National Pawnbroker Summer 2017 by National Pawnbrokers Association

Official Publication of the National Pawnbrokers Association

Celebrating 30 Years

SUMMER 2017

for

Social Media No-Nos Succession Planning for Pawnbrokers

ALSO: Identifying Lab-Grown Diamonds

message business from the sense president

Thank You...

Larry Nuckols NPA President

It has been an honor to serve as the NPA President for the past two years. I have had the privilege of serving on the board with some of the finest pawnbrokers in the country. We have faced a number of challenges, and it has only been through the efforts of many talented people that we have been able to fight our way through. Our biggest challenge, and our biggest loss, has been our fight with the Military Lending Act (MLA) issue. We used tactics that worked for us successfully in 2007, but we were unable to claim victory again because of the new power of the CFPB and their unwillingness to take our concerns into consideration. This led us to the decision to file the first-ever lawsuit by the NPA. While we are disheartened that we did not prevail, we are determined to continue seeking relief with the new administration. We are also working on several new programs that should make living with compliance issues much easier. The association is in a strong financial position that will allow us to continue fighting for the rights of pawnbrokers across the country. We have a very fine association staff in Keller, TX, and a great legislative team working for us in Washington, DC. I mentioned in the Trend Survey press release that “Pawnbrokers’ core business is making collateral loans. However, we depend on retail sales to liquidate defaulted collateral.” As the industry faces new challenges, such as declining brick and mortar retail sales and lower gold and diamond prices, we are working to put together programs that will assist our members in meeting these challenges. We are also looking at ways to help members improve their retail competitiveness. Succession planning is another issue that many pawnbrokers are facing. Dr. Geralyn Miller has provided an article in this issue and she will be discussing the topic in more detail at her education session at Pawn Expo 2017 this July in Las Vegas. Thank you for your support of the NPA. I look forward to seeing everyone at Pawn Expo 2017!

SUMMER 2017

National Pawnbrokers Association

Table of Contents

SUMMER 2017

Cover Story Pawn Expo 2017: Powered Up Page 34

43 Contributors for this issue of National Pawnbroker

highlights Identifying Lab-Grown Diamonds Succession Planning for Pawnbrokers Social Media No-Nos

Fran Bishop Dollar Pawn

40 54

Marc Chamberlain FBI NICS Liaison

In this Issue Message from the President

Message from the Executive Director

Business Solutions 10 Ways to Reward Your Employees Rapaport Diamond Insights Understanding the Value of Fancy Shapes Read the Signs Hiring the Right Employee Compliance NICS E-Checks Continue to Increase AML Compliance Course Government Relations 2017 Legislative Conference Recap Member Spotlights Young Pawnbroker to Watch Pawnbroker Industry Partner Behind the Scenes

Jamie Hasty SESCO Management Consultants

Rudy Klancnik

14 22

Avi Krawitz The Rapaport Group

27 30 43

48 59 6 8 12 16 46

Member Benefits How Do We Communicate? CPP Program Update

10 61

Member News I Remember When... Pawnbroking Around the World NPA 2017 Membership Awards New NPA Members Annual NPA Membership Meeting State Association News Book Corner Pawnder This Calendar of Events Advertiser Index

21 51 56 60 63 64 47 66 68 68

Geralyn Miller 5th Street Pawn Emmett Murphy 3 CLiCk Media James Shigley GIA

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 Helen@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. © 2007-17 National Pawnbrokers Association: PO Box 508, Keller, TX 76244 • (817) 337-8830 • NationalPawnbrokers.org EDITOR: Margie Swoyer, Director of Communications & Marketing, Margie@NationalPawnbrokers.org DESIGNED BY: SPARK Publications

National Pawnbrokers Association

SUMMER 2017

message from the executive director

Support the Pawn Expo Exhibitors As this issue goes to press,

we are deep into the preparations for Pawn Expo 2017. It could take a village to put on the pawn industry’s only national convention and trade show, but we do it with a staff of five and lots of additional help. We understand that you must leave your store for a number of days to attend the conference, potentially losing Dana Meinecke, revenue and incurring many costs NPA Executive – hotel, food, travel, and, of course, Director registration fees. NPA incurs those costs as well and, unfortunately, the expense of putting on Pawn Expo continues to rise. Event space, food and beverage costs, and hotel rates are all escalating every year. Thankfully, the Pawn Expo exhibitors have provided exhibit and sponsorship dollars to help alleviate some of those costs to help keep the registration fees at a reasonable level. However, the relationship between NPA members and exhibitors must be beneficial to both parties. You are in the business of making a living and so are the exhibitors. To help cement that business relationship and to keep it growing, make sure you visit the trade show floor. Meet with the exhibitors and learn about their products or services to see if what they have to offer will benefit your business. Bring your diamonds and visit the diamond buyers. The exhibitors are there to sell or buy products, and if they do not get adequate activity, they will find another show where their promotional dollars will generate a higher return. It is critical to the association, and to future NPA events, that we support them. It’s also important for you, our NPA members, to be able to meet with your peers, become educated on industry best practices, and have the opportunity to see, hear, and feel the latest products and services at the trade show. That’s why we have put together a convention that will hopefully provide you with as much bang for your buck as possible. We’re celebrating our 30th anniversary at this year’s Pawn Expo, and it’s an experience you will not want to miss. Register now at PawnExpo.com and we will see you in July!

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SUMMER 2017

NPA STAFF

Dana Meinecke Executive Director Dana@NationalPawnbrokers.org

Helen Moore Director of Membership Helen@NationalPawnbrokers.org

Robbie Ellis Director of Meetings and Events Robbie@NationalPawnbrokers.org

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

Marliss Allen Communication and Education Administrator Marliss@NationalPawnbrokers.org

Mailing Address: PO Box 508, Keller, TX 76244 Physical Address: 891 Keller Pkwy, Ste 220 Keller, TX 76248 Phone: (817) 337-8830 Fax: (817) 337-8875 NationalPawnbrokers.org

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Government Relations

2017 Legislative Conference Recap During the last week of April 2017, nearly 60

NPA pawnbroker members traveled to Washington, DC, to learn, share, and make a difference by visiting their respective Members of Congress. Regardless of whether it is at City Hall or the U.S. Capitol, there is no one better than you to tell your unique story in order to preserve the businesses we rely upon to support our families and employees, and serve our customers. On Monday, April 24, early-arriving pawnbrokers attended meetings with the NPA Government Relations Committee (Team GRC) and Board of Directors. Team GRC welcomed input from everyone in discussions about next steps and directions to take on behalf of the pawn industry. That evening, the NPA hosted a dinner on behalf of Arkansas Senator Tom Cotton, who serves on numerous committees, including Armed Services, Intelligence, and Banking. The Senator’s background covers a wide range of experiences, from growing up on an Arkansas cattle farm to Harvard Law School to serving five years on active duty as an Army Infantry Officer before being elected to the Senate in 2014. The NPA pawnbrokers attending were honored to have time with him. The official opening of the Legislative Conference began early Tuesday morning. We had many firsttime attendees this year, so it was a good opportunity to cover the fine art of getting your point(s) across. We welcomed two presenters from The

National Pawnbrokers Association

SUMMER 2017

Public Affairs Council who spoke on “Successfully Communicating Your Message on Capitol Hill” and “Becoming a Year-Round Advocate for Your Industry”. Emmett Murphy, 3CLiCk Media, and NPA lobbyist Cliff Andrews, CapCity Advocates, filled in any blanks and held a Grassroots Advocacy Q & A session. Our luncheon guest speaker was Chris Brown, Deputy Chief of Staff for Missouri Representative Blaine Luetkemeyer, Chair of the Financial Institutions and Consumer Credit Subcommittee of the House Financial Services Committee. Chris has been the point man for Rep. Luetkemeyer’s office on the efforts to put a stop to the “Operation Choke Point” bank discontinuance dilemma. His commentary on “The Hill” and interactive conversation was appreciated by all attendees. Team GRC led the afternoon session discussion of the talking points and objectives to cover with our congressional representatives and their various staff members on the next day’s Hill visits. A Tuesday evening reception was hosted by Jack Brown and James Decker of Mid-States Recycling and Refining, and provided an opportunity for everyone to meet and talk about the next day’s mission. A contingent of pawnbrokers also attended an NPA-hosted dinner in honor of Rep. Leutkemeyer. Rep. Leutkemeyer is a community banker from a small town of around 300 and understands the role of small business and the pawn industry to the nation’s communities.

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Government Relations On Wednesday morning, pawnbrokers, armed with NPA info packets in hand, headed off to their Hill appointments with their respective Senators and Representatives. It is always great to see the support we receive while in our nation’s capital. Among the many issues discussed with our Members of Congress was the effect that overly-burdensome and overreaching federal agency regulations, practices, and actions have on small businesses. For instance, Operation Choke Point has caused a great many NPA member pawnbrokers to lose longstanding banking relationships and continues to pop up. We also pointed out

Attendees At The 2017 NPA Legislative Conference AL Fran Bishop AR Dale Barber Douglas Braswell Douglas Braswell, Jr. Tim Collier Michael Johnson Michael Willingham CA Jordan TabachBank Diane Taylor CT Alex DeLucia DC Jessica Barakat DE Scott Paulsen

MD Michael Cohen

GA Ben Levinson Alexandria Little Lisa Little

MI Seth Gold

IL Lexi Lodes Robert McCullough Kathy Pierce Aaron Schoeneman David Schoeneman Kelly Swisher LA Chad Carter Chase Rainey Kerry Rainey MA Edward Bean Michael Goldstein Marc Gundersheim Christopher McCarthy

NC Bill Dawson Heidi Dawson Bob Moulton Brian Moulton Johnny Whiteside OH Raphael Tincher NV Craig McCall Mark Schmidt NY Lauren Kaminsky Goldman Eli Weinger Jason Weinger

OR Adam Anundi Beth Anundi Josh Oller SC Roger Hunnicutt James Starnes TX Boyd Naylor Beverly Nuckols Larry Nuckols Christopher Upton UT Randi Nell VA Cory Brown Mark Brown

(Continued on page 57)

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National Pawnbrokers Association

Young Pawnbroker to watch

James Starnes American Pawn Exchange Greenville, SC

The Best Advice I’ve Ever Received: Your character is of the utmost importance. It can never be taken from you.

Years in the Pawn Industry: 6

Biggest Career Goal: To gain credibility in the industry

My Advice to Pawnbrokers Just Joining the Industry: Be humble and kind. We are a last resort for some people. When they leave your store, they should feel it was the best decision they ever made.

Industry Certifications: GIA Certified, Certified Pawn Professional (CPP)

When I’m Not at Work I… Like to play soccer and golf. My down time consists of eating Skittles and playing with my Rottweiler.

My Media Mix: Musical Artists: Johnny Cash, The Beatles Social Media: Twitter TV Shows: Modern Family, Parks and Recreation, Mad Men

People May Be Surprised to Know That I… Have a strong dislike for country music and BBQ chips…even being from South Carolina!

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SUMMER 2017

My Role Model Is: My dad; he has been my rock and unfaltering support in pawn and life. He has taught me primarily through example: unrelenting kindness, humility, and integrity - all of which I find to be extremely important in the industry. He’s more than a role model… he’s my hero.

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member benEfit

2-4-6-8 How do we communicate? Communication

[kuh-myoo-ni-kay-shuhn] • the imparting or interchange of thoughts, opinions, or information by speech, writing, or signs • a document or message imparting news, views, information, etc.

Communicating to our members is one of the things that NPA does best. We talk, print, mail, email, or post because we want you to have the latest information about the world of pawn. There’s a lot of news to disseminate, so we share often. We have even been told we share too often (gasp!). However, it is our mission to keep you as educated and informed as possible about any event or news that may affect your business.

How do we do that? We host conferences.

The NPA hosts two member conferences every year giving you the chance to meet your peers, legislators, and vendors face-to-face. The NPA Legislative Conference, held every April in Washington, DC, provides the opportunity to meet with congressional leaders and to learn more about the legislative process. Pawn Expo is the annual conference and trade show held every July in Las Vegas, NV. This three-day event offers education, networking, and the opportunity to visit with suppliers of pawn-related services and products.

and services, and enlightening articles to help you become more successful in your business. The NPA Insider, the monthly member e-newsletter, is emailed to all members on the second Thursday of each month and includes member news, press releases, and information you need to know about the association. We email you.

When there is something going on in Washington, DC, that could affect your business, members are emailed a Legislative Alert. With the alerts, you have the knowledge as soon as possible so you can make the best decision for you and your company. We send you mail.

Sometimes information needs to be written out with detailed text and pretty pictures all delivered in your mail box. The NPA often uses postcards and other direct mail correspondence to let you know about upcoming events or activities that require you to take action.

We publish a magazine and an e-newsletter.

We post on social media.

For some people, email and mail are old school. To make sure those people get the latest NPA information, we post on Facebook, Twitter, and Instagram. Make sure to follow us on Facebook: National Pawnbrokers Association Twitter: @PawnTweet Instagram: national_pawnbrokers Each quarter, members receive National Pawnbroker magazine in the mail. The issue is filled with information on legislation, pawn products

National Pawnbrokers Association

SUMMER 2017

No matter how you like your information, we’ve got you covered!

SUMMER 2017

National Pawnbrokers Association

Pawnbroker Spotlight

Beverly Loan Company Pawnbroking from coast to coast Jordan Tabach-Bank is the owner and chief

executive officer of three, soon-to-be four, pawn stores in the U.S., including Beverly Loan Company, which has been a member of NPA since 1990. National Pawnbroker (NP): Tell us about

your company.

Jordan Tabach-Bank (JTB): I am a third-

generation pawnbroker; my grandfather founded Beverly Loan Company in Beverly Hills, CA, in 1938. I, along with my partners, also own New York Loan Company in New York City, NY, Jewelry-N-Loan in Costa Mesa, CA, and the forthcoming Chicago Loan Company in Chicago, IL. Jewelry-N-Loan is a more traditional jewelryfocused pawn shop catering to retail clients. The other three businesses are financial institutions located in the upper floors of AAA office buildings to ensure the confidentiality and safety of our clients and their collateral. NP: What is your title and primary role? JTB: As the owner and chief executive officer, I

am responsible for every facet of the business. The buck stops here. While I run rather low volume shops, the average loan amount is significant and the collateral is often complicated. NP: What makes your stores different from other

pawn stores in the area? JTB: Many shops lend against diamonds, gold jewelry, and fine watches, but we also have expertise in auction-worthy contemporary art, handbags, and memorabilia. Further, we are entrepreneurial, quick to act, highly discreet, and there is virtually no limit to the amount we can lend. How many pawnbrokers can say they have made a 6-figure loan against cases of Domaine de la Romanee Conti (arguably the world’s finest wine) or a 7-figure loan on a red diamond? Not many!

National Pawnbrokers Association

SUMMER 2017

Morgan Pansing

Jordan Tabach-Bank, the “Pawnbroker to the Stars”, stands in front of an original Ross Bleckner painting at New York Loan Company located on 47th St in Manhattan’s famous Diamond District.

NP: In your opinion, what are the biggest

challenges facing pawnbrokers today? JTB: I have always believed that the stigma of pawn is our biggest challenge. If lawmakers really understood that we are not predatory and that our loans are nonrecourse, we would be treated very differently. I have made it a personal goal to debunk the myths associated with pawn and to improve the industry’s tarnished reputation. With the help of the NPA, I think we are well on our way. NP: What is your biggest challenge as a

business owner?

JTB: Running businesses 3,000 miles apart is

certainly a challenge, but I think we are managing it very well. Being absentee owners took some growing pains, but now we are a well-oiled machine with lots of frequent flyer miles. NP: What advice would you give someone just entering the business? JTB: Run every penny through the company’s books. Having clean financials will allow you to secure a banking relationship, and access to capital

Pawnbroker Spotlight is a game changer in our industry. I treat my business as a highly regulated financial institution that happens to see a lot of beautiful, tangible personal property, not as a retail jewelry store that happens to lend out dollars.

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NP: What is your favorite thing about being a pawnbroker? JTB: I have attended dinner parties with A-list actors, politicians, scientists, hedge fund managers, and professional athletes …but by the end of the meal, what I have found is that people are most fascinated with my line of work. There is no doubt I have a desk job, but it’s never boring! NP: What changes would you like to see in the industry in the next 10 years? JTB: I’d like to see our reputation continue to improve, so that we will no longer be considered a regulatory risk by banks and a predatory lender by lawmakers. It is all about educating the public about nonrecourse, asset-based lending, or pawn lending. And despite being on the high end, I do not fear the term “pawn”. Rather, I embrace “pawn”, and I genuinely hope that over the course of the next decade, others will feel the same way.

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NP: Why are you a member of NPA? JTB: I am not only a member of the NPA, but

I also sit on its Board of Directors and I am the co-chair of its government relations committee. I believe that all of the hours and money I have given to the NPA have been returned tenfold by providing my business with government advocacy and education. On account of my membership, I have personally built lifelong friendships with fellow pawnbrokers from across the country. You can’t put a number on that.

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NP: Tell us something about yourself that would surprise us. JTB: A loan made by Beverly Loan Company helped fund a very famous dot-com. Which one? You’ll never know, but many of you have used it. There is a reason that our clients have trusted us for 80 years. We never name names!

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BUSINESS SOLUTIONS

10 Ways to Reward Your Employees Without Spending a Fortune No matter how much your employees may love their job, there are some days when it’s tough to keep a positive attitude. The phone doesn’t stop ringing, the project has gotten off track, or they have had more than their share of unhappy customers to deal with. As the boss, you can offer recognition or a reward to let them know you understand how difficult their job can be and that you appreciate all they do for you and the company. According to a study conducted by the Cicero Group in 2013, there is a strong connection between recognition and job satisfaction. In fact, seven of ten employees who were recognized for a job well done said they were happy with their jobs. And happy employees stay at their jobs longer and perform better overall. While money is always a welcome option, there are other ways to compensate your employees that won’t cut into your bottom line. Here are some low-cost (or no-cost) ways to reward the staff.

National Pawnbrokers Association

Shopping Trip When a goal has been met, provide employees with shopping time and funds to spend just on themselves. For example, when 50 Pawn Expo booths have been sold, Dana Meinecke, NPA’s Executive Director, can take the NPA staff to the nearest shopping mall and give each staff member $50 to spend on themselves - in 50 minutes or less. Impromptu Time Off On a beautiful day when the work is slow, give employees a few hours off (or the whole afternoon) just to enjoy the weather. Company Logo Wear Print up ball caps or shirts with the company logo and give them to employees when they have done something special. Surprise Lunch Out Take your employees out to lunch. Let them pick the restaurant and don’t talk about work.

SUMMER 2017

(Continued on page 60)

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National Pawnbrokers Association

Industry Partner Spotlight

Hoover & Strong A century of recycling

Torry Hoover President, Hoover & Strong

Hoover & Strong is a precious metals manufacturer of jewelry products and has been in business for over 105 years. Jay Hoover and Harry Strong founded Hoover & Strong in Buffalo, NY, in 1912. The company’s original venture was the recovery of platinum from industrial light bulbs, refining the metal, and selling it to the local platinumsmiths. Located in North Chesterfield, VA, the company offers its customers the ability to create beautiful and eco-friendly jewelry using their Harmony brand of over 30,000 jewelry products made from recycled metals or Fairmined and Fairtrade metals. We talked with company president, Torry Hoover, about what trends the company is seeing and how they are facing challenges in 2017.

jewelry demand. Young people are opting for non-traditional wedding jewelry, such as tattooed bands, titanium bands, or just not getting married. Fashion jewelry is being replaced by high-end costume jewelry, iPhones, iPads, designer purses, shoes, and vacations. Our challenge has been to expand in a shrinking industry. We look at adding new product lines. Most recently, we’ve added 500 new bands that were introduced in our new catalog that came out in May. We are also focusing on manufacturing jewelry for jewelry designers by not only casting, but assembling and setting jewelry. Lastly, we look at acquisitions to increase sales and market share.

National Pawnbroker (NP): What new

TH: Because we have our three divisions of

trends are you seeing in the jewelry industry?

Torry Hoover (TH): We continue to see halos

and delicate engagement rings with diamonds dominating the bridal space. Yellow and rose gold are making their way back, but white gold and platinum are still queen. Ethically and environmentally sourced jewelry is still a growing trend and important for young brides. Lab grown diamonds are more popular now. With the same chemical, physical, and optical properties as natural white diamonds, lab grown diamonds are beautiful and affordable; a great option when used with Harmony recycled gold. NP: What are your biggest company challenges? TH: A shrinking jewelry industry and shrinking

National Pawnbrokers Association

SUMMER 2017

NP: What makes your company different from

your competitors?

refining, mill products, and jewelry, we can offer jewelers many products and services that others can’t. For example, a pawnbroker or jeweler can send in scrap jewelry with diamonds. We can refine the metal, remove the diamonds, grade or sort them, and buy or broker the diamonds using our online diamond auction. This enables the customer to get the best price for their gold and diamonds. Many customers then use their refining credit to buy our solitaires and earrings, which allows them to get additional discounts on our products. NP: How does Hoover & Strong keep up with

changing technology in the industry?

TH: I remind our team that we have been in

business for 105 years because we don’t act like

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Industry Partner Spotlight an old company. Just within the last five years, we have greatly expanded our diamonds and diamond services, our Cad/Cam and 3D printing capabilities, casting services, assembly and finishing, and added over 500 new wedding bands and machine set diamond bands. NP: What has been Hoover & Strong’s key to success? TH: Our key to success has been our commitment to offering the highest ethically and environmentally sourced products, made in America, to the jewelry industry. We offer 100 percent recycled gold, platinum, palladium, and silver in 30,000 products. We have the greenest refinery in the world by using 80 percent less chemicals, with zero water discharge. We offer Canadian, recycled, and lab grown diamonds. And we offer Fairmined and Fairtrade gold and silver, which allows jewelers to give back directly to small miners. NP: How do you give back to your community?

TH: Hoover & Strong is proud to contribute to

many local organizations, facilities, and charities that nurture children, support the arts, and help families in need, which are listed in our catalog. We do other fund-raising events for coworkers in need, friends of coworkers, and our local community. NP: Why are you a member of NPA? TH: We enjoy being part of NPA because it’s an

organization that shares our values. It’s got a nice family feel where members are encouraged to build relationships and do business with each other. Of course, integrity, helpfulness, and quality are a big part of NPA. NP: How can NPA members learn more about

Hoover & Strong’s products and services? TH: Visit our website at Hooverandstrong.com. We also have two catalogs that we will send, upon request, which detail all of our refining, diamond and jewelry manufacturing services, mill products, findings, and bands.

SUMMER 2017

National Pawnbrokers Association

pawn expo presenter

Identifying Lab-Grown Diamonds by Dr. James E. Shigley, GIA Distinguished Research Fellow

Synthetic diamonds have been extensively studied over the past three decades, and much is known today on how they are artificially grown and identified by gemological laboratories. They are now being made available in increasing quantities for jewelry use. Based on more than 60 years of research, we know that synthetic diamonds can be identified by the Gemological Institute of America (GIA).

Gem-quality synthetic diamonds are more available in today’s jewelry marketplace than ever before, causing both interest and concern among jewelers about whether these laboratorygrown gems can be identified by gemologists or gemological labs. We have studied synthetic or ‘man-made’ diamonds extensively over the past 30 years, and we know a great deal about how they’re produced and how they can be recognized. Some people might refer to synthetic diamonds as imitations or simulants, but this is incorrect. Imitations like cubic zirconia or synthetic moissanite—which only look like diamonds—have very different chemical and physical properties. This allows trained gemologists to recognize them readily. However, synthetic diamonds are much harder to detect because their chemical and physical properties correspond very closely to those of natural diamonds. In some cases, a trained gemologist can recognize these synthetic diamonds by using standard gemtesting equipment. In other instances, positive identification must involve testing the diamond using advanced scientific instruments at GIA. Natural diamond crystals formed millions—

National Pawnbrokers Association

SUMMER 2017

Dr. James E. Shigley

Synthetic diamonds are much harder to detect because their chemical and physical properties correspond very closely to those of natural diamonds. sometimes billions—of years ago deep in the Earth, at depths of 100 miles (160 km) or more, and were brought up to the surface much later by explosive

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S P E C I A L I Z

Easy Name...EasyEasy Business...Easy Name...Easy Business... Name...Easy Business...Easy Name...Easy Busin

$95 - $130 for .09 and below mix melee • $95 - $130 for .09 and below mix melee Easy Name...Easy Business...Easy Name...Easy Business...

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I N

M E L E E

Brown

- $500 .45 and below* Business... S PName...Easy E C I AWe L I pay Z E $150 I Business...Easy N M E L E for E .09 -Name...Easy Easy

$95 - $130 for .09 and below mix melee • $95 - $130 for .09 and below mix melee

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S P E C I A L I Z E

I N

M E L E E

$95 - $130We for .09 below mix melee • $95 - $130 for .09 below mix melee payand $95 - $130 for .09 and below mixand melee*

Please visit us at Pawn Expo, Las VegasBusiness... Easy Name...Easy Business...Easy Name...Easy (sieves 11 plate and below) $95 - $130 for .09 and below mixConvention melee • $95 - $130 for .09 and below mix melee • Dixie CAPA Annual Trade We pay $150 - $500 for .09 -Name...Easy .45 andShow below* Business... Easy Name...Easy Mix Melee Parcel Broken, Chipped orBusiness...Easy Damaged Brown •or Midwest Imperfect BaguettesConvention & Single Cut Mix Fancy CAPA Spring Conference Pawn * Prices may vary due to quality. $95 - $130 for .09 and below mix melee • $95 - $130 for .09 and below mix melee

S P E C I A L I Z E Mix Melee Parcel

Mix Melee Parcel

I N

M E L E E

Broken, Chipped or Damaged

Brown or Imperfect

Baguettes & Single Cut

Mix Fancy

info@ABCDiamondBuyer.com | Detroit, MI | 586-354-7274 | www.ABCDiamondBuyer.com Broken, Chipped or Damaged

ABC Diamond ad H.indd 1

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volcanic eruptions. These eruptions formed narrow vertical pipes of an igneous rock called kimberlite. Kimberlite pipes are mined to recover the diamonds, and the ore is mechanically broken down to free the crystals. The amount of diamond in kimberlite is very low—perhaps one part per million—so miners must process large amounts of ore to recover the diamonds. Natural diamonds grow under a range of temperature and pressure conditions. The temperatures are higher than those used to grow synthetic diamonds. At high temperatures, diamonds grow as octahedral crystals, but in the lower temperatures of the laboratory, they grow as crystals with both octahedral and cubic faces. Synthetic diamonds are grown over a very short time—several weeks to one month or more—under conditions different from natural diamond formation deep in the Earth. Because of the very short growth period, the shape of a synthetic diamond crystal is very different from that of a natural diamond.

4/24/17 2:43 PM

Over the past few years, a growing number of companies have begun production of synthetic diamonds for jewelry use. There have been continued improvements in their clarity and color, as well as increases in carat weight. Considering the high incidence of synthetic diamonds in news reports, GIA encounters only a small number of synthetic diamonds. To identify gem materials of all kinds, a trained gemologist uses several kinds of gemtesting equipment, including a refractometer, an ultraviolet fluorescence lamp, a binocular microscope, a polariscope, and additional testing tools. As synthetic diamond quality improves further, it’s becoming more challenging to separate them from natural gems using standard equipment. While even a trained gemologist may not be able to recognize synthetic diamonds, they can be identified by GIA.

SUMMER 2017

National Pawnbrokers Association

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Member News

I Remember When… As NPA celebrates its 30 years of helping pawnbrokers and the pawn industry, we asked a few longtime members to share what the NPA was like in the early days.

“I went to one of the early NPA conventions and had the pleasure of sitting next to Charles Jones at a cocktail reception. We had an animated conversation with a fair amount of booze. After an hour or so, he asked me to join the NPA Board of Directors and go hunting on his ranch. Things were a little more informal back then.” Rick Sussman Northwestern Loan Company Baltimore, MD

“One of my favorite times was the when the show was in San Francisco and the Saturday night event [included] everyone piling on trolley cars and driving all around downtown. Each car had an open bar. Wow - what a time was had!” Mark Bolles Burrell Printing Pflugerville, TX

“The NPA wasn’t always the solvent, well-run organization it is today. Back in our beginnings, the association was funded solely by board member contributions. There were often times when board members would get a call late in the day from the Administrator or President informing us that funds were needed immediately to pay a bill or three. On one occasion, the ED [Executive Director] at the time ran out of money just as the convention bills were piling up. Then President, Charles Jones, and board member, Paul “Doc” Kilgore, had to take a red eye to Chicago (our then HQ) to make a bank deposit and get the bills paid so the convention could go forward. Then there was the time when we rented the Hard Rock Café in Las Vegas for the evening. A group of senior board members got together and put on a choreographed performance of Aretha Franklin’s song “Respect” in drag, complete with pink boas and gee-strings. They set a record that night by raising over $27,000 in donations.

The same group was called back for an encore performance a year or so later, and brought in another $20,000. [In 2005], Hurricane Katrina devastated New Orleans and many surrounding areas. NPA members came together that year to contribute to the relief efforts. Led by Brian Smith, Nick Fulton, Bill LaPointe, Jackie Kinlaw, David Newman, and a few other NPA members from around the country, we ended up with a couple of tractor trailers full of supplies which we then delivered to the more severely-affected areas. The NPA, with the help of some California members, organized and funded the rescuing of 174 animals as well, all of which were either placed in new homes or reunited with their owners.” Dave Newman Cash Loan, Inc/South City Pawn South San Francisco, CA

SUMMER 2017

National Pawnbrokers Association

BUSINESS SOLUTIONS

Diamond Trading Improves Industry Adjusting to Lower Inventory and Lower Price Points By Avi Krawitz

Given the global nature of the diamond industry, what happens in one center has ramifications for all other trading hubs. That was certainly the case as diamond dealers gathered in Hong Kong for the Diamond, Gem & Pearl show in early March. The show is well-timed. Coming at the end of the first quarter, it serves as an important measure of Far East demand following the Chinese New Year, and is the first major indicator of global dealer demand in the new calendar year. The trade was encouraged on both counts, as the show demonstrated that Chinese jewelers were looking for goods again after being absent from the market for some time, and that inter-dealer trading was also steady. Conditions favored buyers, since suppliers were willing to compromise on prices in order to reduce stock and generate much-needed cash flow. Price trends varied across categories and sizes, as reflected by movements in the RapNet Diamond Index (RAPI™). RAPI for 1-carat diamonds edged up 0.1 percent

National Pawnbrokers Association

SUMMER 2017

in March. RAPI for 0.30-carat diamonds increased 4.2 percent, while RAPI for 0.50-carat diamonds declined 1.9 percent. RAPI for 3-carat diamonds grew 2.7 percent during the month (see chart). The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best-priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIAgraded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network. Prices for small melee and diamonds under one carat in low and medium qualities significantly improved due to increased demand from China, and as the negative impact of India’s demonetization policy – the government program that eliminated 500- and 1,000-rupee notes, drying up liquidity in the domestic diamond and jewelry market – diminished. Rapaport sold 87 percent of goods on offer at its melee auctions in Hong Kong, which signaled that melee prices had bounced back. The Rapaport Melee Index (RMI™) rose 13 percent during the first quarter (see chart).

BUSINESS business SOLUTIONS sense

Cautious Quarter

Shift to Lower Price Points

Despite the improvement in March, dealers were mindful of the cautious trading environment, as the first quarter was not as upbeat as in previous years. The first three months of the year generally see a sharp rise in activity — and a positive price trend — as jewelers restock inventory they sold during the Christmas and Chinese New Year seasons. This year, trading was relatively quiet in January and February. RAPI for 1-carat fell 1.1 percent in the first quarter as dealers and jewelers are managing their inventory even more carefully than before. Jewelers are owning less inventory than they used to, and they’re also replacing their highervalue inventory with lower-priced goods, dealers at the Hong Kong show reported. Those trends are stemming from both the U.S. and Chinese retail market, with jewelers taking care not to get stuck with too much inventory as they have been in the past two to three years. There’s been a clear destocking trend among the major jewelry retailers. The U.S. jewelry market is consolidating, with more stores closing than opening each quarter, according to the Jewelers Board of Trade. Similarly, in the Far East, jewelers have slowed their expansion into China, requiring fewer goods than before.

With lower stock requirements from jewelers, buyers in the diamond market are more selective than before. Jewelers are also shifting to lower price points, with Signet Jewelers and Tiffany & Co. noting strength in the fashion-jewelry segment in their recent annual reports. The Hong Kong show signaled that larger jewelers in the Far East are also shifting to lowerend products, which are their fastest-selling items. Whereas before, the market in Hong Kong and China was characterized by better-quality VVS- to VS-clarity diamonds, today Hong Kong is competing with the U.S. for SI-clarity and piqué goods. Industry Concerns

Suppliers have noted that this is putting additional pressure on their operations, as the range of goods that are in demand has narrowed. Their greater concern remains the tight profit they are able to garner, with profit margins eroding slightly in the first quarter of 2017 as rough prices firmed by 2 percent to 3 percent. The industry needs to work collectively to enable higher polished prices, stressed Praveenshankar Pandya, chairman of the Gem & Jewellery Export Promotion Council (GJEPC), during the “Mines

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National Pawnbrokers Association

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BUSINESS SOLUTIONS to Market” conference in March, marking the council’s 50th anniversary. Stagnant polished prices are not only limiting midstream profits, but are also influencing greater caution among the banks lending to the industry, Pandya explained. He called for greater cooperation between the mining and trading sectors, with others at the conference highlighting the importance of the Diamond Producers Association (DPA) succeeding in its marketing efforts. In addition to midstream profitability, understanding synthetic diamonds’ place in the market emerged as a recurring concern at the conference, along with ensuring that the industry meets the transparency, ethics, and compliance standards demanded by the banks, retailers, and regulators. Martin Rapaport, chairman of the Rapaport Group, stressed that the diamond trade must sharpen its focus on transparency and traceability of supply, noting that markets would be identified and segmented based on the sourcing legitimacy of

National Pawnbrokers Association

SUMMER 2017

people, products, and money. “You are responsible for every aspect of what you buy and sell,” Rapaport said. “If you don’t know and can’t show where your product comes from, you should not be buying or selling it. The future is bright for those that operate ethically, transparently, competitively, and efficiently.”

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.

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National Pawnbrokers Association

BUSINESS SOLUTIONS

Understanding the Value of Fancy Shapes by White Pine Trading

The value of a diamond can vary greatly depending on its shape, an element of valuation that is often overlooked and underestimated in its importance. While diamond shapes largely draw customers due to both current trends and personal preferences, they also play a large role in defining particular aspects of a diamond, such as brilliance and surface area. The unique characteristics of each fancy shaped diamond impact its individual value tremendously. Fancy Shaped Diamonds

Despite their exclusive-sounding name, a fancy shaped diamond is any diamond other than a round cut. Round cut diamonds account for approximately 75 percent of the market, while fancy shaped diamonds make up the rest. Fancy shaped diamonds are typically cut to obtain maximum yield from an odd-shaped rough diamond. Fancy Shaped vs. Round Diamonds

Round diamonds are much easier to cut, and are usually produced using automated machines. This method of cutting allows all of the facets in a tier to be cut to the same angle and depth, creating close to ideal brilliance. On the other hand, fancy shaped diamonds must be cut, at least in part, by hand. Since this is

extremely time consuming, fancies are primarily found in larger sizes. This method also requires creation of a variety of angles to get the facets to come together.Â Popular Fancy Shaped Diamonds

Princess: This is the most popular fancy shaped diamond, particularly for engagement rings. Similar to round cut diamonds, princess cut diamonds are a good choice for their ability to complement most ring styles. Oval: A modified brilliant cut, the oval cut possesses a similar brilliance to a round. However, oval cuts have the added advantage of an elongated shape, which can create the illusion of greater size. Marquise: A football-shaped, modifiedÂ brilliant cut, the marquise diamond is long and narrow. It can also create the illusion of greater size. Pear: A combination of a round and a marquise shape, with a tapered point on one end. Cushion: A square cut with rounded corners that resemble a pillow. This classic cut has been around for almost 200 years and has gained more popularity in recent decades. Emerald: The unique look of the emerald cut diamond is due to the step cuts of its pavilion and its large, open table. Instead of the sparkle of a

SUMMER 2017

National Pawnbrokers Association

BUSINESS SOLUTIONS

SHAPES

Preferred

TOO LONG

1.50-175:1 >2.00:1

Heart

TOO SHORT 1.10-1.25:1

Emerald 1.00:1 >1.25:1 <1.00:1

1.00:1 >1.25:1 <1.00:1

Marquise Triangle

Pear

1.75-2.25:1 >2.50:1

<1.50:1

1.33-2.66:1 >1.75:1

1.10-1.25:1

1.50-175:1 >2.00:1

<1.50:1

Oval > = greater than < = less than

brilliant cut, emerald cut diamonds produce a hall-of-mirrors effect, with interplay of light and dark planes. The emerald cut shows inclusions (or imperfections) more than other cuts, so higher clarity diamonds are preferable. Asscher: Similar to the emerald cut, but in a square shape with larger step facets, a higher crown, and a smaller table. This combination often produces more brilliance than the emerald cut. Radiant: The first rectangular cut to have a complete brilliant cut facet pattern applied to both the crown and pavilion, creating a vibrant and lively diamond. Heart: A unique and unmistakable symbol of love, more popular in solitaire pendants than rings these days. Unique Fancy Cuts: Jewelers frequently create new shapes, either for a custom order or to suit a particular rough. Though it is fairly common

National Pawnbrokers Association

SUMMER 2017

to come across unique fancy shapes such as a triangular or kite-shaped diamond, these styles do not typically cross over into the mainstream world of diamonds, except being used for side stones on a larger center stone (e.g. half moons). Importance of Proportion Ranges

Proportion ranges are much greater for fancy shaped diamonds than rounds. Shape appeal counts highly in the proportion grade, but it is difficult to evaluate. It requires a judgment based on your knowledge of diamonds, in general, and the particular shape in question. Ratios and depths are especially important in grading fancy shaped diamonds because of their impact on a stone’s ability to create sparkle and brilliance. Above is a chart, published originally by the GIA, outlining the ideal proportion ranges for various fancy shaped diamonds.

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BUSINESS SOLUTIONS Value Factors

As with all diamonds, the 4 Cs largely determine a diamond’s value. An overview of the 4 Cs is below: Carat: A unit of weight used to measure diamonds. Today, a carat is equal to exactly 0.2 grams, about the weight of a paper clip. Cut: Cut refers not to a diamond’s shape, but to its proportions, symmetry, and polish. Cut grade is the most important factor in determining the overall appearance of a diamond because a poorly cut diamond will seem dull even with excellent clarity and color. Color: The color grading of most diamonds is based on the absence of color. A perfect diamond is completely colorless and, therefore, commands a higher value. Clarity: Refers to the absence of inclusions and blemishes. While no diamond is completely free of inclusions, the closer it comes, the more valuable it is. In addition to the 4 Cs, the value of fancy shaped diamonds is subject to additional market forces.

Some fancies, such as the princess, have recently drastically reduced in value because buyers are now looking for perfection in cuts and proportions, which can be difficult to achieve in some fancy styles. Conversely, the popular oval shape has experienced a spike in value because current trends have created greater market demand for this style.

If you are unsure about the value of your fancy shaped diamonds, contact the experts at White Pine. White Pine’s experts buy all sizes, shapes, and qualities of diamonds, including broken and chipped. If you have diamonds or diamond jewelry that you would like to sell, schedule an appointment with their experts by phone: (646) 791-3777 or email: services@whitepinediamonds.com.

SUMMER 2017

National Pawnbrokers Association

BUSINESS SOLUTIONS

Read the Signs Important tips for outdoor signage “Sign, sign, everywhere a sign”

So go the lyrics from Five Man Electrical Band’s 1970s song “Signs”. While the song was a commentary about oppression, signs actually convey a needed message in a retail environment. According to the U.S. Small Business Administration, signage is the most effective form of advertising for a small business. Your potential customer has just a split second to make a decision about your business – good, bad, or indifferent. So as a business owner, you want to make the best impression possible in the least amount of time to

National Pawnbrokers Association

SUMMER 2017

attract that customer to your store. There are a number of things to think about when creating a store sign: 1. What are the local zoning regulations and restrictions, if any, regarding size, color, and materials? 2. W hat is the message you are trying to deliver - get name recognition, give directions, highlight a product? 3. What material do you want to use – fabric, metal, plywood, neon, rock, glass, or something else? 4. W hat is your budget? Signs can range from several hundred dollars to tens of thousands of dollars.

BUSINESS SOLUTIONS According to the International Sign Association, there are four elements of good signage – placement, the right size, height, and illumination. Placement

The table at the right shows what researchers [1] learned about how far a car at different speeds will travel from the time a driver first sees the sign until the car safely comes to a stop. This assumes the sign is mounted perpendicular to the roadway and includes the amount of distance needed to read a typical sign and make a decision to stop. If the sign is mounted on the front of the building parallel to the roadway, research shows it needs to be at least 70% larger than the sign mounted perpendicular to the roadway, or it cannot be read in time. Note that if a sign has unfamiliar words or lots of words, it will also take longer to read. The figures in the table can help determine whether your prospective business site will be visible to customers. For example, if the speed of traffic in front of the site is 30 mph, and the street has two lanes in each direction so that a lane change is needed, your customers will need to be able to see and read your sign from 410 feet away. If your customers would not be able to see your business sign from that distance, you should consider another location. The Right Size

Assuming the sign can be seen from the distance listed in the table, the next step is to figure out how large the letters on your sign need to be so that your message can be read. Experts recommend designing signs with letters a minimum of one-inch tall for every twenty-five feet of distance. This makes them readable for all legal drivers. In our example, then, the smallest letters on a sign would be 16.4 inches in height if it were to be read from 410 feet away (assuming 30 mph traffic moving in two lanes in each direction). Note that if your sign is using fancy lettering that is more difficult to read, the minimum letter size must be increased significantly. To figure out the smallest possible size your sign can be to still be readable, figure each letter in the message will take up one square. In our example, that would be 16.4 square inches, or

Table 1

Minimum Required Legibility Distances in Varying Situations Speed (MPH)

With lane change (in feet)

Without lane change (in feet)

25-30

410

155

35-40

550

185

45-50

680

220

55-60

720

265

>65

720

280

1.37 square feet, for each letter. That allows for space between lines and words. If the sign read, Lydia’s Beauty Supply, its 18 letters would need a minimum of 25 square feet just for the words. For optimum clarity, an additional 40 percent of empty or white space would be needed, for a total of 35 square feet. That would be the absolute minimum size for a perpendicularly mounted sign with no graphics and very plain, easy to read lettering. Most businesses are not going to be well served by a small, plain sign with no graphics. The lettering style, the ability of graphics and logos to be easily recognized, whether or not the words on the sign are familiar and easy to read, the lighting methods used, and even the colors used all impact people’s ability to see and read a sign. Height

Now that you know where your sign will be placed and how large it needs to be, the next question is how tall the sign needs to be. The further away the sign will be read, and the further it is from the road, the taller the sign must be to be visible from a car. Freeway signs intended to be read from great distances should be very tall; signs located in a business district with 30 mph traffic only need to be tall enough that parked and moving vehicles will not block them from view. Although the length and content of a sign’s message generally dictates the overall sign

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National Pawnbrokers Association

BUSINESS SOLUTIONS Table 2

Sign Height Guidelines Speed Limit

Number of Traffic Lanes

Sign Height (to top of sign face)

25 mph

12 feet

25 mph

12 feet

35 mph

20 feet

35 mph

20 feet

45 mph

35 feet

45 mph

35 feet

55 mph

50 feet

55 mph

50 feet

Urban Freeway

N/A

75 feet

dimensions, Table 2 sets out generally accepted sign height guidelines. They assume that the sign is mounted perpendicular to the roadway, that the size of the letters meets the minimum size standards listed in Table 1, and that the sign is mounted within 5-10 feet of the nearest edge of the public right-of-way. Note that although the table lists heights measured to the top of the sign face, the height from the ground to the bottom of the face should always measure a minimum of 7 feet so the sign is not blocked from view by passing or parked vehicles.

lamps mounted outside it and oriented to shine on the sign’s face, by internal illumination that shines through the sign’s face, or by illuminated elements such as exposed bulbs, LEDs, or neon-style tubing. A wide variety of illumination methods are available, and rapidly developing technology is creating a virtually unlimited variety of possibilities, many of which are very economical to install and maintain, as well as being energy-efficient. When you select the color scheme for your business, you should consider your sign’s illumination options at the same time, because the illumination you choose can have an effect on the sign’s appearance. Some businesses want their sign’s colors to match their print and other media advertising exactly. Some forms of illumination are much better than others at accurately displaying color. If accurate portrayal of your business’s colors is important, you should choose an illumination source with a high Color Rendering Index (CRI) rating. A properly lighted sign should be bright enough that it can compete with other signs in the area without being annoying. Many cities are beginning to impose limits on brightness, so before designing a sign, you should check to see what those limits might be to determine whether your sign will be visible at night. [1] Richard N. Schwab entitled Safety and Human Factors: Design Considerations for On-Premise Commercial Signs, cosponsored and published by The Signage Foundation for Communication Excellence Inc. and the International Sign Association (1998).

Illumination

Lighting is essential for most signage. It allows your sign to be visible and readable day and night, in all kinds of weather. When a sign is illuminated, drivers can read it more quickly. Another benefit of an illuminated sign is that 24 hours a day, it is advertising your business. Even when your business is closed, that constant reminder helps build memory of your business. Signs are generally illuminated by one or a combination of three basic methods: by

National Pawnbrokers Association

SUMMER 2017

Keeping your business name visible is important for your marketing plans, so be sure you include store signage in your marketing budget. For more information on signage, check out these websites: Signs.org (International Sign Association) and Signindustry.com.

SUMMER 2017

National Pawnbrokers Association

PAWN EXPO

POWERED UP July 11-13, 2017 THE MIRAGE • LAS VEGAS, NV What is Pawn Expo?

Pawn Expo is the only national convention and trade show for the pawn industry. Attendees learn new ways to strengthen their company, connect with fellow pawnbrokers, and do business at the trade show featuring over 100 different companies. Leave energized and equipped with the latest industry knowledge.

NPA’s 30th Anniversary Celebrating 30 Years

Take a trip down memory lane as NPA celebrates thirty years of service to the pawn industry!

The NPA wishes to thank our exclusive 30th Anniversary Sponsor

What’s New in 2017?

Pawn Expo Highlights

• Keynote Speaker Retired NASA

• Networking Reception

• Trade Show

• Opening Session Keynote

• Closing Reception

• Two sessions by Corporate Strategies

• Welcome Reception

• Awards Luncheon

• New Product Knowledge Topics

• Annual Membership Meeting

Astronaut, Colonel Eileen Collins

Why Should I Attend?

500+

pawnbrokers to connect with and learn from

100

exhibitors with products and services to improve your business

National Pawnbrokers Association

education sessions

SUMMER 2017

expert speakers

can’t-miss convention for the pawn industry

PAWN EXPO Monday, July 10, 2017 8:30 am - 4:30 pm

CPP Courses

2:00 pm - 7:00 pm

Convention Registration

6:00 pm - 7:30 pm

Networking Reception

8:30 am -9:30 am

9:45 am - 11:00 am

Tuesday, July 11, 2017

Smartphone Social Media 101 Lab FFLs - Best Practice to Protect Your Business General Session: Yigal Adato, Leadership: Balance Between Business and Life Pawnbroker Networking Luncheon (Pawnbrokers only)

7:30 am - 5:00 pm

Convention Registration

8:00 am - 9:00 am

Annual Membership Meeting and Breakfast (Members only)

12:30 pm - 5:30 pm

Trade Show Open

9:15 am - 10:30 am

Opening Session: Col. Eileen Collins, Breaking Barriers to Become a Successful Pioneer in Your Field

4:00 pm - 5:00 pm

Trade Show Reception

9:30 am - 5:30 pm

The Marketplace (formerly Diamond District)

Thursday, July 13, 2017

How To Persuade, Motivate, and Influence Your Peers

8:00 am - 12:00 pm

Convention Registration

Training and Development 101: Educational Techniques to Improve Your Human Capital

9:00 am - 10:00 am

Trade Show Continental Breakfast

GIA - Synthetic Diamonds and How to Separate Them from Natural Diamonds

9:00 am - 1:00 pm

Trade Show Open

11:30 pm - 1:00 pm

Lunch Kiosk

10:45 am - 11:45 am

12:00 pm - 1:30 pm

Annual Awards Luncheon

1:45 pm - 3:00 pm

Your Way or the Right Way The Importance of Being in Compliance

3:15 pm - 4:15 pm

Secrets of Successful Critical Thinking & Creative Problem Solving Pawnbroker Succession Planning

11:15 am - 12:15 pm

Young Professionals Luncheon

1:15 pm - 2:00 pm

2:15 pm - 3:00 pm

Convention Registration

2:15 pm - 3:45 pm

Product Knowledge: Introduction to Selling Luxury Goods Product Knowledge: Gemstones 101 - FADS

Product Knowledge: Gold, Silver, and Platinum - MARKS OR MELT - How Much in Profits Are You Burning Up?

8:00 am - 9:30 am

Roundtable Discussion: Starting a Grassroots Campaign in Your Community

Product Knowledge: Gold, Silver, and Platinum - MARKS OR MELT - How Much in Profits Are You Burning Up?

Welcome Reception

Wednesday, July 12, 2017 7:30 am - 5:00 pm

Roundtable Discussion: Police Confiscations

Roundtable Discussion: Making Money with Jewelry Repairs

Intensive Gemstone Identification

6:30 pm - 8:30 pm

Roundtable Discussion: Gift Cards

Product Knowledge: Sports Memorabilia - How to Identify the True Potential

Product Knowledge: Introduction to Selling Luxury Goods Product Knowledge: Gemstones 101 - FADS

3:15 pm - 4:00 pm

Product Knowledge: Sports Memorabilia - How to Identify the True Potential

5:30 pm - 7:00 pm

SUMMER 2017

Roundtable Discussion: E-Commerce Roundtable Discussion: How to Survive When Values Decline Closing Reception

National Pawnbrokers Association

Pawn Expo

Monday, July 10 The Certified Pawn Professional (CPP) designation program was launched in 2015 and now has over 100 candidates pursuing their CPP certification. The designation will elevate professional standards and be the recognized mark of distinction among those in the pawn business. All courses will be offered at Pawn Expo 2017. Additional registration required.

MONDAY SCHEDULE 8:30 am - 4:30 pm CPP Courses Additional Registration Required

• Federal Regulations • Human Resources • Marketing, Advertising, and Public Relations • Product Knowledge • Security, Risk, and Crisis Management • Store Operations

2:00 pm – 7:00 pm Convention Registration Pick up your registration packet on Monday and avoid the rush 6:00 pm – 7:30 pm Networking Reception

Tuesday, July 11 TUESDAY SCHEDULE

Annual Membership Meeting and Breakfast – Members Only

7:30 am – 5:00 pm Convention Registration

Sponsored by:

Tuesday, July 11, 8:00 am – 9:00 am

8:00 am – 9:00 am Annual Membership Meeting and Breakfast (Members only) 9:15 am – 10:30 am Opening Session Keynote

OPENING SESSION: Breaking Barriers to Become a Successful Pioneer in Your Field

9:30 am – 5:30 pm The Marketplace (formerly Diamond District)

Col. Eileen Collins, Retired NASA Astronaut Tuesday, July 11, 9:15 am – 10:30 am

10:45 am – 11:45 am Education Sessions 12:00 pm – 1:30 pm Annual Awards Luncheon 1:45 pm – 4:15 pm Education Sessions 6:30 pm – 8:30 pm Welcome Reception

Sponsored by:

8:00 am – 9:30 am Education Sessions

Danusia Niklewicz and William Whetstone, Members of the Lecture Team, Hallmark Research Institute Wednesday, July 12, 8:00 am – 9:30 am

11:15 am – 12:15 pm Pawnbroker Networking Luncheon (Pawnbrokers only)

Product Knowledge: Introduction to Selling Luxury Goods

11:15 am – 12:15 pm Young Professionals Luncheon

Vidyuth Sirivasan, Co-Founder & CEO, Entrupy Wednesday, July 12, 8:00 am – 9:30 am

12:30 pm – 5:30 pm Trade Show

Join this information-packed session addressing an overview of the luxury industry and the top brands with a focus on handbags, selling items online, sourcing luxury items, and ways to generate additional revenue.

4:00 pm – 5:00 pm Trade Show Reception

Product Knowledge: Gemstones 101 – FADS

FFLs – Best Practices to Protect Your Business

Myriam Tashey, Vice-President, Professional Gem Sciences Laboratory Wednesday, July 12, 8:00 am – 9:30 am

Tom Chittum, Chief, Special Operations Division, ATF Wednesday, July 12, 8:30 am – 9:30 am

Sponsored by:

Ken Goldin, Owner, Goldin Auctions Wednesday, July 12, 8:00 am – 9:30 am Ken will be discussing authentication and valuation of sports collectibles. He will share how to spot a fake from the real thing with simple tips to look for when making a purchase. You will learn how to immediately identify whether the item has potential value or is worthless and where to find comparable prices to help in your decision-making process. Smartphone Social Media 101 Lab Emmett Murphy, New Media Strategist, 3 CliCk Media Wednesday, July 12, 8:30 am – 9:30 am Grab your smartphone and join this “hands-on” session to learn how to get started on Facebook, Instagram, and Twitter. This beginner-level seminar is presented in an informal lab format intended to allow each participant to actively post, tweet, upload, and receive one-on-one guidance! Attendees must have their own smartphone with Facebook, Twitter, and Instagram apps already installed, registered, and active.

National Pawnbrokers Association

Federal Firearms Licensee (FFL) burglaries have been increasing at an alarming rate. The firearms stolen in these burglaries all too often end up being used to commit violent crimes, usually in the same community where they were stolen. But FFLs can protect themselves, their businesses, and their communities by following some basic security measures and best business practices. Keynote session: Leadership: Balance Between Business and Life Yigal Adato, Entrepreneur, Leaderato Wednesday, July 12, 9:45 am – 11:00 am

Product Knowledge: Sports Memorabilia – How to Identify the True Potential

9:45 am – 11:00 am General Session

Back by popular demand, Marks or Melt again examines the reality of real profits tossed into the flame as precious metals are weighed and melted so quickly that marks are missed and the potential for much larger profits go up in flames!

This hands-on session is designed to familiarize pawnbrokers with terms, trends, and practices in the modern colored gemstone market. The session focuses on the big three – ruby, sapphire, and emerald – by providing a basic understanding that money comes in many colors besides green. You should leave this session with a clear understanding of the FADS: Flux, Air bubbles, Diffusion, and Striations of these three gemstones.

7:30 am – 5:00 pm Convention Registration

SUMMER 2017

A third-generation pawnbroker, Yigal learned about leadership in the trenches managing employees and his business. He will take you through the impact that your leadership skills have on your business, your team, and your life. Pawnbroker Networking Luncheon – Pawnbrokers Only Wednesday, July 12, 11:15 am – 12:15 pm Young Professionals Luncheon Wednesday, July 12, 11:15 am – 12:15 pm Sponsored by:

Trade Show Open Wednesday, July 12, 12:30 pm – 5:30 pm Trade Show Reception Wednesday, July 12, 4:00 pm – 5:00 pm

Pawn Expo

Wednesday, July 12 Trade Show Continental Breakfast Thursday, July 13, 9:00 am – 10:00 am

THURSDAY SCHEDULE 8:00 am – 12:00 pm Convention Registration

Sponsored by:

9:00 am – 10:00 am Trade Show Continental Breakfast 9:00 am – 1:00 pm Trade Show

Trade Show Open Thursday, July 13, 9:00 am – 1:00 pm

1:15 pm – 4:00 pm Pawnbroker Peer Roundtables

Lunch Kiosk Thursday, July 13, 11:30 am – 1:00 pm

2:15 pm – 3:45 pm Education Sessions

Roundtable Discussion – Pawnbrokers Only 1:15 pm – 2:00 pm Gift Cards Police Confiscations

5:30 pm – 7:00 pm Closing Reception

Roundtable Discussion – Pawnbrokers Only

Product Knowledge: Gemstones 101 – FADS

2:15 pm – 3:00 pm

Myriam Tashey, Vice-President, Professional Gem Sciences Laboratory Thursday, July 13, 2:15 pm – 3:45 pm

Starting a Grassroots Campaign in Your Community

This hands-on session is designed to familiarize pawnbrokers with terms, trends, and practices in the modern colored gemstone market. The session focuses on the big three – ruby, sapphire, and emerald. By providing a basic understanding that money comes in many colors besides green. You should leave this session with a clear understanding of the FADS: Flux, Air bubbles, Diffusion, Striations of these three gemstones.

Making Money with Jewelry Repairs Product Knowledge: Gold, Silver, and Platinum – MARKS or MELT – How Much in Profits are You Burning Up? Danusia Niklewicz and William Whetstone, Member of the Lecture Team, Hallmark Research Institute Thursday, July 13, 2:15 pm – 3:45 pm Back by popular demand, Marks or Melt again examines the reality of real profits tossed into the flame as precious metals are weighed and melted so quickly that marks are missed and the potential for much larger profits go up in flames!

Sponsored by:

Product Knowledge: Sports Memorabilia – How to Identify the True Potential

Sponsored by:

Ken Goldin, Owner, Goldin Auctions Thursday, July 13, 2:15 pm – 3:45 pm Ken will be discussing authentication and valuation of sports collectibles. He will share how to spot a fake from the real thing with simple tips to look for when making a purchase, how to immediately identify whether the item has potential value, or is worthless and where to find comparable prices to help in your decision-making process.

Product Knowledge: Introduction to Selling Luxury Goods Vidythy Sirivasan, Co-Founder & CEO, Entrupy Thursday, July 13, 2:15 pm – 3:45 pm Join this information packed session addressing an overview of the luxury industry and the top brands with a focus on handbags, selling items online, sourcing luxury items, and ways to generate additional revenue.

Roundtable Discussion – Pawnbrokers Only 3:15 pm- 4:00 pm E-Commerce How to Survive When Values Decline

HOTEL INFORMATION THE MIRAGE HOTEL AND CASINO, LAS VEGAS Pawn Expo 2017 Room Rate: $123 per night, plus applicable taxes and resort fee of $22 per night Visit PawnExpo.com to make online reservations, or reserve via phone by contacting Group Reservations at (800) 627-6667. Give the code NPA17A to receive the group rate. The group rate is available through June 16, 2017, based on availability.

SUMMER 2017

*** Do Not Delay in reserving your hotel room. A major software company will be hosting an event in Las Vegas and after our room block expires, we expect the hotel, and others in the city, to sell out quickly!***

National Pawnbrokers Association

pawn expo presenter

Succession Planning in the World of the Pawnbroker by Dr. Geralyn Miller, Professor and Pawnbroker from 5th Street Pawn, LLC, Marysville, OH

There are no busier folks than

pawnbrokers. Whether you are a new startup business or have a well-established store, chances are you have your hands full handling the dayto-day activities of running a pawn business. It is highly likely, then, that you have very little time to sit back and think about what will happen to the store if you decide to retire or, worse, become incapacitated. After all, who wants to think about that sort of stuff? To most pawnbrokers, the business of running a store is a labor of love. We do what we do because it not only provides us an income, but we truly love doing it. Each day is different, bringing with it our steady return customers along with a host of newcomers and even curious browsers who would never dream of actually buying anything. It is a day filled with new challenges, calling for us to use the talents and skills that we have acquired. The last thing most of us want to think of is the day that we will turn over the reins of the business we have labored in to someone else, even if that someone else is a trusted friend or family member. Giving up that control just isn’t something most of us look forward to and eagerly anticipate. Planning for it is not on the top of our list of things we want to do. Even if you’ve thought about it or, perhaps, taken some steps to ensure that the business will live on after you leave it, you may be missing some key things that you need to take into consideration. Is a simple will or power of attorney adequate to sustain the business in your absence? Have you chosen to place your business into a trust and, if so, are you aware of the trustee’s ability to run the business during a transition? Does the state (or states) in which you operate have any requirements that would prevent a smooth transition, such as the experience levels, backgrounds, or financial status of your chosen successor(s)? Can your successor(s) obtain other specialty licenses, such as a transferred Federal Firearms License? There aren’t a lot of studies available on successful succession planning for the pawn world.

National Pawnbrokers Association

SUMMER 2017

Dr. Geralyn Miller

The last thing most of us want to think of is the day that we will turn over the reins of the business we have labored in to someone else. With little to point us in the right direction about how to create a smooth succession transition for pawn businesses, though, there are still indicators out there to follow. Fortunately, we are not alone

THE FUNDS YOU NEED TO GROW YOUR PAWN SHOP

Discover PawnBroker Financing (“PBF”), a direct lender to the pawn industry. Operating a Pawn Shop requires a steady flow of cash. Financing options for the Pawnbroker Industry are typically limited and very restrictive. PBF allows owners in the pawn industry to obtain the cash they need in a timely manner. “Get a Fast Approval for your Pawnbroker Line of Credit”.

pawn expo presenter in having to plan for business succession, so we can turn to other industries and occupations in the world of business that have already begun to study succession planning for clues about setting up a process that will result in a smooth transition for our own businesses. These early planners, although from different industries than ours, have given us some things to both think about incorporating as well as things to avoid in crafting our succession plans. Borrowing the thoughts and findings from existing academic studies gave us a starting point for a recent NPA survey that I had the pleasure of helping to design. There was a great response rate on that survey and I intend to discuss what the NPA discovered at the upcoming Pawn Expo 2017. I hope

that you’ll join me for a fun and informative session. Becoming a pawnbroker wasn’t something that I had planned on in my life, but when my pawnbroker husband passed away and left half of his store to me, I found myself in a business that I find very rewarding. And, yes, you guessed it; he did not foresee all of the difficulties that I have faced in trying to take over the reins of the business. So, let me give you my perspective on succession planning in our upcoming event. I am looking forward to hearing your thoughts and ideas on succession planning so that I can continue to learn more about it in the world of pawnbroking. This session will take place on Tuesday, July 11, at 3:15 pm at The Mirage in Las Vegas, so make sure to mark your calendars. See you at Pawn Expo 2017!

SUMMER 2017

National Pawnbrokers Association

BUSINESS SOLUTIONS

Hiring the Right Employee the First Time by Jamie Hasty, SESCO Management Consultants

The key to establishing a highly-

productive workforce is to attract and retain quality employees – those who are worthy of an opportunity within your organization. If we hire the right person the first time, employment issues, such as poor productivity, attendance, lack of teamwork, poor quality, low morale, turnover, etc., can be avoided. Organizations need to ensure that their “bus” is full of good employees. In addition to traditional screening and hiring techniques, such as reviewing resumes, contacting professional references, conducting background checks, and establishing and implementing behavioral interviewing questions, additional resources, such as pre-employment assessment tools, are extremely valid and strongly recommended. Please consider the following reasons to utilize pre-employment assessments: • T wo of three new hires will disappoint in the first year. • 33 percent of applications are falsified. • Two of three employees would rather work somewhere else. • 95 of 100 applicants will “exaggerate” to get a job. • Most hiring decisions are made in haste - during the first five minutes of an interview. • One of three businesses will be sued this year over an employment issue. • Turnover costs thousands of dollars for every departing employee.

• 80 percent of employee turnover is avoidable. You want employees who are dependable. In 1998, absenteeism cost employers $757 per employee, according to a report in USA TODAY. This was the direct cost reported by a survey of human resource professionals and does not include the cost of hiring others or paying overtime to perform the work of absent employees. You can be held liable for employees’ behavior on and off the job. You must know the nature of the people you hire because their criminal behavior could cost your business millions of dollars. Every time you hire without practicing due diligence, you may be accepting liability for their actions - even when they are “off the clock”. You can be sued for illegal discrimination. In the absence of objective data, how can you demonstrate a hiring/promotion decision was made objectively, without discrimination because of gender, race, religion, etc.? Resume writers write great fiction. In a survey of recent college graduates, 95 percent said they would be willing to make a false statement in their resumes in order to get a job. Forty-one percent admitted they had already done so, according to a report in Nation’s Business (May, 1999).

SUMMER 2017

National Pawnbrokers Association

BUSINESS SOLUTIONS Testing is acceptable, even expected. As reported in Molding Systems (May, 1999, v57 i5 p56(1)), a survey found that 92 percent of job applicants accept testing as part of the job qualification process. Only 3 percent resent it, while 5 percent were neutral. Assessments offer a solution. Historically, employers depend upon resumes, references, and interviews as sources of information for making hiring decisions. In practice, these sources have proved inadequate for consistently selecting good employees. When training employees, a “one size fits all” approach has failed to provide the desired results. When selecting people for promotion, otherwise excellent employees have too often been miscast into roles they could not perform satisfactorily. Clearly, an essential ingredient for making “people decisions” has been missing from the formula. The use of assessments has become essential to employers who: • want to put the right people into jobs; • provide employees with effective training; • help their managers to become more effective; and • promote people into positions where they will succeed. The use of assessments has resulted in extraordinary increases in productivity while reducing employee relations problems, employee turnover, stress, tension, conflict, and overall human resources expenses. Several factors contribute to the failure of traditional hiring methods. Resumes often contain false claims of education and experience while omitting information that would help employers make better hiring decisions. Business references are of little value because most past employers will tell you nothing but “name, rank, and serial number”. These realities are the reason interviews have become the most influential factor in hiring and promotion decisions. However, experience shows only a coincidental correlation between the ability to deliver well in an interview and to deliver well on the job. Studies peg this correlation at 14 percent – one good employee in every seven hires. Even background checks don’t help much. The success rate becomes 26 percent, but that’s only one good

National Pawnbrokers Association

SUMMER 2017

hire in every four. Unfortunately, many employers have accepted these poor results and the high cost of excessive turnover as a business reality. They have flown the white flag of surrender. Don’t surrender! Assessments do help significantly. Assessing behavioral traits improved the hiring success rate to 38 percent. When both thinking abilities and behavioral traits are assessed, the right people are hired 54 percent of the time. When an assessment of occupational interests is added, successful results improve to 66 percent. The most impressive results are achieved, however, when an integrated assessment is used – one that measures behavioral traits, thinking, occupational interests, plus “job match.” These integrated assessments employ cutting-edge technology and empirical data to assess the qualities of “The Total Person.” In doing so, the individual qualities of candidates are compared to the qualities of employees who are performing their duties in a superior manner. These 21st century assessments successfully identify potentially excellent employees better than 75 percent of the time. Job match outranks all other factors. A welldocumented study, published in Harvard Business Review, concludes that “job match” is by far the most reliable predictor of effectiveness on the job. The study considered many factors including the age, sex, race, education, and experience of approximately 300,000 subjects. It evaluated their job performance and found no significant statistical differences, except in the area of job match. The conclusion: “It’s not experience that counts or college degrees or other accepted factors; success hinges on a fit with the job.” The only reliable method for evaluating job match is with a properly-designed assessment instrument, capable of measuring the essential job-related characteristics particular to each specific job. Contact SESCO to discuss assessment tools or visit www.sescomgt.com and click on “Employee Testing & Background.”

*Watches for the Novice Workshop Friday, Sept. 15th

A hands-on course by watch specialist Adam Harris Sept. 16-18, 2017, at the NAWCC education facilities, Columbia, PA How to identify genuine watches Brands discussed will include: Omega • Hublot • Rolex • Rolex-Tudor Breitling • Cartier • Tag Heuer • Panerai Bell & Ross • Audemars Piguet

EVALUATING TIME

Research, Identify, and Value Wrist and Pocket Watches

Watch specialist Adam Harris presents proven methods of identifying watch types and evaluating their authenticity and condition in this course. October 28-30, 2017, at the NAWCC education facilities, Columbia, PA

Registration Fee: $1,000 early bird (one month prior to course date) $900 for NAWCC members (early bird period only) $1,250 regular price For additional information or to register: Contact the Education Department 717.684.8261, ext. 237, or email: education@nawcc.org www.nawcc.org • 514 Poplar St., Columbia, PA 17512-2130

SUMMER 2017

National Pawnbrokers Association

Behind the scenes

Emmett Murphy Sharing NPA news with the outside world If you have been involved with NPA

for the last nine years, you have probably seen (or met) Emmett Murphy. As the New Media Strategist for 3 CLiCk Media, Inc., he specializes in combining public relations, online marketing, technology, and social media into comprehensive new media communication campaigns. Emmett and the 3 CLiCk Media team have been working with NPA since 2008. At that time, Senator Dick Durbin was spearheading legislation designed to cap interest rates for pawnbrokers at 36 percent annually. NPA reached out to 3 CLiCk Media to help communicate the positive work that pawnbrokers across the country were doing. This initial effort included a public relations campaign and harnessed emerging new media tools to communicate the complexities of the pawn industry to journalists and lawmakers. The company currently handles all public relations and external communications for the NPA and has represented the pawn industry on several occasions in the New York Times, Wall Street Journal, USA Today, and Time magazine. They have developed several successful online communications tools for the association, including PawnFyNdR com, NPA Insider Video, NPA NewsBrief, NationalPawnbrokers.org, PawnShopsToday.com, Rally Congress, PawnTweet.com, PawnExpo.com, and the NPA’s first iPhone app. “The rapidly changing economy, political environment, and shifting consumer trends continually require a fresh public relations approach,” says Emmett, who constantly monitors the pulse of the industry to see how these changes affect pawnbrokers. “Technology has changed rapidly since we began working with the NPA, and we’ve worked hard to educate pawnbrokers about online marketing, social media, and digital trends.” One of Emmett’s favorite aspects of his role is presenting journalists with the true facts about the pawn industry. “Often, when I’m interviewed by a journalist, they have little knowledge about pawnbrokers and are surprised by the reality of their business model.” He’s also proud of his involvement with the NPA

National Pawnbrokers Association

SUMMER 2017

Emmett Murphy

during the time in 2008 when the pawn industry had experienced growth and was subject to the intense investigation by legislators and journalists. It was very important that NPA was prepared with a cohesive and positive message. “My involvement during that period was crucial because it helped the media understand the importance of main street, brick-and-mortar pawn stores in the economy. During this period, journalists were hungry for stories about pawnbrokers. The NPA and 3 CLiCK Media were actively delivering a strong, pro-pawn message on all fronts.” Emmett was born in Great Falls, MT, and started working in marketing and theater in New York City in the early 90s. He was an early adopter of the internet and launched a website for his media development company. Shortly thereafter, he joined AT&T as a corporate spokesperson for a new line of revolutionary internet-based products, including proprietary intranet and a mobile phone with internet capabilities. When he’s not working in his public relations company, Emmett can be found directing and producing theatrical productions all around the world. An avid traveler, he enjoys experiencing new cultures, art, and food. If you have a marketing question, you can reach Emmett at EM@3CLiCkMedia.com or by calling (212) 365-0691.

THE TRENDZ

WE BUY

TURN YOUR DIAMONDS INTO CASH MELEES LARGE STONES BROKEN, CHIPPED, EVEN BURNT DIAMONDS as well as UNWANTED JEWELRY

PAWN E X P O

BOOTH NO.

401

Book Corner

The Truth About Employee Engagement by Patrick Lencioni A Fable About Addressing the Three Root Causes of Job Misery In this book, bestselling author Patrick Lencioni takes on a universal problem: job dissatisfaction. The author examines the three root causes of misery on the job and explores how they can be remedied to improve job satisfaction and performance. By eliminating the three root causes of job misery: anonymity, irrelevance, and immeasurement, managers will be better able to motivate and retain employees. Anonymity

Nobody wants to feel invisible. Humans, by nature, need to have the feeling they are appreciated for what they do and for who they are by someone in authority. Treat your employees with respect and let them know you see them doing a great job.

Irrelevance

Everyone wants to feel like they have a “why”. Why are they doing the job they are? Who is it affecting and what good is it doing? Employees need to be able to see the connection between the work they do and how it is relevant to another person or group of people. Immeasurement

It’s human nature for employees to want to be able to measure their performance themselves. They want clear objective evidence showing where they stand. Giving employees feedback and goals to reach will help them know that they are doing the work the right way and in a way that will give them the satisfaction they strive for.

SUMMER 2017

National Pawnbrokers Association

Compliance

NICS E-Checks Continue to Increase Videos now available for users The National Instant Criminal Background Check System (NICS)

Section continues to promote the NICS E-Check. The NICS E-Check has experienced a steady volume increase since it became available in 2002. During the calendar year 2016, 76.21 percent of all federal firearm background checks were initiated via NICS E-Check. The NICS E-Check offers many benefits to its users. • A dded customer protection against identity theft • Added protection of Federal Firearms Licensee (FFL) number and code word • More accurate search because the FFL is inputting the data and verifying its accuracy • No hold times waiting for the NICS Contracted Call Center (NCCC) • No hold times waiting for the transfer process • Report capabilities enhancing organization • Administrative controls to the FFL • Users can use any browser • Users can use any computer For FFLs not already registered, instructions

on how to register to use the NICS E-Check are listed below. • Visit the FBI NICS E-Check website at Nicsezcheckfbi.gov • Click on “Register to use the FBI NICS E-Check” • Agree to the Terms and Conditions • Complete the Account Request form • Click on the “Registration” block at the bottom of the page (This will take you to the Law Enforcement Enterprise Portal where you normally enter your user name) • Go back to the Welcome Page at Nicsezcheckfbi.gov • Click on the fourth link “Get the FBI NICS E-Check Enrollment Form” • Complete and sign the enrollment form • Fax form to (888) 550-6427 or e-mail it to nics_commandcenter@ic.fbi.gov The NICS Section recently developed video tutorials to assist NICS E-Check users. The video tutorials can be accessed at the NICS FFL website at fbi.gov/nics-ffl. Scroll down to the NICS E-Check portion of the page and click on “NEW: E-Check Video Tutorials for FFLs”. The following

The NICS E-Check Volume Increase

National Pawnbrokers Association

SUMMER 2017

Compliance videos are available to assist you with various NICS E-Check processes: • A dd User—This process allows you to add additional users that need to submit background checks. • Change Password—Passwords expire every 90 days. This process allows you to change your password before it expires. E-mails are sent to you 14 days, and four days, prior to expiration notifying you that your password is expiring soon. • Export to Excel—This process enables FFLs to run a report at the end of every day showing all NICS transactions initiated during the day. The FFL can then save the report in an excel file. • Reset Password—This process is to be used by primary users to reset passwords of users that have forgotten their password or have expired passwords.

• Retrieve Status—This process allows the FFL to retrieve the status of previously delayed transactions. • Submit a Search—This process allows the FFL to initiate a new search. • Unlock User—This process allows a primary user to unlock the account of users that have been locked out. The most common reason users are locked out is due to three failed attempts. Expired passwords will also cause a user to be locked out; however, the primary user will need to reset the password for users with expired passwords. A password reset will provide a new temporary password and unlock the account. Since the NICS E-Check offers many benefits not available through the NCCC, the NICS Section encourages you to register today. If you have questions about the process, feel free to contact the NICS Business Unit at (304) 625-7387.

SUMMER 2017

National Pawnbrokers Association

Member News

Inside a SuperLoans pawn store in Porirua, New Zealand

Pawnbroking Around the World Pawnbrokers have been in business for

thousands of years and can be found all over the world. Customers come to them, hand over their item for pawn, and receive cash in return when they are short of funds. While most of the NPA’s members are located within the United States, the association has over 40 members from outside the country. They hail primarily from Canada and Mexico, but also Aruba, Australia, Guatemala, Kazakhstan, New Zealand, the Philippines, and Sweden. We talked with three of our international members – Jean Henri D. Lhuillier of Cebuana Lhuillier in the Philippines, Peter Sundstrom of Pantbanken Sverige in Sweden, and Sean O’Connor of SuperLoans in New Zealand – to learn about the similarities (and the differences) of pawnbroking around the world. Similarities

There are a number of similarities in pawnbroking between these countries and the

Cebuana Lhuillier, Makati City, The Philippines

U.S., such as the redemption rates, the type of items pawned, the working hours, and licensing requirements. For example, the number of pawn loans redeemed ranged from 80-90 percent; the average U.S. redemption rate is 85 percent. Most pawn stores in New Zealand are open Monday – Friday with some Saturday hours. The same holds true for Sweden with some stores open on Sundays. In the Philippines, there are even a few stores that are open 24 hours. Pawnbrokers in the Philippines, New Zealand, and Sweden are all required to be licensed and must follow governmental regulations, such a presidential decree or a legislative act.

SUMMER 2017

National Pawnbrokers Association

BUSINESS SOLUTIONS

Pantbanken Sverige, Stockholm, Sweden

Items taken in for pawn are also similar to those in the U.S. Gold jewelry, electronics, watches, and power tools are the primary merchandise seen by these pawnbrokers. Pawnbrokers in other countries, like those in the U.S., face added security risks. They, too, must take extra precautions and measures to deter criminals by using electronic security systems, alarms, 24/7 monitoring, and guards. In Sweden, they have installed glass walls between customers and staff for increased protection. Differences

While there are many similarities, there are some differences among pawnbrokers in other countries. For example, New Zealand has only 41 pawn stores in the entire country and Sweden has just 62 (owned by 25 companies). On the other hand, the Philippines has over 16,000 pawn stores. While the average pawn loan in the U.S. is $150, it is $250 in New Zealand. In the Philippines, it ranges from $350-$400 and, in Sweden, the average pawn loan is $500. Another difference between these countries and the U.S. is that there is no cap on the interest rate.

National Pawnbrokers Association

SUMMER 2017

In the Philippines, pawnbrokers are encouraged to â&#x20AC;&#x153;keep it within the marketâ&#x20AC;?. In Sweden, most pawnbrokers charge from 3-3.5 percent per month, but there is no exact cap. The number of multiple stores owned by one company is another variance. In the Philippines, most pawnbrokers have more than one store. In New Zealand, most owners have only one store, with just a few franchised stores in the country. Despite these differences, one thing remains the same. No matter where they are in the world, pawnbrokers provide a much-needed resource to those who are short of cash.

SUMMER 2017

National Pawnbrokers Association

pawn expo presenter

Social Media “No-Nos” for Pawnbrokers by Emmett Murphy, 3 CLiCk Media

Pawnbrokers have

successfully embraced social media to drive sales, promotions, and brand awareness. However, social media’s influence on customers of pawn has evolved from just a marketing tactic to a more strategic communication tool, and this evolution has brought Emmett Murphy about new rules of engagement. It’s important for pawnbrokers to remember that their customers are using social media to communicate with their friends and family, explore the world around them, and to complain, compliment, and voice their opinion in the public forum. Based on all of these complexities, here are a few golden rules about what not to do online. If You Receive a Comment, Don’t Ignore It

If someone takes the time to comment, review, ask a question, or complain online, they are likely to be eager for a response or resolution. Customers who take to online communication should be taken as seriously as a customer standing in your store speaking directly to a manager, if not more so. Your first step should be to get the conversation offline as quickly as possible. Online comments and your responses can linger online for years. Your response should be quick and positive. Tell them that you want to reconcile the problem, suggest they call the manager, and provide a direct phone number. According to a survey by leading social media software management company, SproutSocial, social media is the leading choice for customer care, and 90 percent of people surveyed have used social media in some way to directly communicate with a brand. This has another upside, as 75 percent of people surveyed say that they are likely to share a good brand interaction on social media. Also, 70 percent are more likely to make purchases following a good brand interaction. Don’t Break the Social Norms

Each social media platform has a different tone or voice. They also have unique systems, unspoken rules, and social norms. It is very important to understand how to communicate within these parameters to avoid being offensive to your network of potential customers.

National Pawnbrokers Association

SUMMER 2017

Here are a few guidelines: • Don’t talk about yourself continuously or flood your feed with spammy sales messages. • Don’t push your followers for likes or retweets as this is perceived as obnoxious behavior. Everyone knows they should “like” something they’re interested in. If your content and post is great, your network will respond positively. • Be aware that what is appropriate on one social network isn’t necessarily going to work on all of them. As an example, a lengthy text post on Facebook will not work on Twitter due to the constraints of 140 characters. The same post may not be appropriate for Instagram, which relies primarily on photo sharing. Instagram photo posts can be more informal and behind the scenes, while Facebook requires a more professional message and image. Don’t Favor Quantity Over Quality

Your social media accounts should not be considered a free advertising channel. They should be treated as a window into a very personal time with your customer. During this time, your customer’s guard is down and they may react negatively to one too many sales pitches. You should try to stick to the 3 CLiCk Media 5/3/2 rule as outlined below: Out of every 10 posts: • 5 posts should be original, non-sales, or business related. They should be of general interest to your customers, and can include interactive questions, local community news, or engaging statements. • 3 posts should be original pawn store related topics. These can include topics like jewelry cleaning tips, how a layaway plan can help at the holidays, and how to pick the perfect diamond. These should be of interest to your network and not a sales pitch. • 2 posts can be direct sales pitches, promotion announcements, or other business-related messaging. The strategy is to create a relationship with your potential customers and not overwhelm their social feeds with hard hitting advertising. Provide a value with

pawn expo presenter your post and your network will be more willing to listen to the ads. Don’t Create Social Media Accounts that You Don’t Intend to Use or Don’t Know How to Use

While a pawn store with no social media is a missed opportunity to communicate with customers and community, if you aren’t savvy to the benefits of a social media account, you are probably not going to use it properly. Don’t create or promote your social media accounts unless you have a plan in place to manage them actively. Setting up and abandoning a social media account can provide a place for your customers or competitors to have a public online discussion about you without your input. If you aren’t able to keep up with the tweets, pins, likes, and posts, you should consider hiring someone who can, or limiting your social media interaction to one platform. Removing Negative Comments is a No-No!

Everyone wants to present their best image to the world at all times, but trying to silence your angry customers can backfire. Once a disgruntled customer realizes that you are deliberately ignoring them, they may get fired up and share their anger on other platforms. This is especially dangerous on websites that don’t allow the opportunity to delete or hide comments, like Yelp or Google Reviews. Your social media communication should be considered a dialog between you and your customer, and there is still time to repair the relationship. Reconciling a negative online comment or review can be a great opportunity to show potential customers how your business handles a problem. Rather than deleting the comment or engaging in an online argument, show that your staff is responsive and willing to deal with the issue. A nasty negative comment or a protracted online argument can drive business away from your pawn store. Also, Facebook rewards businesses that respond quickly with a positive “response rate.” This type of “Very Responsive to Messages” status can encourage your customers to contact your business via Facebook. Remember that every business makes mistakes, has problems with customers, or has to deal with irrational complaints. The most important thing is how you deal with it.

SUMMER 2017

National Pawnbrokers Association

member news

National Pawnbrokers Association 2017 Membership Awards The NPA would like to recognize the following members who have supported the association and its mission over the past 10, 20, 25, and 30 years. We thank you for your contributions to the NPA and to the pawn industry. 30 YEARS

20 YEARS

B & B Inc of Portsmouth, Ohio Bonded Loan Office, Inc Burrell Printing Co, Inc Garfield Refining Company Golden Pawn & Jewelry Olde West Gun & Loan Co People’s Pawn Shop Inc Suffolk Jewelers, Inc Terry’s Pawn & Variety Shop Uncle Sam’s Pawn Shop, Inc Wood’s Loan Office

Portsmouth, OH Columbia, SC Pflugerville, TX Philadelphia, PA Birmingham, AL Redding, CA Columbia, SC Boston, MA Jackson, OH Columbus, OH Atlantic City, NJ

25 YEARS Alan’s Jewelry & Pawn, Inc American Jewelry & Pawn, Inc American Pawn Shop Inc American Trade & Loan Co BJ’s Pawn Shop California PawnShop Dick’s Pawn Shop South Holley’s Pawn Store, Inc Ideal Jewelry & Loan Kendale Pawn Shop Lee’s Pawn & Jewelry Maxferd Jewelry & Loan Beverly Hills Mullins Pawn Shop, Inc Neighborhood Pawn Inc Norman’s Jewelry & Loan, Inc Pets, Pawns & Imports, Inc Pioneer Loan & Jewelry R J Cash Enterprises, Inc Rhudy’s Pawn Shop, Inc Rogers Jewelry Royal Pawn Inc Smokefoot Trade & Loan, Inc South Bay Pawn, Inc Sydmor’s Jewelry Co, Inc The PawnShop, Inc Treasure World Gun & Pawn Village Pawn West Gastonia Music & Loan

Asheville, NC Rocky Mount, NC Thomasville, GA Lenoir, NC Metairie, LA Hanford, CA Surfside, SC Daphne, AL Brockton, MA Sanford, NC Saint Louis, MO Beverly Hills, CA Mount Airy, NC Monrovia, CA Southfield, MI Longview, WA Las Vegas, NV Miami Gardens, FL Fayetteville, NC Quincy, MA Covington, KY Morganton, NC Lawndale, CA Barberton, OH Chula Vista, CA Ashville, NC Greenville, NC Gastonia, NC

National Pawnbrokers Association

SUMMER 2017

AAA Jewelry & Loan Advantage Pawn Batesville, Gun & Pawn Shop Inc Bellingham Pawnshop Inc Ben’s Loans, Inc Cash Company Cash Exchange Cash Plus Pawn Diamond Jewelers of Spartanburg Eastside Pawn Shop Express Pawn, LLC Gil’s Loans Greenmount Loan & Jewelry Co Knightdale Pawn Lincoln Square Pawnbrokers, Inc Lincolnton Pawn Shop, Inc Loan USA, Inc Meriden Pawn LLC Metro Pawn & Gun Inc Money and More of Waterloo Odyssey Jewelers, Inc P & J Pawn Shop Pee Wee’s Pawn Plano Pawn Shop Sol’s Jewelry & Loan The Exchange The Pawn Shop Tiger Pawn Emporium, Inc Wholesale Jewelry & Loans Wild Bill’s Jewelry & Pawn

Salt Lake City, UT Memphis, TN Batesville, MS Bellingham, WA Renton, WA Redmond, WA Clinton Township, MI Fort Worth, TX Spartanburg, SC Cleburne, TX West Haven, CT Hamilton, OH Baltimore, MD Knightdale, NC New York, NY Lincolnton, NC Worcester, MA Meriden, CT Richfield, MN Waterloo, IA Cleveland, OH Dallas, TX Helena, AL Campbell, TX Omaha, NE Red Bluff, CA Paintsville, KY Enid, OK Huntsville, AL Columbus, GA

10 YEARS 13th Street Jewelry and Loan Accent Loan Store, Inc Ace Buyers of Albany Action Loan & Jewelry Cash N More Pawn & Jewelry Cross Creek Pawn & Jewelry, LLC Jery’s Pawn Lombard Mutual Pawn Express, Inc Quintard Jewelry & Pawn

Omaha, NE Memphis, TN Albany, OR Dyersburg, TN Wichita Falls, TX Fayetteville, NC Hope Mills, NC New York, NY Enterprise, AL Anniston, AL

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Cell: 678.773.0195 • Off: 404.474.1563 Bhavesh@aagamcreation.com Government Relations (From page7)

2017 Legislative Conference Recap

the way the Consumer Financial Protection Bureau (CFPB) displays a total disregard for small business recipients of its civil investigative demands (CIDs) which was evident to us by the recent experiences of our Virginia pawnbroker members. There should be a limit placed on the CFPB’s CID authority covering the scope and manner of responses appropriate to the nature of the small business in question. Assistance in lessening the compliance burden to access a “safe harbor” under the Department of Defense (DoD) expanded regulations of the Military Lending Act that became effective on October 3, 2016, was also a topic of discussion. One in particular is the requirement to obtain social security numbers (SSNs) from ALL of our customers, which is not a determining factor for a pawn transaction, in order to do a check of the DoD’s website to ascertain their military status. The DoD’s own statistics for the month of March 2017 alone reported only 0.6 percent of the 97.9 million

checks completed were active-duty military or dependents. We felt this spoke volumes in making our case. These are very important times for the pawn industry on all levels - local, state, and national. We are proud of our successes over the years, especially when you compare our resources to those used by other trade groups with unlimited spending capabilities. This is simply a testimony to the hard work of our NPA members and the dedication of our Board of Directors and Team GRC who stand ready to represent the independent pawnbroker. I encourage you to consider making a generous donation to the NPA PAC, so that we may continue winning battles in Washington, DC, as well as those in our own backyards. See you in Las Vegas at Pawn Expo! Fran Bishop, NPA Government Relations Liason NPA Past President

SUMMER 2017

National Pawnbrokers Association

18 More Stores Sold

Stallcup Group facilitates the sale of 2 separate companies in Arizona and North & South Dakota! December 2016 – Stallcup Group, Inc., an Exit Strategy Consulting firm, announced its successful facilitation of the sale of Pawn 1st, LLC and First National Pawn. Both are independently-owned business that comprised 18 pawn shops located in Phoenix and North and South Dakota. 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 companies and individual stores helped ensure their clients 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 30 years of experience in the pawn shop industry and have closed almost $205M 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. 58

National Pawnbrokers Association

SUMMER 2017

Steve Stallcup

steve@stallcupgroup.com

817.479.3880

STALLCUPGROUP.COM

COMPLIANCE

Protect Your Business Do you know your OFAC from your

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Pawn and Precious Metals Compliance IRS Compliance Audit Guidance Check Cashing and Payday Loan Turnkeys

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SAR? How about the difference between an MSB and an AML? As a pawnbroker, these are important acronyms you need to know to get – and stay – in compliance. NPA offers an online anti-money laundering program that allows you to get all your compliance training requirements without ever leaving your office. In this self-paced course, “AML for Pawnbrokers and Dealers in Precious Metals”, you’ll learn how to properly file an 8300, OFAC requirements, when to file a Suspicious Activity Report, and much more. Visit NationalPawnbrokers.org/Compliance for more information on this important training course.

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www.diamondmelle.com SUMMER 2017

National Pawnbrokers Association

MEMBER NEWS

NPA New Members February 1, 2017 – April 30, 2017 Pawnbrokers California Collectible Investments • San Marcos Iowa Quick Cash Pawnbrokers • Davenport New Jersey Bailey’s Inc • Jersey City North Carolina NoJo Trading Company LLC • Hendersonville Ohio National Jewelry and Pawn (2) • Akron Oklahoma Neighborhood Pawn • Oklahoma City Pennsylvania National Jewelry and Pawn • Lebanon Texas Anthony Jewelry & Loan • Anthony Industry Partners Advanced Chemical Company • Warwick, RI Apperson, Inc • Cerritos, CA Diamonds and Jewelry Services • Clifton, NJ Gold-N-Diamonds, Inc • Atlanta, GA Hoffman Manufacturing Corp • Madison, WI

BUSINESS SOLUTIONS (From page 14)

10 Ways to Reward Employees

Themed Work Day Pick a theme for a day and celebrate it all day long. For example, June 27 is National Pineapple Day. Have employees wear Hawaiian shirts with leis, decorate the store or office with paper lanterns and palm trees, and bring in pineapple dishes to eat. Grab Bag Goodies Fill a number of bags with fun items for employees to pick from when you want to reward them. The bags can include things like movie tickets, a free lunch coupon, book store gift card, a free t-shirt, etc. Masseuse for the Day Contact a local spa and have a masseuse come in for an afternoon to give back and foot massages.

National Pawnbrokers Association

SUMMER 2017

Donate to Charity Find out the employee’s favorite charity and make a donation in their name. Say Something Nice Prior to the next staff meeting, hand employees a slip of paper for each person in the company. Ask them to write one positive comment about each person (anonymously) and bring the slips to the meeting. Have bags set up, labeled with each person’s name, for them to drop in their slips. At the beginning (or end) of the meeting, have each employee read aloud the slips from his/ her bag. Write a Thank-You Note Sometimes the best rewards cost the least. Write a thank-you note with a heartfelt message and hand-deliver it to your employee. It’s guaranteed to be something they will treasure.

CPP

Stand Out From the Crowd What are you waiting for? “Obtaining my CPP designation has been invaluable for me, and my company. Combined with our marketing strategy, store design, and community outreach, the CPP designation fosters an image of trust and professionalism in the eyes of the public.” –Douglas Braswell, Braswell & Son Pawnbrokers, Little Rock, AR

The Certified Pawn Professional (CPP) program was created in 2015 by the National Pawnbrokers Association to provide a professional designation for individuals in the pawn industry. The designation elevates professional standards and is the recognized mark of distinction among those in the pawn business. Since its start in 2015, 125 people have

participated in the program, with eight pawnbrokers earning their designation. Those who earned their designation did so by completing five out of the six available courses. Courses are offered several times a year, including at Pawn Expo in Las Vegas, and in multiple locations across the U.S. To see a full list of available courses and course dates, go to NationalPawnbrokers.org, and on the Main Menu, click CPP, then Course Schedule & Fees. Distinguish yourself from the competition. Sign up today!

YOU’VE GOT THE KNOWLEDGE, EDUCATION, AND SKILLS. NOW PROVE IT. Top 3 reasons to seek your Certified Pawn Professional designation:

• Validate Experience • Show Commitment • Stand Out from the Competition

MEMBER RATE $199/course NON-MEMBER RATE $499/course

For more information, visit NationalPawnbrokers.org and click on the CPP tab or call (817) 337-8830.

SUMMER 2017

Courses are available in several states across the U.S. Check the NPA website for a course near you!

• Store Operations • Marketing, Advertising, and Public Relations

• Human Resources • Product Knowledge • Federal Regulations • Security, Risk, and Crisis Management

National Pawnbrokers Association

BUSINESS SOLUTIONS

Notice of NPA Annual Membership Meeting by Kathleen Barbee, Secretary, National Pawnbrokers Association

that the annual Membership Meeting of the National Pawnbrokers Association will be held at The Mirage in Las Vegas, NV, on July 11, 2017, from 8-9 a.m. At the meeting, the membership will ratify the slate of candidates provided by the Board of Directors for the election of Directors and receive reports from the Officers and the annual report. In addition, the membership will transact any other business that is brought before it in accordance with the bylaws of the association. The individual listed as the representative of the Pawnbroker Member with the Association shall

be considered the voting delegate. An alternate delegate may be selected if the representative is unable to attend the Annual Membership Meeting. The alternate delegate must be an employee, officer, or owner of the Pawnbroker Member. An Alternate Delegate form must be submitted at least three (3) weeks in advance of the meeting. If no Alternate Delegate form is submitted and the representative of the Pawnbroker Member is not in attendance, their vote shall be forfeited. All other forms of proxy voting are prohibited. For more information, contact Dana Meinecke, NPA Executive Director at Dana@ NationalPawnbrokers.org or (817) 337-8830.

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SUMMER 2017

National Pawnbrokers Association

State News

State Association Updates State pawn news across the nation

ALABAMA

ARKANSAS

Alabama Pawnbrokers Association larrysjp@comcast.net

Arkansas Pawnbrokers Association hogtim@windstream.net

For the first time, the 2017 Dixie Educational Conference and Trade Show was held on the Alabama gulf coast at the Perdido Beach Resort in Orange Beach, AL. According to the exhibitors and attendees, the 2017 Dixie was one of the best. We had approximately 50 exhibitors and a record number of attendees. Although most of the attendees were from Alabama, Arkansas, Louisiana, and Mississippi, attendees also came from several other states, including Florida, Tennessee, and as far away as Utah. In both 2016 and 2017, the Dixie welcomed the addition of one of NPA’s Certified Pawn Professional (CPP) courses on Friday prior to the evening’s “Welcome Reception”. The speakers at the educational seminars did an excellent job providing information to the attendees. Les and Seth Gold, from the TV show “Hardcore Pawn”, encouraged and motivated the attendees with their program, “Facing Your Fears and Mapping Your Future”. Now that the Dixie is over, our association will continue working on local and state issues. We are very pleased to welcome several new members to the Alabama Pawnbrokers Association. Our annual APA fall meeting will be held on October 9. The meeting will be held at the Hyatt Regency Hotel, Riverchase Galleria, in Birmingham, AL.

With the help of several lobbying groups and legal assistance from our attorneys, the Arkansas Pawnbrokers Association crafted a new bill which separates pawn service charges from interest in order to better deal with the state usury cap of 17 percent APR. House Bill 2164 was sponsored by State Representative Dwight Tosh from Jonesboro. Representative Tosh is retired from the Arkansas State Police and was instrumental in assisting the pawnbroker’s association throughout the political process. House Bill 2164 creates a five-person Commission to oversee the pawn industry and promulgate rules and regulations for law enforcement and the pawn industry. The Commission consists of two acting pawnbrokers, two local enforcement representatives, and one citizen at large, all appointed by the Governor. The Governor supported the bill throughout, and his staff was critical to its passage. The bill passed through the House on a 69-7 vote, and was sent to the Senate for approval. After some debate, the bill passed the Senate on a 25-6 vote and was sent to the Governor for his signature. The Governor’s office received pressure to veto the bill because of the 17 percent rate cap on consumer credit, but our argument that pawns can’t be considered loans if there is no obligation to pay back won out in the end. The Governor didn’t sign the bill, but it became Act 985 on April 7 without his signature. It will go into effect the first week of July, and we look forward to assisting the Governor with his appointments to the Commission. Grassroots efforts were the driving force throughout the process and they cannot be understated. I encourage

Rosemary Hipps

National Pawnbrokers Association

Tim Collier, President

SUMMER 2017

State News

all pawnbrokers to get to know their state representatives and state senators because they are the decision makers you will need in the future.

the military (and you would have to give them the discounted rates) a very bad thing. This is a monster that lawyers look forward to if some company is unlucky enough to get a class action suit against them. The Midwest Pawn Convention was held in greater Nashville with a great turn out. We’re off to Louisville, KY, in 2018.

INDIANA

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

As the legislative season winds down, we have had the most success in working toward dealing with some of the problems and issues unique to Hoosiers. The biggest milestone is that Indiana is one of only 10 states in the union that did not allow a handgun to be used for collateral. The ban was in place shortly after the Great Depression in the 1920s. Our first attempt to change it was made by our founding president, Steve Krupnik, in the 1990s. At that time, there was not a legislator around who would put his or her name on any legislation that involved guns. Since then, things have changed. For the past five years, we have attended various police conventions that previously would never have given us an endorsement. This past year, we got a legislator who is exmilitary, pro-gun, and not afraid to take a step forward. We got our needed endorsement from the National Rifle Association. Their representative was present at the Capitol and met with many legislators on our behalf. We got the start we needed with many co-sponsors signing on. The committee vote was 9-0 and Senate floor was 49-0. With that momentum, the House was a cake walk and it’s off to the governor where all indications are that he will make it law. As we are all dealing with the Military Lending Act, Indiana again is one of just a few states with a recent statute that makes military members a “protected class”. This means that refusing to make a pawn loan because someone was in

OKLAHOMA

Mike Blair, President Oklahoma Pawnbrokers Association Opa2016.mike@gmail.com

Senate Bill 569 (see below) was originally introduced and assigned to a committee. However, it never made it to the second reading largely due to the OPA Board and association members impacting the Senate Committee members by calling and emailing in opposition of the bill. SB569

An Act relating to pawnbrokers and precious metal dealers; amending 59 O.S. 2011, Sections 1502, 1508, 1509, 1511, 1515, as amended by Section 1, Chapter 35, O.S.L. 2016, 1530 and 1531, as last amended by Sections 1 and 2, Chapter 322, O.S.L. 2015 (59 O.S.L. 2016, Sections 1515, 1530 and 1531), which relate to pawn and gem dealer transactions; adding definitions; requiring digital photograph of certain property and persons; modifying language; prohibiting certain alteration of property before certain time period; expanding time for certain retention of property; requiring retention of property exact form as presented in transaction; providing exceptions; prohibiting certain dual licensing; and providing an effective date.

SUMMER 2017

National Pawnbrokers Association

pawnder this

The Talk By Rudy Klancnik

When my son turned 12 years old I knew

it was high time we had “The Talk.” After all, it’s a father’s duty to make sure “The Talk” happens before he reaches 8th grade, let alone high school. As you know, a high school locker room can be an absolute jungle, especially for a young man who hasn’t experienced “The Talk.” Was I a tad nervous in preparing my message? You bet. Good thing I scribbled down some notes before I began. I didn’t want to forget a thing. So I sat him down on the couch, turned off the PlayStation, and made sure the ladies were out shopping. I even put the dog outside, so there would be zero distractions. And then I started talking . . . Son, the first thing I need to teach you are the rules of being a true sports fan. These are more like laws than rules, and they’re never to be broken. Sports will be an important part of the rest of your life, so it’s imperative that you learn the correct way to pick your favorite teams and cheer for said teams. So, here it goes: Never Be a Bandwagon Fan

Here’s the thing about picking your team . . . you can’t just pick the team that just won the championship. You can’t don the Golden State Warriors jersey a week after they won the NBA crown when you don’t even know in what city “Golden State” is located. Your fandom boils down to the following: 1. You must have lived in your favorite team’s home city more than two years OR 2. Your dad must have lived in your favorite team’s home city more than two years and cheered for said team ever since OR 3. If you don’t live in a city that has a professional sports team, you’re permitted to adopt one, but even then, you must have a real connection to said team, such as playing for the Little League namesake, OR

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SUMMER 2017

4. I f your parents attended college, you’re allowed to cheer for said college team. Always Go To a Game vs. Watching One On TV

Yes, watching on TV is always a better vantage point – and often a safer experience. You don’t have to contend with the excessive cusser sitting a row behind you or the overpriced food, parking, gear, and tickets. But when you have the chance, always attend live sporting events. There’s just no way TV can capture the first green-flag lap of a NASCAR race or the final pitch of a close baseball game.

pawnder this There’s no announcer who can properly explain the vibe from a rockin’ college football stadium or the feeling when you first step foot inside the gates at Augusta. No one ever brags about “watching” a game on TV.

of the last two decades. But still, I remain steadfast in my cheering for the aqua and orange. Some day, when their time finally comes around, my fandom will pay off. I know a bunch of longtime Cubs fans who understand exactly what I’m talking about.

Jerseys Are Cool For Kids and Ladies

You Can’t Follow Every Sport

Wear all the jerseys you want as a 12-year-old. Wear them into your high school years. You can even stretch it into your college experience, if need be. But after that, after you start working full time, get a girlfriend, pay your own rent, and deal with life’s realities, jerseys no longer can be part of any wardrobe rotation. Men wearing jerseys is tantamount to men bringing their glove to a baseball game to catch a foul ball or home run. It’s a sports law violation of the highest order.

My personal limit is about five – NFL, college football, baseball, NBA, and golf. If I stretch myself, I can include some NASCAR, but that’s really pushing it. College basketball is really only relevant for the month of March, so that doesn’t count. Following more than five sports will make you a shut-in, bound to your ESPN app, and no one wants that. At some point, girls will enter the picture, and you’ll need a little bandwidth for that. So there it is. “The Talk” is done. Man, I wasn’t sure how it would go, but I think I did pretty well if I do say so myself. What’s that, son? Girls? Yeah, go get your jersey on. I’ve got tickets to the game!

It’s a Marathon Not a Sprint

Stick with your favorite teams even through rough patches. I’m a lifelong fan of the Miami Dolphins after spending six years in Florida as a kid. To put it bluntly, they’ve stunk for a majority

Rudy J. Klancnik writes for fun, sells stuff for a living, and cheers for any team playing Ohio State or the Yankees.

SUMMER 2017

National Pawnbrokers Association

calendar of events

JULY 2017

Pawn Expo 2017 July 11-13, 2017 NEW DATES! The Mirage Hotel and Casino Las Vegas, NV Contact Robbie Ellis: PawnExpo@NationalPawnbrokers.org

OCTOBER 2017

California Pawnbrokers Association Convention October 27-29, 2017 Paradise Point Resort, San Diego, CA Contact Kim Andosca: KAndosca@amgroup.us

Index of Advertisers ADVERTISER Page

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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.

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