National Pawnbroker - Spring 2019 by National Pawnbrokers Association

Pawnbroker National

Official Publication of the National Pawnbrokers Association

Arkansas Pawnbrokers Struggle with Legislative and Legal Challenges UNDERSTANDING THE MILLENNIAL MINDSET USING TECHNOLOGY TO DRIVE CUSTOMER SUCCESS

SPRING 2019

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message from the president

Show Your Support

Tim Collier NPA President Tim@Pacerltd.com

SINCE THE LAST TIME I shared information with you, another busy three months have flown by. The Dixie Pawnbrokers convention is coming up the end of this month in Orange Beach, AL, and the NPA Legislative Conference is in April in Washington, DC. The longest government shutdown in the history of the country took place, but for some reason, it really didn’t surprise me too much. With the bickering amongst the parties in DC, I’m surprised anything gets done. The NPA, however, has been super busy working on new and exciting ideas to make the association better. The board and staff have met several deadlines and achieved many of the goals set at the strategic planning session last year. Another goal will be met when a pilot program with board members and members-at-large travel to North Carolina for one-on-one visits with pawnbrokers across that great state. We will be sharing exciting news about Pawn Expo and discussing new benefit ideas to encourage membership in the NPA. Speaking of Pawn Expo, be sure to mark your calendars for July 9-11, 2019, as we will be enjoying our final year at The Mirage. We have some new ideas for a learning experience as well as a week of fun lined up for you in Las Vegas. The lineup of speakers is again star-studded beginning with Captain Richard Phillips who will be our keynote speaker. You’ll remember the story about his ship being hijacked by Somali pirates in April 2009. He has a wonderful message to share about never giving up and always being alert to your surroundings. Sally Morrison from DeBeers Lightbox will be the general session speaker sharing her insight into lab-grown diamonds and how they will affect the pawn industry. One last tidbit I want to share is there will be a session on social media with pawnbroker experts from across the country. The association continues to look at offering more new and relevant benefits which will help pay for your membership in the NPA, such as a buyer’s group, one-day educational seminars across the country for members, and possibly even some semblance of a “pawnbroker university”. All these ideas are being discussed to determine their feasibility. With all the chaos in DC, now is the time for all of you with an interest in the government to show your support by attending the NPA Legislative Conference April 30-May 1 in Washington, DC, at The Liaison Capitol Hill Hotel. It’s more critical than ever for you to advocate for the industry, especially with Chairwoman Maxine Waters in the head chair of the House Financial Services Committee. I’m sure she will try to roll back any advances that were made by her Republican colleagues while they were the majority party. We continue to get good input from pawnbrokers across the country, so keep those cards and letters coming. This is your association and we need all the input we can get to continue to provide you with everything you need to be successful!

SPRING 2019

NATIONAL PAWNBROKERS ASSOCIATION

contents Spring 2019

Cover Story Arkansas Pawnbrokers Struggle with Legislative and Legal Challenges 20

HIGHLIGHTS Understanding the Millennial Mindset Using Technology to Drive Customer Success

Government Relations

Every Pawn Has a Silver Lining

Advocate for a Seat at the Table

Membership

IN THIS ISSUE Message from the President

Message from the Executive Director

CPP Is Going Virtual

Pawn Perfect:

Business Solutions

NPAâ&#x20AC;&#x2122;s Annual Awards

18 24

New NPA Website

2019 State Association Contacts

Board of Directors Nominations

How Does the New Bump

New NPA Members 57

Fire Stock Classification

State Association Updates

Affect Pawnbrokers?

Aging Inventory

Multi-store Owner Profile

A Decade of Giving

Future Business

Leaders Applications

52 50

Compliance

The Compliance Monster:

Myth vs. Reality

Young Pawnbroker to Watch

Book Corner

Pawnder This

Calendar of Events

Advertiser Index

Events NPA 2019 Legislative Conference

Pawn Expo 2019

NATIONAL PAWNBROKERS ASSOCIATION

Douglas Braswell Braswell & Sons Pawnbrokers Tim Collier Pacer, Ltd Robert Frimet RMF Consulting

Philip Milks Orchid Advisors Emmett Murphy 3 Click Media Shuan Sim The Rapaport Group Jerry Whitehead Pawnshop Consulting Group, LLC Jason Wilson Riverside Pawn

Pawnbroker Industry Partner

Cliff Andrews CapCity Advocates, LLC

Rudy Klancnik

Member Spotlights

Community Involvement

Contributors for this issue of National Pawnbroker

SPRING 2019

The Ins and Outs of the Diamond Recovery Process By Jack Brown - Opera0ons Manager, Mid-States Recycling & ReďŹ ning The process of diamond and gemstone recovery from karat gold jewelry scrap is far more complex and time-consuming than a direct melt and assay recovery. Jewelry that contains recoverable diamond and gemstone melee will always yield a much higher value, as long as the refiner you choose is implementing sound, wet chemistry processes that minimize the potential for mechanical losses of metal and damage to your valuable gemstones. One should expect the refiner to charge higher processing or treatment fees for this service as well as allowing a little more time for final results, but in the end, the additional value you'll receive from the sale of your stones will more than outweigh any inconvenience. The process we use at Mid-States involves a pre-treatment of the jewelry scrap in a heated reaction of dilute nitric acid. This initial digestion attacks the outer surface of the metallic alloy, reducing base metal and excessive silver, while creating more porosity in the metal for secondary dissolution. The pre-digestion also minimizes the amount of silver chloride that can coat the metal surface of the jewelry, which impedes the efficiency of the secondary reaction. The secondary digestion in aqua regia (mixed nitric and hydrochloric acids) is where the jewelry alloy becomes fully soluble into solution, thereby releasing all the diamonds and gemstones for later filtration. This allows for easy, undamaged recovery. To effectively precipitate the gold, now in solution, we continue boiling the aqua regia while continuously adding additional hydrochloric acid to the reaction. Until we drive off all nitric acid contained in the reaction, it is not possible to effectively precipitate 100% of the gold now soluble in the gold chloride solution. Once the reaction is complete, the solution is filtered, stones are recovered, and the process of precipitating the fine gold begins. To

precipitate the gold, we inject sulfur dioxide gas into the chloride solution. During this process, the gold converts to high purity fine gold sponge and accumulates at the bottom of the recovery vessel, then followed with additional filtration to recover those fine gold solids. The solution is tested to verify the completeness of the reaction until no residual gold remains. The spent acid solution is further treated and neutralized for proper disposal. The final stage of the process focuses on your stones and final melting. Our lab technicians perform the tedious task of hand-sorting all diamonds and colored gemstones, removing small particles of un-dissolved metal and other debris. All removed particulate is added back to the fine gold sponge and forwarded for final melting and assaying. The stones are put through final cleaning and if requested by the customer, acid-etched to frost the outer surface of CZ's for easier final sorting. Mid-States does not purchase diamonds and gemstones, as this is an area I've always felt is a conflict of interest. There are several independent diamond buyers, well known among the pawn community, that are highly reputable and should be consulted for this service. We are fortunate to share an office with one such dealer - Jay Kantor of Jay Pays - who can provide a free assessment and offer on your stones. This also saves you the additional shipping fees for returning your stones. There are no shortcuts to the process described above, as it is very laborintensive involving multiple steps. There are costs and dangers working with these acids including controlling and treating fumes as well as a long-term environmental responsibility that cannot be avoided. There are refiners we compete against that will offer this service at bargain basement prices as low as $100 or less. My frank suggestion is that it cannot be properly done at these rates. Please contact myself or any of our sales associates for more information on our diamond recovery service and terms. Next Issue: How to Protect Yourself from Fake Bullion Purchases.

MID-STATES RECYCLING & REFINING 1841 BUSSE HIGHWAY DES PLAINES, IL 60016

847. 298.0010

MIDSTATESRECYCLING.COM

message from the executive director

NPA staff Dana Meinecke

2019 Is Off and Running! WHILE MOST PEOPLE were celebrating the holidays, NPA was busy with a couple of big projects – updating and launching a new website and converting to a new membership database. The website has a new and fresher look and is more streamlined allowing you to easily find the information you are seeking. All of our online services are now combined into one dynamic, easy-touse website. We have also incorporated the Pawn Dana Meinecke Expo website, so it’s now all under one “roof.” As a NPA Executive member, you can now update your address, change Director contact information, change your password, or make a payment. You can even customize your business profile page so users can learn more about you! We hope these updates and changes will be as seamless as possible. If you need assistance, please contact us. We want you to be as happy with the new site as we are! In the midst of all this, Helen Moore and the convention committee have busy putting together Pawn Expo 2019 with new speakers, education sessions, and entertainment. This year’s convention and trade show will provide you with “Waves of Change” showing you how to learn more, do more, and be more successful. Our keynote speaker will be none other than Captain Richard Phillips, who will be sharing the dramatic story of his ship’s takeover by Somali pirates and their heroic rescue. The convention dates are July 9-11, and it will again be held at The Mirage in Las Vegas. See pages 30-31 for more details! NPA’s 2019 Legislative Conference is set for April 30-May1 in Washington, DC. With so many new congressional members, this is the ideal time to meet first-hand with these newly-elected leaders. Forge some new relationships and let them know who we are and what we do. Some important dates for you to remember are: nM arch 9 – last day to notify NPA of your interest in a seat on the Board of Directors; applications are due March 29 nA pril 20 – application deadline for a Future Business Leaders scholarship nA pril 20 – last day to submit nominations for NPA’s Annual Awards (Charles R. Jones Lifetime Achievement, Pawnbroker of the Year, Industry Partner of the Year, Outstanding Community Relations, Young Professional of the Year, and Outstanding Pawn Industry Image) nM ay 24 – early bird cut off date for Pawn Expo registration Finally, we want to extend a big thank you to the many members who have renewed their membership for 2019. When your renewal date comes around, please remember that we have a monthly payment option available. Your support is vital to the NPA and we appreciate it!

NATIONAL PAWNBROKERS ASSOCIATION

SPRING 2019

Executive Director Dana@NationalPawnbrokers.org

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

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

Brittany McCorkle Member Services Program Coordinator Brittany@NationalPawnbrokers.org

Terrie Coates Administrative Assistant Terrie@NationalPawnbrokers.org

Mailing Address: PO Box 508, Keller, TX 76244

Physical Address: 2920 W Southlake Blvd, Ste 120 Southlake, TX 76092 Phone: (817) 337-8830 Fax: (817) 337-8875 NationalPawnbrokers.org National Pawnbroker is the official publication of the National Pawnbrokers Association (NPA), and is published quarterly. No part of this publication may be reproduced without the written consent of Dana Meinecke, NPA Executive Director. Sale or distribution of any or all of the contents of this magazine is prohibited. All rights reserved. For more information on advertising or to obtain additional copies of National Pawnbroker, call (817) 337-8830, or send an email to Margie@NationalPawnbrokers.org. For membership information, email Brittany@NationalPawnbrokers.org EDITOR’S NOTE: This publication is designed to provide accurate and authoritative information on the subject matter covered. It is provided and disseminated with the understanding that the publisher is not engaged in rendering legal or other professional services. If legal advice is required, the services of a competent professional should be sought. Expressed opinions are those of the author and do not necessarily reflect the views of ownership. © 2007-2019 National Pawnbrokers Association: PO Box 508, Keller, TX 76244, (817) 337-8830 NationalPawnbrokers.org EDITOR: Margie Swoyer DESIGNED BY: SPARK Publications

government relations

Every Pawn Has a Silver Lining

Kathy Pierce Chairman NPA Government Relations Committee

I AM WRITING THIS IN JANUARY during the government shut down. It’s the time before the tax returns and when the Christmas bills start showing up in the mailbox. It’s a tense time for our customers. We have our regulars and some of us are meeting federal government workers for the first time who are a little lost. Our regulars are calling and asking for more time knowing their tax return will be here soon. So, most of us are stretching the stores as much as we can knowing the money is almost here. I dread January. It’s cold (at least where I live) and not much to look forward to other than spring break. This year though, it’s different. I’m optimistic for our industry. We have been in the news for the past couple weeks and it has not been bad news. Many of you have been offering our federal employees low or interest-free loans for 30 days to help them get through the shut down. Pawnbrokers made the New York Times and Inside Edition!

NATIONAL PAWNBROKERS ASSOCIATION

SPRING 2019

I want to thank all of you who helped our customers across the nation get through January. Spring semester for college students, holiday bills, rent, car payments, groceries – all of it was January, and our fellow pawnbrokers helped get customers through the tough times. Not just this January, but every month of every year for hundreds of years. I hope to meet many of you at the NPA Legislative Conference in Washington, DC, April 30-May 1, 2019. You will have the opportunity to meet with your elected representatives and their staff from your state and tell them your stories as well as your customers’ stories. We are there when they need us. The banks cannot write a $50 loan, but we do, every day. Hope to see you there. For more information, go to NationalPawnbrokers. org/legislative-conference.

government relations

Advocate for a Seat at the Table or Risk Being on the Menu

by Cliff Andrews, NPA Lobbyist

THE IMPORTANCE OF ADVOCACY cannot be overstated. We are all advocates, but may not know it. In everyday life we work to promote various values, standards, positions, processes, products, and services, etc. We strive to advance these tangible and intangible needs to benefit us personally and often to benefit others including our families, businesses, communities, state, and country. Indeed, human nature and the world in which we live demand that we advocate to survive. This article focuses on advocacy through the lens of federal government relations to provide an overview of what encompasses advocacy and how pawnbrokers can be involved. COMPONENTS OF ADVOCACY

The primary goal of federal advocacy is successfully influencing policy decisions by the government. Typically, this objective means passing favorable laws or defeating or weakening harmful legislation or regulations to a particular industry or cause. This task is most effectively achieved by constituents (i.e. voters) forming personal bonds with lawmakers. These types of relationships are called grasstops. Once established, grasstops individuals are in a trusted position to persuade elected officials and their staff. In addition, to grasstops, grassroots is one of the most common forms of advocacy used to exert influence on the promulgation of government laws and regulations. With grassroots, a collective group of individuals (i.e. NPA members) share common policy objectives and work en masse to advance these goals. Grassroots can be extremely effective, but it is a numbers game, making strong turnout via letters, phone calls, and face-to-face meetings essential. Successful grasstops and grassroots bases are always at the top of the hierarchy of 8

NATIONAL PAWNBROKERS ASSOCIATION

SPRING 2019

influence because they represent voters that are passionate, informed, and prepared to take action. However, it is important to touch on other components of federal advocacy including consultant lobbyist professionals, coalitions, and political financial contributions. Lobbyists are typically hired for their knowledge of the lawmaking process and their connections to key lawmakers and other relevant parties. They often provide a means for trade associations to have representation in Washington, DC, essentially serving as the eyes and ears of the association, especially for groups located in different states. In addition to hired lobbyists, increasingly associations and other types of linked groups engage in building coalitions of like-minded associations and people to help achieve shared policy objectives. Coalitions can provide a greater show of force and can leverage various resource strengths of coalition members all coordinated toward a common strategic goal. Lastly, financial contributions are a big part of the advocacy process. Generally, these contributions come from individuals directly to candidates and from individuals to Political Action Committees (i.e. NPA PAC), which then donate to a wide range of candidates. Each election cycle is becoming more expensive, and elected officials spend much time seeking financial support to ensure they can fund competitive campaigns. WHY ADVOCACY IS IMPORTANT

Now that the groundwork has been provided on the basic components of advocacy, letâ&#x20AC;&#x2122;s examine why it is important to advocate. The obvious answer has been covered in that people advocate to pass or stop laws and regulation. However, the more profound answer is reflected in the title of this article. We advocate to be a known presence with strong personal relationships with lawmakers

that allow us to have a seat at the table of government policymaking to ensure that we do not end up on the menu. To be clear, seats are limited, and there are many competing interests all vying for lawmakers’ time. Furthermore, with the political balance of power constantly shifting, it is increasingly important to be an advocate to make sure your voice is heard at the table. Consider some of the following dynamics that color the landscape in Washington, DC. The last election cycle produced a power change in Congress with 10 new Senators and around 100 new House members. There is a total of 535 Members of Congress with 100 serving in the U.S. Senate and 435 serving in the U.S. House of Representatives. The House of Representatives averages 138 legislative days in session while the Senate averages 162 in-session days a year. According to GovTrack, since January 2017 in the 115th Congress, over 11,000 bills were introduced with only three percent being signed into law. These bills are worked on by a sea of special interests. According to an analysis conducted by the Center for Responsive Politics, at the end of last year, $3.34 billion was spent on lobbying activity. And there were 11,444 registered lobbyists in 2017, which does not include the tens of thousands of other people who are not formally registered but knock on the doors of Congress. These factors, along with competing complex public policy choices, demand leadership from constituents to take action to be at the table. However, inertia can be a destructive force where often we know what is right and that we should pursue a course of action, but for various reasons, do not act. We find excuses including thinking that someone else will do it, saying we are too busy, or telling ourselves that we are just one person, so does it really matter? It matters, and every voice counts! The more people making noise for a particular cause creates a louder echo chamber, and thus, is more likely to be noticed by Congress.

WHAT YOU CAN DO

In this sense, it is imperative that pawnbrokers engage with their elected officials. You are your best representative, so empower yourself to be an advocate for your pawn business. The good news is that most readers of this article have already taken one of the most important first steps and that is joining the National Pawnbrokers Association. Most successful industries have strong national trade associations with active members. The NPA has many great resources to provide pawnbrokers with the tools needed to interact with elected officials and to advocate favorable policy positions for pawnbrokers. Another great step is working to become a grasstops key contact with your elected officials. This goal can be achieved by arranging meetings with Senators and Congressmen at their state offices. After meeting them at their office, suggest they come do a tour of your store. Onsite visits provide a great opportunity for elected officials to see first hand how you help people. In addition to office or store tours, attending local fundraisers or hosting a meet and greet with an elected official is a great way to grow your relationship. The NPA can help guide you through the process and protocols. In lieu of becoming a key contact, participating in grassroots calls to action helps the advocacy process during times of urgency for the industry. In such scenarios, the NPA will reach out to its members to ask that they call and send letters to their elected officials on a particular issue. The NPA provides all relevant materials. Also, attending the annual legislative conference in DC is a great way to wade into the advocacy arena. The NPA makes this event turnkey for attendees to meet with their members of Congress. Lastly, no matter which avenues of advocacy pursued, stay in contact with your elected officials throughout the year. The more touches you have builds the relationship and your relevance to being invited to participate at the table.

No matter which avenues of advocacy pursued, stay in contact with your elected officials throughout the year. The more touches you have builds the relationship and your relevance to being invited to participate at the table.

Cliff Andrews is NPA’s Lobbyist and can be reached at GRC@NationalPawnbrokers.org.

SPRING 2019

NATIONAL PAWNBROKERS ASSOCIATION

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young pawnbroker to watch

Tyler Finkelstein General Manager, Capital Pawn Shop, Inc, Montgomery, AL Years in the pawn industry: 19 How I got my start in the industry: My father opened Capital Pawn Shop in downtown Montgomery, AL, in 1983. I started working at the store as a child to spend more time with my dad and to make extra money. My top three goals for 2019 are: to spend more time with my family, lose weight, and continue developing systems to help the business run as efficiently as possible. The best advice I have ever received: “Son, if it was easy, everybody would be doing it,” by Luke Finkelstein. Greatest accomplishments in my pawn career so far: n I have been blessed to be a part of our family

business long enough to see us grow from a single store operation into a multi-store operation. n I led our company to host customer appreciation

days to give back to our customers and our local community. n Since becoming General Manager two years ago, our

business has been voted “Best Pawn Shop of the Year” for all counties in which we conduct business. Industry certifications held: Two of my 2019 professional goals are to begin taking the CPP certification and GIA classes. My media mix n Musical artists: I do not listen to much music. If I do,

it is either christian or traditional country. n Social Media: LinkedIn n TV Shows: Shark Tank, The Profit, Last

Man Standing n My role model is: Jesus

NPA members would be surprised to learn that I: served as Chairman of the Montgomery Capital Rotary Club Activity Committee helping the local

Tyler and Lauren Finkelstein with their Golden Doodle, Roger

When I’m not at work: I enjoy spending time with my wife, Lauren, and my Golden Doodle, Roger. I also enjoy going to church, grilling, and fishing.

community and boosting the public perception of the

If I wasn’t a pawnbroker, I’d be: a high school

pawn industry.

football coach.

SPRING 2019

NATIONAL PAWNBROKERS ASSOCIATION

pawnbroker spotlight

Arlington Loan CHOSEN BY PAWN AFTER LEARNING THE PAWN BUSINESS from his uncle, Kelly Swisher opened Arlington Jewelry and Loan, Inc. in 2002. The store, located in the suburban city of Arlington Heights, IL, northwest of Chicago, was the first pawn store in the city. In addition to running the store, Kelly is also president of the Illinois Pawnbrokers Association. “I truly believe the pawn business chooses you, you don’t choose it. I am thankful it chose me,” says Kelly. National Pawnbroker (NP): In your opinion, what does the future look like for the pawn industry? Kelly Swisher (KS): We need to be very careful not to take for granted how fast laws can change that negatively affect our industry – both state and federal. Our industry has a bright future as long as we all participate, but we need to be vigilant. I think we will always find a way to loan on something of value. I’m sure pawnbrokers from just fifty years ago could have never imagined a world where pawnbrokers would be loaning money on micro drones and mobile telephones! NP: What are your top three goals for 2019? KS: 1) Increasing our presence on social media and our positive reviews because this translates to more customers in the door. 2) Increasing the speed and 12

NATIONAL PAWNBROKERS ASSOCIATION

SPRING 2019

Arlington Loan and Jewelry, Inc: Melissa Mazur, Kelly Swisher (owner), Andy Rice

efficiency of the loan writing process, whether that is through technology or our process, as long as it is not sacrificing the great personal customer service we are known for. 3) Spending the time and money to continually educate my coworkers through seminars, conventions, or classes that add to their knowledge. NP: What marketing techniques do you use to

generate traffic to your store?

KS: We have several promotions that we run all year

round one of which is a free birthday loan. If a customer originates a loan in their birthday month, the first month’s service fee is free. If a customer currently has an item in pawn during their birthday month, we will pay that month’s service fee. In both cases, it’s on loans up to $500. NP: How does your company give back to

the community?

KS: We participate in many charity auctions and are

always willing to donate a piece of jewelry for a good

cause. For 10 years, we have helped sponsor a charity golf outing benefitting suicide prevention. For the last 15 years, we have provided a pizza party for the Arlington Heights police department during the holidays. NP: What is the funniest thing that has happened to you since becoming a pawnbroker? KS: Just recently we had a customer walk in with a parrot on her shoulder. She acted like it was totally normal, so we acted like it was something that happens every day. I must say that it was hard to concentrate while a parrot looks at you swaying back and forth as if you were talking to it. NP: Why are you a member of NPA? KS: Being the president of the Illinois Pawnbrokers

Association has taught me how valuable it is to have someone looking out for our best interest. On more than one occasion, I have had to drop everything and run to Springfield (our capital) to oppose some new law that was suddenly introduced. Many pawnbrokers

only hear about this after the fact or not at all. The NPA is doing the same for our industry on a national level. Without the NPA, we would be unaware of issues in Washington and most likely not have the relationships with lawmakers that we need to protect our industry. It is always disappointing to me when I hear that a pawnbroker that doesn’t belong to their state association or the NPA. In my opinion, the NPA is an extension of my business. They are looking after my best interest in Washington, just as our state association does here in Illinois. As an industry, we are powerful, but as one single shop, we have very little power. NP: Tell us something about yourself that would

surprise us. KS: I love to fight. I’m constantly training in Street Fighting, Krav Maga, and Ground Fighting. For more of Kelly’s story on how he got into the pawn business, see his article, “Thanks, Uncle Jimmy!” in the Spring 2018 issue of National Pawnbroker.

SPRING 2019

NATIONAL PAWNBROKERS ASSOCIATION

events

Stand Together For Pawn

ecome a pawn industry advocate when you join the NPA and your fellow pawnbrokers in Washington, DC, on April 30 – May 1, 2019, at the NPA Legislative Conference. Whether you’re new to the industry or a veteran pawnbroker, this year’s conference will give you the opportunity to make an impact on your congressional members. With a new Congress, it’s the perfect time to get to know the new members and make sure they are educated on what pawn

is and what it does for the local community. nG et an insider’s look at what is being proposed and how it can affect your business. nB ecome more informed so you can share information at the state and local level. nM eet personally with your federal policymakers about issues facing the industry. nN etwork with other pawnbrokers and the NPA Board of Directors to strengthen your position in the industry as a whole.

SCHEDULE OF EVENTS Monday, April 29 Arrive in Washington, DC Tuesday, April 30 Morning: Breakfast, Legislative Briefing Afternoon: Appointments on Capitol Hill Evening: De-briefing Dinner Wednesday, May 1 Certified Pawn Professional registrants: Attend CPP course “Federal Regulations” All other attendees depart

ACCOMMODATIONS There is no registration fee for the Legislative

The Liaison Capitol Hill

Conference, but you are responsible for your

415 New Jersey Avenue NW

at NationalPawnbrokers.org/

own travel expenses. The conference will be

Washington, DC 20001

legislative-conference. For

held at The Liaison Capitol Hill Hotel; special

(800) 738-7477

more information, contact

room rates are available to attendees through

Dana Meinecke: Dana@

April 8, 2019. We encourage you to make your

NationalPawnbrokers.org,

reservations early.

(817) 337-8830 Save travel time and take the Certified Pawn Professional (CPP) course “Federal Regulations” that will be offered on May 1. Registration must be received by April 20. For more information, visit NationalPawnbrokers.org and click on the CPP tab.

SPRING 2019

NATIONAL PAWNBROKERS ASSOCIATION

industry partner spotlight

“A satisfied customer is our most valuable asset.”

Keeping Customers Satisfied F DAVID H. FELL & COMPANY, INC.

or more than 45 years, David H. Fell & Company, Inc. has been serving the jewelry, pawn, electronics, dental, and mining industries by providing precious metal products and refining services. Their customers receive the highest quality products, honest refining services, and personalized attention, all for the lowest possible price. Headquartered in City of Commerce, CA, with additional offices in Phoenix, AZ; Burlingame, CA; and Rio Rancho, NM, the company has over 50 employees. As a young man, David Fell learned his craft at one of America’s largest refiners

NATIONAL PAWNBROKERS ASSOCIATION

SPRING 2019

and suppliers of mill products. Through his consistent demand for excellence and unyielding integrity, he has built a company he can be proud of, with a rocksolid reputation for quality in the precious metals industry. While the last few years have been tough for refiners, Larry Fell, CEO (and David’s son) says the company has responded to the challenges “by engaging and listening to our customers and prospects and, in some cases, partnering with them and carefully engaging in business opportunities that promote growth for both the customer and DHF.”

The company differentiates itself from the competition with its strong commitment to quality, consistency of product and refining, and personalized customer service. They offer a diverse product line in exchange for scrap refining. “Our customers have access to DHF’s Coin Gallery which can assist them in purchasing coins or bullion in exchange for their scrap metal settlements. Beginning collectors are always welcome to browse at the Coin Gallery. Experienced collectors, bullion buyers, dealers, and bankers know that the Coin Gallery has the resources and experience to handle the largest transactions competitively. The product exchange offers you the least expensive way to obtain a wide variety of gold, silver, platinum, or palladium materials. Many pawnbrokers repair jewelry, and for a nominal fee, we can return products like casting grain, sheet, wire, and solder.” DHF supports Jewelers for Children, a charitable organization founded by the jewelry industry that helps children in need. They also support local jewelers surrounding their locations, as well as local walk-in customers needing to recycle scrap metals. As a 23-year member of NPA, Larry says, “NPA’s notoriety in the industry and its name speaks for itself. Pawnbrokers have been, and will be, one of our core clientele, so staying engaged with NPA is important to us. NPA also offers marketing opportunities with trade shows and advertising.” You can learn more about David H. Fell & Company’s products and services by visiting their three websites: dhfco.com, coingallery.com, and dhftargets.com or by emailing Info@Dhfco.com. You can also visit them in-person at any one of the numerous trade shows where they exhibit including NPA’s Pawn Expo, CAPA, Dixie Pawnbrokers Convention, AEMA, ICMJ, JCK, MJSA, and the Atlanta Jewelry Show. “A satisfied customer is our most valuable asset. By incorporating strict manufacturing and refining guidelines and providing quality service we strive to satisfy our customers’ expectations. Our customer support team is committed to responding efficiently to your questions and concerns.” SPRING 2019

NATIONAL PAWNBROKERS ASSOCIATION

certified pawn professional

CPP Is Going Virtual!

How to Get Started with the CPP Program

he National Pawnbrokers Association (NPA) is pleased to announce that the Certified Pawn Professional (CPP) courses will be offered online beginning in January 2019. The CPP designation was created by NPA in 2015 to provide a professional designation for individuals in the pawn industry. The designation elevates professional standards and is the recognized mark of distinction among those in the pawn business. The online courses will include two three-hour interactive webinars held two days in a row (for example 10:00 am â&#x20AC;&#x201C; 1:00 pm on Wednesday and Thursday). The goal of the webinars is to create the classroom atmosphere for participants while eliminating the time and expense of traveling to a location. Students must attend the full course and pass the exam at the end of course to receive credit.

Candidates must have at least three years of full-time work experience in the pawn industry and must complete the CPP application prior to registering for the first course. There is an application fee of $25 for members and $50 for non-members. Pre-registration is required for each course and can be completed on the NPA website, NationalPawnbrokers.org. The cost of each course is $199 for members and $499 for non-members. Once a student is registered for the course, the course workbook will be emailed to them at least three weeks prior to the course date. Candidates are required to read the workbook prior to attending the course. For in-person sessions, candidates are also responsible for printing and bringing the course workbook with them to the class.

Courses include: n Store Operations n Marketing, Advertising, and Public Relations n Human Resources n Federal Regulations n Product Knowledge n Security, Risk, and Crisis Management

The NPA will continue to offer courses in conjunction with Pawn Expo, the NPA Legislative Conference, and regional pawnÂ conferences. For additional information, visit NationalPawnbrokers.org/about-the-CPP-program or contact Helen Moore: Helen@Nationalpawnbrokers.org, (817) 337-8830.

NATIONAL PAWNBROKERS ASSOCIATION

SPRING 2019

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government relations

NATIONAL PAWNBROKERS ASSOCIATION

SPRING 2019

Arkansas Pawnbrokers Struggle with Legislative and Legal Challenges by Tim Collier and Douglas Braswell

ecause Arkansas is one of a few, if not the only, state in the country with a usury cap on consumer credit written into the state constitution, it has been virtually impossible for the banks and credit providers to get any relief from the 17% APR cap. We have always held that a pawn is not a loan, but rather a non-recourse transaction involving the transfer of tangible personal property with an option to redeem. This kept pawnbrokers “legal” in the eyes of the Attorney General’s office and allowed pawnbrokers to transact business without substantial threat. However, things changed back in 2016 when a law firm in Little Rock, Arkansas, whose principal also happened to be a state legislator, filed a series of 11 separate class action lawsuits against pawnbrokers in Arkansas claiming violation of the state usury cap and the Arkansas Deceptive Trade Practices Act. The basis for the claims were drawn mainly from the federal requirements of the Truth in Lending Act (TILA) disclosures requiring pawnbrokers to disclose their fees on their pawn ticket as an annualized percentage like any regular consumer credit provider. Hence, if a pawnbroker in Arkansas charges 20% on a 30-day pawn, the ticket would reflect 240% APR. As a side note for those low interest states, even if the charges were 3%, as required by the Military Lending Act (MLA) for active duty and covered borrowers, the annualized rate of 36% would still exceed the 17% usury cap in Arkansas. The law firm who filed the suits did so on behalf

of approximately 12 individual plaintiffs; the suits filed were assigned to six different circuit courts. This made for a difficult situation having to argue in front of six different courts and judges. The Arkansas Pawnbrokers Association (APA) worked with all of the pawnbrokers to retain counsel in Little Rock. The majority of the pawnbrokers saw the benefit of sharing the legal expenses and burden. While every case was different and unique, a majority of the defense would be the same. By sharing counsel, using the same or similar arguments and research, the expenses could be shared. While the defense was being crafted by the attorneys, the APA hired a lobbying firm and began a separate strategy for legislative relief. With it being nearly impossible to imagine a constitutional amendment to exempt pawn from the usury limits, the thought of state code that would define a pawn as something other than consumer credit given the non-recourse element of every transaction, could be a way to protect pawnbrokers from the threat of class action suits moving forward. DEVISING A PLAN

After meeting with representatives from the Attorney General’s office, law enforcement, lobbyists, and members of the legislature, a plan was devised to introduce legislation which would not only redefine a pawn transaction, but also set state licensing requirements, continuing education, police hold and confiscations, and bonding and insurance. SPRING 2019

NATIONAL PAWNBROKERS ASSOCIATION

government relations The idea was this would bring value to a pawn license and store while protecting consumers by spelling out what we do and how we do it. It was determined it would be much easier to pass a comprehensive pawn bill to address all the things most states already have in place rather than pass a bill solely related to setting pawn rates and fees. Currently, there is no state code that addresses pawn fees in any manner. Why? Remember, anything over 17% APR would be in violation of the constitution, and all previous case history in Arkansas, while minimum, favored the consumer over the pawnbroker. After sharing the over 24-page bill draft with the governor’s office, the mood changed and the strategy changed with it. The governor was totally supportive of the industry and the service we provide to the unbanked and under-banked, but felt a comprehensive bill as we were proposing, wasn’t the way to go. We were instructed to pare down the bill to only what absolutely had to be written into state code and a “Pawnbroker Licensure Commission” would be created to pass specific rules and regulation to govern everything else pawn related. Through negotiations with the governor’s office, we came up with a bill that included a rate mechanism since this was the main reason for legislation in the first place, and a true definition of pawn as a non-recourse transaction to include the transfer of tangible personal property. The five-person Commission would be responsible for passing all other rules with legislative oversight for final approval. WORKING THE HOUSE AND SENATE

Now it was time to carry our bill to the House and Senate Committees 22

for the task of “making sausage”. We had our lobbying firm working the House side. One of the pawnbrokers involved in one of the class action suits hired their own attorneys and lobbyist, and they were responsible for the Senate side. The bill moved out of the House committee with little fanfare and moved to the full House floor. As expected, the principal in the law firm who brought the class actions was on hand and promptly began asking questions about the rate mechanism when the bill was brought up for discussion. The state representative

and sheriff’s associations were also supportive of the bill. However, after I finished, there were two gentlemen signed up to speak against the bill: the head of AARP Arkansas and the lead attorney in the class action cases. The gentleman from AARP Arkansas spoke at length about the harmful effects high interest rate loans have on the elderly. After he was finished, the attorney spoke about how the courts are taking up the issue of pawn and usury violations through class action suits and that all case history in Arkansas favored the consumer over the pawnbroker.

who presented the bill on our behalf replied, “Oh, you’re talking about the juice? Customers pay the juice to get their merchandise back.” To which the attorney replied, “Well, I’ve never heard it put in such juicy terms.” With that, House Bill 2164 passed the House with a vote of 69 yeas, 7 nays, and 2 presents. The Senate was a different story. We were told we had enough votes to get the bill out of the Senate committee, but to be prepared to answer questions related to the bill. In speaking on behalf of the bill, I pointed out that the governor was fully supportive of the bill, the attorney general was aware of the bill but neutral, and the chief of police

I’ll never forget the devastated feeling I had when, after the voice vote, the Chairman said, “Bill fails to advance out of committee for lack of votes.” While standing in the hallway outside the Senate meeting room watching the two men who spoke against the bill congratulating each other, our lobbyist for the association said, “Give us a little time and we’ll see what our next step is.” The next morning, I got a text that said, “I’ve got some news if you can talk.” I immediately called him and he shared with me that the minutes from the Senate committee meeting the day before reflected our bill passed out of the committee on a voice vote.

NATIONAL PAWNBROKERS ASSOCIATION

SPRING 2019

They had worked the committee over dinner the night before. Now on to the full Senate. We targeted a few Senators who we felt might oppose the bill and called them out of the Senate chambers individually before the bill was brought up and explained the urgency of getting the bill passed. Ultimately, they chose not to speak against the bill and they merely voted present and the bill passed. It then was codified and sent to the governor for his signature which we felt very good about. Then we heard that AARP Arkansas has started a letter-

two cases. They lost, and we appealed the two cases we lost, with all four cases going directly to the Supreme Court of Arkansas as the issue at hand was constitutional. We waited for months until the cases finally made their way up the Supreme Court docket and they eventually ruled on all four cases simultaneously. The High Court held that there could be no class certification in any of the four pawn cases. One of the measuring sticks for class certification, commonality amongst the class, was not met. Commonality means there

WE HAVE ALWAYS HELD THAT A PAWN IS NOT A LOAN, BUT RATHER A NONRECOURSE TRANSACTION INVOLVING THE TRANSFER OF TANGIBLE PERSONAL PROPERTY WITH AN OPTION TO REDEEM. writing campaign to try and persuade the governor to veto the bill to protect the seniors in Arkansas. After sweating it out over the next two weeks, the bill sat on the governor’s desk until the veto deadline passed and he allowed it to become law without his signature. I think they call that a win/win. CLASS ACTION LAWSUITS

The first judge to hear the class action lawsuit cases had two in his court. After denying us testimony by witnesses, we were limited to offering a proffer on all their testimony. Needless to say, he was a friend of the state legislator who owns the law firm. Subsequently, the judge granted both class certifications in his court. Two separate judges denied class certification in their courts and the attorneys for the plaintiffs appealed the

are common questions of law or fact that predominate individual class members. The ruling stated there were not common facts as some plaintiffs paid and picked up their pawn, some paid but eventually lost their pawned items, and some never paid anything and treated the pawn as a sell. Without common facts, there could be no class action, so all four classes were denied and remanded back down to the circuit courts for individual renderings. This victory, while not the exact outcome we were hoping for, was an historic ruling. Our entire defense throughout all the court appearances had been that a pawn is not a loan because there is no obligation to repay. The expert banking witness said it best. “A loan is when money is advanced with the expectation that money will be repaid.” We explained SPRING 2019

that we have no idea if any of our customers are going to pay the pawn back or not. If a pawn is not a loan, then the fees are not interest. The Supreme Court never took up that argument, but simply denied the class actions and let the lower courts deal with the cases individually. The first case decided in circuit court was in Judge Chris Piazza’s court. He had originally ruled in our favor and denied the class certification. Judge Piazza ruled in June 2018 granting summary judgment in favor of the pawnbroker. In his ruling, he stated, “This court grants summary judgment to defendants because there is no loan in the pawn transactions in question that requires an absolute obligation to repay the principal. There can be no usurious transaction without this element. The usury and ADTPA claims are dismissed as a matter of law.” Now that was a major victory! Not long after the ruling in Judge Piazza’s court, the attorney of record for the law firm who filed all the litigation removed his name as attorney of record on all the cases. Within a week, he left the law firm and moved out of state to a new job. None of the cases have moved forward and we have filed for summary judgment in all the remaining cases. In the meantime, we have a Pawnbrokers Licensure Commission, with five members appointed by the governor, that has met on a number of occasions but has not yet passed any rules. We are in the process of determining the future of the Commission and exactly what rules they may consider passing. We look forward to working with the governor’s office and the legislature in 2019 to determine what pawn laws may look like in Arkansas in the years to come.

NATIONAL PAWNBROKERS ASSOCIATION

member benefits

Pawn Perfect NPA’S ANNUAL AWARDS SINCE 1996, the National Pawnbrokers Association has presented awards to those who have made an everlasting impression on the pawn industry. These hard working, dedicated individuals and companies represent the best of the best. They are leaders, innovators, and an inspiration to others in the business. Submit your nominations for Pawnbroker of the Year, Industry Partner of the Year, Outstanding

Community Relations, Young Professional of the Year, Outstanding Pawn Industry Image, and the Charles R. Jones Lifetime Achievement awards. To nominate an individual pawnbroker or company, complete the nomination forms found at NationalPawnbrokers.org under the Membership tab/NPA Annual Awards. The awards will be presented at the Annual Awards Luncheon held during Pawn Expo 2019 in Las Vegas, NV, on Tuesday, July 9, 2019.

Pawnbroker of the Year Award

Industry Partner

Outstanding Community

Presented annually to an individual

of the Year Award

Relations Award

who, through his/her performance,

Presented annually to the NPA

Presented annually to an NPA

has demonstrated exceptional

Industry Partner member company

Pawnbroker or Affiliate member

success in their business and

who, through their performance and

company whose public service and/

local community and has made a

dedication, has shown significant

or voluntarism efforts advance

significant contribution to the pawn

support of the association and

the standard and quality of life in

industry during the previous year.

its members.

their community.

Young Professional

Outstanding Pawn Industry

Charles R. Jones Lifetime

of the Year Award

Image Award

Achievement Award

Presented annually to an individual

Presented annually to an NPA

Recognizes a pawnbroker who,

40 years of age or younger who,

Pawnbroker or Affiliate member

through his/her outstanding

through his/her performance, has

company who creatively generates

leadership and efforts, has gone

demonstrated exceptional success in

positive awareness of the pawn

above and beyond and made a

their business and local community,

industry through a print or digital

significant and lasting impact on the

and has made a significant

marketing campaign. Media includes,

pawn industry over the course of

contribution to the pawn industry

but is not limited to: television, radio,

their pawnbroking career. They are

during the previous year.

social media, print campaign, and

regarded by their peers as leaders

email campaign.

in the industry and recognized as such nationally. This is the highest honor awarded by NPA and is awarded only to individuals who have demonstrated a lifetime commitment to the association and to the success of the pawn industry.

NATIONAL PAWNBROKERS ASSOCIATION

SPRING 2019

business solutions

How Does the New Bump Fire Stock Classification Affect Pawnbrokers? by Philip Milks, Orchid Advisors

ost, if not all, of the firearms industry is aware that the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) recently determined that bump fire stocks and similar devices are now defined as “machine guns”1 under Federal law, effectively prohibiting consumers from owning them. However, the determination has implications beyond that of a simple consumer prohibition and affects all FFL types, including Type 2s. In this brief article, we’ll review the process that resulted in the ATF determination and outline the effects it has on FFLs, including pawnbrokers and others dealing in the secondhand market. As an initial matter, let’s review ATF’s responsibility with respect to “approval” of firearms and firearm parts. Manufacturers of firearms or firearm parts are not required to seek ATF’s approval on the design or function of the products they intend to manufacture and distribute. Regardless, manufacturers can, and often do, seek ATF’s opinion as to how they would classify a proposed product.2 As such, when you see “ATF approved” or similar phrases, it generally means that ATF has classified something in a manner favorable to a manufacturer seeking to sell something into a particular market.3 Thus, the phrase is more a matter of marketing than anything else. ATF had previously classified bump stocks and other similar devices on multiple occasions as firearm parts that were not regulated under either the Gun Control Act (“GCA”) or the National Firearms Act (“NFA”). The classification was due to the fact that only a single projectile is expelled for a single depression of the trigger by the trigger finger and that the device does not fire again “automatically”;

i.e., more than one projectile for a single depression of the trigger by the trigger finger. The tragic October 1, 2017 shooting in Las Vegas provided the impetus for ATF’s reclassification of bump stocks and revision of the “machine gun” definition in the Federal Regulations. The investigation into the shooting revealed that the perpetrator had utilized multiple semiautomatic firearms with bump fire stocks attached to them. Almost immediately, there were calls for action from multiple sources for Congress and/or ATF to outright ban bump fire stocks or to impose additional restrictions upon them.

1 “Machinegun”

is the term used in the statutes at 18 USC 921(a)(23) and 16 USC 5845(b) and the import regulations at 27 CFR 447.11 while “machine gun” is the term used in the GCA and NFA regulations at 27 CFR 478.11 and 27 CFR 479.11. The difference has no substantive effect. 2 This is often done during the R&D process so as not to invest heavily in a product that would ultimately not be eligible for sale in a specific market segment, such as the muzzleloader market or GCA rifle market. 3 E.g.,

an “ATF-approved” silencer on a muzzleloader means the manufacturer has obtained a favorable ATF classification that the silencer is not regulated under the NFA, or for purposes of this article, an “ATF-approved” stock means that ATF has evaluated the stock and determined it is not a “machine gun” regulated by the NFA.

4 Bump-Stock-Type 5 It

Devices, 83 Fed. Reg. 61, 13442 (March 29, 2018).

remains to be seen what else the revised definitions can encompass. Many observers suspect it can be extended to binary triggers and other devices.

6 The

restriction prohibits civilian ownership of machine guns manufactured after May 19, 1986 and also prohibits the free transfer of machine guns manufactured after that date, even amongst FFL/SOTs.

NATIONAL PAWNBROKERS ASSOCIATION

SPRING 2019

On March 29, 2018, the ATF, at the direction of the Trump Administration, published a Notice of Proposed Rulemaking which sought to “clarify that ‘bump fire’ stocks, slide-fire devices, and devices with certain similar characteristics (bump-stock-type devices) are ‘machine guns’ as defined by the National Firearms Act of 1934 (NFA) and the Gun Control Act of 1968 (GCA), because such devices allow a shooter of a semiautomatic firearm to initiate a continuous firing cycle with a single pull of the trigger.”4 After a comment period and review of comments submitted by the public, the Acting Attorney General announced the new rule on December 18, 2018, and ATF published its Final Rule on December 26, 2018. The Final Rule re-defined “machine guns” in the Federal Regulations to include bump fire stocks and other similar devices5 and takes effect March 26, 2019. HOW DOES THE NEW BUMP FIRE STOCK CLASSIFICATION AFFECT PAWNBROKERS?

Assuming the new rules actually go into effect on time and as planned (more on that in a moment), what effect does it have on pawnbrokers and FFLs who deal in secondhand and used firearms? First and foremost, FFLs – including pawnbrokers – are not exempted in any manner from the Final Rule. They cannot register their bump fire stocks as machine guns and none of their bump fire stocks or firearms with bump fire stocks are “grandfathered” in any manner. Those with experience with new “assault weapon” laws may ask why there is no grandfathering or amnesty period. Grandfathering or registration of machine guns in this circumstance is not legally possible due to 18 USC 922(o). In short, this is the section of the U.S. Code which prohibits “post-86 machine guns.”6 Thus, any bump fire stocks in inventory would have to be destroyed or surrendered. Any firearms in inventory which have bump fire stocks should have the stock removed and destroyed or surrendered. A replacement stock may thereafter be placed on the firearm prior to sale. Perhaps most importantly, all employees who take in firearms should be made explicitly aware of the new restriction and should keep a very close eye on the stocks attached to used firearms which are taken into inventory. However, as with most legislative and regulatory matters, the actual impact varies depending on a multitude of factors. First and foremost, lawsuits were immediately filed by multiple groups challenging the

Final Rule. The lawsuits seek multiple avenues of relief, and if ultimately successful, would result in the Final Rule being declared invalid and unenforceable. Should this happen, the “machine gun” definitions would remain as they were before the rulemaking and bump fire stocks would be completely legal as they have been. Then there is a third possibility. In conjunction with at least one of the lawsuits, a Temporary Restraining Order (“TRO”) against enforcement of the Final Rule was made. This is a matter ruled on by the court prior to trying the substantive causes of action against ATF. If the court decides upon the request for a TRO in the plaintiffs’ favor, then enforcement of the Final Rule would most likely be postponed pending the outcome of the litigation. If the court denies the request for the TRO, then enforcement of the Final Rule may begin immediately (March 26). Complicating matters further, regardless of which way the court rules upon the TRO there is the possibility for an opposite ruling on the core of the litigation. In other words, the court could decide the TRO in plaintiffs’ favor which would suspend enforcement of the Final Rule and then rule against plaintiffs which would make the “ban” effective. Or, the court could deny the TRO which would make all existing bump fire stocks “machine guns” (and thus require destruction of them on March 26) and then ultimately rule against ATF which would then render all bump fire stocks “not machine guns” (and their previous destruction therefore unnecessary). Summarizing the above, to be safe, all pawnbrokers should assume the Final Rule will go into effect March 26 and prepare accordingly. You do not want unregistered “machine guns” in your possession after that date. However, everyone should be cognizant of the litigation; specifically how the court rules on the TRO as a ruling favorable to the industry would mean that bump fire stock inventory need not be destroyed. Orchid Advisors provides ATF and ITAR compliance services to manufacturing, distribution and retail FFLs. The firm offers FFL and Export licensing, deep record inspections, e4473 / NFA eForms, Electronic Bound Book software and delivers the largest online ATF and ITAR compliance training platform available. Philip Milks of Orchid Advisors is an attorney and was formerly employed by the National Shooting Sports Foundation (NSSF) and Remington Outdoor Company (ROC). While at Remington, Phil served his executive peers as the leader of ROCs corporate compliance function which included ATF, Import, and Export (ITAR and EAR). Phil serves his clients by implementing regulatory technology and building corporate compliance programs to ensure regulatory requirements are served through standard business practices.

SPRING 2019

NATIONAL PAWNBROKERS ASSOCIATION

multi-store owner profile

“Preparation and patience are what you need for an expansion.”

Dickie Smith with his wife, Sam Raley.

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

f you’ve been in any part of Myrtle Beach, SC, you have probably driven by one of the oversized Dick’s Pawn Superstore signs. Raley Smith, known to most as “Dickie”, is the owner of those five pawn stores. Dickie’s family was in the hotel business, but with his knack for selling, his father thought he should open a pawn store. In 1987, with $150,000 in seed money, he opened his first location in Surfside Beach. Since then, he’s captured the entire market with stores on the north and south ends, two in the middle, and one in a more rural area. Knowing when, where, and how to open a new location requires a lot of forethought and preparation, explains Dickie. He makes his location decisions

NATIONAL PAWNBROKERS ASSOCIATION

SPRING 2019

based on “geographic location, road conditions, and quantity of competition.” Approximately three months out, he chooses the staff, begins training them, and makes other preparations like purchasing, advertising, and setting up the store. In the past, he has usually borrowed capital from the bank, but with his most recent expansion, he used internal cash flow to finance. If you are thinking about adding a pawn store location, Dickie shares his best advice. “Patience is everything. You also need lots of cash. I mean more than you think you need, plus more after that. You have to be prepared to take no profit from a new location for at least a year and then to get no serious money back out of it for about five years after that. Preparation

and patience are what you need for an expansion.” When asked about the biggest obstacles with owning a multi-store operation, Dickie says, “The biggest obstacle I have had is consistency – making sure everything is managed and handled the same from reporting cash to selling inventory to employee management. I have implemented a central hub for all our supply and wholesale purchasing. It has proved helpful by having supplies readily available as well as giving me a clearer way to monitor and find discrepancies.” Communication can be another challenge for multi-store owners, but Dickie has a couple of great systems in place. They have a cloud-based phone system that allows each phone outlet to have its own number within their one network. Each phone is equipped with its own extension and paging options to all of the locations, so employees and customers can be reached specifically and easily when needed. They also use a messaging app called GroupMe that allows them to create specific groups based on location as well as position so they can communicate directly and more efficiently. They can send out updates, alerts, announcements, and procedure changes through the app. With five locations and 73 employees, finding and hiring employees can be yet another hurdle to overcome. Dickie looks for flexibility, energy, and enthusiasm, in addition to passion. “We start our hiring process at Indeed, an online job search website, where we post our available positions. From there, the applicant completes a Top Talent Solutions (TTS) personality test that gets compared to our baseline scores for each position. I also require an interview process as well as criminal and financial background checks. Dickie has met his growth goals for the Myrtle Beach area, so his focus for the future will be on strengthening and fine-tuning staff and practices. “We consider ourselves number one for jewelry and pawn in our area, so the Title Loans department is a big goal. I want to see our Title Loans strengthen and become number one too. There are always opportunities to take advantage of in this area.” SPRING 2019

NATIONAL PAWNBROKERS ASSOCIATION

Pawn Expo

July 9-11, 2019 • The Mirage • Las Vegas, NV

What is Pawn Expo?

What’s New in 2019

Pawn Expo is the only national convention and trade show for the pawn

Three (3) Pawnbroker to Pawnbroker panels

industry. Attendees learn new ways to strengthen their company, connect with fellow pawnbrokers,

Identification of Synthetic Diamonds seminar

and do business at the trade show featuring over 100 different companies. Leave energized and

Fake or Fabulous – Designer Jewelry

equipped with the latest industry knowledge.

PawnExpo.com

NATIONAL PAWNBROKERS ASSOCIATION

SPRING 2019

Save $150

24 by May rly a e with es! t a r bird

Keynote Speaker Captain Richard Phillips

General Session Speaker Sally Morrison

Leadership in Times of Crisis

Lightbox Diamonds by DeBeers

Captain Richard Phillips, author

Lightbox is a digital brand that was announced

of A Captain’s Duty: Somali

shortly before the jewelry industry trade shows

Pirates, Navy SEALs, and

in May 2018. In September 2018, the brand

Dangerous Days at Sea, will be

began trading online offering its jewelry direct

sharing his experience and his

to consumers.

remarkable rescue. This dramatic

Sally Morrison, the CMO of Lightbox, provides

story was also transformed into

a review of the first few months of the brand’s

Academy Award and Golden

operation in the U.S. and a discussion of its

Globe nominated film, Captain Phillips, which hit the

ongoing activities. Drawing on proprietary research and customer

big screens in the fall of 2013.

feedback, the session will provide a point of view on the lab-grown space and consumer attitudes in this rapidly changing landscape.

Schedule Highlights Monday, July 8, 2019

Hotel Information

nC ertified Pawn Professional courses (additional registration required)

THE MIRAGE HOTEL AND CASINO, LAS VEGAS

n Pawnbroker Mix & Mingle

Pawn Expo 2019 Room Rate $95 per night, plus applicable taxes and resort fee of $27 per night

Tuesday, July 9, 2019 n Membership Meeting and Breakfast (Members Only)

Visit NationalPawnbrokers.org to make online

n The Marketplace

reservations, or reserve via phone by contacting Group

n Keynote Speaker Captain Richard Phillips

Reservations at (800) 627-6667. Give the code NAT19A

n Lightbox Diamonds by DeBeers

to receive the group rate.

n Fab or Fake – Designer Jewelry

The group rate is available through June 21, 2019, based on availability.

n Welcome Celebration – Denim & Diamonds

Wednesday, July 10, 2019 n Firearms Dealer Liability n Women in Pawn – Attracting More Female Customers n A Deep Dive – Synthetic Diamonds n 107-booth Trade Show n Young Professionals Game Night

The certified Pawn Professional (CPP) designation program has over 100 candidates pursuing their CPP certification. The designation will elevate professional standards and be the recognized mark of distinction among those in the pawn business. All courses will be offered at Pawn Expo 2018. Additional registration required.

Thursday, July 11, 2019 n 107-booth Trade Show n Expanding Your Digital Community n Pawnbroker Roundtables n Pawnbroker to Pawnbroker – Ask the Experts n Farewell Bash

SPRING 2019

NATIONAL PAWNBROKERS ASSOCIATION

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

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

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

Steve Stallcup

steve@stallcupgroup.com

817.479.3880

STALLCUPGROUP.COM

membership

NPA Launches New Website AFTER MONTHS OF HARD WORK and dedication, we are pleased to announce the launch of NPA’s new website! While it will continue to house a wealth of pawn information as it has in the past, it now has some wonderful new features, such as: nT he ability to accept membership registration and payments for new and renewing members nP rofile management for contact information, business details, billing, payments, and passwords nA member directory with customizable business profile pages for each NPA member business n “ Deals” offering promotions, coupons, or deals for pawn customers and pawnbrokers nE asy event registration and calendar for Pawn Expo, the NPA Legislative Conference, CPP courses, and other NPA events nO nline PAC donations nA new Members Only area for reading sensitive and important NPA and pawn-related information nL inks to all of your favorite NPA features, like the Industry Marketplace and NPA social media

nO nline AML

Compliance registration news blog including pawn news, press releases, pawn articles, and video resources The all-new NPA website, developed by 3 CLiCk Media, will streamline your online experience and deliver helpful and informative pawn resources to you in a new and exciting way. We are combining all of our online services into one dynamic, easy to use, and powerful website that will also include the former PawnExpo.com website. So, pull up a chair and take a look at the new NationalPawnbrokers.org!

nD ynamic

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NATIONAL PAWNBROKERS ASSOCIATION

business solutions

Understanding the

Millennial Mindset by Shuan Sim

he millennial generation has surpassed the baby boomers to become the largest age demographic in the U.S., according to the U.S. Census Bureau. This means businesses that ignore them and their unique requirements do so at their peril. Examining what constitutes the millennial mind-set provides a better way to understand

NATIONAL PAWNBROKERS ASSOCIATION

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millennials, since the impact of the millennial mindset does not end at those who are in their early 30s, according to Jeff Fromm, president of FutureCast in Kansas City, Missouri. Older consumers who do not fall within that age bracket are invariably affected by millennials, and some could even qualify as being one. â&#x20AC;&#x153;A lot of Gen X, and even boomers, are

upon getting married and having kids, such as houses starting to converge with millennials on a lot of and bridal jewelry, are relegated in favor of purchases topics,” says Fromm. “Many Gen X people, born from more common to single young folk. “If I am not married approximately 1965 to 1979,” continues Fromm, “are and don’t have children, I can drop everything and go on their smartphones using peer networks, embracing away for the weekend, or invest in some really cool brands about fairness. They’re starting to resemble equipment,” Fromm explains. millennials more and more, but with some differences,” ME VERSUS WE: Millennials realize caring about he elaborates. “Those aged 40 to 55 might not be the first oneself is not sufficient anymore, but rather they place to adopt these new developments, but when they see importance on caring for the larger community. Now, how easy it is, they will try it, too.” they can mobilize over social media and other online Ben Smithee, chief executive officer (CEO) of The mediums. Millennials care about issues like social justice Smithee Group, a millennial consumer consultancy and responsibility and environmental friendliness and are in New York City, attributes this convergence to the more empowered to act on them. Brands have to engage generational dispersion of information. “This is the first them on that level if they are to appeal generation where impact is both upto this group, Cohen notes. and downstream,” Smithee says. Older generations According to Smithee, it is not just Millennials are not only influencing sufficient for brands to do the right their peers, but also their parents and are having thing, but also to get the message out grandparents. The older generation is difficulty that they are doing it. “For example, exposed not only to new technology understanding with the diamond industry, so much but to new concepts and ideas, such who qualifies as a work has been done on sustainability. as the idea of relying on online reviews But there’s no money going into to make purchase decisions, or even millennial because campaigns to combat the last taste making online purchases in the first by the time they in the mouth of consumers about place. “These are the same people who think they have diamonds. People are still talking about had said, ‘Never will I ever put my the ‘Blood Diamond’ movie that came credit card information on the internet,’ it figured out, out in 2006 when they talk about and now they’re doing ‘one-click’ millennials have diamonds,” Smithee observes. shopping from their smartphones,” already moved LUXURY: Millennials still desire Smithee points out. and demand luxury as they have been Older generations are having on from that exposed to a taste of it growing up. difficulty understanding who qualifies definition. Smithee points out that some of the as a millennial because by the time most successful Instagram users are they think they have it figured out, about them living the prestige lifestyle. millennials have already moved on from However, Cohen notes that luxury must be affordable that definition, Cohen says. “Even millennials are trying to millennials for them to strive to make a purchase, to figure out who they are, and they’re part of the group,” otherwise they would rather it be a gift. he adds. Millennials would splurge on an exclusive membersonly shopping service, a music festival pass, or an overseas WHAT DO MILLENNIALS CARE ABOUT? EXPERIENCES: Owning material goods has become trip. For traditional luxury, including jewelry, clothing and accessories, and fine dining, millennials have no less appealing to millennials as they seek experiences qualms requesting these items as gifts from their parents instead, such as travel and dining. Part of it is due to millennials having entered the workforce during the 2008 or friends. “If you look at engagement rings, millennials are still romancing the stone but in a more affordable recession with more debt, and the fact that the group as way. They’re looking at diamond rings where the stone is a whole has less discretionary income. More millennials made to look bigger by being set around other stones. The are delaying starting families and moving back with their previous generation would just spend every penny they parents after graduating from college. had for the big solitaire ring,” Cohen explains. Purchases that are typically seen as investments SPRING 2019

NATIONAL PAWNBROKERS ASSOCIATION

business solutions SECONDHAND RETAIL: Retailers have had to rethink store design and look toward lower-priced, edgier collections to try to engage with the millennial mindset. The key concepts that resonate with this generation are personalization, ethical sourcing, and sustainability. This is driving retailers to make their online and brickand-mortar shopping experiences distinctive, with the creation of pop-up shops and the selling of limitededition products becoming more commonplace. A big benefactor of this trend has been the secondhand market, which racked up sales of $20 billion worldwide in 2017, according to fashion resale service, Thredup. This is expected to grow to over $41 billion by 2022 as consumers move towards adopting more sustainable, eco-friendly lifestyles. The luxury resale market is also expected to soar with the rise of what has been termed ‘mindful consumerism’. CONCLUSION

Millennials have arrived and the future of retail is about how to engage with them and the digital natives of Generation Z that will follow them. The businesses that

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thrive will be the ones that innovate with their product ranges, embrace sustainability and authenticity, and use technology to add value to the shopping experience. Millennials are demanding new experiences, new products and deeper, more meaningful engagement. The success of the pawn industry will be based on if it can adapt to meet their needs.

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SPRING 2019 1/7/2019 7:50:04 AM

NATIONAL PAWNBROKERS ASSOCIATION

compliance

The Compliance Monster:

Myth vs. Reality I

by Bob Frimet, CAMS

t’s a new year and time to slay that compliance monster lurking in your pawn store closets. In the 13 years I’ve been assisting the industry in compliance matters, I’ve been asked many questions. Some memorable, and some I wish could be removed from my memory. But, the only bad question was the one never asked. After all, knowledge is power, and knowing the answers can help you defeat that compliance monster. So, here are some questions that have been asked and answered (to the best of my ability). Question: I’ve had one 8300 to fill out this year and, therefore, don’t need to comply with the rules, do I? Answer: This is a myth. 8300s are actually subject to trade or business rule. Any trade or business is subject to filing 8300s for all cash in (not cash out) transactions and, in

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SPRING 2019

some cases, cash and negotiable instruments combined. However, as a “dealer” in precious metals, although an 8300 may be filed in taking in cash from another, that is where the relevance stops. Are you a dealer? (1) The term “dealer” means a person engaged within the United States as a business in the purchase and sale of covered goods and who, during the prior calendar or tax year: (i) Purchased more than $50,000 in covered goods; and (ii) Received more than $50,000 in gross proceeds from the sale of covered goods. (2) For purposes of this section, the term “dealer” does not include: (i) A retailer, unless the retailer, during the prior calendar or tax year,

purchased more than $50,000 in covered goods from persons other than dealers or other retailers (such as members of the general public or foreign sources of supply); or (ii) A person licensed or authorized under the laws of any state (or political subdivision thereof) to conduct business as a pawnbroker, but only to the extent such person is engaged in pawn transactions (including the sale of pawn loan collateral). (3) The terms “purchase” and “sale” do not include a retail transaction in which a retailer or a dealer accepts from a customer covered goods, the value of which the retailer or dealer credits to the account of the customer, and the retailer or dealer does not provide funds to the customer in exchange for such covered goods. So, regardless if one ever fills out an 8300 or not, it doesn’t matter. If a pawn store purchases more than $50,000 and sells more than $50,000 (not including pawn transactions) then that company is a “dealer” and subject to the rules. Now, of course, there are other nuances which define a “dealer”, but the dollar amount is key in addition to at least 50 percent in purity in the metal purchased, whether it be silver, gold, or platinum. If one is defined as a “dealer”, then one must have adequate polices and procedures in place. These include a written risk assessment, an independent review by an unaffiliated third party, training, and internal monitoring. Question: I’m a pawn store that just happens to buy scrap, but I don’t call it scrap, just a “buy”. Therefore, I’m not a “dealer”, right? Answer: Again, this is a myth. If the pawnbroker is conducting activity as a licensed pawnbroker selling pawned items or buying goods, that does not define the

pawnbroker as a “dealer”. But, purchasing metals (a “buy”) is not pawn activity and, therefore, does not exempt the pawnbroker from being a “dealer” and following the rules as so required.

Knowledge

Question: My customer did a pawn for $7,000 and I never collected their social security number. Now, months later, they picked it up and, with interest over the months, it triggered an 8300. But they refuse to give me their social security number. Am I in deep *#!!? Answer: Kind of, but not really. The IRS code calls for a fine. That fine is about $100. But, if the 8300 is not filed due to willful negligence or filed improperly on purpose, the fine can skyrocket to 10 percent of the total amount collected that triggered the 8300. So, if the pawn store is purposely omitting information, it can get costly. What’s the best move? If the pawnbroker believes that an 8300 might be triggered down the road based on the amount of the deal, they should consider collecting all information prior to the transaction. For example, if the interest is 20 percent in the state and the loan is $5,000, then collecting the social security number initially, as opposed to six months later, would be prudent.

is power, and knowing the answers can help you defeat that compliance monster.

Question: If I don’t file 8300s or SARs (Suspicious Activity Reports), the government won’t know I exist and won’t come audit me, correct? (Continued on Page 41)

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membership

2019 State Association Contacts List There are several state pawn associations in the U.S. Below is a directory by state with the name and contact information listed for each one, if available. In some cases, where there is no state association, NPA has solicited a member to be the point of contact for

questions on regulations for that particular state. If the line is blank, it means there is no contact available. If you are interested in being the contact, please contact Dana Meinecke at the NPA office (Dana@ NationalPawnbrokers.org, (817) 337-8830).

STATE MEMBER NAME COMPANY NAME PHONE EMAIL ADDRESS AK AL Joey Holley Alabama Pawnbrokers Association (334) 808-1000 troypawndeals@gmail.com AR Tim Collier, Pres Arkansas Pawnbrokers Association (501) 666-2883 tim@pacerltd.com CA Jan Schneider California Pawnbrokers Association (408) 295-3610 jewelryjan@att.net CO Steven Adsit CO State Contact (970) 352-8895 stores.35@mmi-corp.com DC Jessica Barakat DC State Contact (202) 332-2522 crownpawn@aol.com DE Scott Paulsen DE State Contact scott@peninsulapawn.com FL Joshua Davis Florida Pawnbrokers Association (516) 660-4101 josh@gcpawn.com GA Neal Casleberry GA State Contact (678) 265-8260 neal@jcicom.com HI IA Lynden Miller IA State Contact (319) 358-1163 moneyandmoreic@gmail.com IL Kelly Swisher Illinois Pawnbrokers Association (847) 577-3700 arlingtonloan@sbcglobal.net IN Greg Engstrom, Pres Indiana Pawnbrokers Association (219) 242-8350 gregengstrom@hotmail.com KS Robin Tummons, Pres Kansas Pawnbrokers Association (913) 831-1684 hsofstuartltd@yahoo.com KY Rachael Parsons Kentucky Pawnbrokers Association (859) 661-2987 rcparsons77@gmail.com LA Chad Carter, Pres Louisiana Pawnbrokers Association (337) 497-1897 chadcarterlpba@yahoo.com MA Edward Bean Massachusetts Pawnbrokers Association (617) 445-5087 suffolkjewelers@gmail.com MD Rick Sussman, Pres Maryland Pawnbrokers Association (410) 669-5454 ricksuss@aol.com MI Seth Gold MI State Contact (313) 345-4000 seth@americanjewelryonline.com Mark Aubrey Michigan Pawnbrokers Association (586) 758-2274 mark@motorcitypawnbrokers.com MN MO Tim Fairbanks Missouri Pawnbrokers Association (314) 565-4842 tim@extremepawn.com Rob Lauer Govt Relations (314) 388-4444 rob@pawncenter.com MS Nick Fulton Mississippi Pawnbrokers Association (601) 383-4912 nicholas@usapawnms.com MT Kathy Smith MT State Contact (406) 257-7296 goldrushpawn@yahoo.com NC Bob Moulton Pawnbrokers Association of North Carolina (919) 880-2070 moultonbob@yahoo.com NE Bruce Kaiman NE State Contact (402) 342-7764 sols@qwestoffice.net NH Roger Weinreich NH State Contact (603) 357-7800 tod@worldpath.net NM Valerie Davis NM State Contact (505) 323-7296 valeriedaviswork@gmail.com NV Michael Mack NV State Contact (702) 253-7296 michael@maxpawnlv.com NY Eric Modell, Pres Collateral Loanbrokers Assoc. of NY (212) 354-4444 eric@modellfinancial.com OH Raphael Tincher Ohio Pawnbrokers Association (513) 631-2112 raph@tedspawn.com OK OR Josh Oller Oregon Pawnbrokers Association (503) 813-9273 josh@pawntalk.com PA Tod Gordon PA State Contact (215) 923-1443 reedcw@aol.com Stanton Myerson PA State Contact (610) 352-8707 info@louspawn.com RI Scott Frye RI State Contact (401) 722-1113 scott@pawnri.com SC Dickie Smith South Carolina Pawnbrokers Association (843) 241-1757 brokengroin@yahoo.com SD TN Kenneth Huddleston Tennessee Pawnbrokers Association (931) 728-4242 kkslmj@bellsouth.net TX Jack Bonds Texas Association of Pawnbrokers (972) 562-1313 pawnloans007@hotmail.com Larry Nuckols, Pres San Antonio Pawnbrokers Association (210) 826-8033 larry@brittx.com UT Randi Nell UT State Contact (801) 352-1010 aw3som387@gmail.com VA Cory Brown VA State Contact (703) 622-4083 soamazing2010@gmail.com Jay Dunbar VA State Contact (757) 723-6033 jay@superiorpawnhampton.com WA Nancy Cejudo WA State Contact (425) 255-3638 nancycejudo@aol.com WV Brent Kalafat West Virginia Pawnbrokers Association (304) 622-1021 kalamoreconsulting@yahoo.com WY John Mason WY State Contact (307) 632-3820 lincolnwaypawn@msn.com 40

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(From Page 39)

The Compliance Monster: Myth vs. Reality

Answer: This is another myth! The IRS, which regulates the pawnbroker in cases of 8300 trade or business or is acting on behalf of FinCEN on behalf of precious metals regulations “dealers”, locates businesses to audit through a multitude of ways such as advertisement, customer issues that are being investigated, or though competitors listing their competition in their audit. These items are much more likely to trigger an audit than a business following the rules as they always should.

Bob Frimet is a certified anti money laundering specialist who has served the pawn broker and dealers in precious metals industry since 2006 conducting independent reviews, drafting policy’s and procedures and providing assistance with state and federal audits. He can be reached at 702-596-8370 or at bob@ checkconsultants.com www.checkconsultants.com

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So many questions, so little time. We will have more questions and answers in future issues, but in the meantime, don’t forget to file 8300s as required (there are several triggers), have a strong policy and procedure manual in place, conduct on-going training and internal monitoring as defined within the written program if you’re a “dealer”, and make sure all staff is properly trained. Also consider a policy for your bank or processor to have that confidence level that you’re on top of your compliance game.

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SPRING 2019

NATIONAL PAWNBROKERS ASSOCIATION

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3/27/18 1:08 PM

SPRING 2019

book corner

Brick-and-Mortar Isn’t Dead by Jason Wilson

ONLINE SHOPPING HAS CHANGED THE NATURE OF RETAIL, but brick-and-mortar stores can still thrive. If you’re starting your own business or looking to grow your local enterprise, you just need the right steps, tactics, and tools to create a customer-centric company that will outshine the digital competition. Over the past fifteen years, pawn store chain owner Jason Wilson built his operation from a one-man shop to a multi-store organization. In Brick-and-Mortar Isn’t Dead, he shares the secrets to his success, walking future and experienced small business owners through the stages of any company: start-up, growth, and expansion. From building trust and standing out, to hiring and leading a team, to embracing your evolving role, Jason addresses the opportunities and challenges founders will face. The future of physical stores is now—and this book is your essential guide to brick-and-mortar triumph. Available for purchase on Amazon.com.

SPRING 2019

NATIONAL PAWNBROKERS ASSOCIATION

business solutions

Aging inventory can be a killer of cash.

Aging Inventory by Jerry Whitehead, Pawnshop Consulting Group, LLC.

awnshop Consulting Group (PCG), with its world-wide client base, has been witnessing a wide range of trends in the pawn industry for a while. There is one trend, however, that has been very slow to change that will be examined here. One of the biggest threats that remains today for many pawnbrokers of all levels is â&#x20AC;&#x153;cash flowâ&#x20AC;?. Surprisingly, many individuals who operate in the pawn world or in financial businesses such as ours, have a general lack of understanding of the true financial metrics and what they mean, much less how to maximize their return on investment, and so on.

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We have found that for many operators, one of the “least important aspects” of enhancing financial metrics, cash flow, or operational performance, or even understanding them, can be “aging inventory” and how to deal with it. AGING INVENTORY CAN BE A KILLER OF CASH.

Tragically, many operators in this industry have virtually no understanding of what inventory yields are, much less how they relate to maximizing cash flow and ultimately, profitability. Identifying and disposing of aging inventory has been, and remains to be, a big problem for many operators today. PCG examines extraordinary amounts of aging inventory in many operations around the world. From our experience, operators focus purely on gross margins on their inventory sales versus what the inventory yields are which illustrate the overall profitability on the investment in that asset class (inventory). We look at the overall profitability on inventory much as we do the loan yields, or our annualized projected income we make on either asset class (loans/inventory). In the case of inventory, aging inventory can greatly hamper our ability to increase the yields and enhance the overall turn of cash in the inventory investments in general. The simplest math I can illustrate for how the inventory yields are calculated is as follows:

n 50% margin turned 1 X annually = 50% yield n 40% margin turned 2 X annually = 80% yield n 35% margin turned 3 X annually = 105% yield n 30% margin turned 4 X annually = 120% yield

Over the years PCG has defined and instituted a number of ways to address and handle aging inventory issues. Aging is examined by us in the following categories: n Over 90 days n 90 – 180 days n 180 to 360 days n 360 to 720 days n 720+ days

For most of the operators in the U.S. dealing in general merchandise, we look at the overall performance of the inventory asset in general – turns X margins – to determine how effective an operator may be in disposing of his or her assets in a profitable and timely manner. After the initial consult, we compile the inventory data (based on availability) and look at what the dollar amounts are along with the types of goods in each of these date fields as described above. It should be noted, for stores dealing in general merchandise, we set a minimum standard of four inventory turns per year. Translation: you’re rolling your entire investment in inventory every 90 days. Surprisingly, a large segment of operators we witness in the U.S. barely do two turns per year. There are numerous types of inventory categories that can hamper good movement. These can range from seasonal items, luxury, or specialty product in some cases. We also classify the inventory in general into three categories: (A) Premium, hard to get, hard to keep (B) Everyday, everywhere product (C) Obsolete, broken, dated, junk

In the case of (A) inventory, we believe pricing it up to fair market value of the product and giving it some shelf life is important. You want your customer base to see you deal in and generate this type of product. With this inventory class, typically no product discounting (Continued on Page 47)

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NATIONAL PAWNBROKERS ASSOCIATION

membership

Add Your Picture to This Group JOIN THE NPA BOARD OF DIRECTORS! Commit to making the industry better by sharing your time, energy, and experiences with other pawnbroker leaders. Build your network, be socially responsible, and protect the industry with a two-year term on the board. Board Candidate Requirements nM ust be a member in good standing nM ust attend an NPA Legislative Conference in Washington, DC, and the accompanying Board

of Directors meeting held in conjunction with the Legislative Conference OR attend two consecutive Board of Directors meetings prior to being considered as a candidate for the NPA Board of Directors All newly-elected Board members will be installed at the annual meeting on Tuesday, July 9, 2019, and will serve a two-year term. For more information about the requirements, commitments, and the nomination process, email Dana@NationalPawnbrokers.org.

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NATIONAL PAWNBROKERS ASSOCIATION

SPRING 2019

(From Page 45)

Aging Inventory

is suggested until the inventory hits the 60-day time window, at which time it is necessary to focus on selling the product with reasonable markdown incentives. In the case of (B) inventory, the simplest formula for success is just price it to sell. If you have $100 bills priced at $90 dollars, they will sell themselves. Price this level of inventory to sell eliminating most negotiating. We encourage our clients to consider what the liquidation value of general merchandise is along with any other product much like scrap at time of presentment. What can we melt it for? Lending and buying that works on the melt theorem of all product in general enhances, in most cases, Pawn Service Charges (PSC) and inventory yields if they really get it. In the case of (C) inventory, it’s open season. We have many of our clients set up tables or sections in the store(s) with product that says, “Free. Ask associate.” In these cases, we encourage purchasing clients who spend, say $100 for XYZ inventory, that you suggest, “Thank you for your $100 purchase today. Please pick one of those free items off that table.” This allows us, at store level, to effectively charge it off on sales we’re presumably obtaining margin on anyway. Add-on sales, even at zero to product we may be making margin on, usually yield net sales even with the charge offs. It’s a very effective way to dispose of aging

inventory, and people generally like free stuff. On (C) type inventory, be careful. It has a way of duplicating itself on the floor and we have to work aggressively to keep this product vanishing. It’s typically not what clients want to see, much less buy. In the cases of extreme obsolete and broken inventory, donate it to the Salvation Army (which was started by a pawnbroker) and be done with it. Time is money. Every time we test it, move it, display it, audit it, or clean it, we’re losing money on it! Over the years, we have developed a number of creative enhancements to properly motivate people or groups to dispose of aging inventory. In many of our larger multi-store groups we consult with, and even smaller operations, we introduce aging inventory penalties that are charged off the manager’s monthly bonus. The older the inventory is, the bigger the penalty off their bonus. Translation: “You love it, you’re paying for it.” You would be surprised at how expeditiously most of our management teams mysteriously find ways to get rid of this product. I have said for many years there are two types of operators in this industry – collectors and retailers. Which side of that curtain are you on? Jerry Whitehead Pawnshop Consulting Group, LLC. www.pawnshopconsultinggroup.com jerry@pawnshopconsultinggroup.com (954) 540-3697

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NATIONAL PAWNBROKERS ASSOCIATION

business solutions

Using Technology to Drive Customer Success

he customer is more demanding than ever before, and it’s time to step up to the plate. How can your pawn store strengthen brand loyalty, increase customer happiness, and provide more convenience? Pawn stores that utilize technology to manage and enhance the entire customer experience will reap the biggest rewards. To understand how to leverage technology, we must first define Customer Success. It’s more than a buzzword. In fact, the biggest pawn chains in the world have newly created Customer Success departments.

NATIONAL PAWNBROKERS ASSOCIATION

SPRING 2019

Customer Success is when a customer achieves their desired outcome through their interactions with a company. A customer’s desired outcome can range from making a payment to getting a ring sized; from finding out how much they owe to buying a gift for their significant other. In this article, we’ll cover three technologies available to your pawn store, and how each can help you shine above the competition and leave a lasting impact on your customers.

TECHNOLOGY:

Company-Branded Mobile App

PROVIDE MOBILE ACCESS THAT SIMPLIFIES YOUR CUSTOMERS’ TASKS.

Customers want and need information. They want an easy, all-in-one place way to get that information. They want a way to connect with your store from the convenience of their couch. Customers expect and deserve an easy way to do so. Mobile apps allow a pawn store to provide information while also satisfying a need. Think about a mobile banking app, like Wells Fargo. Account holders are able to view their account summary, deposit checks, transfer and make payments, and reach customer support. Consider Walmart’s mobile app that enables customers to arrange in-store pickup, checkout, utilize money services, fill prescriptions, and receive new markdown notifications. The fear that customers will no longer come into your pawn store is unsubstantiated. In fact, Walmart customers who have downloaded the app shop in-store twice as frequently. A company-branded mobile app for your pawn store allows your customers to engage with your company without labor and effort involved. Customers can view their sales and loan history, make loan and layaway payments, shop inventory, see newly priced items, initiate a loan, buy, or purchase, receive push notifications, and chat real-time. Mobile technology saves your store time and money, while expanding your store hours to 24/7.

TECHNOLOGY:

Social Media and Review Sites

GO WHERE YOUR CUSTOMERS GO.

Most consumers now carry posting and purchasing power in their pocket every second of every day. Customers are self-educating, evaluating brands, and interacting with pawn store brands via social media. By the numbers, an astounding 85% of consumers trust reviews as much as a personal recommendation. Be where your customers are: Google, Yelp, and Facebook. Start by building a presence in all three channels. A pawn store’s social media mission is to add value to your customers’ busy lives. Share listings for newly priced inventory, and include your address, phone number, and store hours. Long before social media and review sites, if a customer had a bad experience, they simply would not return. Now, you can harness the power of the internet to attract new customers, keep happy customers happy, and turn upset customers into happy ones. Reviews matter, and if you don’t ask for one, you’ll end up with a feed of upset customers. Solution: ask your customers to leave a five-star review. Use technology to send a text message with the link or email a discount to those who leave a positive review. When your customers do leave a review, follow up quickly. Responses should always be empathetic and be sure to escalate issues quickly and offline. Your response to positive reviews will bolster the customer’s experience and encourage others to also leave positive reviews. A meaningful response to a negative review has the power of turning a disgruntled customer into a repeat customer. Consistency is a must. So, if monitoring multiple social media sites seems overwhelming, set up push notifications so that you’re getting every request.

TECHNOLOGY:

Marketing Automation

MORE RELEVANT, FREQUENT, AND SUSTAINABLE ENGAGEMENT WITHOUT THE TIME, EFFORT, AND HEADACHES.

The goal of your business in terms of customer interactions is to generate loyalty. There is no better way to do that than to make your customers feel valued and offer superior customer service. Marketing automation allows a pawn store to optimize and automate communication with customers via software. SPRING 2019

NATIONAL PAWNBROKERS ASSOCIATION

business solutions To deliver the best customer service, it’s highly recommended you offer your customers more than one communication channel, such as text messaging, email, and push notifications. Each channel is powerful, with 90% of text messages and push notifications being opened within three minutes of receipt and 320% more revenue generated by marketing emails than non-automated emails! Software gives you both the marketing channels and the customer segmentation. Customer segmentation ensures that you’re sending individualized messages at the right time to the right customer. It is not relevant to send a birthday text to somebody who is not having a birthday this month; or a layaway reminder payment to somebody who doesn’t have a layaway. Customer segmentation allows you to break down your customers by age, gender, loan and sales activity, dollars spent, zip code, number of transactions in your store, and outstanding loans and layaways. Use technology to send welcome messages to new customers, thank you notes to customers who spend money with you, promotions to customers who have high loan balances, and birthday discounts. Marketing automation empowers you to remind customers about your store and show appreciation for their patronage without lifting a finger. Customer Success focuses on relationships first, new customer acquisition second. Technology allows your pawn store to have consistent, one-on-one, meaningful interactions with your customers. The pawn industry is fortunate to have technology available that leverages mobile apps, social media, review sites, and marketing automation. Your ability to leverage the technology available will result in customers who spend more, return for more, and share their great experience.

About Bravo: Bravo Pawn Systems is a point-of-sale, e-Commerce and mobile platform for the pawn industry. Launched in 2011, Bravo is the only pawn software developed by pawnbrokers for pawnbrokers. As the only Microsoft Azure cloudbased pawn software system on the market, Bravo strives to enable pawn stores to grow their business by providing innovative technology and world-class customer service to help them compete with national big box stores. Visit bravopawnsystems.com or call us at (888) 407-6287 to learn more.

community involvement

Silly Rabbit - Pawn Is for Kids! FBL SCHOLARSHIP APPLICATIONS NOW BEING ACCEPTED IF YOU, OR ONE OF YOUR CUSTOMERS, know a college student in need of tuition help, now is the time for them to apply for a Future Business Leader (FBL) scholarship from NPA. According to CollegeBoard.org, approximately two-thirds of all students require some amount of financial help to meet the cost of their higher education. With dramatic increases in tuition fees and the soaring cost of textbooks, the demand is now greater than ever. The FBL program was started in 2003 to give college aid to the children of pawnbrokers or their customers. Since inception, the program has awarded over $150,000 in scholarships. To apply for the scholarship, download the application and guidelines that can be found at NationalPawnbrokers.org/community-outreach. Submit the completed form along with the other requirements by Friday, April 20, 2019, to be considered. Scholarship recipients are chosen based on academic performance, community leadership, and written essay submissions. If you don’t know a student, but would like to donate to the fund, send your tax-deductible contribution to NPA, PO Box 508, Keller, TX 76244.

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SPRING 2019

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community involvement

Decade of Giving by Emmett Murphy

NATIONAL PAWNBROKERS ASSOCIATION

SPRING 2019

he National Pawnbrokers Association (NPA) celebrated the 10th anniversary of its Gift Day donation drive on December 6, 2018. The annual event partners NPA members with charitable organizations providing musical instruments to veterans, underprivileged youth, and struggling school band programs. This yearâ&#x20AC;&#x2122;s event marks a decade of pawnbrokers donating musical instruments and cash, or performing community outreach on behalf of NPAâ&#x20AC;&#x2122;s Gift Day effort. NPA president, Tim Collier, notes,

“We are proud and excited to celebrate our 10th year of Gift Day. Pawnbrokers have a rich tradition of giving back to their communities and supporting veterans and military families through philanthropic support on the community level.” Gift Day was first launched on December 6, 2009, when the efforts of a large group of NPA member volunteers from 17 states came together to donate hundreds of instruments, including guitars, keyboards, flutes, clarinets, violins, trumpets, trombones, saxophones, and various percussion instruments to local schools and groups in their communities. The donation drive received the attention of the media and was endorsed by Georgia Governor Sonny Perdue, who declared December 6 as Pawnbrokers Day for the state of Georgia. Each subsequent year, Gift Day has shifted its focus and tactics to best provide assistance to those organizations that need it the most.

Gift Day History In past years, pawnbrokers have donated thousands of new and gently used musical instruments and monetary donations to VA hospitals, public school music programs, veterans’ groups, and children’s programs in almost every state in the nation. Here are a few highlights: 2009 NPA member volunteers simultaneously launch first annual Gift Day events in 17 states. 2010 NPA partners with Boys & Girls Clubs of America. NPA members install Toys for Tots donation bins in their pawn stores. 2011 NPA partners with Anthony Ameen and his organization, Wings for Warriors®. The partnership resulted in donation events at three VA medical centers: Warrior and Family Support Center in San Antonio, TX, Armed Services YMCA Naval Medical Center in San Diego, CA, and Walter Reed National Military Medical Center in Bethesda, MD. Wayne Williams of M & M Merchandisers, Inc. provided instrument donations and shipping coordination for these special events. Additionally, pawnbrokers in over eight states teamed up to donate 100 guitars to the Shepherd Center music therapy program in Atlanta, GA. 2012-2017

Recently, NPA members were asked to donate financial contributions to Operation Homefront to benefit veterans and military families on December 6, 2018. Operation Homefront’s mission is to build strong, stable, and secure military families so they can thrive, not simply struggle to get by, in the communities they worked so hard to protect. NPA members stepped up to the call by donating significant cash gifts to Operation Homefront on behalf of Gift Day. “It’s exciting to see overall participation and the number of donations growing from year to year,” said Mr. Collier. “I feel proud knowing

The NPA worked with The Mr. Holland’s Opus Foundation and Felice Mancini, daughter of noted composer and musician Henry Mancini, to deliver cash donations and musical instruments to many school music programs across the country, such as Rowan Middle School in Jackson, MS, Lee High School in Huntsville, AL, and Mae Hensley Junior High in Ceres, CA. In 2017, the NPA worked with The Mr. Holland’s Opus Foundation and Music Rising to rescue the musical culture of the Central Gulf region of the U.S. from the destruction caused by the catastrophic hurricanes Katrina and Rita, by replacing the musical instruments lost or destroyed in the deluge. Co-founded by U2’s the Edge and legendary producer Bob Ezrin, Music Rising provides aid to schools affected by natural disasters nationwide. 2018 NPA partnered with Operation Homefront to provide donations to veterans and military families in need.

SPRING 2019

NATIONAL PAWNBROKERS ASSOCIATION

community involvement that our contributions are helping to change people’s lives.” The NPA would like to thank the following donors for their participation in the Gift Day donation drive: Ronald Krasner, The PawnShop, Inc., Chula Vista, CA Christopher McCarthy, Lowell Jewelry & Loan, Lowell, MA Richard Rose, Fulton Loan Office, Inc., Atlanta, GA Dana Meinecke, Keller, TX Helen Moore, Fort Worth, TX Emmett Murphy, 3 Click Media, New York, NY Louis Tansky, Uncle Ben’s Pawn Shop, Cleveland, OH Christina Roosman, Jewelry Journey & Co., Cape Girardeau, MO

Operation Homefront is a national 501(c) (3) nonprofit organization which provides short-term and critical financial assistance, long-term stability, and recurring support programs to military families. Donations from the NPA will make a real difference in their lives because 92% of Operation Homefront’s expenditures goes directly toward programs and services for these families. Among its many achievements, the organization has fulfilled over

Positive Media for Pawnbrokers The result of NPA’s Gift Day event goes even further than the smiles on children’s faces and giving help to those in need. The event has generated outstanding positive attention for pawnbrokers on a national and local level. The news coverage, television reports, and fun Gift Day giving events have helped journalists, lawmakers, law enforcement, educators, community leaders, and the general public to understand that a pawnbroker is an important, charitable, and valuable part of their community. On December 6, 2009, on the very first Gift Day, pawnbroker Pappy Clarke of Pappy’s Pawn in Knoxville, TN, made a significant donation on behalf of the NPA Gift Day to his local school district that struggled to provide instruments for students due to a lack of sufficient state funding. He was interviewed for a local television station about his Gift Day donation. He wrote and sang a song that was broadcast across the state that sums up the spirit of Gift Day. 54

NATIONAL PAWNBROKERS ASSOCIATION

SPRING 2019

38,000 requests from military families across the U.S., providing more than $22.5 million in relief, accepted 600 military families into the Homes on the Homefront permanent housing program, and provided well over $64 million in home equity to military families. NPA will continue to work with Operation Homefront on an ongoing basis. Members of the NPA can give online at any time throughout the year as the needs of military families and veterans continue to mount by visiting Nationalpawnbrokers.org/gift-day. Inspiration for the Gift Day charity drive came from the example set by St. Nicholas of Myra, the patron saint of pawnbroking, who was famed for secretly throwing three bags of gold into his neighbor’s window in hopes that the neighbor’s daughters would be spared from a life of enslavement. In the spirit of this generosity, Gift Day strives to put musical instruments and donations into the hands of those who need them the most. “St. Nicholas Day” is observed on December 6 in regard to his reputation as a bringer of gifts. His three bags of gold may have been the source of inspiration for the international symbol of pawnbrokers.

“Song to Students”

by Pappy Clarke

Let me tell the story, I can tell it all, About a local pawnshop that came to give

it all,

To those needy students covering our land, Who want to play an instrument if they their hand.

had it in

Money’s gotten tighter in these past few years

You can see the disappointment in our

children’s tears, But if we come together like the Beatles said, We can bring much joy and put music in their heads. And it’s for students, students all across this land, Dust off that old instrument and put it in

their hand. Students, students let’s give to those who need, Give the gift of music and plant that early seed!

BOB MOULTON

In the spirit of Gift Day, Bob Moulton, founder of National Pawn in Durham, NC, has donated over 3,500 musical instruments to more than 20 schools and a total of $60,000 in cash since 2011. Brian Moulton, who is a member of the NPA Board of Directors and son of Bob Moulton, is also participating. In 2018, he presented eight public school music programs in North Carolina with at least 100 musical instruments and $2,000 to each school on behalf of National Pawn. The generous donations have received local and regional press coverage and a warm reception from the communities and schools that they benefit. Bob Moulton has always sought to give back to the communities his stores serve and was specifically inspired to support music education through his own experiences growing up. Enamored by music as a child, Moulton wanted to join his middle school band in Durham, NC, but financial strains made it difficult for his parents to purchase a new instrument. It wasn’t until his mom found an affordable instrument at a yard sale that he was able to live out his musical dreams. Now a successful businessman, Moulton wants to ensure that every child interested in joining a school music program has the ability to pursue those opportunities. “I’ve experienced firsthand the developmental, creative, and social benefits of being in the band, and believe it’s so important we give every student the chance to form that same sense of self and team building through music. Our hope is that this will also inspire others to donate gently-used instruments to local public schools to expand the overall community impact,” said Moulton. SPRING 2019

NATIONAL PAWNBROKERS ASSOCIATION

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state news

membership

National Pawnbrokers Association New Members

State Association Updates

NOVEMBER 1, 2018 – JANUARY 31, 2019 PAWNBROKERS Arkansas Braswell & Son Pawnbrokers • Bryant Braswell & Son Pawnbrokers • North Little Rock

Next Level Game & Pawn • First Capitol Jewelry & Loan Inc • Saint Charles Mississippi Sully’s Pawn Shop • Tupelo

Greer’s Coin & Pawn • Fort Smith

Sully’s Pawn Shop • Fulton

Pak Plaza Pawn Shop, Inc •

Oxford Pawn Shop • Oxford

Hot Springs

North Carolina

Arizona E-Z Pawn • Sun City

Super Save Pawn • Burlington

California

Arrow Pawn & Jewelry • Garner

Central Valley Pawn • Merced

Finkelstein’s Inc • Asheville

Del Norte Pawn & Jewelry •

New York

Crescent City Rosemead Majestic Jewelry & Loan Co • Fresno

Tremont Pawnbrokers • Bronx Ohio The Castle Jewelry and Pawn • Cincinnati George’s Pawn Shop, Inc • Euclid

Florida

Oregon

Pawn Max 9 • Hudson

Ace Buyers Downtown • Eugene

Pawn Max 10 • Port Richey

Pennsylvania

VIP Pawn & Gun • Lakeland

Broff’s Diamond Loan • Pittsburgh

Georgia

South Carolina

All American Pawn & Gun •

Dick’s Pawn Shop Conway • Conway

Carrollton Valdosta Pawn • Valdosta Idaho

The Mississippi Pawnbrokers Association (MPA) had another stellar year. Our lobbyist, Tom Wallace, and the MPA legislative team were on top of all bills introduced into the state legislature. One of the biggest threats to our industry today is legislation and we are fortunate to have a great grassroots relationship with our state senators and representatives. Our goal for 2019 is to continue to work closely with these government officials to help protect the interests of our membership. The MPA will be hosting the 2019 Dixie Pawnbrokers Annual Convention & Trade Show at Perdido Beach Resort in Orange Beach, AL, March 22-24. Besides a lot of sunshine, we are offering some great speakers including:

Dad’s Super Pawn • Gulfport

Arizona

Brown’s Jewelry & Loan •

MISSISSIPPI Nick Fulton, President Mississippi Pawnbrokers Association Nicholas@usapawnms.com

Springfield

n Les and Seth Gold, Hardcore Pawn TV

Tennessee

celebrities from American Jewelry & Loan, Detroit, MI

Hendersonville Pawn and Gun •

n Jerry Whitehead, Pawnshop

Hendersonville

Guns-N-Pawn • Saint Maries

Virginia

Kansas

The Pawnshop • Roanoke (4)

n Brad Huisken, IAS Training

Pop’s Pawn • Wichita

The Pawnshop • Lynchburg

n Jim Littman, Former consultant to DeBeers

Louisiana

Washington

Pelican Pawn & Jewelry •

Eastside Pawn LLC •

Denham Springs

Consulting Group

and Chief Development Officer for GIA n Moris Adato, President and CEO of the

Jewelry Appraisal and Gemological

East Wenatchee

Massachusetts

Institute (JAGI)

Fall River Pawn Brokers • Taunton

INDUSTRY PARTNERS

Michigan

RMF Consulting • Las Vegas, NV

iPawn • Detroit

Gunther Mele Packaging • Buffalo, NY

Missouri

D.N.R. Diamonds, Inc • New York, NY

We still need help with registration, continuing education forms, and introductions for sponsors and speakers. We hope you will attend and learn how to make more money, educate your staff, and find new ways to grow and protect your business in 2019. Don’t forget to bring your auction items!

Jewelry Journey & Co • Cape Girardeau

SPRING 2019

NATIONAL PAWNBROKERS ASSOCIATION

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Perfection

e live in a very imperfect time. Politics is a train wreck. The globe is heating up at an alarming pace. Traffic is terrible as is road rage. And the Yankees are good again. It’s not an extraordinary leap to think we live in the worst of times. With all of this chaos working against us, I thought, as a public service announcement, I would identify some perfectly rare items that we can all cherish. In the vast ocean of list stories, this is the Perfect List Story, so here you go. The perfect weather: San Diego. Duh. The perfect job: a weather person working in San Diego. Why networks there don’t simply put up a sign that reads “72 degrees and sunny” and save the money on TV talent is anyone’s guess. The perfect bagel: Cinnamon-

Raisin. Quit shaking your head. The perfect drink station at a restaurant: allows for 2-3 people at a time to work together without running into one another, must be far enough away from the ordering area so there are no traffic snarls, must offer Coke Zero, black iced tea, and Diet Dr. Pepper. It offers straws and sweetener at eye level and a handy garbage chute. The perfect number of kids: Two. No one wants to be “Fredo” or “Jan” (aka the middle kid), so this is not debatable. Five years apart is ideal so you don’t have both of them in college at the same time. Learned that in my online Money Matters class. The perfect day of the week, time of the day, and month of the year: Friday, 4 pm, October. Why, you ask? Let’s start with Friday. Many would argue vehemently for Saturday since it’s the first day off on the

NATIONAL PAWNBROKERS ASSOCIATION

SPRING 2019

By Rudy J. Klancnik

weekend. And that’s certainly a valid point. But Friday edges Saturday at the finish. First off, Friday is all about anticipation for the weekend, which means co-workers spend most of the day excitedly talking about weekend plans. This draws you into that euphoric feeling. Friday also is almost always a short day. You’re typically not staying late on Friday unless you’re a super-duper butt kisser. Friday is the doorway to happiness, so Friday is the best day of the week. 4 pm is the best time of day because it signals your work day is almost over and you’re far enough past the 2 pm depression that always comes after lunch and the 10 am depression that comes with thinking how long you still have left in the work day. And October is the best sports month which makes it the best month. Baseball’s postseason, NFL and college football going full

throttle, and hoops and hockey starting up – the other 11 months just can’t compete. The perfect road trip: Any trip that includes mountains, an ocean, or an awesome forest, and doesn’t exceed four hours. So, sadly, Dallas to Lubbock does not make the list. The perfect sporting event: NFL games are way too scary for my taste since I’m not a blackbelt and don’t enjoy inflicting my children to more cursing than a Hell’s Angels rally. Baseball is a tad slow and the NBA is a tad meaningless until the final five minutes. So, for my money, the perfect sporting event is a bigtime college football game. Nothing comes close to the pageantry of a Saturday in, say, College Station, Ann Arbor, Athens, or Gainesville. The perfect TV show: I grew up on classics such as M.A.S.H, which perfectly mixed comedy and

drama. And I loved the Sopranos, Breaking Bad, and Seinfeld. But for pure storytelling, acting, suspense, conspiracy theories, and smarts, Lost is the perfect TV show. The perfect death row meal: Double-double animal style from InN-Out Burger. Fries from McDonald’s. A dozen chocolate chip cookies from Tiff’s Treats. A sweet tea from Chicken Express. If some of these aren’t in your state, trust me on this. The perfect food to eat in your car: Fries. The perfect college degree: Journalism. I hear you snickering. Yes, newspapers are dropping like flies and our President attacks the profession like a blitzing linebacker hitting a quarterback. But journalism teaches you three indispensable skills that will last you a lifetime. 1) You’ll learn how to ask good questions and then shut up and listen. 2) You’ll

SPRING 2019

learn how to write short, meaningful sentences that don’t clog up anyone’s e-mail box. And 3) you’ll learn to be curious about a wide variety of topics. The perfect athlete: LeBron is the greatest basketball player of all time and at 6-8, 290 pounds, he’s a physical freak. Yes, there’s nothing perfect about the hairline, but LeBron on the basketball court is Michelangelo with a paint brush. The perfect commute: Some might say the perfect commute is walking from your living room to your home office. But I believe everyone needs some time to detox before and after work. The perfect commute time is 28 minutes. That’s enough time to listen to your favorite talk show or call a friend, but not so arduous that you’re looking to strangle someone by the end of the drive.

NATIONAL PAWNBROKERS ASSOCIATION

calendar of events MARCH 2019

DIXIE CONFERENCE AND TRADE SHOW March 22-24, 2019 Perdido Beach Resort Orange Beach, AL Contact Nick Fulton: Nickfulton@comcast.net Dixieconvention.com

APRIL 2019

CALIFORNIA PAWNBROKERS ASSOCIATION SPRING CONFERENCE April 6-7, 2019 AC Hotel San Francisco Airport Oyster Point Waterfront San Francisco, CA Contact Kim Andosca: KAndosca@amgroup.us NPA LEGISLATIVE CONFERENCE April 30 - May 1, 2019 The Liaison Capitol Hill Washington, DC Contact Dana Meinecke: Dana@ NationalPawnbrokers.org

MAY 2019

MIDWEST PAWNBROKERS CONFERENCE AND CONVENTION May 18-19, 2019 Galt House Hotel Louisville, KY Contact Greg Engstrom: Gregengstrom@hotmail.com Midwestpawnconvention.org

JULY 2019

PAWN EXPO 2019 July 9-11, 2019 The Mirage Hotel & Casino Las Vegas, NV Contact Helen Moore: Pawnexpo@NationalPawnbrokers.org

SEPTEMBER 2019

CALIFORNIA PAWNBROKERS ASSOCIATION ANNUAL CONFERENCE September 27-29, 2019 Renaissance Long Beach Hotel Long Beach, CA Contact Kim Andosca: KAndosca@amgroup.us

index of advertisers 3 CLiCk Media 55 (212) 365-0691 3clickmedia.com Aria Diamonds 36 (248) 961-0506 (404) 474-1563 Aarav Diamond Inc 51 (212) 944-1553 Aaravdiamondinc.com ABC Diamond Buyer 56 (586) 354-7274 Abcdiamondbuyer.com Atish Diamond 46 (212) 938-1005 Bluestone Trading Company Inc Back Cover (888) 800-BLUE (2583) Bluestone-trading.com Bravo Pawn Systems 5 (888) 407-6287 Bravopawnsystems.com Data Age Business Systems/ PawnMaster 7 (888) 949-7296 Pawnmaster.com Di-Moksh Diam, Inc 13 (213) 479-3023 Dimokshdiam.com Dia Trendz 6 (866) 337-7464 Thetrendz.biz Diamonds and Jewelry Services 25 (973) 303-8389 Electronic Transfer 51 (800) 757-5453 Electronictransfer.com FCP Diamonds 37 (774) 203-6796 Fcpdiamonds.com Garrett Metal Detector 37 (800) 527-4011 garrett.com Geib Refining 29 (800) 228-4653 Geibrefining.com Gemological Institute of America 42 (800) 421-7250 Gia.edu

JAGI 14 (844) 240-JAGI Jagilab.com Mid-States Recycling & Refining 3 (800) 551-0083 midstatesrecycling.com Midsouth PM 33 (800) 895-1874 Midsouthpm.com MOD Diamond Group Inside Front Cover (646) 603-7983 Moddiamondgroup.com Pawnbroker Financing 42 (303) 373-1300 pawnbrokerfinancing.com Rapaport Auctions 10 (212) 354-9100 rapaportauctions.com RMF Consulting Group 51 (866) 204-7209 checkconsultants.com Shri Diamond Inc 59 (212) 840-0650 Simplex Diam Inc 41 (212) 883-0888, ext 1007 simplexdiam.com Sparkle & Dazzle LLC 17 (212) 789-9088 sparklendazzle.com Stallcup Group 32 (817) 479-3880 stallcupgroup.com Stuller, Inc 19 (800) 877-7777 stuller.com Surya Capital LLC 56 (800) 242-7766 diamondmelle.com United Precious Metal Refining, Inc. 43 (800) 999-FINE (3463) unitedpmr.com Wexler Insurance Agency Inside Back Cover (800) 432-1853 wexlerinsurance.com

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

NATIONAL PAWNBROKERS ASSOCIATION

SPRING 2019

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