How Max Pawn Luxury in Las Vegas Puts its Customers First
Max Pawn Luxury is a Las Vegas company that’s changing the way people think about pawn shops because of one simple attribute: putting the customer first.
Of course, catering to customers isn’t what you probably imagine when you think about a pawn shop. But for President Michael Mack, doing business the right way is at the very core of Max Pawn.
Short-term lending, done differently
Mack is a fourth-generation pawnbroker. After a multi-year stint in municipal politics, he got back into the pawn business with the opening of Max Pawn Luxury in Las Vegas. In the 15 years since, he’s built a business that bucks against preconceived notions of what a pawnbroker is.
For one, Mack revamped the business model. Max Pawn Luxury doesn’t think of itself as a short-term lender that resells items that customers weren’t able to reacquire. Instead, he thinks of Max Pawn’s short-term lending and its luxury retail as two sides of the same coin.
“We wanted to change the business model,” he said. “So we push the fact that the asset isn’t the ring or the bracelet. The asset is the customer.”
According to Mack, building relationships with his customer is paramount to his business. To that end, Max Pawn Luxury strives to really understand a customer’s needs and loan “the right amount of money” so that they can get their items back much more easily.
It seems to be working, since 90% of all people who pawn with the business come back and retrieve their items. The national average is much lower at between 60% to 70%.
Better yet, Mack says his company verifies merchandise and gives cash on the spot. So, people in a pinch never have to wait to get their money. The company is able to do this because it has experts on staff that can assess and appraise in minutes.
Whether someone needs a bit of extra cash for an unexpected medical injury or just because they’re short on monthly expenses, Mack says Max Pawn Luxury is there to help.
“Sometimes, we call ourselves the people’s bank because a good majority of the U.S. population has no banking ties,” Mack said. “So, that’s a big piece of our business. We’re helping people every day.”
A luxury shopping experience
The other side of the Max Pawn Luxury business is straight luxury retail. According to Mack, he says the shop has “one of the largest selection of luxury items,” which includes a massive selection of handbags.
“So tourists come by just to see,” he said. “They come and take photos in front of our large display at our Decatur store.”
This selection includes everything from Coach and Michael Kors to higher-end fashion houses like Chanel and Hermes. And, of course, everything is at a much more affordable price point than what you’d find at a department store or mall.
“A $200, $300, or $400 Michael Kors bag or Coach bag is still very expensive,” he said. “We have those bags starting at 75 to $100. And we stand behind it.”
Despite the low prices, Max Pawn Luxury is still committed to treating its customers well. According to Mack, one of its biggest competitive advantages is the fact that he keeps margins as low as possible to ensure that customers selling their items get the best price possible.
“We’re not like the old school reseller who’s trying to buy low and sell high,” he said. “So, our margins are not typical of what a retailer is — about 30% to 50%. We make between 10% and 20% margin, and that enables us to sell more merchandise.”
The items are all purchased from Max Pawn customers. According to Mack, many people come into the store wanting to sell an item outright instead of getting a short-term loan with it. A smaller percentage of the luxury merchandise are sourced from people who did not come back to retrieve a pawned item.
It isn’t just handbags that you’ll find at Max Pawn Luxury, either. The business sells watches, jewelry, sunglasses, wallets, diamonds, and newer electronics. And every single thing is verified authentic. Along with its appraisers, the company also uses AI-based platforms that can minutely and accurately verify certain aspects of an item — for example, the quality of the fabric of a handbag — within minutes.
All of these different elements, together, make Max Pawn Luxury what it is. And, according to Mack, they present key “competitive advantages” over other similar businesses.
“You know, the word on the street is we give great value and sell at affordable prices,” Mack said. “And, so, our business is quite robust for that fact.”