Official Publication of the National Pawnbrokers Association
SUMMER 2016
START YOUR ENGINES FOR PAWN EXPO 2016 THE LATEST ON THE MILITARY LENDING ACT (MLA) EMV CARDS EXPLAINED
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MESSAGE FROM THE PRESIDENT
Facing Challenges I AM SURE YOU HAVE HEARD BY NOW about all the work being done by NPA to oppose the new rules which take away our exemption to the Military Lending Act (MLA). We have had meetings with the Department of Defense and the Consumer Financial Protection Bureau asking to retain our exemption or, short of that, be given a “safe harbor” allowing for more acceptable means of identifying all covered borrowers without incurring unacceptable costs and manpower requirements.
Larry Nuckols NPA President
We have been working on Capitol Hill in Washington, DC, making our case as well. In April, we had over 50 pawnbrokers participate in our annual Legislative Conference and met with a large number of U.S. Senators, Congressmen, and their staffs in order to voice our concerns and seek their assistance with our issues. In the near future, we will need every pawnbroker to help us fight this battle with our Rally Congress initiative and other grassroots efforts. There is strength in numbers and we request that every member of the NPA reach out to his/her fellow pawnbrokers asking them to join the association and support us in this fight. I can think of no greater assault on our industry than being required to write loans where we cannot recover the cost of writing the loans or the additional costs of verifying the identity of the 95-plus percent of our customers who are not covered by the Act. There will be great opportunities at this year’s Pawn Expo to meet with our government relations team to learn more about the MLA; questions are welcome. We also request your input to make sure that we have covered every aspect of this industry-changing issue. Growing membership is one of the most important aspects of adding strength to the association. In the past few years, a large number of multi-store operators have sold their stores and retired. We need to replace these members, not only to maintain our numbers, but to be assured we have future leaders to guide the industry. We also want to continue to build our Certified Pawn Professional (CPP) program to offer our members the education they feel is necessary to operate in an increasingly complex business environment. Several years ago, we began to assemble a talented and experienced staff at the NPA office. Today, Dana Meinecke has one of the finest teams of professionals in place who are able to handle the complicated issues that come to our association. As I complete my first year as NPA President, I would like to thank everyone for helping me fulfill this role. We have accomplished a great deal, but we have much more that needs to be done. The pawn industry is facing growing challenges, and we must strengthen the NPA so that we can provide solutions to these growing challenges. I am very optimistic that, together, we can accomplish all of this, and more.
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Table of Contents
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DRIVING SUCCESS START YOUR ENGINES FOR PAWN JULY 12-14, 2016 EXPO 2016 THE MIRAGE • LAS VEGAS
Contributors for this issue of National Pawnbroker
Page 30
What is Pawn Expo?
HIGHLIGHTS
SAVE $170
Pawn Expo is the only national convention and trade show for the pawn industry. Attendees learn new ways to strengthen their businesses, connect with fellow pawnbrokers, and do business at the trade show featuring over 120 different companies. Leave energized and equipped with the latest industry knowledge.
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Scott Amberg, EZ Cash of Panama City
by May 27 Recap: The Latest on the MLA Page 12 Legislative Conference with early bird rates
Kathleen Barbee, Lombard Financial Services, Inc.
Paysouth Explains EMV Page 26 PAWNEXPO.COM
IN WHY THIS ISSUE SHOULD I ATTEND?
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Message from the President 1 expert Young Professionals 39 speakers 25 500+ education Message from the Executive Director 4 Gems N’ Loans 50 pawnbrokers sessions 120 connect 170 exhibitors with Letter toto Editor 5 New NPA Members 52 1 with the and dollars in products and can’t-miss learn from savings when services to convention State Association News 55 you register improve your for the pawn by May 27 Community Involvement business industry Guitar Hero 41 Business Solutions Questions? PawnExpo.com
Rapaport: State of the Diamond Industry Social Media: 5 W’s and 1 H Should I Start a Blog?
Compliance NICS News Government Relations Government Relations Update Member Spotlights Pawnbroker Spotlight: K & K Loans Industry Partner Spotlight: M&M Merchandisers Young Pawnbroker to Watch: Colin Crume Behind the Scenes with Helen Moore Member News Annual Membership Meeting
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26 29 42
Pawn Expo Presenter Justin Hale: Getting Unstuck 24 Garrison Wynn: How to Get Someone to Do What You Want Them to Do 36 Richard Bennett: How to Sell a Guitar 47
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Book Corner Pawnder This Calendar of Events Index of Advertisers
18 23
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41 58 60 60
Edward Bean, Suffolk Jewelers, Inc. Richard Bennett, Musical Instrument Reclamation Corporation Fran Bishop, Dollar Pawn Marc Chamberlain, FBI NICS Liaison Justin Hale, VitalSmarts Rudy Klancnik Luis Rodriguez Martin, University of California, San Diego Emmett Murphy, 3 Click Media, LLC The Rapaport Group Garrison Wynn, Wynn Solutions
National Pawnbroker is the official publication of the National Pawnbrokers Association (NPA), and is published quarterly. No part of this publication may be reproduced without the written consent of Dana Meinecke, NPA Executive Director. Sale or distribution of any or all of the contents of this magazine is prohibited. All rights reserved. For more information on advertising or to obtain additional copies of National Pawnbroker, call (817) 337-8830, or send an email to Margie@ NationalPawnbrokers.org. For membership information, email Helen@NationalPawnbrokers.org. EDITOR’S NOTE: This publication is designed to provide accurate and authoritative information on the subject matter covered. It is provided and disseminated with the understanding that the publisher is not engaged in rendering legal or other professional services. If legal advice is required, the services of a competent professional should be sought. Expressed opinions are those of the author and do not necessarily reflect the views of ownership. © 2007-16 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: Will Bowling, WBCreative
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MESSAGE FROM THE EXECUTIVE DIRECTOR
START YOUR ENGINES I’M VERY HAPPY TO ANNOUNCE NPA’s
latest Business Solutions partner – Paysouth Merchant Services. Paysouth provides products and services for your credit and debit card needs and guarantees lower rates. They also provide assistance and education on the new EMV cards. Get your questions answered on page 26. NPA’s convention and trade show, Pawn Expo, is right around the corner. Opening on July 12, NPA Executive this annual event is attended by hundreds of Director pawnbrokers from around the country (and the world). It’s your best bet for engaging with your peers and learning more about what is going on in the industry. Dana Meinecke,
The theme of this year’s event is “Driving Success” and we’re working fast and furious to ensure this show meets your expectations. New speakers this year include: Derek Daly, international race car driver; Garrison Wynn, renowned speaker and author (see his article on page 36); and Justin Hale from VitalSmarts discussing those crucial conversations none of us want to have, but need to have (see Jason’s article on page 24). There are also new Product Knowledge sessions on watches, musical instruments, and coins plus new Pawnbroker Peer Roundtable discussions that you won’t want to miss.
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 Program Coordinator Executive and Membership Priscilla@ NationalPawnbrokers.org
For the first time ever, you can take any one of the six Certified Pawn Professional (CPP) courses on Monday, July 11, the day before Pawn Expo begins. Two brand new courses have been added: 1) Security, Risk, and Crisis Management 2) Product Knowledge If you haven’t started working toward your CPP designation, now is the perfect time. I’d like to thank all of our sponsors and vendors who provide the products and services to keep this event one of the finest in the industry. We appreciate your continued support of the NPA and look forward to working with you for many more years to come. With so much going on in the political arena and in the pawn industry, we hope you take a little time out to renew, refresh, and reenergize your business. So, get your engines started, and race on over to see us at Pawn Expo, July 12-14 in Las Vegas.
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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
LETTER TO THE EDITOR
Stolen Property Recovery Regulations “THEFT IS RAMPANT IN OUR COMMUNITY! WE NEED TO STOP THESE PAWNBROKERS FROM TAKING THIS STOLEN STUFF!” This recent headline means the community or law enforcement is pushing for additional enhancements to current pawn laws. Pawnbrokers accept items from the public in the “good faith” that the presenter is the true owner of the property, and pawnbrokers all perform certain due diligence tests to avoid accepting stolen property. Every pawnbroker has some form of a reporting requirement, whether hand-written documentation or electronic data transfer. There is no uniform set of rules. Each jurisdiction enacts what they feel is necessary to provide their law enforcement agencies with a tool that helps with stolen property recovery. Pawnbrokers, in general, are not adverse to reporting the items they loan against, or purchase, from the public. Most pawnbrokers want more exposure to the fact that they have a successful working relationship with law enforcement and reporting is part of that. Taking stolen property is a losing proposition for both the pawnbroker and the community in time and money dealing with victims, law enforcement, the courts, and the public image. Current regulations work well for the most part. Unfortunately, we now are experiencing the “we got an inch, now let’s get a foot” logic within the law enforcement community with the support of the lawmaking authorities. Some of these changes involve going to an electronic data transfer or moving to data mining consolidators, and in some jurisdictions, to expanding the required information to include digital photos of customers and items. Some areas are even proposing legislation that would make the pawnbroker legally and financially responsible for accepting property later deemed to have been stolen. Often times, these improvements are made without forethought of expenses incurred to those responsible for following these new rules and those obligated to enforce these new rules through increased administration, equipment, storage, and time. Traditionally, pawnbroker information has been used for the singular purpose of finding and dealing with stolen property recovery. In the past, pawn reports were manually compared with robbery, burglary, and theft reports. Now, computers have significantly improved law enforcement’s ability to electronically perform the same task, saving time and money. Since the ability to search and locate potentially stolen
property has been significantly reduced, the required hold period should also be reduced. Along with this new-found efficiency, came the ability to use pawnbroker-provided data to be manipulated by law enforcement to perform additional database searches for other purposes that have nothing to do with stolen property recovery. Pawnbrokers can now statistically show that 99.9 percent of all pawn related transactions are not inclusive of stolen property. A similar assumption can be made that 99.9 percent of all pawn customers are not presenting stolen property. For law enforcement, stolen property recovery is an inconvenience. Comparing stolen property found in pawn stores to the number of theft, burglary, and robbery reports, the actual recovery percentages are small. Often an officer taking a stolen items report will suggest to the victim, “Check out the pawn stores.” It’s good for a victim to be proactive, but the officer’s comment misleads the victim into thinking they need to act as their own investigator, when that is law enforcement’s responsibility. When recovery occurs, it is generally not high profile, headline-making news. It’s just another statistic in the win column. The new theory is, if more hoops can be created that prevent thieves from liquidating their illgotten goods at the pawn stores, we will reduce theft in our community. That’s an unrealistic idea. Thefts will occur regardless of new regulations. Thieves have gotten wiser knowing that pawn stores report to law enforcement, but there will always be dumb thieves who come to pawn stores to dump their loot. So, if stolen property is not being recovered in pawn stores, where is it going? Law enforcement is realizing there are many outlets for the disposal of stolen property in addition to pawn stores. This is why metal recyclers, scrap yards, second-hand dealers, and others are starting to get targeted by expanding pawn laws and their reporting requirements. There are many more used-item businesses that have yet to be included. Increasing the regulations, penalties, and the types of businesses that have to report will not support the premise that cutting off a legitimate outlet for thieves to dispose of their ill-gotten goods will translate into the reduction in the amount of thefts, burglaries, and robberies. Thieves will simply migrate to the underground economy. Scott Amberg EZ Cash of Panama City, Panama City, FL
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GOVERNMENT RELATIONS
Challenging Issues Ahead Edward Bean, NPA GRC Chair
I have just returned from a very exciting and intense NPA Legislative Conference in Washington, DC. We had a great turnout and met with dozens of Congressmen and Senators. We traveled to Washington to garner support for our current legislative effort concerning the Military Lending Act (MLA).
get involved. I want to thank all the pawnbrokers who took valuable time away from their family and businesses in order to come to Washington, DC, to help represent our industry in our time of need. I believe everyone came away with the feeling that, with a little effort, we can get Congress on our side.
We will all have to comply with this new federal requirement of checking the military status for every pawn customer who applies for a loan. If the customer is found to be active military, or a dependent of active military, we will not be allowed to charge more than a 36 percent military annual percentage rate (MAPR).
Below is a powerful message from two NPA Legislative Conference attendees, Bill Dawson, President of LDPM, Inc., and Rita Hand, owner of Gold Mine Pawn Shop, regarding the importance of getting involved.
If we are not successful in finding a solution to our problem, we will find a number of our fellow pawnbrokers leaving the industry. Those of us near military bases will have a hard choice to make, and many will never be the same. This is why it is so important to participate in our legislative efforts. In the coming weeks and months, you will be receiving information and requests for your participation in contacting Congress to help us get some relief from these compliance requirements. The future of our industry, and that of the lending industry, in general, along with the small dollar loan industry, is changing at an accelerated rate. More challenges will be facing us in the near future. The non-bank landscape has changed, and we will need every one of our industry’s independent congressmen to help navigate it. You can no longer say the NPA’s government relations committee will handle it. We need everyone to
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I have been involved in this business as well as the NPA for over 25 years. This year, I arrived a day early at the NPA Legislative Conference to attend the Board meeting. This was an eye-opening experience as I never truly understood what the Board really does for our industry. As laws and legislative issues came to the surface, I paid some attention to the impact and scope of what proposed or impending legislation meant to our industry, but I was lulled into a false sense of security. When issues surfaced, like the Military Lending Act (MLA), I thought, “We aren’t in a military town, and this will not matter to me.” The “Powers that Be” said we were okay. We were okay, but maybe not for long. Current rulemaking authorities in Washington seek to include the pawn transaction in the MLA. Even those nowhere close to a military institution will be affected by this! Our Board and its Government Relations Committee is our first line of defense. When regulatory and governmental issues surface, they ring the bell and we must answer it.
GOVERNMENT RELATIONS Most of you reading this are NPA members. However, there are many that reap the benefits of the hard work the NPA does without investing in membership. This is our livelihood and I urge you to get, and stay, informed about the NPA and its work. Participate in as many association activities as possible. Most importantly, reach out to those who aren’t members of the association. I have heard it said that it’s too expensive. I say it’s too expensive and dangerous not to make that investment. I have a saying that my people hear all the time that is very, very true. “If you don’t do anything, nothing is going to happen!” Bill Dawson CEO President LPDM, Inc. Our family has owned a pawn shop in lower Alabama for 34 years. This year, for the first time, my husband, Tom, our two youngest sons, TJ and Gunther, and I attended the NPA Legislative Conference in Washington, DC. I can only say that I wish I had attended sooner, and I hope I will have the opportunity to go again. We were able to actually be a part of a very important Act that could affect our industry in the United States.
I was extremely pleased with how well the NPA prepared us to be effective in talking to Members of Congress and their staff. The briefing we received pulled it all together. This was a lot of work, and once you have gone, you can fully appreciate not only the immense amount of time that they put in for this conference, but how much they do for each and every pawnbroker. I was disappointed to see how few people attended with such important legislation looming before us. I don’t think enough of us, me included, knew enough about the process. I realized that I, small-town Rita, could make a big difference. Our boys have a new respect for our business, for how the wheels in Washington really work, and for the fact that they were able to meet the people that can, and do, make a difference. Let’s continue to get this younger generation involved and show them THEY can make a difference! Rita L. Hand Gold Mine Pawn Shop Daphne, AL
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MEMBER NEWS
Notice of NPA Annual Membership Meeting JULY 12, 2016
By Kathleen Barbee, Secretary National Pawnbrokers Association
Notice is hereby given that the annual Membership Meeting of the National Pawnbrokers Association will be held at The Mirage in Las Vegas, NV, on July 12, 2016, from 8-9 a.m. At the meeting, the membership will ratify the slate of candidates provided by the Board of Directors for the election of Directors and receive reports from the Officers and the annual report. In
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addition, the membership will transact any other business that is brought before it in accordance with the bylaws of the association. The individual listed as the representative of the Pawnbroker Member with the Association shall be considered the voting delegate. An alternate delegate may be selected if the representative is unable to attend the Annual Membership Meeting. The alternate delegate must be an employee, officer, or owner of the Pawnbroker Member. An Alternate Delegate form must be submitted at least three (3) weeks in advance of the meeting. If no Alternate Delegate form is submitted and the representative of the Pawnbroker Member is not in attendance, their vote shall be forfeited. All other forms of proxy voting are prohibited. For more information, contact NPA’s Executive Director, Dana Meinecke, at Dana@NationalPawnbrokers.org or call (817) 337-8830.
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THE TRENDZ
TURN YOUR DIAMONDS INTO CASH
WE BUY DIAMONDS MELEES, LARGE STONES, BROKEN, CHIPPED, EVEN BURNT, as well as UNWANTED JEWELRY
550 South Hill St., #1340, Los Angeles, CA 90013 Toll-free: 866.337.7464 | Cell: 213.999.0237 | Fax: 213.622.6612
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PAWNBROKER SPOTLIGHT
K & K Loans
Serving small town West Virginia Jon Green (l), Brent Kalafat (r); K & K Loans, Buckhannon, WV
K & K LOANS HAS BEEN A MEMBER OF NPA SINCE 1995. Brent Kalafat, the son of the original
owner, shared his ideas about the pawn industry. NATIONAL PAWNBROKER (NP): Tell us about
your company.
BRENT KALAFAT (BK): I am a current owner/ operator of four pawnshops located in four separate towns in north central West Virginia: K & K Loans in Buckhannon, C & J Trades in Clarksburg, The Gun Show Jewelry and Loans in Fairmont, and W.V. Pawn in Morgantown. Partnering with my colleague, Jon Green, I became 50 percent owner of my first pawn store in 2003, but I have been around the business most of my life as my father opened his first store, K & K Loans, in 1987. NP: What makes your stores different from other pawn stores in the area? BK: In small town West Virginia, the best advertising is word of mouth, and the first and last thing people remember is customer service. At all of our locations, we strive to make the pawn experience as comfortable and as convenient as possible by offering a welcoming and friendly attitude. NP: In your opinion, what are the biggest
challenges facing pawnbrokers today?
BK: The largest threat to our industry is
government regulation on all levels. As president of the West Virginia Pawnbrokers Association, I am confronted just about every week with newlyproposed legislation in cities and counties across
the state, and every year our state legislature also tries to impose new rules and regulations on pawnbrokers. The same is true in Washington, DC. Many legislators simply do not understand much about our industry, so we must constantly educate them about our business practices. NP: What advice would you give to a pawnbroker just starting out? BK: Pawnbroking is a never-ending learning process. Keep your mind sharp, network with other pawnbrokers whenever possible, and remain friendly with your direct competitors. There may come a time when they will have information warning you about a pending scam or a dangerous customer headed your direction. Also, if you treat your employees like family, they will respect you, your business, and your customers which is crucial for a successful operation. NP: How will the new Military Lending Act rate cap affect your company? BK: As it stands now, the Military Lending Act rate cap will render most loans to active-duty military personnel unprofitable for my company. As a small business, we operate with significant overhead. Three percent interest on a typical $100-$300 short-term, 30-day loan simply will not come close to covering the cost of conducting the transaction, storing, and securing the collateral. Larger loans in excess of $1000 would still be profitable, but in small town West Virginia, we seldom have military personnel seeking loans of that nature. (Continued on page 54)
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GOVERNMENT RELATIONS
NPA 2016 Legislative Conference Attendees
NPA 2016 Legislative Conference Recap LIKE EVERY SEASON, THE SPRING OF 2016
were greatly appreciated by all.
has been a busy time for your NPA Government Relations Committee (Team GRC). We’ve just returned from the NPA’s annual Legislative Conference held on April 27 in Washington, DC. Over 50 pawnbrokers attended from across the country. For many, it was their first experience, but you soon couldn’t tell them from the veterans. Plenty of pre-conference information was sent out in advance, so the group was well prepared for the day’s assignments.
We continued with a briefing of the issues we presented to our Congressional Representatives and their various staff members. No one can better represent the pawn industry than you, the independent pawnbroker. The importance of visiting Members of Congress and telling our story in order to preserve the businesses we all rely upon to support our families and employees, and serve our customers, cannot be stressed enough.
Following breakfast, we were welcomed to Washington by the Honorable Representative David A. Scott of Georgia, who was introduced by long-time friend and NPA Past President, David Adelman. Congressman Scott’s remarks about the importance of the pawn industry to unbanked and underbanked consumers
It is always great to see the continued support we receive while in our nation’s capital, and this year proved to be equally welcoming as our determined band of pawnbrokers were about to see. Mostly divided into groups by state, and with NPA info packets in hand, everyone headed off to the Hill for appointments with their respective Senators and Representatives.
2016 NPA Legislative Conference Attendees ALABAMA Fran Bishop Gunther Hand Rita Hand Thomas Hand Thomas Hand, V. Rosemary Hipps ARKANSAS Douglas Braswell Tim Collier Michael Willingham CALIFORNIA Jordan Tabach-Bank DISTRICT OF COLUMBIA Jessica Barakat
DELAWARE April Knoten Rita Paulsen Scott Paulsen Troy Paulsen
KANSAS Colin Crume David Crume Bruce Harris LOUSIANA Chase Rainey Kerry Rainey
GEORGIA David Adelman Ben Levinson Chuck Williams
MASSACHUSETTS Edward Bean Michael Goldstein Marc Gundersheim
ILLINOIS Bob McCullough Kathy Pierce
MARYLAND Michael Cohen Nick Uroda
INDIANA Rob Anderson
MICHIGAN Seth Gold
OREGON Josh Oller
NORTH CAROLINA Bill Dawson Heidi Dawson Denise Howland Jery Howland Bob Moulton Brian Moulton Johnny Whiteside Tara Whiteside
TEXAS Kathleen Barbee Cathy Gish Boyd Naylor Larry Nuckols Kevin Prochaska
NEW HAMPSHIRE Roger Weinreich
VIRGINIA Cory Brown Mark Brown Jay Dunbar
OHIO Raphael Tincher
UTAH Randi Nell
UNITED KINGDOM Ray Perry
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GOVERNMENT RELATIONS There always seem to be numerous issues in front of us that could potentially affect the pawn industry, but choosing the primary one to focus on for our Hill message was not a hard decision this year. At the forefront for nearly two years now is the Department of Defense (DoD) Military Lending Act expanded regulation that limits all interest and other charges for credit to a 36 percent Military Annual Percentage Rate (MAPR) for pawn loans made to active-duty service members and their dependents. The mandatory compliance date of October 3, 2016, is fast approaching, and our numerous requests to the DoD and the Consumer Financial Protection Bureau (CFPB) for guidance to assist pawnbrokers remain unanswered for the most part. Unfortunately, the NPA received notification from the DoD Defense Manpower Data Center (DMDC) that we were not selected to receive the direct connection portal for which we had applied. There were over 3,900 applications submitted, but only 15 connections granted. We were extremely dismayed at this rejection
as we provided them with our estimated number of daily pawn transactions at between 250,000 and 300,000. The DMDC’s response suggested that we batch this number of transactions together and submit them once a day to receive a status report that can take up to 24 hours or longer when the system is overloaded. This option is not only impractical, but impossible. We armed our Legislative Conference attendees with a request for assistance from Members of Congress to assist in urging the DoD and the CFPB to act on our additional request no later than July 1. In particular, this method would enable pawnbrokers to identify “covered borrowers” (active-duty military members, spouses, and dependents) through a signage display in their stores advising them they will be eligible for certain discounts or benefits by presenting their military ID. This particular language would also be made a part of the pawn ticket signed by our customers. We additionally requested that this alternative qualify pawnbrokers for the “safe harbor” protections as (Continued on page 48)
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COMPLIANCE
News from the FBI Criminal Justice Information Services Division NATIONAL INSTANT CRIMINAL BACKGROUND CHECK SYSTEM (NICS) SECTION
NICS E-CHECK UPDATE
The NICS E-Check continues to be the method most Federal Firearms Licensees (FFLs) choose for submitting their firearm background checks. During the first quarter of 2016, almost three out of every four firearm background checks were initiated using the NICS E-Check. A few NICS E-Check helpful tips follow: • Be sure to enter all descriptive information that is available — This will help avoid lengthy
delays or erroneous denies. The NICS Section will err on the side of caution when uncertain of the match; therefore, the more descriptive information you can provide, the better. • Be sure to check statuses daily — This will
ensure that FFL and NICS records match in relation to transactions submitted by the FFL. • Administrative/Primary Users can reset passwords for other employees — If you
are the only Primary User and your account is locked or you need your password reset, you will need to contact the NICS E-Check Customer Service at (877) 324-6427, option 2, then option 5 for assistance. • Removing employee access — If an employee
has left the company, an Administrative/ Primary User can easily remove their access to the NICS E-Check. To remove them, click on the “Modify Accounts” tab, scroll down to the “Edit User Roles” portion of the screen, click on the drop down arrow, and select “Remove user from this FFL”, then click “Update.”
• Registering for the NICS E-Check — Access
the NICS E-Check User Guide for information if you are not a current user, but would like to begin submitting your searches electronically. To access the NICS E-Check User Guide, go to nicsezcheckfbi.gov and click “Access the FBI NICS E-Check Help Pages,” then click on “User’s Guide (pdf).” Sections 1 and 2 will provide the necessary information for initial setup. Additional Note: The NICS Section is not permitted to provide specific information on a delay or denial over the telephone. If your customers are delayed or denied, please provide an NICS Resolution Card to them. The NICS Resolution Cards can be obtained by visiting fbi. gov/nics-ffl and clicking on the “Order Your NICS Resolution Cards” link. New NICS Update
Over the past couple of years, you have probably heard about the upcoming rollout of the New NICS which is being developed to replace an outdated system that was developed prior to 1998. The rollout date was postponed from the planned deployment of January 12, 2016, and is now scheduled to rollout late summer 2016. The New NICS will increase efficiency of the system and will decrease system downtimes. Most browsers are compatible with the new system. After rollout of the New NICS, if you are an NICS E-Check user and are having compatibility issues, please upgrade to the latest version of your browser.
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INDUSTRY PARTNER SPOTLIGHT
Fort Worth Staff
M&M Merchandisers GETTING THE GOODS FOR PAWNBROKERS Atlanta Staff
FOUNDED IN 1976, M&M Merchandisers is
celebrating 40 years in business this year. With 65 employees and two locations, they can supply just about any wholesale need a pawnbroker could have. Chuck Franklin, president of M&M, shared some of the company’s history and philosophies with National Pawnbroker. NATIONAL PAWNBROKER (NP): Tell us a
little about the company.
CHUCK FRANKLIN (CF): M&M Merchandisers was founded in 1976 by Marty Stenzler. The family had previously owned Weber’s Pawn in Fort Worth, TX. Marty saw the need for accessories to help support the sale of products coming out of pawn as well as everyday supplies to run the business (i.e. gold acid, jewelry displays, jewelry cleaning supplies, etc.).
Today, 40 years later, M&M Merchandisers has over 10,000 items and two locations – Fort Worth, TX, and Atlanta, GA. We distribute a fullcolor, 500-page catalog twice a year. Our 40th Anniversary catalog came out in April. While the products have changed over the last four decades to keep up with demand and new technologies,
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the core values of superior customer service and competitive prices have not. NP: What kind of products do you offer? CF: The product categories include:
• • • • • • • • • • • • • • •
car and marine audio 12-volt accessories consumer electronics and accessories gift and novelty items home theater home electronics and accessories gaming accessories retail aids and point of purchase supplies musical instruments and accessories DJ lighting and sound equipment sporting goods gun accessories tools jewelry supplies personal defense
NP: What new trends are you seeing in the
merchandising industry and how do you decide which ones to follow? CF: We have seen a real growth pattern over the past two years in our sales of gun-related and smartphone accessories as well as the latest diamond and moissanite testers to keep up with the diamond simulates hitting the market. We base our decisions on new items from customer
INDUSTRY PARTNER SPOTLIGHT feedback, national trends in other industries, and our 40 years of experience in the pawn distribution arena. NP: How can your products and services help
our pawnbroker members? CF: One way is to protect them from taking in fake gold, diamonds, and other gems by providing testers with the latest technology. Another way is by having accessories available to help them sell their out-of-pawn products. For example, we can supply the necessary controllers and accessories for a gaming system that came out of pawn without them allowing the pawn store owner to get more money for a completed system. NP: What makes your company different from
your competitors? CF: The difference is our superior customer service and the fact that we are a one-stop shop for most all of the pawnbrokers’ needs.
NP: Which shows do you participate in? CF: We participate in Pawn Expo (NPA’s
Convention and Trade Show), National Association of Music Merchants Show (NAMM), Texas Association of Pawnbrokers Convention (TAP), and the Dixie Educational Conference & Trade Show. NP: Why are you a member of NPA? CF: We feel the NPA brings a real value to us as
a partner and the pawnbroking community with the services they offer. We have been a member since the inception of the association and are proud to support the industry that we love. NP: What is the best way for NPA members
to contact you or learn more about your company? CF: They can go to our website, mmwholesale.com, visit us at one of the pawn shows, or call (800) 299-9035 for a catalog.
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YOUNG PAWNBROKER TO WATCH
Colin Crume HEARTLAND PAWNBROKERS – WHERE EVERY DAY IS DIFFERENT
COLIN CRUME, Operations Manager at Heartland Pawnbrokers in Overland Park, KS, has been working in the pawn industry since he was a mere 13 years old. At the time, his father, Dave Crume, was the COO of Capitol City Pawn, based out of his hometown of Topeka, KS. Like any other kid, Colin was excited for summer break, but his father saw an opportunity for him to help out at one of the stores. Although Colin was not excited about it at the time, he now says, “It’s one of the greatest decisions that I’m glad I had no say in making.”
One of the many reasons why Colin loves the pawn industry is because the day-to-day routine is very unpredictable. He could be tearing apart a dysfunctional computer, working on a small engine, repairing pro audio equipment, or working on the store’s online presence. Fortunately, Colin has been able to put together a team capable of running daily store operations without his constant involvement. With that faith in his team, he has been able to focus his attention primarily at the loan counter. His experiences there show him where they can refine processes and find opportunities to better serve their customers. In addition to all his other duties, he’s creating a point-of-sale system customized for pawnbrokers that he hopes will come together within the next few months.
“The best thing we can do is to stay active in our communities and give people the opportunity to get to know us.”
Colin, his brother, Blaine Crume, and Steve Foglesong, Vice President of the Kansas Pawnbrokers Association, opened their first store in 2010 with limited inventory and even more limited funds. Because of this, they knew that inventory should be turned as quickly, and as often, as possible. Colin first experimented with online sales in high school as an opportunity to move stale inventory at the pawn store. It turned into one of the store’s most important revenue outlets. When their first operation opened, it was one of the first tasks they set out to develop. It now accounts for up to 30 precent of their annual sales.
While working hard to better his business and the industry, Colin also believes in preparing for the future of pawn. “While the majority of us are small business owners who provide a valuable service to our communities, that message doesn’t seem to resonate,” he stated. “The best thing we can do is to stay active in our communities and give people the (Continued on page 49)
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BUSINESS SENSE
Rapaport Diamond Insights DIAMOND INDUSTRY SEES SUPPLY-DRIVEN IMPROVEMENT By The Rapaport Group
THE DIAMOND INDUSTRY, EMBATTLED BY CHALLENGES IN 2015, found muchneeded relief in the first quarter after trading picked up and profit margins improved. The first three months tend to be a positive period for the trade as jewelers replenish stock following the New Year and Christmas holiday period. The improvement in trading was largely due to manufacturers depleting inventory by limiting rough purchases in the second half of last year. That, after they started 2015 with an over-supply of diamonds. As shortages emerged, manufacturing levels in-
creased and the polished market showed signs of recovery in the first few months of this year. In fact, polished diamond prices have firmed up since November as dealers sought to replenish inventory. Reflecting this market trend, the Rapaport benchmark RapNet Diamond Index (RAPI™) for 1-carat diamonds rose 1.4 percent in the first quarter. The index for 0.30-carat diamonds jumped 6 percent, while RAPI for 0.50-carat diamonds climbed 5.2 percent. As demand for larger diamonds has been weaker, RAPI for 3-carat stones dropped 2.9 percent (see chart A).
Chart A
Prices of melee diamonds, often sold by pawnbrokers, also advanced fueled by shortages with the Rapaport Melee Index (RMI™) up 9 percent from September to March.
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BUSINESS SENSE
Chart B
STEADY U.S. DEMAND Global demand has been underpinned by a steady U.S. market, which has helped to overcome the sluggishness in emerging markets. Diamond jewelry sales in the U.S. jumped 5 percent to a record $39 billion last year, according to a De Beers report published in April. The U.S. now accounts for 45 percent of global demand, up from 42 percent in 2014. However, that wasn’t able to prevent a decline in overall revenues. Global diamond jewelry sales fell to $79 billion in 2015, off its record high of $81 billion in the previous year. Demand fell because of weakness in emerging markets and the strength of the U.S. dollar, De Beers explained. In dollar terms, sales retreated in Japan, India, the Gulf, Brazil and Russia. Revenues, however, rose 1 percent to $10 billion in China, the secondlargest market for diamond jewelry. Chinese purchases in foreign markets propped up the industry as tourists from the Asian country looked for better deals in Japan, South Korea, Europe, and New York than the more-expensive domestic market. CAUTION IN ASIA PACIFIC Chow Tai Fook, which ranks among the largest
jewelers in the Asia Pacific region, said its sales in Hong Kong and China were hit by overseas purchases. Weaker sentiment in China in the aftermath of slowing economic growth also weighed down domestic buyers as the company experienced a slump in revenues even during the Chinese New Year period. Diamond dealers attending the Hong Kong International Jewellery Show in March reported Chinese demand for jewelry was cautious in the current economic climate. Jewelers in Asia Pacific have refrained from making large inventory purchases, limiting their buying to fill immediate stock requirements. Similarly, activity at the Baselworld Fair in Basel, Switzerland, known for its focus on the higher-end product range, reflected weak sentiment in Europe. GENERIC MARKETING PUSH While dealer demand improved from the beginning of the year as the trade sought to restore inventory levels, concerns remain about the lag in consumer demand. New buying patterns and preferences among Millennials are challenging the industry, which has been slow to adapt in recent years. The lack of generic marketing over the past decade has also taken its toll as the industry (Continued on page 48)
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RAPAPORT DIAMOND AUCTIONS THE CASH MARKET FOR DIAMONDS MONTHLY MELEE AND SINGLE STONE AUCTIONS
JUNE 14-22, MELEE
NEW YORK & DUBAI
JULY 12-20, MELEE
NEW YORK & DUBAI
JULY 13-20, SINGLE STONE AUGUST 9-18, MELEE
NEW YORK & ISRAEL
NEW YORK & DUBAI
AUGUST 24-31, SINGLE STONE
NEW YORK & ISRAEL
TO SELL YOUR DIAMONDS IN OUR NEXT AUCTION CONTACT US AT:
+1-212-354-9800 auctions@rapaport.com www.rapaportauctions.com 22 | NATIONAL PAWNBROKERS ASSOCIATION | SUMMER 2016
BEHIND THE SCENES
Helen Moore NPA DIRECTOR OF MEMBERSHIP RETAINING AND RECRUITING MEMBERS is at the heart of any association. As NPA’s Director of Membership, Helen Moore creates campaigns to reach current, past, and future members through print, email, and face-to-face marketing plans. She must determine what members want and then make sure they get the best value for their membership dollars.
No two days are the same for Helen. One day may be spent creatively developing a membership postcard and the next day working analytically on statistics and budgets – all things she enjoys. In addition to membership recruitment, Helen also manages many of the association’s member benefits, such as the NPA Member Forum, the Members Only area of the NPA website, use of the NPA logo, and the Verified Seal program. “It can be very difficult to identify the challenges pawnbrokers are experiencing and locate viable solutions that will be universally beneficial to our members. Making sure information about important issues like compliance, security, and image is communicated to pawnbrokers in an effective manner is always a challenge,” Helen says. Her two greatest accomplishments since she arrived at NPA in 2014 are securing the anti-money laundering manual and Red Flags policy discounts, and providing members with access to the human resources consulting program which allows even the smallest operation to have a full-service HR department. Helen came to the association with extensive experience in the non-profit sector. She has over
“It can be very difficult to identify the challenges pawnbrokers are experiencing and locate viable solutions that will be universally beneficial to our members.” 25 years of management expertise with Court Appointed Special Advocates (CASA), Water for Life, and the Better Business Bureau. Hailing from Portland, she is a fourth-generation Oregonian and attended Oregon State University in Corvallis. After college, she was a buyer for Del Monte Corporation (she knows all about green beans), a station manager for a commuter airline, and a director of sales and marketing for Sheraton Hotels. Helen says the most unique thing about her is her daughter, Monica. “In December 2015, she completed her Masters in Beef Nutrition at Texas A & M University (who knew there was such a degree), and is now working as the Quality Control Manager for Westway Feeds.” When Helen isn’t recruiting new members, you can find her enjoying the great outdoors, most likely by the pool with a margarita in hand.
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PAWN EXPO PRESENTER
Getting Unstuck, One Conversation at a Time I DON’T KNOW YOU AT ALL, but what I do know is you likely aren’t getting a variety of things you need or want in your life. Neither am I. We’re all stuck in some area of our lives, whether it’s getting great performance from our employees, high quality in our products and services, or getting our neighbor to park anywhere but on our grass. The truth is that what’s keeping us stuck is something simple: a conversation - a crucial conversation with high stakes, differing opinions, and strong emotions. Our organization was researching a hospital where a nurse manager was stuck because of a performance issue. According to her, one of the nurses who worked for her was “dangerously incompetent.” Instead of addressing this important issue, the manager would wait until the struggling nurse left a patient’s room and then send in another nurse to double check all of her work. Would you want to be treated at that hospital? I wouldn’t. The nurse manager was stuck, the team was stuck, and a patient’s safety was at risk—all because of a crucial conversation she wasn’t having. Here’s the problem: when faced with conversations that stand between us and our results, we tend to address them in two very ineffective ways—silence or violence. With silence, we mask our concerns, we avoid speaking up candidly, and we hold back. Silence is the quiet killer of team cultures, relationships, and business success. When people don’t speak up, their concerns don’t just go away. They go into hiding.
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Justin Hale Master Trainer VitalSmarts
Justin Hale is a trainer and speaker for VitalSmarts, a corporate training company based in Provo, Utah. He has trained across dozens of industries on topics such as crucial conversations, accountability, influence, and personal change. For more information on the Crucial Conversations courses, visit VitalSmarts.com.
Over time, those concerns build, and we move to our second ineffective mode in conversations. This was illustrated well by a comic I recently saw of an older couple. The husband looked at his wife inquisitively and asked, “Whenever I get mad at you, you never seem to get upset. How do you manage to control your temper?” The wife looked back at him with a smirk on her face and replied, “I go clean the toilet.” The husband, looking very puzzled responded, “How does that help?” With a large smile she replied, “Well, I use YOUR toothbrush!” This captures well what often happens as we hold in concerns for a long
PAWN EXPO PRESENTER
“How can I be honest and respectful?” period of time. Those concerns build until they blow. We control, coerce, and attack others to try to get them to agree with what we want, which can be an effective way to create bad results and poor relationships. The more time we spend in either silence or violence in our crucial conversations, the worse our results will be. So, if we know that using silence and violence tactics in our crucial conversations doesn’t get us what we want, then why do we use these tactics at all? The reason is because we become overwhelmed by what I call the “fool’s choice.” We convince ourselves that when faced with a crucial conversation, we have to choose to be honest OR nice, candid OR respectful. We
foolishly believe that it’s an either/or situation, so we feel bound to silence or violence. In our studies for the past 30 years, we have found those who are best at crucial conversations don’t fall for this. They understand they can be honest AND nice, respectful AND candid. They focus on dialogue. Everyone on a team has ideas, data, and experiences that are meaningful to the team. When we create an atmosphere where people feel safe to share that meaning, we have a pool of shared meaning and a rich dialogue. We’re smarter. Our group IQ goes up. We make better decisions, and we get more unity and conviction around those decisions. Here’s my invitation to you: don’t see those tough conversations in front of you as barriers between you and success. They’re actually key stepping-stones. And when you see them, think, “How can I be honest and respectful?” You’ll build better relationships, get better results, and get unstuck.
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BUSINESS SOLUTIONS
Meet NPA’s Newest Business Solutions Partner The NPA would like to announce its newest Business Solutions partner – Paysouth Merchant Services. Paysouth provides products and services for all of your credit and debit card needs with straightforward pricing, guaranteed lower rates, and no early termination fees. Paysouth also provides assistance and education on the new EMV and debit regulations. Below is an article with information on what pawnbrokers need to know about the new EMV credit cards.
EMV (Europay, MasterCard, and Visa) sets global standards for smart cards which are also known as chip cards or EMV cards. Smart cards are equipped with a computer chip that creates a unique transaction code every time the card is used for a cardpresent transaction. The United Kingdom (U.K.) has been using a chip card since early 2003. The United States card market opted to issue cards with a magnetic stripe which is less secure and more susceptible to fraudulent acts. EMV cards have been very effective in bringing down counterfeit card rates in other countries since they were introduced. In the U.S., without EMV cards, fraudulent activity has doubled in the last seven years. EMV chip cards have been mandated in the U.S. as of October 1, 2015, because they are a safer, more secure payment option. When an EMV card is used, even if the transaction data is breached, it cannot be used for another transaction because of the unique code the card generates on every transaction. The majority of chip cards being issued in the U.S. still have a magnetic stripe on the back with the chip technology on the front to accommodate the industry’s transition to EMV cards. One major difference between the U.S. market and the U.K. market is that in the U.K., the transactions are chip-and-PIN. In the U.S., the transactions are chip-and-signature for credit cards. So, when travelling to other countries, you may have some merchants who are unwilling or unable to process your card even with a smart card.
HOW IS THE TRANSACTION DIFFERENT THAN WHAT I DO TODAY? Basically, the transaction is processed the same by having the terminal read the card and then verify the transaction. However, instead of swiping the card, the consumer inserts it into an EMV compliant terminal and leaves the card in the terminal until the transaction is complete. This is now called “card dipping.” One common complaint from retailers is that the transaction time for a chip card is longer than for a card that is swiped. Although Visa continues to state that the time to process a transaction is exactly the same, they did announce last week that they are planning an EMV payment modification that will make the transaction appear faster to the consumer. A concern throughout the pawn industry is when the switch was made to EMV, the PIN debit card transactions were being processed as credit card transactions, and getting the higher interchange rate. For regulation purposes, pawnbrokers were not out of compliance because the funds were still drawing from a checking account, and not a line of credit. The reason for the problem was the encryption communication needed between the terminals and the bank that issued the debit card. Most of the banks had not integrated the encryption required for this to happen, but most of them have installed it as of March 2016. Now that (Continued on page 57)
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Midwest Pawnbroker’s Conference & Convention May 16-18, 2014 Booth - 30
JIS Miami Beach Show October 11-14, 2014 Booth - 1317
California Pawnbrokers JCK Exhibition 2014 Association (CAPA) 28 | NATIONAL PAWNBROKERS ASSOCIATION | SUMMER 2016 50 | NATIONAL PAWNBROKERS ASSOCIATION WINTER 2015 | June 1-4, 2014 Booth - B4446 October 24-26, 2014
SOCIAL MEDIA
Five W’s and One H THE ROAD TO SOCIAL MEDIA
HOW MANY OF YOU HAVE CELL PHONES, LAPTOPS, OR CARS? Isn’t it shocking to think that all of those things, at one point or another, weren’t “the norm”? The world is constantly creating new technology and new ways of going about their daily lives. As humans and business professionals, we have to decide how we will adapt to our ever-changing surroundings. As Charles Darwin said, “It is not the strongest or the most intelligent who will survive, but those who best manage change.” According to Pew Research Center, 65 percent of American adults use social media networking sites. Repeat that to yourself -- 65 percent of ALL American adults. Think of the potential that could hold for your business. When beginning your social media journey, just like in a high school journalism class, it is important to remember the 5 W’s and one H.
page for. Remember: never post anything that will shine a dark light on the industry such as body parts, human remains, or anything that attaches to the body such as wigs, glass eyes, dentures, gold teeth, or prosthetic limbs.
W
ho is your target audience?
Before posting to any platform, you must decide who you are posting for. Are you posting for potential customers, group members, or peers? Also, take a look at your demographics. Is your business geared toward a certain age, sex, economic status, etc.? For example, if you run a nail salon, you are most likely to target women, and if you run an automobile supplies shop, men. Determine who you want to engage with and make an impact on.
W
W
hen is the best time to post?
hat kind of content will you be posting?
In social media, content is king. Are you using social media to engage your customers or to increase traffic to your website? No matter what you post, always make sure to use content that will resonate deeply with your audience. If your target audience is mainly interested in clothing, don’t break character by posting about furniture. Give your audience exactly what they came to your
W
Knowing when and how often to post can make or break you. Research the best times to post for whatever platforms you may choose to use. For example, according to Business Insider, the best time to post a status to Facebook is on Thursday or Friday at 1 or 3 p.m. Knowing how often to post is vital as well. Posting too much can be annoying to some and not posting enough can make your business forgettable.
here should you post?
Deciding which platforms to use can be a tough decision. The platforms you choose should match up with the audience you are targeting. For example, if you are targeting younger individuals you may choose Twitter or Instagram. For older audiences, Facebook might be a better choice. (Continued on page 59)
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DRIVING JULY 12-14, 2016
THE MIRAGE • LAS VEGAS What is Pawn Expo? Pawn Expo is the only national convention and trade show for the pawn industry. Attendees learn new ways to strengthen their businesses, connect with fellow pawnbrokers, and do business at the trade show featuring over 120 different companies. Leave energized and equipped with the latest industry knowledge.
SAVE $150
by July 1 with regular rates PAWNEXPO.COM
WHY SHOULD I ATTEND?
expert speakers
25
500+
pawnbrokers to connect with and learn from
16
120
exhibitors with products and services to improve your business
Questions? PawnExpo.com
education sessions
150
dollars in savings when you register by July 1
1
can’t-miss convention for the pawn industry
SUCCESS PAWN EXPO HIGHLIGHTS Trade Show
Networking Reception
Pawnbroker Peer Roundtables
Ask the Expert Sessions
Welcome Reception
Annual Membership Meeting
Opening Session Keynote
Closing Reception
Awards Luncheon
NPA PAC Event
WHAT’S NEW IN 2016? Two New CPP Courses Keynote Speaker Derek Daly, International Race Car Driver Keynote Speaker Garrison Wynn, Generational Differences Crucial Conversations and Crucial Accountability Sessions The Marketplace (formerly the Diamond District) New Product Knowledge Topic Questions? PawnExpo.com
DRIVE YOUR SUCCESS DEREK DALY
GARRISON WYNN
Complete Champion Culture: Driving to the Limits of Possibility
Generations Working Better Together
Explore the leap from good to great and from great to extraordinary with Derek Daly, international race car driver.
Discover why younger and older people don’t see eye to eye and what to do about it in the workplace.
LEA TURANO
JAMIE M. HASTY
Product Knowledge: Diamond Clarity Grading
2016 Employee Regulations: What Are We Required to Do?
Get an overview of GIA’s Clarity Grading System and practice evaluating the clarity of mounted diamonds.
Understand 2016 employee regulations and learn practical tips and guidelines to ensure you are in compliance.
MARVIN G. RICHARDSON
DOUG DAVIS
Electronic Record Keeping and ATF Form 4473
Ask the Expert: Law Enforcement’s Response to Numismatic Crimes
Learn about new rulings and changes to Form 4473 and its record keeping that may affect your business.
Learn how law enforcement responds to numismatic crime and how to minimize your losses to this type of crime.
CERTIFIED PAWN PROFESSIONAL COURSES Earn Your Designation
Get one step closer to earning your CPP certification. Additional registration required.
ecurity, Risk, and Crisis Management – S new course
Store Operations
Product Knowledge – new course
Marketing, Advertising, and Public Relations
Federal Regulations
Human Resources
THROUGH EDUCATION EDWARD BEAN
JUSTIN HALE
Understanding the Military Lending Act’s Expanded Regulations
Crucial Conversations and Crucial Accountability Gain insight into why people behave the way they do, and how you can respond to get the best outcome.
Learn what the expanded Military Lending Act Regulations will require of all pawnbrokers and their customers.
ADAM RALPH HARRIS
ROBERT FRIMET, CAMS
Product Knowledge: Luxury Watches - Luxury or Lie?
Pawnbrokers and Dealers in Precious Metals Compliance
Learn strategies to discern the difference between counterfeit and genuine wristwatches.
Learn about the compliance responsibilities of all pawnbrokers and dealers in precious metals.
KEVIN PROCHASKA Managing Your Inventory As a Return on Investment Understand how to better manage your inventory to maximize your store’s profitability.
RICHARD BENNETT
BRIAN SILLIMAN
Product Knowledge: Guitars and Stringed Instruments
Product Knowledge: Rare Coins Learn tips and tricks to protect yourself from counterfeit coins, and how to increase your profits.
Understand how to buy and sell musical instruments with confidence.
PAWNBROKER PEER ROUNDTABLES Take the opportunity to discuss current pawn topics with your peers and learn best practices from one another.
Unique Types of Collateral
Employee Incentives
Consignment
Creative Advertising Strategies
Transitioning to the Next Generation
Increasing Your Loan Base
Roundtables
Schedule of Events Monday, July 11
Tuesday, July 12
Wednesday, July 13
Thursday, July 14
8:30 am – 4:30 pm CPP Courses Additional Registration Required
8:00 am – 9:00 am Annual Membership Meeting and Breakfast
8:00 am – 11:00 am Education Sessions
9:00 am – 10:00 am Trade Show Continental Breakfast
6:00 pm – 7:30 pm Networking Reception
9:15 am – 10:30 am Opening Session 9:30 am – 5:30 pm The Marketplace 10:45 am – 12:00 pm Education Sessions 12:15 pm – 1:45 pm Awards Luncheon 2:00 pm – 4:15 pm Education Sessions
Schedule is subject to change
6:30 pm – 8:30 pm Welcome Reception
NPA PAC Event
11:15 am – 12:15 pm Pawnbroker Networking Luncheon
9:00 am – 1:00 pm Trade Show
11:15 am – 12:15 pm Young Professionals Luncheon
1:15 pm – 4:00 pm Pawnbroker Peer Roundtables
12:30 pm – 5:30 pm Trade Show
1:15 pm – 5:00 pm Product Knowledge Sessions
4:00 pm – 5:30 pm Trade Show Reception
5:30 pm – 7:00 pm Closing Reception
7:00 pm – 9:00 pm NPA PAC Event Additional Ticket Required
Sponsors
FEATURING JERSEY BOYS
Wednesday, July 13, 7:00 pm Don’t miss your chance to see Jersey Boys, at the NPA PAC Event at Pawn Expo. By contributing to the NPA PAC, you help shape the laws that influence your business and our industry, and best of all, you’ll spend a great evening with friends. Tickets are $250 each and include one ticket to the Jersey Boys performance plus a welcome gift at Pawn Expo 2016.
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PAWN EXPO PRESENTER
How to Get People to Do What You Want Them to Do IF THIS ARTICLE TITLE PULLED YOU IN,
maybe you’ve recently realized that having a better tactic or using your charisma is not producing the influence you would have hoped. You’ve read the leadership and negotiation books and you’ve witnessed some disturbing YouTube videos that appear to prove you no longer need talent or a point to be in front of a camera. However, depending on your age and situation, one or more of the following all-consuming problems still remain: your employees just can’t get the job done, your boss is a lowIQ narcissist, your parents think you actually want their life, your girlfriend is addicted to vampire books, your boyfriend is still a “skaterdude” at age 30, or your 22-year-old son has just told you,“I don’t, like, see myself as, like, working every day at a job and stuff.” Could it be that what works for others in the area of influence will not work for you? Over the years, Wynn Solutions (along with former Gallup researchers) has conducted anonymous surveys with thousands of extremely influential people who have a proven track record of motivating people to do what needs to be done. From them, we found the root of influence to be some foundational ideas that we often deem irrelevant. Here are those ideas: Are you proving to people that you see them as valuable? Have you told them that you appreciate their talent and could not have done so well without them? That’s very different from just saying “Good job!” And it’s not as ridiculous as saying, “You’ll have a job here as long as you want one,” which seems to indicate that they will definitely quit – it’s just a question of when.
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Garrison Wynn CEO Wynn Solutions
Garrison Wynn is a nationally known speaker and consultant, the author of The Real Truth About Success and co-author of The Cowbell Principle (both Amazon best-sellers), and CEO of Wynn Solutions. For more information, visit Garrisonwynn.com
Are you being sincere but emphatic with your adult child who still lives at home? These days, over 50 percent of all adults 18-26 years old live with their parents. So if you are in your 20s and living at home, it’s pretty close to normal. However, if you have an adult child still living at home, not making a contribution, wearing your bathrobe, and wanting to know when more food will be arriving, you need to be forthright. You might say something loving, but pointed, like: “The only way someone else will appreciate you as much as we do is if they see you as self-sufficient. You and your generation have more opportunities and greater knowledge than any other generation has ever had. So getting out on your own (which will in-
PAWN EXPO PRESENTER
volve leaving this house, by the way) will cause the good things in life to come your way.” Letting them stay too long sends the message “We love you so much that we’re willing to sacrifice your ability to be a functional adult.” Being 37 and still living at Mom and Dad’s house is more than just pathetic; it’s creepy. Do you have extreme clarity? Intelligence is not enough. It doesn’t matter how smart you are if no one knows what you’re talking about. The average IQ for an executive is 104, which is lower than the average for middle management. But if you think your boss is stupid, remember that he’s just smart enough to be your boss! If you’ve ever been to a Mensa meeting, you might have noticed a disturbing number of 35to 50-year-olds wearing backpacks and a lot of crummy cars in the parking lot. Intelligence is just a small part of influence. AS FOR TRIED-AND-TRUE SOLUTIONS, IT ALL COMES DOWN TO VALUE. 1. If you want to be influential, you must be
able to clearly state your value (or the
value of whatever you’re proposing). Clarity is the foundation of value. People buy into what they grasp quickly. The leading addiction on the planet is not drugs, alcohol, or video games. It’s convenience. We will abandon a complex process that works for a mediocre one that’s easy, but barely works. Simply stated, good ideas just aren’t good enough. Case in point: It took 40 years to get seatbelts in cars, but they green-lighted the Pet Rock at the first meeting. Spray cheese caught on pretty quickly too. We are influenced by things that sound good instantly, and nothing sounds better than what we seem to already believe. Making things very clear makes them familiar. When we hear something clearly stated, we will often say, “Oh, yes. That’s common sense.” But the truth is we did not think of it until it was very clearly stated. Clarity makes the stated value make sense. So if you think this paragraph has told you something that you already knew, then you are right and enlightened at the same time.
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PAWN EXPO PRESENTER
2. To influence people under 30 years old,
what you propose must make sense at a very basic level. This younger generation grew up with so much information thrown at them that you’ve got to be able to show them why you’re doing something. If it doesn’t make relevant sense to them today, they will question it and have difficulty taking action on it. If you want young people to come to work early, you need a real business reason – not just that you like to get to work at 7:30 a.m. and don’t particularly care for loneliness.
3. The key to getting people to do what you
want them to do is understanding what they value. In its clearest, simplest form, what they value is love, money, and prestige. If they can get that from you, they’re willing to listen and take action. Unfortunately, most people believe they need to outsmart others to get them to take action. So if you’re upset because you think the world is run by idiots – well, you might have a point. Most research shows that it’s easier to simplify things so you can compete. The truth is that when it comes to getting people to take action, in many cases, explaining your value is more valuable than actually having it.
4. It all comes down to engagement. You may
have heard the term “employee engagement” or “client/customer engagement” and just viewed it as corporate buzzword, but it’s the ultimate foundation of success. Engagement is what this article is really all about. You need real, personal influence to make it happen. It’s hard to be successful at your job if you think no one at work cares about you (especially your boss). It’s difficult to write a check to someone who does not value you as a person. So the key word that ties it all together is value. The way to make sure people see your value and are willing to make a decision that will benefit you is to show them that they are valued. Then you have a level of engage-
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ment; you also end up with a minimal amount of haters. There is always that one person who hates success, Christmas, pizza, vacation days, and money (your money, of course, not theirs). According to Evolve Performance Group, an organization run by former Gallup executives and researchers, engaged employees are 40 times more likely to say they would recommend their company as a great place to work, and 4.5 times more likely to recommend their company’s products and services. So not only is being influential the best way to get people to do what you want them to do; it’s something you have to do just to compete. The idea is to position yourself up front with all the influence tactics you can and then throw all your effort behind that. This strategy is central to a story I often tell about a speaking engagement I had at a convention years ago. My wife was in the audience for my event. She’d just heard me speak and she was clapping – yes, even after a few years together, she still applauded (maybe because I was through talking). In fact, she clapped so hard that she lost the diamond in her ring, but she didn’t know it at the time. So the next day she goes back and starts searching all along the 10,000-square-foot parquet floor. The custodians have already swept and mopped. Twice. Nothing has turned up. Everyone’s thinking, “Lady, you’re never going to find it.” But my wife insists, “I’m looking anyway.” So she’s on the ground, face to the floor, searching, searching… She’s sucking up dust bunnies for a full hour and a half before she spies a little glimmer from across the room. And there it is! In the end, we walked away with two big lessons. First, if something is important enough to you – if you believe in it enough – then the effort, skill, talent, and ability generated from your body and channeled into achievement is amazing. But also, if you buy a really BIG diamond, it’s a LOT easier to find.
YOUNG PROFESSIONALS
Gearing Up for Pawn Expo
YOUNG PROFESSIONALS PREPARE FOR ACTION-PACKED CONFERENCE I want to extend a big thank you to all of the Young Professionals who joined us at the 2016 NPA Legislative Conference on April 27 in Washington, DC. The conference is such a great opportunity for Young Professionals to network with their peers and to make the next generation of Kathleen Barbee, pawnbrokers known to those Young Professionals Committee Chair on Capitol Hill. Great job to all of those who attended and I hope to see the rest of you next year! Now that the Legislative Conference has wound down, we are gearing right back up for Pawn Expo. This year’s convention will be held at The Mirage in Las Vegas, July 12-14. Pawn Expo features three action-packed days filled with education sessions,
networking events, and a trade show featuring over 120 companies. There are also several can’t-miss events designed especially for YPs at this year’s Expo:
• Certified Pawn Professional (CPP) courses (This will be the first time all six courses are offered at the same place and time.) • Presentation of the Young Professional of the Year award • Young Professionals Luncheon • YP Happy Hour • General Session Keynote: “Generations Working Better Together” • Pawnbroker Peer Roundtable: “Transitioning to the Next Generation” If you haven’t already signed up, contact Marliss@NationalPawnbrokers.org for more information on the new Young Professionals Member Forum.
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COMMUNITY INVOLVEMENT
Guitar Hero Ibanez X Explorer Destroyer
HELP THIS GUITAR PLAYER FIND HIS HERO
A little kindness can go a long way and 30-year-old Arnold Nesis from Jerusalem can attest to that fact. About 15 years ago, Arnold was just a young boy with a dream of becoming a musician – a rock guitar player. When his parents didn’t support his dreams, Arnold went to eBay in hopes of finding someone nice enough to send him a guitar. He sent messages to guitar auctions that were about to end, saying, “I am a poor boy from Israel who needs a guitar. If you are not going to use this guitar and can’t sell it, please send it to me.” Arnold was not expecting someone to send him a guitar out of the kindness of their heart, but to his surprise, a man replied. He said, “Hi, I’m a Jew too. This is my present for you for Hanukkah.” Arnold is now a successful guitar player and composer for video games and films. He attributes some of his success to the gentleman who sent him his first guitar. “Looking back,” he says, “I honestly don’t know if I
would be a musician today if it weren’t for this guitar.” Now, Arnold would like to find the man who gave him the guitar and he is asking for your help. He has limited information, but is hoping what he does have will spark a memory with someone. 1. The guitar is an Ibanez X Explorer Destroyer made in 1983. 2. The man is roughly 50-55 years old and most likely from California. 3. The name “Bill Doran” is on the back of the guitar, but that is most likely a previous owner. 4. The man who sent the guitar is thought to be a pawnbroker.
If you have any information about the man or the guitar, contact Arnold at arnoldnesis@gmail.com.
BOOK CORNER
Mastery by Robert Greene Robert Greene, author of bestsellers such as The 48 Laws of Power and The Art of Seduction, has lured readers in once again with his fifth work, Mastery. In this highly anticipated book, Greene examines the lives of some of the world’s most notably successful people, such as Henry Ford, Mozart, and Charles Darwin, to determine what traits and universal ingredients made them “masters.” Greene establishes three main stages of becoming a master of your craft. Make sure the craft you wish to pursue is something you are unrelentingly passionate about and that you are willing to put in the time and work it takes to be successful. If you are ready for this challenge, then move to the first stage.
STAGE 1: APPRENTICESHIP During this stage, closely observe a current professional in the trade you wish to pursue. Develop skills, receive hands-on experience, and learn lessons that no text or how-to book will be able to teach. STAGE 2: CREATIVE/ACTIVE PHASE Take everything you learned from your apprenticeship and think of ways to elevate those skills. With a basic knowledge of the inner workings of the trade, put that knowledge to practice and gain the ability to experiment and be creative with how to execute the tasks of the trade. STAGE 3: THE GOAL - MASTERY Once you have mastered your craft, congratulate yourself, and get back to work. Mastery is never finished. You never know which level you can reach unless you continuously give it your all.
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BUSINESS SOLUTIONS
Should I Start a Blog? by Emmett Murphy, 3 CLiCK Media
BLOGGING HAS BEEN AROUND ALMOST AS LONG THE INTERNET. It’s a powerful
tool to attract customers to your website and to publish information online about your products or promotions. Potential customers can find your business while searching for services you offer online. One feature sets blogs apart from other websites. Rather than present a series of static webpages with content that rarely changes, blogs provide a continuous stream of fresh, relevant information. Webpages are dynamically generated each time a user logs onto the website. Blog websites have become a primary source for news, information, experience-sharing, and
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social issue advocating. Blogging platforms are integrated into most of the websites we interact with on a daily basis from news aggregation to e-commerce. They’ve been so effective that print media has witnessed a steady decline as blogs reach wider audiences around the globe. Pawnbrokers often wonder if, or why, a blog would be useful for their businesses. Here are a few tips that highlight the benefits of blogging: Increases Search Engine Ranking and Website Traffic Google gives preference to websites with everchanging, quality content. This means the more quality content you publish on a regular basis, the more likely your site will be to rank
BUSINESS SOLUTIONS high on results pages. Having your site appear on the first page of a Google search is the best way to increase the number of visitors. Tip: While Google’s algorithm for evaluating websites is not made entirely public, experts agree that blog posts should be around 300 words and focus on a specific keyword. If your goal is to rank for “platinum jewelry”, stick to your topic. If you find your blog post is wandering into related topics, stop, and save that information for another post. Try to use your keyword two or three times in your blog post, and include images with captions. Promotes Products and Events You probably carry rare musical instruments, vintage guitars, or even high-end handbags that customers are looking for. How will your customers know what’s in your store? A blog is the place to promote merchandise, instore events, and sales. These posts serve as a central source of content and can be used to create social media posts or email blasts. Most blogs allow plugins that automatically publish directly to your various social media accounts when you publish a new post on your site. Tip: Whether you’re running an online shopping website, or just posting about your products, customers want specifics! If your post features your selection of high-end handbags, don’t simply write that handbags are 30 percent off. List the brands you carry, with product details, features, and specs. Create a post for each handbag. Include a high resolution image that flatters the item and your business. Be sure to note the condition of the item if it is pre-owned, citing minor defects that a customer would like to know about up front. Most importantly, list the price and a phone number or call to action button that allows your customers to reach you directly and purchase the item.
Educates Consumers About the Pawn Industry Pawnbrokers often wonder how they can help educate and inform legislators, consumers, and law enforcement about the positive things pawnbrokers do every day to help their communities. Blogs are a fantastic way to keep an online record of musical instrument donations, various charitable gifts, and advocacy and awareness efforts. Whether you’re explaining the specifics of how pawns work in your state or simply sharing your personal experiences of helping customers and community members to increase awareness, a blog is key. Tip: If you have a story to tell, always be positive. Remember that potential customers will read your blog. The content should stay focused on sales, products, or events. Point out the ways you’ve helped people in emergencies or share your charitable efforts in the community. If your goal is to take to task local leaders, news agencies, or even former customers, you’re better off staying offline. This kind of “online whining” often places your business in a bad light and can often backfire. Blogs have enormous potential to help grow your business and attract new customers. If you’re unsure of where to start or if you’re not great with words, find a local writer or hire one online who can create regular blog posts for you. Remember to always focus on the positive!
Emmett Murphy is the New Media Strategist at 3 CLiCK Media. He handles all Public Relations for the National Pawnbrokers Association and has appeared frequently in the New York Times, Wall Street Journal, USA Today, and Time magazine on behalf of the NPA and the pawn industry. For more information, visit 3clickmediacom.
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Celebrate Life Together ANNIVERSARY AND ETERNITY BANDS Help your customers celebrate their special life moments with an anniversary or eternity band from Stuller. Our stunning and dynamic range of designs and price points offers an option for every shopper. Mix and match different styles, qualities, and colors to create an elegant, sophisticated statement.
Browse the full collection at Stuller.com/Bridal. Stuller.com 44
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How to Sell a Guitar WHEN YOU’RE NOT A GUITAR PLAYER SEVERAL YEARS AGO I WAS GIVEN THE OPPORTUNITY TO WORK PART-TIME AT A MUSIC STORE. The owner said, “I know you
are a drummer, but I want nothing to do with drums.” So I was left selling guitars in a guitar shop. The manager was not very helpful and I was left on my own to learn how to sell them. I picked up a few pointers on the language and, after that, I relied on plain old customer service. I sold a few guitars and then I sold a few more. I thought if I learned all the features, I could probably sell a whole lot of them. We had several manufacturers’ catalogs and I began taking them home, one at a time, researching the wood types, body shapes, and all of the appointments found on the guitars. Before long, I was offered a full-time position. Within a few short months, I was outselling the store manager and selling more high-end guitars than anyone else. One day an older gentleman came in to look at the Martin guitars. He had plenty of questions, but not a whole lot of words. I told him about the various wood types and the differences between a D28 and a D35. Then I remembered we had a D41 that stood out from all the other guitars. The back and sides were rosewood and the top had a very light-colored tight grain and a classylooking inlay. I handed him the Martin D41 after he had played the D35 and D28. He looked the guitar over and paused before playing. He started grinning and said, “This guitar sure is nice.” He strummed a few times, and I knew immediately there was no taking that guitar from him. He started asking ques-
tions and, all of a sudden, he was full of words. He was very excited about this guitar. A closing technique I had often used was to show the nice case that came with it. However, that was not necessary on this day because this guitar was now a part of him. He was the owner and I had yet to ring it up. The years of saving and the time spent wanting a guitar of this caliber had arrived. I was enjoying the experience almost as much as he was. Once again he paused and asked if I would be willing to play “his” guitar for him. I said, “I would love to, but I don’t play guitar.” I told him I was a drummer. He laughed out loud and said, “You mean I am buying a guitar this nice from someone who doesn’t even play?” I said, “Yes, you are.” After I brought the case out and put the guitar in it, he wasn’t moving. He was enjoying the experience. I sat back down and we talked about guitars, Engelmann spruce, and the difference in looks between the Indian Rosewood and Brazilian Rosewood. He had several more questions and I had answers for all them. He asked why I knew so much about guitars and I shared that being a drummer in a guitar shop meant I had to learn how to sell what I had. More than twenty years later, I am still selling guitars. I have sold almost every brand that you can name and have enjoyed the journey. Don’t be afraid if you don’t know how to play an instrument, but are asked to sell it. For me, it was guitars. For you, it could be jewelry, chainsaws, or how to identify a fake Rolex. There is a wealth of information at your fingertips and you can learn almost everything you want to know.
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PAWN EXPO PRESENTER (Continued from page 13)
described in other sections of the Act. This would negate the need to collect, check, and store the social security numbers of ALL pawn customers; otherwise, pawnbrokers will incur significantly greater and unrecoverable costs, retraining of employees, significant software changes, inconvenience to customers, etc.
when you compare our resources to the unlimited spending capabilities used by other trade groups. This is a testament to the hard work and dedication of Team GRC, the many NPA members across the country who step up to represent the independent pawnbroker, and the grassroots efforts put forth by our membership.
At the end of the day, we were gratified to hear from Legislative Conference attendees that this message was met with great acceptance on the Hill. Numerous offers of assistance and support were received from Senate and House offices. We are, of course, following up on all of these “open doors”. It is no understatement that these are terribly important times for the pawn industry on all levels. We have enjoyed many successes over the years, especially
I hope to see all of you in Las Vegas at Pawn Expo July 12-14, and encourage you to either purchase a ticket to the NPA PAC event during the convention, or make a generous donation in order to continue winning battles in Washington, DC. Please contact the NPA office to inquire about tickets to this fundraising event. Fran Bishop, NPA Government Relations Liaison NPA Past President
BUSINESS SOLUTIONS (Continued from page 29)
struggled to attract consumers, who now prefer to spend on electronic gadgets or luxury experiences. A growing awareness about synthetic diamonds as an alternative to natural diamonds is another glaring challenge. To meet such obstacles to growth, the industry reintroduced its generic marketing effort in time for last year’s Christmas shopping, with De Beers and Signet Jewelers leading the way. The Diamond Producers Association (DPA), which comprises the largest seven diamond miners, has been assigned the task of driving marketing and promotions in the years to come. The group revealed its 2016 campaign targeting Millennials at the Las Vegas show in June. The idea is to stimulate industry growth by increasing demand, rather than controlling supply. After all, even as the market improved so far in 2016, growth is being driven by fluctuating supply. To achieve sustainable growth would require a strong effort to stimulate demand across all regions.
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Tips for Pawnbrokers Operating in the Diamond Market • Understand your merchandise and break it down by shape, size, color, and clarity before selling. • Grade your larger and fine-quality diamonds at the GIA to achieve higher sales prices. • Sell your diamonds to reputable firms and get multiple offers. • Monitor your prices throughout the year. For more information about the diamond industry, visit diamonds.net.
The Rapaport Group is an international network of companies providing added value services that support the development of fair, transparent, competitive and efficient diamond and jewelry markets. Established in 1978, the Rapaport Price List is the primary source of diamond price and market information. Group activities include Rapaport Information Services, Rapaport Magazine, and Diamonds. net, providing research, analysis and news; RapNet – the world’s largest diamond trading network; Rapaport Laboratory Services provides GIA gemological services in India, Belgium and Israel; and Rapaport Trading and Auction Services specializing in recycled diamonds and jewelry. The Group supports over 20,000 clients in 121 countries and has offices in New York, Las Vegas, Antwerp, Ramat Gan, Mumbai, Surat, Dubai and Hong Kong.
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opportunity to get to know us.” When asked what advice he would give to other young pawnbrokers who are new to the industry, Colin replied, “Never stop learning. If something is broken, learn about it and try to fix it. You might make it worse, but sometimes learning what not to do is every bit as valuable as learning what you were supposed to do.” Colin also encourages others to take risks, learn from mistakes, and never be afraid to make the same mistakes again. He states, “This business can be as weird and exciting as you want it to be, but it’s entirely up to you.” Outside of pawnbroking, Colin tries to experience as much as possible in Kansas City with his friends and family. Whether it’s sports, music, or politics, he loves sharing conversation with people. Colin is a self-proclaimed story teller and says that being a pawnbroker has given him a lot of material, so he always looks forward to the next day at the store.
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MEMBER NEWS
Client Profile: Gems N’ Loans By Luis Rodríguez Martín
Mack Hembree (fourth from the left) with Gems N’ Loans employees.
Gems N’ Loans is a classic case study for why one can’t always judge a book (or, in this case, a business) by its cover. In 1993, Mack Hembree, a successful real estate businessman, was invited to invest in opening a business that he had some commonly held reservations about. The business was a pawn shop, and Mack made sure to do his homework on the industry before jumping into a 23-year journey building an excellent organization in the most unlikely of places. By fostering and aligning employee satisfaction, collaboration, and commitment at every level, Mack has developed an ownership culture that differentiates Gems N’ Loans from its peers and has been instrumental in the company’s success. The company’s growth from one location in Oceanside, Calif. to five shops and 46 employees is proof that this model has worked well. Considering that almost a quarter of households in the U.S. are unbanked or
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underbanked, pawn shops and pawn loans offer a necessary and legitimate service to economically challenged customers in need of relatively small, short-term loans. Their business model relies on developing and maintaining strong relationships with customers, both for the loans and for the retail operations. It can be surprising to see how broad the range of customer incomes can be, though in the end, the value of the pawn loan model is the speed and convenience with which one can gain short term liquidity. In spite of the value they provide, one of the biggest challenges in the pawn shop business is still public perception, and that’s something that Hembree has strived to reverse with his own brand of service at Gems N’ Loans. The first thing one notices when visiting any one of the five Gems N’ Loans locations is how clean and welcoming the stores feel - closer to a jewelry store than a typical pawn shop. Gems N’ Loans prides itself in creating a professional
SUMMER 2016
MEMBER NEWS and inviting environment, and also in being very selective about the items it carries. By policy, the stores will not buy or sell weapons or junk, and much of the higher-end jewelry that they sell is certified by the Gemological Institute of America. All locations stay open until 7 p.m., seven days a week, in order to offer their customers as much flexibility as they may need to access the products or services they require. Employees are exceptionally friendly, knowledgeable, and highly professional, which is all a reflection of the surprisingly rigorous process by which they are selected and trained. In a business that serves people who are often in less-than-ideal circumstances, having employees who can work well together and understand the customer’s needs is crucial. The employees, now part owners of the business, thanks to the employee stock ownership plan (ESOP) that was implemented in 2014, form the foundation of the company’s operation. Mack recognized this early on, and made sure that the people who joined the Gems N’ Loans team were carefully selected, trained, and incentivized. Before being granted an interview, applicants are screened through two highly respected tests - one to evaluate personality traits, and the other to identify professional strengths and weaknesses. If there appears to be a good fit, the applicants are then interviewed by the GM and oftentimes Mack himself. Joining the team is no walk in the park, as there is a 10-day trial apprenticeship, followed by a series of required tests and certifications in order to staff the floor. Once a person is admitted, they feel like they’re part of a family, and also get to share in the company’s success. All of this time and effort in recruitment reinforces Mack’s belief that outstanding customer service can only be delivered by the most capable, committed, and happy employees. Even before the ESOP was created, incentives such as the company-wide profit sharing helped ensure that everyone was appropriately motivated to seek the best interest of the entire business, and to do so in a collaborative way. Every year-end, all employees collaborate to exceed the previous year’s results, and often come up with unique ways to compete with
more traditional retailers. If they rise to the challenge, everyone can expect a generous yearend bonus and know that they earned it. The rest of the year, employees at Gems N’ Loans receive consistent praise and recognition for their efforts, ranging from weekly email “shoutouts” for exceptional performance, to birthday celebrations. Another event that boosts morale is the themed annual company party in January, usually hosted at an exclusive country club, complete with a DJ, costume photo booths, great food and drink. There’s a genuine feeling of camaraderie and family that permeates the work environment at Gems n’ Loans, and when Mack describes how he started planning for his eventual departure, he says “who else but [his employees] to take it forward? They are the business.” Deciding to move forward with an ESOP transaction wasn’t immediately obvious to Mack, but it didn’t take long for him to understand that this was the best win-win situation for himself and the organization he cared so much about. The Beyster Institute helped guide him and his company through the ins and outs of the transaction and its impact on the long-term future of the business. While there were obvious tax advantages for him, he felt that giving his people on the front lines of the business another way to win when the business wins was a perfect way to ensure that the organization was taken care of by those who understood it best. Irene Longoria, the Gems n’ Loans general manager, said that “now employees seem to have more conviction coming forward with their ideas for the company, often prefacing their opinions with ‘as an owner’. It’s really great.” People don’t always get to feel assured that their legacy will live on, but for Mack Hembree and the new owners of Gems N’ Loan, it’s likely that they will get to continue offering outstanding service to their customers for a long time to come. Reprinted, in part, with permission from the Beyster Institute. To read the article in its entirety, go to rady.ucsd.edu/beyster/media/ newsletter/2016/spring/client-profile-gems-n-loans/
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MEMBER NEWS
National Pawnbrokers Association New Members FEBRUARY 1, 2-16 - APRIL 30, 2016 PAWNBROKERS Alaska Hawk Shop • Fairbanks
Oregon Fast Cash Lebanon • Lebanon
Alabama Larry’s Pistol & Pawn Shop • Madison
Texas Sunbelt Jewelry & Loan • Spring Sunbelt Jewelry & Loan • Irving
Arkansas Treasure Island Pawn & Gun • Fort Smith Arizona Good Ole Tom’s – Broadway • Tucson Aztec Pawn • Phoenix
Virginia Crossroads Pawn • Falls Church King Kong Pawn • Manassas Rt 50 Gold & Jewelry Exchange • Falls Church Spotsylvania Gold & Pawn, Inc • Fredericksburg The Pawnshop (3 stores) • Roanoke The Pawnshop • Lynchburg Woodbridge Gold & Pawn • Woodbridge
California A & V Pawn Shop • Long Beach Florida Pawn Max 7 • Zephyrhills The Silver Mine • Fort Walton Beach
West Virginia Fast Financial Services LLC • Charles Town
Georgia Pawnopoly • Marietta Pawnopoly • Cumming Kentucky Double Action Gun & Pawn • Nicholasville Double Action Gun & Pawn • Frankfort Planet Pawn LLC • Berea Maryland Crazy Louie’s Pawn Shop • Fruitland Silver Spring Jewelry & Factory (2 stores) • Silver Spring Silver Spring Jewelry & Factory • Hyattsville Missouri PJ’s Pawn Plus • Saint Louis
Ohio South Euclid Pawn • South Euclid Oklahoma Chip’s Pawn • Tulsa
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INTERNATIONAL Australia Mega Cash • Doonside Mega Cash • St Marys Shop 4 • Mount Druitt Shop 45 • Emerton Mexico Mister Empeno (2 stores) • Queretaro
INDUSTRY PARTNERS
New York Southampton Jewelry Exchange • Southampton
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Utah Big Dog Pawn • Murray
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ARCA • Mebane, NC BB Jewels Inc • New York, NY Entrupy • New York, NY Pawns.com Inc • Northbrook, IL Paysouth Merchant Services • Columbus, GA Shri Diamond, Inc • New York, NY Teknon, Inc – Pawndex • Oklahoma City, OK XCaliber Auction Firearms LLC • Crowley, TX
SUMMER 2016
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Your
Full Service
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Pawn and Precious Metals Compliance IRS Compliance Audit Guidance Check Cashing and Payday Loan Turnkeys
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www.checkconsultants.com PAWNBROKER SPOTLIGHT (Continued from page 11)
NP: Why are you a member of NPA? BK: I believe the NPA is the most important
organization specific to our industry on a national level. Our efforts in Washington, DC, never seem to wane. It is also a great venue for networking with respectable pawnbrokers from all over the country. NPA members, staff, and associates have been, and continue to be, a gold mine for advice on anything pawn related. I utilize and cherish their input on a regular basis, and have done so for many years. NP: Tell us one thing about yourself that would surprise us. BK: If it is a sunny day and I have no prior commitments, I am likely out kayak fishing on one of the many waterways in WV. Paddling through ice this past January was an interesting challenge, but I love the adventure (and the retreat from the world of electronics)!
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STATE NEWS
State Association Updates STATE PAWN NEWS FROM ACROSS THE NATION CALIFORNIA
Kim Andosca, Executive Director California Pawnbrokers Association (CAPA) kandosca@amgroup.us
The first quarter of 2016 is finished and most of us in California are seeing sizable returns based on our 2015 Revenue Bill that was passed last year. Not only is gold up this year, but now we get a rate of return based on interest (9 percent - first 3 months, 3 percent thereafter for loans over $174). It certainly feels good to be able to loan any amount under $2,500 and feel good about the return. To think that CAPA was able to achieve increases in ALL areas of our loan portfolios is still, to this day, unbelievable. The CAPA team effort, led by CAPA Lobbyist, Bill Duplissea, and Legislative Chair, Jan Schneider, will certainly go down in the history books of CAPA as its most profitable legislation ever. The 2nd Annual Northern California CAPA Conference was another huge success. Members from around the state met across the street from our headquarters in Sacramento. With updates on everything from Operation Choke Point to the Department of Justice (DoJ) database implementation, our members were again exposed to educational opportunities as well as networking time with our vendors. CAPA will host its 60th Annual Convention and Exposition in Riverside, CA, October 28-30, 2016. We’d love to see pawnbrokers from around the country join us. Details will be posted by June 1 on our website, californiapawnbrokers.org.
DELAWARE Scott Paulsen
scott@ peninsulapawn.com
recommended setting up the association as a 501(c)(6). I have a meeting on April 20, 2016, with my accountant to do this. After that, we will have the first meeting to call officers, set our mission and vision statements, and requirements for admission. I will keep you up-to-date as we progress through this process.
INDIANA
Greg Engstrom, President Indiana Pawnbrokers Association gregengstrom@ hotmail.com
Indiana is having a great season legislatively. The Indiana legislators and pawnbrokers are seeing eye-to-eye and there is much more respect and understanding of what pawnbrokers are doing for the residents of Indiana. But, as you know, this is not easily done. Just this year, a new change positively affects pawnbrokers (and other businesses). Gold and silver bullion and coins will be exempt from state sales tax. This will allow pawnbrokers to bring this activity to a new level and bring in a higher income clientele. This next year we are nearly assured a hearing on the issue of not being able to pawn handguns, a topic that has been on our hit list for over 20 years. We are behind our neighbors in this regulation which was put in place at the time of the Great Depression and involves a hot topic. When a handgun is pawned, it is safe, secure, away from desperate hands, recorded, will only go back to someone who is allowed to have it, and has a solid paper trail of where it has been, and where it is now. The Midwest Pawn Convention celebrated 25 years in Louisville, KY. We look forward to Nashville in May 2017.
After doing research, Delaware does not have a different category for nonprofit corporations. Other state presidents
SUMMER 2016
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STATE NEWS MISSOURI
and continuing education seminars.
Missouri Pawnbrokers Association (MPBA) rob@pawncenter.com
We discussed current events throughout the state including previously-implemented “policies” by some cities to circumvent the Ohio Pawnbrokers Act by threatening licensees with criminal charges if they failed to comply with unlawful orders to return allegedly stolen items.
Rob Lauer, Government Relations
This has been a busy legislative session for Missouri with two bills directed at pawnbrokers. The first bill would make it a class A or B misdemeanor for a pawnbroker convicted of violating the current statute. The bill would also reduce the penalty to a class D felony for a law enforcement officer found guilty of gaining private party information improperly. When I explained to the filing Representative that the statute currently had harsher penalties, including loss of license, he agreed to not push the bill. A second bill would forbid pawnbrokers from buying or selling gift cards. This bill addressed only pawnbrokers, and when I mentioned it appeared to be discriminatory, the Representative agreed to drop it for this session and reintroduce it next year. The difference next session will be that it will forbid ALL businesses from buying and selling gift cards and it will not be in our statute. Pawnbrokers will be allowed to issue gift cards, which would not have been allowed in the current text of this bill. The current legislative session ends May 13, so unless something unforeseen happens, there will be no change to our statute. It has been 14 years since we have had any changes to our statute thanks to our lobbyists. Missouri pawnbrokers who are not members of the MPBA should consider that fact when they choose not to join the state association. The two bills introduced this session are reminders of what can happen if legislators are left un-checked.
OHIO
Lou Tansky, President Ohio Pawnbrokers Association lou@unclebenspawnshop. com
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Also discussed at our membership meeting was Senate Bill 270 which is a partial revision of the Ohio Revised Code Chapter 4727, the Ohio Pawnbrokers Act. The proposed changes include: • Clarifying the definition of a pawnbroker and preventing illegal buy-back operations • Increasing the rate by one percent along with an increase in the storage fee • Eliminating irrelevant fees while imposing modest increases to the permissive fees that are relative to the daily transactions of the pawnbroker • Adding an additional month to the loan period • Permitting a pledger to prepay their current month’s fees at any time other than the origination of the loan • Allowing a pledger to redeem a loan any time after the loan has been made • Protections for the pawnbroker from unlawful search and seizures, the privacy of their customer’s personal information, and the confidential business records of the pawnbroker We are hopeful that SB270 will move fairly quickly through the hearings process and be presented for a vote in the Senate in short order.
On April 3, 2016, the Ohio Pawnbrokers Association (OPA) held its membership meeting
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As you are aware, a procedure is in place by which those persons claiming their stolen items are in a licensee’s possession may acquire them. We have, however, heard from many licensees who have been confronted by victims or law enforcement who do not understand the Ohio Pawnbrokers Act or choose to ignore it. If you are confronted with a situation where law enforcement is not aware of the procedures in place to return allegedly stolen items, please contact me or one of our officers for guidance.
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BUSINESS SOLUTIONS (Continued from page 26)
FACTS ABOUT THE EMV TRANSITION
the banks have complied, the merchants need to make sure their terminals also have the latest encryption software. This has to happen regardless of what type of POS hardware you have (Verifone Vx520 or an Ingenico ICT 220/250). Ask your processor if you have the updated encryption software. WHAT YOU NEED TO KNOW ABOUT YOUR LIABILITY The liability for a fraudulent card transaction is now spread between banks and merchants. If the fraudulent transaction occurs at a merchant that has not switched to EMV, then the merchant is completely liable for all costs associated with the fraud. If the card did not have a chip, then the bank that issued the card is liable. Although merchants have had an EMV deadline, many cardholders have yet to receive updated, EMV-enabled versions of their credit cards. This isn’t something merchants have to worry about, however, as long as they have already made the switch. Having implemented EMV technology also has the added benefit of zero liability for swiped purchases.
•
Approximately 240 million Visa chip cards have been issued as of February 2016.
•
According to MasterCard, 59 percent of U.S. issued consumer cards have EMV chips as of December 31.
•
Only 25 percent of U.S. debit cards were issued as EMV cards by the end of 2015, and according to Mercator Advisory Group’s Sarah Grotta, that rate is expected to only hit 50 percent by the end of 2016.
•
There are now more chip cards in the U.S. than any other country that supports EMV technology.
Contact Jerry Coyne (jcoyne@paysouth.com) to get your quote. For more information about the Paysouth Merchant Services program, visit Paysouth.com/partners/npa.
STATE NEWS SOUTH CAROLINA
it. After receiving a unanimous vote in the House to support the bill earlier this year, it moved to the Senate where its fate currently lies. We received initial favorable reports in a Senate Labor, Commerce, and Industry subcommittee and in full committee, so we continue advocating the bill’s passage on the Senate floor.
Jay Friedman, President
South Carolina Pawnbrokers’ Association bondedloan@gmail.com
The South Carolina Pawnbrokers’ Association’s main focus is our new pawnbrokers’ legislation. According to the administrator of the South Carolina Department of Consumer Affairs, the agency that regulates the state’s pawn industry, discussions began in 2007 to reform the state’s pawn laws. In early 2014, after countless meetings and discussions between the South Carolina Pawnbrokers’ Association’s executive committee, its lobbying team, senior staff, and administration with the Department of Consumer Affairs, we finally had a piece of legislation that both sides could support and, more importantly, would revise regulation of our business to reflect modern times. We ran out of time to get it passed, but we reintroduced it last year and have continued pursuing
In an unusual twist, the concerns and objections to the legislation came from senators who believe that the bill is still too restrictive. Although we agree with their points, as we told them, this bill was carefully crafted as a compromise that both the regulated industry and the regulating agency can support. South Carolina’s state motto, “Dum spiro spero” means “While I breathe, I hope.” Our hope is that these senators who are so supportive of the pawn industry will not allow their objections to these restrictions to become impediments to the legislation’s passage. We hope that we can become more competitive with neighboring states and continue thriving as an important component of the state’s economy.
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PAWNDER THIS
Relax – Just Yo(ga) With the Flow By Rudy J. Klancnik
HAVE YOU EVER HAD A MEAN CUSTOMER who makes you crazy every time you see him walk into the store? No matter how happy your greeting, no matter how nice a day it happens to be, this fella is just a mean cuss.
much body odor going on there. But alas, there’s hope out there. We all know deep down that we really don’t have to be mean to get ahead in life.
Mean seems to work quite nicely for some. Steve Here’s one man’s instructional Jobs was perhaps our generation’s greatest guide to a happier place: trendsetter. He was also notoriously the meanest of • Take up yoga. If you feel stupid taking up yoga, mean bosses. Barry Bonds was one of the greatest definitely take up some sort of exercise that hitters in baseball history, perhaps the very best. He makes you sweat. A lot. also was routinely mean to the media, his teammates, his coaches, and innocent kids asking for autographs. • Read a book. No, not on your iPad. Read an Both Martha Stewart and Oprah are epically mean actual old-school book. Just steer clear of to their underlings. biographies on serial killers or dictators. Sadly, we don’t have to look very hard to see mean in our daily lives either. Jump in your car during rush hour and you’ll get enough mean in an hour to last you a lifetime. Like the classic George Carlin line says: “The people going slower than you are morons, and the people you’re passing are idiots.” It’s no wonder yoga is so popular these days. People need to relax, stretch out, and focus on something other than the meanness that pollutes the air. When it comes to the meanest cities in America, the usual suspects show up early and often. Yes, New York, Boston, Los Angeles, and the garden spot of Newark, New Jersey are always ranked in the Top 10. And, as a frequent visitor to all four, I don’t think those folks will ever fall off the list. Just way too many people, way too much attitude, and way too
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• Subscribe to a magazine focused on something you know very little about . . . like model trains or mountain biking or celebrity horoscopes. It’ll teach you something new and give you a reason to be happy about opening your mailbox. • Watch the Golden State Warriors. Those guys play basketball as if they actually enjoy playing it. • Never, ever watch the Dallas Cowboys. Those guys play football as if they’re playing for an insane owner who would rather put a Victoria’s Secret in his stadium instead of focusing on improving his team. Yes, I’m a bitter, bitter Cowboys fan. • Eat an ice cream sandwich once a week. If
SOCIAL MEDIA (Continued from page 29)
W
hy are you using social media?
H
Social media provides an opportunity to connect with your customers and colleagues -- the best part? It doesn’t cost you a thing. But just like anything else regarding your business, using social media must be purpose-driven. It is vital to outline why you are here and what you plan to do.
ow will you connect with your audience?
Now that you have your 5 W’s, it is time to determine how you will put your plan into action. There are many ways to engage your audience on social media but it is up to you to decide what your audience will respond to best. You can make a hashtag campaign, have a contest or giveaway, write a blog, and much more. Adopting social media into your everyday routine can be an intimidating task, but if implemented correctly, it could do wonders for your business. Remember to show your audience what you’re all about and keep on trekking. Happy posting!
The NPA would like to see our members be more involved on social media, so starting in June 2016, we will be beginning a hashtag campaign of our own. We will post a different hashtag once a week and we encourage our members to join in the fun. Below is the list of recurring hashtags that you can see on our page. Be sure to tag your pictures using these hashtags so that we may see what you post. #PawnTipTuesday • First Tuesday of every month • Get a tip on running a pawn store from an NPA pawnbroker member #NPAWisdomWednesdsay • Second Wednesday of every month • Receive a bit of wisdom from a member #Pawnshoptbt • Third Thursday of every month • Tbt=throwback Thursday. See an old photo involving pawnbroking or NPA members #NPAFunFactFriday • Fourth Friday of every month • Learn a fun fact about the industry
PAWNDER THIS there’s a more genius creation in the history of food, I don’t know what it is. • Check your iPhone at the door when you get home from work. Yes, actually talk to your kids. I know, I know. That’s crazy. Of course, you’ll have to commandeer their iPhone, iPad, and other iStuff as well for this particular plan to work. • Pay it forward at Starbucks or the toll plaza tomorrow. The only thing better than buying some stranger’s cup of overpriced coffee is randomly having some stranger buy one for you. It will make you feel like humanity isn’t on the brink of destruction after all. • Treat your spouse like you’re on your first date no matter how long you’ve been together. There’s nothing more depressing than watching an old married couple sitting at Chili’s not talking because they’ve run out of things to talk about.
• Be nice to anyone who serves you anything, anywhere. That means the valet guy, the waiter who brought you sweet tea instead of unsweetened, the gate agent who couldn’t find your reservation in a hurry, or the hotel clerk who pronounces your name wrong. If you go into those relationships thinking these folks are actually trying to do a good job, you’ll give them the break they deserve. OK, that should do the trick. Feel happier already, don’t you? Come on, admit it! You’re cracking a smile and starting to relax. You might even go to yoga class tonight. Well, maybe not. Rudy J. Klancnik writes for fun, sells stuff for a living, and cheers for any team playing Ohio State or the Yankees.
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CALENDAR OF EVENTS
INDEX OF ADVERTISERS ADVERTISER Page
ADVERTISER Page
July 2016
3 CLiCK Media (212) 365-0691 3CliCKMedia.com
JULY 12-14, 2016
Aagam Creation LLC (248) 961-0506
Marshall & Sterling Insurance 8 (800) 333-3766, x-5550 marshallsterling.com
PAWN EXPO 2016
The Mirage Hotel & Casino Las Vegas, NV PawnExpo.com Contact Lindsay Wilson: PawnExpo@ NationalPawnbrokers.org
49
3
Bluestone Trading Company Inc Back Cover (888) 800-BLUE (2583) bluestone-trading.com Bravo Pawn Systems (888) 407-6287 bravopawnsystems.com
October 2016 TEXAS ASSOCIATION OF PAWNBROKERS CONVENTION
OCTOBER 22-24, 2016 Embassy Suites, DFW North Outdoor World Grapevine, TX Contact Peggy Roden: TAP@rmaworldwide.com
40
Burrell Printing (800) 531-5234 burrellprinting.com
13
22
The Buyers (562) 945-7276 thebuyers.com
17
Rapaport Auctions (212) 354-9800 rapaportauctions.com
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Dillon Gage (888) 436-3489 dillongage.com
8
RMF Consulting Group (866) 204-7209 checkconsultants.com Stallcup Group (817) 479-3880 stallcupgroup.com
19
Stuller, Inc (800) 877-7777 stuller.com
44
The Trendz (866) 337-7464 thetrendz.biz
10
Geib Refining (800) 228-4653 geibrefining.com
OCTOBER 28-30, 2016 Riverside, CA Contact Kim Andosca: Kandosca@amgroup.us
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Gemological Institute of America 39 (800) 421-7250 gia.edu
March 2017
Hi-Tech Precious Metals & Refinery 46 (866) 950-7528 hitechPMR.com
MARCH 10-12, 2017
Hoover & Strong (800) 759-9997, ext 164 hooverandstrong.com
DIXIE CONFERENCE AND TRADE SHOW
Perdido Beach Resort Orange Beach, AL Contact Rosemary Hipps: Larrysjp@comcast.net
Padmavati Exports 28 (212) 869-0544 padmavatiexportsinc.com Paysouth Merchant Services 27 (617) 578-9444 paysouth.com/partners/npa
Garrett Metal Detectors 49 (800) 527-4011 garrett.com
CALIFORNIA PAWNBROKERS ASSOCIATION CONVENTION
North American Metals 13 (800) 773-1626 northamericanmetals.com
35
International Gemological Institute Inside Front Cover igionline.com
United Precious Metal Refining Co (800) 999-FINE (3463) unitedpmr.com
14
Wexler Insurance Agency Inside Back Cover (800) 432-1853 wexlerinsurance.com White Pine Trading (646) 666-7588 whitepinediamonds.com Worldwide Diamond (213) 622-2191 wwwdiamond.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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SUMMER 2016
WEXLER INSURANCE AGENCY, INC.
INSURING
PAWNBROKERS
SINCE 1968
The Best Coverage at Competitive Prices Available Coverages: v Pawned & Owned Jewelry & Guns
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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 SUMMER 2016 | NATIONAL PAWNBROKERS ASSOCIATION | 61
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