National Pawnbroker Fall 2018 by National Pawnbrokers Association

Pawnbroker National

Official Publication of the National Pawnbrokers Association

Fall 2018

ARTWORK: When Should You Consult an Expert? Pawn Expo 201 8: A R ou sin g S u cc e ss! Fi rearms Liability Issu e s â&#x20AC;&#x201C; T ip s to Play in g I t Sa fe

message from the president

Moving Forward

Tim Collier NPA President Tim@Pacerltd.com

I hope you made the trek to Las Vegas for Pawn Expo 2018 in July and took advantage of the tremendous education sessions and bustling trade show. Hats off to the NPA staff and volunteers for making this year’s show one of the best. Joey Coleman started us off with a bang during his keynote address at the opening session. I gained an enormous amount of knowledge from him, and his book makes implementing his ideas easy. The opening reception was also a hit with great food and a live auction that raised money for the NPA PAC fund. I give my personal thanks to Michael Mack, Sam Shocket, Jeffery Hess, and Les and Seth Gold for helping out by donating their time and resources to make the event a success. I also want to give special thanks to Michael Goldstein, Stephen Foster, Adam and Beth Anundi, and Bill Voorhaar who bought the pawn experiences in support of the NPA and to help build their businesses. Jeffery Hess, Nikolas Badminton, and the many other outstanding speakers took the show to another level! The extended learning sessions were well received and the extra time for attendees to visit with vendors during the last day of the trade show was well received by exhibitors and attendees alike. The trade show was much easier to navigate and being closer to the hotel rooms made it that much better. Now we must move forward and continue to build on the momentum that’s been created. The board participated in a strategic planning meeting in Fort Worth last month and, with the help of a facilitator, made great strides in outlining a plan for the association to carry us forward for the next three to five years. I appreciate all the input from pawnbrokers across the country as we continue to build an association you can not only be proud of but will play an integral part in shaping us as we implement new ideas. An association is only as strong as it’s membership. The board realizes this and that is why building membership is the driving force behind our future planning. We hope that more participation by pawnbrokers will lead to higher attendance at Pawn Expo and, in turn, drive up the number of exhibitors and their revenue. I’m always seeking advice from all corners of the pawn world and would love to hear your thoughts and concerns as we steer this ship toward great new heights. I’ll be attending regional and state shows over the next year and hope you seek me out to share your thoughts on what we can do to make the NPA better. I promise your concerns will not fall on deaf ears.

FALL 2018

National Pawnbrokers Association

contents Fall 2018

Cover Story Artwork: When Should You Consult an Expert? 24

HIGHLIGHTS

Membership

Pawn Expo 2018:

New NPA Members

NPA 2018-2019 Board of Directors 34

NPA Annual Award Winners

Firearms Liability Issues –

Have You Been Verified?

Tips to Playing It Safe

State Association Updates

A Rousing Success!

40 46

Member Spotlights

IN THIS ISSUE Message from the President

Message from the Executive Director

Business Solutions

The Lightbox Effect

Merchandising: The 8 P’s to Profitability – Part 2 20

Pawn Connections

Multi-store Owner Profile:

Chad’s Pawn Shop

Pawnbroker

Young Pawnbroker to Watch

Industry Partner

Behind the Scenes

10 Pawnbrokers Earn Their CPP 2018 FBL Scholarship Recipients

Rudy Klancnik

Calendar of Events

Lowers & Associates

Advertiser Index

46 54

Pawn Expo Attendees

The Rapaport Group

National Pawnbrokers Association

Christian Steinbacher Data Age Business Systems/PawnMaster Scott Sweeney Marshall & Sterling

Team GRC Meets with

Lois Haycock M&M Wholesale

Pawnder This

Government Relations

Tim Collier Pacer, Ltd

Community Involvement

Eric Bradley Heritage Auctions

Book Corner

Certified Pawn Professional (CPP)

Contributors for this issue of National Pawnbroker

FALL 2018

148 Stores Sold & Counting... Stallcup Group facilitates the sale of 23 more pawn shops, this time in Central Mexico! June 2018 – Stallcup Group, Inc., an Exit Strategy Consulting firm, announced its successful facilitation of the sale of Presta Dinero, an independently-owned business comprised of 23 pawn shops located in Mexico City and Central Mexico. Stallcup Group served as the exclusive financial advisor to the sellers in these highly successful transactions.

Stallcup Group’s thorough analyses of the sellers’ financial data, and the unique attributes and characteristics of both the company and individual stores helped ensure their client achieved all of their selling goals. Here is what other clients of Stallcup Group have to say about their successes: “Stallcup Group’s dedication to the sale of my company resulted in a 12%-15% higher closing price than the initial offer letters from various buyers. To my surprise there were multiple facets of negotiations above and beyond the final purchase price that the Stallcup Group handled with expertise. These results were tangible and financially beneficial. There is no doubt the results would not have been nearly as profitable without Stallcup Group.” – Mike Fisher, Regent Jewelry & Loan, 4 stores in TX “Ultimately, I was most impressed with Stallcup Group’s financial modeling, which is extremely sophisticated, and their ability to package information in a way that buyers want to see.” – Craig McCall, 12 stores AZ/NV

Why Stallcup Group? We have more than 32 years of experience in the pawn shop industry and have closed over $215M in transactions since founding the business in 2009. We are the leader in Exit Strategy Consulting, and solely represent pawn shop owners. All Stallcup Group’s clients have realized a purchase price increase of 10-50% from initial offer to final closing price.

Steve Stallcup

steve@stallcupgroup.com

817.479.3880

STALLCUPGROUP.COM

message from the executive director

NPA staff Dana Meinecke

Vision Activated

Executive Director Dana@NationalPawnbrokers.org

In July, hundreds of NPA members descended on Las Vegas for the annual Pawn Expo convention and trade show. Attendees were wowed with Joey Coleman’s unique, attention-getting ideas on how to keep customers coming back time after time and Nikolas Badminton’s session on the cashless society of the future. The “Turn Vision Into Action” theme resonated throughout with informative sessions, a trade show abuzz with activity, and plenty of networking opportunities for three intense days Dana Meinecke of education and fun. Pawn Expo 2019 will be at The NPA Executive Mirage for the last time next year (in the same convenient Director space that everyone loved this year!), so be sure to mark your calendars for July 9-11. I am excited to announce that ten pawnbrokers received their Certified Pawn Professional (CPP) designation at the annual membership meeting on Tuesday, July 10. The new recipients are: nK ara Blakeman, Barboursville, WV

nL isa Little, Conyers, GA

nR ic Blum, Dayton, OH

nR andi Nell, West Jordan, UT

nT im Collier, Little Rock, AR

nM ark Schmidt, Carson City, NV

nJ ohnny Frederick, Killeen, TX

nT ony Wood, Macon, GA

nJ ames Gonzales, San Antonio, TX

nP amela Wright, Houston, TX

Congratulations to all! For more information on the CPP program, see page 28. The NPA PAC hosted an auction at the Pawn Expo Welcome Reception on Tuesday night. Four industry professionals, including Sam Shocket, Jeffrey Hess, Les and Seth Gold, and Michael Mack, donated their “services” to the highest bidders. The funds raised at the auction enable the association to support candidates who understand the important role the pawn industry plays in our local communities. With the upcoming midterm elections, there may be many changes in Congress and the NPA can use your help. I encourage you to attend the next Legislative Conference in Washington, DC, on April 30, 2019, or donate to the NPA PAC. For more information, email me at Dana@NationalPawnbrokers.org. I’d also like to personally thank all of our Pawn Expo 2018 sponsors for their generous support. They are a big reason the convention and trade show are always a huge success! Dia Trendz Jewelers Mutual Insurance Palak Diam Simplex Diam ABC Diamond Buyer Star Buyers Bluestone Trading Co Geib Refining Diamonds & Jewelry Services

Aagam Creation/Aaria FCP Diamonds, LLC Marshall & Sterling Insurance Sparkle & Dazzle LLC Di-Moksh Diam Inc Wexler Insurance Agency, Inc National Shooting Sports Foundation Shri Diamond Inc

National Pawnbrokers Association

Surya Capital Saumil Diam Inc Atish Diamond Esha Jewels Hi-Tech PMR Padmavati Exports, Inc Aarav Diamonds MOD Diamonds

FALL 2018

Helen Moore Director of Meetings & Events Helen@NationalPawnbrokers.org

Margie Swoyer Director of Communications & Marketing Margie@NationalPawnbrokers.org

Brittany McCorkle Member Services Program Coordinator Brittany@NationalPawnbrokers.org

Mailing Address: PO Box 508, Keller, TX 76244

Physical Address: 2920 W Southlake Blvd, Ste 120 Southlake, TX 76092 Phone: (817) 337-8830 Fax: (817) 337-8875 NationalPawnbrokers.org National Pawnbroker is the official publication of the National Pawnbrokers Association (NPA), and is published quarterly. No part of this publication may be reproduced without the written consent of Dana Meinecke, NPA Executive Director. Sale or distribution of any or all of the contents of this magazine is prohibited. All rights reserved. For more information on advertising or to obtain additional copies of National Pawnbroker, call (817) 337-8830, or send an email to Margie@NationalPawnbrokers.org. For membership information, email Brittany@NationalPawnbrokers.org EDITOR’S NOTE: This publication is designed to provide accurate and authoritative information on the subject matter covered. It is provided and disseminated with the understanding that the publisher is not engaged in rendering legal or other professional services. If legal advice is required, the services of a competent professional should be sought. Expressed opinions are those of the author and do not necessarily reflect the views of ownership. © 2007-18 National Pawnbrokers Association: PO Box 508, Keller, TX 76244, (817) 337-8830 NationalPawnbrokers.org EDITOR: Margie Swoyer, Margie@NationalPawnbrokers.org DESIGNED BY: SPARK Publications

government relations

Team GRC Meets with Pawn Expo Attendees

Kathy Pierce Chairman NPA Government Relations Committee

Pawn Expo 2018 was a great time! The NPA government relations committee (Team GRC) was front and center to eagerly field questions for those in attendance. On Monday, July 9, Team GRC held an open house from 10:00-3:00 to visit with old friends and introduce ourselves to new pawnbroker attendees. We were able to talk face-to-face about important issues and together make plans for the coming year. It was a great success and we will repeat this type of session as an annual opportunity for Pawn Expo attendees. Also new this year, we had their own booth on the trade show floor, which gave us a chance to visit with even more pawnbrokers that we didn’t have an opportunity to see on Monday. Popular questions this year: n I s it true the MLA is being discontinued? No. The MLA requirement is not going away. n Isn’t it great that we don’t have to worry about the CFPB any longer? No. This government agency is not going away either. They do have a new name though – Bureau of Consumer Financial Protection – with new initials: BCFP.

The agenda for the GRC meeting covered the nomination of Kathy Kraninger as the next Director of the BCFP and her upcoming Senate approval hearings. Also discussed was Rep. Blaine Luetkemeyer’s regulatory relief bill that passed the House and is now moving through the Senate. Its passage could be a blueprint for a future opening under Title 26 to increase the Form 8300 reporting threshold from $10,000 to $25,000 for pawnbrokers. We are continually watching any activity by banks, credit card issuers, and card payment processors for discontinuance of pawnbrokers’ accounts, as well as any impact upon the firearms industry. Attention and discussion were also given to the recent Ninth Circuit Court Bankruptcy Review Panel decision. On Tuesday, July 10, the annual Welcome Reception had extra entertainment with a spirited auction of four “pawn experiences” with the proceeds benefiting the NPA PAC. Industry experts Sam Shocket of King’s Jewelry and Loan, Les and Seth Gold of American Jewelry and Loan, Michael Mack of Max Pawn, and Jeffrey Hess of Hess Fine Art, graciously donated their expertise, time, and hospitality to the highest bidder. The auction raised much needed funds for the NPA PAC and was loads of fun for everyone in attendance. Congratulations to the lucky pawnbrokers who won the auctions. Thank you everyone for making the evening a memorable one.

NPA Government Relations Committee: (back row) Cliff Andrews, Kathy Pierce, Fran Bishop, Jordan Tabach-Bank (partially hidden); (front row) Sarah Jane Hughes, Bill Dawson

National Pawnbrokers Association

FALL 2018

Dear members of the National Pawnbrokers Association, Your business deserves an insurance company that offers more than just a policy to manage risks. Jewelers Mutual Insurance Group’s commitment to protecting every business that sells jewelry has expanded to exclusive programs designed to help our policyholders grow, too. We want to extend our member beneﬁts to the pawn industry as well, because after all, what business isn’t looking to get ahead in today’s competitive environment? Plus, to cover the unique risks that pawnbrokers face, we’ve collaborated with other companies to enhance our insurance offering so you can have the best of both worlds — comprehensive insurance coverage and opportunities to improve your bottom line. Please visit JewelersMutual.com/Pawn, send a message to pawn@jminsure.com, or call 800-336-5642, ext. 2118 to receive a free, no-obligation assessment and quote.

Sincerely,

Vice President, Commercial Lines Jewelers Mutual Insurance Group

P R O U D LY S U P P O R T I N G T H E N A T I O N A L PA W N B R O K E R S A S S O C I A T I O N

800-336-5642, ext. 2118 | JewelersMutual.com/Pawn | pawn@jminsure.com

member news

National Pawnbrokers Association New Members May 1, 2018 – July 31, 2018 PAWNBROKERS

Pleasant Hill Coin & Jewelry • Pleasant Hill

Best Collateral, Inc • San Mateo Best Collateral, Inc • San Rafael Best Collateral, Inc • Vallejo Downtown Fresno Coin, Jewelry & Loan • Fresno Visalia Jewelry & Loan • Visalia

Alabama

Loyalty Pawn#1 • Sacramento

Colorado

Redstone Pawn • Huntsville

Loyalty Pawn#2 • Sacramento

Neighborhood Pawn • Pueblo

Arkansas

Loyalty Pawn#3 • Roseville

Florida

Towson Gold Silver & Pawn • Fort Smith

Loyalty Pawn#4 • Sacramento

Folmar Gun & Pawn, Inc •

California

Loyalty Pawn#5 • West Sacramento

Fresno Coin Gallery,

Tallahassee (2)

Best Collateral, Inc • Marysville

Destin Pawn • Destin

Jewelry & Loan, Inc. • Fresno

Best Collateral, Inc • Novato

Sarasota Watch Company • Sarasota

Loyalty Pawn Corp • Sacramento

Best Collateral, Inc • Oakland

Elite Pawn & Jewelry • Port Saint Lucie

Discreet Collateral Loan • San Diego

Best Collateral, Inc • Sacramento

Prestige Pawn • Jupiter

Gold and Silver Trading Co •

Best Collateral, Inc • San Francisco (2)

Homestead Trading Post • Homestead

Bakersfield

Best Collateral, Inc • San Jose

(Continued on Page 64)

THE FUNDS YOU NEED TO GROW YOUR PAWN SHOP

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National Pawnbrokers Association

FALL 2018

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pawnbroker spotlight

Capital Pawn

Thereâ&#x20AC;&#x2122;s No Business Like Pawn Business In an industry where many pawn stores are handed down from generation to generation, Beth and Adam Anundi are relative newcomers having opened their pawn store just seven years ago. As co-owners and operators of Capital Pawn & Capital Couture in Salem, OR, their entry into the pawn business is an interesting story. While Adam is a risk-taker, Beth loves structure and stability. As a college instructor, Beth had stability, but Adam worked in the more uncertain construction and mortgage industries. After several years, they began looking at franchise options and opening their own business. They finally agreed that owning a pawn store would be a business where each of them could use their gifts and talents to help others. After opening their store in 2011 and joining NPA in 2012, they quickly became involved in the association. Beth serves on the Membership Committee and both are regular attendees at Pawn Expo. National Pawnbroker (NP): What differentiates your store from your competitors? Beth Anundi (BA): The crew at Capital Pawn loves what they do and it is evident as one walks through the doors that they have fun while helping clients. The team functions like a well-oiled machine talking through developments, opportunities, and planning updates. NP: In your opinion, what are the biggest challenges facing pawnbrokers today and how can they be overcome? BA: One of the greatest challenges today is the growing 10

National Pawnbrokers Association

FALL 2018

Beth and Adam Anundi, Capital Pawn & Capital Couture, Salem, OR

number of regulations regarding pawn. The best way to keep updated is to have a consultant come in regularly to train employees and confirm that all measures are being met and maintained; additionally, being an involved member of the NPA and state associations will help combat these challenges. NP: What advice would you give to someone just starting out in the pawn industry? BA: Jump in with both feet; be positive and never turn a loan away; always have enough cash. Develop relationships with other owners and visit a multitude of stores to determine what will be best for your store in your market. NP: What are some of the marketing techniques you use to generate traffic into your store? BA: We believe in using social media to boost our marketing presence and are organically rated by Google. You can check out our sites at: CapPawn.com, Instagram.com/CapitalPawnSouth, Instagram.com/ MyCapitalCouture, and Facebook.com/CapPawn.

Having an excellent customer experience policy will also help grow your business by word of mouth. NP: What is your proudest moment since you became a pawnbroker? BA: Our son, Elliot Anundi, joined the team this year! NP: How does your company give back to the community? BA: Capital Pawn supports several programs at three different local high schools which include baseball, football, and dance teams, their booster programs, and the drug-free, alcohol-free all-night party keeping new graduates safe the night of graduation. Capital Pawn is also passionate about partnering with One Thousand Soles, a non-profit that provides youth with good shoes offering comfort, confidence, participation, and health. I helped found New Growth Ministries which provides food, shelter, and hope for youth in crisis. This year, New Growth is opening the Santiam Teen Center. NP: What is the funniest thing that has happened

to you since you became a pawnbroker?

BA: On Facebook.com/CapPawn, there is an accidental

viral video filmed by Capital Pawn’s manager Bryan Fitzgerald and played out by the assistant manager, Rick Noonan. It has had over 11 million views and was featured on LADbible, Unilad, and ViralHog. It may have singlehandedly and unwittingly brought back the Circle Game. NP: Why is Capital Pawn a member of NPA? BA: Protecting one’s investments is crucial and our

business is one of our greatest investments. One simple way to protect our business is to be an active member of the NPA. It is the same reason we belong to our state association and participate locally. NP: Tell us something about you and Adam that would surprise us. BA: People may be surprised that Adam has built three of the homes and remodeled one other we have lived in over the last 18 years. He also happens to be the first generation in the Anundi family to not commercial fish. As for me, I love Disneyland and have spent over 30 days in the parks enjoying the magic of Disney in the last twelve months.

FALL 2018

National Pawnbrokers Association

Your Pawnshop App Money in your store before you open your doors

888-407-6287 Call us today!

young pawnbroker to watch

Chase Rainey

District Manager, Bayou Pawn & Jewelry, Hammond, LA How I got my start in the industry: My family has been running pawn stores for almost 35 years. My grandfather opened the first one in Denham Springs, LA, in 1984; my dad opened a second one four years later in Hammond, LA. Since then, we have opened three others in the surrounding

Years in

areas. I started working in the business at 18, and after college, I started

the pawn

managing and running the stores.

industry: 10

Greatest accomplishments in my pawn career so far: Graduating college and becoming district manager of all locations The best advice I have ever received: A goal without a plan is just a dream. My top three goals for 2018 are: n Continue to grow our loan balances n Open a new location n Build a positive look for pawn stores in my community

Industry certifications held: In the process of getting GIA certified, bachelor’s degree in business My media mix: Musical artists - Anything from new rock to country. I also love to listen to different business podcasts. TV shows – Game of Thrones, Westworld, Parks and Rec, Seinfeld My role models are: My father and both my grandfathers. My father has shown me how far honesty and trust can get you in life and business. Both my grandfathers had very little growing up but rose to succeed and become successful in life. They showed me that with hard work and dedication, anything is possible. NPA members would be surprised to learn that I: Know how to do bench jewelry work and minor gunsmithing. When I’m not at work, I enjoy: Spending time in the outdoors. I love to fish, hunt, and kayak. If I wasn’t a pawnbroker, I’d be: A software developer.

Fall 2018

National Pawnbrokers Association

business solutions

The

Lightbox Effect Diamond wholesalers and manufacturers express support for Lightbox — but it’s wait and see for retailers. By Joyce Kauf

“Lightbox Jewelry is great for the natural diamond industry,” says Jevan Fox, Vice President, Devotion Diamonds, a diamond and jewelry manufacturer based in Burlington, VT; Montreal, Quebec; and Mumbai, India. “De Beers has created a transparent marketplace for lab-grown diamonds that did not exist before. They set a price point — but more importantly, they set the tone for what a lab-created diamond really is,” Fox elaborates. “This is an incredibly clever move. De Beers’ goal is to support natural diamond prices,” says Eric Mor, president of Abe Mor Diamond Cutters, a wholesaler based in New

National Pawnbrokers Association

FALL 2018

York City. According to Mor, the launch of Lightbox basically relegates lab-grown diamonds to the lower-end of the market in the fashion category where they belong. Not everyone shares the buoyant optimism of how Lightbox will impact the natural diamond market. “What is the message?” asks Jonathan McCoy, owner, McCoy Jewelers in Dubuque, IA, questioning De Beers “ambush-like release” just prior to JCK and the “lack of information” they provided about Lightbox. “De Beers has not disclosed anything about the quality of cut, color, or grade,” says McCoy, who sells both mined and lab-grown diamonds.

Lightbox Lightbox Jewelry are lab-grown diamonds created by De Beers in an effort to transform the lab-grown market with high quality, fashion jewelry at prices lower than existing lab-grown offerings. According to Bruce Cleaver, De Beers CEO, this affordable fashion jewelry “is perfect for right now.” Lightbox will retail from $200 for 0.25 carats to $800 for a 1-carat stone with white, pink, and blue lab-grown diamonds set in earrings and necklaces. Any Lightbox lab-grown diamond of 0.2 carats or above will carry a permanent Lightbox logo inside the stone, invisible to the naked eye, but easily identified under magnification. Debuting in the U.S. in September, the brand will initially be available to U.S.-based consumers through the Lightbox e-commerce website. Retail partnerships will be announced at a later date.

“It’s a mixed bag of unknowns and I question De Beers’ methodology about what they are doing.” However, both Fox and Mor think De Beers’ message is clear. “With Lightbox, De Beers is taking a 360-degree approach to shaping the discussion about natural and lab-created diamonds in a way that is honest, authentic, and transparent,” Fox points out, especially around the concept of “true” ethical diamonds, which should also be applied to mined diamonds. According to Fox, De Beers has created an opportunity to talk about ethical sourcing and mining, as well as the economic contribution made by the mining companies to a country’s gross domestic product (GDP), as well as to the community in terms of schools, hospitals, and microloans. “We’re conveying to current and future customers that natural diamonds have value more than being inherently beautiful. Labcreated have value too, but it is different. In this value proposition, natural diamonds will win.” McCoy can attest to the interest and acceptance of lab-grown diamonds. In the four years since he has introduced them in his store, sales have risen to the point where lab-grown now account for about

70 percent of his loose diamond sales. But while the volume of mined has been reduced, the value has not diminished. “We haven’t reduced our prices or lowered our margins,” explains McCoy. Speaking from the vantage point of in-store experience, McCoy does not see Lightbox changing the dynamic between natural and lab-grown. “It will have zero impact. The customer is looking for good information — not headlines and not quick blurbs of data without any facts behind them.” Furthermore, McCoy doubts that De Beers will be able to supply “the product they say they are going to produce at that price point, which makes it remotely an apple-to-apple comparison with the other lab-grown that is out there in the market.” Fox believes the Lightbox launch will provide a “reality check” to existing manufacturers of lab-grown diamonds who had been selling lab-created diamonds at “incredibly” inflated prices. “This,” he added, “will take the wind out of their sails.” Mor believes the prices of natural diamonds will rise, which will have a corresponding effect on the seconddiamond market. Fox concurs that it will also “feel a bump.” However, McCoy is wary, describing the second-hand market as “a little bit FALL 2018

of a farce” because he doubts that retailers are buying diamonds back at “remotely the same price they were valued at five or 10 years ago.” He cautions, “Look at the fine print.” The diamond industry has voiced concern about proper identification of lab-grown diamonds. “We need to get synthetic testers out to as many people as possible,” advises Mor, who advocates reducing the price of these testers or even having them subsidized by De Beers and/or other major mining companies. Mor points out the ability to inexpensively test diamonds will instill more confidence in people to buy natural diamonds. “There are a lot of shiny objects that can be made into a ring and look pretty. But once consumers realize how inexpensive lab-grown are, they won’t even consider them a diamond substitute. It’s because diamonds are expensive that makes them desirable. Lightbox will really, really put natural diamonds back up on the pedestal where they belong,” concludes Mor.

The Rapaport Group is an international network of companies providing added value services that support the development of fair, transparent, competitive and efficient diamond and jewelry markets. Established in 1978, the Rapaport Price List is the primary source of diamond price and market information. Group activities include Rapaport Information Services, Rapaport Magazine, and Diamonds.net providing research, analysis, and news; RapNet – the world’s largest diamond trading network; Rapaport Laboratory Services provides GIA gemological services in India, Belgium, and Israel; and Rapaport Trading and Auction Services specializing in recycled diamonds and jewelry. The Group supports over 20,000 clients in 121 countries and has offices in New York, Las Vegas, Antwerp, Ramat Gan, Mumbai, Surat, Dubai, and Hong Kong. Additional information is available at www.Diamonds.net.

National Pawnbrokers Association

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industry partner spotlight

Our displays stop displayed guns from being damaged, allow more product to be shown in a smaller space, and keep items neat and orderly, thus eliminating many labor hours spent “straightening”.

Horizon Manufacturing Enterprises, Inc./ Rack’Em Racks Rack’Em Danno!

an Morton’s company, Horizon Manufacturing Enterprises, Inc./ Rack’Em Racks is an organizer’s dream. For the past 28 years, he has been designing and manufacturing racks of all kinds for both storage and safety purposes. If you sell (or own) guns, industrial products, or sporting goods, he has a rack or dispenser just for you. Some of the products the company manufactures include: nL ocking and non-locking rifle displays nA R-15 displays nP istol, knife, scope, red-dot scope, silencer, muzzle break and flash hider displays nG un safe racks nF ishing rod displays and fishing rod storage racks nS leeping bag hangers They also design, manufacture, and sell racks to the industrial safety market, including boot and glove racks, safety glasses dispensers,

Dan Morton

foam ear plug dispensers, disposable gloves racks, disposable clothing dispensers, hair net dispensers, coat racks, hard hat racks, bottle racks, safety data sheet stations, and lockout tagout hasps. “Well-merchandised pawn stores sell more product and attract higher-end customers,” Dan says. “Our locking rifle racks save pawnbrokers money on their insurance

FALL 2018

National Pawnbrokers Association

industry partner spotlight because locked guns make stores less of a target for theft. Rack’Em™ locking racks slow down the would-be robber which increases the likelihood of being caught by the police.” Firearms have been in the news a lot recently. The gun business may have slowed down, but retailers are now upgrading their stores to differentiate themselves from their competitors by making it easier for customers to shop. There is more interest in locking gun racks as more and more municipalities require guns to be locked during open hours and/ or closed hours. Keeping up with trends in the industry is one of Dan’s biggest challenges. “We spend an incredible amount of time engineering racks specific to our customer’s needs, and

then we incorporate that design to work throughout the industry. Our display fixtures have to work great, make the merchandise we hold look beautiful, withstand day in/day out abuse, and last for years. Our displays stop displayed guns from being damaged, allow more product to be shown in a smaller space, and keep items neat and orderly, thus eliminating many labor hours spent ‘straightening’. Design and delivery are our greatest assets. All our displays are in-stock and typically ship within 24 hours.” Dan’s greatest accomplishment has been growing the business every year by creating innovative products and delivering spectacular customer service. He has multiple patents and last year bought the company EZ Rod™ Organizers, adding more

fishing rod displays to their offering. Many of Horizon Manufacturing’s items require assembly. They use a company called Glenkirk which provides vocational opportunities for individuals with intellectual disabilities. They also hire high school interns during the summer and introduce the young adults to all aspects of running a business. It allows them to experience avenues they may not have considered for their future. They also take great pride in their sponsorship of the local girls traveling softball team (Adrenaline), Youth Illinois State Rifle Association, and the Boy Scouts of America. If you would like to learn more about Rack’Em Racks products, call (877) 7225369 or visit their website at Rackems.com.

THE TRENDZ

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National Pawnbrokers Association

FALL 2018

behind the scenes

Marion Williams Show Me the Pawn!

hile you have probably never received an email or phone call from her or seen her name listed on any NPA correspondence, Marion Williams is an important part of the NPA. As an accounting consultant with C.R. Parr & Associates, PC, the company hired by NPA to update the association’s financial records, she ensures that all monies are recorded and reconciled in the proper places. Marion joined C.R. Parr & Associates in 2014 with 21 years of experience in business accounting and tax preparation. She graduated summa cum laude with a B.S. in accounting from DeVry University where her academic achievements included publishing a paper on ethics in accountancy. Proficient with a variety of accounting software, Marion plays an essential part in remedying QuickBooks issues for her company’s clients. Since joining the firm, she has become a Certified QuickBooks ProAdvisor and is in the process of getting her certification in Xero. While staying on top of the ever-changing landscape of the financial and tax accounting world can be challenging, the nuances of the job in general are what Marion

Marion Williams, Accounting Consultant, C.R. Parr & Associates, PC

“Public accounting offers a variety of facets within its realm. There are opportunities to work with a diversity of people and industries.” - Marion Williams

likes most about what she does. “Public accounting offers a variety of facets within its realm. There are opportunities to work with a diversity of people and industries; the chance to work with the Executive Director and NPA staff has been rewarding. Learning about the pawn industry, by way of the association, has been extremely enlightening.” Marion’s favorite piece of advice is to take time to listen. “This, for me, has simply manifested into three FALL 2018

ideas: 1) Listen to what others are actually saying and not what you are interpreting or feeling. 2) Listen to nature as it will calm and center your soul. 3) Listen to a variety of music to enjoy the rhythm of life.” Her greatest accomplishment since beginning her accounting career is a compliment. She explains, “Each time a person calls and says I was referred to them by a client, this lets me know that I am providing excellent customer service.” Originally hailing from Sweetwater, Texas, Marion moved to the Dallas-Fort Worth area in 1989. An integral part of her life is her family with whom she enjoys the best in life. She especially enjoys sharing stories of her grandson and twin granddaughters as well as the impending arrival of a second set of twins. Her ideal travel destination is anywhere there is beach-side surf.

National Pawnbrokers Association

business solutions

Pa r t 2

Merchandising: The 8 P’s to Profitability By Lois Haycock, M&M Merchandisers

s a business owner, your job is to turn a profit. We do this by calculating the amount of income or revenue above and beyond the costs or expenses a company incurs. It is calculated as total revenue minus total expenses. And no matter the size of the business or the industry, profit is the goal. There are many factors that go into determining overall profitability. Some are hard costs, such as product sales and cost; others are soft costs, such as culture within your business. Let’s tackle a couple of each now. 20

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In The 8 P’s to Profitability – Part 1, we introduced the eight P’s: nP eople nP romotion nP roduct nP resentation nP lacement nP assion nP rice nP ride The first three (People, Product, and Placement) were covered in Part 1; the remainder will be covered here in Part 2.

Price

This goes far beyond just the actual price tag. Pricing is a science, but one that you can learn with experience. Let’s look at the high/low pricing strategy. This is all about perceived value, and who doesn’t love a sale? This involves setting prices high when a product is first released and decreasing the price later in a series of sales events or item markdowns. High/low pricing is extremely common in retail and is perfect for your seasonal items. Driven mainly by the fashion apparel world, this strategy has been adopted by multiple categories. Here’s how it works: At the start of a season, new items are introduced at full price. Items that appear to not be moving quickly enough may be marked down. As the season progresses, you may choose to run a series of sales events to mark down all inventory in an effort to boost your revenue. The goal for seasonal items is to get in and get out, making room for the next batch of items. The key here is to move swiftly. Do not be afraid to mark down slow movers. Stale inventory does not help your profitability one bit. While we’re on the topic of inventory, let’s talk turns. Inventory is probably your biggest expense; it needs to be turned over frequently in order to generate cash flow (and we all know that cash is king). How frequently is relative, but an inventory that turns four+ times a year is deemed healthy.

marked it to $20, this is a $5 savings, but it is a 20 percent savings as well. Mark this as “20% off” as it gives a higher perceived savings amount. Always have the savings clearly called out. Do not make your customer do the math. You want to get full value for your promotions, so follow these steps to ensure success. The word “markdown”, while not a four-letter word, definitely makes retailers cringe. When we hear markdown, we think profit/margin loss, but this doesn’t have to be the case if you have a proper markdown strategy in place. What is a markdown strategy? Instead of slashing prices at the end of a season to get rid of your unwanted goods, you can determine upfront which items you’re willing to reduce prices on and by how much. Taking a proactive approach will allow you to better lifecycle manage your inventory and increase cash flow. This also helps you to monitor the product’s rate of sale and adjust pricing accordingly. Learn micro-seasons: 4th of July, back-to-school, hunting season, Thanksgiving, Christmas, etc. Utilize seasonal items so you can capitalize on a bigger ticket average with supplemental selling. Lastly, utilize technology and social selling to promote your brand. Places like Facebook Marketplace, Instagram, and Google are great resources for driving traffic to your store. Presentation

To calculate your inventory turns, use this formula: Inventory Turnover = Cost of Goods Sold / Average Inventory for the Period

Some would say that the higher the turns, the more profitable you are, but you have to be careful. If you turn too fast, you’re probably missing out on lost sales due to out-of-stocks. Promotion

When we hear promotion, we think sale, but it goes much deeper. Promotion is tightly woven with placement as we discussed in Part 1. You want to strategically cluster clearance items together and direct your customers there with bright signage that is clearly marked. When calculating savings, always use the higher number. For instance, if an item was $25 and you’ve

Traditional merchandising is everything you do to promote and sell your products once the potential customer is in your store. Sales generally begin with your eyes and you only get one chance to make a first impression. How you present your brand is how your customers will treat it. This impression begins the minute they pull into your parking lot. nW hat does the curb appeal say about your store? n I s it clean and well maintained? n I s it properly lit? n I s your store signage easily visible?

Moving to the inside of your store: The easiest thing to do is to make sure it is well lit with no dark corners. No one wants to shop in a dimly-lit store. Another must is to make sure it is clean and organized; FALL 2018

National Pawnbrokers Association

business solutions all items are front faced and not pushed back on the shelves. Make it easy for your customers to see and pick up the items. Lastly, the more you can evoke emotion in your customer, the more you will sell. You can achieve this by creating working displays. Take items out of their boxes; hang apparel items, so they can touch and feel them, allowing them to visualize themselves using or wearing the item. You can create product groupings to present a full ticket to the customer. Try pairing a gun with a holster, cleaning kit, and storage case. Sign this grouping with something like “For just $25 a month on layaway, you could own this!” Make it affordable for your customers. These simple steps will lead to the increased value of what a customer will spend. Passion and Pride

Happy employees make for happy customers. We’ve all heard this over and over, yet we still tend to ignore it. Let’s face it, the pawn industry is a very passionate group as a whole. We, as employers, need to bring this passion into our culture on a daily basis. Almost every person on the planet innately wants to be included. This means employees too. You can do this several ways. The number one way is through communication. Share your company history and future vision with every employee. Continue to share it over and over so they can feel it. Write it out and post it where they can clearly see it. You must also make sure your staff knows exactly what is expected of them as well as what they can expect from you. Ambiguity leads to poor performance and frustrated managers. Be very clear. Leverage employee strengths to allow them to shine. If someone is detail oriented, put them in charge of inventory or organizing the store. If someone is a great people person, make sure they are on the floor with your customers. Any time you can highlight a person’s strengths instead of their weaknesses, their pride will show through all the way to your customer. All of these actions will give your staff a sense of inclusion; they’ll feel like part of the team. As you can see there is a lot more to merchandising than just product placement. Effective merchandising yields: 22

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nh igher sales nq uicker inventory turns nc ustomers spending more time in your store n i ncreased customer satisfaction and loyalty

And ultimately, more profitability. That’s it. The 8 P’s to Profitability. In today’s everchanging world of technology, store owners cannot afford to miss a beat when it comes to leveraging every tool, process, or procedure available in order to stay relevant and ahead of the game. Lois Haycock is the Senior VP Digital Transformation for M&M Merchandisers. She is a 20+ year retail and e-commerce veteran specializing in project management and business analysis of customer-facing systems and software. She operates several e-commerce stores as well as a personal time management consulting business. Lois can be reached at lois.haycock@mmwholesale.com

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National Pawnbrokers Association

business solutions

Artwork: When Should You Consult an Expert? By Eric Bradley, Heritage Auctions

or one Chicago-area woman, it was a detour that changed her life. Tasked with cleaning out her deceased aunt and uncle’s apartment, the woman faced disposal of decades of belongings – including a painting at the center of a family controversy for 40 years. Her uncle was once a maintenance man for an affluent highrise apartment building and during a call, he happened to compliment the painting to its owner. The owners took notice of his appreciation and gave him the painting when they moved. His wife, however, did not share her husband’s taste. She refused to display it in their home, so her husband hung it in the building’s gloomy basement, where it stayed for four decades. Siberian Girl (No. 14), Leon Gaspard

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FALL 2018

National Pawnbrokers Association

business solutions Neither the niece nor anyone else in the family liked the painting either. In fact, the family pressed her to throw it away or simply toss it in the dumpster. On the drive, the niece spotted a sign for a free public appraisal event outside Heritage Auctions in Chicago. After inspecting the painting, a table of art specialists had some news. The unwanted painting was an oil on silk laid on board, completed in 1922 by Russian-born artist Leon Gaspard, who titled the finished artwork Siberian Girl (No. 14). Even better news: a painting by Gaspard could sell for as much as $20,000 at auction. The authentication process showed Sugar Hill, Late Afternoon, Maxfield Parrish Gaspard’s trademark compositional structure. It also followed theme depicting the natives identified without the help of an expert. he encountered as a youth, when he and Not surprisingly, most artists do not have a raisonné, his father traded furs and fine rugs throughout the and if the signature cannot be identified, it is time to Siberian Steppes. consult an expert. When Siberian Girl (No. 14) crossed the block, 14 bidders drove the auction price to a whopping $118,750. Document Provenance When it comes to authenticating fine art, a professional opinion matters. There are many ways to Before you call an expert, it is important to record authenticate original art, and a statement by a qualified as many details as possible about the history of the authority can greatly enhance an artwork’s monetary and piece while you are still in contact with your customer. scholarship value. When you encounter a piece of fine These details establish provenance, or an artwork’s art, here are the most common indicators that signal it is documented record of ownership and/or history. These time to contact an expert. details help experts trace the origin of a work, which can tremendously increase the value of even the most Look for a Signature common artists. Provenance takes many forms, including certificates You might wonder why some paintings sell for of authenticity (COA), original receipts, handwritten thousands while others only sell for a few hundred notes, or photographs. A certificate of authenticity is only dollars. Having a painting attributed to a specific artist as authentic as the company issuing the document, so is a first step in the authentication process. Locating research is required to be sure the company issuing the a signature should be your first step, no matter if the COA is reputable. Photographs and receipts are the most artwork is an oil painting or a print. A clear signature reliable forms of provenance, especially if the receipt makes it easy to identify and can help confirm the artist includes a clear-cut description which can be traced back who created the work. to auction houses, estate sales, or art galleries. Limited-edition art prints are often hand-signed by the artist and numbered and may have a limit on the quantity Family History so that each individual work retains value over time. Paintings, however, require much more research. If Oral histories of a fine art painting are often haphazard: the signature is from a well-known artist, then the work facts are forgotten and memories fade. Experts is likely included or referenced in a comprehensive, sometimes use these stories to authenticate a work by an annotated printed collection. These histories are called artist’s family member. Paintings are given as gifts, notes a “catalogue raisonné,” and documented artworks are inscribed on the backs of canvases, and letters can be are described in such a way that they may be reliably tucked behind kraft paper backing a wood frame. 26

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Family members often authenticate artwork. Maxfield Parrish’s son has authenticated his father’s work. For the painting Sugar Hill, Late Afternoon, 1930, Maxfield Parrish, Jr., wrote a letter in 1975 discussing a photograph of his father’s studio dating from about 1932 in which the painting appears. The painting sold for $310,700 at auction. Opinions of Artists, Gallerists, and Scholars

Authenticators will often research or consult gallerists, or business owners who exhibit and promote an artist’s work in galleries and other venues to sell new artwork to collectors. As buyers and sellers of art works, gallerists work with curators and art dealers to establish markets for their clients. They bring a level of expertise and can often identify the artist of an unsigned piece based on the techniques used to create it. Gallery owners are a tightknit group. Heritage Auctions turned to gallerist Nedra Matteucci, an expert of artists of the American West, to authenticate Carl Redin’s oil on canvas titled Aspens in Early Summer. Matteucci knew the artist and the work, partially because she purchased her gallery from a retired art dealer who sold the exact same painting years ago. The painting later sold for $3,585 at auction. To authenticate a landscape painting, experts turned to Dr. Norman Geske, the first director of the Sheldon Museum of Art in Lincoln, Nebraska, to confirm that a painting heading to auction was indeed Indian Encampment by Ralph Albert Blakelock. Blakelock’s radically Impressionist style was so far ahead of public taste that he was unable to sell any of his work; recognition only came as he languished in a mental asylum. After authentication, Indian Encampment sold for $42,500 at auction.

Aspens in Early Summer, Carl Redin

of President George Washington. The 6-by-4½ inch portraits were signed J.P. 1797, but the marks were deemed apocryphal (meaning they were of doubtful authenticity, although widely circulated as being true). A questionable label on the back of the drawings cast further doubt and the auction listing described the work in bold letters as “not being sold as an authentic Peale composition.” The diminutive portraits hammered for $61. So, the next time someone walks through your door with a “priceless Renoir,” stop and think which art authenticator you should call before talking terms.

How Art Authentication Can Save Your Reputation

If your business sells a painting claiming it is by a famous artist and it is not, you can be charged with defrauding the public. Forged signatures, fictional provenance, and fake gallery stamps are symptoms of the growing problem of art fraud. It takes a special eye and sometimes decades of experience to spot a fake. Such was the case when a seller consigned a pair of charcoal sketches of a man and a woman attributed to James Peale, who was famous for miniature still life paintings and a portrait

Eric Bradley is the author of 12 reference books on fine art and collectibles, including the critically acclaimed “Mantiques: A Manly Guide to Cool Stuff,” “Harry Potter - The Unofficial Guide to the Collectibles of Our Favorite Wizard” and two “Picker’s Pocket Guides: SIGNS & TOYS.” He is a nine-time editor of the annual “Antique Trader Antiques & Collectibles Price Guide,” America’s No. 1 selling price guide. A former editor and an award-winning investigative journalist with a degree in economics, he has appeared in The Wall Street Journal, GQ, PARADE and Bottom Line/Personal, among others. He is the Public Relations Director at Heritage Auctions, HA.com, the world’s largest collectibles auctioneer, and lives near Dallas with his wife and three children.

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National Pawnbrokers Association

certified pawn professional

10 CPP graduates receive their certificates at Pawn Expo 2018. L to R: James Gonzales, Pamela Wright, Tony Wood, Mark Schmidt, Randi Nell, Lisa Little, Johnny Frederick, Tim Collier, and Ric Blum

10 Pawnbrokers Earn Their CPP Designation

NPA’s Certified Pawn Professional (CPP) program is now in its fourth year and continues to attract new participants. Course offerings have been administered to over 130 pawnbrokers since its inception in 2015, with 21 of them completing the requirements to receive their CPP designation. Those who can now add “Certified Pawn Professional” to their bio include: Kara Blakeman, Classic Jewelry and Loan, Barboursville, WV Ric Blum, Ohio Loan Co, Inc, Dayton, OH Tim Collier, Pacer Ltd, Little Rock, AR Johnny Frederick, H & F Pawn, Killeen, TX James Gonzales, Brittex Financial, San Antonio, TX Lisa Little, Fieldstone Jewelry & Pawn, Conyers, GA Randi Nell, Big Dog Pawn, West Jordan, UT Mark Schmidt, Carson Jewelry & Loan, Carson City, NV Tony Wood, Old South Pawn, Macon, GA Pamela Wright, The Wright Pawn & Jewelry Co, Houston, TX

The CPP program covers a wide variety of topics that are essential to a pawnbroker’s business. Receiving the designation elevates the professional standards of the recipient, recognizing him/her as one who is committed to their profession. It can open opportunities for advancement, increase earning potential, improve business acumen, and build confidence in pawn knowledge. Courses are offered several times a year and include: nS tore Operations 28

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nM arketing, Advertising, and Public Relations nH uman Resources nP roduct Knowledge nF ederal Regulations nS ecurity, Risk, and Crisis Management

New candidates to the program must have at least three years of full-time work experience in the pawn industry and must complete the CPP application prior to registering for the first course. The CPP designation is obtained when a candidate completes the required number of courses, currently five out of six. Candidates have three years from the date of their first course to complete all required courses and they must recertify every three years in order to maintain their designation. NPA membership is not required for participation in the CPP program, but it is highly recommended, and members do receive a significant discount on the course fees. The cost for each course is $199 for members; $499 for non-members. So, why get certified if you already know how to do your job? Because it separates you from your peers and gives you the personal satisfaction that you have mastered your profession. And that’s a great return on your investment! For more information, visit NationalPawnbrokers.org/ about-the-cpp-program or email Helen Moore at Helen@ NationalPawnbrokers.org.

business solutions

Pawn Connections By Christian Steinbacher, Data Age Business Systems/PawnMaster

remember when Facebook first came to my attention back in 2005. My college classmates were talking about a website where you could connect with one another and post messages on each other’s “walls”. Our school had just become eligible to be part of this “social network” and I thought hey, why not sign up and see what this is all about. Little did I know that within a decade, this “Place for Friends” (Facebook’s original tagline) would expand into the real world of marketing and sales, eventually becoming the third most visited website in the world. I’ve been on Facebook since 2005, Twitter since 2009. There’s been dozen, if not 30

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hundreds, of other social media sites and platforms that have come and gone since then. Some for photos, some for selling items, some just for updating the weather, but they all have one thing in common – user engagement. Engaging with your customers in this digital age is more important than many of us realize. We are all connected online 24/7, absorbing information faster than ever before. You want your advertising to be where your customers (and potential customers) are, and right now, that’s online. There are 400 new users joining Facebook every minute. It’s a captive audience; they’re already going to be there. We all need to be engaging on social

media just as much, if not more, than our customers are on a daily basis. In this digital age, we’re more likely to use online listings to make an informed decision on something we’re looking to buy before making the exhausting journey from our couch to the store and back again. Social media sites recognized this and started incorporating ecommerce into their platforms. You can now log onto Facebook, “like” your aunt’s photo of her dog, comment on a friend’s status, and buy a new set of tires for your car, all without having to get out of your bathrobe. At Data Age/PawnMaster, we realized early on how important it was to connect and engage with our customers on social media. For us, it’s not just a place to sell ourselves or our services, but to educate our clientele as well. It should be no different for pawn store owners; you have a returning audience of clientele who know you and know your store. Start throwing photos of new arrivals up on your social media sites. Run a promotion, “Mention this Facebook ad and get 10% off your purchase.” Post a short video of your employees doing their daily duties. Your followers are going to notice and remember these engagements, cementing you further as a destination they want to frequent.

Making a statement and being memorable is the key to longevity on social media. I’ve seen some great videos and advertisements from various pawn stores and the connecting thread has been they don’t take themselves too seriously. Have fun with what you’re posting and you’ll see the “likes” start rolling in; after that comes the revenue. Promoting items may seem daunting when it comes to posting items you have for sale to social media sites, but there are solutions out there. We recently released an integration that allows our users to post in-store items directly to their Facebook Business page. Thinking of social media as another channel for you to advertise your items is important as more and more people turn to online sources to research and purchase their items. Social media will continue to expand and evolve, and we believe in it as a viable sales platform, so much so that we’ve integrated it into both our on-site and cloud products. Take your time getting to know the ins-and-outs of social media and soon you’ll be posting with the best of them.

Engaging with your customers in this digital age is more important than many of us realize. We are all connected online 24/7, absorbing information faster than ever before.

For 30 years, Data Age has offered industry leading financial transaction software solutions that enable businesses doing non-traditional lending, buy/ sell, check cashing, and even retailers to scale their organization, deliver exceptional customer service, capture data quickly and accurately, mitigate risk, adhere to regulatory mandates, manage employee challenges, and drive profitability. For more information, visit Dataage.com.

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National Pawnbrokers Association

book corner

Shoe Dog, A Memoir by the Creator of Nike Shoe Dog is the story of how Nike, one of the world’s most famous brands, was started. Written by Nike’s founder, Phil Knight, the memoir tells the tale of how he began with an idea to import Japanese running shoes in the 1960s at the age of 24. From $8000 in 1963 to over $30 billion in 2017, Phil Knight has created an iconic brand recognized all over the world. Some of the lessons shared in the book include: n I t takes time to build. nB e enthusiastic and talk to those who know. nB e a leader, not a manager. nS ometimes, luck is involved.

According to Bill Gates, Shoe Dog is “an amazing tale, a refreshingly honest reminder of what the path to business success really looks like. It’s a messy, perilous, and chaotic journey, riddled with mistakes, endless struggles, and sacrifice. Phil Knight opens up in ways few CEOs are willing to do.”

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by Phil Knight

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National Pawnbrokers Association

2018-2019 NPA Board of Directors

Officers

President, Tim Collier Pacer, Ltd Little Rock, AR

Tim is co-owner and managing partner of Pacer, Ltd. He founded the company in 1990 after a 10-year career in retail jewelry with Gordon’s Jewelers and several independent jewelers. He is president of the Arkansas Pawnbrokers Association and past GRC chair of the NPA. Tim and his wife, Lisa, have been married for 33 years and have three sons—Walker, and twins, Garrett and Griffin.

Vice President, Kathleen Barbee Lombard Financial Services Fort Worth, TX

As the Director of Operations and Partner of Lombard Financial Services, L.P., Kathleen is primarily responsible for the operations of the company. She has spent the last several years focusing on its growth strategy, as well as volunteering for various NPA endeavors. Kathleen is excited to utilize her experience to serve the membership of the NPA. She and her husband, Justin, who serves as the Director of Training and Professional Development for the company, have a son named Elliott, and two dogs, Sadie and Kerley, all of whom are avid TCU fans. Go Frogs!

Treasurer, Robert Anderson, CPA, CMA R & R Pawn Indianapolis, IN

Rob is CFO for R & R Pawn and holds professional accounting certifications in both the US and Canada. He is an Indiana CPA Society award winner for Leadership in Technology and serves as chair of the NPA Finance Committee. He is also Treasurer for the Indiana Pawnbrokers Association and an Advisory Board Member for St. Elizabeth Coleman Pregnancy and Adoption Services. Rob is married with three daughters. He plays and coaches ice hockey with USA Hockey, and his team has won the USA Hockey National Adult Pond Hockey Championship three years in a row (2012-2014).

Secretary, Kerry Rainey Bayou Pawn & Jewelry Hammond, LA

Kerry is the owner of Bayou Pawn & Jewelry, with three locations in Louisiana. He is an experienced jeweler with 33 years on the bench. Kerry is a second-generation pawnbroker and has three sons who work in the business with him. Kerry has been a member of the Louisiana Pawnbrokers Association for 27 years and has served as a board member, Vice President, and, currently, Secretary. Kerry and his wife, Sharman, along with their three sons, enjoy traveling and scuba diving.

Immediate Past President, Larry Nuckols Brittex Financial San Antonio, TX

Larry is a co-owner of Brittex Financial and formed Money Mart Pawn & Jewelry in 1993. He has served on the boards of Texas pawn associations for 25 years and currently serves on NPA’s Government Relations Committee. He and Beverly, his wife of 44 years, have two children and one wonderful granddaughter, Veronica.

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2018-2019 NPA Board of Directors

Board Members Edward Bean Suffolk Jewelers, Inc. Boston, MA

Ed is president of Suffolk Jewelers, Inc., in Boston and is also a lawyer. As a thirdgeneration pawnbroker, he has been in the business for 54 years. He is a founding member of the NPA, and was elected to its first board of directors in 1988. He is also a past president and served as chairman of the Government Relations Committee. Currently, he serves as chair of the NPA Strategic Planning Committee. He and his wife, Laurie, have three children and have been married for 17 years.

Douglas Braswell Braswell & Son Pawnbrokers Little Rock, AR

Douglas is the owner of Braswell & Son Pawnbrokers with four locations in central Arkansas. He is a second-generation pawnbroker who has worked in the industry for 25 years. Douglas is a Graduate Gemologist, a Past President of the Arkansas Pawnbrokers Association and Chairman of the Arkansas Pawnbroker Licensure Commission. He and his wife, Camille, have two teenage sons.

Chad Carter Chad’s Pawn Shop Lake Charles, LA

Chad is the owner of Chad’s Pawn Shop, with six locations in southwest Louisiana. He has been in the industry for 37 years and previously served as President of the Louisiana Pawnbrokers Association. Chad and his wife, Dana, have two children, Kip and Hollis.

Bill Dawson LDPM, Inc Morrisville, NC

As CEO of LDPM, Inc, Bill developed the Picasso Pawn brand consolidating 10 individually named pawn stores and seven different companies into one cohesive unit. Bill and his wife, Heidi, love to travel and a have a cat named Kiki. Bill is a graduate of East Carolina University and the GIA Diamonds and Diamond Grading program. He is also an avid Carolina Hurricanes fan. In his free time, Bill can be found either on the golf course or practicing his game.

Michael Goldstein Empire Loan Boston, MA

Michael Goldstein is the owner of Empire Loan, an eight-store pawn chain, operating in Massachusetts and Rhode Island. Originally from New York, he is a third-generation pawnbroker. Michael founded Empire Loan in 1985 and claims to be the first fully computerized pawn store in the northeast. Through the Empire Loan Charitable Foundation, founded in 2012, he and his staff have contributed over $360,000 to local non-profits. He and his wife, Allison, live in Concord, MA, with their three children.

Lauren Kaminsky E Z Corp New York, NY

Lauren Kaminsky is President of New York City multi-store operation, E Z Pawn Corp. She is a third-generation pawnbroker, and works closely with her father, David, and brother, Jason, to run their 14 stores. Lauren graduated from Boston University’s School of Management where she earned her Bachelor of Science degree in Business Administration and Entrepreneurship. She is also partners in the pawnshop-concept storefront, Beauty & Essex. Lauren is a graduate of GIA’s Diamond Essentials course.

Craig McCall DC Management Las Vegas, NV

Craig began the chain Pawn Plus/USA Pawn & Jewelry Co. in 1995 and is the past Vice President of the Oregon Pawnbrokers Association. He has spent many years on the Board of Directors of a publicly-traded bank and is a part-time instructor at the University of Nevada, Las Vegas Business School. Craig and his wife, Katie, have been married for 26 years and enjoy spending as much time as possible with their four children.

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2018-2019 NPA Board of Directors

Board Members

Brian Moulton National Jewelry & Pawn Durham, NC

Brian graduated from East Carolina University with a degree in systems engineering before deciding to get into the family business. In 2010, he joined his father at National Jewelry & Pawn, a 12-store operation in North Carolina, becoming a third-generation pawnbroker. He strongly believes we can change the negative perceptions of the pawn industry one customer at a time.

Boyd Naylor Bali Credit Corp San Antonio, TX

Boyd is President and co-owner of Bali Credit Corporation which operates five stores in the San Antonio area. Prior to founding the company in 2000, he practiced law in El Paso, TX, for 15 years. Boyd is a member of the State Bar of Texas and serves on the Texas Association of Pawnbrokers Board of Directors. He is married to Allison, whose family has been in the pawn business for almost 51 years. They have been married for 31 years and have three sons – Brooks, Jared, and Reagan.

Randi Nell Big Dog Pawn West Jordan, UT

As a second-generation pawnbroker, Randi worked at Big Dog Pawn in West Jordan, UT, whenever her parents would let her. After graduating from Utah State University in 2009, she went to work full-time in the family business. When not working, she loves spending her time outdoors with her boyfriend and dog either hiking or snowboarding.

Kathy Pierce Monster Pawn Bloomington, IL

Kathy works at Monster Pawn in Bloomington, IL, and has ownership in Midwest Exchange, also in Bloomington, as well as the Monster Pawn stores in Normal, Springfield, and Peoria in central Illinois. Kathy serves as the chair of the NPA Government Relations Committee. She and her husband, Edwin, have been married for 25 years and have three children, Everson, Annellia, and Tripper, plus two dogs, Max and Bunny.

Jordan Tabach-Bank Beverly Loan Company Beverly Hills, CA

Jordan is the owner and CEO of Beverly Loan Company in Beverly Hills, Jewelry-N-Loan in Costa Mesa, New York Loan Company in New York City, and Chicago Loan Company in Chicago. He is a member of the State Bar of California and serves as co-chair of NPA’s Government Relations Committee. He and his wife, Casey, have a son, a daughter, and a mutt named Wilbur.

Johnny Whiteside Kendale Pawn Shop Sanford, NC

Johnny and his wife, Tara, own and operate Kendale Pawn Shop in Sanford, NC. The store was opened by Tara’s father, Jimmy Johnson, in 1980, and Johnny has been running the store full time since 1986. A member of the North Carolina Pawnbroker Association for many years, he has served on the board in many capacities, including President multiple times. Johnny and Tara have been married for 32 years and have twin daughters, Rebecca and Katie, and four grandchildren.

Michael Willingham SMART Financial Enterprises Little Rock, AR

Michael Willingham is a Corporate Trainer for SMART Financial Enterprises, the largest privately held pawn operation in the United States based in Orlando, FL. SMART Financial operates locations throughout the United States and Canada. Throughout his career, Michael has learned from mentors and colleagues, and has the desire to invest in others, just as many have invested in him. For the past six years, he has offered a Radical Mentoring course to hand-selected students. He feels involvement increases awareness and action and hopes to foster that understanding in those he’s mentored.

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PAWN EXPO 2018

NPA Annual Award Winners Recognizing leaders in the pawn industry The NPA held its Annual Awards luncheon on Tuesday, July 10, 2018, at The Mirage Hotel in Las Vegas, NV, to honor members who have demonstrated superior leadership and service to the pawn industry. 2018 Pawnbroker of the Year NPA’s 2018 Pawnbroker of the Year Award was presented to Robert Anderson of R & R Pawn, Indianapolis, IN. As Treasurer for the NPA, Rob Anderson fills one of the most pivotal and time intensive, yet often most overlooked, Board of Director positions in the association. He is the most actively involved pawnbroker and executive officer in the NPA’s day-to-day processes and objectives, and the decisions he makes on a daily basis have a lasting impact on the financial health of the association. Rob also serves on the Indiana Pawnbroker Association’s Board of Directors and is a contributing author to several NPA publications. Additionally, he has committed time and resources to assist NPA members who have questions regarding financial structure, accounting, and financial processes.

Robert Anderson accepts the NPA Pawnbroker of the Year Award.

2018 Industry Partner of the Year Palak Diam has supported the NPA as an industry partner since 2005 and has sponsored countless events. Palak Diam was the 30th Anniversary sponsor for Pawn Expo 2017 and is the Keynote Speaker sponsor for Pawn Expo 2018. This sponsorship enabled the NPA, for the first time, to provide all attendees with the new book, “Never Lose a Customer Again,” which was published in April 2018. Palak Diam also serves on the new NPA Vendor Advisory Committee. With over eight decades of experience, Palak Diam has grown from a boutique family-run wholesaler into an internationally renowned diamond sales organization that is trusted and respected worldwide. Since becoming an NPA industry partner over 13 years ago, Palak Diam has become a leader among the diamondbuying vendors servicing the pawn industry and has

Tim Collier presents the Industry Partner of the Year Award to Ankur and Dipak Savani of Palak Diam.

assisted the NPA by providing industry expertise, insightful articles for National Pawnbroker and valuable feedback to NPA’s executive officers.

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PAWN EXPO 2018 2018 Young Professional of the Year NPA’s 2018 Young Professional of the Year Award was presented to Randi Nell of Big Dog Pawn, West Jordan, UT. The NPA Young Professional of the Year Award recognizes young professionals who have demonstrated exceptional success in their businesses and local communities and have made a significant contribution to the pawn industry during the previous year. Randi is a manager at Big Dog Pawn and studied at Utah State University. Her parents started Big Dog Pawn when she was 12 years old and, as a teenager, she worked in the store parttime. More recently, she has played a pivotal role in establishing, supporting, and building the NPA Young Professionals Committee, on which she’s served for the past three years. Randi currently serves as the committee’s co-chair, participates in the YP social media groups, and has dedicated her time and resources to reaching out to non-member young professionals to help strengthen and unite the next generation of the pawn industry. Since joining the NPA, Randi has regularly attended the annual Legislative Conference in Washington, DC, and is fully committed to

Randi Nell accepts the Young Professional of the Year Award from Tim Collier.

growing and innovating the family pawn business in West Jordan, UT.

2018 Outstanding Pawn Industry Image Award NPA’s 2018 Outstanding Pawn Industry Image Award was

Michael Mack, Max Pawn, Las Vegas, NV, is presented with the Outstanding Pawn Industry Image Award by Tim Collier. Joining Michael is Dawn Vonmendenhall and James McCracken.

presented to Max Pawn, Las Vegas, NV. The award was presented to Michael Mack at the Annual Awards luncheon on July 10, 2018. Max Pawn recently launched an intensive and targeted community relations campaign to promote a positive industry image by highlighting their charity efforts and free events. Using email, social media, local television, and local print media, Max Pawn advertised

the store’s free authentication and

coverage that emphasized the

Las Vegas” from the Las Vegas

co-branded events, an initiative

important role pawn stores serve

Review-Journal.

to sponsor a Make-A-Wish

in communities, while helping to

Foundation sports team, a Dress

dispel outdated or unfounded ideas

Industry Image Award is presented

for Success Ugly Sweater event,

about pawn stores and point out

annually to an NPA Pawnbroker

and an in-store clothing donation

their value as an alternative to other

or Affiliate member company

drive to benefit the Nevada

retail shopping outlets. Max Pawn’s

who creatively generates

Partnership for Homeless Youth.

The NPA Outstanding Pawn

innovative strategies resulted in a 23

positive awareness of the pawn

The campaign was successful in

percent increase in overall business

industry through a print or digital

generating positive media editorial

and a finalist award in the “Best Of

marketing campaign.

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PAWN EXPO 2018

Seth and Les Gold of American Jewelry and Loan are presented the Outstanding Community Relations Award.

2018 Outstanding Community Relations Award NPA’s 2018 Outstanding Community Relations Award

Lending Customers” course, now in its second year,

was presented to American Jewelry and Loan, Detroit,

represents a partnership with three national non-profit

MI. Seth and Les Gold, of TruTV’s Hardcore Pawn, ac-

organizations and is the only one of its kind.

cepted the award at the Annual Awards Luncheon on July 10, 2018. Celebrating 40 years of business in metro Detroit,

The Gold family is committed to supporting their community. Les frequently serves as a celebrity auctioneer and has raised $125,000 for Big Brothers Big Sisters

American Jewelry and Loan has a long history of

and almost $300,000 for Winning Futures, a youth

community involvement, which employs a three-tier

mentoring program. Seth served as Honorary Chair of

strategy of business leadership, financial literacy, and

the Wigs 4 Kids Gala. In addition to welcoming summer

charitable giving. Their Entrepreneurship Master Class

interns from The Jalen Rose Academy, American Jew-

provides low-cost training and mentoring to approxi-

elry and Loan contributed $10,000 towards the schol-

mately 50 aspiring entrepreneurs. As volunteer mentors

arship fund of this charter high school, which serves

for Junior Achievement, the Golds give freely of their

the children who live in the same neighborhood as their

time to attend high school “Shark-Tank Style” pitches,

Detroit store. To celebrate the company’s 40th anniver-

offering business wisdom and insights as well as seed

sary, they gave a $10,000 gift to Junior Achievement

funds from “The Gold Bank.” As part of their commit-

of Southeastern to establish ‘The Gold Bank’ which will

ment to workforce diversity, American Jewelry and

fund the entrepreneurial endeavors of Detroit’s youth

Loan provides meaningful employment to adults on the

for generations to come.

autism spectrum. The Golds recognize that financial literacy is an im-

The Outstanding Community Relations Award was created in 2015 and is presented to an NPA Pawnbro-

portant priority for the Detroit region and have worked

ker or Affiliate member company who advances the

to help educate their customers and others about

standard and quality of life in their community through

pawnbroking. Their “Financial Literacy for Alternative

public service or volunteerism.

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PAWN EXPO 2018

TURN VISION INTO ACTION Pawnbrokers from the U.S. and six foreign countries gathered at The Mirage in Las Vegas, NV, July 10-12 for Pawn Expo 2018. Some of the highlights of the three-day event included: n Joey Coleman’s opening keynote on The

Changing Face of the Customer and his general session, The First 100 Days n Future Shock: A Cash Business in a Cashless

Society, by Nikolas Badminton n A Pawnbroker’s Primer in Identifying Fake

Watches: Luxury or Lie?, by Jeffrey Hess n Employee Engagement and Your Company

Culture, by Cathy Gish n Say It Again, Leadership Isn’t Management,

by Los Ellis n The Future of the Secondary Diamond

Market, by Ezi Rapaport n FFLs – The Best Practices to Protect Your

Business, by Thomas Chittum n Emmett Murphy’s eCommerce and Selling

Online and Social Media Lab n Federal Compliance in 2018,

by Kathy Pierce and Fran Bishop n Retail Jewelry Crime in Context,

by David Sexton n Luxury Handbags, by Michael Mack, Max

Pawn, and Deanna Thompson, Entrupy n Pawnbroker Peer Roundtable sessions

on building your loan balance, advertising, dealing with law enforcement, and competing with Facebook and neighborhood buy/sell pages n Trade Show with 22 new vendors

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PAWN EXPO 2018

Pawnbrokers At Work and Play Pawn Expo 2018 attendees participated in education sessions, networked with old and new friends, and visited with their favorite vendors at the trade show.

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PAWN EXPO 2018

Pawnbrokers At Work and Play

National Pawnbrokers Association

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PAWN EXPO 2018

NPA Thanks Our Pawn Expo 2018 Sponsors

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National Pawnbrokers Association

Trust and Integrity Diamond and gemstone testers protect your business and reputation. We offer top selections at price points that meet your needs.

Visit Stuller.com/DiamondandGemTesters to see our complete line. Stuller.com

800 877 7777

membership

Have You Been Verified? Your NPA membership offers a Verified Member seal that you can easily add to your website. When a current or potential customer clicks on the seal, a dynamically-generated window will pop up with your company information, activity status, accreditation, and Google maps information. n S end an email to Connect@NationalPawnbrokers.org

Why should you add the seal to your website?

1. It builds trust with your customers. 2. It automatically links to Google maps so a new customer can find you. 3. It promotes your affiliation with NPA. 4. It’s free! To add the seal to your website:

n L og

n n

in to the Members Only area of the NPA website (NationalPawnbrokers.org). You will need your login and password information to do this. C lick on the Membership tab; then click on the first listing – “Verified Member Seal and Code”. C lick on the link to watch the video.

telling them you are interested in the program and include the information listed on the page (company info, membership details and status, website, pawnshop details). O nce NPA has verified the information, you will receive an email letting you know the seal is ready. C opy the code from the Verified Member Code page and paste it on your web page. The code will pull in the Verified Member seal icon. V oila! You’re verified!

If you have any questions, call the NPA office at (817) 337-8830.

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business solutions

National Pawnbrokers Association

FALL 2018

Firearms Liability Issues Tips to playing it safe

Submitted by Marshall & Sterling Insurance in conjunction with Lowers & Associates

awsuits against firearm dealers generally are filed under one of two theories: irresponsible distribution of firearms that arm those breaking the law and unsafe design of firearms. This latter category is applicable to not only firearm manufacturers, but also to firearm sellers. These categories are generally based on one of two causes of action: negligence of the firearm seller and a public nuisance cause of action. By far, the most frequent are allegations that a firearm seller was negligent in selling the firearm to the person that used it to injure him/herself or others. Examples of irresponsible sales that allow firearms to enter a criminal activity and cause harm to the party suing the pawn store can arise as follows: FALL 2018

National Pawnbrokers Association

business solutions

The sale of a firearm to an irresponsible party. This

could be a sale to a customer who is mentally unstable, intoxicated, or exhibits other dangerous signs at the time of the sale. Note that closed-circuit television (CCTV) video will come into play here most often. “Straw sales” to otherwise qualified buyers who are purchasing the firearm to give or sell to a prohibited party, such as a convicted felon, etc. Employees

must be trained not to allow this type of sale. When the person not purchasing the firearm picks out what will be purchased and acts with knowledge of the various firearms, a warning should go off that a potential straw purchase may be about to occur. Multiple and/or repeat sales. Under federal law, multiple

sales are defined as more than one firearm to an individual within five business days. Repeat sales of several firearms to the same person may be a sign of gun-trafficking. Federal Firearms Licensees (“FFLs”) are required by law to submit a separate report for any transactions involving the sale and transfer of multiple firearms. Missing Firearms. Many firearms that have been sold by dealers “off the books” were claimed in the 48

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Bureau of Alcohol, Tobacco, Firearms and Explosives (“BATF”) reports to be lost or stolen. A large number of “missing” firearms can be grounds of a court finding of public nuisance. One of the most important measures for a seller is to comply with ALL federal and state requirements to sell firearms. FFLs should be vigilant and proactive in legal compliance matters and also institute formalized training for all employees who sell firearms. The training should be recurring and be documented for all employees who sell firearms. Employers should also have an on-going compliance program spot check to verify employees who sell firearms are acting within federal, state, and local laws. Federal Law Provides Some Protection to Firearm Sellers

One federal law, The Protection of Lawful Commerce in Arms Act-15 U.S.C. sections 7901-03, may provide some relief to firearm dealers in the pawn industry. This law was passed by Congress in 2005 to attempt to shield firearm sellers and manufacturers from liability. This law bars the filing of new firearms cases against firearm dealers unless certain exceptions apply. This act is by no means a “free pass” when it comes

to firearm-related liability issues, however. The issues that will allow a firearm lawsuit to proceed, despite this federal law, are: an action against a firearm dealer for negligent entrustment or negligence per se; and an action against a firearm dealer who “knowingly” violated a state or federal statute applicable to the firearm sale and that violation was the cause of the harm. For a more detailed case study of this principal in action, we can examine the Badger Firearms lawsuit. Despite the federal law, in 2009, the court allowed a $6 million damage verdict to two Milwaukee police officers who were injured with a firearm that a local firearm shop sold to a straw buyer. For more information, please see the link at the end of this article. Thus, although the federal law may help protect firearm sellers from liability and its application should be argued by counsel for a firearm seller in any lawsuit brought, most law suits now allege either negligent entrustment or negligence per se to allow a case to go to trial and avoid a summary judgment finding.

n Instruct customers that after obtaining permission,

“Pawn, Sell, and Trade”

Train employees to use proper procedures to accept firearms from customers wishing to sell, trade or pawn. This includes safe handling of firearms and ensuring all firearms are unloaded. Firearm safety training is critical for all employees handling firearms. All employees must always assume a firearm is loaded and follow the proper procedures to ensure it is clear each time it is handled. Standard practice, such as keeping the barrel pointed in a safe direction and trigger discipline, must always be observed. For personnel carrying firearms, consideration should be given to including classroom and range training. Classroom training should include, but is not limited to: n Statutory requirements n Use of deadly force n Company policy on the use of force n Firearms safety n Safety practices both on-duty and at home n Written examination

As part of the pawn business model, it goes without saying that a shop can expect to not only see firearms heading out the door, but also being brought in by customers for pawning, sale, trade, or even gun-smithing services. Some risk-reducing measures to consider: n Make sure conspicuous signs are posted on all entry

doors telling customers that bringing loaded firearms into the store is strictly prohibited. Optimally, exterior signage should instruct patrons to advise and seek instructions from staff BEFORE bringing any firearms into the store. When this type of rule is obeyed, it allows an opportunity for staff to prep for the transaction, as well as give one last reminder to ensure the firearm is unloaded. n As another early layer of defense, post a guard at

the door to ask each customer if they are bringing a firearm into the store and checking to make sure it is not loaded. At a minimum, if a guard is not feasible, ensure that all customers are properly greeted upon entering the store, and inquire if they plan to conduct a transaction with a firearm. Do not assume since you do not see a customer carrying a firearm, that they do not have it tucked in a pocket or carried loosely in a purse.

all unloaded firearms should be carried into the store in cases or containers. Ammunition should not be brought in at the same time or in the same container. In addition, if the pawn store sells ammunition, it should be stored separate from firearms and out of the reach of customers.

Range training should include, but is not limited to: n Shooting stance n Breathing control n Trigger control (Continued on Page 52)

FALL 2018

National Pawnbrokers Association

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business solutions (From Page 49)

Firearms Liability Issues Physical and Procedural Security Measures for FFL Pawnbrokers

It has been stated that each year the BATF receives thousands of reports of theft/loss from federally licensed firearms dealers. As a pawnbroker, the risk of criminal activity for those that deal in firearms increases for those individuals targeting that aspect of the business. In many incidents, the criminal will spend a considerable amount of time casing (evaluating) the business to determine their weaknesses or vulnerabilities only to later try and capitalize on them. While it may be impossible to eliminate all risk, as a pawnbroker with an FFL, there are many ways to reduce the risk by â&#x20AC;&#x153;hardening the targetâ&#x20AC;? and making criminals think twice about their activity. The following are considered the best practice physical security and procedural controls to reduce that risk. While some of the following measures require time and capital expenditure, others can be implemented at no cost and in little to no time. Only show one firearm to a customer at a time. If the customer requests to see another firearm, that firearm should be adequately secured prior to showing the otherÂ one. Install trigger locks or plastic ties on all firearms; at a minimum, on all firearms on display. In addition, trigger locks should be available for purchase where firearms are sold in accordance with federal law. Ensure that the showroom floor/retail firearms storage/display area is constantly staffed while customers are in the store. Generally, two employees are recommended. Note: CCTV coverage alone would not suffice for the mere presence of an employee. All firearms should be removed from displays when no customers are present, before or after business hours. All perimeter doors should be locked during this time and if the premises alarm system is set up in such a manner, the premises perimeter contacts should be armed. If it is not feasible to secure all retail long guns in a secure room at night, low value retail long guns may be left in the showroom if there is adequate facility perimeter hardening (i.e. doors, walls, roof, other accessible openings, etc.) and the long guns are adequately and securely cabled to a fixed structure (i.e. 52

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wall) within the showroom during non-operational hours. All showcases should be secured with a high security lock and remain locked when not in immediate access. Smash-resistant glass or glazing should be installed on the top and all four sides in order to slow access to firearms and deter thieves, forcing them to spend minutes, rather than seconds, breaking through. In addition, all firearms should be adequately and securely cabled to a fixed structure (i.e. wall or showcase) within the showroom during operational hours. All permanently issued access control devices (keys, cards, alarm codes, combinations) should be issued formally by receipt, to include the date, signatures of the persons involved, and a statement advising the recipient of their responsibilities to protect the device. A register should be used to document the location and issuance of all access devices providing access to the facility and firearms storage (to include access device storage containers). All locks (entrance and those providing access to firearms), alarm codes, and combinations should be routinely changed annually or sooner if an access code holder is terminated, there is suspected compromise, or there is a change in employment status where the person issued no longer requires such access. Restricted access keys should be audited monthly, where the daily activity does not suffice for accountability, with the results documented. Ensure all ingress/egress facility access points, firearms transaction areas, firearms storage (i.e. showcases, safe/vault, etc.) and handling areas (i.e. gun-smithing) are covered by adequate CCTV camera coverage. Make sure video recordings are

retained for at least 30 days. Should any incidents occur, they should be reported for insurance purposes. In addition to the 30-day storage of video recordings, these incidents should be saved on a separate storage device for future use and investigative purposes. Follow state and federal requirements pertaining to legally accepting or transferring firearms from customers, to include the proper reporting, serial number checks, and actions related to suspicious sellers. A register of all firearms should be kept on-site to include the make, model, caliber, serial number, and other identifiable features of the firearm. Furthermore, all firearms should be audited (inventoried) under dual control (by two people) on a specified and frequent basis. Ensure the layout of the store allows for unobstructed views of all firearms and remove any items that may cause blind spots.

“second amendment friendly” and permissive of carry in their stores. While this may be the case, continue to ensure safe practices are made known and enforced. Ensure that all firearms remain holstered at all times. Firearm aficionados can be eager to show off their new “pieces” or latest custom modifications. While firearm handling safety is of primary concern here, also consider how an onlooker might view this scene from a distance. In the worst case, this could be mistaken as a robbery in progress! Badger Firearms lawsuit: http://archive. jsonline.com/watchdog/watchdogreports/ wounded-officers-lawsuit-against-badger-gunssettlesfor-1-million-b99632780z1-361609031.htmI

Other Considerations For more information, contact: Scott Sweeney, Marshall & Sterling Insurance, (800) 333-3766, x2247, ssweeney@marshallsterling.com. For Lowers & Associates, call (540) 338-7151.

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FALL 2018

National Pawnbrokers Association

multi-store owner profile

Easy As Pawn Over half of all NPA pawnbroker members are part of a multi-store operation. To get a closer look into all the decisions that are made on how, when, or if you should expand your pawn business, we are featuring a series of articles on pawnbrokers who own more than one store.

n southwest Louisiana, thereâ&#x20AC;&#x2122;s a chain of pawn stores where decisions are made based on the individual first and the item second. Chad Carter is the owner of Chadâ&#x20AC;&#x2122;s Pawn Shop and he believes in kindness and showing his customer empathy. That philosophy has helped him grow his business from one store in 1994 to six stores in 2018. Chadâ&#x20AC;&#x2122;s Pawn Shop takes a number of items in on pawn including firearms, jewelry, tools, electronics, and car stereos. Their primary marketing method is social media, specifically Facebook, Craigslist, Letgo, eBay, and Facebook Marketplace. With stores in Lake Charles, Sulphur, Jennings, and Deridder, keeping 42 employees up-to-date and on the same page can be tricky. Training is

National Pawnbrokers Association

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key and must be uniform throughout the company, Chad emphasizes. His operations supervisor uses meetings, emails, and group texts to keep everyone informed. Other challenges of a multi-store company are security and personnel. Chad says a state-of-the-art alarm system with at least three keyholders available at all times is a must. Staying in contact with employees to ensure they are happy is vital to keeping key positions filled. When they do need to hire someone new, he looks for a nice smile, an upbeat attitude, and an engaging personality. New hires have been found through in-store advertising, social media, Indeed.com, and Monster.com. Knowing when to expand your operation can be a tough decision.

Chad considers several factors when contemplating a new location: traffic count, population, employment rate, and the average income of the area. The time is right when he has the right management team in place. Before opening a new location, the

management team is trained in an existing location first. “It takes a complete management team effort to expand including an inventory auditor, a social media person, an operations supervisor, and an office manager. Each person plays a role in opening a new location,” Chad says. The second store is the hardest to open, according to Chad, because you expect everyone to work like you do. “Communication is key and the procedures need to be the same at every location,” he shares. Chad’s future plans include continuing to offer long-term career opportunities while opening new locations and remaining profitable.

“It takes a complete management team effort to expand including an inventory auditor, a social media person, an operations supervisor, and an office manager. Each person plays a role in opening a new location.”

Chad Carter is a member of NPA’s Board of Directors. For more information on operating a multi-store business, contact him at chadcarterlpba@yahoo.com.

- Chad Carter

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National Pawnbrokers Association

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community involvement

Lauren Hopper shares her FBL story with Pawn Expo 2018 attendees. Lauren was sponsored by Sue’s Pawn Shop – Tack Shop, Benton, AR.

2018 FBL Scholarship Winners NPA’s Future Business Leaders (FBL) scholarship program proudly announces the ten winners of this year’s $1000 scholarships:

Recipients Haley Bobbitt

Lauren Hopper

Sponsor: Sylacauga Pawn Shop, Sylacauga, AL

Sponsor: Sue’s Pawn Shop – Tack Shop, Benton, AR

Rachel Carbary

Julia Newberry

Sponsor: Double Eagle Pawn Shop, Spokane, WA

Sponsor: Johnson Brothers’ Jewelry & Loan, Mansfield, OH

Emily Clark

Avery Renshaw

Sponsor: Carson Jewelry & Loan Inc, Carson City, NV

Sponsor: Porter’s Pawn & Bargain Center, Mountain Home, AR

Savannah Garris

Areli Rodriguez

Sponsor: Sylacauga Pawn Shop, Sylacauga, AL

Sponsor: Sunbelt Pawn, Houston, TX

Austin Hipps

Josie Williams

Sponsor: Larry’s Jewelry & Pawn, Florence, AL

Sponsor: Sylacauga Pawn Shop, Sylacauga, AL

FALL 2018

National Pawnbrokers Association

community involvement

2018 FBL Scholarship Winners

Avery Renshaw receives a $1000 FBL scholarship as a result of her nomination by Porterâ&#x20AC;&#x2122;s Pawn & Bargain Center, Mountain Home, AR.

Emily Clark accepts a $1000 FBL scholarship check. She was nominated by Carson Jewelry & Loan, Carson City, NV.

Areli Rodriguez is the recipient of a $1000 scholarship. She was sponsored by Sunbelt Pawn in Houston, TX

Since 2003, the FBL scholarship fund has

If you would like to contribute

To learn more about the

presented more than $150,000 in scholarships

to the FBL scholarship fund,

FBL scholarship program,

to deserving students. All scholarships

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visit NationalPawnbrokers.org

are completely funded through NPA

contribution to:

and click on the Community

member donations and are given annually

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Relations tab.

to the children, grandchildren, customers,

Attn: FBL Scholarship Fund

employees, or individuals sponsored by an

PO Box 508

NPA member in good standing.

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National Pawnbrokers Association

FALL 2018

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National Pawnbrokers Association

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3/27/18 1:08 PM

FALL 2018

National Pawnbrokers Association

state news

State Association Updates

INDIANA Greg Engstrom, President Indiana Pawnbrokers Association gregengstrom@hotmail.com

It’s summer, the best time of the year for a day off, a barbeque, and relaxation. While we are enjoying summer, our legislators are in meetings planning for the upcoming session at the State House. The work done during the summer will determine what goes on the schedule and what new statutes will be proposed. This is a good time to attend a fundraiser or two so that you can meet your legislator, one-on-one, in a relaxed atmosphere. The Indiana Department of Financial Institutions (DFI) changed the renewal cycle for pawnbrokers this year and all pawnbrokers in the state will actually get six months free. The renewal for pawn licenses will be December 2019 instead of June. The reason for the date change is to streamline the renewal process for all who are regulated by the DFI so they all renew on the same date. This does leave a question about everyone’s bond, which renews around May or June each year. There needs to be no change with your bond as it is not a state agency (insurance company). It just has to be effective when you renew your license (along with other conditions). Renew your bond as normal and enjoy the savings from the DFI. The number of pawn shops in Indiana has decreased a bit. This indicates less interest in new store openings and an increase in retirements and acquisitions from past years. Pawn stores have more business when the climate is difficult for consumers. Right now, unemployment is low and there is a lot of available work, so employers are struggling to fill jobs. The environment for bargain shopping has also waned as tool and electronics prices continue to decline. There is less interest in second-hand goods because many lower-income consumers now have the ability to buy new. The part of the business that has declined

the most, and is noticed by all of us, is the decline in jewelry being pawned and sold as well as a decline in the demand for fine jewelry in general. (Note the closing of many brick and mortar jewelry stores, which is in the thousands nationwide). This perfect storm has forced most pawnbrokers to get down to being pawnbrokers, not scrap dealers or the like. Just do what is right and best for your customers while providing excellent service and building your business methodically.

OHIO Raphael Tincher, President Ohio Pawnbrokers Association raph@tedspawn.com

The Ohio Pawnbrokers Association (OPA) has been closely monitoring the saga of HB123 (Payday/ Title Lending Reform) and the companion proposed constitutional amendment (Short Term Consumer Loan Protection Act). Currently, HB123 has been passed and is headed to the governor’s desk for signing into law. This will close the credit service organization (CSO) loophole in Ohio and should end title-lending. There are now some severe restrictions on payday lenders as well. This should lead to a return of many customers who chose convenience over cost, and if signed shortly, will go into effect around November 1 of this year. We expect the proposed constitutional amendment (which in its resubmitted form does not cover pawn loans) to be dropped. In other news, new court cases and legal actions continue to develop. We will keep you informed via the OPA group email. There will be no meeting or continuing education this fall. We will have our next one in late winter/early spring. Please call or email if I, or any board member, can be of assistance. FALL 2018

National Pawnbrokers Association

member news (From Page 8)

National Pawnbrokers Association New Members Georgia The Gold ATM • Atlanta Arrowhead Pawn Shop, Inc • Jonesboro A1 Action Cash • Eatonton Kansas

Participating in The Marketplace and Pawn Expo 2018

A-OK Pawn Shop • Wichita (2) Kentucky The Exchange LLC • Russellville

Booth # 411

Louisiana Walker Pawn & Jewelry LLC • Walker American Pawn • Baker Michigan Fort Jewelry & Loan • Lincoln Park Missouri

We specialize in buying all types of Diamonds and Jewelry, including melee, fancy and high-end single stones.

Elite Gun & Pawn LLC • Bolivar North Carolina Carolina Silver & Gold • Greensboro Capital Cash Pawn • Raleigh South Carolina City View Pawn Shop • Anderson Texas Houston Pawn • Sugar Land Lonestar Cash Inc • College Station College Station Pawn • College Station H&W Pawn Shop LLC • Odessa Bill’s Pawn & Jewelry, Inc • San Antonio Benny’s Pawn Shop • El Paso (2) Benny’s Pawn Shop • Socorro

Come by our booth! Mitesh kothari (914) 433 2384

Houston Pawn & Jewelry • Stafford Cash Presto Pawn • Arcola Cash Station Jewelry • Brenham Washington The Diamond Banque • Bellevue INTERNATIONAL Presta Me • Costa Rica

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CashWiz Cayman • Cayman Islands Superloans Ltd • Wellington INDUSTRY PARTNERS Cal Gem Labs • San Diego, CA Glines & Rhodes • Attleboro, MA Jewel Mart • Cicero, IL Marque Supply Company • Irvine, CA Podium • Lehi, UT The Perfect Princess Cut • Las Vegas, NV

National Pawnbrokers Association

FALL 2018

pawnder this

Uh, I’m Not Really Sure

strange thing happened this past summer. After employing college kids for summer internships for the last two decades, I finally got a new perspective…from my daughter. And it’s an eye opener for sure. My daughter is now a sophomore at Texas Tech University in Lubbock. This past summer, she worked four days a week for an awesome company in the Dallas area that’s focused on creating fan apparel for high school parents around the country. For an aspiring graphic designer, it was a match made in graphic design heaven. She even 66

National Pawnbrokers Association

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worked for a Texas Tech alum, which made the internship even more meaningful. So, all in all, it was a great work experience with a group of people who I hope will be outstanding professional contacts for her down the road. And, yes, I told her to write hand-written thank you notes. And, yes, I gave her insight on good ways to stay connected to them when she went back to Lubbock. I’m crossing my fingers she actually does both. You never know what kids hear – or listen to – when you’re passing along such sage advice. I’d say about 12 percent of it sinks in, which

may be a bit on the high side. Each year, I give it my good old college try in helping guide a new crop of interns in the ways of the force. The work force, that is. I’m no Jedi Master when it comes to having all the answers, but after working for more than three decades in numerous roles, at numerous jobs, and for numerous bosses, I do have some tangible wisdom to impart. The first and last thing I tell all of them – regardless of what they’re planning to do in their careers (and we’ll get to that in a bit) – is to go sell something as soon as humanly possible. Doesn’t matter what you sell, but sell something to someone who didn’t expect your call. I wish someone had told me that when I was a college sophomore thinking about my next steps. Sell something even if it makes you uncomfortable. Sell something even if you don’t plan to be in sales. Sell something and learn everything about human nature, I tell them. Sell. Sell. Sell. How many follow suit? Well, if my daughter is any indication, my big plea about selling goes over as well as me asking her what a SnapChat story is or who this Lamar Kendrick is. Wait, you’re saying it’s Kendrick Lamar? OK, got it. The most amazing and beatmy-head-on-my-desk frustrating thing about talking with most summer interns is their answer to the following question: “So, what do you want to do when you graduate?” Seems like a logical question, especially when talking with an intern with only a semester or two left in their college journey. The answers are almost always the same . . . “Uh, I’m really not sure.” So, let me get this straight. You paid how much for your classes,

books, housing, food, beer, and pizza for the last four or so years, and you’re still clueless on next steps? I always feel obligated to walk over to them and thump them on top of their clueless heads and then call their parents and tell them to ask for a refund. But my cooler head prevails and I just tell them to go sell something immediately. College interns are great. I’m not entirely bashing them here. After all, college interns stepped forward for the internship and that’s worth something. And college interns are typically forced to do a lot of stuff that has absolutely nothing to do with their major – like filing, sorting, running errands, or organizing. Basically, all the items the lowest person on the totem pole wants no part of. Now that my own daughter has her first college internship under her belt, I’ve got a brand new perspective. I’m proud of her for working during the summer while most of her friends spent three months tanning or playing Fortnite. And I’m proud of her for finding something in her chosen field after just her freshman year. Did she come home at times saying she was bored at work? Yeah, sure she did. I told her that’s natural because sometimes we tend to forget to find work for the interns. Did she come home at times marveling at how little work some of the full-time workers did? Yep. I told her to get used to that for the next few decades. Did she build up a nice little war chest of cash reserves? Heck yeah. But in a few more years, when I ask her that all-important question, here’s hoping the answer is a bit more detailed than, “Uh, I’m really not sure.” Anything other than that and I’ve done my job as a parent. FALL 2018

Now that my own daughter has her first college internship under her belt, I’ve got a brand new perspective. I’m proud of her for working during the summer while most of her friends spent three months tanning or playing Fortnite. And I’m proud of her for finding something in her chosen field after just her freshman year.

National Pawnbrokers Association

calendar of events OCTOBER 2018

California Pawnbrokers Association Convention October 26-28, 2018 Omni Rancho Las Palmas Resort and Spa Rancho Mirage, CA Contact Kim Andosca: KAndosca@amgroup.us Californiapawnbrokers.org

FEBRUARY 2019

Texas Association of Pawnbrokers Convention February 22-24, 2019 Embassy Suites by Hilton Houston Energy Corridor Houston, TX Contact Tammi Springett: Texasap25@gmail.com Texasassociationofpawnbrokers.com

MARCH 2019

Dixie Conference and Trade Show March 22-24, 2019 Perdido Beach Resort Orange Beach, AL Contact Nick Fulton: Nickfulton@comcast.net Dixieconvention.com

APRIL 2019

2019 NPA LEGISLATIVE CONFERENCE April 30 - May 1, 2019 The Liaison Capitol Hill Washington, DC Contact Dana Meinecke: Dana@NationalPawnbrokers.org

JULY 2019

Pawn Expo 2019 July 9-11, 2019 The Mirage Hotel & Casino Las Vegas, NV Contact Helen Moore: Pawnexpo@NationalPawnbrokers.org PawnExpo.com

index of advertisers 3 CLiCk Media 50 (212) 365-0691 3clickmedia.com Aagam Creation and Aria Diamonds 9 (248) 961-0506 (404) 474-1563 ABC Diamond Buyer 23 (586) 354-7274 abcdiamondbuyer.com Atish Diamond 56 (212) 938-1005 Bluestone Trading Company Inc Back Cover (888) 800-BLUE (2583) bluestone-trading.com Bravo Pawn Systems 12 (888) 407-6287 bravopawnsystems.com Cal Gem Labs 32 (619) 269-6737 jagilab.com Certified Pawn Professional (CPP) 55 (817) 337-8830 nationalpawnbrokers.org Data Age Business Systems/ PawnMaster 29 (888) 949-7296 pawnmaster.com Di-Moksh Diam, Inc 45 (213) 479-3023 dimokshdiam.com Diamonds and Jewelry Services 62 (973) 303-8389 DiaTrendz 18 (866) 337-7464 thetrendz.biz Electronic Transfer 50 (800) 757-5453 electronictransfer.com FCP Diamonds 50 (774) 203-6796 fcpdiamonds.com Geib Refining 60 (800) 228-4653 geibrefining.com Gemological Institute of America 61 (800) 421-7250 gia.edu Hoover & Strong 51 (800) 759-9997, ext 164 hooverandstrong.com International Gemological Institute Inside Front Cover igionline.com

Jewelers Mutual 7 (800) 558-6411 jewelersmutual.com Mid-States Recycling & Refining 23 (800) 551-0083 midstatesrecycling.com NPA Legislative Conference 61 (817) 337-8830 nationalpawnbrokers.org Padmavati Exports Inc 5 (212) 869-0544 padmavatiexportsinc.com Palak Diam 59 (213) 228-0077 palakdiam.com Pawnbroker Financing 8 (303) 373-1300 pawnbrokerfinancing.com paysouth.com/partners/npa Rapaport Auctions 16 (212) 354-9100 rapaportauctions.com Saumil Diam 65 (212) 575-3655 saumildiam.com Shri Diamond Inc 11 (212) 840-0650 Simplex Diam Inc 26 (212) 883-0888, ext 1007 simplexdiam.com Sparkle & Dazzle LLC 60 (212) 789-9088 sparklendazzle.com Stallcup Group 3 (817) 479-3880 stallcupgroup.com Star Buyers Inc 33 (201) 720-1000 starbuyersinc.com Stuller, Inc 44 (800) 877-7777 stuller.com Surya Capital LLC 56 (800) 242-7766 diamondmelle.com United Precious Metal Refining, Inc. 65 (800) 999-FINE (3463) unitedpmr.com Wexler Insurance Agency Inside Back Cover (800) 432-1853 wexlerinsurance.com

The NPA does not specifically endorse any entity including but not limited to exhibitors and advertisers; makes no representations, warranties, or guarantees; and assumes no responsibility for the products or services provided by these entities. The NPA expressly disclaims all liability for damages of any kind arising from the use or the performance of the products or services provided by these entities.

National Pawnbrokers Association

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