Official Publication of the National Pawnbrokers Association
QUESTIONS To Ask Your Software Vendor
FALL 2015
THE ROAD TO SUCCESS HOW TO AVOID PAYING THE
NPA
Compliance Piper
MEMBERSHIP
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THE ROAD TO IS ALWAYS UNDER
“Our numbers have doubled since joining the NPA and I believe a lot has to do with the information and advice shared by the more experienced pawnbrokers. If I never attend another NPA convention again, the Member Forum pays for my membership over and over again.” –Scott Paulsen, Peninsula Pawn, Seaford, DE “Over the years, I have done business with many pawnbrokers who have become customers/ friends with much repeat business. Today, many of them have children that have grown up and gone into the pawn business. They’re now doing business with my son, RB Grampp, Jr.” –RB Grampp, Sr, CEO, Bluestone Trading Company, Inc.
“I have been in the pawn industry for 23 years. The NPA keeps me up-to-date on current affairs and allows me to see what’s new during our convention. It also allows for networking with other owners across the nation to see how their business is compared to mine. The classes during the show are also helpful.” –Steve Souza, All That Glitters, Milwaukie, OR
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SUCCESS CONSTRUCTION
Sexual Harassment Complaint SOLUTION: Have employee policy manual reviewed by SESCO Management Consultants.
CAUTION
STOP
$10,000 IRS Fine SOLUTION: Purchase AML Compliance Manual and Red Flags Policy from RMF Consulting.
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Are you missing out on valuable solutions to improve your business? The National Pawnbrokers Association is the only national trade organization representing independent pawnbrokers.
Police Confiscation SOLUTION: Know your Due Process Rights before law enforcement arrives (found in Members Only section).
HAZARD
DETOUR The road to success is always under construction!
DoD Rules SOLUTION: Rely on the NPA Government Relations Committee to provide you with a complete analysis of how the new rules will affect your operation.
Avoid the potholes on the road to SUCCESS with the NPA POTHOLES
ì Advocacy
ì Education
ì Communication ì Resources
NationalPawnbrokers.org
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MESSAGE FROM THE PRESIDENT
Change brings opportunity and challenges
Larry Nuckols NPA President
CHANGE IS INEVITABLE in any industry, and that has never been more true than in the pawn industry today. We have witnessed large swings in gold prices that have caused us to alter our way of doing business. Gold, once at $1,900, is now at $ 1,150 – a 40 percent drop. This has meant re-educating our pawn customers to the changing value of their jewelry and the challenge of meeting their loan needs amidst these large swings. The silver lining has been the departure of the gold buyers who seemed to have sprung up on every corner almost overnight. But the biggest change on the horizon that will affect the pawn industry is on the regulatory side of our business. Recent Department of Defense action brings pawn transactions under the Military Lending Act’s expanded definition of “consumer credit”. You will recall that pawnbrokers were exempt from the previous 2007 rule. Not surprisingly, the Consumer Financial Protection Bureau (CFPB) consulted with the Defense Department in this process as they continued in the pursuit of their stated mission on the consumers’ behalf. The NPA Government Relations Committee worked tirelessly to maintain the exclusion from the 36 percent Military Annual Percentage Rate currently in place for the pawn industry. This process continues and we may not know the outcome for quite some time. If the MLA goes into effect on October 3, 2016, as it now stands, pawnbrokers will have to take many steps to verify that a customer, their spouse, or dependent is, or is not, eligible as an active duty member of the military. This extra time and manpower will greatly increase our cost of doing business, not to mention the limiting of interest and all other charges for credit to a three percent monthly rate. What can we do as individual pawnbrokers? The answer is grassroots politics. Get to know your Congressman and Senators, attend a fund-raising event, go to their next town hall meeting, and reach out to their staff in your district to arrange a meeting or a store visit. Give them a chance to put a face to the industry. When the GRC puts out the call to make contact specifically about the MLA, you will already have your foot in the door and, hopefully, a friend in office who understands that the pawn industry is the only non-recourse lender that consumers can turn to in times of need. No other lending option gives borrowers the choice of redeeming their collateral and without penalty. No other lending option allows the consumer to make this decision without affecting their credit rating, and it certainly does nothing to negatively impact the military readiness of service members. Hopefully, we may once again find a silver lining to this challenge through more informed Members of Congress who are willing to stand side by side with us as we work to achieve a reasonable and acceptable solution. Please take time to be part of this effort. The NPA has excellent representation in Washington, DC, and we are making use of that talent and experience. However, there is no more powerful tool than the grassroots efforts of pawnbrokers from across the country reaching out one on one.
FALL 2015
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Table of Contents
FALL 2015
COVER STORY
35
How to Avoid Paying the Compliance Piper Page 24
HIGHLIGHTS
26
Finding the Right Pawn Software for Your Business Page 26 Nailing the Selling Price
Page 32
Kathleen Barbee, Lombard Financial Services, Inc
IN THIS ISSUE Message from the President Message from the Executive Director Community Involvement FBL Donation Thank You A Year of Giving Back Compliance Paying the Compliance Piper NICS News Government Relations Government Relations Update Pawn Acronyms Member Spotlights Pawnbroker Spotlight: Decatur Jewelry and Pawn Young Pawnbroker to Watch: Lauren Kaminsky Goldman Industry Partner Spotlight: The Trendz Member News Interview with Dana Meinecke New Board Members NPA Young Professionals State Association News New NPA Members
Ed Bean, Suffolk Jewelers, Inc
1 4
Marc Chamberlain, FBI NICS Liaison
11 49 24 52 6 51
8 12 16 14 15 35 58 61
Contributors for this issue of National Pawnbroker
Robert Frimet, RMF Consulting
Member Benefits NPA Mentor Program 18 Member Benefit from SESCO 31 Business Sense Creating an Annual Budget 20 Authenticating Designer Handbags 22 When is a Karat Not a Karat 37 The 4 C’s: A Pawnbroker’s Guide to Purchasing Diamonds 39 Game Winning Deals 42 If You Write It, They Will Come 44 Emergency Planning: Part 2 47 Book Corner 61 Pawnder This 62 Calendar of Events 64 Index of Advertisers 64
Tony Gallo, Sapphire Protection JoAnn Garrison, FBI NICS Liaison Mike Katsanevas, Crown Jewelers and Pawn Rudy Klancnik Michael Mack, Max Pawn Kristin Mahan, GIA Emmett Murphy, 3CLickMedia, LLC Kim Michalik Pease and Curren Steve Stallcup, Stallcup Group Len Summa, Data Age Business Systems Inc
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. © 2007-15 National Pawnbrokers Association: PO Box 508, Keller, TX 76244 • (817) 337-8830 • NationalPawnbrokers.org EDITOR: Margie Swoyer, Director of Communications & Marketing, Margie@NationalPawnbrokers.org DESIGNER: Kim Baker, Orange Brain Studio
2 | NATIONAL PAWNBROKERS ASSOCIATION | FALL 2015
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MESSAGE FROM THE EXECUTIVE DIRECTOR
Rewind and Renew SOMETIMES, in order to move forward, we need to look back at where we have been. I’ve been thinking about all of the accomplishments made this year and how they will help us in the years to come. LEGISLATIVE CONFERENCE
At NPA’s annual Legislative Conference, bank discontinuance and Operation Choke Point (the investigation between banks and businesses believed to be at a higher risk for fraud and money laundering) were a main topic of concern. Many Dana Meinecke, meetings were held with Members of Congress and NPA Executive officials at some of the major agencies involved in Director a push to keep the pawn industry off the list. It’s not over, but our message has been heard. We will continue to be take proactive steps and educate our legislators and bureaucrats on behalf of the pawn industry. Another subject that has been cause for concern is the Department of Defense’s proposed 36-percent rate cap for members of the military and their dependents. While we were not successful in keeping pawn out of this new regulation, we were again able to get our message across to those making the decisions. Thank you to everyone who wrote letters and contacted their congressional members. Every voice counts! PAWN EXPO
NPA STAFF
Dana Meinecke Executive Director Dana@NationalPawnbrokers.org
Helen Moore Director of Membership Helen@NationalPawnbrokers.org
Lindsay Wilson Director of Meetings and Events Lindsay@NationalPawnbrokers.org
Margie Swoyer Director of Communications and Marketing Margie@NationalPawnbrokers.org
Marliss Allen Program Coordinator – Events and Communication Marliss@NationalPawnbrokers.org
Priscilla Fitz Executive and Membership Program Coordinator Priscilla@ NationalPawnbrokers.org
“Raising the Bar” was the theme of this year’s annual convention and trade show held in Las Vegas in July. We can safely say we accomplished our mission with more sessions, more classes, and more opportunities for networking. Utilize the information you learned at the show to build on your success for next year. CERTIFIED PAWN PROFESSIONAL (CPP)
The CPP program was launched at Pawn Expo with resounding success. Dozens of pawnbrokers participated in courses on store operations, marketing, and human resources, and are well on their way to earning their CPP designation. Three additional courses on federal regulations, product knowledge, and security will be available in 2016. Take advantage of this new learning program to improve your business skills and your commitment to the industry. All of this brings us to the last NPA event of the year – your membership renewal. Ben Levinson’s challenge, to have each member recruit a new member, is still fresh in my mind, and hopefully yours as well. Together, we are more than just a group of voices. We are a powerful chorus singing in unison. So, share your association experiences with other pawnbrokers in your community and state. Let them know why they need to join NPA, so we will be even stronger in 2016. Then send in your own membership renewal!
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
4 | NATIONAL PAWNBROKERS ASSOCIATION | FALL 2015
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GOVERNMENT RELATIONS
Connecting with Capitol Hill WHAT’S ON THE HORIZON
federal and state laws. Eventually these laws will be changed to reflect the reality as your current Government Relations of internet lending. As an association, Committee (GRC) Chairman, I would we need to insist on a level playing like to tell you a little about myself. I am a field so consumers can be protected in third generation pawnbroker from Boston, all situations. MA; our family business was started over The digital reporting to law enforcement 100 years ago in 1913. I helped found and privacy concerns are still there all the National Pawnbrokers Association, over the country. Onerous laws affecting and have held almost every chairmanship Ed Bean, pawnbrokers and their customers are and office, including President. When NPA GRC Chair being proposed, and occasionally passed, I was President, I helped create our in numerous jurisdictions. Search and seizure issues current GRC program and, along with the help of still exist and can rear their ugly heads at any time. many far-sighted individuals, we kept it funded in The NPA Political Action Committee (PAC) its infancy. fund is how we are able to support our friends in We have a diverse membership that operates Congress. We attend fundraisers in Washington, in all 50 states with multiple interest rates, fee DC, and across the country. We need to raise structures, terms, and regulations. Having seen money for our PAC fund, so that when we get how we have dealt with the issues of the past, our a request from a friend in need, we are able GRC team has been given a realistic view of our to respond. present issues and those that we will surely see in It is imperative that we all attend the NPA the future. Legislative Conference in Washington, DC, on The threat we face today is the same one that April 27, 2016. If you have never attended in we faced 25 years ago - a national interest rate the past, then prepare for an experience you will cap. In the past few months Congress passed a never forget. It is an eye opener as to how the Military Lending Act (MLA) that will effectively government works and encourages proactivity put a 36 percent rate cap on all loans to the military rather than reactivity. and their dependents. It is the job of the GRC to If you have attended before, then coming again figure out how we, as an industry, will be able to brings your past experience to the table. Your comply with these new regulations. In the coming knowledge is invaluable to the first-timers and months you will be receiving updates on how to brings back the same satisfaction you had the first comply with the MLA as well as on our progress in time you went. Washington, DC. We will be attempting to receive Together, our small association has accomplished an exemption from this act and also trying to more than those five times our size just because we mitigate our liability. choose to go to Washington, DC, and get involved Another major issue on the horizon is internet in our future. lending – a reality we must accept now that we I hope to see you all at the NPA Legislative are in the digital age. It is the internet lending Conference this April. industry’s responsibility to comply with all existing
SINCE THIS IS MY FIRST ARTICLE
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PAWNBROKER SPOTLIGHT
Decatur Jewelry and Pawn HELPING CUSTOMERS IN THE HEARTLAND
NP: What makes
DECATUR JEWELRY AND PAWN has been a member of NPA for the past 22 years. Perry Lewin, owner of the two-store operation in Illinois, reflected on his career in the pawn industry. NATIONAL PAWNBROKER (NP): Tell us about
your company.
PERRY LEWIN (PL): We have been in business
for 23 years and have two stores in Illinois – one in Decatur and another one in Mt Zion.
NP: Share a story of a customer you have
NP: How did you get started in the
pawnbroking business? PL: I’m a third-generation jeweler from Chicago. I met a gentleman at a chamber of commerce party who convinced me to use my jewelry background and experience to open a pawn store with him. That day changed my life forever. It was the best business decision I was most afraid of making.
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your store different from other pawn stores in the area? PL: Customer service, first and foremost. Secondly, I hire experts in their respective areas jewelry, firearms, electronics, or music, and then train them on our procedures. My employees can flourish in their field and work within our parameters. Lastly, our jewelry department rivals many of the independent and mall jewelers in selection and display.
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helped out.
PL: One of my long-time customers was a factory
worker with a family and all the typical expenses. He had put in 25-plus years at a factory when it was bought by another company and a lockout developed. Without any compassion from traditional lenders, he was soon left helpless with many payments to make. We helped him through
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PAWNBROKER SPOTLIGHT the lean times by pawning a few of his nicer items – a firearm collection, a Harley Davidson, and jewelry. He’s now working again and whenever he’s in my store, he tells my employees that if it weren’t for us, he wouldn’t have been able to keep the lights on, his family fed, and his daughter in college. That’s stuff I like to hang my hat on. NP: In your opinion, what are the biggest
challenges facing pawnbrokers today?
PL: The constant onslaught of more federal, state,
and local regulations. Also trying to generalize our industry with other lenders and always trying to put one-size-fits-all legislation or cap on our industry without really knowing how our industry works or how useful the industry is to those who use it. NP: How does Decatur Jewelry and Pawn give
back to the community?
PL: Charity, charity, charity. I give a lot to different
organizations which helps get our name out to the
community. Whenever customers see our name associated with charitable causes, they make a point to stop and thank me. I have also developed great relationships with many city council members and business leaders. People like to do business with people they feel comfortable with. So, I try to attend as many functions as my schedule allows. I normally run into the same crowd at each event and when our conversation turns to business, I invite them into the store for a personal tour. They’re usually pleasantly surprised by what they see. NP: What is the best advice you ever received? PL: Make money with your friends, not off
your friends. NP: What advice would you give to a
pawnbroker just starting out? PL: Always be hungry to learn. Attend as many pawn, jewelry, firearms, or other business seminars as your budget and schedule allow. Join your state association and, of course, the NPA. Don’t look at (Continued on page 59)
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COMMUNITY INVOLVEMENT
Thank You for Donating FBL SCHOLARSHIP FUND GROWS THANKS TO PAWNBROKERS’ GENEROSITY EVERY YEAR, college tuition is on the rise. According to the Associated Press, the class of 2015 is the most indebted class of all time (until next year). The national average of student loan debt is estimated to be a little over $35,000 per student this year.
The NPA started the Future Business Leaders (FBL) scholarship program in 2003 and since has awarded $132,000 to deserving students. Scholarship winners are selected based on academic performance, community leadership, and a written essay. Qualified applicants are
the children, grandchildren, a customer, employee, or individual sponsored by a member in good standing in the NPA. More information about the FBL scholarships can be found at NationalPawnbrokers.org under the Community Relations tab. If you do not know anyone to sponsor, but would like to contribute to the scholarship fund, send your check to NPA, PO Box 508, Keller, TX, 76244. For credit card donations, call the NPA office at (817) 337-8830 or contact Priscilla@NationalPawnbrokers.org.
DONATIONS FOR 2016 (AS OF 10/15/15): 82 Pawn Inc Columbus, MS
Bim’s Loan Detroit, MI
Easton Loan Co Saint Louis, MO
AAA Gun & Pawn Shop Deland, FL
Bonne Terre Pawn Bonne Terre, MO
Alan’s Jewelry & Pawn Asheville, NC
Braswell & Son Little Rock, AR
Easy Cash Community Pawn San Diego, CA
American Pawn & Pickers Asheville, NC
Brittex Financial, Inc San Antonio, TX
Anonymous Atlanta, GA
Brown’s Jewelry & Loan Co Rosemead, CA
BG Loan and Jewelry Co Belle Gardens, CA
Cash N More Pawn and Jewelry Wichita Falls, TX
B&B Inc of Portsmouth, OH
Cashco Jewelry & Loan Chula, CA/San Diego, CA
Batesville Gun and Pawn Shop Batesville, AR Bayou Pawn & Jewelry #2 Walker, LA Bayou Pawn and Jewelry Hammond, LA Beneficial Exchange and Pawn New Albany, MS Best Deal Pawn & Gun Columbia, SC Beverly Loan Co Beverly Hills, CA Big City Pawn Houston, TX Bill’s Pawn Shop LLC El Dorado, AR
Center Gold Centereach, NY Chad’s Pawnshop Lake Charles, LA Clark Loan and Jewelry Inc Aberdeen, MD
Maja4 Inc DBA Herman’s Pawn Shop Collinsville, IL
Rags to Riches Pawn Shop Hannibal, MO
Max Pawn Las Vegas, NV
SO Accurate Group, Inc Long Island, NY
El Buffalo Pawn Laredo, TX
MMJ’s Pawn Las Cruces, NM
Sparklez, LLC Castle Shannon, PA
EZ Pawn Lebanon, MO
Modell Financial Inc New York, NY
Flash Pawn Memphis, TN
National Jewelry & Pawn, Inc Chapel Hill, NC
State Gold Buyer and Loan Company Newark, NJ
Fulton Loan Office Atlanta, GA Gardena Jewelry and Loan Gardena, CA Gold N Connection Oakland Park, FL Jery’s Pawn Hope Mills, NC Joe Flynn Limited Quality Pawn Stanley, KS
Tom’s Pawn and Wholesale Jewelry Murfreesboro, TN
Numis International Millbrae, CA
Trader Jim’s Pawn Shop, Inc Arlington, TX
Ohio Loan Co Inc Dayton, OH Old South Pawn Macon, GA Palace Pawn Broker San Diego, CA Paradise Pawnbrokers Bronx, NY
Dillon Gage Dallas, TX
Larry and Rosemary Hipps Florence, AL
Pawn King Arnold, MO
Dixie Pawn Harrisonburg, VA
Leo Marks Jewelers Toledo, OH
Dollar Pawn, Inc Haleyville, AL
Lincoln Square Pawnbrokers Inc New York, NY
Dynasty Jewelry and Loan Norcross, GA
M&M Pawn Shop Corp Houston, TX
FALL 2015
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NH Pawnbroker Services Salem, NH
K&K Loans Buckhannon, WV
Dan’s Pawn Inc Panama City, FL
Ted’s Pawnshop Norwood, OH
Pine Ridge Pawn Naples, FL Quik Pawn Texas City, TX R J Cash Enterprises Inc Miami Gardens, FL
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Trader Man Pawn Dona Ana, NM Uncle Dan’s Pawn Dallas, TX Uncle Dan’s Pawn, Gun & Archery Elizabethtown, KY USA Pawn and Jewelry Pearl, MS Valley Pawn Sun Valley, NV Vertical Computer Systems Inc Pompano Beach, FL WV Pawn of Morgantown Morgantown, WV
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YOUNG PAWNBROKER TO WATCH
Lauren Kaminsky Goldman NEW YORK’S GOLDGIRL
LAUREN KAMINSKY GOLDMAN is President
of New York City multi-store operation, EZ Pawn Corp. Like many others in the industry, Lauren was born into the business, but it was not what she had envisioned for her future. However, after graduating from Boston University, she came to appreciate the fundamentals of the pawn industry and began to spot opportunities in soaring spot prices of precious metals and tighter lending practices from traditional banks. With her help, the company has grown from five stores to 14. For Lauren, the best part about her job is that there is no solid job description. “Each day is full of fire drills and surprises.” The jewelry aspect of the job is particularly exciting for her as the items coming in are “entirely unpredictable and are never short of amazing”. Part of her business is also running her blog, pawnonthecobb.com, which dispels common misperceptions about pawn and highlights the excitement and unpredictability of the job, the pieces she encounters, and the industry as a whole. Along with her blog, Lauren has taken other steps to shine a brighter light on the pawn industry. When she first started out, it was clear that pawn
was a taboo topic as a result of misperceptions and a lack of understanding. Her first task was to break through the intellectual barrier using education. Lauren and her father, David, launched the firstever pawnshop subway advertisement campaign in New York City. The campaign was a huge success as it educated, raised awareness, and built the EZ Pawn Corp brand in the local endmarket. Lauren is still asked if they are “the” pawnshop from the subway ad. Lauren is passionate about keeping the industry strong and believes pawn has survived by being consistent. Although financial institutions, currencies, and even whole civilizations have come and gone over the centuries, precious metals have been the underlying benchmark of value. “To that end, the industry has one very fundamental and structural theme on which to build. The responsibility is on us—the industry—to educate both the public and ourselves and up our end game in how we provide our service.” She believes new technology will play a role in the future of pawn and the industry needs to evolve
“ The responsibility is on us—the industry— to educate both the public and ourselves and up our end game in how we provide our service.”
(Continued on page 61)
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NPA NEWS
It Starts At the Top DANA MEINECKE, NPA EXECUTIVE DIRECTOR
DANA MEINECKE has been head of NPA’s Keller, TX office since 2006. As Executive Director, her role is to implement the strategies and goals set by the Board of Directors. She oversees all operational functions of the association, manages the five staff members, and gets a new boss every two years when the NPA elects a new president. Every day on the job is different for her. From fielding pawnbroker calls to strategizing with Board members to working with the staff to ensure the goals of the association are being met, Dana keeps the organization running smoothly. Much of her time is spent reading and conducting research on other organizations and associations for ideas on membership, governance, and education.
Dana’s German Shepherd trio: Alex, Angel, and Tilly
The hardest part of the job, according to Dana, is recruiting members, ensuring the association stays relevant, and making certain that NPA members get the best return on their investment. When asked what the best part of her job is, she gave an emphatic, “My staff. I feel lucky because I can say I actually look forward to coming to work every day.” Dana, born in Denver, CO, is one of three girls. Billing herself as “an Air Force brat”, she and her family moved every two years and lived in Arizona, Minnesota, Mississippi, California, New Jersey, and
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NPA NEWS Germany. Her work experience includes 10 years in international sales with American Airlines in Fort Worth, TX, and over five years as a teacher for a major foreign language school in Germany where she taught English as a second language. Dana has two children, three grandchildren, and
recently moved her parents into a house across the street from hers. She is married to Juergen (known to many NPA members) and they enjoy traveling around the world in their free time. She is also “mom” to three German shepherds – Alex, Angel, and Tilly.
MEMBER NEWS
Board Education NEW BOARD MEMBERS WELCOMED TO NPA
Michael Goldstein listens to a discussion of board policies. Seth Gold and Larry Nuckols, NPA President, review the NPA orientation manual.
NPA’S NEWEST BOARD MEMBERS attended an
orientation program at the association headquarters in Keller, TX, on Wednesday, September 2. The educational training session enables new members to quickly assume an active role in association leadership by learning more about the organization and their responsibilities as a board member. Board members attending this year’s program were: • Seth Gold – American Jewelry and Loan, Detroit, MI • Michael Goldstein – Empire Loan, Boston, MA • Larry Nuckols – Brittex Financial Inc, San Antonio, TX
New Board Members (l to r): Michael Goldstein, Larry Nuckols, and Seth Gold
The orientation program included topics on board governance, finance, media, marketing, public relations, and the NPA Strategic Plan that was developed in 2014. Presentations were also given by staff members on events, membership, and communications/marketing.
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INDUSTRY PARTNER SPOTLIGHT
The Trendz DIAMOND BUYING MADE EASY
THE TRENDZ
TURN YOUR DIAMONDS INTO CASH
ASHOK MEHTA is the owner of The Trendz, a
jewelry and diamond-buying company with one location in Los Angeles, CA, and another one in New York, NY. The Trendz has been a member of NPA since 2003 and is a huge supporter of the association. We sat down with Ashok to learn more about his company and how he has remained successful through the ups and downs of the diamond business. NATIONAL PAWNBROKER (NP): Tell us more
about The Trendz.
ASHOK MEHTA (AM):
The Trendz buys and sells overstock as well as unwanted diamonds and jewelry. We also sell new diamonds and jewelry along with certified stones and moissanites. NP: What is your personal background? AM: I started in the diamond industry in 1970
in India learning how to cut and polish rough diamonds. From there, I transitioned into producing cut and polished diamonds and selling them. After moving to Mumbai, I started a wholesale import-export business expanding into Hong Kong and Bangkok. In 1992, I set up a jewelry manufacturing factory in India and moved into the finished goods market. In 1998, I moved to the United States for better opportunities,
Ashok Mehta, The Trendz, in his booth at Pawn Expo 2015.
and laid the groundwork to start up what would eventually be called The Trendz. NP: Many of our pawnbroker members see you at Pawn Expo. How many other trade shows do you do each year and in what cities are they located? AM: We attend every regional pawn show in addition to Pawn Expo and most International Watch & Jewelry Guild (IWJG) shows around the U.S. We also exhibit at JCK Las Vegas, SJTA Atlanta, and JIS Miami. NP: What new trends are you seeing in the diamond industry? AM: The biggest change in the diamond market is lab-grown diamonds. The rate at which these diamonds are permeating the market is starting to affect the prices of real diamonds worldwide. We’ve already seen a 25 percent drop in the market since last year, and it’s yet to be determined where that will end up. Additionally, (Continued on page 18)
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THE TRENDZ
TURN YOUR DIAMONDS INTO CASH
Our popular jewelry line, THE BRIDAL TRENDZ, has been providing aggressively priced bridalwear for pawn shops. With an excellent 2014, we’re back to help you increase your bridal sales. Check out our brand new tr triple-keyed website at:
www.thebridaltrendz.com
WE BUY
MELEE DIAMONDS LARGER DIAMONDS BROKEN DIAMONDS CHIPPED DIAMONDS BURNT DIAMONDS UNWANTED JEWELRY
550 South Hill St., #1340, Los Angeles, CA 90013 Toll-free: 866.337.7464 | Cell: 213.999.0237 | Fax: 213.622.6612 580 5th Ave., #1902, New York, NY 10036 Toll-free: 855.575.5760 | Cell: 213.999.0237 | Fax: 212.575.5761
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INDUSTRY PARTNER SPOTLIGHT (From page 16)
The Trendz
De Beers changed their policy on the amount of rough diamonds entering the market, which should slow things down quite significantly. NP: What makes The Trendz different from other diamond-buying companies? AM: Our commitment to customer service, while intentionally managing customer expectations, is something we take pride in. We often see diamond buyers who will pay exorbitant prices simply to steal a sale away from a competitor. This provides a false sense of market pricing to the customer. While our prices are competitive, we do not overextend ourselves, as it ends up being detrimental to all involved. With this in mind, we hope to create long-term partnerships with our customers rather than just focus on a single sale. We understand the needs of our customers and work with them to increase their sales margins through our bridal semi-mount options. We set up our customers to succeed by partnering with them and learning from their experiences while also sharing and educating them about our industry along the way. NP: What advice do you have for pawnbrokers trying to sell their diamonds? AM: The Great Recession has come and gone. Jewelry handed down through the generations has been all but melted. Most pawn stores are getting in new goods today. That means their customers know exactly what they paid for it. As the jewelry supply tightens, pawnbrokers need to rethink their business models. Instead of melting down this jewelry, consider popping out the center stone and keeping it. Exchange the rest for new jewelry that is guaranteed to sell. It’s time to refocus your jewelry business on consumers rather than wholesalers, and if you need help, allow us to show you how to do that.
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“ While our prices are competitive, we do not overextend ourselves, as it ends up being detrimental to all involved. With this in mind, we hope to create long-term partnerships with our customers rather than just focus on a single sale.” —Ashok Mehta
NP: Why are you a member of NPA? AM: We love the pawn industry. It is an industry
committed to helping local communities by offering ways to buy and sell with minimal hassle involved. The kind of temperament required to succeed in the pawn industry is the kind of temperament we appreciate in our partners. NPA is the best way for us to connect with such likeminded folks. NP: What is one thing about you that would surprise our members? AM: Over the last year, we have added gold and diamond bridal semi-mounts to our jewelry inventory. These have been selling really well for our pawn store partners. We are excited to keep expanding this in the coming years. NP: What is the best way for our members to contact you or learn more about your company? AM: Visit our websites at www.thetrendz.biz and www.thebridaltrendz.com.
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BUSINESS SENSE
Dollars and Sense CREATING AN ANNUAL BUDGET By Mike Katsanevas
NO ONE WANTS TO THINK ABOUT a budget,
but using one can actually help transform your business. Budgets help you reach your goals, manage your business growth, and help you evaluate new business opportunities that come along every day. The pawn business is unlike any other business, and presents unique challenges. Forecasting budgets, revenue, and expenses is complex, but not impossible. Below are some suggestions on how to address these topics and help you avoid costly mistakes. REVENUE AND EXPENSES
In essence, a budget estimates your revenue and expenses for a specific period of time. Revenue is derived from sales, pawn interest payments, repairs, and other ancillary services you may offer. Expenses include rent/mortgage, utilities, marketing, payroll, shipping, daily supplies, maintenance and repair, professional services, taxes, etc. Don’t overlook future growth of your pawn receivables. You will have to budget a “reserve” for the increase in your receivables if you want your operation to expand. Revenue is probably the most difficult component to forecast. During the first quarter (January 15 to March 30), you’ll experience a decrease in your pawn receivables as your pawn clients receive their tax refund checks and begin redeeming their merchandise. This subsequently increases your cash flow. Beginning April 1, you will see the same items that they redeemed returning to your
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pawnshop for a loan as well as what they purchased with that refund. This will decrease your cash flow, and it’s important to budget for the increase in lending. From October 1 to February 15, you should experience better than average retail sales from holiday shoppers. Of course, this is a time when pawn clients still need money, so be prepared for that demand on your lending / purchasing cash. The pawn industry’s revenue levels readjust unlike any typical small retail business. The main focus should be growing your loan balance. As long as that balance grows, your interest payments, purchases, and sales will also grow. The loan balance is the key. Keep that component “well-fed”, and your company will quickly grow. Anticipating the overall demands of pawn clients will help avoid running short of funds and your company Mike Katsanevas Crown Jewelers and Pawn Mike Katsanevas, a third generation pawnbroker, is the owner of Crown Jewelers and Pawn in Salt Lake City, UT. He opened his own store 20 years ago and now has two locations with plans to open a third in mid-2016. Mike is married with two sons.
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BUSINESS SENSE from losing future business because you have no money to loan. Estimate your expenses based on last year’s numbers. Review your checkbook, bank account, and receipts for realistic numbers. The goal is to then make the revenue equal to or greater than the expenses. If your expenses are higher than your revenue, look where you might be able to save on costs or increase your income. INVENTORY MANAGEMENT
Another important revenue stream is inventory management. To keep your “inventory turns” up and that revenue flowing, it's very important to monitor your inventory aging reports. Typically, inventory held beyond 45 days starts costing you money and weighs down your revenue stream. Decide when it’s time to aggressively sell aged inventory. You may lose money or make a minimal profit at best. Your objective should be to get that cash back in the loan drawer so it can be loaned out again.
HIRE A PROFESSIONAL
With all this information you now need a support team. Consider hiring an accountant or CPA who has done extensive work with the pawn industry. This will be one of the best investments you will make in your future. Their knowledge and experience with their other pawnshop clients will help create your budgets and cash flow analysis. They can also assist you with your income tax planning as well as any future expansion plans you may have. The tax code changes every year, and the accounting professional’s job is to stay on top of it giving you sound advice. You may feel that professional help and software are premature and expensive, but this investment will pay early dividends and help you avoid financial pitfalls. Don’t hesitate to take advantage of the information provided by the pawn chat group or the NPA Member Forum. They can steer you in the direction you need or put you in touch with the individuals to help you.
PAWN MANAGEMENT SOFTWARE
With all this information, what should we employ to calculate our budgets, cash flow, and growth? First and foremost, invest in pawn management software (PawnMaster, CompuPawn, Bravo, Advantage Software International, etc.) The more powerful the software, the easier it will be to make informed decisions. Talk with NPA members about which software they prefer and why. Some of the answers you receive will range from price, analytics, management function, and customer service. Make sure the software has an analytics/management module built in. The analytics/management module should be able to give inventory turns, cost of goods sold, transaction times and days (by type of transaction), employee profitability, item type and number of inventory turns as well as default rate of items, store and employee default rates, and overall shop statistics. Without this data, you’re just generating pawn tickets.
EMBER
NON-M
Rate urse $ 499/co R
MEMBE
Rate rse $ 199/cou
BEGIN EARNING
YOUR CPP
COURSE OFFERINGS INCLUDE: Store Operations • Human Resources Marketing, Advertising, and Public Relations For more information about the program, visit NationalPawnbrokers.org and click on the CPP tab
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BUSINESS SENSE
Real or Not? BEGINNER’S GUIDE TO AUTHENTICATING DESIGNER HANDBAGS By Michael Mack
AS ELECTRONICS AND MUSICAL instruments begin
to lose their resale value, pawnbrokers should take a look at nontraditional luxury items like authentic designer handbags, wallets, belts, travel bags, sunglasses, and other fashion accessories. High-end fashion brands like Louis Vuitton, Chanel, Gucci, Hermes, Dior, Fendi, Balenciaga, Bottega, Judith Leiber, YSL, Chloe, Celine, Michael Kors, and Coach can be a new source of revenue for your store. HOW TO AUTHENTICATE
All brands have unique and specific characteristics that set them apart from other brands Micael Mack Principal Owner, Max Pawn
Michael Mack is the Principal Owner of Max Pawn, Founder of Max Luxx Authenticators, and Strategic Partner with Entrupy. He can be contacted at Michael@maxpawnlv.com. James McCracken is Manager of Max Pawn and can be contacted at James@maxpawnlv.com.
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while also helping to verify their authenticity. Some of the characteristics to look for, depending on the brand, include stitching, hardware, heat stamps, leather sealant, date codes, and model numbers. One of the most popular bags seen at Max Pawn is the Louis Vuitton Monogram Speedy 30 handbag. Speedy 30s are made from a water-resistant coated canvas exterior with leather vachetta trim and handles. Take a close look at the monogram pattern to make sure you see continuity. Do all of the symbols look consistent throughout? Is the size of the monogram normal? For Speedy bags specifically, Louis Vuitton will use one large piece of canvas for the bag and wrap it around. The monogram will be right side up on the front and upside down on the back. Whenever you see a Speedy bag come in with the monogram right side up on the front and the back, you can automatically conclude the bag is a replica. Next, look at the vachetta natural leather trim and handles.
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In newer handbags, the handles and trim are a light natural tan color. Over time, the oils in our hands create a patina or darkening in the leather which you will see in some of the older handbags. Many replica bags have handles and trim with an orange tint. Whether the bag is new or old, the leather should never look orange, and any bags having this will give you another quick hint that the bag may be a replica. Stitching is another important factor in distinguishing an authentic and a replica Louis Vuitton Speedy bag. All Louis Vuitton stitching is extremely precise with every stitch being straight and perfectly in line all the way across both the exterior and interior. Any handbags with botched or uneven stitching should bring up a red flag. DATE CODES
Although the format of the date code has changed throughout the years, every Louis Vuitton handbag and accessory produced after 1980 has a date code, a
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BUSINESS SENSE set of letters and numbers that correspond with when and where the piece was made. In the 1980s, the date code consisted of three or four numbers with the first two numbers representing the year and last number(s) representing the month. “836” would indicate a date of June, 1983. For all Louis Vuitton items produced between 1990 and 2006, you will see two letters followed by four numbers. The letters represent the country of origin. The first and third numbers represent the month of production, while the second and
fourth numbers represent the year of production. For example, the date code “TH0013” would tell us that a particular Louis Vuitton bag was made in France in January of 2003. Date codes for items made in or after 2007 have the same two letters and four numbers with the two letters still representing the country of manufacture. The numbers switch up a bit however, with the first and third representing the week of the year, and the second and fourth still representing the year. For example, the date code “CA0124” indicates this particular Louis
Vuitton item was made in Spain during the second week of 2014. Keeping an eye out for these specifics will have you well on your way to setting apart the authentic from the replicated Louis Vuitton items. For those times when you are not sure, Max Luxx Authenticators can help. Max Luxx Authenticators was created to give pawnbrokers a quick assurance of authenticity. Text or email a few select photos to the Max Luxx authentication team, and clients will receive a reply within the hour (typically within less than 20 minutes), stating whether an item is authentic with 98% accuracy. Text requests can be sent to (702) 913-5626 or email the information to info@maxluxx.com.
INDUSTRY PARTNERS MAKE THE DIFFERENCE
ENDURING ALLIANCES BRING SUCCESS NPA’s Industry Partners create opportunities for the NPA community. They close the gap between ordinary and extraordinary. Together with their support, we can continue to grow and move the industry forward. Interested in what NPA Industry Partners have to offer? See their ads in this edition of National Pawnbroker or visit the Pawn Industry Market Place on NationalPawnbrokers.org.
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COMPLIANCE
Paying the Compliance Piper WHAT HAPPENS IF YOU DON’T COMPLY By Bob Frimet, CAMS
NEWS FLASH: M’s Pawn Shop in Los Angeles
recently received fines of $175,000 from a Dealers in Precious Metals and Title 26 pawn IRS examination. It was determined the company failed to comply with Title 31 in that it did not have an Anti Money Laundering (AML) program in place nor did it file 77 8300’s from 2010 to 2014. Additionally, the company also failed to file what the Justice Department considered to be 10 “obvious SARS” (Suspicious Activity Reports). OK….don’t get too excited. The above news flash is fiction, but only because M’s Pawn Shop doesn’t exist. Civil and criminal fines are on the rise for failure to follow federal regulations. You wouldn’t sell a gun without a license, would you? So why would you fail to comply with other federal regulations as a precious metals buyer or a pawn store owner? The Dealers in Precious Metals regulation fell under the purview of Title 31 in 2006. Since then, anyone who purchases gold or any precious metal of 50 percent or more in purity as an aggregate; and
Bob Frimet Specialist, RMF Consulting
Bob Frimet is a Certified Anti Money Laundering Specialist (CAMS) representing MSB’s, pawnbrokers, dealers in precious metals, and digital currency processors. He has provided anti money laundering programs, policies and procedures, independent reviews and training since 2005. Bob can be reached at (702) 596-8370 PDT or bob@ checkconsultants.com. You can also visit his websites: CheckConsultants.com and CheckCashingCompliance.com
in the amount of $50,000 or more in the previous calendar year; and sells at least that amount to a broker, refinery, or dealer is considered a Dealer in Precious Metals. If you are a Dealer, you must have a written policy and procedure, internal monitoring, ongoing training, and independent reviews in addition to understanding how and when to file SAR’s and 8300’s. The following statistics were published based on Bank Secrecy Act (BSA) investigations in 2014. • Investigations initiated - 4297 • Prosecution recommendations - 3478 • Information/indictments - 3272 • Convictions - 3110 • Percent to prison - 79.6% AVERAGE TIME SERVED: 3 YEARS, 4 MONTHS
(Source: Justice Department) Though investigations are down by approximately 17 percent since 2012, convictions
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It’s certainly conceivable that failure to comply can lead to fines and penalties.
Your
Full Service
Consulting Company
Pawn and Precious Metals Compliance IRS Compliance Audit Guidance are up nearly 20 percent. That means the government is doing a better job of putting cases together. More concerning is the staggering 79.6 million dollars in fines that was levied by FinCen (Financial Crimes Enforcement Network) which regulates casinos, banks, MSBs, and Dealers in Precious Metals, among others. And that was just in June of 2015. That is not to say that your business will be fined millions, but, what about thousands? It’s certainly conceivable that failure to comply can lead to fines and penalties, so you should spend a minuscule amount making sure your house is in order. WHAT TO DO?
1. Understand your requirements under the law - both Title 31 and Title 26. 2. If required, have a strong written policy and procedure in place that complies with federal regulations. 3. Once your program is in place, follow it. Conduct internal monitoring, training, and independent reviews. Lack of implementation
Check Cashing and Payday Loan Turnkeys
Serving the pawn community since 2005
1-866-204-7209
www.checkconsultants.com is the same as not having a program to begin with. The cost of compliance, such as implementing a program and conducting an independent review, is far less than those costs bore by potential fines and penalties. Spending one to two hours per month (based on a single store) to ensure implementation is a small price to pay, not just to avoid fines and penalties, but to do your part in ensuring that financial-related crimes don’t make their way into your business. Don’t pay the Compliance Piper!
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BUSINESS SENSE
Finding the Right Pawn Software for Your Business 10 QUESTIONS YOU SHOULD ASK YOUR VENDOR By Len Summa, Data Age
THERE IS A LACK OF unbiased information and knowledge about pawn software in the pawn industry. Now, more than ever, software needs to be as relevant to pawnbrokers as their negotiating skills, store signage, location, and ability to hire the right people. STEP 1
Understanding the importance of good software and how it will impact you and your business is the first step. The landscape of the industry, the market, and business in general has changed and continues to change. Changing your cycles and patterns are key because keeping up with change is no longer a luxury; it’s a necessity to compete in the market. STEP 2
Finding and securing new customers is also evolving quickly. Securing greater wallet share from existing customers and new customers is difficult and expensive. Understanding your software and what you want to get out of it is a crucial second step in the process. If you have been using software for several years already, you are an early adopter. You already know the relevance of software to your business. However, even early adopters continually need education and support to ensure they are getting the most out of their technology investments. Your software should also aid you in finding new customers as well as identifying new revenue opportunities from your current customers.
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STEP 3
The third, and final, step to this process is making sure you partner with a quality software provider who can educate and support you on a continuing basis. If you have waited for the software and technology to mature before making it a relevant element of your business, now is the time to act. Try to ally your company with a vendor who will be a partner in your board room and not just a vendor waiting to sell you in the hallway.
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Most software can perform the basic functions while others are more evolved and robust. Being able to use more than 10 percent of the product is the key to meeting with immediate success, but moreover, it’s the key to the long term success your software should be delivering to your business on many levels. Some vital questions you should be asking yourself and your vendor are: 1. C an your software help you drive revenue and foot traffic through your doors? Understanding the depths and capabilities of the software can easily determine if this will happen and can be quickly validated with a product demo. Many software programs can do a pawn or a buy, but to attain a quick return on your investment, your software should have some marketing capabilities integrated into it. Make sure it’s a revenue generator for your business. 2. I s your software vendor a stable and successful business? Make sure the company you invest in will be around for more than a few years. Many companies come and go leaving the pawnbroker holding the bag with outdated or unsupported software. Most rarely update their software versions and don’t include new features they should be placing into the software based on feedback from pawnbrokers. 3. I s the software stable and reliable? Simple…does it work as advertised? If you encounter issues, you should be able to get support in a quick manner ensuring a business continuum. 4. Is the vendor highly referable? Ask your fellow pawnbrokers about their experiences with the vendor. Does the vendor have a lot of customers using their software in the state or city you operate in? How have they graded the vendor? Learn about their experience using the software and working with the vendor. Ask the user about their process of buying software.
5. Can you grow with the software and does the vendor consistently improve, update, and seek improvements from their clients ensuring a consistent fit to meet your needs? Pawnbrokers and the industry are ever changing. Will the software and the software company be able to grow as well? Where and how do they develop their software? How many new releases are there in year? Does the vendor have customer user groups in place? 6. Does your vendor support your software in a timely manner? You should be able to resolve any software related issues or get training in a timely manner so your business is not impacted. Technical support on several levels is extremely important. 7. Does the software have in-depth and robust reporting and ongoing training capabilities? Simply put, you can’t manage what you can’t measure. Solid reporting capabilities will allow the pawnbroker to have reliable information at their fingertips which will allow them to make better decisions. Learning software does not happen in a small block of time. Ongoing training capabilities provided by the vendor are a must. 8. Can the vendor keep you in compliance? Laws are always changing and the industry will continue to be under a microscope.
(Continued on page 60)
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MEMBERSHIP
NPA Mentor Program HELPING NEW PAWNBROKERS SUCCEED
THE WORD “MENTOR” originated with the
ancient Greeks in Homer’s The Odyssey when Odysseus, the king of Ithaca, went off to fight in the Trojan War. He left his home and family to be cared for by Mentor, who served as teacher and caretaker to his son, Telemachus. The word later came to mean trusted advisor, friend, and wise person. The NPA Mentor Program, established in 2012, was created to foster a learning environment between seasoned pawnbrokers and pawnbrokers who are new to the industry. The program helps these newcomers learn about the pawn profession, encourages active involvement in the NPA, and provides a platform for growth. “ We had a great time getting to know our mentor and asking questions when we were in a pinch. He and his staff were awesome about sharing information and even invited us down to see how their operation works.” –Beth Anundi, Capital Pawn
Because mentoring is a joint effort, both parties are required to share responsibility for learning and sustaining the relationship. They must be able to attend pawn industry conferences and commit to
regularly-scheduled meetings via phone, email, or in person. And, of course, both must be members of NPA. “ While the primary purpose of the program is to share the learning of a long-term pawn industry member with a newer and less experienced member, the simple fact of explaining your position and reasoning to another pawnbroker offers a mentor the opportunity to re-examine one's fundamental premises and perceptions; in other words, when a mentee asks a question about how or why you do things as you do, you cannot simply reply that you have always done it that way. You must examine the reasons and justify your position, even though there may be, and probably are, any number of ways in which the same question can be answered.” –Steve Rogers, Wellston Pawn
To learn more about how you can participate as a mentor or a mentee in the NPA Mentor Program, visit the Members Only area of the NPA website (NationalPawnbrokers.org) and click on Member Resources. Enroll in the program and watch your world expand!
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MEMBER BENEFITS
Valuing Membership WHY BELONGING TO NPA IS GOOD FOR THE INDUSTRY
ACCORDING TO the American Society of Association Executives (ASAE), there were 90,908 trade and professional associations in 2009; the number keeps growing every year. Why are so many individuals members of their industry’s professional organization? BECAUSE THERE IS STRENGTH IN NUMBERS.
Think about what you can do as an individual pawnbroker compared with the powerful clout of a unified group. When you join your peers in the National Pawnbrokers Association, the group, on the whole, has a greater number of educational opportunities, a bigger bank account, and more importantly, a louder voice on Capitol Hill. With advance notice of industry news and other developments, you have a competitive edge over non-member pawnbrokers. AN INDUSTRY VOICE
Associations are known as the mouthpiece for their industry. Membership allows your voice to be heard. TRUSTED SOURCE OF INFORMATION
Associations are trustworthy and offer a wide range of information and services through a variety of communication sources.
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NETWORKING FACILITATOR
Associations provide a number of ways to connect with your peers through industry events and online forums. SAVE MONEY
Associations can help save you money with discounts on industryrelated products and services.
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Your NPA membership provides all of these benefits – and more! • Legislative alerts and notifications on developing issues • A Certified Pawn Professional designation after completing the required classwork • Participation in the NPA Member Forum for lively discussions on all aspects of running a pawn business • Discount on your AML manual and Red Flags policy • Free human resource consultations through SESCO • Discount to attend Pawn Expo, the annual convention and trade show • Pawn industry communications through the NPA NewsBrief, NPA Insider, and National Pawnbroker magazine • Online access to information on industry topics at NationalPawnbrokers.org PART OF NPA MEMBERSHIP USED THE MOST “ The Google group. It is priceless. I find myself sharing as well as learning from other pawnbroker’s experiences. I have gone back and read every post and had many “Aha” moments after reading how our fellow pawnbrokers have approached difficult situations.” — Jamie Smith, Allied Pawn and Jewelry, 3-Year Member
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MEMBER BENEFITS
HOW NPA MEMBERSHIP HELPED IN YOUR BUSINESS “ I read that approximately 85 percent of all business failures occur in firms that are not members of their trade association. I’ve only been an NPA member for one year, but I’ve learned many things to keep me in business including business ethics, compliance issues, and best practices.” – Andrew Ross, Rogers County Pawn, 1-Year Member
BEST THING ABOUT BEING AN NPA MEMBER “ It’s the best investment I have made so far in my business.” – Greg Twarowski, America’s Super Pawn, 9-Year Member
Your NPA membership has a lot of value for you and for the industry. Help make the pawn industry stronger by renewing for another year! NationalPawnbrokers.org/Renew
“ NPA memberhip and access to the Member Forum? Priceless!” —Barry Ehrlich, City Pawn, 17-Year Member
MEMBER BENEFITS
Did You Know? NPA MEMBER BENEFITS YOU MAY BE MISSING OUT ON
…YOU CAN CALL the SESCO Management Consultants hotline for your human resource and employee questions at no charge? …you can request an analysis of your personnel policies, work rules, and employee handbook, each year at no charge, also from SESCO Management Consultants? “ I wanted to tell you how happy I am with Sesco. They are a fabulous member benefit. I had an issue with hiring a new employee regarding medical marijuana. I found out that, even though it is legal in California, there is a federal law that prohibits me from knowingly
hiring someone who is taking marijuana. My workers comp carrier would have canceled me if I had hired her! Thank goodness for this wonderful resource. It saved me a lot of problems.” –Diane Taylor, Trader’s Loan & Jewelry
Solve employee problems regarding discipline, termination, workers’ comp, and unemployment with one of the nation’s leading experts! To get answers to these and other questions, call (423) 764-4127 and identify yourself as a member of NPA. Be protected with SESCO.
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BUSINESS SENSE
Preparing For the Sale of Your Business NAILING DOWN THE RIGHT SELLING PRICE By Steve Stallcup
IN MY LAST TWO ARTICLES, “Mergers and
Acquisitions: How to Get the Best Deal” and “How to Prepare for the Sale of Your Pawn Business Before Calling a Buyer,” we took a look at the six steps an independent pawn business owner needs to take in order to get the most out of the sale of their business. We also looked at what it takes to build a pro forma. Let’s dig even deeper and take a look at the specific items in your pro forma—the comprehensive financial analyses you present to potential buyers—and how pawn store owners can translate those items into a proper, accurate valuation.
Steve Stallcup CEO and Founder, Stallcup Group
Steve Stallcup has been the CEO and founder of Stallcup Group, a nationally recognized exit strategy consulting firm, headquartered in Keller, TX, since 2009. His company focuses on pawn business merger and acquisition activity. Since founding the company, Stallcup Group has transacted over $170 million of merger and acquisition business solely in the pawn industry. To learn more about the Stallcup Group and get a free Acquisition Checklist, visit www.stallcupgroup. com/checklist.html or call (817) 479-3880.
Some people will tell you that valuation is everything. And in a way, it is. If your valuation is off, that is, if it isn’t adequately supported by your pro forma, it is likely that the potential buyer will either walk away or counter with a too-low offer that doesn’t reflect what your business is actually worth. In other words, an inaccurate valuation can easily squelch a deal or cause you to lose out on a lot of money. ACCEPTABLE ROIC
Remember, your pro forma should be based on your business’s revenue and expenses and show that you understand the buyer’s operating model. Why? In addition to knowing the particulars of your current business, buyers want to know what they’re going to get out of the purchase of your pawn business once they take over. When your (Continued on page 34)
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BUSINESS SENSE (From page 32)
Preparing for the Sale
pro forma accurately projects their potential net income for future years using solid financial data, it becomes a powerful selling tool. Presenting potential buyers with an acceptable return on invested capital (ROIC) that is reflected in the sale price will always stack the deck in your favor. Let’s assume that your pro forma includes your projected revenue and adjusted operating expenses based on trends and expected business model changes. Let’s also assume that your pro
understand their company and the pawn industry at a high level, they are less able to drive the sale price down to a point that doesn’t reflect your business’s true value. If your pro forma is accurate and realistic, your sale price should include projections for an acceptable percentage of the potential buyer’s ROIC for up to three to four years. For example, it might reflect a 15 to 25 percent annual ROIC by years three and four following the sale of your
In addition to knowing the particulars of your current business, buyers want to know what they’re going to get out of the purchase of your pawn business once they take over. forma includes known traits of various buyers’ stores in the market; that is, their yield on loans, gross profit margin, and expense ratio to net revenue, etc. What else do you need in order to come up with an accurate selling price? CAPITAL EXPENDITURES
If you’re serious about getting the most out of the sale of your pawn business, your pro forma should also take into consideration any estimated capital expenditures the buyer will bear. These might include new signage, computer systems, graphics, packaging, and possibly, new store fixtures. Unfortunately, these things will put downward pressure on the ROIC, and potentially, the price. You might be asking why you should include capital expenditures in your pro forma if they’re going to drive down your sale price. The simple answer is that if you can come up with an acceptable estimate for these expenditures, the buyer will be less able to surprise you with numbers for expenditures (that might be significantly inflated) that you haven’t already explored. When a buyer realizes that you
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business. (This is an acceptable percentage of ROIC for three to four years post-sale.) INTANGIBLES
To come up with a proper valuation, you will also need to include the intangibles. Five of the big intangibles that sellers often neglect to include in a pro forma are: 1. Size of the building(s) Take into consideration the growth the buyer expects to achieve, anticipated storage room and retail space needs, and how parking might accommodate an increase in customers. 2. Proximity to other stores, commonly referred to as “overlap” Ask yourself: Is my store within one or two miles of one of the buyer’s other stores? If so, is my store in any way superior in size, parking, or location? Acknowledge potential problems and play up potential benefits which might include the possibility of combining locations that are close to each other. 3. Quality staff tenure Quality staff members and lower-than-
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YOUNG PROFESSIONALS
NPA Young Professionals BY KATHLEEN BARBEE, YOUNG PROFESSIONALS COMMITTEE CHAIR
Brian Moulton shares the Young Professionals’ goals with luncheon attendees.
THE NPA YOUNG PROFESSIONALS have hit
the ground running. Since the group’s beginning in 2014, the goal has been to bring together young professionals in the industry and to expand resources. Expectations for the Pawn Expo luncheon were surpassed when there were more attendees than seats. The Young Professionals Committee for 2015 has been appointed and goals have been set for the upcoming year. The committee is giving
input on educational sessions at Pawn Expo, specifically those for young professionals. The group is also researching other educational outlets which are to be announced in future National Pawnbroker articles. The happy hour social gathering at Pawn Expo was a great success and allowed time to build beneficial relationships. Young professionals are encouraged to watch for more scheduled gatherings at state and regional events. Special thanks go to the 2015-2016 YP Committee Members for their commitment to the NPA. They include: • Brian Moulton, Co-Chair, National Jewelry & Loan • Lauren Kaminsky Goldman, Co-Chair, EZ Pawn Corp • Kara Blakeman, Classic Jewelry & Loan • Josh Davis, GC Pawn • Scott Sweeney, Marshall & Sterling A new Young Professionals Pawnbroker Member Forum has been established to give YPs a way to connect. Contact Marliss@NationalPawnbrokers.org for more information on joining.
BUSINESS SENSE (From page 34)
Preparing for the Sale
normal turnover can give you leverage. Consider what your staff might be worth to a potential buyer. 4. Barriers to entry Whether a barrier to entry is a municipal license, zoning restriction, or state statute, it can be a definite advantage to your sale price and desirability. If you have a haymaker of a store and restrictions prevent competitors coming to your area, you have a value-add item. Note any barriers to entry that may work in your favor as a seller.
5. T ime versus years in business A two-year-old store that has grown to over $200,000 in loan balance is potentially more appealing to a buyer than a 50-year-old store with the same loan balance. Brand value is a funny thing, and is usually evidenced by financials rather than by years on the block. Once you have a solid valuation, what’s next? When should you contact qualified buyers? How should you handle negotiations? We’ll tackle those questions and more in the next article.
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BUSINESS SENSE
Tips on Buying Resale Gold Jewelry WHEN A KARAT IS NOT A KARAT By Kim Michalik
IDENTIFYING “FAKE” or under-karated gold pieces has always been a challenge; somewhat like determining the true color of the infamous blue/ black or gold/white dress depending on how you look at it. Even the best eyes can sometimes not detect a good fake. Heavy plating or stainless steel will often pass an initial gold test, and sellers are counting on the fact that many buyers will not have the time or the capability to test these pieces further. Gold items are valued on the amount of gold they contain. Measurement of the purity of gold is based on a scale of one to 24 (24 being the purest). The most superior and accurate technique for measuring gold content is fire assay. Fire assay is the benchmark to which all other techniques are measured. ICP Spectrometers and x-ray fluorescence are two other ways to assay; however, they are not nearly as accurate as fire assay. In the absence of the above-mentioned methods, acid test kits and electronic gold testers are often used. These methods are not reliable, but are sometimes used to give potential buyers a rough idea of gold content. If you do not have access to these items, here are some tips on how to make a preliminary assessment of whether or not a piece contains gold. Again, these methods are not the most recommended; however, they are better than nothing. MAGNIFY
Look for hallmark purity. In other words, check to see if there is a notation of karat inscribed
somewhere on the surface of the piece. Keep in mind pieces that are resized or reset may not have the same karats as they had in their original state. In addition, the stampings may be false as in this example.
The hallmark on this piece is crooked and only at one end of the chain. This piece was determined to be 62.7% copper.
THE MAGNET TEST
Use a fairly strong magnet. If the piece is attracted to the magnet at all, or if it actually sticks to the magnet, the piece is probably a fake.
The hallmark on this ring says 10 karat. If this was true 10 karat, the color would be much lighter.
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DISCOLORATION
If the piece is discolored, particularly around the edges, there is a strong chance the piece is not gold. WEIGH YOUR PIECE
This test is often called the density test. Weigh your piece on a scale and record the weight. Reset the scale to zero and fill a vial ¾ with water and put it on the scale. Place your piece in the water without splashing and take note of the new water level in millimeters. Calculate the difference in water levels before and after submerging the object. Divide the mass of the object by its volume to yield the density. Compare to the density of pure gold (19.3 g/cc) to determine whether or not the object is pure. For more tips, subscribe to Pease and Curren’s Buyer Beware newsletter or call your local Pease & Curren Refining consultant: (800) 343-0906. For any questions, suggestions, feedback or comments, please email us at info@peaseandcurren.com. See more at peaseandcurren.com.
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Kim Michalik has been president of Pease & Curren since 2008. The company is located in Warwick, R.I. For more information, visit peaseandcurren.com.
About Pease & Curren With 100 years in the precious metals refining business, the Pease & Curren way is disciplined, honest, consistent, and reputable. We provide the most accurate precious metals refining available on the market today, which results in consistently higher yields and maximum returns. Pease & Curren serves the dental, manufacturing, pawn/ buyers, recycling and retail jewelry markets. P&C has superior programs including: Stone Removal, Appraisal Services, and a Fire Assay process that is 20 times more accurate than x-ray. Our facility is one of the most secure refineries in North America, and coupled with our five star customer service, we continue to serve our customers with top quality refining.
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BUSINESS SENSE
The 4 C’s A PAWNBROKER’S GUIDE TO PURCHASING DIAMONDS
DIAMOND MAY BE made up of a single element – carbon – but there are many subtle nuances that greatly impact its value. For instance, a very high quality diamond (in terms of color and clarity) can cost four times as much as a diamond of the same weight with lower color and clarity. When a client enters your store with a diamond, there are a few things you can do to determine its overall quality and value more accurately. First, become familiar with the GIAcreated 4Cs (color, clarity, cut, and carat weight) which are crucial elements in speaking the language of diamonds. Every diamond can be described using these well-known terms. Second, acquire four or five GIAgraded stones with a range of color grades to use as reference stones. You may be able to consider these tools, as opposed to inventory. Third, make sure to remove any major diamond from its setting before evaluating quality. Settings can obstruct major inclusions and significantly alter the perceived color grade. Last, have your staff practice on diamonds that come with GIA reports that your store purchases. This way, they can get a better idea of the GIA grading system. HERE IS A BRIEF INTRODUCTION TO THE 4CS:
Carat: Diamonds are weighed in metric carats. Two carats weigh about the same
C A R AT W E I G H T
0.50 ct.
3.0 ct.
5.0 ct.
GIA D-Z Color Examples GIA D-to-Z Color Examples
D
H
N
Z
as a small paper clip. While most scales are regulated by the state, it’s a good idea for pawnbrokers to test reference stones (with existing GIA grading reports that list the carat weight) to ensure the scale is precise. Clarity: Created by nature under tremendous heat and pressure, nearly all diamonds contain unique internal characteristics called “inclusions” and external characteristics called “blemishes.” Many clarity characteristics are too tiny to be seen without a 10x loupe. Pawnbrokers should familiarize themselves with GIA’s clarity grading terms.
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• Flawless (FL) - No inclusions or blemishes are visible to a skilled grader using 10× magnification • Internally Flawless (IF) - No inclusions and only blemishes are visible to a skilled grader using 10× magnification • Very, Very Slightly Included (VVS1 and VVS2) - Inclusions are difficult for a skilled grader to see under 10× magnification • Very Slightly Included (VS1 and VS2) Inclusions are minor and range from difficult to somewhat easy for a skilled grader to see under 10x magnification • Slightly Included (SI1 and SI2) - Inclusions are noticeable to a skilled grader under 10x magnification • Included (I1, I2, and I3) - Inclusions are obvious under 10× magnification and may affect transparency and brilliance
A number of factors influence a diamond’s cut grade, including its overall face-up appearance, design, and craftsmanship.
Color: Truly colorless diamonds are very rare. GIA uses letters to represent colors, beginning with D (colorless) and ending at Z (light yellow or brown). Daylight lamps, such as Ott lights, which should be replaced every four to five years, are a great option for creating a consistent environment to look at diamond color. It’s also important to test employees
for color acuity every few years and to make sure they’re not unknowingly color blind. Since color differences in diamonds are so subtle, the viewer should have excellent color perception. Cut: While diamonds can be fashioned into different shapes, the term “cut” refers to a diamond’s complex relationship with light. A number of factors influence a diamond’s cut grade, including its overall face-up appearance, design, and craftsmanship. This is the one factor that should not be compromised. A well-cut stone can bring out the fire and brilliance even in a diamond with lower color or clarity. An excellently-cut stone will cost 10-20 percent more than an “average” or poorly-cut one, but the additional life and beauty in the diamond is usually worth the premium. For more information on diamond quality, visit www.gia.edu.
MEMBER BENEFITS
Did You Know? …YOU GET A 10% discount on tuition for new enrollment at any Distance Education eLearning courses or lab classes at GIA? GIA is the leading source of knowledge, standards, and education in gems and jewelry. They offer professional education to prepare you for success. As you work to attain your Graduate Gemologist or other certifications, take advantage of these savings as a member of NPA. “I took the Diamond Grading lab in Chicago in 2007 and I use the knowledge every day. The skills I learned from the GIA class are ingrained
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and a part of me. Literally, the best investment I made for myself and my business was taking the Diamond Grading class.” —Kathy Pierce, Monster Pawn, Bloomington, IL
Check out all the available courses at GIA.edu. Be sure to let them know you are a member of NPA when you enroll so you can take advantage of the discount. These business solutions are all part of your NPA membership package. Save time and money by taking advantage of these savings from your NPA Industry Partner members.
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Serving the pawn industry since 1983
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BUSINESS SENSE
Game Winning Deals HOW TO DETERMINE THE AUTHENTICITY OF SPORTS MEMORABILIA By Rudy Klancnik
NINETY PERCENT OF sports
memorabilia that comes into your store is fake. Yes, you read that correctly. Out of 10 people who walk into your store with a Mickey Mantle signed baseball, Roger Craig’s Super Bowl ring, or Julius Erving’s game-used jersey from his ABA days, only one of them is telling you the truth. That seems like a ridiculously large number of frauds, but that’s exactly the findings of an FBI probe into the industry conducted more than 10 years ago. Unfortunately, not much has changed. Here’s a quote from the FBI that should stop a pawnbroker examining a piece of sports memorabilia in their tracks: “Sources in the investigation have relayed that the current market in vintage memorabilia is almost entirely comprised of forgeries.” Quick-buck artists are all too happy to toss a fake Brett Favre signature onto a Packers helmet and bring it into your store with a story of how they got the headwear signed just last month when Favre did a signing in Atlantic City. They might even have a letter of authentication from what is touted as a trustworthy source. Again, that letter could be as bogus as the item it’s vouching for. “At least half – as much as 90 percent – of the sports memorabilia business is counterfeit,” says Phillip Halpern, an assistant U.S. attorney in San Diego. “People shouldn’t question whether the item they purchase is fake, but whether they can
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actually go out and purchase a real one.” Halpern says the five more frequently faked sports legends are Babe Ruth, Lou Gehrig, Ty Cobb, Christy Mathewson, and Princess Diana. Yes, we know Princess Di isn’t a sports legend, but it’s interesting how often her autograph is forged. So what do you do when someone does walk into your store carrying a piece of sports history that really has you interested? There are authentication companies that review thousands of items each year. That’s both good and bad news. Companies such as Professional Sports Authentication (PSA) and James Spence Authentication (JSA) make a tidy living evaluating all shapes and sizes of sports collectables and telling the owner whether it’s real or not. Of course, like most things in the sports memorabilia world, looks
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can be deceiving here as well. Both companies crank out so many letters of authenticity that they sometimes swing and miss. This story about another well-known sports memorabilia company – Steiner Sports – will give you another reason to pause. Steiner Sports received what it believed were authentic game-used items from one of its paid endorsers, New York Giants quarterback Eli Manning. The problem was that much of it was not game worn. Some folks noticed that the patches on the Steiner jerseys weren’t the same as the patches on the actual gameworn items. How did Steiner originally verify the gear that Manning gave them? They asked him and his people if the material was authentic. Not exactly a thorough background check. So what have we learned thus far? Clearly, be suspicious of the items and the companies who authenticate them. That’s just par for the course. But let’s take a different approach for a minute. Let’s assume that when someone brings in a signed George Brett bat that’s covered in pine tar, it’s actually the real deal. How then should you go about asking an expert – or a group of them - to help you determine the right price? The key is to examine more than one source. First, go to the web and check out prices on sports collectible websites such as eBay and Beckett. com. This will give you a baseline price for similar items. Look at auction houses such as Heritage Sports Auctions as well. Heritage does a solid job authenticating items before bringing them to auction, and the prices paid there are another way for you to better understand what you have. There are also specialists in practically every piece of sports memorabilia on the planet. From game-worn hockey sweaters to World Series rings to signed rookie cards, there’s someone out there who knows the scoop. Seek them out for a second and third opinion. Little Rock, AR, pawn shop owner,
Douglas Braswell, has been in the business for more than 20 years and has had two Super Bowl rings come into his store. Both were brought in by former NFL players, so his level of trust that they were the genuine article was pretty high. But like any good shop owner, he’s learned to ask good questions to people off the street who bring in sports memorabilia. “There’s no secret formula to figuring out whether someone is trying to take advantage of you, but you can do a good job by asking them questions about how they got the piece in the first place,” Doug says. “If someone hands me a signed baseball bat and says they picked it up at a garage sale in the area, I’m thinking that I really don’t need that bat.” HERE ARE A COUPLE OF QUICK GUT-CHECK QUESTIONS TO ASK YOURSELF:
• Is the item priced too low to actually be real? If it’s too good of a deal it’s probably because it’s a fake and the owner is trying to fool you with a ridiculously low price. This is why it’s imperative that you look up how much an authentic item is selling for. • Does the story the owner tells you about how they secured the items seem like a fairy tale? Granted, there are plenty of crazy stories out there on how Super Bowl rings made their way from the hand of a Super Bowl champ into a store’s jewelry case. For instance, Oakland Raiders legendary cornerback Lester Hayes sold one of his two Super Bowl rings because he had to pay for emergency dental work and his money was tied up in a gambling debt that had gotten out of control. Pittsburgh Steelers great Rocky Bleier sold all four of his Super Bowl rings to help pay back taxes. Sports memorabilia in your shop is probably one of those items most of your customers will stop and look at. It’s great to showcase and, if it’s authentic, it can drive some serious revenue. It’s the “if” that makes all the difference in the world.
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BUSINESS SENSE
If You Write It, They Will Come CREATING WEBSITE CONTENT THAT ATTRACTS CUSTOMERS
MICRO-MOMENTS
IF YOU’RE FINDING IT DIFFICULT to keep
up with the ever-changing landscape of online marketing, you’re in good company. Every day, thousands of website marketing strategies are deployed, the majority of which have little or no impact. They often go unnoticed, and result in a loss of money which could have been put to better marketing use elsewhere. If this resonates with you, you may be surprised to learn there is one rule within the vast realm of online website marketing that has remained constant: content is king. Unique content that provides solutions to specific problems is the key to online success. Update it regularly for the best search engine results. This holds true whether your goal is to provide information, attract visitors, or convert website visits into sales. WHY PEOPLE SEARCH ONLINE
What kind of content should you publish? Where should you look for subject matter or source material? A recent study published by Google in August 2015 provides insights into the core motivations that drive potential customers when they search for online information. The study’s results led researchers to identify four specific “micro-moments” which trigger potential customers to search for something online. These four micro-moments are good indicators of the types of articles and content you should be publishing on your website.
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I Want to KNOW Something Customers go online for answers to their specific questions.
I Want to DO Something Customers are looking for ideas to complete a specific task or searching for something to do.
I Want to BUY Something Customers go online to make decisions and price comparisons about buying a product.
I Want to GO Somewhere Customers need to find a specific business or location.
WHAT MAKES GREAT CONTENT?
Great website content that targets these “micromoments” isn’t created by accident. Articles, videos, memes, or photos that are immensely popular and “go viral” were specifically designed for that purpose. While experienced online marketers employ many different methods to create content, here are seven tried and true ingredients of great content: 1. Original Content. Keep your ideas authentic. You’re an expert in your field, so the information should come from you. 2. Strong Headlines. 80 percent of people will read your headlines, but only 20 percent of those people will read the rest of your content. Make your headlines evocative. 3. Actionable Content. Every webpage, social media post, or video should have a specific call
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BUSINESS SENSE
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to action. “Contact”, “buy”, “learn more”, and “share” are all good calls to action. 4. Provide Answers. As observed in the “micromoments” study, users turn to search engines for answers. If your website provides an answer, it is more likely to show up in search results. 5. Add Images and Video. Add images that help provide explanation or add value. A picture paints a thousand words, so make sure yours are great. PRO TIP: Faces attract attention. 6. Write Short and Focused Content. 350 words is a good length for an article, and it’s all that a search engine really needs to start listing your content in results. 7. Update Your Website or Blog Regularly. Post articles and content on your website at least twice a week. Search engines like frequently-updated websites. TYPES OF WEBSITE ARTICLES
Here are five types of website articles that never fail to attract readers, elicit sharing, and promote engagement. Encyclopedic Guides People just don’t have time to search feverishly on the web for all the information on a single topic. Here’s your chance to amass your expertise and present it in an organized and approachable way. They are more likely to mention or share your article as an authoritative resource, which helps strengthen your brand and business.
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(Continued on page 54)
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BUSINESS SENSE
Emergency Planning: Part 2 PROTECTING YOUR BUSINESS DURING A CIVIL DISTURBANCE By Tony Gallo
IN PART ONE OF THIS SERIES, we reviewed the importance of developing an emergency action plan for a natural disaster. In part two, we will review emergency planning for a civil disturbance. In today's business environment, civil disturbances or civil unrest are a fact of life. According to the Federal Emergency Management Agency (FEMA), civil disturbance is “a civil unrest activity such as a demonstration, riot, or strike that disrupts a community and requires intervention to maintain public safety.” Civil disturbances, or unrest, can cause a variety of subsequent issues such as violence and assault, disorderly conduct, or vandalism. Civil disturbances are potential risks for most businesses but even more of a risk for high value businesses because they are usually the first to be targeted by looters. ASK YOURSELF THE FOLLOWING QUESTIONS:
• What would you do if your store was closed for several days because it was damaged or even totally destroyed?
Tony Gallo Senior Director Sapphire Protection
Tony Gallo is the Senior Director of Sapphire Protection (Sapphireprotection.com) with over 30 years of experience in the loss prevention, audit, safety, and risk/emergency management fields. Contact Tony at tonyrgallo@gmail.com for any questions and follow him on Twitter at @SapphireProtect.
• What if your loan, payroll, tax, accounting, or operating records were destroyed? • Is your insurance adequate to get you back in operation? Do you understand what is covered and what is not? • How long can you survive if your business is shut down? The purpose of any emergency plan is to organize actions during a crisis. A well-developed workplace emergency plan and proper employee training may result in fewer employee and customer injuries and less structural damage to the business. Your plan should be constructed with every employee and customer’s safety in mind as your first objective, and how to reduce losses to your business as your secondary objective. It is the responsibility of the owner and the management team to evaluate an emergency situation, ensure that appropriate action is taken, determine whether outside support is needed, and summon that support, if necessary. Demonstrations and protests are often unpredictable and can turn violent without warning. Following are examples of locations that may introduce an increased level of exposure to civil disturbance:
(Continued on page 50)
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COMMUNITY INVOLVEMENT
A Year of Giving Back HOW YOU CAN SUPPORT YOUR COMMUNITY
SUPPORTING THE LOCAL COMMUNITY is what every successful business should do. Donating money is certainly helpful, but becoming a more active participant allows you and your employees to get the full benefit of making the world a better place to live in. You’ll build new relationships and create goodwill all at the same time. Below is a list of ways your business can support the community. Pick one for each month of the year! CLEAN UP NEIGHBORHOOD TRASH
Select an area in your city or town that needs to be de-littered and supply your team with trash bags and a dumpster. Get to know the neighborhood residents and beautify the environment all in one afternoon.
construction. Visit Habitat.org to find the nearest location. PARTNER WITH YOUR LOCAL LIBRARY TO COLLECT BOOKS FOR KIDS
Every child needs a book of their very own. Collect new or gently used books and take them to your local library. Ask them to donate one to each child who comes in to read on a specific day, such as National Read a Book Day (September 6). COLLECT OLD CELL PHONES AND DONATE THEM TO THE MILITARY
Provide cost-free communication to active-duty soldiers and veterans by donating gently-used cell phones. Contact Cell Phones for Soldiers to learn how you can donate.
SPONSOR A YOUTH SPORTS TEAM
GIVE SAMPLE-SIZED HYGIENE PRODUCTS TO LOCAL SHELTERS OR MISSIONS
From baseball to basketball to soccer, most cities have youth leagues that need help with uniforms, equipment, and travel. Sponsor a team and then attend the games to show you truly support them.
Shelters and missions always need personal hygiene supplies for their residents. Collect and donate items such as soap, shampoo, toothbrushes, toothpaste, and deodorant.
DROP OFF LUNCH AT A FIRE STATION OR POLICE PRECINCT
All firefighters and policemen have to eat, so make their job a little easier by stopping by with a hot meal such as chicken or pizza. Be sure to call ahead to let them know you’ll be coming and to get a head count. DONATE APPLIANCES OR ELECTRONICS TO A HABITAT FOR HUMANITY HOME
If you have leftover appliances or electronics that are difficult to sell, consider donating them to a local Habitat for Humanity home under
DONATE PET FOOD TO LOCAL FOOD BANKS
Don’t let your four-legged friends go hungry. Hold a drive to collect pet food and then donate it to the local food bank. PROVIDE WINTER COATS TO CHILDREN IN NEED
Partner with a local business, such as a dry cleaner, beauty salon, or grocery store, to collect new or gently-used coats. Donate them to an elementary school, daycare, or Child Protective Services. COLLECT SCHOOL SUPPLIES FOR BACKPACKS
In July, set up a drop-off station in your store for
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COMMUNITY INVOLVEMENT paper, pencils, erasers, crayons, and other school supplies. Solicit free backpacks from your local Target, Walmart, Staples, or other school supply store. Distribute the assembled packs before the first day of school. SPEAK AT A SCHOOL CAREER FAIR
Many public and private high schools have career fairs in the fall and spring. Most are looking for companies to speak about various career paths. Share your experiences with the students. You may end up with a new employee. ASSEMBLE TOYS FOR THE HOLIDAYS
Organizations often give away bicycles and other toys that need to be assembled during the holiday season. Call your local Toys for Tots organization to see when you can volunteer a few hours to put together someone’s best gift ever.
MAKE SOME MUSIC
Don’t forget NPA’s Musical Instrument Gift Day held every year on December 6. Join other pawn stores across the country with a generous donation of musical instruments to an organization in need. Visit GiftDay.org to learn more. To get even more benefit from your community involvement, give employees a few hours off each month or quarter to volunteer their time. You can also offer to match any monetary donations they make. Be sure to take photos and share the information on your website or in your company newsletter. No matter what you decide to do, you’ll benefit as much from your actions as those who are on the receiving end.
BUSINESS SENSE (From page 47
Emergency Planning
• Urban or downtown areas • Proximity to sporting complexes • Proximity to venues/parade routes • Proximity to a business that may be a target of a protest gathering • Proximity to government buildings, foreign embassies, and consulates
Demonstrations and protests are often unpredictable and can turn violent without warning.
IF A CIVIL DISTURBANCE OCCURS
Management should maintain an open line of communication to local law enforcement so that they may be called in as quickly as possible. An employee of the store should be stationed at the front customer door in order to observe the situation outside and report any changes to the manager. If the situation is deemed threatening to employees and customers, the front door should be locked. If possible, roll down gates and/or close blinds to reduce the danger of looters and possible flying glass. Cash, jewelry, and other highdollar items should be secured in the safe. Law enforcement should be contacted and a request
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made to escort customers and employees to their vehicles safely off the premises. During episodes of civil unrest, many people fail to heed warnings to evacuate so they can protect their homes or businesses. Consider this decision carefully as it may put you in grave danger. It's important to remember that if looters strike, you will likely be outnumbered and your attackers may be armed. If you can evacuate, it's usually better to do so. Your property is not worth your life. Remember, the main purpose of any emergency plan is to protect the employees and customers in the event of a civil disturbance as well as to protect the company’s property and cash. Be safe and be profitable.
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BUSINESS SENSE
AML – Anti-Money Laundering ABA – American Bankers Association ABA – American Bar Association AFSA – American Financial Services Association BATFE – Bureau of Alcohol, Tobacco, Firearms and Explosives BSA – Bank Secrecy Act CFA – Consumer Federation of America CFPB – Consumer Financial Protection Bureau CFSA – Community Financial Services Association of America
SAR
NAAG
CFSI – Center for Financial Services Innovation
FinCEN – Financial Crimes Enforcement Network
CPP – Certified Pawn Professional
FINRA – Financial Industry Regulatory Authority
CSBS – Conference of State Bank Supervisors CRL – Center for Responsible Lending CTR – Currency Transaction Report DoD – Department of Defense DOJ – Department of Justice ECOA – Equal Credit Opportunity Act FBL – Future Business Leaders FCRA – Fair Credit Reporting Act FDIC – Federal Deposit Insurance Corporation FFL – Federal Firearms License
FiSCA – Financial Service Centers of America FOIA – Freedom of Information Act FRB – Federal Reserve Board FTC – Federal Trade Commission GIA – Gemological Institute of America GLBA – GrammLeach-Bliley Act
FiSCA
CFSI
ECOA
BATFE
FinCEN
UDAAP
OFAC
BSA ICBA
strives for efficiency in all aspects of life. One major efficient discovery has been that of acronyms: an abbreviation formed from the initial letters of other words and pronounced as a word. Every industry has a long list of acronyms that are used so that communication may be easier. Below are several that are frequently used by NPA.
BATFE
WELCOME to the 21st century, where the world
ABA
A GLOSSARY OF PAWN INDUSTRY ACRONYMS
NICS
Learning the Lingo
JCK – Jewelers Circular Keystone MLA – Military Lending Act MSB – Money Services Business NAAG – National Association of Attorney Generals NCIC – Numismatic Crime Information Center NICS – National Instant Criminal Background Check System NILA – Independent Community Bankers Association
GRC – Government Relations Committee
NPA – National Pawnbrokers Association
ICBA – Independent Community Bankers Association
NRA – National Rifle Association
JBT – Jewelers Board of Trade
NSSF – National Shooting Sports Foundation
GRC
DOD
OCC – Office of the Comptroller of the Currency OFAC – Office of Foreign Assets Control OLA – Online Lenders Alliance OSHA – Occupational Safety and Health Administration PAC – Political Action Committee SAR – Suspicious Activity Reports SCOTUS – Supreme Court of the United States SCRA – Servicemembers Civil Relief Act TILA – Truth in Lending Act UDAAP – Unfair, Deceptive, Abusive Acts & Practices
Source: CartoonStock.com
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COMPLIANCE
NICS News MESSAGE TO FEDERAL FIREARMS LICENSEES (FFL) REGARDING PRIVATE SALES
THE PURPOSE of this message is to assist FFLs
who facilitate the transfer of firearms between unlicensed individuals. On January 16, 2013, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) issued an open letter to all FFLs regarding the transfer of firearms between unlicensed individuals. Several states have state laws which prohibit the transfer of firearms between individuals unless a NICS background check is completed. To obtain a copy of the open letter or obtain more information regarding the transfer of firearms between unlicensed individuals, please enter the following into the address bar of your internet browser: www.atf.gov/file/56331/ download or visit the ATF website at www.atf.gov. With the possibility of increased transfers involving private sale transactions, the NICS Section would like to provide information regarding the use of the NICS during private sale transfer scenarios. The NICS Section made the option for the transfer of a private sale firearm available to all FFLs, not just FFLs having a state law requiring such. This capability was made available to all FFLs on September 16, 2015. The FFLs may not be required by state law to process private sale transfers; however, if you choose to engage in private sale transfers, please note it is the responsibility of the FFL to specify the transfer as being connected to a private sale. Below is important information for you to know when conducting a NICS background check for the transfer of a private sale. If you are conducting a NICS background check for the transfer of a private sale firearm via the NICS E-Check, please select private sale of a handgun, private sale of a long gun, private sale other, private sale return to seller handgun, private sale return to seller long gun, or private sale return to seller other in the field titled “Purpose ID (18).” If you are conducting a NICS background check for the transfer of a private sale firearm via the
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contracted call centers, when asked by the call center agent, please identify the “type of transaction” as a private sale. If you have any questions regarding the information provided, please contact the NICS Business Unit at NICSLiaison@ic.fbi.gov. NICS E-CHECK USAGE CONTINUES TO INCREASE
For the month of August 2015, the NICS E-Check usage was at 61.83 percent of all federal transactions which was the highest NICS E-Check volume month in the history of the NICS. Step-by-step instructions on how to register to use the NICS E-Check can be accessed at www. nicsezcheckfbi.gov. On the Welcome Page of this Web site, click on the link that states “Access the FBI NICS E-Check Help Pages.” Select the pdf version of the User’s Guide. Section 1 of the User’s Guide takes you step by step through the process. Questions regarding the registration process can be directed to the NICS E-Check Customer Service at (877) 3246427, option 2, then option 5. IMPORTANT NICS E-CHECK REMINDER— PROVIDE AS MUCH DESCRIPTIVE INFORMATION AS POSSIBLE DURING A FIREARM BACKGROUND CHECK
The NICS firearm background checks are name based and dependent upon the descriptive information provided on the ATF Form 4473. Even though some descriptive information is optional, to help prevent erroneous delays or denies, as much descriptive information as possible should be provided. Two fields that are often left blank are the Social Security Number field and the Middle Name field. Sometimes this information is vital in determining whether your customer is the subject of the record that a NICS Examiner is reviewing. In some instances, providing the additional information could result in a more efficient and accurate response.
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COMPLIANCE DEPLOYMENT OF NEW NICS
Over the past several months you have likely heard about the future deployment of New NICS, which is a two-phased project focused on improving the NICS by modernizing the technology platform used to support the NICS process. The planned deployment of phase 1 of the New NICS is January 12, 2016. The first phase will focus on critical infrastructure redesign and will result in some new benefits for the users of the system. Some of those benefits follow: • 24x7x365 system availability: Some NICS E-Check transaction capabilities will be available outside of the NICS standard operating hours. • Improved customer service through better name matching technology: Better name matching may result in fewer delays. • Shorter periods of downtime: New NICS will employ a Commercial-Off-The-Shelf product to improve the process of making system changes. This article was submitted by the R. Marc Chamberlain and JoAnn Garrison, FBI NICS Liaison Specialists. They can be reached via email at NICSLiaison@ic.fbi.gov.
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KELLER National Pawnbrokers Association
STATE PAWN FACTS
ARLINGTON Texas Association of Pawnbrokers AUSTIN State Capital
TEXAS NUMBER OF ACTIVE PAWN LICENSES
1,323
NUMBER OF LICENSED PAWNSHOP EMPLOYEES
MARK YOUR CALENDARS
AVERAGE LOAN AMOUNT IN 2013
$
126
6963
TO ATTEND
PAWN EXPO
2016
8,626,594
NUMBER OF PAWN LOANS MADE IN 2013
1888
JULY 12-14
THE MIRAGE | LAS VEGAS, NV
The year the Capitol opened in Austin. The dome of the building stands seven feet higher than that of the nation’s Capitol in Washington, D.C.
PAW N E X P O . C O M
SOURCE: TEXAS OFFICE OF CONSUMER CREDIT COMMISSIONER; 50STATES.COM
National Pawnbroker Mailing Date Change
BUSINESS SENSE (From page 45)
If You Write It
polls, surveys, and other studies. The public is hungry for statistics, and a quick search online will lead you to all the information you need to produce engaging infographics, press releases, and blog posts about your business or services. Problem/Solution Posts Website content offering simple and straight forward solutions to everyday problems wins out every time. Identify your target audience - typically your customers - and craft content that identifies problems and offers step-by-step, manageable solutions. There are many ways to go about producing the right content that will engage your audience and help you meet any marketing goal. Above all, it’s most important that you think like your customer. Help them find you!
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BEGINNING IN 2016, National Pawnbroker will be mailed out one month later. In addition, the name of the issue (Spring, Summer, Fall, Winter) will correspond with the upcoming season. Because of this change, there will not be a Winter issue mailed in February 2016. Instead, the first issue published in 2016 will be the Spring issue which will mail in early March. For any questions, please contact Margie@NationalPawnbrokers.org. NEW SCHEDULE ISSUE NAME
DATE MAILED
SPRING
MARCH 1
SUMMER
JUNE 1
FALL
SEPTEMBER 1
WINTER
DECEMBER 1
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Zach T. of North Carolina rented an ACE 250 and found his own $1,200 college ring in the ocean just hours after losing it.
MADE IN USA
Visit garrett.com to find your nearest dealer
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9/21/2015 4:12:30 PM 10/21/15 9:56 PM
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(866) 950-7528 | www.hitechpmr.com NPA_Mag_Fall15.indb 56
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STATE NEWS
State Association Updates STATE PAWN NEWS ACROSS THE NATION
ILLINOIS
Kelly J Swisher, President
Illinois Pawnbrokers Association arlingtonloan@gmail.com
On September 20, 2015, the Illinois Pawnbrokers Association (IPA) held one of its two annual meetings. In addition to discussing current and future issues facing the industry in our state and country, we elected our Board of Directors. The results are: • President - Kelly J. Swisher • Vice President - Joe Baratz • Secretary - David Schoeneman • Treasurer - Carmencita Schoeneman • Board Members: Felicia Bell, Jay Cupp, Chris Drewel, Scotty Kagan, John Lewis, Bruce Lowis Congratulations to the board and thank you to everyone who attended and participated in the voting. In addition to the regular meeting agenda, Larry Oxenham, from American Society for Asset Protection, gave a very informative seminar on how to structure and protect your company from law suits, tax liability, and succession planning. We will continue to bring in speakers who can educate us on our industry as well as being smart business owners and operators. Please contact me with any suggestions for speakers. A federal ruling by the Department of Defense will affect each and every pawn store in the country.
This ruling will drastically reduce the amount of service fees you may charge active military members, spouses, and immediate family and will take effect October 2016. For some shops, it will forever change the way they operate, and quite frankly, could put some out of business. This is yet another example of why it is imperative that you participate in your association. You cannot think that this, and other changes that are coming, will not affect you. Just because you did not hear about them does not make you exempt. This ruling comes with very serious penalties for non-compliance. If you have not attended a meeting in a while, or have never attended one, I would like to invite you to do so. If your shop is important enough to take your time, then it should be equally important for you to be aware of changes that will affect your business.
INDIANA
Greg Engstrom, President
Indiana Pawnbrokers Association gregengstrom@hotmail.com
The Indiana Pawnbrokers Association is working on legislation that would allow pawnbrokers to pawn hand guns. Currently, it is illegal to loan money on handguns, and ironically, this is not in the pawn statute but rather the criminal code. We have put feelers out to regulators and chiefs of police as well as politicians and things are coming together for this
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STATE NEWS
legislative season. However, it is a short session. The growth of pawn locations is slowing and the pace of locations closing has picked up a bit this year as the industry changes from gold buying to pawnbroking. The Midwest Pawnbroker just issued its second edition in full color. The magazine was started based on the Midwest Pawn Convention which, coincidentally, is holding its 25th annual convention May 13-15, 2016, in Louisville, KY. The city/county of Indianapolis instated a new ordinance requiring a photo of the person selling or pawning as well as a photo of their identification. There has been another revelation that they were already requiring things like complexion, type of clothing, hair style, mustache style, and beard style.
OHIO
Lou Tansky, President
Ohio Pawnbrokers Association lou@unclebenspawnshop.com
As you are aware, the Columbus Police Department, through the City of Columbus and Franklin County Prosecutor’s offices, issued a new policy effective Aug 15, 2015. The proposed policy states: 1. When stolen property is located in a pawnbroker’s possession, the law enforcement agency/officer who discovers the property should notify the pawnbroker that he or she is in possession of stolen property. The pawnbroker must either turn the property over to the investigating agency, or return it directly to the rightful owner. 2. If the pawnbroker cooperates and turns the property over as directed, the Franklin County or City of Columbus Prosecutor’s Office will seek restitution for the pawnbroker against the Defendant, in any ensuing criminal action. 3. If the pawnbroker refuses to cooperate after
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they have been advised that they are in possession of stolen property, the State’s response will be as follows: a. The investigating law enforcement agency/ officer will obtain a search warrant and seize the stolen property from the pawnbroker. b. The law enforcement agency/officer will seek indictment or misdemeanor charges through the Franklin County Prosecutor’s Office to prosecute the pawnbroker for receiving stolen property since they opted to retain property they knew had reasonable cause to believe was stolen. The Ohio Pawnbrokers Association (OPA) engaged a law firm to represent the interests of our members. We provided an extensive package to the parties involved consisting of several hundred pages of State Revised Code, case law, historical, and other information to bolster our contention that the policy was not only ill conceived, but unlawful. Due to the perseverance of the officers and Board members, we have received communication from Ron O’Brien, Franklin County Prosecutor, advising the OPA “that the existing letter is being withdrawn and that a new policy will be forwarded”. We are aware that Mr. O’Brien and others are “shopping” legislation in the State House that would remove the protections that pawn licensees currently have in our state. Therefore, we must again prepare for another fight. For now, please continue to operate as usual, complying with, and relying on, all aspects of the Ohio Pawnbroker Act ORC 4727. We will continue to keep you advised on the status of this issue as it unfolds.
SOUTH CAROLINA
Jay Friedman, President
South Carolina Pawnbrokers’ Association bonded@bellsouth.net
The South Carolina Pawnbrokers’ Association (SCPA) underwent a significant change in 2015. With the loss in January of longtime association president, Janis Feazelle, as secretary, I was selected with keeping the organization focused. Fortunately, with a strong executive committee, we were able to examine the association’s position/ direction and begin planning our next steps. Our first goal was, and remains, membership expansion.
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STATE NEWS
With 242 pawn certificate holders in the state, we want to make sure they know they have a voice. The executive committee organized a spring event for current, past, and potential members. At the meeting for current and new members, sponsored by Wexler Insurance Agency, the SCPA elected new officers and conducted a legislative briefing on some of the projects we worked on over the past couple of years. Following the closed-door discussion, we adjourned to a dinner sponsored by Geib Refining Corporation. Representative Grady Brown, one of our industry’s biggest supporters in the South Carolina General Assembly, gave the keynote address.
One of the most discussed activities among members has been our legislative advocacy program. Because of the relationships we’ve made in the General Assembly and South Carolina Department of Consumer Affairs (the state agency that oversees the pawn industry), we are working toward a comprehensive overhaul of the state’s pawn laws so they reflect the industry as it exists in 2015 instead of the 1980s version under which we currently operate. With support of the House and Senate committee chairs and several committee members from each chamber, the legislation that was drafted in conjunction with the Department of Consumer Affairs creates an environment that will allow pawnbrokers not only to operate and survive, but thrive. Janis’ passing meant a difficult beginning to our industry’s and our association’s year, but in her memory and with her constantly in our thoughts, we are working to expand our association’s membership and activities into something she would be proud of.
PAWNBROKER SPOTLIGHT (From page 9)
Decatur Jewelry and Pawn
these as an expense; look at them as an investment. You’ll always get a great return from them. NP: What is your favorite thing about being a
pawnbroker?
PL: I don’t have one favorite because there are
too many great things about this industry. But one thing that comes to mind is the fine people I’ve met through the NPA that have resulted in some lifelong relationships. Another thing I really enjoy is the great feeling I get from my customers when they come back and thank my staff and me after we have truly helped them in their time of need. That tells me this industry is truly about customers and families. NP: Why are you a member of NPA? PL: I’m a member because of the wealth of
knowledge it has offered me for three decades. I have invested a lot in the NPA, but I have received 10 times more in useful dividends. The association provides a brotherhood and community feeling that is invaluable. The legislative effort put forth by the NPA to keep an even playing field for pawnbrokers nationwide speaks volumes for its importance. They make our industry a well-organized, strong voice on many issues facing each and every one of our businesses. NP: Tell us one thing about yourself that would
surprise us.
PL: Many people are surprised when they find
out I’m a third-degree black belt in the Japanese martial art Daito Ryu Aiki Jujutsu.
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BUSINESS SENSE (From page 27)
Pawn Software
The software vendor should always have capabilities to ensure you are compliant with the laws of the land. These capabilities and resources should be housed at the vendor’s site for quick action. 9. Where is the software developed and supported? The vendor should have ample support technicians and developers on staff as full-time employees instead of contracting out another company to support and enhance their software. This will improve service, enhancement updates, and speed to market. 10. What is the vendor’s future software roadmap? Make sure the vendor talks about the future of their software to ensure they are a well thought out company who plans to grow with the industry. New features can be added by listening to the pawnbroker customer base. A healthy dialogue between the vendor and the pawnbroker will ensure all are well-informed. Having a game plan with intelligent questions will give you very good insight into the vendor, the sales associate you are working with, and the confidence the market has in the company you are contemplating working with. Asking hard questions will place you in the right position to ensure you can make the best and mosteducated decision on a product which should be part of your business for at least 10-plus years. Len Summa is the Chief Operations Officer at Data Age Business Systems, Inc. He has 23 years of experience in executive software solution sales and operational management for both early stage and well established firms. For more information, contact Len at lsumma@dataagemgmt.com.
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YOUNG PAWNBROKER TO WATCH (From page 12)
Lauren Kaminsky Goldman
alongside both the customers and the other areas of lending. “Listen and learn from anyone and everyone” is the best advice that Lauren would give to any young pawnbroker just starting out. “I was always taught that ‘If it’s not broke, why fix it,’ and on day one, I threw that expression out the window.” Lauren advises to not be afraid to suggest new ways of conducting business or ask questions, and to always have an open mind. Lauren and her husband live in Long Island, NY, where they enjoying traveling, skiing, tasting the best foods, and just enjoying life. Lauren has accomplished many things in her six short years as a pawnbroker, but she says she’s not done making her mark on the pawn world. As far as her next steps for the industry, you should definitely stay tuned.
MEMBER NEWS
National Pawnbrokers Association New Members JULY 1, 2015 – SEPTEMBER 30, 2015 PAWNBROKERS Florida Jolly Roger’s Guns Gold & Pawn Inc • Umatilla Georgia Regal Capital Lenders, Inc • Atlanta Kansas Alpha Pawn & Cash • Olathe Mississippi Brett’s Gun & Pawn • Philadelphia
North Carolina Back Country Pawn, LLC • Carthage Texas McBride Pawn & Music • Denton Virginia Mercury Pawn Shop • Hampton
APPRENTICE PAWNBROKER James Stewart • Roanoke, VA INDUSTRY PARTNERS Connoisseurs Products Corp • Woburn, MA Intrix Technologies • Westminister, CO
West Virginia Big Green Jewelry & Loan LLC • Huntington
BOOK CORNER
How to Win at the Sport of Business
by Mark Cuban
IN How to Win at the Sport of Business, Mark Cuban shares the incredible story of his rags-to-riches life. He uses the most popular material from his Blog Maverick to create insider knowledge on what it takes to become a thriving entrepreneur. Cuban tells how he went from sleeping on friends’ couches and getting fired from his first sales job to owning his own company and becoming a multi-billion dollar businessman. Cuban offers strong business advice to entrepreneurs at any stage of their career and, as the second part of the title states, “If I Can Do It, You Can Do It.” He emphasizes that anyone can be successful under the right circumstances and with enough will power. Perhaps Cuban’s most stressed point in the book is the drive of the entrepreneur alone. “In sports or in business, the only thing an individual can truly control is their effort.” People tend to see a rich person and assume that it was handed to them
or that they just got lucky. In the case of Mark Cuban, and many other successful entrepreneurs, this is far from the truth. Cuban paid close attention to detail and put in the extra time and effort that it took to take him straight to the top. “The beauty of success, whether it’s finding the girl of your dreams, the right job or financial success, is that it doesn’t matter how many times you have failed, you only have to be right once.” Success is almost always trial and error, but the highlight is that eventually, with enough effort and maybe a little luck, it will turn into trial and success.
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DIversion Publishing, ©2013
A SHARK’S GUIDE TO SUCCESS
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PAWNDER THIS
May the (Toy) Force Be With You By Rudy J. Klancnik
MY CHILDHOOD officially ended the day I
walked into Toys R Us expecting to see the greatest toys in the history of the world. Instead, I got the biggest pie in the face in the history of me. Star Wars figurines were supposed to be the best ever. I had already reserved plenty of room front and center on my bookshelf to display as many as my chore money could afford. I just knew these toys would be my all-time favorites. I guess George Lucas took the day when it came time to approve these little wookies. Simply put, these Star Wars figurines were a massive disappointment, because they were so darn small. I’ll never understand why they made them so small when figurines for Planet of the Apes, the Six Million Dollar Man, and Star Trek were so perfectly sized. Why didn’t they just follow suit and make Luke, Han, and Leia a decent size? How in the universe could Darth Vader or Chewbacca be so tiny? It just didn’t make sense. Of course, I later learned that since small figurines were cheaper to mass produce, they could make many, many more versions so that kids would buy many, many more figurines. This move, while being economically sound if you’re an adult accountant working on the Star Wars franchise, caused my childhood to abruptly end. So thanks for that, folks.
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If you couldn’t tell from the first three paragraphs of this column, I owned some pretty awesome toys back in the day. To be honest, I still have a healthy stockpile of those old-school toys and, yes, they’re still awesome. Who could forget Evel Knieval and his bad-boy motorcycle? How about the original G.I. Joe with the fuzzy hair, pull-string, and Kung-Fu grip? I’ve still got Steve Austin despite a missing arm that was beyond repair. I’ve still got enough army men (Vietnam era) that I could start World War III in my upstairs TV room if I thought my teenage daughter wouldn’t be forever mortified by the sight of her dad setting up tanks, armored personnel carriers, and recon troops on the carpet. I kept these toys – most of which are in really good condition – for two reasons. The first was the hope that I’d have a son I could pass them to so he would have endless hours of enjoyment. The second is because I just couldn’t part with them. I’m the kid on Toy Story - except I’m nearly 50 years old. Please don’t judge me. Well, as it turns out, my son is now 11 years old, and I’ve introduced him to all of my toy collection. I predicted that while he’d dig the Matchbox cars, the Sizzlers, and the Hot Wheels, it would be the
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soldiers that would truly make his day. Instead, he played with them for about two minutes, then walked into the other room and turned on the Xbox. I decided I wasn’t going down without a fight. Sure, video games are fantastic. Heck, I played Pong when I was a kid all day and night. But how could any self-respecting 11-year-old pass up on a chance to play with Captain James Kirk or First Officer Spock? Yeah, that didn’t work either. He has as much interest in my two favorite characters as he does with broccoli. My son has plenty of toys. Then again, toys to him include an iPhone, iPad, two video game systems, and enough sports gear to start a Dick’s Sporting Goods store. He’s got two Fatheads and a standee of Dan Marino. Wait, Marino doesn’t count. That was mine. There’s a Justin Bieber standee as well, but that one is my daughter’s and, well, let us never speak of it again.
April 27, 2016
Needless to say, the toys of my youth are safely tucked away in the attic literally collecting dust. I’ve thought about selling them, but every time I look up some potential prices, the dollar signs just never come close to how emotional it would be to part with them. And this just in: Star Wars toys will begin arriving any second now as the new movie is set to release in December. I’m guessing someone actually read one of the 227 letters I wrote to the manufacturer because the figures are exactly the right size. I’ve already reserved a perfect spot in my bookcase . . . at the office. You didn’t think my wife would allow a Darth Vader figurine in the house, did you? Rudy J. Klancnik writes for fun, sells stuff for a living, and cheers for any team playing Ohio State or the Yankees.
SAVE THE DATE
2016 NPA Legislative Conference Hamilton Crowne Plaza, Washington, DC Plan to attend the annual NPA Legislative Conference in Washington, DC. Meet with your elected officials to advocate for the pawn industry. Appointments, talking points, and support materials will be provided. Look for more information in the coming months!
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CALENDAR OF EVENTS
INDEX OF ADVERTISERS ADVERTISER Page
ADVERTISER Page
2016 SHOT SHOW JANUARY 19-22, 2016 Sands Expo and Convention Center Las Vegas, NV SHOTshow.org
Aaria (248) 961-0506 AariaDiamonds.com
North American Metals 53 (800) 773-1626 NorthAmericanMetals.com
Bluestone Trading Back Cover (888) 800-BLUE (2583) Bluestone-Trading.com
Padmavati Exports 46 (212) 869-0544 PadmavatiExportsinc.com
3/2016
Bravo Store Systems (888) 407-6287 BravoRevolution.com
Palak Diam (213) 228-0077 PalakDiamond.com
10
9
Rapaport Auctions (212) 354-9800 RapaportAuctions.com
36
CompuPawn (866) 545-9868 CompuPawn.com
41
RMF Consulting Group (866) 204-7209 CheckConsultants.com
25
Data Age (888) 949-7296 PawnMaster.com
28
Rolland Safe & Lock (800) 225-2984 Rslc.net
45
Dillon Gage (888) 436-3489 DillonGage.com
13
Stallcup Group (817) 479-3880 StallcupGroup.com
33
1/2016
2016 DIXIE EDUCATIONAL CONFERENCE & TRADE SHOW MARCH 4-6, 2016 Hyatt Regency Hotel New Orleans, LA Contact Chad Carter: chadcarterlpba@yahoo.com
The Buyers (562) 945-7276 TheBuyers.com
4/2016
NPA LEGISLATIVE CONFERENCE APRIL 27, 2016 Washington, DC Contact Lindsay Wilson: Lindsay@ NationalPawnbrokers.org
5/2016
25TH ANNUAL MIDWEST PAWNBROKERS CONFERENCE AND CONVENTION MAY 13-15, 2016 The Galt House Hotel Louisville, KY Contact: Ron Stempkowski: 1ipa@comcast.net
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Stuller, Inc (800) 877-7777 Stuller.com
5
Geib Refining (800) 228-4653 GeibRefining.com
The Trendz (866) 337-7464 TheTrendz.biz
17
Hi-Tech Precious Metals & Refinery (866) 950-7528 HiTechPMR.com Hoover & Strong (800) 759-9997 HooverandStrong.com
PAWN EXPO 2016 JULY 12-14, 2016 The Mirage Hotel & Casino Las Vegas, NV Contact Lindsay Wilson: Lindsay@ NationalPawnbrokers.org
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Garrett Metal Detectors 55 (800) 527-4011 Garrett.com
Gemological Institute of America (800) 421-7250 Gia.edu
7/2016
3
60
38
56
48
International Gemological Institute Inside Front Cover IGIonline.com
United Precious Metal Refining Co (800) 999-3463 UnitedPMR.com
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Wexler Insurance Agency Inside Back Cover (800) 432-1853 WexlerInsurance.com White Pine Trading (646) 666-7588 WhitePineDiamonds.com Worldwide Diamond (213) 622-2191 WWDiamond.com
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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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Let the dollars fly before the dust settles! We are Bluestone Trading, the premier buyer of second hand jewelry and diamonds! We pay TOP PRICES, offer SAME DAY PAYMENTS, and FREE SHIPPING...that’s convenience that can’t be beat! We also offer a huge selection of estate jewelry and loose diamonds at great prices. It’s a definite win-win. Buy or Sell...Bluestone Trading, Before the Dust Settles.™
Bluestone Trading...Before the Dust Settles™ 888 800-BLUE (2583)
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www.bluestone-trading.com
• webinfo@bluestone-trading.com WINTER 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 1
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WEXLER INSURANCE AGENCY, INC.
INSURING
PAWNBROKERS
SINCE 1968
The Best Coverage at Competitive Prices Available Coverages: v Pawned & Owned Jewelry & Guns
No Coinsurance for: v Pawned & Owned Guns & Jewelry or Other Stock
v Pawned & Owned Other Stock
v Business Personal Property
v Memo
We pay based on your choice of the following:
v Products Liability for Guns & Ammunition
v Actual cost of the loan plus legally accrued interest
v And many more see back page
v 2 or 3 times pawn value
Wexler Insurance Agency, Inc. 1120 Ponce de Leon Blvd. Coral Gables, FL 33134 Tel: 305-445-5050 Fax: 305-448-8189 Nationwide: 1-888-4-WEXLER 1-800-432-1853 E-mail: info@wexlerinsurance.com
v Replacement Cost
New York Office 580 Fifth Avenue Suite 715A New York, NY 10036 Tel: 212-391-5211 Fax: 212-391-5212 California Office 2711 East Coast Hwy. Suite 106 Corona del Mar, CA 92625 Tel: 949-723-3835 Fax: 949-723-3839
Ohio Office 7363 E. Kemper Rd. Suite C & D Cincinnati, OH 45249 Tel: 513-891-2131 Fax: 513-891-2132
Ask about our exclusive Workers Comp program for Pawnshops which is available in all 50 states.
CALL 1-800-432-1853 FOR AN IMMEDIATE QUOTE OR VISIT US AT WWW.WEXLERINSURANCE.COM
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