Capital Pawn as an extension of their family

[3:13] Beth and her husband's passions, which include teaching, learning, getting good deals and helping people with loans, were used as stepping stones to them opening a pawn store

[4:42] Beth and Adam opened their pawn shop in September 2011

[6:04] During the research phase, she decided to use high end customer service and a family friendly environment as a differentiating factor for her pawnshop

[6:55] And so the things that you said 'I will not do'. What were some of those? "It was very hard for me with the smells"

[7:54] The laws in Oregon (the charge, holding period) includes 3% with fees attached (approximately 9%). A $100 loan at 60 days ends up being $117 to $119 to pick up. There's a 14 day hold period for a buy and a 60 day loan with 30 days grace which can be renewed anywhere during the 90 day period

[9:03] Beth and Adam started on a small budget by designing the store themselves, by including Beth's jewelry and Adam's firearms

[9:22] "We really started out on a shoestring budget"

[9:27] The jewelry section was separated from the firearm section and the idea of pairing the two was promoted through a "Bling & Bang Sale"

[10:19] How big is your store? "It's 5,000 square feet in total. But about 1,500 is showroom"

[10:56] Beth realized that some pawn brokers were never dependent on gold. She therefore focused on customer service during the time people were more dependent on gold during the gold rush

[12:02] Gun sales are 40%

[13:37] Asking is important to get Google reviews or feedback to ensure that experiences are shared

[16:01] Being a female pawn broker usually comes as a shock to persons. The connection is different as females are able to relate to other females and know what they prefer

[21:58] The differentiating factors of Capital Pawn:

• Customers are greeted as soon as they enter the store
• They ensure they get Google reviews
• Relationships are created through community building

[25:21] For the last 6 years, what has been the hardest moment for you running the shop? "Christmas Eve"

[26:50] Balancing family and business comes through having a great team that can work without your presence

[28:14] Finding the right persons for your team is ensuring that you know who you're looking for and make them a part of your team

[32:10] Keeping a good relationship with your partner: "Communication is key and make sure that you know your role"

[32:49] Approximately 84 pawn shops in Oregon. Most are members of the Pawn Brokers Association

[32:58] An association ensures insurance for your business and keeps you updated on legislations

[33:57] Visit the Pawn Leaders Podcast community on Facebook and pawnleaders.com to continue the conversation and increase your knowledge on the business.

Moris is a third generation pawnbroker, graduate gemologist, entrepreneur, brother and ex-partner of Yigal and founder of CashCo Pawn and Cal Gem Labs. He has over 17 years' experience in the pawnbroker business and illustrates a good balance of family/work life.

[01:30] Moris started working with his father in his pawnbroker business – from the bottom up – and managed the largest location which generated $1 million in a year.

[02:35] CashCo Pawn started 17 years ago in a small area, where Moris worked a year on his own.

[02:58] He received a $100,000 loan from his father for CashCo Pawn.

[03:16] Moris got Yigal to assist with the business side, offered half the business to Yigal and turned CashCo Pawn into $4 mill.

[04:48] What would you do differently if you started a pawnshop today? "If I started a new Pawn Shop today I would not want to do it again." There are a lot of regulations and competition. He would however ensure to still treat his customers and employees like gold.

[7:20] What does a pawnbroker have to do to hit the goals today? "Strategy". You have to become the go to pawn shop and people's friend.

[8:06] You have to be more than just a pawn broker to achieve profitability. You have to be trusted, have great Yelp reviews, an Instagram page, give back to your community and be careful of your expenses.

[8:58] "You have to watch how much you give for items and really watch the strategy and where you're going to go from there."

[9:16] Would you say you had to become somebody else the way you were doing business? "You really have to become the go to pawnshop. You have to be the most dependable, trustworthy, transparent, business owner that people can trust no matter what."

[10:26] Moris speaks about becoming a leader by motivating, being honest, and serious in order to operate a business persons could trust.

[12:09] One of his biggest achievements was when an employee quit because a competitor offered him $2 more a hour. In 2 weeks, his employee came back because of the change in culture. Recognition and appreciation can make employees, especially the younger ones, happy. They are happier in the long run.

[15:08] What's been the most difficult thing for you in the 17 years of the pawn business? "The hardest thing has been to control my stress levels."

[15:54] Moris talks about using exercise and meditation to alleviate stress.

[18:02] When dealing with stress in family situations, it's important to take a break and even get help from a life coach or psychologist and not allow it to affect you for too long.

[20:05] You should be able to trust your team to assist with your functions.

[24:44] Hustle, get things done and stop procrastinating.

[25:52] Cal Gem Labs ensures legitimate certification of jewelry, find them at www.calgemlabs.com

[30:10] "You just make more money easier with a certificate."

[31:05] Call Moris directly at 619-840-0850 and visit calgemlabs.com for information on photography, repairs and other services.

[32:32] Visit the Pawn Leaders Podcast group on Facebook with any questions regarding this interview. Also let me help you level up your leadership on pawnleaders.com.

Welcome to The Intro episode of the pawn leaders podcast. Hey, everybody, my name is Yigal Adato and I'm a third-generation pawnbroker. My grandfather was a pawnbroker. My father is a pawnbroker. My uncle is a pawnbroker my brother is a pawnbroker. So pawnbroking runs in the family had my own stores for 16 years and I learned a ton about what to do what not to do in business. And so I started the pawn leaders podcast to help you the pawnbroker find different ways to grow your business your customers lead an epic life. So I'll be interviewing some incredible pawnbroker's some amazing vendors and some people that you may never hear about in the industry as well as in other industries that can help you in your business and in your life. So I look forward to having you join me on this journey.