Seth Gold – Hardcore Pawn (The James Altucher Show)

Episode 40 of The James Altucher Show features Seth Gold of the reality TV show ‘Hardcore Pawn’. Whilst the show focuses a lot on buying low and selling high, Seth said that 80-90% of customers simply take a loan against thei item and buy it back (with a little bit of interest). In his business, Seth needs pretty phenomenal negotiating skills. He breaks down the main components required for negotiating as follows:

  1. Know the market value of the item you are negotiating.
  2. Know what your ‘bottom dollar’ is going to be and know what your ‘top dollar’ is going to be (your maximum bid that will still allow you to make a good profit)
  3. Know when to walk away.

Seth usually doesn’t give out the first price because the first price always sets a peg that will dictate the rest of the negotiation.