CAPA Convention Recap
Bravo attended the California
Pawnbrokers Association Convention this October. It was their 58th
annual meeting in Pomona, California.
It was nearly 30 years ago as
President of the Nevada Pawnbroker Association that I attended my first
California convention. CAPA was formerly known as the CLSDA. Back
in those days there was a new generation of pawnbrokers shaking the roots of
original founders of the CLSDA. Today, CAPA is led by a dynamic
group of board members fostering and protecting the industry.
As a vendor and former Pawnbroker,
seeing the new generation of pawnbrokers emerging, it was a very interesting
experience. There is change in the air!
The most interesting project to
watch is the partnership between CAPA and the California Department of Justice
– DOJ. The partnership centers around DATA. CAPA has decided they
would prefer the DOJ to be the gateway collector rather than private industry
providers like Leads Online. The daunting challenge that these
interchanges have is the dissemination of this data information to all of the
law enforcement agencies, which each have their own unique proprietary
platforms. It’s like putting motorcycle engine into a Mack truck.
15 years ago our development team
worked with Los Angeles Police Department in creating their platform for
collection of information. We know this well as experts dealing with
every 3 letter government agency. In the end, if the data is purposed for the
intended audiences and utilized well it should serve the public well.
CAPA is blazing the trails in this new era.
The convention offered the
standard industry package. The main focus of pawn conventions from a
vendors perspective is the Diamond buyers concourse. It’s amazing
to me to see pawnbrokers selling to diamond brokers in this fashion. Over
the counter transactions. Diamonds for Cash. Millions were
exchanged.
The Gold Rush is over.
California has the history of the Gold Rush. Pawnbrokers over the last 7
years made hay like the Gold Miners of the 1860’s. Today, we are all back
to our regular jobs. The Pawn Industry in California is very much the
same cottage industry. And there is nothing wrong with that (as long as
you can protect your turf).
What is the ironic collision in
the “Golden State” are the Pawnbrokers and Silicon Valley. Over the last
18 months nearly $500 million dollars of capital have been pumped into the
secondary merchandise startups. As eBay and Amazon have become the
world’s largest sellers of used merchandise, they have become the market.
Wal-Mart is now the largest store merchant dealing in used merchandise in the
world.
Technology
investment looks for inefficiency. This is a basic premise of tech investment. This is
one of Silicon Valley’s mantra. If there is a way to create a mouse trap
that creates efficiency, this is where the pocket of gold lies. Attracts
the capital. Attracts entrepreneurs. And if they are lucky with
their vision and execute well, they cause disruption. Like Uber has done
most recently to the Taxi Cab industry. Are Pawnbrokers efficient?
Wal-Mart is not a
retail store. They are systems company. They are the most efficient
product exchange in the world. This is a well-documented history. Sam
Walton created the most sophisticated warehousing network utilizing computing
resources and network. Wal-Mart’s disruptive business processes are
delivered through technology. Wal-Mart is on now their way to becoming
the exchange station of used products to cash. Like
Pawnbrokers.
As business
people, we all see obstacles each and every day and we have to choose which one
to focus on. Where our time should be focused. The biggest bang for
our buck with the limited amount of resources and time. What are you
focused on?
I have always
believed that the Pawn Industry severely lags in many areas of
inefficiencies. The major reason for this lag is that we are slow to
react because pawn brokering is a lucrative craft.
With the
advent of our Industry exposure with reality TV, we now have Lucrative Craft +
Inefficiency = Major Target of More Competition.
Start keeping your eyes open and
share what you see on your forums to create awareness. Wal-Mart is easy
to see, but there are hundreds of incremental competitors poaching your
business.
It’s time to
start putting your energy into ways to be the most efficient. One more
time… It’s time to start putting your energy into ways to be the most
efficient.
Many of you know me, some have
heard of me, and for some, this might be the first time you have read my
blog. My advice has always been…
Get better at what you do every
day. In the pawn business don’t strive to be better than other
pawnbrokers. Rather, strive to be better than the best lender and
retailer.
My vision, the things I do every
day, the products that I build, are all intended to put you into a leading
position for the next 100 years.
I believe if done well the best
days of pawn-brokering are in front of us.
Be brave.
