Although television shows such as “Pawn Stars” and “Hardcore Pawn” make pawn shops look glamorous, fun and profitable, those who grind it out in the industry must evaluate knockoff items daily with far fewer resources.
Buying fake pieces is costly for shops, and technological advances to limit guesswork is always welcome. Entrupy, for example, has introduced authentication technology for handbags that boasted a 98 percent success rate last year.
Entrupy’s microscopic camera device is used in conjunction with the Entrupy app on a Apple device to take images of handbags, its seams, its inner fabric and any serial number or date code in the bag. Artificial intelligence algorithms analyze the images to determine authenticity, and results are received in real time.
“Up until now, authentication has been made mostly off human emotion,” said Deanna Thompson, customer success agent with Entrupy. “This takes the guesswork out of the equation.”
Once the bag is authenticated, the program generates a certificate of authenticity with a photo to show the purse is what’s advertised.
Shop owners can employ the Entrupy program with a $299 start-up fee for the device, which includes free shipping and training, and a monthly subscription, which is based on the store’s volume of use. Entrupy also helps those using the device market their business online.
Now partnered with more than 150 pawn shops in the U.S., Entrupy can authenticate a variety of high-end bags such as Chanel and Louis Vuitton, which are the two most widely replicated bags, among other popular brand names.
Entrupy has introduced authentication technology that claims a 98 percent success rate last year.
Michael Mack, who uses Entrupy in his shop, Max Pawn on Sahara Avenue, said he’s been impressed by the device.
“It’s been tremendous,” Mack said. “It’s something else. I really believe Entrupy as a company, has really just scratched the surface of what they can do.”
Mack said there are a few categories of customers who try to sell or pawn their bags to his shop — those who who have bought the bag from the brand’s store; those who have bought a knockoff not knowing it’s a fraud; and those who know the bag is fake and are attempting to rip off the shop.
“I would say that most people don’t know if their bag is real or not,” Mack said.
WIth luxury bags costing several thousands of dollars, being able to know a shop is buying the real deal is vital.
“Fake bags have gotten so good that sometimes it is hard to tell with the naked eye if it is authentic,” Thompson said. “We’re talking about a $5,000 Chanel bag. You have to know, because if it’s not authentic, it’s worthless. It’s a huge problem.”
Mack said Max Pawn will offer the authentication service to anyone, whether they’re trying to pawn their bag or not for a yet-to-be-determined fee. Having one day a month during which the service is provided for free is also being considered, Mack said.
Entrupy backs up the authentication service with a financial guarantee. If a bag is deemed to be authentic and later is discovered to be fake, Entrupy will cover any financial loss.
Having a piece of technology to better define an item’s value goes a long way to improving a shop’s reputation.
“We’re a pawn shop, so people question what we’re selling as it is, because of the stigma of a pawn shop,” Mack said. “Entrupy has been a tremendous help … Now we have the ability to have a certificate with each bag we sell, which is huge.”
A pawn shop employee using just experience and instinct who tells a customer that a bag the customer is trying to sell or pawn is fake can quickly escalate into a contentious situation if the customer takes offense. Having the technology to back up a claim eliminates the headaches sometimes associated with such transactions.
“We’re removing that liability for them (the salesperson),” Thompson said. “It’s not them (the salesperson) saying their item is not authentic, we’re (Entrupy) saying it. They’re still the good guy.”
Entrupy, which recently secured $2.6 million in series A funding, plans to enter the shoe authentication sector next. Shoes such as Air Jordans, Yeezys and others can fetch hundreds to thousands of dollars on the resale market.
“The really cool thing about our technology is that we can authentic anything that is replicated, except glass,” Thompson said.