What Small Businesses Can Learn from the TV show Pawn Stars
Pawn Stars is a reality tv show about the owners of a Pawn Shop and how they screw ”negotiate” with clients to buy their antiques, treasures and mementos as cheaply as possible.
It is a popular show, but it drives me crazy. I swear at the owners who care more about lining their pockets than doing the right thing. (Except the grandfather. He’s pretty cool.)
And I get aggravated with their crazy customers who, for example, get a Shelby Cobra body and chassis appraised for $60,000 and sell it for $30,000. Yes. That’s a true story. We don’t watch it anymore because I can’t afford to put any more quarters in the cursing jar.
What Makes Their Pawn Shop Successful?
Why would there be enough people selling their products at ridiculously low prices to create a tv show about it? You might say it’s because their customers are terrible negotiators. That’s part of it. But I think there is another reason.
What you may not know is that this pawn shop is located in…
Las Vegas…
which is…
the mecca for gambling addicts…
who always need …
money.
That’s like putting a doughnut shop in Diabetesville. They are going to sell out every day.
Look. It chaps my hide to do it, but I will “…give the devil his due.” Location makes a difference. They found the right location for their target market and they are making money. Lots of it.
How to Choose a Small Business Location
1. Know your target customer
You’ve got to know your target customer’s needs and wants. Who has to have what you’re selling? Who needs it, who craves it so badly, they would be willing to do almost anything to get it? Once you know that, the next step is…
2. Find your target customer
Where are they? Do they live in a certain zip code? Do they work in a particular industry? Where do they shop? If your location is virtual, where does your target market hang out? This post from entrepreneur.com has a list of free resources that can help you gather market data.
3. Get your location
Do your gosh-darn best to get a location right in the middle of where your target customers will be. Make it easy for your target customers to find you whether it is in a brick and mortar building or a virtual store.
Shut the front door! There are more posts on this topic?
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About Alicia Arenas
