Weak economy good for pawnshops

BY SARAH ARKIN
Media General News Service
Published: April 25, 2008

DANVILLE - By nature, certain industries do well when the economy slumps.
As costs to fill up gas tanks and refrigerators rise, business is practically booming for second-hand stores and pawn shops offering cash for used items and low selling prices.
“Gas goes up and more people come in,“ Lucas Austin, an employee of Second Hand Cash on Riverside Drive, said Thursday.
The store “stays busy” said Chaz Cake, another employee, who said about 100 people come through a day.
Dozens of bicycles lining the outside of the store seemed slightly ironic as people traded goods for gas money.
Offering anything from tires to toasters to tools, the store had a steady flow of customers Thursday afternoon.
“We can’t afford to fill it up (all the way),“ said Edward Travis, who had come to the store to sell a bicycle and a few electronics.
Travis said higher prices are “most definitely” affecting him and others.
Further up Riverside Drive, Sylvia Wilson reported that Riverside Pawn Co. also has seen an increase in customers over the past few months. She said the store was regularly seeing between 50 and 100 people per day.
It’s not to say the stores capitalize on society’s woes.
Consumers with less expendable income also benefit from cheaper, second-hand options and a way to get cash fast without any interest rates. A gold engagement ring for $85 isn’t too shabby.
Xavier Keith unloaded a weed eater and bicycle at Riverside Pawn.
For Keith, it was just a matter of getting rid of some unused stuff. But his brother, Daniel, said that rising costs of living are “definitely affecting people” and agreed that more people are heading to the pawnshop in need of cash.
Some think the higher cost of living is only exacerbating underlying unemployment problems.
“Unemployment is through the roof now,“ said Travis, a former Dan River Inc. employee. “It’s very hard now.“
Violet Vance, a Danville native who recently returned to the area after 10 years away, agreed that there are several underlying problems related to the weak economy.
Vance said it took her four months to find her current job at Sam’s Club.
Pointing to the cash-advance store across the street, she said, “These places were never here before; the place has really changed.
“There’s so much crime because people have nothing.“