1. Pawnbrokers and Payday Lenders 2018 Profiler
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2. Company and Customer Struggles
Company and Customer Struggles
According to the latest data from the US Census Bureau (May 2017), there were 8,721 pawnshops in the US, with 21% of them in Texas. Other states with a large number of pawnshops included Georgia, 9%; Florida, 8%; and California, 4%.
The Southeast (29.6%) and the Southwest (27.2%) regions had the most pawnshops since there were more low-income people living there. Pawnshops in Alabama ($264 million), Nevada and Tennessee generated the most revenue ($240 million each).
IBISWorld reports total industry revenues of $6 billion, with a negative annual growth rate from 2012–2017 of -2.4%. It forecasts more contraction as more lower-income people find jobs, the price of gold remains low and the demand for jewelry is low.

3.
Pawn Market Players
According to the National Pawnbrokers Association, 85% of pawnshops are independently-owned business and there are only two publicly traded companies in the industry: EZCorp Inc and First Cash Financial Services.
As of November 2017, EZCorp had 7 consecutive quarters of YOY increases in earnings and profits Net 2017 revenues increased 2%, to $435.5 million, based on a 4% increase in PSC (pawn service charge) revenues. Expenses decreased 22%, to $53.3 million.
First Cash Financial Services reported record revenues for 2017, at $1.8 billion, a 63% increase from Solid holiday sales and reduced expenses were the drivers. During 2016, First Cash merged with Cash America, making it the biggest in the industry.

4.
Who Uses Pawnshops?
A 2016 study reported the portion of Americans without a bank account decreased to 7% during 2015 from 7.7% for Americans earning $15,000 or less and African Americans and Latino Americans were largely responsible for the improvement.
More than 85% of pawnshop customers reclaim their goods by paying their loans.
Most people become pawnshop customers during two lifetime periods: when they are young and when they are almost at retirement age to supplement fixed or limited incomes.

5. Payday Loan Industry Overview
Payday Loan Industry Overview
2017 payday loan revenues were $5.3 billion, almost half of 2012’s $9.2 billion. The number of payday loan stores decreased to 16,480 during 2015 from 24,043 for IBISWorld forecasted a continuing decline due to competition from online lenders.
Approximately 2.5 million American households use payday loans each year. The Centre for Financial Services Innovation, a non-profit group, estimates that payday loan volume decreased 18% and revenues decreased 30% from 2014 to 2017.
States regulate these loans as does the federal government, as many consider them predatory lenders. Experts point to regulation as the major reason for the industry’s woes; however, the Trump administration has relaxed enforcement of many regulations

6. Trends in Pawnshops and Payday Lending
Trends in Pawnshops and Payday Lending
Wealthy individuals are turning to high-end pawnshops to obtain money quickly to finance their business ideas. They use expensive jewelry, cars and artwork as collateral and can receive thousands, or even millions, of dollars in loans.
A company called PawnGuru lets pawn customers comparison shop online to determine which pawnshop will give them the most money for their goods. Offers can differ by as much as 500% among pawnshops for the same item.
Online lenders are able to approve credit and transfer money into customers’ bank accounts quickly and some payday loan companies are now using this technology in addition to storefronts.

7. Advertising Strategies
Advertising Strategies
Ride the wave of pre-owned merchandise stores by emphasizing the unique and affordable finds at your pawnshop.
Emphasize quick access to cash for emergencies or to fund time-sensitive projects.
For payday loans, market your services as a way to manage cash flow.

8.
New Media Strategies
If you offer payday loans online, then advertise on the appropriate social media platforms to reach your target audience(s).
Create an e-commerce store on your Website, featuring merchandise for sale with an alert mechanism, so users are informed when an item they are seeking becomes available in your inventory.
Market on local search engines, using keywords for your most popular types of merchandise.

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