Upscale, suburban pawn shop helps redefine a once-seedy industry

To paraphrase the title of an Ernest Hemingway tale, the store at 12545 Totem Lake Blvd. is a clean, well-lighted place to hock a Pioneer CD changer.

The Yuppie Pawn Shop in Kirkland, whose very name describes its unusual niche, has been growing steadily by following a strategy that purposefully sets it apart from the typical perception - or misperception - of the pawnbroker business.

"We go out of the way to give a clean image," owner Brian Lurie said, describing the shop as ideal for those seeking their first loans from a pawn shop. "If they've gotta do this sort of thing, it makes sense for them to go someplace where they're going to feel more comfortable."

The store was founded in 1992 in downtown Kirkland, before moving a few years later to a more visible location near Interstate 405 and across the street from the Totem Lake Shopping Center. The store was originally known as Trickle Down Inc., A Yuppie Pawn Shop, in a tongue-in-cheek reference to former President Ronald Reagan's economic policy.

It makes sense, then, that Lurie likes to paraphrase Reagan's successor, the first President George Bush, by calling the store a "kinder, gentler pawn shop."

"The object," Lurie explained, "is for you to get your stuff back."

Yuppie Pawn attracts customers from around the Puget Sound region, but 80 percent of its customers come from Eastside communities such as Medina, Issaquah, Bellevue and Kirkland. The incomes and ages of the store's customers vary widely, Lurie said.

Aside from positioning itself to a relatively affluent market, the store follows a general business model common to pawn shops. According to Lurie, roughly half of Yuppie Pawn's gross revenues come from the sale of items the store buys and items put up as collateral by the 15 percent of people who default on their loans. The store also takes items on consignment.

The remainder of the company's revenues come from fees on loans. Those fees, which are established by the state, vary depending on the length and size of the loan. The fee on a $100 loan, for example, is $21 after 90 days. Lurie declined to disclose the store's revenues but said they have grown consistently since its founding.

Items accepted by Yuppie Pawn and for sale on its retail floor include artwork, electric guitars, Harley-Davidson motorcycles, stereos and jewelry, to name a few. Lurie concedes that the decision to accept or turn down something someone wants to sell or pawn is subjective, though based on years of experience in determining the value of a wide variety of items.

As a pawnbroker, "You need to know a certain amount - just enough not to get burned twice," Lurie said.

The emergence of upscale, suburban pawn shops such as Yuppie Pawn reflects a shift in the public perception of the pawnbroker business, said Rob Robinson, president of the Washington State Pawnbrokers Association. The Western Cash Co. pawn shop in Bellevue is owned by Robinson's wife, Nancy, and managed by his daughter, Rachel.

"The pawnbroker business as we know it today is considerably different than it was 10 years ago, 20 years ago," Robinson said. "A lot of it is in perception. A lot of it is in the way the business is operating."

From an operations standpoint, computer technology has created a more efficient and transparent means for police to check for possibly stolen goods among items pawned or sold. "I think you'll find that the police departments don't have the problem with the pawn shops that they did before," Robinson said.

At the same time, the perception of pawn shops is helped by the fact that "they're not the seedy little dingy cigar-smoke-filled rooms anymore," he said.

At Yuppie Pawn, those seeking a loan or looking to haggle over a price might want to consider this tip from Lurie: Hardball negotiating isn't the way to go. If you're courteous and polite, you're more likely to get a better deal. If you're tough or mean, chances are you'll get the same in return.

As Lurie said, "I'm not running for Nordstrom salesman of the year."

Another valuable tip comes from Lurie's sister, Susan, who works in the pawn shop and confided that Lurie does have one weakness when it comes to negotiating. For the sake of the store's financial health, she said, "Try not to let him next to a blonde with a skirt on."

"Oh, yeah," Lurie agreed. "A blonde gets whatever she wants."

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