Business off, but items for sale way up

By Nina Mehlhaf, KTVZ.COM

We all know the state of the economy is bad. People are buying fewer extras and looking to save money where they can. One kind of business is prospering off that mentality: pawn shops.

"Pawn shops have always done consistently very well in a down market," Randy Stormberg, owner of Bend Pawn and Trading Co. said Friday "They are there with merchandise at about half the price of new."

While businesses all around him are barely breaking even, Stormberg is seeing 30 percent more customers and business.

"During a down economy, we're going to be doing more business because we're buying a lot of stuff," Stormberg said. "However, we are like any other retailer - some of our sales are off."

Customers stream in and out the door, looking at used band equipment and asking about trucks for sale.

But most are like Malaena Willhite, looking to sell some items for cash in this tough economy.

"It's a little bit ridiculous. That's why it's really cool to have places like this," said Willhite. "It's nice to come in and find something that you would pay three times as much for somewhere else."

"Coinage is really popular right now. Gold especially," Stormberg told me as we walked down the aisles of Bend Pawn.

With the Dow Jones Industrial Average finishing down 157 points just Friday, consumer confidence in stocks is virtually nil, so Stormberg says they're turning to other things like gold to invest in. Even he sends a lot of gold he gets in, to be melted down - quick money for him.

Regular customer Gary Hages says he's lost tens of thousands of the dollars of his 401K just in the past two weeks, so he's trying to save money here, instead of spending at brand-name retailers.

"You got something you know is worth $100, you know you can get $35 for it at a pawn shop," Hages said. "A lot of people are doing that right now. Money's really tight."

And at just 3 percent monthly interest for a 90-day loan, Bend Pawn's clients are hoping once the market recovers, they can recover their most prized possessions.