Pawn shops use various methods to determine your items' value. This can include research, experience, and even consulting with experts for high-value items. They'll often consult databases for the current market value of items. They'll also take into consideration the condition of your item. The worse the condition = the lower value. According to Pawn America, "Most pawnshops try to maintain a 38-50 percent profit margin, which means they want to earn that much compared to what they offer you. So, they'll assess your item's market value, then reduce it by their profit margin."