Pawn Shops Cutting Back On Loans For Some Items

Computers, cameras, and component stereos are all items for sale at Boll Weevil Pawn Shop in Little Rock, but if they're too old, manager Norbert Johnson can't take them.

"Everybody has these little shelf and flat screen TVs," he explains. "They want to put these component systems up too and that's why these manufacturers are making them."

Johnson says in his business it's important to have what the customer wants. He adds, "That's just trying to stay competitive with some of your bigger retailers like Wal-Mart you know because like once Wal-Mart puts a TV on sale, hey, it's hard to compete with that."

Items like nail guns and air wrenches will always sell at a pawn shop. That's because there's a market for them, but other items like old televisions or floor model stereo systems won't. That's because the technology is antiquated.

"You come here you can get the same product cheaper than you can at the store," says Jeff Jackson.

Jackson bought a laptop from the pawn shop and says he understands pawn brokers' position on refusing some items. He explains, "Somebody brings something in that they're just pawning to try to get a quick buck out of it and they're never going to come back and get the money, I mean, get the thing back out of pawn, then they lose money on it."

Johnson says the shelf life of items in the pawn shop ranges from two to four months. After that, his profit margin decreases if it ever even sells.

Johnson says he won't take seasonal items like weed eaters, lawn mowers, or air conditioners right now, but he will take heaters because they will sell and he always takes gold.