Hustling 101

Your middle-class upbringing did not prepare you for this.

Episode 1: pawning mah jewels

Goal of experiment: to sell gold bracelet, (henceforth known as *item*) presumed to be 14 carat gold, for lots of money.

1.1 Hypothesis: I can absolutely use elaborate backstories to make more money and make this experience fun.

1.1.1 Possible approaches

Backstories agreed on: heirloom from ancient Dutch times; stolen goods; pretending to be a single mom; cool calm and collected stoicism; letting a man take care of it because *sexism*; dying grandmother needs a nice casket/terminal illness/sympathy angle. Coupled with intricate knowledge of gold market, through elaborate internet research.

 1.1.2 Feasible approaches

All of the above. Penchant for drama is present.

2.1 Execution phase 1

2.1.1 Research, part 1: Basic understanding of process

How does gold get appraised? Surprisingly, *most basic* google search* turns up very helpful video. Informational value: medium-high; includes info on how to test for purity as well as fair expectations of value for money. Moral of story: any offer lower than 70% of value is a bad deal. Lack of a kitchen scale for weighing of item proving slightly problematic for estimations of value. Term “world spot price for gold” now firmly incorporated into vocabulary. Necessity of using various calculations helps me value “trying hard” in math classes one hundred years ago. This task is also immediately delegated to research assistant.

(A: is that me? C: Yes. A: I want a fancier title. C: And I want a Mercedes, so shut up and tell me how much we can get if this thing is 14 carats and 20 grams.)

Further Internet research on seal reveals a purity of 14 carats. Probably.

 

2.1.2: Research, part 2: Basic understanding of pawnshop landscape

Yelp had two reviews on pawnshops in our immediate area, (East London) one in central London. Fairly certain from casual observation this is not reflective of actual number of pawnshops on Bethnal Green Road alone. Google has a few more, however, majority remain unrated. Sparse reviews lack in detail. Others have handy “internet service” offering money once you send them your gold for prices listed. Scammy appearance of these: high to astronomical. Testimonials posted on site appear surprisingly unconvincing due to extensive use of hyperboles.

The Internet may not be a useful resource for this. Possibly, field research may be key.

2.2 Execution phase 2: Field research

2.2.1: Data collection

2.2.1.1: Data to be collected:

– best method for good price estimate

– best gold price offered

2.2.1.2: Methods of data collection

Visit pawnshops employ different approach for each; get estimates; using knowledge of world spot price calculate what percentage of value is being offered.

 

2.2.2 Field research results

2.2.2.1: Timeline

Saturday afternoon (1):

-1^st pawnshop visit reveals bracelet weighs 29.8 grams; this fact is so exciting I have to go in again to ascertain price once again as I got too wrapped up in numbers and figures to remember everything all at once. Pawnshop owner offers price for 76% of value. Approach chosen: heirloom. Pawnshop owners’ measurable impression with story: 0%

– 2^nd pawnshop initial offer significantly lower, but is willing to go up to competitor’s price when he hears it. (Side note: competitor is shop next door.) Tests bracelet’s carat value in separate room and claims it’s only slightly over 9 carats. Despite knowing better, I claim Dutch people would not scam other people like that. Owner predicts we will not get better price and should just sell to him. We tell him we may be back later. Approach chosen: stoicism. Measurable impression: maybe 5%.

– 3^rd pawnshop in central London (45 mins away) is closed despite opening times indicating otherwise. Experiment temporarily suspended for coffee-gathering purposes.

Overall assessment: pawnshops are not glamorous/remotely nice places. Décor is meant to deter any clientele. Drama is tolerated but not appreciated, and therefore discarded as an effective negotiation tactic.

Saturday afternoon (2):

– Bethnal Green Road/Whitechapel Road: every pawnshop Google tells us is open and more. Approaches quickly revised and suspended after many confrontations with non-plussed pawnshop employees. Gender role reversal ineffective: no negotiations in price possible for men either. Price offered consistent, and also consistently 25 pounds lower than first offer. Repeatedly told in no uncertain terms to go back to where we were offered higher price. Competitive strategies of pawnshops in this area are highly perplexing.

– Two hours later it seems clear pawnshop 2 is best bet. Strategy discussion.

– Upon return to pawnshop 2, reminded owner of his original offer. Despite seeming significantly less enthusiastic about paying it now, his protestations remain faint and he appears resigned. Forms are filled out, few questions are asked, original offer is paid.

 

3.1 Discussion

Hypothesis false. Fun might be too high an expectation for this first foray into hustling. Pawnshops do not seem sexist or amenable to drama. Knowledge of gold prices good for comparative advantage but not for negotiations. Also: definitely keep day job. Selling this bracelet will not even cover one week’s worth of rent for our London apartment.

3.1.1 Lessons learned

Always come prepared. Desk and field research both benefitted outcome of experiment. Negotiating tactics seem largely useless unless stores were in very very direct competition with one another.

Also of note: most pawnshops will probably not buy or sell stolen goods, which will be explicitly stated on many posters hung in every location your eyes may meet a wall, will have posters around the shop of attractive female models posing with large checks, and have additional notices that those selling contract phones should not report them stolen for they will be reported to the authorities. This should give you a clue as to their sense of humor. (non-existent)

Additionally of note: all pawnshops are yellow. (Color of gold..? Is this too obvious in a good way or a bad way?)

 

* How to determine carat of gold. Google autofill. Not making this up.