The future's pawn shop

Discussion in 'The Pub' started by smolder, Apr 6, 2015.

  1. smolder

    smolder Gold Supporting Member

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    In 2007/8 the credit crunch caused a major shift in profit (for dealers and sales crews) from new car sales to used. This due to lack of demand.

    As the boomers start to liquidate guitar holdings in the next ten years, and the lack of guitar oriented pop music lowers demand... I'm wondering if the Guitar Centers will become the future pawnshop for gear. There seems to be one in every mall.

    Will the cheap off shore manufactured gear be in Wallmart? A $129 squire telecaster seems in keeping with what they do (I'm thinking about The Schwin brand for bikes).
     
  2. markedman

    markedman Supporting Member

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    The bottom is dropping as far as gear prices for junk. The good stuff will hold up, but by good stuff I mean the top 1% of all gear. Some of the middle ground guitars and amps will be great deals, deals of lifetime but the no name and over saturated brand name gear will be basically given away. Squire strats are already $25-$50, 50 watt Marshall practice amps $75-$100, how low can it go?
     
  3. chrisrocksusa

    chrisrocksusa Member

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    it's been a LONG time since I've seen anything worthwhile guitars or gear at a pawn shop. I'm pretty people with gear worth anything know better than to pawn, or sell to a pawnshop anymore.
     
  4. smolder

    smolder Gold Supporting Member

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    I think only desperate folks sell at GC as well, and they pay about the same, or so I've heard... Maybe some of the stuff are trade ins. I do think that GC has a better chance at selling musical gear than a pawn shop. If you gear won't sell on emporiums, ebay, Craigslist, what are you going to do?
     
  5. 27sauce

    27sauce Supporting Member

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    Can you borrow against a guitar at GC? Am I missing something?
     
  6. zekmoe

    zekmoe Member

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    I also think that the racks and racks of compressors and eq's, analog mixers , non powered club/bar speakers, and mid level metal amps will drop even lower as no one is buying and stores no longer take them in trade. That rack gear is worth about $5. And I'm talking about everything that originally sold for less than $2000. There are no buyers for it.
     
  7. Peteyvee

    Peteyvee Premium Platinum Member

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    No, we're not missing anything...the clueless ones are.
     
  8. treeofpain

    treeofpain Supporting Member

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    As far as new gear, we are already coming out of that trend. Wal Mart, Sam's Club, Kohl's, Best Buy have dipped their toe in the guitar market over the past several years and are for the most part pulling out of it. Yes, Wal Mart still carries the entry level stuff for now, but for how long?

    As far as used gear, pawn shops often pay as much for a guitar as GC. Pawn shops will also let you borrow against the value of the guitar, in case you only need the funds for a short period or if you don't want to actually sell your gear. Big advantage over GC in this regard.

    In my state, pawn shops have to hold all purchases for 7 days before retailing them. This allows the police to verify that the items are not stolen. Music stores are not required to hold merchandise. If you get something stolen, you'd better hope the thief took it to a pawn shop rather than a music store.
     
  9. smolder

    smolder Gold Supporting Member

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    No... You're not. The idea of borrowing against gear completely escaped/s me... And I was thinking of pawn shops as the last ditch effort to get money for your gear.
     
  10. 27sauce

    27sauce Supporting Member

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    Yeah, kinda the main idea of a pawn shop.

    Pro tip: if you want to get more money out of your guitar, pawn it and sell the ticket.
     
  11. Rimbaud

    Rimbaud Tarnished Silver Gold Supporting Member

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    Please....Squier..Squier...Squier:crazy
     
  12. Peteyvee

    Peteyvee Premium Platinum Member

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    I'll let 27 explain it to you but about 90% of the business a pawn shop does is loaning out money against items of value and they make almost all of their money on the interest they collect. Contrary to TV shows, buying and selling stuff is a very small part of most of their business.
     
  13. 27sauce

    27sauce Supporting Member

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    ^^^correct I think it would be a game changer if GC got in to the instrument loan business. That would be interesting. Lots of money to be made, if you have the cash.
     
  14. Guitar Josh

    Guitar Josh Resident Curmudgeon Silver Supporting Member

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    I was just wondering with the daily/hourly/minutely GC thread would pop up.
     

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