A mark-up that is said to be consistently 25 to 50 percent higher than most pawn shops in the area. Andy McKinnon, a Loan Supervisor at the Pawn America on Central Entrance, knows the significance of jewels and diamonds. He says their store does its best to ensure competitive quality while guaranteeing their products.
“You know diamonds last forever and we have the best prices around and getting a diamond from us is going to save you money and they’re guaranteed. It’s going to be the best value for you.”
If you’re pinching pennies, a pawn shop can allow you to acquire your desired gems in a way many jewelry stores can’t. It’s a way Pawn Shops have been able to prosper even during an economic downturn.
“What’s neat about our business is that people can come in and trade things that they don’t use anymore, or don’t need for new things. It could be one of those diamond earrings or a one carat diamond.”
Store Owner of Pawn Duluth, Adam Bohlmann says many jewelers actually purchase their Pawn Shop merchandise and sell it for more.
“Sometimes you’ll hear women say, well I don’t want a used diamond, well what they don’t realize is a large percentage of our diamonds are sold to jewelry stores, they’re remounted and then they’re sold again. So they’re getting that same stone, they’re just paying three times as much for it.”
That said, despite all the guarantees and authenticity pitches, some skeptics say they will continue to purchase from a trusted jeweler instead of a used resale store.
Currently Duluth has three Pawn Shops while Superior has one.
CEO of Pawn America Brad Rixmann hopes to grow his business, opening pawn stores in high profile regions of the states.
Jordan Weinand
jweinand@northlandsnewscenter.com
