Pawn shops give customers a place to sell their personal items for cash. The pawn broker looks an item over carefully and determines how much money he can obtain for it. He then makes a lower offer to the customer. The pawn broker makes money when he sells the item at a higher price.
For example, if a customer offers a working DVD player the pawn broker knows he could sell for $45, he might offer the customer $20. Were the DVD player to sell at $45, the pawn broker would make $25 in profit. If the pawn broker determines that the item cannot be resold, he will not make an offer to buy the item. The pawn broker must be fairly sure he can resell the item before he takes the risk of buying it.
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