Business Lessons from “Pawn Stars”

Negotiation is a cornerstone of business, and like business, it’s an ancient art. There are many books on the subject, from Robert Cialdini’s Influence: the Psychology of Persuasion to Trump’s Art of the Deal. But while watching the History Channel I realized that some key business essentials can be gleaned from the show, “Pawn Stars.”

In the program, a Las Vegas pawn shop is run by a cast of colorful characters including a curmudgeonly “Old Man,” his affable son Rick, and his rebellious grandson “Big Hoss.” The show incorporates a blend of historical insight, humor, and good old fashioned business wheeling and dealing.

Here are some takeaways:

Start with a firm number, not a “hope.” If you are interested in selling something, and asked for your price, don’t say, “Well I was hoping to get $5,000.” No one cares what you are hoping for, and right then and there they know to stick a pin in your balloon of hope and hit you with a lower offer.

Know all you can about a situation. These days there’s no excuse not to run a search on the item you want to sell (or buy) and the people or organization you’ll be dealing with. I’m amazed to watch people walk into the pawn shop without knowing anything about what they want to sell or what it might be worth. P.T. Barnum had a word for people like that and how there’s one born every minute.

Don’t be wishy-washy. Often, sellers on the show say they are “looking to get $400 or $500” for their flea market find. If you say that then the $500 is immediately off the table because you’ve already negotiated with the other side by saying you’re open to $400. Don’t let the other guy help you decide where to start a deal.

Remove emotional attachment. Do you want to sell something or not? Once you have decided to sell then you have moved into the realm of a business transaction, and any sentimental value the item has to you will be irrelevant to the buyer. (“Well, you know, my grandmother used to keep this in her kitchen…”)

Always be ready to walk away from a deal. The Pawn Stars guys regularly turn down unique, cool items not because they don’t like them, but because acquiring them makes no business sense.

Know your business. Business owners can only stay in the black if they can readily sell an item for more than they bought it. If they can’t do this they can’t buy your item no matter what you think it’s worth. Whenever they deviate from their core business and think they can invest more money in an item to fix it up, they increase the risk of losing money.

Retain SMEs (Subject Matter Experts). For Rick and his crew, the job is to run a pawn shop, not to be be experts on esoteric obscure objects of historical interest. That’s why they are quick to call in experts on vintage guitars, toys, currency, or antique weapons. Build your own network of subject matter experts you can call on, legal, tax, sales, marketing, real estate.

Finally…Never underestimate the power of a good poker face.



7 Lessons from the Superbowl

It’s Super Bowl Sunday. You’ve got the hot wings, the dip and chips, and the Flatscreen TV. You’re ready to kick back and enjoy the Packers and Steelers in XLV. It’s great to root for winners on the field. But as you do consider these tips for a post-game plan to post some wins in your own career.

1. What’s your Super Bowl? The dream of playing in the Super Bowl is a powerful one, driving players relentlessly through every game of each season. What dream can you affix in your mind, what place do you want to go to, what shining moment are you striving for? What’s something that will get you fired up to get out of bed early each morning?

2. Put in the time. Everyone likes to talk about their favorite star players and wear their jerseys during a winning season.  But few people take notice before they’re gridiron heroes: when they’re putting in the tough hours, practicing hard when no one’s watching, and persevering through slumps, injuries, and other setbacks. Realize that for pro football players—and for you—there is no such thing as an overnight success, according to Malcolm Gladwell’s Outliers, it usually takes about 10 years.

3. Have a tantalizing talisman. The Super Bowl ring is the ultimate memento of an NFL career and symbol of success. The ring means more than its 5K worth of gold and diamonds; each ring tells the story of a team, a season, and a player.  Instead of waiting around for the company to give you a gold watch for your retirement decide upon your desirable talisman and affix a goal for achieving it. Put a pic of it on your desktop or Blackberry screen saver. Let it be known that you will obtain it if you achieve your goal. Maybe it’s a new wristwatch, diamond ring, pocket knife, or set of golf clubs. Whatever it is, consider getting it engraved, and you’ll not only have a nice symbol of your success to enjoy, but something you can pass on.

4. You might lose. Imagine slugging it out all season with the Super Bowl in sight then falling short like the Jets or the Bears this past season. Oh, the agony of defeat. And in the big game today someone must lose. Part of the appeal of the Super Bowl is watching the struggles of life play out on 52 inches of Hi Def. A dream will come true for some while for others it all comes crashing down. The fact that many of these players will start from scratch again next season is an inspiration for all of us to start anew tomorrow.

5. Get in the game. Over a 100 million people are expected to tune in to the Super Bowl. But only a few dozen at best will see time on the field. Those players will be the subject of comments and commentary from legions of spectators far and wide. In his famous In the Arena speech Teddy Roosevelt said, “It’s not the critic who counts.” Instead it’s the person who gets in the ring and takes his  lumps and comes back for more. Focus less on critiquing others and more on the steps you’re taking to be on top of your own game.

6. You might make a mistake. Immediately after the Super Bowl, everyone had an opinion on what the Steelers did wrong, or what the quarterback should have done differently, or who else should have done what.  The best lesson there is that you have to allow yourself to make mistakes of your own. Playing it safe won’t gain you much yardage.

7.  Plan your comeback. Those who didn’t make the Super Bowl are already making plans for next season. The coaches all make that clear in the post-game press briefings. The defeated Steelers are plotting a return to the Super Bowl and the victorious Packers are planning to avoid the perils of complacency. So how about you? Ready to stage your own comeback?


The Man in the Arena

“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better.

The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.”

–Theodore Roosevelt from the speech, “Citizenship In A Republic”, delivered in Paris on April 23, 1910


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