It’s all about Velocity!
ve·loc·i·ty /vəˈläsədē/
noun
the speed of something in a given direction
ECONOMICS: the rate at which money changes hands within an economy
(Definitions from Oxford Languages)
Why velocity and how does this affect your pawn business?
Probably 15 years ago, I had a real estate agent come to me and say, "Yigal, there's an apartment in Chula Vista. I think it's a great deal. It's an auction so let's go buy it!" I went to the apartment which was a little bit run-down but I told my agent, "Cool! Let's buy it!"
At that time, I wasn't making a ton of money and the down payment was huge. To cut the long story short, we won the auction.
It was a two-bedroom, one-bath apartment in Chula Vista, which isn't the most attractive area but isn't the worst either. I bought it for $45,000 and you know how much that costs now? That apartment costs $280,000 today!
I'm not bragging about having a real estate property for that price, since I understand some of you may have better and more expensive properties. But when we talk about velocity, we talk about the rate at which (1) money changes; and (2) you make decisions and choices for your business. If I had not made that decision many years ago, I would not have made $250,000 today.
You see it's about the decisions that you make and the speed at which you make those decisions that make a huge difference in your business. Let me give you an example:
The speed at which you fire a pawn pirate.
(Yeah, let's talk about that!)
If you don't fire that pawn pirate quickly enough, that person will cause more damage to your business. It's also the same if you invested $10,000 years ago in Bitcoin you would now be a multi-millionaire.
In the pawn industry, we seem to take too long to make decisions. We realize that our software isn't operating properly, but we take far too long to decide what to do about it. I remember when Ido came up with the Yehuda Machine, The Sherlock Holmes. People were hesitant to make a choice. But now everyone wants it! And you might have lost a ton of money if you didn't buy it before.
What else? Whether to hire someone or not, making an investment, buying my book The Pawn Profit Pillars, and so on. By buying my book, you might get one idea from it that could make you a ton of money, but you have been slow to make a choice in doing so.
We take so long to make decisions, slow in adopting new things that cost us a lot of money, time and velocity. By the time you want to get going, you're already deep into the problem. Here's a good example:
I have a Mastermind member who joined the group six months ago. After everything that they've learned and implemented, they netted 25% more money. Again, that's NET PROFIT! He said, "I wish I would've done this 3 years ago when I first called you because imagine what my results would've been like now. If only I knew the information..."
Slow decision-making puts breaks in your operations. Don't get me wrong, I'm not talking about dumb decisions. I'm not saying you shouldn't make decisions with intelligence, but surprisingly, some of you do that! Some of you just freeze and don't make any decisions.
Yigal Adato
Yigal is a 3rd generation pawn broker, and is now a mentor, coach and educator with the pawnbroking industry.
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