National Pawnbroker Spring 2015 by National Pawnbrokers Association

Official Publication of the National Pawnbrokers Association

SPRING 2015

Get Ready for

Pawn Expo

Planning for a

SUCCESSFUL Trade Show

SUCCESS

NETWORKING

INNOVATION

EDUCATION

TRENDS

2015!

Selling Your Diamonds

Tips from a buyer and a seller

New Money, New Challenges Dealing with digital currency

1 | NATIONAL PAWNBROKERS ASSOCIATION | WINTER 2015

MESSAGE FROM THE PRESIDENT

Thank You and a Challenge

Ben Levinson NPA President

THEY SAY, “TIME FLIES WHEN YOU ARE HAVING FUN,” and they are right. It is hard to believe it has been almost two years since I took over the reins as President of the NPA. There are so many people that I must thank, beginning with our superb staff in Keller, TX. Dana Meinecke, our Executive Director, has put together a group of dedicated individuals who keep our association current and relevant to the industry. Under Dana’s devoted leadership, our association continues to grow in the professional manner that it should. Thank you, Dana and Staff! I have been privileged to work with a Board of Directors and Officers that are some of the most dedicated pawnbrokers to serve in their positions. These are volunteers who have stepped up in times of need to help our association prosper. They are all generous givers of time, money, and expertise to assist pawnbrokers nationwide. I appreciate all of you. Thank you! Advocacy on behalf of our membership is the number one responsibility of the NPA. We have a committed and admirable group of pawnbrokers and consultants who we recognize as “Team GRC.” Our Legislative Liaison, Fran Bishop, our Regulatory Counsel, Sarah Jane Hughes, and our Lobbyist, Cliff Andrews, are integral and talented parts of this team. Team GRC literally works for our industry twenty-four hours a day. Thank you! I have been asked what has made me most proud during my tenure as president. Two items come to mind, both of which have been very important to me. The first is the NPA’s work in protecting our industry from those who do not really understand what we do. With the support of Team GRC, we have sent out numerous letters, and our representatives have had face-to-face meetings with governmental agencies to explain who we are, what we do, and why we are different. We have worked hard to communicate that we give non-recourse, small dollar cash loans to individuals in their time of need. We are there to help our customers whenever they need us. The second item is our new CPP program which will serve to further professionalize our industry. As this program develops, I can envision the CPP designation becoming a threshold for pawnbrokers, much like distinguished designations used in other industries. The CPP program is another measure that we can use to finally stamp out the unearned stigma that has shadowed the pawn industry in the past. I leave you with a challenge. I would ask that each and every NPA member go out and recruit one new member this year. There is absolutely no logical reason that a pawnbroker should not be a member of the NPA. We keep each other in business! Lastly, thank you to all of our members for your support of this fine organization. Without you, there would be no NPA. Respectfully, Ben

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 1

Table of Contents Raising the Bar

COVER STORY

What is Pawn Expo?

Make money at Pawn Expo. Bring your diamonds to sell in the privacy of the secure Diamond District trading room. Here you can negotiate the best deal with any vendor you choose. No appointments required.

SUCCESS

NETWORKING

INNOVATION

EDUCATION

Awards Luncheon

Get Ready for Pawn Expo 2015! Page 34

Diamond District

TRENDS

Pawnbroker Peer Roundtables

Trade Show

Closing Reception

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.

po.com PawnEx

Opening Session Keynote

Welcome Reception Annual Membership Meeting

THE MIRAGE | LAS VEGAS

by May with early bird rates

Contributors for this issue of National Pawnbroker

Pawn Expo Highlights Networking Reception

JULY 7-9, 2015

Save $200 22

SPRING 2015

Ask the Expert Sessions

NPA PAC Event

What’s New in 2015? CPP Courses

The Ritz-Carlton Education Sessions Young Professionals Luncheon

Why Should I Attend? STRENGTHEN YOUR NETWORK Connect with the best and brightest in your field, and remember, they want to connect with you too. Your most important resource could be the person sitting next to you.

ENHANCE YOUR KNOWLEDGE Take advantage of all the education sessions, from keynote speakers to peer roundtables, product knowledge sessions, ask the expert opportunities, and much more. You’ll gain knowledge to help you make your business better.

International Coffee Connection

STAY CURRENT WITH TRENDS Get up-to-date on the latest industry news, see what new products are entering the market, and find the newest tools available to help you in your business.

GET INSPIRED With so much passion and energy for the pawn industry in one place, you can’t help but be inspired by everyone around you. Whether it’s hearing lessons learned, being introduced to a new idea, or fueling your passion for pawn, you’ll gain something valuable.

BE YOUR BEST SELF Relax, be yourself, and take the time to get to know the other attendees at the convention. Most importantly, let them get to know you. You never know, your next business partner or mentor could be just a handshake away.

Questions? (888) 808-7296 • PawnExpo.com

Pawnbroker Networking Luncheon

Roger Creet

Hands-On Product Knowledge Sessions

Questions? (888) 808-7296 • PawnExpo.com

Robert Frimet RMF Consulting Group, Inc

HIGHLIGHTS The Exhibitor’s Guide to a Successful Trade Show Page 10 Certified Pawn Professional Courses

Rudy Klancnik Lindy Matula Hallmark Research Institute

Page 24

New Money/New Challenges: Dealing with Digital Currency

Eric Mor Abe Mor Diamond Cutters & Co

Page 27

Joseph Murray First Financial Group

IN THIS ISSUE Message from the President

Member News

Message from the Executive Director 4

New NPA Members

Government Relations Update

State Association News

Community Involvement

Business Sense

Never Give Up: The story of Roger Creet

Creating Store Lighting Excellence 16

Where Are They Now? 41

Pawnbroker Spotlight

Big Rock Trading Post 9

Young Pawnbrokers to Watch

Josh and Adam Davis 14

Industry Partner Spotlight

CompuPawn 19

Membership Make it a Date. Participate

ow to Make a Conference H Pay for Itself

iamonds Are Forever: Tips D to get the best deal

Pawn Expo Presenter

Is Your Business You-Proof?

Imperial Russia and the Zolotnik System

30 58

Index of Advertisers

Pawnder This

Calendar of Events

Danusia Niklewicz Hallmark Research Institute David Schoeneman Shane’s – The Pawn Shop Herb Schottland Store Design and Fixturing Andrew Starfield First Financial Group William Whetstone Hallmark Research Institute

National Pawnbroker is the official publication of the National Pawnbrokers Association (NPA), and is published quarterly. No part of this publication may be reproduced without the written consent of Dana Meinecke, NPA Executive Director. Sale or distribution of any or all of the contents of this magazine is prohibited. All rights reserved. For more information on advertising or to obtain additional copies of National Pawnbroker, call (817) 337-8830 or send an email to Margie@NationalPawnbrokers.org. For membership information, email Helen@NationalPawnbrokers.org. EDITOR’S NOTE: This publication is designed to provide accurate and authoritative information on the subject matter covered. It is provided and disseminated with the understanding that the publisher is not engaged in rendering legal or other professional services. If legal advice is required, the services of a competent professional should be sought. © 2007-15 National Pawnbrokers Association: PO Box 508, Keller, TX 76244 • (817) 337-8830 •NationalPawnbrokers.org EDITOR: Margie Swoyer, Director of Communications & Marketing, Margie@NationalPawnbrokers.org DESIGNER: Kim Baker

2 | NATIONAL PAWNBROKERS ASSOCIATION | SPRING 2015

WINTER 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 3

MESSAGE FROM THE EXECUTIVE DIRECTOR

Same Venue, New Menu YES, IT’S TRUE. Pawn Expo 2015 is

returning to The Mirage Hotel in Las Vegas again this year, but…we have a whole new menu of exciting speakers, breakout sessions, and programs for you to consider. Your plate will be overflowing with receptions, luncheons, industry experts, educational classes, and of course, trade show aisles filled with products to fill your every pawn-related whim. New this year will be the Certified Dana Meinecke, NPA Executive Pawn Professional (CPP) courses, The Director Ritz-Carlton Leadership Center education sessions, a Young Professionals luncheon, International Coffee Connection, Hands-On Product Knowledge sessions, and a Pawnbroker Networking luncheon. New speakers include: • Herb Schottland, Store Design and Fixturing Look for Part 2 of his 3-part series on retail store design and layout on page 16. • Joseph Murray and Andrew Starfield, First Financial Group Read their article on how to make your business survive without you on page 30. • Jamie Hasty, SESCO Management Consultants Attend Jamie’s session to learn how to stay OSHA compliant. Get all the details on these and other Pawn Expo sessions on page 34. If you haven’t registered yet, there’s still time to get the early bird rate until May 22. Visit PawnExpo.com to register. I want to extend a huge thank you to all our sponsors whose generous support helps make Pawn Expo a spectacular event year after year. Your sponsorship dollars allow the NPA to fulfill its mission of educating and mentoring pawn professionals. I also want to thank Ben Levinson for his leadership and support during his tenure as NPA President. I appreciate his dedication to the association and helping advance its vision of providing resources to enhance and support the independent pawnbroker. We look forward to continuing to build on the successes of the past two years for an even stronger organization. Don’t forget to register for Pawn Expo 2015. Come see us in Las Vegas!

4 | NATIONAL PAWNBROKERS ASSOCIATION | SPRING 2015

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

Matthew Church Government Relations Administrator Matthew@ NationalPawnbrokers.org

Terri Congleton Administrative Assistant Terri@NationalPawnbrokers.org

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

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WINTER 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 5

GOVERNMENT RELATIONS

Fighting the Fight for You KEEPING CONGRESS INFORMED

I FEEL CONFIDENT TO SPEAK FOR ALL in bidding

a goodbye to winter and a cheerful welcome to spring. Yes, the seasons change, but one thing remains constant…. our resolve to keep moving the industry forward for independent pawnbrokers and our customers all across the country. In many states, spring brings a new legislative session. Electronic reporting is once again a popular topic as we see a variety of bills being filed coast to coast. From Hawaii to New York City, state and local ordinances are being proposed which require more work and expense for the pawnbroker and less financial privacy for our customers. As the only financial institution required to report customer’s personally identifiable information to local law enforcement agencies or through their third-party, forprofit database contractors, pawnbrokers are placed in the crosshairs of potential liability issues like never before. This makes our job representing pawnbrokers’ rights in Washington, DC, all the more important, and we continue to look for a proper legislative opportunity to protect our customers’ right to financial privacy. The NPA continues to make the distinction to members of

Congress between our main street independent pawnbroker members and the publicly traded companies. These Wall Streettraded businesses delve into numerous products other than pawn, and are drawing scrutiny from the Consumer Financial Protection Bureau (CFPB) and, in some cases, sanctions and hefty fines. These companies are working overtime in an effort to convince these same members of Congress that there is a shortage of small dollar, short term credit. We must be vigilant and remember that when speaking about our traditional pawn industry story and background, we are certain to distinguish ourselves from other credit providers. 2015 LEGISLATIVE CONFERENCE

On April 29, at the 2015 Legislative Conference, over 50 pawnbrokers from across the country descended upon Washington, DC, visiting their respective members of Congress. They shared our story in an attempt to preserve the businesses we all rely upon to support our families and employees, and serve our customers. There is no better representative of the pawn industry than you, the independent pawnbroker. It is always great to see the

6 | NATIONAL PAWNBROKERS ASSOCIATION | SPRING 2015

Tim Collier NPA GRC Chair

support we receive while in our nation’s capital. The day began with a breakfast and a presentation from Rep. Mick Mulvaney, (R-SD 5), who served on the Financial Services Committee. The Government Relations Committee (GRC) then provided a briefing to cover the issues we would be going over with our Congressional Representatives and their various staff members. Then, our determined band of pawnbrokers divided into groups, and with NPA info packets in hand, headed off to the Hill for appointments with their respective Senators and Representatives. Their mission…….to educate about what pawnbrokers do every day and how we accomplish it. At mid-day, we hosted a luncheon (at Charlie Palmer’s) for Senator Pat Toomey from Pennsylvania, who sits on the Senate Banking Committee and is Chairman of the Subcommittee on Financial Institutions and Consumer Protection. Once our Hill visits were concluded for the day, a

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BUSINESS SENSE reception was held at the Capitol Hill Club for Chief Deputy Whip Patrick McHenry from North Carolina, Vice Chairman on the Financial Services Committee. Among the many issues discussed with our members of Congress was Operation Choke Point, which has affected many NPA pawnbroker members’ longstanding banking relationships. We also covered the Department of Defense proposed expansion of the Military Lending Act, which would require a 36% annual rate cap on nearly every type of financial service offering to active duty military personnel. Both issues are critical to the future of independent pawnbrokers and how we run our businesses on a daily basis. We stressed,

to anyone who would listen, the importance of banking relationships to pawnbrokers and what a negative effect it has when you are told, “We don’t want your banking business any longer.” Equally important is the Department of Defense rate cap proposal, which would seriously curtail the offering of our non-recourse, traditional pawn transactions to active duty military personnel and their families. As you can tell, these are terribly important times for the pawn industry on all levels - local, state, and national. We are proud of our successes over the years, especially when you compare our resources to those used by other trade groups with unlimited spending capabilities. This is simply a testimony to

the hard work and dedication of the NPA Government Relations Committee and its many members who always come to the front to represent the independent pawnbroker, and the grass roots efforts put forth by our NPA membership. NPA PAC EVENT

I hope to see all of you at Pawn Expo in Las Vegas and encourage you to purchase a ticket to the NPA PAC event featuring Cirque Du Soleil’s Mystere on Wednesday evening, July 8. You may also make a generous donation in order to continue winning battles in Washington, DC. For information about the PAC event, contact Matthew Church at Matthew@ NationalPawnbrokers.org.

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 7

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8 | NATIONAL PAWNBROKERS ASSOCIATION | WINTER 2015

PAWNBROKER SPOTLIGHT

The Spirit of the Southwest BIG ROCK TRADING POST

BIG ROCK TRADING POST, located in Fruitland,

NM, has been a member of NPA since 1989. According to owner, Charles Dickens (no relation to the well-known author), 90% of their business is from Navajo Indians as their pawn store is located very near to the Navajo reservation in northwestern New Mexico. NATIONAL PAWNBROKER (NP): Tell us about

your background. How long have you been a pawnbroker? CHARLES DICKENS (CD): Since 1973

NP: How did you get started? CD: My parents bought an old business that had

a one room shop and opened the trading post. I bought in with them before it was a pawn shop, although pawn has always been part of trading posts in this area. NP: How long has your store been in business? CD: We have been in business since 1968.

NP: How does a pawn store in New Mexico dif-

fer from pawn stores across the country? CD: In our area, pawn started out as more of a banking system. Pawn shops are used for storage, quick cash or small loans, and safe keeping. We have many repeat customers who trust us with their personal belongings and we very much want them to keep picking up their items and bringing them back. In New Mexico, we are heavily regulated on interest and fees by the state which makes it more affordable for our clients. NP: How did you come up with your

store name? CD: Big Rock was the name of the store when we purchased it in 1968, originally a rock shop that burned down across the road from a large bluff. There was not much out here in 1968, other than the rocks, and they don’t do much. NP: How do you keep on top of all the business

Big Rock Trading Post staff (from left to right): Traere Dickens—Operations, John Beshara—Manager, Sharon Dickens—Owner/Vice President, Charles Dickens—Owner/ President

decisions you have to make every day? CD: We try to stay informed on prices, trends, what sells, and what not to accept. We visit other shops in the area, talk with customers, and we stay up to date with articles in the news and magazines related to the business. We pay for our education every day. (Continued on page 45)

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 9

BUSINESS SENSE

The Exhibitor’s Guide to a Successful Trade Show HOW TO MAXIMIZE YOUR EVENT INVESTMENT

EXHIBITING AT A TRADE SHOW offers a

tremendous opportunity to gain exposure for your company, get instant feedback on your products or services, and check up on your competitors. It’s a worthwhile investment if you plan ahead and know how to get the best return for your money. 80 percent of the work readying your exhibit for the event can be done ahead of time. You should allow at least three months (six months is ideal) to fully prepare, so you can plan the booth space, order a display (if needed), develop a marketing plan, and create all of the promotional material. TRADE SHOW PREPARATION

Obtain the exhibitor guide from the event website or manager. Review it thoroughly to be sure you understand all the rules and know all the deadlines. Find out who will be attending and who will be exhibiting. What is the expected attendance? Is it expected to sell out? How many booth spaces are available? What percentage of your industry is represented? Which of your competitors will be there? If it’s a new show for you, get feedback from past exhibitors on the show traffic and the purchasing habits of the attendees. Next, ask if you can participate in a panel discussion or present your own session. Often times, you can get free or discounted space if you’re a speaker. If it’s too late for this year’s show, make a note to follow up in six months for the following year. Also inquire about sponsorship opportunities. They usually range in price and may come with perks such as additional publicity or free registrations.

Once you’ve made the decision to exhibit, register as early as possible to take advantage of any early bird discounts. Then set some goals for the show. Do you want to make $10,000 in sales? Increase last year’s show sales by 10%? Add 100 names to your prospect list? List your specific goals and then create strategies to reach those goals with your trade show marketing plan. TRADE SHOW MARKETING PLAN

Developing the marketing plan is fairly easy when you break it down into steps. 1 Decide what you will be promoting at the show. Will you be launching a new product or service? Are you introducing your company to the industry or to this group for the first time? Then,

In a sea of booths, you have just a few seconds to make yours stand out.

10 | NATIONAL PAWNBROKERS ASSOCIATION | SPRING 2015

practice your demonstration or marketing spiel until you have it perfected. Come up with a list of customer objections and have answers ready for each one. 2 To start generating some buzz, announce your show participation in as many places as possible your website, direct mail promotions, email blasts,

customer newsletter, blog, social media, and even in your email signature. If the tradeshow offers a pre-show attendee list, use it. 3 In a sea of booths, you have just a few seconds to make yours stand out. Invest in good signage such as overhead banners, easel displays, or posters. While it can be costly, if used repeatedly, it’s well worth the money. 4 Determine how you will attract attendees to your booth. Will you offer a “grand prize” drawing, a fun contest, an interactive element (such as a touch screen), or a free photo opportunity with a step and repeat wall and a show celebrity? Free food and drinks will always bring in customer traffic, but be sure to check with the event manager first. 5 Create colorful, effective marketing pieces that include additional details about your company and its products or services. Include brochures, business cards, product flyers, and takeaways for those attendees who don’t have time to talk at the show. BEFORE THE TRADE SHOW

Make a list of items you will need to have on-hand in the booth (cords, tape, scissors, pens/pencils, paper, electronics, credit card processor). Check them off the list as they are packed to be sure you don’t forget anything. If you are shipping supplies, displays, or products to the show, determine when it must arrive so you don’t have extra storage charges. Many convention facilities use union labor or general services contractors which can affect your booth setup options, so find out ahead of time what you are allowed to do. Be sure to order any additional services you may need for the show such as lead retrieval, electricity,

or internet access. Normally, you will receive discounts if you order early. TRADE SHOW ACTIVITIES

Your number one objective during the show should be to engage customers. To do that, you cannot be reading a book, texting on your phone, or eating a sandwich. Stand up, put a smile on your face, and be happy to talk with your customers. If you have a new product you are unveiling, it can be very advantageous to break the news at the show. The media may already be in attendance and some of your best customers will probably be there as well. You can even have preprinted press releases in the booth ready to hand out. Regularly update your social media accounts while you’re at the show. Tweet, post, or chat about your exhibit each day. Take photos and upload them often. If you have a few minutes of down time, and have booth coverage, walk the trade show floor. Check out your competitors’ booths, see what they’re giving away, and determine how much traffic they’re generating.

(Continued on page 45)

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 11

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COMMUNITY INVOLVMENT

Never Give Up PAWN AUTHOR GETS BOOK PUBLISHED AFTER 30 YEARS

DREAMS DO COME TRUE. Just

ask Roger Creet, an 85-year-old librarian living in the San Francisco Bay area. In the mid-1980’s, Roger was working on his Ph.D. thesis at Great Britain’s University of Lancaster. His particular field of study was very specific: pawnbroking in Victorian London. “Pawnbrokers were the sole source of credit for working-class Londoners of the time. It was an integral part of society,” says Roger. He, along with his wife Adelaide’s support, worked on his thesis for over three years conducting

painstaking, tedious research, often spending months at a time in London. They reviewed old maps, directories, trade journals, even newspaper accounts. When the thesis was done, Roger had documented over 390 pages of material entitled “Pawnbroking and the Working Class in Victorian London (1850 1914)”. Unfortunately, Roger’s thesis did not pass the university’s panel (even though his professor/ advisor had assured him it would), thus keeping him from getting his doctoral degree. The denial was extremely disappointing to him and he still considers it one of his life’s greatest regrets. After Adelaide passed away in 1999, Roger (who still tears up when talking about her) was physically incapacitated due to an accident. He has spent the last 15 years living in nursing homes. It was in one of the nursing homes that Roger met Susan Strouse, a pastor at San Francisco’s First United Lutheran Church. When Pastor Strouse and

He, along with his wife Adelaide’s support, worked on his thesis for over three years conducting painstaking, tedious research, often spending months at a time in London. (Continued on page 68)

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 13

YOUNG PAWNBROKERS TO WATCH

Josh Davis

Adam Davis

Josh and Adam Davis: FLORIDA BROTHERS ON THE FAST TRACK

THIRD GENERATION PAWNBROKER? ✓ COLLEGE GRADUATE? ✓ TECHNOLOGY INNOVATOR? ✓ MULTI-STORE OWNER? ✓ UNDER 30? ✓

Josh and Adam Davis officially began their pawn careers just six years ago, but they have already made huge strides in the industry. Natives of New York, they worked with their father and grandfather in the familyowned pawn store which opened in 1947. During school summers and breaks, they perfected their pawning, appraising, and selling abilities. In 2008, they opened their first store, GC Pawn, in Pompano Beach, FL. Since then, they have expanded their operation into six stores. Josh has a Computer Engineering degree and handles the administrative and technical aspects of running the company. In addition to all the accounting responsibilities, he takes care of licenses, legal issues, and building maintenance, as well as technology, security, and website development. Adam, with degrees in Economics and Musicology, handles the managerial duties. This includes assisting the sales staff, running the social media and marketing campaigns, managing inventory control, and taking care of their 20-plus employees.

Both brothers have been instrumental in developing new technology to ensure the operation runs smoothly and efficiently. They built an online e-store with direct integration to the POS system so all items are pictured, priced, and available for purchase and shipment. Customer service has been enhanced providing customers the option to securely view their loan and layaway statuses online or make loan payments through the website. Text messages can also be sent when loans are due. In addition, Josh and Adam developed an online admin system allowing the employees to interface directly with them regarding scheduling, purchasing, price guides, inventory control, and daily reports. When asked how the pawn industry should prepare for the future, Josh stated, “There is a certain saturation happening in many places, and city governments are placing moratoriums on pawn licenses. This will make it more difficult for people to get into this business and require business purchases rather than opening new shops.” Adam added, “Although many people in the general public have improved

“ Pawn shop owners need to join forces to help bring our industry to the next level to ensure our survival and growth.”

14 | NATIONAL PAWNBROKERS ASSOCIATION | SPRING 2015

YOUNG PAWNBROKERS TO WATCH

their perception of the pawn industry, many government officials still maintain that pawn shops are bad for their communities. Pawn shop owners need to join forces to help bring our industry to the next level to ensure our survival and growth.” On how the industry should prepare for the future, Josh states, “The constant bombardment from the government to put us out of business requires us to maintain a lobbyist to advocate on our behalf to those not familiar with our industry on how we actually help the local communities.” The brothers have interesting and varied backgrounds as well. In addition to a two-year stint with Vertical Computer Systems (CompuPawn), Josh also spent time as a volunteer fireman and earned his Eagle Scout rank with the Boy Scouts of America. Adam worked in the film industry on movie sets and is a member of the Boca Raton Triathletes. Both brothers serve on the board of the Florida Pawnbrokers Association. In light of all they have accomplished in such a short time span, we can only imagine what the future will hold for these high achievers.

Josh and Adam Davis are ready to make some music in their Oakland Park, FL store.

BUSINESS SENSE

Creating Store Lighting Excellence BETTER LIGHTING MAKES BETTER SALES By Herb Schottland

THIS IS PART TWO OF A 3-PART SERIES ON STORE DESIGN. PART ONE (ON STORE DESIGN) WAS IN THE WINTER 2015 ISSUE.

During my career as a professional store designer, I have gone into many stores of all types. And I always ask myself the same question, “If I bought this store today, what would be the first improvement I would make?” The vast majority of the time, the answer is lighting! There is no question about it. Poor lighting hurts sales, but it’s an easy fix. Pawn stores, in particular, require two types of lighting. One type is specifically designed to light jewelry. The second type lights the store and its hard goods.

positioned above the front rail of the jewelry cases, spaced two to two and a half feet apart, based on ceiling height. Ceiling height, along with design considerations, determine what type of light fixturing would be best, such as track or recessed lights. Lighting the store and the hard goods requires 3000K lights. This provides the same light level, a different color, and many of the same advantages that the 5000K lighting provides for the jewelry. The 3000K lighting has a gentler effect on human skin, and is a little softer and easier on the eye. Even if you are not considering a complete remodel or upgrade,

Herb Schottland President, Store Design and Fixturing Herb Schottland is the President of Store Design and Fixturing. His family has more than 65 years of experience designing store interiors across the nation. For more information, contact Herb at herb@storedesignandfixturing. com or visit the website at storedesignandfixturing.com.

TYPES OF LIGHTING

LED (light emitting diode) is the newest and, by far, the best type of lighting available. While it costs more at the outset, you more than recover the initial costs over a very short time. Some of the advantages of LED lighting are that it generates less heat, provides better and more consistent color rendition, has a longer life, and significantly lowers electrical usage. Jewelry requires 5000K (Kelvin) lighting. Kelvin refers to color. These lights should be

A jewelry store designed by Store Design and Fixturing

16 | NATIONAL PAWNBROKERS ASSOCIATION | SPRING 2015

Jewelry displays at National Jewelry & Pawn in Durham, NC.

look at your store as if you were a customer, and honestly assess its lighting. JEWELRY CASE LIGHTING

When jewelry is in an internally lit showcase, the light source is less than 12 inches from the merchandise. Therefore, when you take out the piece and display it to a customer on a pad on top of the showcase, the light dies. You don’t want to disappoint your customers when they see the jewelry up close. Second, the light fixture itself blocks a clear view inside the case. Rather than using in-case lighting, use plenty of overhead lights. With this format, your jewelry actually looks slightly better on top of the case.

“If I bought this store today, what would be the first improvement I would make?” The vast majority of the time, the answer is lighting!

If the overhead lighting is professionally designed and executed, this is the best way to go. You will save money on the cost of new showcases and electrician charges if you

don’t require them to have internal lights. However, there is one exception to this. Enclosed wall cases should be internally lit with vertical LED lights at the two front corners from the top to the bottom of the display area. LIGHTING PROFESSIONALS

Like store design and layout, lighting is best done in collaboration with a professional. Do it right, and it will reward you. Work only with a designer or a company that deals in store lighting. Remember, even a beautiful well-designed store will fail to achieve its full potential if the lighting is poor. Brighten up your store and brighten up your balance sheet!

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 17

DIAMOND AUCTIONS |

UPCOMING EVENTS

JCK LAS VEGAS | MAY 28 – JUNE 1 HONG KONG | JUNE 25 – JUNE 28 | MUMBAI | AUGUST 3 – AUGUST 7

White Pine is the ONLY U.S. company currently conducting diamond auctions in India. We specialize in maximizing the return on your diamonds. Cash advances available within 24 hours of submission.

SELL SMARTER WITH US.

INDUSTRY PARTNER SPOTLIGHT

CompuPawn INNOVATIVE BUSINESS TECHNOLOGY FOR THE FORWARD-THINKING PAWNBROKER

VERTICAL COMPUTER SYSTEMS (COMPUPAWN) has been a member of NPA

since 1989. We sat down with Marko Evans, Vice President of Sales and Marketing, to find out more about the company’s plans for the future.

Marco Evans Vice President, Sales and Marketing CompuPawn

NATIONAL PAWNBROKER (NP): How did

CompuPawn get started? MARKO EVANS (ME): Brett Howell founded Vertical Computer Systems in 1984. He worked with Miley O’Neal, owner of The Happy Hocker, to automate many unique business practices that only a pawnbroker would consider. This was the beginning for CompuPawn, and we have never stopped innovating to improve pawnshop automation. NP: What kind of services do you offer? ME: CompuPawn Software is singularly focused

on pawnshop automation. Ancillary services include point-of-sale (POS) for buy/sell shops, check cashing, payday lending, and auto pawn stores. NP: What new trends are you seeing in the

software industry? ME: Our development is focused in two different areas: customer engagement and loyalty as well as e-commerce. We believe the correct software strategy is a three-pronged approach: • A strong back-end and reporting tool with a stable product • Loyalty/engagement • E-commerce Our clients seem to be split 50/50 with regard to e-commerce. Many feel the best strategy is to drive customers back to their stores rather

than ship items to another state when they ship products outside their geographic region. We believe that when you combine both loyalty and e-commerce together, it addresses both in a winning combination for all stores and all customers. We are also very close to developing a new loyalty app for our customers that will be available in both the Apple and the Android stores. CompuPawn customers will have the ability to brand and publish their own app for their customer base driving sales, customers, and profits back to their locations. NP: How can your products and services help

our pawnbroker members? ME: Key Performance Indicators (KPIs) are critical! KPIs define a set of values used to measure results. These values are fed to systems that summarize the data, called indicators. If you aren’t watching the controls, it’s tough to navigate. These numbers need to be evaluated for both the store and the employees. What are the KPIs you need to be following? • New Pawn Loans Written • Buys • Pawn Service Charges • Pawn Loans Outstanding

(Continued on page 48)

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 19

20 | NATIONAL PAWNBROKERS ASSOCIATION | WINTER 2015

WINTER 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 21

BUSINESS SENSE

How to Make a Conference Pay for Itself EDUCATION PLUS PREPARATION EQUALS BIG SAVINGS TAKING TIME AWAY FROM YOUR BUSINESS

to attend a conference can be expensive both in dollars and in time. If you’re going to take the plunge, it helps to set some goals before you go. Starting the conference well-prepared goes a long way toward ensuring you are getting the best return on your money—and your time. BE PREPARED

After reviewing the conference materials, start planning your trip. Most conferences offer an early bird rate, so make sure you register early enough to get the savings. Next, book your airline ticket or plan your drive. The sooner you make your reservation, the more options you will have, and you can avoid those last-minute sky-high prices. Then, make your hotel reservations taking advantage of the conference room rate, if available. Keep all of the conference paperwork in one folder including the brochure, airline/hotel

attend” and which ones are “would like to attend”. Sometimes session tracks overlap, so make sure you plot out the best way to get into as many of your “must attend” sessions as possible. List at least one key takeaway you expect to receive from each one.

“ A conference is a minisociety and the social interactions are paramount to the learning. Many people get the most valuable information from the impromptu “hallway conversations” that occur with others they meet.” — Thom Singer, author of Some Assembly Required.

confirmations, and registration information. If your packet is sent to you ahead of time, add it as well. Be sure to include plenty of business cards to pass out to new acquaintances. REVIEW THE SCHEDULE

Read all of the material about the various sessions and classes. Prioritize which ones are “must

22 | NATIONAL PAWNBROKERS ASSOCIATION | SPRING 2015

Next, review all of the receptions, luncheons, dinners, and external events. You have to eat while attending the conference, right? If a meal is included, take advantage of it. If you need to request an extra ticket for your spouse or require a vegetarian meal, order it at the time of registration or let the event coordinator know as soon as possible. After you have selected your training sessions, classes, and events, plan out each day. Make sure you have time to get from one session to the next (especially if they are in different buildings). If meals are not included, find out where you can grab a quick bite to eat. You don’t want to find out the (Continued on page 51)

WINTER 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 23

MEMBER BENEFITS

NPA’s Certified Pawn Professional (CPP) Learning Program BE AMONG THE FIRST TO ENROLL!

THIS IS THE THIRD IN A THREE-PART SERIES that explores NPA’s new learning

program, Certified Pawn Professional (CPP), launching at Pawn Expo in Las Vegas this July. NPA will offer six different one-day modules, each devoted to a key area of knowledge that professional pawnbrokers must master: • Store Operations • Marketing and Public Relations • Human Resources • Product Knowledge • Federal Regulations • Security, Risk, and Crisis Management Courses will be offered at Pawn Expo each year, and a selection of courses will also be offered throughout the year at regional sites around the country, sometimes in conjunction with state or regional association events. ABOUT THE CPP PROGRAM

CPP is not an introductory course. It assumes an individual has some prior knowledge and experience in pawn stores and is intended to enhance and broaden both your skills and knowledge. Classes will be composed of store owners, managers, administrative employees, and sales personnel. At the conclusion of each day of instruction, students who wish to earn the CPP designation will sit for a one-hour, 40-question examination. In order to pass the examination a student must

24 | NATIONAL PAWNBROKERS ASSOCIATION | SPRING 2015

answer 30 questions correctly. Members who only wish to enhance their knowledge without pursuing the CPP designation are welcome to do so and will not be required to take the examination. Those who have satisfactorily completed each of the five required courses and exams will be recognized at a new annual ceremony during Pawn Expo. They will have earned the right to affix the CPP designation to their business cards as well as personal and business stationery. As the CPP program matures, additional modules may be added to the curriculum, either as required courses or as options to suit the needs of different members. For example, optional courses may be offered in firearms, collectibles, watches, or any number of other topics that might appeal to NPA members. Providing for optional course choices reflects NPA’s commitment to providing meaningful learning opportunities to all members. The first three courses, Store Operations, Marketing and Public Relations, and Human Resources, will be offered this July at Pawn Expo 2015. STORE OPERATIONS

Store operations is the set of activities and processes that help an organization run effectively, efficiently, and in line with business strategies and objectives. The expectations of how your employees operate and represent your business are determined by your store operations practices,

such as ethics, store appearance, security, and other day-to-day operations. This directly impacts the customer experience and, ultimately, your bottom line. After completing this course the student will be able to: • Understand the importance of ethics in dealing with customers and property. • Identify ways to protect the organization against theft. • Apply merchandising techniques to help improve sales. • Implement effective customer service practices. • Explain the pawn transaction process. • Understand proper cash handling procedures. • Discuss methods to increase loan balance growth and retention. • Identify security measures to safeguard the store and employees.

Registration Fees Per Course $499—Non-Members $199—NPA Members July 6, 2015 8:30 am – 4:30 pm Available Courses: • Store Operations • Marketing and Public Relations • Human Resources NationalPawnbrokers.org

MARKETING AND PUBLIC RELATIONS

Marketing and public relations are not exact sciences and can vary greatly from one organization to the next. Both areas are closely connected and require a variety of strategies and tactics that are constantly changing in order to remain effective and successfully support the organization. Having a marketing plan in place, being prepared to interact with media, and being an active, positive participant in your community are all important for a well-rounded plan. Add today’s technology into the mix, and you can quickly set yourself up for success if handled properly. After completing this course the student will be able to: • Differentiate types of marketing methods available. • Identify the elements of a marketing plan. • Understand why and how to track marketing results. • Create a marketing message. • Identify ways to manage digital marketing.

(Continued on page 55)

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BUSINESS SENSE

New Money, New Challenges DEALING WITH DIGITAL CURRENCY

AS WE ENTER A NEW AGE OF technology,

it may be time for an overhaul of our currency system as we know it. For centuries, we have been selling and buying with some form of currency. Whether it was chickens and goats, gold coins or paper money, the world has transacted in one form of currency or another since just about the beginning of time. Now, perhaps it’s time for the next evolution…. digital currency. What is digital currency? Digital currency, or digital money, is a medium of exchange (i.e., distinct from physical, such as banknotes and coins) that exhibits properties similar to physical currencies. However, it allows for instantaneous transactions and borderless transfer of ownership. Both virtual currencies and cryptocurrencies are types of digital

Bob Frimet RMF Consulting Group

Robert Frimet is Managing Member of RMF Consulting Group and is a certified anti-money laundering specialist (CAMS). He has served the pawn, check cashing, payday, title, and other industries since 1991. Mr. Frimet offers compliance services nationwide and may be reached at (702) 596-8370 or at Bob@Checkconsultants.com.

currencies. Digital currencies are known as “decentralized digital currencies” meaning there is no central point of control over the money supply. Cryptocurrencies are a “medium of exchange using cryptography to secure the transactions and to control the creation of new units. Crytocurrencies are a subset of digital currencies.” There are many types of digital currencies including bitcoin, lite coin, doge coin, and others, with bitcoin being the most popular. Bitcoin uses peerto-peer technology to operate, with no central authority or banks; managing

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 27

BUSINESS SENSE

transactions and the issuing of bitcoins is carried out collectively by the network. You cannot hold a bitcoin in your hand. Think of it as a debit card, but you can load it via your cell phone. You can easily transfer it to another party and across borders. Regulation is just now starting to take place governing such currency. Though it can be used to purchase illegal items and launder money for the purchase of drugs and weapons, bitcoin is not all bad. Imagine being able to send money to a family member anywhere in the world with little or no fees. Imagine a currency that is not tied to any government, inflation, or deflation. Imagine being able to spend bitcoin at Target, Amazon, Subway, or even Virgin Airlines. No imagination necessary, as you can do it today. You can even buy a Tesla with digital currency. Digital currency cannot be stolen or counterfeited, unless you give up your security code, so getting robbed becomes less of an issue. Bitcoin transactions send bitcoins to a specific public key. A bitcoin address is an encoded hash of a public key. This is sort of like a super long password associated with an account (the account is the public key). In order to use received bitcoins, you need to have the private

key matching the public key you received it with. Your bitcoin wallet contains all of the private keys necessary for spending your received transactions. If you delete your wallet without a backup, you no longer have the authorization information necessary to claim your coins, and the coins associated with those keys are lost forever. Perhaps you have heard of Silk Road, a website used to move drugs and weapons using bitcoin. The owner and conspirator violated anti-money laundering laws by supplying $1 million in digital currency to people buying drugs on the defunct online marketplace, Silk Road. A Secret Service agent was quoted as saying, “They want to use anonymous currency that allows them to do transactions and move large amounts of money without ever being traced. That’s why digital currency is very important. It’s used for all the bad things.” However, many disagree. According to blotchain.info, there was $53,852,019 in transaction volume in USD worldwide over the past year. There are approximately 14,010,350 bitcoins in circulation, not to mention other currencies. Bitcoins are created each time a user discovers a new block. The rate of block creation is approximately constant over time: 6 per hour. (Continued on page 68)

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WINTER 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 29

PAWN EXPO PRESENTER

Is Your Business You-Proof? SHIFTING FROM OWNER TO SELLER Provided by Joseph W. Murray, CLU, ChFC, CFBS, and Andrew Starfield, CFBS, First Financial Group

WHETHER YOU’RE PLANNING TO sell your

company sometime soon or sometime in the future, now is the time to ensure that your business isn’t all about you. From the latest Sellability Score research involving 2300 companies from around the globe, here are two key factors that are linked to the probability of getting an offer for your business when it’s time to sell.

Joseph W. Murray

#1: You’re almost twice as likely to get an of-

is a Financial Representative with First Financial Group, a general agency of Massachusetts Mutual Life Insurance Company (MassMutual) in Philadelphia, PA.

fer if your business can survive the “hit-by-abus” test. If you were out of action for three months and unable to work, would your business keep running smoothly? The more your staff and customers need you, the less valuable your company will be to a potential buyer. One good way to start making your business more independent is to begin spending less time at the office. Start by not working evenings or weekends, and don’t reply if employees call. Once they get the picture, the best ones will start making more decisions independently. The shift will also expose your weakest employees, the ones that need training or that need to find another job. As for you, it might come as a shock to find out how much your business has become such an essential part of you; but if you’re going to sell your business one day, you need to look at it as an inanimate economic engine, not as something that defines who you are.

30 | NATIONAL PAWNBROKERS ASSOCIATION | SPRING 2015

is the Executive Vice President of First Financial Group, a 125 yearold financial services firm located in Bala Cynwyd, PA.

Andrew Starfield

#2: Companies with a management team (as

opposed to a sole manager) are getting offers at almost twice the rate. If you don’t have a management team, hiring a second-in-command (2iC) is a good first move. A 2iC can help you balance the demands of running your company and advance your targeted exit time. Here’s a four-step plan for hiring a 2iC, thanks to advice from Silicon Valley-based Bob Sutton, author of Good Boss, Bad Boss. 1: I dentify someone internally. “The research is clear,” says Sutton. “Unless things are totally

PAWN EXPO PRESENTER screwed up, internal candidates have a strong tendency to outperform external leaders.” 2: G ive your 2iC prospect(s) a special project, one that allows them to demonstrate their leadership skills to you and the rest of your team. If your candidate (or one of your candidates) excels, it will be clear to your team why he or she was selected. 3: C ommunicate your choice. If you pick a 2iC from an internal pool, explain your choice to the rest of your team. At the same time, wrap your arms around those you passed over and make it clear how much you value their contribution. 4: S hift from manager to coach. “The transition from manager to coach is a gradual evolution where the goal is to ask more questions, spend more time listening, and spend less time talking and directing,” says Sutton.

If you were out of action for three months and unable to work, would your business keep running smoothly?

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 31

BUSINESS SENSE

Diamonds Are BUYER AND SELLER VIEWPOINTS: HOW TO GET THE BEST DEAL FOR YOUR DIAMONDS

BUYING AND SELLING DIAMONDS has become a big

part of Pawn Expo and other pawn industry trade shows. Below are some tips from both a buyer’s and a seller’s point of view on how to get the most money for your diamonds.

Buyer’s Point of View By Eric Mor, Abe Mor Diamond Cutters & Co, New York, NY

As a large diamond buyer, we are often asked the question, “What strategy should I have to get the most money when selling my diamonds?” We recommend four steps every pawnbroker can use to maximize their return on selling their diamonds: BE INFORMED.

The more you know, the more you get. Take all measurements possible. Learn how to estimate color grade accurately, including mounted goods. Describe carefully all significant imperfections, including location, and if there is black. The more detail you can convey,

the better you will be paid. If you are less specific, the buyer has to bid safer (lower). KEEP ‘EM HONEST.

Get multiple quotes. Even if you know the company to whom you want to sell, get at least a few quotes before agreeing on a final number with anyone. The more competitive you make the transaction, the higher you will be paid. SELL TO A COMPANY THAT IS STRONG IN ITS DISTRIBUTION OUTLETS FOR YOUR ITEM.

A refinery is a great place to sell gold, but may not be ideal for large, valuable diamonds. Certain companies specialize in commercial grade “frozen spit” goods. Others sell signed pieces and can pay a slight to substantial premium for them. Most in the trade know Abe Mor for buying larger, white diamonds of all different shapes, but lesser known areas of strength for the company include antique cut diamonds, natural fancy colored diamonds, and rounds of lower colors (K-Z). Make sure you know various buyers’ sales strengths.

32 | NATIONAL PAWNBROKERS ASSOCIATION | SPRING 2015

Eric Mor Owner, Abe Mor Diamond Cutters & Co

BUILD A RELATIONSHIP.

Doing repeat business promotes a higher level of transparency between the two companies, more favorable selling conditions, and privileges like accepting diamonds the buyer would normally not offer on, paying higher on a casual mistake you may have made, or offering generous trade-in terms. We do everything we can to accommodate our repeat customers, and building a relationship of trust is ultimately the best route to consistently high payouts.

Forever David Schoeneman Owner, Shane’s - The Pawn Shop

Seller’s Point of View By David Schoeneman, Shane’s – The Pawn Shop, Chicago Heights, IL

We all want to get the most money for our diamonds, but how seems to be the key. Following are some tips that I have found to be the most efficient after 20-plus years of selling melee. For small diamonds (0.03 carat and smaller), have your gold refiner use a “chemical melt” to dissolve the gold. This will reduce the problem of breaking small diamonds while removing them from settings as broken diamonds are almost worthless. If you remove some of the diamonds yourself, send them for an acid bath. They should

come back to you cleaned and free of dirt. Ask to have them “frosted” as this will give many, but not all, non-diamonds a frosted, cloudy appearance. Using your loupe and tweezers, remove the diamonds and separate them into the following categories: • Frosted stones • Non-frosted, but obviously not diamonds • .10+ carat chipped, broken diamonds • Brown diamonds • Grey diamonds ROUND TO FANCY SHAPES

If you have a sufficient quantity, you will want to invest in a small sieve with sieve plates which can be purchased from many of the major vendors. To maximize your return, separate the round

white diamonds into three subcategories by size. Anything larger should probably be looked at individually. • Under .10 carat • .10 to .20 carat • .21 to .30 carat Next, create an Excel spread sheet recording the weights and percentage of each category. On the copy you make for yourself, include the non-diamonds. Make another half dozen copies (leaving out the cubic zirconia information) and take these to the trade show. List the weights of each quality of diamonds on each one. Then sit down with each dealer and show him/her the various parcels in a numbered sequence. Afterward, off the trading floor, compare who offered how much on each parcel. Don’t forget to hang on to a few matching stones so you can make up pairs of earrings. You’ll always get more for a few diamonds retailed over the counter than you will wholesaling them..

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 33

Raising the Bar

JULY 7-9, 2015

THE MIRAGE | LAS VEGAS What is Pawn Expo?

TRENDS

by M ay rly with ea s e bird rat m po.co PawnEx

INNOVATION

0 Save $20 2 2

EDUCATION

Questions? (888) 808-7296 • PawnExpo.com

STAY CURRENT WITH TRENDS Get up-to-date on the latest industry news, see what new products are entering the market, and find the newest tools available to help you in your business.

Pawn Expo Highlights Opening Session Keynote

Networking Reception Welcome Reception Annual Membership Meeting

Trade Show

Closing Reception

SUCCESS

NETWORKING

Diamond District

Pawnbroker Peer Roundtables

Awards Luncheon Ask the Expert Sessions NPA PAC Event

What’s New in 2015? CPP Courses The Ritz-Carlton Education Sessions Young Professionals Luncheon

International Coffee Connection Pawnbroker Networking Luncheon Hands-On Product Knowledge Sessions

Questions? (888) 808-7296 • PawnExpo.com

Monday | July 6

MONDAY SCHEDULE

Mark of Excellence

8:30 am – 4:30 pm CPP Courses – Additional Registration Required 1:30 pm – 6:30 pm Diamond District

CERTIFIED PAWN PROFESSIONAL COURSES Monday, July 6, 8:30 am – 4:30 pm NPA is launching the Certified Pawn Professional (CPP) designation program, which will elevate professional standards and be the recognized mark of distinction among those in the pawn business. The first courses will be offered at Pawn Expo 2015. Additional registration required. Store Operations Marketing and Public Relations

5:30 pm – 7:00 pm Networking Reception

Human Resources

Tuesday | July 7 OPENING SESSION:

Keynote Speaker Ron White

Triple Your Memory and Triple Your Business Tuesday, July 7 9:00 am – 10:15 am Ron White, two time national memory champion and the world’s foremost memory expert and trainer, headlines this event. He will teach guests to triple their memory, build confidence by giving speeches without notes, build relationships by recalling names and faces, and learn anything faster and easier by retaining more.

Award Winning Program

CUSTOMER SERVICE REENERGIZED The Ritz-Carlton Leadership Center Joseph Quitoni, Corporate Director, Culture Transformation Tuesday, July 7, 10:30 am – 12:30 pm

This session will ignite and sustain employees’ passion for service excellence by showing: Th e meaning of an employee’s function vs. purpose A very effective way of cascading an organization’s strategic plan Th e importance of the alignment between emotional intelligence and the strategic plan

NAVIGATING THE INS AND OUTS OF OSHA COMPLIANCE

Jamie M. Hasty, Vice President, SESCO Management Consultants

OSHA

Tuesday, July 7, 2:15 pm – 3:15 pm Pawnbrokers with stores of all sizes have very complex OSHA compliance standards given the unique nature of their businesses. This session will cover the basics of OSHA compliance, specific industry requirements, management’s responsibility, and how to handle OSHA audits.

Questions? (888) 808-7296 • PawnExpo.com

Expanding Your Business

IS EXPANDING YOUR BUSINESS RIGHT FOR YOU?

Kevin Prochaska, President, Lombard Financial Services

Due Process Rights

Tuesday, July 7, 2:15 pm – 3:15 pm

Understanding and preserving your right to due process is important for every pawnbroker. This session will provide pawnbrokers with information to assist in the development of policy and procedure guidelines to follow when their stores are involved with law enforcement holds or investigations.

TUESDAY SCHEDULE

9:00 am – 10:15 am Opening Session 9:30 am – 5:30 pm Diamond District

Tim Collier, NPA Government Relations Chair, and Fran Bishop, NPA Government Relations Liaison

Tuesday, July 7, 2:15 pm – 3:15 pm

Expanding your business is a big decision, and not one to be taken lightly. In this session, a group of panelists who have first-hand experience will discuss considerations to expanding your business, and the outcomes and consequences that come along with it.

8:00 am – 8:45 am Annual Membership Meeting and Breakfast

ASK THE EXPERT: UNDERSTANDING YOUR DUE PROCESS RIGHTS

Digital Currency

DIGITAL CURRENCY—THE NEW FRONTIER!

10:30 am – 12:30 pm Education Sessions

Robert Frimet, CAMS, President, RMF Consulting Group, Inc.

12:45 pm – 2:00 pm Awards Luncheon

This seminar will give an in-depth look at digital currency and how this relatively new phenomena relates to the modern day pawnbroker. Attendees will learn what digital currency is, how you can spend it, what market opportunities there are for pawnbrokers, and what the pitfalls are of using it.

2:15 pm – 4:30 pm Education Sessions 6:30 pm – 8:30 pm Welcome Reception

Disaster Preparedness

Tuesday, July 7, 3:30 pm – 4:30 pm

DISASTER PREPAREDNESS— ARE YOU READY?

Mark Lowers, President and CEO, Lowers & Associates

Store Design

THE CUSTOMER EXPERIENCE— A PAWNBROKER’S SECRET WEAPON

Herb Schottland, President, Store Design and Fixturing

Tuesday, July 7, 3:30 pm – 4:30 pm

Disasters strike in many forms such as natural disasters, riots, and vandalism. Participants will learn the importance of a continuity plan, how to prepare for a disaster, and how that advance preparation will minimize the business impact, allowing for a quicker insurance claim settlement and restoration in order to get back to business.

Today’s customers expect more from their retail experience, and store design leads the way with that all-important first impression. Attendees will learn how to create a store environment centered around the customer, ultimately leading to increased profits. Solutions for large and small budgets will be discussed.

Questions? (888) 808-7296 • PawnExpo.com

Wednesday | July 8 DO YOU HAVE ASSETS OUTSIDE OF YOUR BUSINESS TO FUND RETIREMENT?

Funding Retirement

Joseph W. Murray, Executive Vice President, and Andrew Starfield, Financial Planner, First Financial Group

Wednesday, July 8, 8:30 am – 9:30 am Many business owners spend the majority of their time working in their businesses instead of on their businesses, and they often don’t plan for the future. This session addresses tough questions and offers practical solutions: Do I have assets outside of my business to fund retirement? What is my business truly worth? How sellable is my business? What is the plan for my business when I retire?

WEDNESDAY, JULY 8 7:45 am – 8:30 am International Coffee Connection

MOTIVATING EMPLOYEES The Ritz-Carlton Leadership Center Joseph Quitoni, Corporate Director, Culture Transformation Wednesday, July 8, 9:45 am – 11:15 am This program examines how every employee in your organization is important to its success. You will learn: H ow your personal power impacts the brand Th e importance and impact of workplace etiquette H ow to transfer what you’ve learned into a personal action plan

Product Knowledge Sessions

8:00 am – 11:15 am Education Sessions 11:30 am – 12:30 pm Pawnbroker Networking Lunch 11:30 am – 12:30 pm Young Professionals Luncheon 12:30 pm – 5:30 pm Trade Show 4:00 pm – 5:30 pm Trade Show Reception 7:00 pm – 9:00 pm NPA PAC Event – Additional Ticket Required

New in 2015, these small group, hands-on sessions offer attendees the opportunity to gain essential knowledge on products they deal with in their stores every day. Each session will be offered twice. Wednesday, July 8, 8:00 am - 9:30 am Thursday, July 9, 1:15 pm – 2:45 pm PRODUCT KNOWLEDGE: DIAMOND CLARITY GRADING

Shelly Verwymeren, Graduate Gemologist, GIA

This session provides an overview of GIA’s Clarity Grading System along with hands-on practice evaluating the clarity of mounted diamonds. It will cover clarity grading, proper loupe technique, and the limitations of grading a mounted diamond.

PRODUCT KNOWLEDGE: PRECIOUS METALS – MARKS OR MELT?

Danusia Niklewicz, Director of International Research, and William Whetstone, Historical Director, Hallmark Research Institute

This session will provide a look at hallmarking as a means to identifying unusual items of jewelry and silver in order to separate the common from the rare and valuable. The hands-on workshop portion offers real life examples of the benefits to understanding precious metal marks, and how they can make or break your payday. All attendees are required to bring loupes.

PRODUCT KNOWLEDGE: DESIGNER AUTHENTICATION

Michael Mack, Owner, Max Pawn & Jewelry

In this session, attendees will learn how to properly authenticate designer items such as handbags, sunglasses, wallets, and belts for designers such as Louis Vuitton, Gucci, and Chanel. Learn what you should be looking for, and what to avoid, so that you can buy or pass with confidence.

Thursday | July 9 Pawnbroker Peer Roundtables

THURSDAY, JULY 9 9:00 am – 10:00 am Trade Show Continental Breakfast

The pawnbroker sitting next to you is one of your greatest resources. At the roundtables, attendees have the opportunity to discuss current pawn topics with their peers and learn best practices from one another. Pawnbrokers only. Thursday, July 9 1:15 pm – 2:00 pm

2:15 pm – 3:00 pm

3:15 pm – 4:00 pm

Finding Good Employees

Online Selling Challenges

Pawn Software

Pitfalls of Electronic Collateral

Changing Tide of Collateral

Increasing Your Loan Base

9:00 am – 1:00 pm Trade Show 1:15 pm – 2:45 pm Product Knowledge Sessions

Hotel Information

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

THE MIRAGE HOTEL AND CASINO, LAS VEGAS

Pawn Expo 2015 Room Rate $109 per night, plus applicable taxes and resort fee of $22 per night.

5:30 pm – 7:00 pm Closing Reception

NPA PAC Event FEATURING CIRQUE DU SOLEIL’S MYSTERE Wednesday, July 8, 7:00 pm Don’t miss your chance to see one of Cirque du Soleil’s most popular shows, Mystere, 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 Mystere performance plus a welcome gift at Pawn Expo 2015.

Visit PawnExpo.com to make online reservations, or reserve via phone by contacting group reservations at (800) 627-6667. Mention NPA/Pawn Expo 2015 to receive the group rate. The group rate is available through June 11, 2015, based on availability.

Sponsors PMS 282

PMS 1255

GEIB REFINING CORP

40 | NATIONAL PAWNBROKERS ASSOCIATION | WINTER 2015

COMMUNITY INVOLVEMENT

Where Are They Now? CURRENT CONVERSATIONS WITH PAST FBL SCHOLARSHIP RECIPIENTS

MANY STUDENTS HAVE RECEIVED SCHOLARSHIPS through NPA’s Future

Business Leaders (FBL) scholarship program. We caught up with a few of them to find out what they’ve been doing since receiving their awards.

my passions for science. It also helped me become a strong leader in my field. I hope to attend graduate school this coming fall in hopes to pursue a Ph.D. in Biochemistry and eventually teach at the college level.

”

JOSEPH M MAGNESS Harrison, AR

Joseph Magness attended Harding University in Searcy, AR, and graduated with degrees in Psychology and Spanish. He is currently working on a Ph.D. in Clinical Psychology and MBA at the University of Mississippi where he teaches and is also the Assistant Director of the Psychological Services department. Joseph was the recipient of an FBL scholarship in 2011 and was sponsored by Castle Rental and Pawn, Harrison, AR. The FBL “scholarship

KAREN JUCO Monee, IL

Karen Juco received an FBL scholarship in 2011. She attended Augustana College in Rock Island, IL, and graduated in May 2015 with degree in Biochemistry. Karen was sponsored by David and Carmencita Schoeneman of Shane’s - The Pawn Shop, Chicago Heights, IL.

“

The FBL scholarship helped make my college education affordable and allowed me to explore

helped immensely in furthering my education. Harding University is a private Christian school which gives few scholarships. It was my goal to graduate from this prestigious school as it would open doors. Your scholarship enabled that to happen. I am an individual who has been blessed beyond measure with support from my family, teachers, mentors, and organizations like yours. With such

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 41

42 | NATIONAL PAWNBROKERS ASSOCIATION | WINTER 2015

COMMUNITY INVOLVEMENT

support, I have been enabled to continue by goal of obtaining my Ph.D. in clinical psychology and my MBA. My end goal is to enter into hospital or prison administration and to continue to give back as much as I have been given.

”

ARIELLE BAKER Fairmont, WV

Arielle Baker received a scholarship from FBL in 2012 and graduated from West Virginia Wesleyan College in Buckhannon, WV, earning a Chemistry degree. She is currently in graduate school at West Virginia University working toward a Doctorate in Physical Therapy. Arielle was sponsored by West Side Pawn, Knoxville, TN. funded my undergraduate education “atI WVWC with academic and private scholarships. I wanted to be proactive, knowing graduate school would bring on much more additional expense. NPA was there for me all four years of my undergraduate journey, providing financial support. Currently, I have student loans for graduate school, which will result in thousands of dollars of debt by the time I graduate in 2017. The fact that I received NPA support attributed to making it possible for me to continue my education financially. My ultimate goal to achieve a doctorate in health care would only be obtainable by maintaining a high GPA in undergraduate school. Less

stress with my finances created a much better study environment, so NPA also attributed to my ability to focus on school work. I’ve spent several volunteer hours working in rehabilitation hospitals, and have found making a difference physically, in the lives of those in need, is a great reward. NPA has not only impacted my education, but will impact the lives of others through my work in the future. Thank you for everything you have done for me!

”

NICHOLAS (JERIT) OWENS Sylacauga, AL

Jerit Owens received FBL scholarships in both 2011 and 2012, and was sponsored by Sylacauga Pawn, Sylacauga, AL. He graduated from Jefferson State Community College in Birmingham, AL, with an Associate of Applied Science (AAS) degree in Nursing. He is currently working as a registered nurse at Shelby Baptist Medical Center in Alabaster, AL. The FBL scholarship provided me with the “financial resources that I needed to attend nursing school. Without the scholarship, my chances of attending college would have been slim. I am now a licensed registered nurse in the state of Alabama. After completing my associate’s degree in nursing, I decided to further my education and am near completing a BS degree in nursing at Jacksonville State University through distance learning. I am enrolled full time at the University (Continued on page 64)

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 43

United Exports North America

Buying Wearable Sterling Silver in Bulk at 100% of Spot (We pay like it is 999 not 925)

PAYMENTS MADE WITHIN 2 BUSINESS DAYS OF RECEIPT

Dealer to Dealer Trade Only

Call Cedric Reeves 305.707.7937 Ship to: UNITED EXPORTS NA LLC 4447 N. Central Expy STE 110 PMB 296 Dallas, TX 75205 CCE: CR9, Coinnet: TS59, JBT: 02627420, Polygon: 152460, | BBB, NPA Member, IPMI Member

44 | NATIONAL PAWNBROKERS ASSOCIATION WINTER 2015

PAWNBROKER SPOTLIGHT (From page 9)

The Spirit of the Southwest

NP: What do you think the biggest hurdles will

be for the pawn industry in the next few years? CD: New laws and regulations could have drastic impacts on our industry. Another hurdle is trying to maintain our profession as a trading post and pawn shop, and not be grouped with other money servicing institutions. NP: What are some of the more interesting

items that have been pawned in your store? CD: Some interesting items are a horse walker, tractors, farm equipment, buffalo hides, cradle boards, and even a Code Talker medal. We mostly take silver and turquoise jewelry, saddles, and tools. NP: How do you give back to your community? CD: I am a member of the Lower Valley Lions

Club, the Waterflow Community Hall Association, and Sacred Heart Catholic Church. We donate often to several of the schools in the area and on the reservation. We also donate to several charitable

events that are brought to our attention through our customers and others in the community. NP: What was the hardest thing you had to learn as a new pawnbroker? CD: How to say “no”, and then how to say “no” nicely. It is also tough to learn that people aren’t always going to agree with your evaluation of their items. NP: What is your favorite thing about being a

pawnbroker? CD: Interaction with so many different and interesting people. Business is never boring. There is always something new and exciting that comes into the store. NP: Why are you a member of NPA? CD: It is very vital to be involved in the industry

and to keep informed. NPA does this for the pawn business.

BUSINESS SENSE (From page 11)

The Exhibitor’s Guide AFTER THE TRADE SHOW

When you get home, you’ll be tired, but don’t let off the gas just yet. After you unpack, • send thank-you emails to those who stopped by your booth. • upload any media coverage to your website. • mail requested information to potential leads. • add business card names to your prospect list. • update your exhibit booth packing list for items to be added or deleted for the next show. Next, perform an analysis of the show results to see if you reached the goals you set up prior to the show. Did you make your sales goal, increase your show sales percent, or add to your prospect list? Did you have any increases in social media engagement or website traffic while you were at the

show? If not, figure out what you need to do differently for the next time. Then, brief the staff on the show. What new things did you learn? What new contacts did you make? How can you make it better for the next show? Finally, take a deep breath and relax. Only 364 days until next year’s show!

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 45

46 | NATIONAL PAWNBROKERS ASSOCIATION | WINTER 2015

Milwaukie

STATE PAWN FACTS

OREGON NUMBER OF PAWN LICENSES

(Oregon Pawn Association)

Salem (capital)

CELEBRATE WITH US! NOW BUILT IN THE USA!

USA RELIABILITY

AVERAGE LOAN VALUE

142

THE OREGON SALES TAX RATE PERCENT

0.00

THE NUMBER OF FEET MOUNT HOOD STANDS (THE TALLEST PEAK IN THE STATE AND A DORMANT VOLCANO)

11,239

TOTAL DOLLOAR AMOUNT OF PAWN LOANS IN 2013

$74,437,020 SOURCE: PAWNBROKER ANNUAL REPORT, OREGON DEPARTMENT OF CONSUMER AND BUSINESS SERVICES DIVISION OF FINANCE AND CORPORATE SECURITIES

Because Your Business relies on Trust Reduce your liability with 32 separate time delay drawers You can only open 1 drawer at a time The Safe everyone is talking about... “The #1 reason to buy a PawnSystem is no one can just come in and take everything. If someone is on the fence, they need to give me a call. You need to buy it! This is a fantastic Safe.” -Kerry Rainey, Bayou Pawn & Jewelry Former President of Dixie Pawn Association.

32 drawers “I just bought 3 Rolland PawnSystems and I have no complaints. If you have an old safe, you need to upgrade to the Generation 3. This is definitely part of the security package.” -Larry Smith, Cash Plus Pawn

Reliable “I bought the PawnSystem for safety, investment and a sense of security. I can leave my store and the jewelry is safe.”

-Jorge Espino, La Piedad Pawn

Contact Sales for more information at 1-800-225-2984 or info@rslc.net

www.rslc.net SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 47

INDUSTRY PARTNER SPOTLIGHT (From page 19)

CompuPawn

• Sales • Layaways Written Processes and accountability are necessary to maintain daily operations. Combined with data analytics, they allow store owners to incent employees to make the store more profitable. Better data equals better run stores. Run the stores by the numbers. NP: What is your vision for your company for

the next five years? ME: We have always been ahead of the curve. When you automate some of the busiest pawn chains in the country, you have to answer to the speed of that business. The next five years will see software allowing the pawnbrokers to establish and maintain a relationship with their customers better than they have been able to before.

NP: Tell us why you are a member of NPA. ME: We are a pawn software company. Pawn is

our industry. This gathering of the minds from across the nation is what keeps this industry alive and striving while politicians and public figures try to demonize it. NP: What is the best way for our members

to contact you or learn more about your company? ME: Visit our website, CompuPawn.com, or email us at Sales@VerticalC.com for more information. Members can also reach us directly by calling (866) 545-9868.

In-Stock or Made-to-Order Jewelry & Watch Displays See Us At

PAWN EXPO July 7-9, Las Vegas

Free ground shipping in the continental U.S. Hundreds of fabric choices Merchandising tips and expert advice

www.pndisplay.com toll free: 888-888-5868 ex.179 whitel@pacificnorthern.com coxc@pacificnorthern.com

48 | NATIONAL PAWNBROKERS ASSOCIATION | SPRING 2015

Manage your business

any time, anywhere. Whether you’re away for a few hours or a few weeks, achieve accountability, business success, and peace of mind when you manage your pawnshops with CompuPawn.

CompuPawn’s secure, cloud-based technology provides:  Freedom to work from anywhere  Higher profits  Efficient business processes  Easy implementation  High data security  Multi-store functionality  User-friendly modules (Jewelry Estimators, Cash Drawers, Accounting, etc.)

WINTER 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 49

Midwest Pawnbrokerâ&#x20AC;&#x2122;s Conference & Convention May 16-18, 2014 Booth - 30 JCK Exhibition 2014 50 | NATIONAL PAWNBROKERS ASSOCIATION 2015 | WINTER June 1-4, 2014 Booth - B4446

JIS Miami Beach Show October 11-14, 2014 Booth - 1317 California Pawnbrokers Association (CAPA) October 24-26, 2014

BUSINESS SENSE (From page 22)

How to Make a Conference Pay for Itself ALLOW FOR FLEX TIME

While it seems like your time away from your business should be spent working to make up for it, don’t fall into that trap. Take some time to regroup, rethink, and refresh your mind, body, and spirit. Seek out new sights in the host city and take advantage of the time away from the daily rigors of running a business. Browse the shops, sit by the pool, or just people-watch in the lobby. You’ll come back home more relaxed and happier. nearest restaurant is a 20-minute cab ride away if you only have 15 minutes between sessions. CREATE A NETWORKING STRATEGY

Industry conferences are an ideal place to meet old friends and make new ones. Check with your peers to see who you can meet up with for dinner or drinks. Come with an open mind and be prepared to learn something new. Do not sit in your hotel room just because you don’t know anyone. Plan to make at least one contact each day of the conference. You never know what that one contact may lead to.

FOLLOW UP

So many times, we return from a convention all excited about the new things we learn. Then, before you know it, weeks and months have passed by and we have forgotten all about them. To keep that from happening, go back to your notes and handouts as soon as you get back to work. Review them and make a list of action steps that can be taken immediately or in the near future. Share your enthusiasm with the rest of your staff so they, too, can be excited. Then, when the email for the next convention rolls around, be the first one to sign up!

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 51

MEMBERSHIP

Make it a Date. Participate! 5 WAYS GET INVOLVED WITH THE NPA

GETTING INVOLVED IN A TRADE ASSOCIATION offers many opportunities to

2 BE A LEADER

grow as both a business owner and as a person. By volunteering your time, you add more enthusiasm to your everyday life and broaden your network at the same time. Perhaps the biggest reward, however, is the pride that comes in helping the association that is fighting for your industry. Before you make that call offering your services, think about the following: • Am I passionate about the mission of the NPA? • What skills or knowledge can I offer them? • Do I have the time and energy required of a commitment? Once you determine that you do indeed want, and are able, to make the commitment to get involved, take action immediately. Here are five easy ways to get your involvement started now.

• Serve on a committee or the Board of Directors. They say it takes a village to raise a child, so imagine what it takes to run an association! Volunteer for a committee or run for office. Show the membership you have what it takes to steer the association in the right direction. • Become a mentor. There’s no better feeling than knowing you made an impact on someone’s life. As a mentor to those new to the pawnbroking world, you can help shape another person’s career path and long-term thinking. Share new ideas and open new doors for them by serving as a mentor through NPA’s Mentor Program. As you mentor, you become a better person.

3 SHARE YOUR WISDOM 1 ATTEND AN EVENT

• Tell your tale at the NPA Legislative Conference. Held annually in Washington, DC, the Legislative Conference is your chance to get front and center with members of Congress. Share your pawnbroker’s story and make an impact on the legislative sector. The NPA makes the appointments and provides talking points, so all you have to do is show up ready to advocate for the industry. • Learn more, do more, be more at Pawn Expo. NPA’s annual convention and trade show is held every July in Las Vegas, NV. Join your industry peers to network, learn new ways to do business, and attend educational sessions designed to help you succeed as a pawnbroker. It’s a business conference all wrapped up as three days of fun.

52 | NATIONAL PAWNBROKERS ASSOCIATION | SPRING 2015

• Tell us your thoughts on the NPA Member Forum. Participate in this very active online pawnbroker discussion group by sharing what you know or asking for advice. Tips, techniques, and tidbits are offered daily. • Write for National Pawnbroker magazine. The quarterly member publication highlights member success stories, business tips from industry experts, and the latest member benefits. Submit your story ideas or offer to write an article for an upcoming issue. If it’s important to you, it’s probably important to other pawnbrokers as well.

4 ENHANCE YOUR EDUCATION

• Get your Certified Pawn Professional (CPP) designation. Add credibility to your company, and the industry, by getting your CPP designation. Five of six classes will earn you this important mark of distinction. The first classes will be offered at Pawn Expo 2015 in July. • Suggest a speaker or a seminar topic. If you, or someone you know, has a great idea or has developed a new way of doing business, let the NPA know about it. The NPA is always looking for fresh ideas for Pawn Expo seminars, and your suggestions are greatly appreciated.

5 CONNECT WITH YOUR COMMUNITY

• Nominate a student for a Future Business Leaders (FBL) scholarship. College costs are increasing every year, and so is the competition for scholarships. When you sponsor a college student for one of the FBL’s annual $1000 scholarships, you are inspiring confidence and creating an opportunity for a young person to advance their education. That scholarship may mean the difference between dropping out or dropping in to a whole new life. • Visit PawnShopsToday.com. Do some people just not get what you do? Send them to PawnShopsToday.com to learn all they need to know about the pawn industry, and more. History, trends, stats, and how a pawn loan works are just some of the topics covered. Check it out and see if you learn something new too!

Don’t let your membership sit idle. Activate it by getting involved with the NPA. Your investment will pay off in more ways than one!

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 53

Highest Returns Ever! See us at JCK Las Vegas Booth S12307

Simplified Charges Increase Your Payout Our customers have spoken. PAYOUT RATES are what’s most important to you!

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We have eliminated our mixed metal charges to simplify our rates thus increasing our lowest payouts on gold by 5% and silver by 10%. Payout on clean gold is ALREADY at the highest rate, up to 99%.

Simplified Charges

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54 | NATIONAL PAWNBROKERS ASSOCIATION | WINTER 2015

24-Hour Settlement Guar anteed Free Shipping & Boxes Free Pickup Service

MEMBER BENEFITS (From page 25)

Certified Pawn Professional

• Effectively manage media inquiries. • Understand the importance of having a presence in the community. HUMAN RESOURCES

For small and large businesses alike, the human resources function is important for more than just processing payroll or hiring an employee. Human resources play a critical role in handling the employee-focused activities of a company and in driving the company’s overall strategy and success. With the constantly changing employment

As the CPP program matures, additional modules may be added to the curriculum, either as required courses or as options to suit the needs of different members.

environment, businesses must have a strong human resources strategy to survive. After completing this course the student will be able to: • Identify the importance of employment law compliance including wage and hour regulations, Americans with Disabilities Act requirements, equal employment practices (harassment and discrimination), and workers compensation. • Summarize the basics of screening and hiring. • Understand the importance of an employee handbook/policy and procedure manual.

• Implement effective performance management practices. • Identify how to structure benefits for the organization. You can quickly see how comprehensive the curriculum will be, and how anyone working in a pawn store will benefit from knowing about these essential issues. The CPP learning program represents a milestone in NPA’s continuing efforts to serve members’ ever evolving needs. We look forward to welcoming you and your colleagues to our first series of CPP learning programs in July! Registration is now open.

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 55

MEMBER NEWS

National Pawnbrokers Association New Members JANUARY 1, 2015 - MARCH 31, 2015

PAWNBROKERS

ILLINOIS

NORTH CAROLINA

Money Mizer of Auburn

Wheeling

Winston-Salem

ALABAMA Auburn

Money Mizer of Montgomery

NorthStar Jewelry & Loan

KANSAS

Uncle Ziggy’s Pawn Shop

Alvarado Jewelry

Money Quick Pawnshop Fayetteville

Montgomery

Junction City

CALIFORNIA

KENTUCKY

Parker Pawn Shops Hope Mills

El Monte

Louisville

Picasso Pawn

FLORIDA

LOUISIANA

Clearwater

Lafayette

Colorado Jewelry & Pawn

Chad’s Pawn Shop

Port Saint Lucie

Deridder

Colorado Pawn, Inc

Chad’s Pawn Shop

Stuart

Lake Charles

Dan’s Discount Jewelry

Chad’s Pawn Shop

Fort Walton

Jennings

OREGON

Flash Cash Pawn Shop & Refinery

Chad’s Pawn Shop

Bend

Valley Jewelry & Loan

Coast to Coast Pawn

Orlando

Choice Pawn

Acadian Pawn Shop, Inc

Sulpher

Raleigh

Riverside Pawn NC, Co Eden

Triad Pawn Brokers Winston-Salem

OKLAHOMA

Poteau Pawn & Gun Shop Poteau

Bend Pawn & Trading Co, Inc Bend Pawn & Trading Co, Inc

MARYLAND

LaPine

Westminster

TENNESSEE

Shores Pawn & Jewelry

Frederick Jewelry & Loan

Clarksville

GEORGIA

MICHIGAN

Warner Robbins

Waterford

Money Mizer of Panama City Panama City Ocala

EZ Jewelry & Pawn, Inc Money Mizer of Macon Macon

Tom’s Pawn Central Waynesboro

Van’s Pawn Mart #2 Warner Robbins

Carroll County Jewelry & Loan

Frederick

Dixie Pawn Inc

Top Dollar PawnShop

TEXAS

Eagle Jewelry & Loan Houston

Grande Pawn

MISSISSIPPI

Houston

Tupelo

UTAH

NEW YORK

Salt Lake City

Choice Pawn, Inc

Buffalo Jewelry & Loan LLC Buffalo

56 | NATIONAL PAWNBROKERS ASSOCIATION | SPRING 2015

Crown Jewelers & Pawn, Inc

MEMBER NEWS

VIRGINIA

APPRENTICE PAWNBROKERS

Fredericksburg

Troy, AL

Liberty Pawn & Gold, LLC Superior Pawn & Gun Virginia Beach

Superior Pawn of Hampton Road Virginia Beach

Sonnie Parker

Franklin Park, IL

Wichita, KS

All Risks, Ltd

Hunt Valley, MD

INTERNATIONAL PAWNBROKERS

EcyclePawnBrokers.com

WASHINGTON

Georgetown, Grand Cayman, Cayman Islands

Walla Walla

Good As New

Walla Walla Pawn Shop

WISCONSIN

GNT Jewelry & Loan Kenosha

Kingston, Jamaica

INDUSTRY PARTNERS Advantage Software International

Hoover, AL

Se-Kure Controls Inc

David Perkins

CashWiz

Global Liquidators

Sparks, NV

Blackhawk Engagement Solutions Colleyville, TX

Pacific Northern, Inc Carrollton, TX

Decatur, AL

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 57

PAWN EXPO PRESENTER

Imperial Russian Precious Metals and the Zolotnik System HOW TO DETERMINE REAL IMPERIAL RUSSIAN ITEMS FROM MODERN FAKES By Hallmark Research Institute William Whetstone, Danusia Niklewicz, Lindy Matula

BY THE 17TH CENTURY, Imperial Russia

was using the unique system of measurement called the Zolotnik for assaying and hallmarking of precious metals. When examining Imperial Russian gold or silver items, it is important to know that a Zolotnik is both a measurement of weight and fineness. There are 96 Zolotniks in the Russian pound, and in the fineness system. A Zolotnik as a unit of weight is equal to 4.266 grams, and as a measure of fineness, 4 Zolotniks equals 1 karat of pure gold. To determine the fineness of gold or silver expressed in parts per thousand, divide the hallmarked item’s fineness by 96. For example, Imperial Russian 56 gold divided by 96 equals 583 or 14 karat. A silver item using the common Russian standard of 84, divided by 96 equals 875 fine. To be able to successfully separate real Imperial Russian period items from modern fakes, a historical background is useful in understanding the technical points of Imperial Russian assaying and hallmarking. In 1847, the primary standards established for domestically made gold items were 56, 72, and 84 Zolotniks. By the Assay Charter of 1861, the 84 standard was eliminated and the 82 standard was introduced. At the same time, a new standard of 92 or 958 fine was added. The Assay Charter of 1882 added the fineness of 94 Zolotniks, which was augmented in 1896 by the addition of a new 95 standard of

58 | NATIONAL PAWNBROKERS ASSOCIATION | SPRING 2015

William Whetstone and Danusia Niklewicz, both experts in their fields of jewelry and appraising, have joined forces to create the most dynamic presentations on hallmarks and hallmarking available today. William Whetstone is a historian, numismatist, goldsmith/jeweler, antique dealer, expert witness, past president of the ISA, and HRI’s Historical Director. Danusia Niklewicz, GG, FGA, ISA-CAPP, ASA, is a past instructor of the GIA, jeweler, independent appraiser, expert witness, and HRI Director of International Research. Along with Lindy Matula, Whetstone and Niklewicz founded the Hallmark Research Institute and authored the long awaited text “World Hallmarks – Vol. I. – Europe, 19th to 21st Centuries”. They are currently working on “World Hallmarks – Vol.II” which will cover hallmarking in the rest of the world. For more information, visit hallmarkresearch.com.

GOLD ZOLOTNIK CONVERSION

SILVER ZOLOTNIK CONVERSION

88 ÷ 4 = 22 KARAT 91 ÷ 96 = 948/1000 fineness, equivalent to (916/1000) 990 or 23.75 karat. These 88 ÷ 96 = 917/1000 were two of the highest 84 ÷ 4 = 21 KARAT assayed gold standards 84 ÷ 96 = 875/1000 (875/1000) in use globally, until the modern introduction of 999 56 ÷ 96 = 583/1000 72 ÷ 4 = 18 KARAT fine gold. (750/1000) In the mid to late 19th century, there were a 56 ÷ 4 = 14 KARAT Hallmark Research Institute number of important (583/1000) Whetstone, Niklewicz, Matula regulations concerning the alloys that could be used in any gold or silver item. modern assay that shows the presence of any Until the Assay Charter of 1896, implemented other base metal should be considered as a in 1898 and in use until 1908, the only metals definite indication that the gold item was not that were allowed to be alloyed with gold manufactured in the period of 1896 to 1927. were pure silver and red copper. Silver was The hallmarking changes of 1896 also permitted allowed to be alloyed only with red copper. that gold items weighing less than half a To establish the authenticity of any pre-1898 Zolotnik, or 2.13 grams, were not required to Imperial Russian item, a modern re-assay be hallmarked. should not reveal the presence of any other In 1908, one of the new changes was that alloyed metal. If it does, then it probably was the weight separation for large and small sized not manufactured before 1898. items changed from 1 Zolotnik to 2 Zolotniks or 8.53 grams. The lighter items used the shovel frame-shape, while items greater than 2 Zolotniks used the oval frame-shape. Many fake items have these weight differential marks blatantly used incorrectly. In 1927, Soviet Russia abandoned the use of the Zolotnik system and adopted the metric system with the fineness of precious metals only expressed in parts per thousand. The Assay Charter of 1896, for the first time, permitted the use of zinc and cadmium, along with silver and copper, as gold alloy metals. A

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 59

STATE NEWS

State Association Updates WHAT’S GOING ON ACROSS THE COUNTRY ARKANSAS

Tim Collier, President

Arkansas Pawnbrokers Association hogtim@windstream.net

House Bill 1544 was filed by Representative Dan Sullivan from Jonesboro just before the filing deadline for bills in the 90th General Assembly of the State of Arkansas. The bill, entitled “An act to regulate the practices and procedures of pawnbrokers; to help the rightful owner recover stolen property; and for other purposes”, was filed in an attempt to roll back the State Supreme Court decision handed down in the 2003 Landers vs. Jameson case. The old code required pawnbrokers to return suspected stolen merchandise to an owner who simply presented an affidavit stating the merchandise was theirs. The law was ruled unconstitutional on the grounds of deprivation of due process by a court of law to determine rightful ownership. This new bill would have essentially done the same thing but with more requirements placed upon the pawnbroker and no protection from prosecution in the event the merchandise wasn’t stolen property. The Arkansas Pawnbrokers Association (APA) visited with the sponsor of the bill, and presented evidence indicating the small percentage of merchandise that actually turns up in pawn stores based on the numbers provided by the electronic reporting company through which pawnbrokers upload their transactions.

60 | NATIONAL PAWNBROKERS ASSOCIATION | SPRING 2015

Initially, this didn’t seem to matter to the Legislature, so the APA followed up with all of the sponsors of the bill and representatives from the Attorney General’s office to discuss further. Along with our legal representative, we convinced the group that the best solution would be for the APA to redraft the legislation and present it to the group and the AG’s office for approval. At the time of this writing, the bill has passed out of the Judiciary Committee “do pass”. We are happy with the rewrite as it addresses all of our concerns. It includes dealers of second hand merchandise, not just pawnbrokers. Time will tell if the bill becomes law and if the Legislature has time to get the bill through the Senate and signed by the Governor before they recess for the year. Stay tuned for future issues. We will be monitoring everything on behalf of the pawnbrokers in Arkansas.

INDIANA

Greg Engstrom, President

Indiana Pawnbrokers Association gregengstrom@hotmail.com

Indiana is nearly done with this year’s legislative session with little change. The Board of Directors of the Indiana Pawnbrokers Association (IPA) voted to embark on getting the 1935 vintage statute prohibiting the pawning of handguns repealed. We have done some ground work, and for next session, it is going to be a leap to find a sponsor to get a bill passed. We have encountered no opposition, but have more questions as to why

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www.checkconsultants.com SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 61

STATE NEWS the statute exists at all. We will need the support of many Indiana pawnbrokers to get that changed. The Midwest Pawn Convention (www.midwestpawnconvention.org) will be May 15-17 in Bloomingdale, IL (near Chicago’s O’Hare Airport). The dates of the Pawn Boot Camp (www. pawnbrokerbootcamp.com) are October 19-21 in Indianapolis, IN. This intensive camp is designed to help jumpstart newer employees or to expand on knowledge for the front line pawn clerks. The Indiana Pawn Forum will be Sunday, July 19, at the Embassy Suites North, Indianapolis, IN. This one-day event addresses regulation and legal issues.

KANSAS

Robin Tummons, President

Kansas Pawnbroker Association hsofstuartltd@yahoo.com

The annual Kansas Pawnbroker Association (KPA) Conference is May 30, 2015, in Wichita, KS. Industry seminars will keep you informed of tricks and tips to help you create profit in your store. Networking with others across the state will benefit you by increasing your knowledge base to be on top of your game. A conference room and a block of rooms have been reserved at the Residence Inn on Greenwich Road. Rooms are limited due to the State Track Meet the same weekend. Mention KPA to get a reduced room rate. For reservations, call (316) 6827300; deadline is May 8. For questions, call Robin Tummons at (913) 831-1484.

The OPA officers for 2015-2017 are: • President, Lou Tansky • Vice President, Eric Johnson • Treasurer, Raph Tincher • Secretary, Rhonda Johnson We welcome back all returning board members and thank them for their dedication and support. As of this writing, we have had no adverse legislative activity that needed our attention. We continue to watch for any attempts to push through legislation that we feel may be harmful to independent pawnbrokers in the state. With the 2016 Republican National Convention coming to Cleveland next year, it is a good time to remember the importance of maintaining a good relationship with your elected officials. Regardless of party affiliation, all grass roots political involvement will pay off in handsome rewards. Legislators are eager to talk with their constituents. Keeping in contact with them reminds them of your interest in the community. Please contact any of the officers for guidance in communicating your concerns to your elected representatives.

OHIO

Lou Tansky, President

Ohio Pawnbrokers Association lou@unclebenspawnshop.com

The Ohio Pawnbrokers Association (OPA) held their annual membership meeting April 12, 2015, along with a continuing education seminar.

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Lou Tansky (r), OPA President, presented the OPA Pawnbroker of the Year Award to Ric Blum (l) for his dedication and selfless duty to the pawnbrokers of Ohio.

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 63

COMMUNITY INVOLVEMENT (From page 43)

Where Are They Now?

of Montevallo in Montevallo, AL, and plan to apply for medical school after completion of the Bachelor of Science pre-medicine track at UM. It has been my lifelong goal to practice medicine in a rural setting and provide care to an underserved population. When I’m not working or attending classes, I enjoy spending time with friends, coworkers, and family.

”

ABIGAIL DUNHAM Appleton, WI

Abigail Dunham was the recipient of a $1000 FBL scholarship in 2011. She graduated from Bethel University in St Paul, MN, with a Physical Education K-12 degree. She is currently working in the Eden Prairie school district in Minnesota teaching physical education to elementary school students. Abigail was sponsored by Mister Money, Appleton, WI. scholarship allowed me to focus on “myTheeducation (my class work, projects, and teaching). Because of this scholarship, I did not have to worry as much about how I would pay for my school, rather I was allowed to focus more on school and my dreams of my future. Now that I have a couple of years of teaching experience under my belt, I plan to pursue more education to get my masters in health education (emphasis in nutrition).

”

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WESLEY STRONG Sylacauga, AL

Wesley Strong attends the University of Alabama at Birmingham in Birmingham, AL. He plans to graduate in April 2016 with a degree in Sociology and a minor in Business Administration. Wesley has been the recipient of four FBL scholarships. His sponsor is Sylacauga Pawn in Sylacauga, AL. The FBL scholarship helped me be able to “continue going to school with the money I received from it. It was difficult paying for school because my mother and grandmother were the only ones helping me. With the FBL scholarship I was able to relieve some pressure from them about paying for school. I received a scholarship from the Army ROTC program at the University of Alabama at Birmingham during my sophomore year. This scholarship, along with the FBL scholarship, helped pay for the rest of my time at school. When I graduate next year, I will be a Second Lieutenant in the United States Army. I would like to thank the FBL scholarship committee for helping me pay for school and start the process of building a successful life for myself and my family. I am truly thankful for your support over these last three years.

”

Index of Advertisers ADVERTISER Page

ADVERTISER Page

Aaria (248) 961-0506 AariaDiamonds.com

Hoover & Strong (800) 759-9997 HooverandStrong.com

Rolland Safe & Lock (800) 225-2984 Rslc.net

ABC Diamond Buyer (586) 354-7274 ABCDiamondBuyer.com

International Gemological Institute

Stallcup Group (817) 479-3880 StallcupGroup.com

Bluestone Trading Back Cover (888) 800-BLUE (2583) Bluestone-Trading.com Bravo Store Systems (888) 407-6287 BravoRevolution.com

The Buyers (562) 945-7276 TheBuyers.com

CompuPawn (866) 545-9868 CompuPawn.com

Data Age (888) 949-7296 PawnMaster.com

Dillon Gage (888) 436-3489 DillonGage.com

Garfield Refining (800) 523-0968 GarfieldRefining.com

Garrett Metal Detectors (800) 527-4011 Garrett.com

Gemological Institute of America 63

(800) 421-7250 Gia.edu

IGIonline.com

Inside Front Cover

Marshall & Sterling Insurance (845) 454-0800 MarshallSterling.com

Stuller, Inc (800) 877-7777 Stuller.com

North American Metals (800) 773-1626 NorthAmericanMetals.com

The Trendz (866) 337-7464 TheTrendz.biz

20, 21

Pacific Northern (888) 888-5868 PNDisplay.com

United Exports (305) 707-7937 UnitedExportsNA.com

Padmavati Exports (212) 869-0544 PadmavatiExportsinc.com

Palak Diam (213) 228-0077 PalakDiamond.com

Pawnshop Academy (210) 787-2536 PawnShopAcademy.com

Private Asset Loans (469) 729-9192 PrivateAssetLoans.com

White Pine Trading (646) 666-7588 WhitePineDiamonds.com

Rapaport Auctions (212) 354-9800 RapaportAuctions.com

Worldwide Diamond (213) 622-2191 WWDiamond.com

RMF Consulting Group (866) 204-7209 CheckConsultants.com

United Precious Metal Refining Co 40

(800) 999-3463 UnitedPMR.com

Watch Certification Services (888) 937-9272 WatchCSA.com

Wexler Insurance Agency Inside Back Cover

(800) 432-1853 WexlerInsurance.com

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

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 65

PAWNDER THIS

Movie Magic

MOVIES, FOR ME, MAKE THE WORLD GO AROUND. Always

have and always will. Movies make us laugh (Planes, Trains & Automobiles), teach us history (Schindler’s List), help us understand people (Ali), and are just great fun (Armageddon). Some even scare us so badly that we haven’t gone into the ocean since seeing them (Jaws). If you have a group of friends like I do, movies are one of three constant arguments. The first is about sports, the second is about the best route to work, and the third is about the best, worst, funniest, scariest, toughest, coolest, dumbest movies. I’ve been part of heated debates on which is the best death scene in movie history (Saving Private Ryan where the American soldier is killed with a knife to the chest after a fierce struggle), the coolest explosion (Death Star in Star Wars), or the biggest butt whipping (Sonny Corleone beating his brother-in-law with the lid of a garbage can in Godfather). You get the picture. And when we’re not arguing, we’re quoting movie lines. How long does it take for your weekend foursome to start quoting Caddyshack? How often does one of your buddies evoke a line from Animal House when talking about his college days? And isn’t Bull Durham, Field of Dreams, and Tin Cup (all Costner classics) part of your everyday quote board? After

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all, movie quotes guide every facet of our lives. “If you’re good at something, don’t do it for free.” - The Joker in Batman: The Dark Knight. Sure, he was the baddest of bad guys with some amazingly scary make-up, but the Joker is absolutely correct. Everyone reading this column knows that all too well. “You’re killing me, Smalls.” – The Sandlot. This is a quote that you can use every day if you like. Someone surely is bugging you right now. Please feel free to let this quote fly. “Quit thinking so much. It can only hurt the team.” – Crash Davis, to his knucklehead pitcher, in Bull Durham. This fits into the same category as The Sandlot quote since it can be used to address a coworker, family member, or just someone you bump into at the grocery store. Ignorance is bliss for some around us. “Fear causes hesitation, and hesitation will cause your greatest fears to come true.” – Bohdi in Point Break. Talk about your guilty pleasures. This movie is likely on TNT right now and I’d probably watch it. I just can’t turn away from Keanu Reeves and Patrick Swayze in this FBI agent-turned-surfer dude to bust a group of surfer dude bank robbers. But this quote from Swayze’s too-cool-for-school character actually does ring very true. Whether you’re starting a new business or playing a game of

CALENDAR OF EVENTS

pick-up basketball, going full speed ahead often is the way to go. “Never rat on your friends and always keep your mouth shut.” – Jimmy Conway, Robert DeNiro’s character, in Goodfellas. The mob teaches us a lot about life, and we don’t even have to be running an illegal gambling ring to make sense of it all. This sentiment should follow you from junior high forward. “There’s no crying in baseball.” – Jimmy Dugan, Tom Hanks’ character, in A League of Their Own. Tough love is sometimes the best way to manage a baseball team filled with ladies or manage your relationships. “Show me the money!” – Rod Tidwell (Cuba Gooding Jr.) in Jerry McGuire. The boisterous wide receiver in this awesome movie about a sports agent and his meltdown said a mouthful with four simple words. “I love the smell of napalm in the morning. Smells like victory.” – Bill Kilgore, Robert Duvall’s character, in Apocalypse Now. OK, I admit that I’m not sure how you can artfully weave this quote into daily conversation, but I’ve always loved the line and the movie. Duvall’s character in this strange Vietnam War movie is one of my all-time favorites. “What we’ve got here is failure to communicate.” – Strother Martin’s character in Cool Hand Luke. Wow, I’ve probably used this one more than any other movie quote. Even more than Caddyshack lines. Yes, this can be used on a daily basis, guaranteed. “My mama always said that life is like a box of chocolates . . . you never know what you’re gonna get.” – Forrest Gump. Who didn’t like this movie and who hasn’t echoed this quote? Not sure any movie line sums up our daily existence better than this one. “I’m going to make him an offer he can’t refuse.” – Vito Corleone, The Godfather. Yes, another mob movie. Actually, the best-ever mob movie and possibly bestever movie. “Nothing is over until we say it’s over. Was it over when the Germans bombed Pearl Harbor? No!” – John Belushi’s character in Animal House. This is the perfect quote to turn to when things seem to be going in the wrong direction. Ok, ok, I could go on for several pages. And, yes, I admit that I’ve watched way too many movies over and over again. How else can you pluck the best quote at the ideal moment? This stuff is important. Ironically, I’ll end the column with my favorite quote from one of my favorite TV characters, Mr. Spock. “Live long and prosper.” That says it all.

5/2015 2015 MIDWEST PAWN CONVENTION MAY 15-17 Chicago Hilton/Indian Lakes Resort Bloomingdale, IL Contact Ron Stempkowski: 1ila@comcast.net midwestpawnconvention.org

JCK LAS VEGAS

MAY 29-JUN 1 Mandalay Bay Resort & Casino Las Vegas, NV lasvegas.jckonline.com

7/2015 PAWN EXPO 2015

JULY 7-9 The Mirage Hotel & Casino Las Vegas, NV Contact Lindsay Wilson: PawnExpo@NationalPawnbrokers.org PawnExpo.com

10/2015 CALIFORNIA PAWNBROKERS ASSOCIATION (CAPA)

OCTOBER 23-25 The Westin Long Beach Long Beach, CA Contact Kim Andosca: kandosca@amgroup.us californiapawnbrokers.org

11/2015 PAWNCON 2015 PAWNBROKERS EDUCATIONAL CONFERENCE AND TRADESHOW

NOVEMBER 5-8 Westin Atlanta Perimeter North Atlanta, Ga

SPRING 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 67

COMMUNITY INVOLVMENT (From page 13)

Never Give Up

members of her church heard his story, they made it their mission to help him get his thesis published. Although they couldn’t get Roger his Ph.D., they did have his research. They retyped the now-faded manuscript and raised over $1000 to have his book published. Their mission was accomplished in November 2013. NPA’s Executive Director, Dana Meinecke, and her son, Matthew Griewe, visited with Roger this past February. During their discussion with the sharp-minded Roger, they learned the pawn industry has changed very little in the last century. The types of items pawned are still relatively the same – tools, jewelry, and clothing,

and the problem of illegal pawn stores (known in the 1800’s as dolly shops) still exists. Dana said, “It was extremely touching and quite an honor to meet Roger. As extraordinary as his life’s story is, the authenticity, passion, and love for his research and dearest Adelaide, are clearly evident to this very day. Roger serves well as an ambassador for our industry and as an inspiration to those who love unequivocally.” Roger’s book will be available for purchase at Pawn Expo 2015 and also on Amazon.com. If you’re in the San Francisco area, and would like to visit with Roger to learn more about the history of pawnbroking in Victorian London, email Dana@NationalPawnbrokers.org.

BUSINESS SENSE (From page 28)

New Money, New Challenges

The number of bitcoins generated per block is set to decrease geometrically, with a 50% reduction every four years. The result is that the number of bitcoins in existence will never exceed 21 million. This decreasing-supply algorithm was chosen because it approximates the rate at which commodities, like gold, are mined. Users who use their computers to perform calculations to try and discover a block are thus called miners. The UK, U.S., and even the Isle of Man, have begun to regulate digital currencies. The U.S. has issued guidance indicating that, in some cases, digital currency will be treated as wire transfer, and anyone selling it will be required to maintain a wire transmitter’s license. Even states such as NY are clamping down with their own regulations and requiring licenses to process these transactions.

68 | NATIONAL PAWNBROKERS ASSOCIATION | SPRING 2015

Bitcoin is trading at approximately $231.00 not bad considering it used to be worth $0.30. It was at $1,900 at one time. In 2010, a gentleman ordered a pizza with bitcoin and challenged anyone to get him the pizza delivered. He offered to pay in bitcoin (10,000) for the two pizzas. Today, those pizzas are worth over 2.5 million dollars. Now that’s an expensive pizza pie! What about digital currency for pawnbrokers? Imagine being able to take in a loan payment or making a loan on digital currency. Anything is possible in the digital age. So be prepared, because as the use of paper money declines, new and exciting ways to spend will take place. First credit and debit cards, now digital currencies can be tied to an account via your cell phone. Watch out world – it’s happening now!

WEXLER INSURANCE AGENCY, INC.

INSURING

PAWNBROKERS

SINCE 1968

The Best Coverage at Competitive Prices Available Coverages: v Pawned & Owned Jewelry & Guns

No Coinsurance for: v Pawned & Owned Guns & Jewelry or Other Stock

v Pawned & Owned Other Stock

v Business Personal Property

v Memo

We pay based on your choice of the following:

v Products Liability for Guns & Ammunition

v Actual cost of the loan plus legally accrued interest

v And many more see back page

v 2 or 3 times pawn value

Wexler Insurance Agency, Inc. 1120 Ponce de Leon Blvd. Coral Gables, FL 33134 Tel: 305-445-5050 Fax: 305-448-8189 Nationwide: 1-888-4-WEXLER 1-800-432-1853 E-mail: info@wexlerinsurance.com

v Replacement Cost

New York Office 580 Fifth Avenue Suite 715A New York, NY 10036 Tel: 212-391-5211 Fax: 212-391-5212 California Office 2711 East Coast Hwy. Suite 106 Corona del Mar, CA 92625 Tel: 949-723-3835 Fax: 949-723-3839

Ohio Office 7363 E. Kemper Rd. Suite C & D Cincinnati, OH 45249 Tel: 513-891-2131 Fax: 513-891-2132

Ask about our exclusive Workers Comp program for Pawnshops which is available in all 50 states.

CALL 1-800-432-1853 FOR AN IMMEDIATE QUOTE OR VISIT US AT WWW.WEXLERINSURANCE.COM

WINTER 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 1

We rock, because here in Cleveland we take buying modern and vintage jewelry and diamonds seriously. Very seriously. You roll, because no matter where you’re located you’re treated to great prices, free shipping and same day wire payments. Start Rock & Rolling today by visiting us online or calling us at 888 800-BLUE (2583).

888 800-BLUE (2583) • www.bluestone-trading.com • webinfo@bluestone-trading.com WINTER 2015 | NATIONAL PAWNBROKERS ASSOCIATION | 1