Author: vernon

How The Pawn Health Check Works

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You have more than likely heard all about our onsite visit called the Pawn Health Check!  But you still may be wondering what it is all about and what we actually do when we are onsite with you and your team, and what does it cost.  Before we break that down, we want you to know that this will without a doubt be one the of the biggest return on investments that you will ever experience.  We guarantee this and stand behind our services.  Don’t take our word for it, check out our testimonials and speak to those that you know who have used our services. Now, to answer the question of what we do do before, during and after our onsite visit:

Edited 1/1/2020

Included in each service package are the following:

Free cost savings review ✅

Free website and SEO review  ✅

Key metric creation and tracking✅

Guaranteed return on investment ✅

Custom commission & bonus plan creation ✅

Can be done via mobile** or onsite consulting ✅

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 so much more….

Before we ever venture onsite, we will give out an overview of exactly what we will do once we arrive in town.  We will also give you, in advance, our key metric tracking forms for both the store level and the employee level (no financials need to ever be given to us).  These forms will be used to give you two things. The first is a starting point pre-consulting (so you can see where you are and measure it versus your success after our visit and we train you), and two, a way to show you dollar for dollar how much your business is leaving on the table.  Next, we will then send you a questionnaire that tells us the history of your business by location and what your team looks like and what their strengths and weaknesses are.  We will also see where you think your room for improvement lies and compare that to what the numbers show us.  Once again, you will never need to send us your financials unless you want us to review them (which is included for free).  From there, we will have one last meeting to plan and orchestrate the onsite visit before we arrive based on our pre-visit findings.

Onsite Visit

We begin our onsite visit and spend 1-2 days per store location that you own and operate.  During the visit, we pay specific close attention to how your stores operate and the processes, systems and policies that they have as well as how they interact with the customers.  We will see how they work with the clients, how much missed opportunities in lost deals are happening, how they qualify loans, how they deal with customer conflict, how they price and valuate items, and how they sell to the customer.  All this, and so much more that cannot be done unless we are onsite like marketing and advertising, and your current commission plan etc.  From there we will review with you each day our findings and key learnings.  After all stores have been visited, we will sit down with you and review what we feel are the priority action items and get you to agree to the pawnbroker,  sales person and store manager training that we want to do with your team.  Once we have approval we will train your team!

Team Training Onsite

 We will train your team on our trademarked Pawn Process™ Training. We feel that this is the best training for the pawn counter and retail sales in the business!  This can be done to your entire team, just your above store leaders, just your managers, or any combination of these.  We recommend the more the merrier because no one has ever seen this excellent training unless they are our clients and the more exposure that your team can get, the better they will execute it after we leave.  This Pawn Process Training™ will cover how to perfectly qualify loans for maximum profitability, how to capitalize on missed deals (when customers leave over our lower offer), how to self-market and internally market ourselves and get cross over from sales to pawn and vice versa, how to turn browsing customers into buyers, how to sell more and discount less, and all the processes needed to succeed as a pawnbroker, sales associative and manager.  We guarantee that it will be the most detailed thorough training with more information than you ever thought possible.  Lastly, we will give you the tools that you need to ensure that you team is doing this long after we are gone and allow you to hold them accountable!

Post-Visit & Follow-up

After the training is done with the staff, we will sit down with the owners and leaders and help you create an action plan of immediate task items that need to be began right away before we leave.   You will also receive a Devoted Pawn thumb drive that includes every single training tool that we have ever created, used, or adapted from our combined 75+ years of experience in the industry.  This includes things like interactive gold and diamond calculators, marketing ideas and plans, metric tracking, review forms, training tools and so much more….

Once we return home, we will have yet another meeting with ownership and leadership to review your detailed all-inclusive summary.  As soon as we leave, our team of pawnshop consultants will prepare a thorough review of all that we saw and all that we suggest to be changed and addressed.  This report is anywhere from 12 pages (the shortest one ever done) to 32 pages long (the one with the most opportunity) and will cover the following items:

You will leave us with a full in store and outside marketing plan, a review of your taxes to show you where you are paying too much taxes, and a thorough review of your website and more!   We guarantee that not only are we the best value around, with the best return on investment, the best hands on training and the most tangible leave behind tools in the industry, but that we aim to make you self sufficient so that you never need to hire us or anyone else again!  Lastly, we will meet with you and your team 60 days after the consulting has been complete to check in and see how you are doing and if you can assist you further free of charge.

What Does All This Cost?

The question that we are always asked is “what will this cost me”?.  After we tell people, they always say “that is way more affordable that I thought”.  Because we have no fears about the consulting services that we offer and the incredible value that we provide, we will share our prices online for the first time ever!

Our Pawn Health Check

This is our introductory package and is our most affordable and starts with the following prices:

**Our Onsite Packages Give The Best ROI in the Industry!**

1 location = $6,500 All Inclusive*

2-5 locations= $12,000 All Inclusive*

6-10 locations =$16,000 All Inclusive*

11-20 locations =$20,000 All inclusive*

More than 20 locations = A custom price plan built to suit

**Our Mobile Consulting Packages Give The Best Value in the Industry!**

You may also choose our World Class Mobile Pawnshop Consulting if you wish to not pay travel!

1- location = $3,500 one-time fee

     2-5 locations = $7,500 one-time fee

    6-10 locations= $10,000 one-time fee

More than 10 locations = A custom price plan built to suit

More than 10 locations = a custom price plan built to suit

We guarantee that this is one of the best Return on Investments that you may ever see!

Does the Pawn Health Check Make Me More Money

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What Return on Investment Can You Expect From The PHC?

In business, everyone talks about Return on Investment (ROI).  But what do you really know about ROI?  Do you know what ROI you’re marketing dollars are providing?  Do you know if each employee that works for you makes you a profit? Do you know what your gross profit should be on each retail item?  Do you know how much interest or services charges your loans should/cold generate?   We can help you answer these questions and many more. In addition we will show you exactly how much money you can expect to make or save if you hire our pawnshop consultants to help you.

How can you possibly tell me what ROI we can expect if we hire you?

So how can we possibly quote you a possible ROI?  First, let us explain what you can expect when you hire us!

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Speaking of Pawn Commission……

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After taking the online Pawn Health Check,  you may be wondering “Why do I even need a commission structure for my team,” or “What is the perfect one for my business model”?  This is something that we believe very strongly in and that we want to address here today. In fact, we even talk about this in our onsite versions of the Pawn Health Check because we feel it is that important.   First let’s start with why do I need a commission plan in the first place.

Why Do I Need a Commission Structure in Place?

According to Forbes and many other studies, employees that receive a performance based commission produce nearly 30% more work, sales or productivity.  What would your business be like if your staff produced 30% more?  Sold 30% more?  Here at Devoted Pawn we believe this impact to be much greater than these studies can ever show because having a commission structure that actually promotes the behavior you need the team to perform and then incentive them when they achieve the results makes the customer service experience even better.  It will also lower your turnover and help you attract better talent.  This is effective because your team needs to first buy into what you are trying to do, and then must be able to see what is in it for them before they perform the work that is needed to the fullest potential.  What could your business look like if your employees sold more, made you more money, were more productive and your turnover was less and allowed you to attract better talent?   We help our clients with this all the time and would love to discuss what your perfect commission structure looks like.  Contact us for more information.  This brings us to the second question, “What is the perfect commission model for my business”?

What Should My Commission Structure Be?

This question is the million-dollar question and the easiest answer that we can give is that there is no cookie cutter one size fits all model that works for every industry.  There are however some proven methods that we have created that work in industries such as the Pawn & Jewelry industry, Retail sector, E-commerce, Sales, Collections, and Call centers. We would like to share what we believe are the key components of any successful compensation package.

First Steps

We believe the first step in this process is to define what key areas that you want to improve on.  Generally, they are key metrics such as sales, gross profit, etc, but they can be things such as company morale and productivity as well.  This is more common in factories where the work never changes and you have certain quotas during the day. An everyday example of this that we see in the pawn business is to try and increase profitability.  In the past to do this, commissions structures were created that incentivized staff to sell more items (and take a percentage of the sale as commission) and to loan more money to grow the pawn balance.  Sadly, this structure in many cases did more harm than good because ownership assumed this would mean more profit but mistakenly didn’t realize that it wasn’t tied to profit at all.  All this makes your team do is loan more money on items to make a quota and then when you sell it, your profit margin is less. On top of it you are paying a commission to do it (making less profit).  Unfortunately, this is still very much in use with many of the pawn shops and chains that we talk to every day.  In this case the focus was on the wrong behavior used to make the business more profitable and actually hurt it because more sales happened at a discounted rate resulting in less profit. More money went out on loans that won’t translate into profitable sales, which brings us to point number two.

Once you have CLEARLY defined what things you want to focus on for commission (such as more profitability), you must then perfectly define the behavior that needs to happen that will allow for that result.  If in the example above, they were clear on the way the staff was to grow the loan balance with profitable only loans and didn’t turn away good customers, and that the sales had to make X amount of profit before the commission counted, the results, although still not perfect, would have been much better.  What would be perfect is to look at ALL things that affect the profitability of the location and then make the commission structure accordingly.  In the example above, you need to look not only at gross profit on the item as it sells, but redemption ratio, layaways, pawn interest, overdue layaways (realizing that items on the shelf cost you profit because they can’t be sold, and unless they are gold, depreciate with time), and overdue pawn interest (because the interest should be collected or the item pulled when it is able to be. Doing neither costs you money because of the dreaded depreciation again, especially with electronics), just to name a few.  Once you have perfectly defined the items and the training and behavior needed to fix the issues you can move on to step three.

Step three is as simple as defining what the pay out should be in the form of commission for the job done.  Easy, right?  This is actually the second failing point for most bonus or commission plans.  If you just commission a dollar amount on the sale item, you don’t correct the entire behavior needed to ultimate success.  And what that dollar amount even should be.  Then comes the complexity.  What if one person does sales only?  Should they be penalized because they can’t sell items at a profit because the pawnbrokers keep paying too much for everything?  What if your staff doesn’t ever position in the process (sales, pawn broking etc.) but one bad apple keeps messing up the situation?  These are the last things that need to be ironed out and because of the complexity, we recommend getting some help in this area.

In summary, we feel the “perfect commission structure” will be slightly different in every company depending on your situation but should have in common these three major things:

  1. The commission should define what key things need to change or improve (such as profits, morale productivity, etc.)  The behavior drives the results and the results drive the commission.
  2. The commission plan needs to clearly and perfectly define the behavior change necessary, the training that needs to happen and the documented desired results. Then and only then will you have buy in and accountability from your staff.
  3. The payout must only be when the results are clearly achieved. For example, the commission can only be paid when profits of X are achieved. This allows the team member to see “what is in it for me” and will make this whole process work.

We have done this for countless businesses and not just in the pawn industry. If you want to know more about how we can help you in any way in this endeavor, please contact us.

Pawnshop Layaway Programs

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Does the “Famous” 10-10-10 Layaway Program Really Work?

 

There has been a lot of discussion lately about whether this old school layaway program from 20 years ago still is relevant and works today in the pawn industry. We love this and love to test fact from fiction.   We like to look at the facts and not theory of mathematics and calculations.  You cannot spend percentages and math.  But you can however spend profits and cash.   Here is the industry standard as it relates to pawnshops and their layaway program.

To be clear, we are fans of layaway & teach it as a part of all of our sales training.

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