National Pawnbroker Summer 2018 by National Pawnbrokers Association

Pawnbroker National

Official Publication of the National Pawnbrokers Association

Summer 2018

Pawn Expo 2018

Turn Vision Into Action Plus:

Never Lose a Customer

Two Sides to the Coin

message from the president

Building a Stronger NPA

Tim Collier NPA President

I’ve been reaching out to pawnbrokers and vendors across the country for new ideas to make the NPA better and stronger. Between the CAPA convention in San Diego, the Texas Association of Pawnbrokers show in San Antonio, the Dixie Educational Conference in Little Rock, and the Midwest Pawnbrokers Convention in Louisville, I’ve had the distinct honor to meet many longtime and first-time pawnbrokers. Through these relationships, I hope to continue to build an NPA that will endure the test of time. The communications, vendor, membership, and convention committees have been hard at work coming up with ideas to take us to the next level. You’ll see many of these new ideas implemented at Pawn Expo this year and even more as we move through 2019. Through surveys at some of the regional shows, we’re better able to market the NPA and communicate what we have to offer in addition to creating value for your membership in the future. I appreciate the input from pawnbrokers and vendors and will continue to solicit new ideas. Make plans to attend Pawn Expo July 10-12, 2018, at the Mirage Hotel in Las Vegas. We’ve moved to the hallway next to the Terry Fator Theater bringing the meetings closer to the hotel. Joey Coleman will be delivering the keynote address on the changing face of the customer and will also present a session on how to make the customer’s first 100 days a remarkable experience. We are also excited to hear from experts who will share insight on new revenue streams for your pawn stores. I’m especially excited to hear from Jeffrey Hess, an expert on fine watches, on what to look for in luxury watches and the fakes we sometimes come across. If watches are not your interest, how about the future of the pawn business as we move closer to a cashless society? Nikolas Badminton will address that concept. The Pawn Expo Trade Show is the lifeblood of the convention and this year is no different. The exhibitors work hard to keep up with trends and changes in the pawn industry. We’re excited to welcome new vendors and always appreciate the longtime vendors who support the industry through their attendance and sponsorship year after year. Bring your diamonds to sell at the show on Tuesday at The Marketplace or during the trade show hours on Wednesday or Thursday. Selling your melee diamonds is a way to offset the expense of coming to Las Vegas. I’m excited about the direction of the NPA and Pawn Expo and honored to help make your membership experience valuable and worthwhile. We must continue to evolve as an industry to remain relevant and it takes all of us pulling in the same direction. Please reach out to me at any time (tim@pacerltd.com) and share your thoughts on how to make the NPA stronger. I look forward to visiting with you in Las Vegas this July!

summer 2018

National Pawnbrokers Association

contents SUMMER 2018

Cover Story

Contributors for this issue of National Pawnbroker

Pawn Expo 2018: Turn Vision Into Action 34 Membership

HIGHLIGHTS Never Lose a Customer

Two Sides to the Coin

IN THIS ISSUE 1

Message from the Executive Director

Creating a Disaster Plan

for Your Business

Parceled Mix-Ups

Understanding Firearms Liability

Multi-Store Profile: LDPM, Inc (Picasso Pawn)

The 8 Pâ&#x20AC;&#x2122;s to Profitability

The Pawnshop Guitar

Notice of Annual Membership Meeting

Pawnbroker

Tim Collier Pacer, Ltd

Young Pawnbroker to Watch

Behind the Scenes

Industry Partner

Book Corner

Pawnder This

Calendar of Events

Advertiser Index

50 57

A Pawnbrokerâ&#x20AC;&#x2122;s Politician

Conference Recap

Diana Jarrett Dianajarrett.com Rudy Klancnik Bob McCullough Pawn Plus, Inc.

Scott Sweeney Marshall & Sterling

National Pawnbrokers Association

Lois Haycock M&M Wholesale

Kathy Pierce Monster Pawn

2018 Legislative

John Fierst Jewelers Mutual Insurance Group

Edwin Pierce Monster Pawn

Great Scott!

Fran Bishop NPA Government Relations Liaison Joey Coleman Design Symphony

Government Relations

Nikolas Badminton Nikolasbadminton.com

State Association Updates

Merchandising:

Member Spotlights

New NPA Members

Business Solutions More Money For Melee

Anniversaries

Message from the President

NPA 2018 Membership

summer 2018

message from the executive director

NPA staff Dana Meinecke

Turn Your Vision Into Action Do you see it? Is it coming into focus? We’re talking about your “vision” for success. If it’s still not crystal clear, join us at Pawn Expo 2018 this summer and learn how to turn those fuzzy concepts into a successful reality. This year’s convention, held July 10-12 at The Mirage in Las Vegas, NV, offers a number of exciting speakers guaranteed to inspire some new ideas. Joey Coleman will share his tips on how to Dana Meinecke best serve your customers so they keep coming NPA Executive back for more while Nikolas Badminton will Director enlighten you with his thoughts on how a cashless society will change our way of doing business. Get a sneak preview of their presentations on pages 30 and 46. We’re also offering three education sessions specifically for managers: n Human Resources – Employee Engagement and

Your Company Culture, presented by Cathy Gish, Brittex Financial n Say It Again – Management Isn’t Leadership, presented by Los Ellis n Federal Compliance in 2018, presented by Fran Bishop and Kathy Pierce And, of course, there will be plenty of networking opportunities for you to catch up with all of your pawnbroker friends and to meet the new attendees. We’ve added a Young Professionals Reception on Tuesday and an afternoon reception on the Trade Show floor on Wednesday. A little food and beverage makes any connection a lot more fun. The Trade Show will be open Wednesday and Thursday, and along with many of our longtime exhibitors, we’ve added some new ones that we’re sure you’re going to like. If you’re bringing diamonds to sell, Bob McCullough provides some tips on how to get the most money for your melee on page 14. I’d like to give a very special thank you to our Pawn Expo sponsors whose support enables us to bring you the convention you deserve. All of the exhibitors work hard to bring you the latest and greatest products and services you need to run your business, so take a trip down the aisles and see what sparks your imagination. To register, go to PawnExpo.com. Bring your vision – and we’ll show you how to turn it into action! 4

National Pawnbrokers Association

summer 2018

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

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. © 2007-18 National Pawnbrokers Association: PO Box 508, Keller, TX 76244, (817) 337-8830 NationalPawnbrokers.org EDITOR: Margie Swoyer, Margie@NationalPawnbrokers.org DESIGNED BY: SPARK Publications

Palak Diam

since 1935

WE BUY DIAMONDS

f or e v e r Diamonds & Jewelry

Ankur Diamonds the passion for perfection

FREE SHIPPING

Palak Diam, Inc. 550 S. Hill St., Suite 880 Los Angeles, CA 90013

any size any shape any quality

A N K U R S AVA N I President (213) 268-8485

I M M E D I AT E PA Y M E N T

Office: (213) 228-0077 Email: ankur81@aol.com w w w. Pa l a k D i a m o n d . c o m

c a l l u s f o r f r e e c o n s u l tat i o n s

government relations

Great Scott! A Pawnbroker’s Politician Pawnbrokers had a big win this winter in Washington, DC. On February 15, The House Financial Institutions and Consumer Credit Subcommittee had a hearing “Examining De-risking and its Effect on Access to Financial Services.” Representative David Scott (D-GA) went on record and following is his statement: Kathy Pierce Chairman NPA Government Relations Committee

“Thank you, Mr. Chairman. You know, as I’m sitting here listening to this hearing, I’m reminded of my favorite playwright, William Shakespeare. And he wrote my favorite play Julius Caesar. If you all recall with Shakespeare, when Julius Caesar’s walking through the Roman gardens with Brutus and Mark Antony, there’s this woman that wails “Beware the Ides of March”. Well, I’m here to tell you we need to beware of our banking regulators, and nowhere, nowhere is this more important than with our pawnbrokers. Let me give you an example here. Our pawnbrokers, who are the main, almost final lifeline, to the unbanked and underbanked and because of this over-regulation, because of this extension through the Bank Secrecy Act and money laundering, all of a sudden to de-risk, they are closing the bank accounts of the very people who were there to give lifeline to the most underbanked and unbanked! Making the institution in our financial system unbanked and underbanked themselves now! Why is this? Can you tell me why these banks are taking away and closing down the banking accounts of businesses that have been loyal customers and have had great relationships, with no problems? Why and what must we do to stop it? Because my Shakespearean moment would be meaningless if we do not get to the bottom of this. Because March is rapidly approaching very close. Well, we regulate pawn dealers in my

National Pawnbrokers Association

summer 2018

department, so I have great familiarity with the services that they provide – and I just keep coming back – I think it’s a misunderstanding. Data will ultimately be our friend, you know. We, as regulators, have to make sure we’re talking to the institutions that we regulate and, when we talk about risk, we talk about risking something that you mitigate, something that you understand and that you process and that you mitigate and as state regulators, we’re trying to give our institutions the tools to do that through our BSA/AML self-assessment tool.” Pawnbrokers were represented and a letter from the NPA was placed on the record. We can only get these wins through our relationships with our local representatives. 2018 will be a closely watched election cycle. Take the time to meet with your local state and federal representatives this summer and introduce yourself and your business. Meet with those who are running and those who are holding office. It’s for our industry and our communities. compliance

bank De-Risking and the Pawnbroker

by robert Frimet, CAMS

his is not a story about mythical monsters; it’s about somethin creatures or sea g that just a few short years ago didn’t even exist. Bank de-risking, also known as bank discontin uance, is something very real. You probably know someone who has had their bank account closed, threatened to be closed, or threatened to have their PayPal account shut down or suspended. If this has not happened to you or someone you know, it may just be a matter of time. On a regular basis, I receive calls from clients about getting a 30-day closure notice from their bank or processors or, in the alternative, the bank asking for more and more informat ion to keep the account open. 40

NATIoNA L PAwNbR okERS

ASSoCIATIoN

SPring 2018

government relations

2018 NPA Legislative Conference Attendees ALABAMA Fran Bishop ARKANSAS Douglas Braswell Tim Collier Joe Howard CALIFORNIA Jordan Tabach-Bank District of columbia Jessica Barakat FLORIDA David Ashe GEORGIA Ben Levinson Susan Levinson ILLINOIS Robert McCullough Greg McCullough Kathy Pierce Kelly Swisher INDIANA Robert Anderson LOUISIANA Chad Carter Kerry Rainey Dalton Rainey Josh Rogers MASSACHUSETTS Edward Bean Michael Goldstein Marc Gundersheim MARYLAND Michael Cohen Nicholas Uroda NORTH CAROLINA William Dawson Bob Moulton Brian Moulton Johnny Whiteside Tara Whiteside NEW MEXICO Valerie Davis NEVADA Craig McCall NEW YORK Lauren Kaminsky OHIO Raphael Tincher TEXAS Kathleen Barbee Saul Frank Cathy Gish Boyd Naylor Larry Nuckols UTAH Dawn Bloxham Chris Bloxham Randi Nell Trish Nell

Valerie Davis of Land of Entrapment Pawn, Albuquerque, NM, shares a selfie with Tim Collier, NPA President.

2018 Legislative Conference Recap Washington, DC April 24, 2018

embers of the National Pawnbrokers Association gathered from across the country for the Annual Legislative Conference, intent upon spreading the word to Members of Congress of the harm that bank de-risking practices are causing to pawnbrokers who are primarily small Main Street businesses. The Conference day began with a breakfast address from Rep. Blaine Luetkemeyer, R-Missouri, Chair, Subcommittee on Financial Institutions and Consumer Credit,

National Pawnbrokers Association

summer 2018

Financial Services Committee. You will recall that Chairman Luetkemeyer and Rep. David Scott, D-Georgia, made certain that NPA’s comments were properly entered into the public record during the February 15 hearing on “Examining De-risking and its Effect on Access to Financial Services”. Rep. Luetkemeyer and his staff have made themselves available to meet with us on numerous occasions over a several-year period in order to listen and learn about the problems that pawnbrokers are experiencing due to the termination of their long-standing business relationships with banks.

Rep. Luetkemeyer and his staff spent a considerable amount of time with our NPA delegates that morning and addressed several items in the financial services area. He asked for questions from the gathering and took the time to give thoughtful and insightful answers. The NPA is appreciative of his efforts on our behalf, as well as those of many other Members of Congress. Armed with the message to be delivered and information folders to leave at Congressional offices, our pawnbrokers were fully prepared as they left for the Hill. We were so pleased to have several ‘first-timers’ attend the conference this year from Arkansas, Utah, New Mexico, Florida, Georgia, Texas, and Louisiana. Together with our ‘veterans’, the Hill was definitely covered. Your NPA Government Relations

Committee will again request meetings with banking regulators as this Administration’s nominees of new leadership are confirmed and take their places at the FDIC, Office of the Comptroller of the Currency, and the Federal Reserve Board. Upon the advice of several Members of Congress and their staff, we are hopeful for a productive round of visits. On another positive note, waiting in the mailbox upon our return from Washington, was a letter from the Department of Justice in reply to our correspondence regarding last year’s end of ‘Operation Chokepoint’. I will share the following paragraph from the Acting Assistant Attorney General’s letter that is my particular favorite.

operating in an industry that is politically disfavored. The singling out of lawful businesses, including those engaged in providing legal safety-net credit options through pawnbroking, violates the Department’s obligation to impartially execute the laws.” By the time you read this, we will be preparing to travel to Las Vegas for Pawn Expo 2018. I hope to see a great many of you there. As always, if I may be of assistance to you, please do not hesitate to contact me. Fran Bishop, Past President and NPA Government Relations Liaison

“It is the position of the Department of Justice that law abiding businesses should not be targeted simply for

WE BUY DIAMONDS! WE WILL OFFER ON ALL YOUR DIAMONDS,

JEWELRY AND COLORED GEMSTONES! FREE QUICK QUOTES!

FREE DIAMOND EXTRACTIONS!

Contact Lisa or Bob!

Proudly supporting the pawn industry since 1977* 607 Sourth Hill Street Suite 811

•

Los Angeles, Ca 90014

wwdiamond@earthlink.net

summer 2018

213-622-2191

wwdiamond.com

National Pawnbrokers Association

pawnbroker spotlight

Shane’s-The Pawn Shop, Inc. Here’s Looking At You, Pawn

You’re never too young to start working in a pawn store. Just ask David Schoeneman, the owner and president of Shane’s-The Pawn Shop, Inc. David started working at his store, founded in 1955 by his father, Joseph Z. Schoeneman, and his uncle, Joe Schoeneman, at the tender age of 7. He swept floors, cleaned the glass, and polished the shoes that were in pawn. Since 1989, he has been operating the store, located 25 miles south of Chicago, with his wife, Carmencita, a former CPA. A Graduate Gemologist with a focus on loose diamonds, David transitioned the company from a full-line pawn store to a jewelry-only operation in 2007. National Pawnbroker (NP): What differentiates Shane’s from the other pawn stores in your area? David Schoeneman (DS): As a jewelry-only shop, we are constantly training our staff in the fine details of diamond grading, authenticating precious metals, and recognizing genuine higher-end watches. We stress superior customer service. The store is clean and well-lit, and the atmosphere brings in pawn customers and buyers from many surrounding communities. NP: In your opinion, what are the greatest

challenges facing pawnbrokers today? DS: First and foremost, the ever-changing political and legislative instability in our country creates an unstable business environment. The inability of local and national legislators to understand our industry continues to plague us. While we’ve made a lot of progress, we still have an uphill battle to fight on the image front. I urge all pawnbrokers, members and non-members alike, to keep their stores well-lit, neat, and tidy. It may not seem like much to you, but you do truly only get one chance to make a first impression. NP: What advice would you give to someone starting out in the pawn industry? DS: Get to know everyone you can and learn everything you can from their failures and successes. 10

National Pawnbrokers Association

summer 2018

Carmencita and David Schoeneman, Shane’s-The Pawn Shop, Inc., Chicago Heights, IL

n Know your alderman, mayor, chief of police, state

representatives, and state senators as well as building and electrical inspectors. They are all potential customers and allies. n Join your local, state, and national pawnbrokers’ associations. Join other professional associations as well. n Know the details about your insurance policy. Ask your agent questions and assume nothing. What is the rating on your safes? What does your alarm contract cover? n Train yourself and your staff in all the nuances of the product mix you choose to carry, whether diamonds or game systems. n Do promotions within your community, i.e. support a little league team, July 4th parade, etc. NP: What are some of the marketing techniques

you have used in your business? DS: We have run cable TV (most expensive and most successful), radio (least successful), billboards (most fun and controversial). We give away private label water

and promotional items, Pawn Bucks with each loan and each interest payment, and a finder’s fee/commission up to $100. We speak at Lions Club International, Rotary Club, 4H, church groups, and senior citizen groups. We once ran a promotion that if we had five inches of snow on New Year’s Day, your purchase in December was free. NP: How do you give back to the community? DS: We support two local food pantries, provide

backpacks with school supplies to local schools, help underwrite the fireworks display on July 4th, and sponsor a little league team as well as a local art gallery. NP: What is the funniest thing that has happened

to you since you became a pawnbroker?

DS: There are so many quirky events in this business I don’t know where to start. We loved the guy who pulled up in a new Cadillac Escalade with the sticker still in the window who needed to pawn something to get gas for the car. After pawning his ring (but before he left the store), he put a diamond ring on layaway! NP: Why are you a member of the NPA? DS: There are so many reasons. I have been lobbying

in Washington, DC, four times and learned about the interaction between government and the governed. I have learned more in tips and shared ideas from other pawnbrokers and seminars I have attended than I can express in one article. Over the 25 years I have belonged to my state and national associations, my membership has earned me several hundred thousand dollars.

THE FUNDS YOU NEED TO GROW YOUR PAWN SHOP

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

summer 2018

National Pawnbrokers Association

125 Stores Sold & Counting... Stallcup Group facilitates the sale of 3 more pawn shops, this time in Baton Rouge, Louisiana! January 2018 – Stallcup Group, Inc., an Exit Strategy Consulting firm, announced its successful facilitation of the sale of City Pawn Shops, an independently-owned business comprised of 3 pawn shops located in Baton Rouge, Louisiana. 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 $205M in transactions since founding the business in 2009. We are the leader in Exit Strategy Consulting, and solely represent pawn shop owners. All Stallcup Group’s clients have realized a purchase price increase of 10-50% from initial offer to final closing price.

Steve Stallcup

steve@stallcupgroup.com

817.479.3880

STALLCUPGROUP.COM

young pawnbroker to watch

Lynden Miller

District Manager, Money & More!, Waterloo and Iowa City, Iowa Years in the Pawn Industry: 13

Role model: My parents. They taught me to work hard and

How I Got My Start in the Industry: My

never give up.

family moved from California to Iowa to My Media Mix:

open our first store in 1996.

Podcasts from Pawn Leaders, Best Advice I Ever Received: Don’t take

Dave Ramsey, and Happier.

it personally. NPA Members Would Be Top 3 Goals for 2018:

Surprised to Know That:

n Increasing jewelry and luxury handbag

I am a yogi.

loans When I’m Not at Work: I Love

n Continue to develop my team members

through classes and mentoring

to bake and spend time with

n To be present for my family

my children and family.

Greatest Accomplishments in My Pawn

If I Wasn’t a Pawnbroker, I

Career So Far: Growing my store’s

Would Be: A marketer.

loan balance to the all-time highest in our company. Industry Certifications Held: GIA Graduate Diamonds Diploma; GIA Applied Jewelry Professional

summer 2018

National Pawnbrokers Association

business solutions

More Money for Melee By Bob McCullough

’ve been involved with the gold, silver, and diamond secondary market in one way or another since 1978. I was a gold buyer, wholesaler of precious and semiprecious stones, retail jewelry store owner, and finally, a pawnbroker. I’ve been a pawnbroker for over 17 years and attended my first NPA convention just after receiving my pawn license. There, I quickly learned how important diamonds, especially diamond melee, are to the pawnbroker. After attending the convention for many years, I started to bring parcels of melee to the show. I would pick a vendor, based on the recommendation of a fellow pawnbroker, and sell them my melee. After a year or two of selling this way, I tried a

National Pawnbrokers Association

summer 2018

couple of new vendors to see how they compared to each other and my eyes were opened. The vendor I had been selling to wasn’t even close to either of the other two. From this point forward, I made it my mission to learn how the diamond trade worked and how to get the most for my melee. I spent hours talking to the diamond dealers and fellow pawnbrokers to learn what they were doing that got the best prices. Over the next several years, I developed a system that I use to prepare my diamonds for sale, and a process that I use to shop and sell the goods. Following is an outline of my system and process. While this system has worked well for me, there is no guarantee you will have the same results.

Diamond plates cut from shanks

Rings to be cut up

Once you have your stones back, the first step is to remove the CZs. If you had your stones frosted, it is simple The biggest lesson I have learned is you have to to just pull the ones out that are frosted. If you didn’t properly sort your goods to get the best return. My have the frosting done at your refiner, either because they sorting process starts while the diamonds are still in didn’t offer the service or you didn’t want to hurt your color their mountings. Melee is usually well matched in each goods, then you will need to frost your goods. ring or pendant, so whatever grade one stone is, the others are the same. First, I sort all the clusters into VS Frosting the Stones and above, SI1 - SI3, I1 - I2, and finally, First, make sure your stones are the junk which is also the real off-color clean by using an ultrasonic cleaner. stuff. My sorting is done at the time I Then remove all color stones. (The cut the plates off the shanks. There is acid will harm many color stones.) no reason to send the entire ring for Place your parcel in a plastic extraction, so I use only the plates. I measuring cup as the acid will eat don’t have enough volume to further glass. Next, you will need to add sort the plates by karat, but if you want hydrofluoric acid to cover the stones. a better idea of your gold return and I use Whink Rust Stain Remover, have enough volume to make the fees available at Wal-Mart, as my source for extraction on that many more lots for the acid. (Warning: If you don’t worth it, then by all means do so. know how to handle acids, let Extraction is the process where your refiner do this.) Hydrofluoric you send your gold and silver (don’t acid is a DANGEROUS chemical. You forget that silver set with diamonds) MUST wear rubber gloves and proper containing diamonds, and possibly color eye protection. stones, to your refiner for chemical Once the stones are in the plastic removal of the diamonds and refining cup and covered with the acid, place of the precious metal. There are several the cup in the ultrasonic and let it refiners that offer this service. run for 20-30 minutes to give the acid Whink Rust Stain Remover

Sorting the Diamonds

summer 2018

National Pawnbrokers Association

business solutions

Melee w/ frosted stones

Frosted compared to diamond

time to work. Use a plastic spoon to stir every 5-10 minutes. As a check, drop a 1 ct CZ in the cup to easily see when the frosting is complete. When the frosting is complete, rinse your stones. A plastic strainer with ultra fine mesh works the best. After the stones are rinsed, pour them out on layers of paper towels to dry. The real sorting begins after they are dry. The process is long and tedious, so you may want to save yourself the time and hassle and just let the refiner do it. If you are worried you are not going to get your diamonds back, then you need to find a different refiner. Now that your stones are clean and frosted, separate all the frosted stones from the rest of your lot. This is easy to do with the naked eye. If your vision isnâ&#x20AC;&#x2122;t the best, an Optivisor works great. After all of the frosted stones have been removed, grab your diamond sieve. Start with plate #7 in the sieve. Any stone falling through will be placed in a Ziploc bag or diamond paper and labeled <7. The remaining diamonds will now be run through plate #11 and marked <11. You will continue the process with plates 15, 18, & 20. Now, if you had your lots separated by grade by your refiner, all you have left to do is sort the off color diamonds from each of your lots. Label them for size and off color so you know what you have. If you didnâ&#x20AC;&#x2122;t have them sorted, you will need to go through each of the divided parcels and separate 16

National Pawnbrokers Association

summer 2018

Diamond sieve

by grade, then by color. For this, I use a 3-legged magnifying glass and plenty of light. Once all of your lots are fully separated, weigh each lot and give that lot a number that you will use to shop the lot with. For shopping, I use an excel spreadsheet that has a description of each lot along with the corresponding lot number. With this entered into the spreadsheet, I can start my shopping. I use one page of the spreadsheet as a shopping list for each vendor. The top has the letter that has been assigned to that vendor. (I refrain from ever showing the vendor name on any material that might be seen. This way, I can share the information with the vendor and they have no idea who they bid against.) Each of the lots and their descriptions are listed down

Work Sheet

Best Price Sheet

Participating in The Marketplace and Pawn Expo 2018

Booth # 411 We specialize in buying all types of Diamonds and Jewelry, including melee, fancy and high-end single stones. the sheet. This is handed to the vendor along with the parcels. They then can write down their offer either by the carat weight or total. (Make sure you note which way the offer is being made.) Most will keep a record of their offer via a photo of the sheet or on their own form. Once you have all of your offers (I usually get a minimum of 7 and a maximum of 14), go back to the spreadsheet and enter the offers. Then simply look for the highest offer, mark it on their individual bid sheet, and go back and collect your money. Some pawnbrokers will go back and forth working the vendors against each other for a better offer. I tell all the dealers up front that the best offer takes the parcel and I will NOT rebid, so make your best offer to start with. I also tell them that I am bidding each parcel and I am splitting the parcel up. For those interested in a copy of the actual excel form I use, send an email to goldcrea@macomb.com with your request and Iâ&#x20AC;&#x2122;ll send you a copy. Bob McCullough is the owner of Pawn Plus, Inc. in Macomb, IL, and has been a member of NPA since 2001.

Come by our booth! Mitesh kothari (914) 433 2384

15 West 47th Street, #1707 New York, NY 10036, USA Tel: (212) 575-3655 | Fax: (212) 575-3658 saumildiam@gmail.com miteshkothari@aol.com www.saumildiam.com

summer 2018

National Pawnbrokers Association

summer 2018

behind the scenes

Wendy Carmichael Supporting NPA Since 2005

f you’ve been to Pawn Expo within the last 12 years, you’ve probably met – or at least seen – Wendy Carmichael. Many of you probably even thought she was an employee of NPA. But the truth is (while we would love to have her on staff), she is actually employed by HelmsBriscoe, a meetings procurement and site-selection firm. As Senior Director, Global Accounts, Wendy is a consultant for meeting planners, specializing in hotel site selection and contract negotiation support. In 2005, she met with Dana Meinecke, NPA’s Executive Director, to find a location for the 2006 Pawn Expo. She has continued to do so for the past 13 years. Even though Wendy is not an NPA employee, she attends every Pawn Expo where she volunteers at the registration desk and anywhere else she is needed. When asked what keeps her coming back every year, Wendy responded, “The connections that I have made by being onsite. I have not only been able to strengthen my connections with the staff, but I have also built connections with the members, the board, sponsors,

Wendy Carmichael is Senior Director, Global Accounts, at HelmsBriscoe.

etc. I learn so much more about your industry by coming onsite and engaging with everyone over the course of the week.” One of Wendy’s greatest career accomplishments is maintaining a consistent client base. “I have worked with the majority of my clients since I started with HelmsBriscoe 15 years ago. Our business and success are based on the relationships we develop.” Another career accolade is being recognized as a member of the HelmsBriscoe President’s Club each year at their annual convention. In light of recent events, however, Wendy’s job has become increasingly more difficult. “Hotels and meeting planners are focused on security and safety like never before. They are continuing to utilize resources that allow them to become more educated on safety and security as

summer 2018

they plan future events,” she says. Wendy hails from Baton Rouge, LA, and began her hospitality career in the hotel industry directly out of college where she studied travel and tourism. She started working in hotel operations as a front desk agent with the Hampton Inn Hotels of Baton Rouge and continued her career with the management company (Highpointe Hotel Corporation) for 15 years. She worked within Group Sales as well as on the preopening team for the various hotels they owned, and managed in New Orleans and Greenville, SC. She then moved to Hotel Sales before joining HelmsBriscoe 15 years ago. Outside of work, Wendy fills her time with family and friends, walking her 5-year-old Westie, AnnaBelle, working out, traveling, and spending time on the beach every chance she gets.

National Pawnbrokers Association

business solutions

Creating a Disaster Plan for Your Business Actionable Advice Before Itâ&#x20AC;&#x2122;s Too Late By John Fierst, Vice President of Commercial Lines, Jewelers Mutual Insurance Group

arbecues and fireworks arenâ&#x20AC;&#x2122;t the only signs that summer is here. Severe storms and natural disasters become widespread once temperatures start rising. Unlike winter storms, every area in North America can be impacted by severe weather in the summer and the damages can be more catastrophic. Hurricanes are just the tip of the iceberg. Floods, wildfires, tornadoes, and damage from wind, hail, and lightning resulting from thunderstorms can wreak havoc on homes and businesses. Because an estimatedÂ 25 percent of small businesses do not reopen after a major disaster1, every pawnbroker needs to know how to make a disaster plan. In order to make a disaster plan successful when it gets put to use, there needs to be some thoughtful and strategic thinking behind what you do. It can be difficult to know where to start, so here are four things that will help you build a solid foundation to your disaster plan. 20

National Pawnbrokers Association

summer 2018

Protect your property and inventory

There are big differences when it comes to preparing for a hurricane versus a tornado or wildfire. Some disasters allow you time to prepare, while others can leave you scrambling to take shelter. Based on where your business is located, determine what types of disasters are likely to affect you and how you need to prepare for them. Here are some general items to have on-hand at all times that will increase your safety: nB ackup generator nF irst aid kit nE xtra storage for items normally left out of a safe nS pace for signs, banners, and other displays that could cause damage to other parts of your property or surrounding properties during high winds

nT ools and accessories for minor repairs (There’s a difference between fixing a leaky sink and rerouting your plumbing - a DIY project could end up becoming a major burden)

If hurricanes are a threat to your business, these are a few actions you should take in advance of a storm making landfall: n I nstall shutters on windows or board them up. nR emove the most valuable merchandise from showcases to avoid water damage.

nS ecure locks and door frames to handle high winds and any potential looters after the storm.

nP lace sandbags at low points of your property and near doors.

n I nspect your roof and make repairs as needed.

Back up financial records and data

It could be argued that tax information, inventory records, and customer data are more important than the physical assets of your business during and after a disaster. After all, if you lose data that is not properly backed up, it is essentially gone forever. While it seems that everything can be backed up digitally nowadays, it’s worth keeping physical copies of essential information on hand if you can’t access information located on a hard drive or in the cloud. Whichever way your information is stored, remember to make sure that it’s secure and not at risk of being compromised. You could be facing a whole other disaster if your data gets compromised. Lastly, time is of the essence when your property

and inventory have been damaged. A good way to make sure an insurance claim is processed quickly — and the recovery process begins immediately — is to have vital information at your fingertips.

Create a list of key stakeholders to communicate with

First and foremost, make sure every employee is in the know. Regularly updating phone numbers and emails will help ensure this. Also, appointing one person to coordinate updates will help avoid message confusion and keep everyone on the same page. Next, in addition to your insurance agent and insurance company, determine the key parties that will help you recover from the damage. This includes the following: nC ontractors nV endors nO ther business partners If you don’t have a go-to contractor before a disaster strikes, keep these tips in mind when selecting one to help you get back on your feet: summer 2018

National Pawnbrokers Association

business solutions

nS tart a list of preferred contractors ahead of time – their services will be in high demand after a storm and they often work on a first come, first served basis.

nA sk for references and check with the Better Business Bureau before prioritizing your list.

Ask yourself the following questions to help make sure you’re adequately covered if a disaster were to strike: nA re my inventory figures up-to-date? n I s my building and business personal property

nP art of your selection criteria should be that the

valued correctly?

nC ould I be liable for damage to a neighbor’s

contractor is licensed, insured, and bonded.

nB e wary of anyone who goes door-to-door. nC onsider getting more than one estimate. nG et all estimates in writing with a detailed description of

property, too?

nW ill I be covered for any amount of lost earnings during the time when my business is closed due to

the work and, preferably, the cost to complete each task.

the disaster?

nM ake sure the contractor listens to your concerns about what has been damaged and how you’d like the damages to be repaired.

Again, assigning a point-person to manage these relationships who reports back to your general communication manager can help messages be delivered accurately.

4 |

https://www.sba.gov/business-guide/manage-your-

business/prepare-emergencies

Have the right insurance coverage

Don’t assume you’ll be covered for any peril that threatens your business just because you have insurance. Some business owners find themselves paying extra out-of-pocket expenses after a claim is filed because they don’t have well-rounded coverage or have improper limits.

National Pawnbrokers Association

summer 2018

Jewelers Mutual now offers coverage to pawnbrokers and can help your business minimize risks like natural disasters. Call (800) 3365642 ext. 2118 or email sales@jminsure.com to learn about all the other benefits of being a Jewelers Mutual policyholder. Jewelers Mutual is based in Neenah, WI and offers both commercial and personal lines of insurance. To learn more, visit JewelersMutual.com.

SAFE

SECURE

PREVENT CRIMES AND OTHER DANGERS

AVOID RISK AND FEEL CONFIDENT

WITH ADVICE FROM

IN YOUR COVERAGE WITH

OUR LOSS PREVENTION EXPERTS.

EXPERIENCED UNDERWRITERS AND A RESPONSIVE CLAIMS TEAM.

SUCCESSFUL

SUPPORTIVE

PARTICIPATE IN OUR EXCLUSIVE

JOIN A MUTUAL COMPANY THAT SUPPORTS

PROGRAMS THAT CAN HELP

THE PAWN INDUSTRY AND

GROW YOUR BUSINESS.

THE NATIONAL PAWNBROKERS ASSOCIATION

PROTECT YOUR BUSINESS. GROW YOUR BUSINESS.

Aagam

LLC

C R E AT I O N

Any Size All Qualities Any Quantity Cash payment

We buy Diamonds, High-end Watches & Vintage Jewelry

Visit us at Pawn Expo - Las Vegas NV • Midwest Pawnbrokers Convention • Dixie Pawnbrokers Convention

Aagam Creation LLC 75 John Portman Blvd, Suite 6N-306A • Atlanta GA 30303

Cell: 678.773.0195 • Off: 404.474.1563 Bhavesh@aagamcreation.com

Aagam & Aaria - Two Brands, One Identity Receive an extra 10% on your Diamonds when you trade for Jewelry

We Diamond

Aaria Inc.

www.AariaDiamonds.com 43485 Cresent Blvd. Novi, MI 48375 Phone (248) 961-0506 Aeraj@AariaDiamonds.com

Convert your recycled diamonds info finished jewelry Jewelry Made in USA

Boost Your Customer Service Automate Your Marketing

Bravo Powers Pawnbrokers Grow Your Loan Balance Engage Your Employees

888-407-6287

membership

NPA 2018 Membership Anniversaries

The NPA would like to recognize the following members who have reached milestone anniversaries with their NPA membership. They have supported the association and its mission for the past 30, 25, 20, and 10 years. We thank them for their contributions to the NPA and to the pawn industry. 30 YEARS Bluestone Trading Company, Inc Data Age Pawn Master Golden West Trading Company, Inc Houston Precious Metals Jiffy Pawn Shop Westbrook’s Pawn Shop

Cleveland, OH Clearwater, FL Las Cruces, NM Houston, TX Vernal, UT Laramie, WY

25 YEARS All Pawn, Inc Spring, TX Allan’s Jewelry & Loan, Inc. Anderson, IN Berry’s Pawn of Madison Madison, TN Boulevard Pawn Shop-Future Sales Goldsboro, NC Buckeye Pawn Shop, Inc Columbus, OH Carson Jewelry & Loan, Inc. Carson City, NV Cash Central Company Saint Louis, MO Cash Indiana Pawn, Inc Burns Harbor, IN Checks 4 Cash Michigan City, IN Decatur Jewelry & Pawn Decatur, IL Decker’s Jewelry & Pawn Columbia, SC Dynasty Jewelry & Loan Ltd Norcross, GA Empire Loan Providence, RI Goldman’s Pawn Shop Evansville, IN Hanford Jewelry & Loan Hanford, CA Hudson’s Pawn & Gun, Inc Jasper, AL National Jewelry & Pawn, Inc #1 Durham, NC Stuller, Inc Lafayette, LA Sue’s Pawnshop – Tack Shop LLC Benton, AR Sumpter’s Jewelry & Collectibles Asheville, NC Today’s Pawnbroker Vero Beach, FL Union Life & Casualty Phoenix, AZ 20 YEARS Ace Buyers, LLC Traverse City, MI Alliance Loan Company Alliance, OH ATG, Inc Milwaukie, OR Axel’s Pawn Shop Spokane, WA Bonne Terre Pawn Bonne Terre, MO Cartersville Pawn-N-Shop, Inc. Cartersville, GA Central Wyoming Pawn & Loan Riverton, WY City Pawn Shop Montgomery, AL Continental Loan & Jewelry Co, Inc. Vancouver, WA Dan’s Pawn – St. Andrews Panama City, FL Eagle Jewelry Co, Inc San Franciso, CA Ellis Tanner Trading Company Gallup, NM Empire Loan New Bedford, MA Essex Pawn Baltimore, MD E-Z Pawn Inc Port Angeles, WA Gardena Jewelry & Loan Gardena, CA Garrett Metal Detectors Garland, TX Gene’s Pawnshop, Inc Charleston, SC Goldstar Jewelry & Pawn 2 Jacksonville, FL

National Pawnbrokers Association

summer 2018

Greenbrier Pawn Chesapeake, VA Griswold’s, Inc Gallup, NM Jery’s Pawn Spring Lake, NC Kittitas Co. Trading Company Ellensburg, WA Larry’s Jewelry & Pawn Florence, AL Lincolnway Pawn Cheyenne, WY London Coin Galleries of Newport Newport Beach, CA Mustang Jewelry & Pawn Austin, TX Northwest Pawn & Collector Arms Spokane Valley, WA Parlets Jewelry & Loan Banning, CA Paul Reiser and Associates Green Bay, WI Pawn King Arnold, MO Pawn Shop Madison, SD Pontiac Exchange Pontiac, IL Rockingham Trading Post Plaistow, NH Shurlington Jewelry & Pawn Macon, GA Silver Lining Jewelry & Loan Portland, OR Triangle Pawn Brokers Beaumont, TX USA Jewelry & Pawn Saint Augustine, FL Waipahu Hawaii Pawn Honolulu, HI Wapato Pawn & Trade Wapato, WA 10 YEARS 51 Pawn Shop Atoka, TN Abbott’s Coins & Jewelry Birmingham, MI Amigo Pawn & Jewelry Brownsville, TX Atish Diamond New York, NY Bayou Pawn & Jewelry #2 Walker, LA Benny’s Pawn Shop El Paso, TX Capitol Collateral, Inc Seattle, WA Center Gold Centereach, NY Clark Loan & Jewelry, Inc Aberdeen, MD County Pawnbrokers Catonsville, MD Diamond Jewelry & Loan Inc Cleveland, OH El Bufalo Pawn Laredo, TX Garden City Exchange Inc Garden City, MI Gold N Connection Oakland Park, FL Hoover & Strong N. Chesterfield, VA J & K Associates Inc Havre De Grace, MD Kanawha Valley Fine Jewelry & Loan Saint Albans, WV Lake Cumberland Jewelry & Pawn Inc Monticello, KY LDPM, Inc Morrisville, NC Midsouth PM Bellingham, WA Pawn Cash Go Staten Island, NY Pawn Depot, Inc Holyoke, MA Pawn Express of Troy, Inc Troy, AL Pawn King Seffner, FL Precious Metal Refining Barrington, IL Southern California Safe Co Montebello, CA Sunset Jewelry & Loan Clearwater, FL The National Refining Group Commack, NY Tom’s Pawn & Wholesale Jewelry Murfreesboro, TN

RAPAPORT

DIAMOND AUCTIONS THE CASH MARKET FOR DIAMONDS

SELL YOUR DIAMONDS IN OUR UPCOMING AUCTIONS JUNE 13-20

SINGLE STONE

NEW YORK & ISRAEL

JULY 3-11

MELEE

NEW YORK & DUBAI

JULY 11-18

SINGLE STONE

NEW YORK & ISRAEL

AUGUST 7-15

MELEE

NEW YORK & DUBAI

AUGUST 29 - SEPTEMBER 5

SINGLE STONE

NEW YORK & ISRAEL

NOW OFFERING

IN-HOUSE PREMIUM BOILING SERVICES FOR ALL DIAMONDS

www.rapaportauctions.com

+1-212-354-9800

business solutions

Parceled Mix-Ups Lab-grown diamonds are sometimes found in natural diamond parcels, so now what? By Diana Jarrett

ynthetic diamond production is a sophisticated invention. It provides a legitimate niche that many consumers want. The main thing is, howeverâ&#x20AC;&#x201D;disclosure and identification all along the pipeline.

Diamond doppelgangers

In the broadest scenario, any diamond look-alike might invade diamond parcels in the marketplace. Outliers could be anything from CZs—or cubic zirconia, to Moissanite, and more. But for the most part, what is commonly discovered in large parcels including melee are HPHT (high pressure, high temperature) synthetic diamonds. CVD (chemical vapor diamond) remains a more expensive choice, often requiring a further step to its production. So, for small melee, CVD manufacturing costs makes it an unprofitable option.

Natural diamonds are costlier than their lab-created counterpart; so natural diamond parcels, particularly melee, have been found ‘salted’ with lab-grown diamonds. “Due to their intrinsic size and value, they are problematic for testing when using traditional lab methods which are effective and economically viable for larger carat stones. Since synthetic diamond manufacturers were able to eradicate most of the [telltale] metallic inclusions, the old easy way of bulk testing HPHT synthetics with powerful magnets is no longer viable,” reveals Alberto Scarani, GG, co-owner MAGILABS, Helsinki, Finland.

Why so vulnerable?

The difference between earthmined diamonds and created diamonds lies in some subtle cues the manufactured stones may give off. Natural diamonds are composed of a single element—carbon. It is singly refractive and handles light in an extraordinary way which makes it the king of gemstones. It happens to be the most durable of all natural gemstones, ranking 10 on the Mohs scale. The created variety is also comprised of a single carbon element, and likewise handles light the same way as mined diamonds and those key similarities create that vulnerability. But because grown diamonds were created in a lab as contrasted to their natural counterparts, there are some revealing clues as to their origin—including the shape of the crystal itself. HPHT diamond crystals may form in a distinctive combination of cubic and octahedral faces—whereas the cubic habit of natural diamonds is an octahedron. CVD crystals occur as flat tablets.

procedures of diamond material for (near) colorless melee-sized diamonds are rather straightforward, according to Dr. Thomas Hainschwang, director and research scientist at GGTL Laboratories Liechtenstein. The issue is more complex for colored diamonds. “For one, there is a large range of colors of naturally colored diamonds that all have different properties. Many of these colors can be mimicked by synthetic diamonds; then, there is a significant overlap in spectral properties between natural and synthetic diamonds and even in advanced fluorescence imaging there are cases that are difficult to separate,” he explains.

Detection direction

This development is being met head-on by an industry committed to preserving consumer confidence in diamonds while still allowing room for lab-grown stones to find their customer. And it can be accomplished. Diamond parcels, both large sized and melee, are subjected to sorting procedures as a matter of course. “Nowadays all the reputable labs provide melee sorting services at relatively affordable costs. The “passed” material can be safely considered synthetic-free,” Scarani says. What and where?

All the major labs are equipped with sorting devices today that verify the tested parcels authenticity. D-Secure and J-Secure offered by DRC Techno, or SYNTHdetect made by IIDGR, facilitates the separation process. G-Certain from Massive Tech Lab and GIA’s iD100 Gem Testing Device also offer other valuable testing solutions. Separating and detection summer 2018

Consumer confidence

The most efficient method of synthetic diamond detection works via screening instruments. According to Hainschwang, “Since about 2011 the polemic about mixing up of natural and synthetic colorless (D-Z) diamonds has become increasingly dramatic, and a broad range of measures, such as laboratory screening services and automatic or non-automatic screening machines, were offered to the market in order to calm the panic about this issue.” Tom Chatham, president of Chatham Gems and Diamonds, finds that intentional mixing of natural with lab-created diamonds in not that pervasive. As a veteran producer of created gemstones and diamonds, he offers his perspective on this topic. “I have a problem with all the noise being made about salting parcels. Yes, a few have been found, but a minuscule amount in the overall diamond trade. I think (Continued on Page 54)

National Pawnbrokers Association

Pawn Expo presenter

Never Lose a Customer By Joey Coleman

f you’re like most business owners, you probably spend a lot of time thinking about how to acquire new customers. And you wouldn’t be wrong to do so — it’s important to have a regular flow of new customers coming into your business. However, you might be ignoring a treasure trove of easier sales: your current customers. In other words, instead of asking yourself what you can do to gain more customers, why not ask yourself how you can keep the customers you already have? This isn’t an epidemic particular Joey to the pawn industry. The research is Coleman staggering: Regardless of where your business operates, what industry you work in, or the size of your operation, businesses are losing approximately 20-70% of their newly-acquired customers in the first 100 days of the relationship. Despite the fact that cellphone contracts are 30

National Pawnbrokers Association

summer 2018

notoriously draconian and require you to give up your first-born child to break them, 21% of cellphone customers break the contract within the first 100 days. While no one likes it when their car breaks down, even fewer people like their car repair experience. Between 60% and 70% of car owners go to an auto repair shop once and will never visit that shop again because the first experience is so poor. Restaurants live or die based on their ability to keep customers in the seats – and yet 46% of new customers to a Chuck E. Cheese pizza restaurant will never visit a Chuck E. Cheese again after their initial visit. Almost half of the new customers the restaurant worked so hard to acquire appear to dislike the experience so much that they never return. So, let me ask you this: Do you know how many customers you lose? My guess is no — and you’re not alone. You might be wondering, WHY do so many customers leave just days or weeks after they’ve agreed to work with you or buy from you? The reason is simple.

You lose customers because they feel neglected after the sale is made. The typical business does a great job getting the attention of the customer and convincing them to buy, but then does very little to create a meaningful or remarkable experience for the customer after the sale. There are many reasons why customers leave, but the main reason is that businesses systematically ignore the emotional journey of the customer. It’s not that they don’t care. It’s that the way they do business, and the way their incentives and structures are set up, create a blind spot around customer experience. That blind spot is the problem – and it’s costing companies revenue, profits, retention, and employee morale. In most organizations, new customer onboarding and experience is not consciously designed, logically structured, or consistently executed in a way that meaningfully contributes to the customer’s emotional journey. For example, it is assumed the customer read the fine print in the pawn agreement and knows what comes next in the process – even though the people making this assumption don’t usually read the agreements they, themselves, are asked to sign! What’s more, the steps in the new customer process

are done in an order and sequence that aligns with the company operations, with little care or concern for the customer’s experience or needs. Most customer experience is haphazard at best with no clear roadmap or milestones for the customer or the company to follow. In the rush to keep gaining new customers, they completely ignore the rest of the customer lifecycle (as shown in the image below). Most people don’t pay as much attention to the customer journey as they do to the sales process. And yet, that attention couldn’t be more important. Consider that when selling to a new prospect, there is a 5-20% chance of making the sale. When selling to an existing customer, that probability skyrockets to 60-70%. Focusing on existing customers makes it easier to sell your products and services and grow your business. The lifetime value of a loyal customer can be greater than 10 times the value of their first purchase. Like money left in the bank account, investments in customer loyalty compound over time. It’s no surprise that customers are leaving so quickly after they sign up. But how can you stop the hemorrhaging? You need to focus on what your new customers experience when they start working with you.

The Customer Lifecycle

Awareness

Knowledge Consideration Selection Trial

Pre Purchase

Satisfaction

Purchase

Loyalty

Advocacy

Post Purchase

The 8 Phase Customer Journey The eight phase model takes a customer from their very first interaction to the point where they are a raving fan. Every customer has the potential to travel through all 8 phases, yet most businesses fail to guide the customer all the way through to the end. In fact, most stall out somewhere between phase 5 and 6, missing out entirely on the benefit of loyal customers and raving fans. summer 2018

National Pawnbrokers Association

Phase 1 | Assess In the Assess phase, the customer is deciding if they want to do business with you. They are learning what to expect from your organization and sharing (explicitly and implicitly) their expectations for the relationship. The customer has cautious optimism at best. If you don’t position yourself as being able to fulfill their needs and provide great customer experience, they won’t choose to work with you. If you can convince them that you are the best choice, they will move forward and select you. This dance between the customer and the organization is what most people would refer to as “sales and marketing.” The potential customer is assessing their options. Phase 2 | Admit The Admit phase begins when the customer admits they have a problem or a need and believes you – the company or organization – can solve it. As a result, they buy your product or sign up for your service. This is often referred to as “the sale” and sadly, in most businesses, this is where any customer-focused initiatives end. At this point, the customer is feeling joy, euphoria, and excitement that the search is over. If you fail to acknowledge this, you miss the chance to strongly associate this emotional high with your product or service. If you meet their emotional state in this moment, you can prolong these positive feelings. This person transitions from prospect to customer when they admit that they need your product or service. Phase 3 | Affirm The Affirm phase is more commonly known as “buyer’s remorse.” The customer begins to doubt the decision to work with you. Almost every businessperson has heard of the buyer’s remorse concept, yet few businesses do anything to counter their customer’s feelings of fear, doubt, and uncertainty. If you don’t address these feelings, you will need to work overtime to get back to the state of joy, euphoria, and excitement the customer felt in the Admit phase. If you focus on these temporary feelings (before they become permanent), you can quickly shift the customer back to positive feelings. You must quickly affirm the new customer’s decision to do business with you. Phase 4 | Activate The Activate phase begins with the first major post-sale interaction, when the relationship between customer and organization first materializes in a meaningful way and the business begins to deliver on the promises 32

National Pawnbrokers Association

summer 2018

made during the Assess phase. The Activate phase can be marked by the start of the service, the receipt of a purchased product, or an initial kick-off meeting to get things rolling. The customer is excited to get started but somewhat anxious about whether everything will go as promised. If you don’t start things off on the right foot, it will be hard to overcome that first impression. If you do start things off strongly, you can build momentum to carry you deep into the relationship. The phase’s title should prompt you to energize the relationship and propel it forward. You need to activate the new relationship in a significant and meaningful way.

Phase 5 | Acclimate In the Acclimate phase, the customer learns about (and hopefully grows comfortable with) an organization’s way of doing business. Too many businesses that have delivered their service or product dozens/hundreds/ thousands/millions of times assume that everyone in the world knows their particular process. For the customer, this is the first time they’ve ever experienced this particular way of doing things. They are, at best, unsure and, at worst, frustrated by the lack of familiarity. If you don’t properly onboard the customer and get them bought in to your approach, they will never become a long-standing, loyal customer. If you do hold their hand along the way, you can ensure a smooth transition as they embrace your approach. You must acclimate customers to your way of doing business. Phase 6 | Accomplish The Accomplish phase of the customer experience occurs when the customer achieves the result they were seeking when they first decided to do business with you. This may be the time that your service delivers on the hopes they had at the beginning of the relationship, or the time they use the purchased product and achieve the desired impact. If you don’t deliver, the customer’s emotions can range from unsatisfied to angry. If you do deliver (and the customer agrees), they will vacillate between happy and ecstatic that everything went as planned. In order for the relationship to advance, the customer must accomplish their original goal. Phase 7 | Adopt In the Adopt phase, the customer takes ownership of the relationship, leading the charge on deepening and strengthening the bonds. In this phase they proudly show their support and affinity for your brand and are thrilled to be associated with your reputation. If you

don’t make them feel like a part of an exclusive tribe, receiving unique rewards and participating in a special, shared language, you will never have their loyalty. If they do feel compelled to embrace you, you will have a customer for life. You want the customer to adopt your way of operating and take an ownership stake in the relationship.

Phase 8 | Advocate In the Advocate phase, the customer becomes a raving fan, zealous promoter, and referral engine all in one. In this phase, the customer develops into a built-in, unpaid, un-commissioned marketing representative, singing your praises far and wide to other potential customers who might benefit from your service or product. If you don’t convince them to promote you by making it worth their while, they will likely continue as a customer but will never help you grow the business. If they are motivated to promote you, your business will grow in unimaginable ways. The ultimate customer is one who becomes an advocate for your business/brand. Yes, All Eight Phases Apply To You All eight of these phases are the same for every business. They show up in the same order, regardless of the type of customer you serve, the industry you operate within, or your product or service offering. All customers go through the initial phases. If you help them along the way, they will continue through the process, eventually arriving at the final phase where they become advocates for you and your business. If you don’t guide them along the way, a customer can get stuck in a phase, revert backwards, or in the worst case, exit the journey all together. Depending on your situation, the amount of time a customer stays in each specific phase differs. But the goal is always the same – keep moving your customer through the phases to stop losing customers and make every customer a customer for life. Joey Coleman helps companies keep their customers. An award-winning speaker, he works with organizations around the world ranging from small startups to major brands such as Deloitte, Hyatt Hotels, Zappos, and Whirlpool. His First 100 Days® methodology fuels the remarkable experiences his clients deliver and dramatically improves their profits. In his book Wall Street Journal bestselling book, Never Lose a Customer Again, he shares strategies and tactics for turning one-time purchasers into lifelong customers. When not speaking to audiences around the globe, Joey enjoys spending time with his amazing wife and two young sons in the mountains of Colorado.

summer 2018

National Pawnbrokers Association

Pawn Expo

July 10-12, 2018 • The Mirage • Las Vegas, NV What is Pawn Expo? Pawn Expo is the only national convention and trade show for the pawn industry. Attendees learn new ways to strengthen their company, connect with fellow pawnbrokers, and do business at the trade show featuring over 100 different companies. Leave energized and equipped with the latest industry knowledge.

What’s New in 2018 Manager-level seminars Hands-on social media training Extended education sessions on luxury handbags and watches Over 10 new exhibitors at the 130-booth Trade Show PawnExpo.com 34

National Pawnbrokers Association

summer 2018

LEARN

NETWORK

Joey Coleman

Connect with your peers and vendors.

KEYNOTE SESSION: The Changing

Networking Reception – meet old and new

Face of the Customer – How the

friends in a casual and relaxed atmosphere

Customer Will Be the Next Great

Monday, July 9, 6:00 pm – 7:00 pm

Disruptor in the Pawn Industry Tuesday, July 10, 9:15 am – 10:30 am

Welcome Reception – enjoy an evening of elegance and entertainment Tuesday, July 10, 6:30 pm – 8:30 pm

SEMINAR: The First 100 Days – Creating Remarkable

Trade Show Reception

Experiences Early in the Customer Lifecycle to

Wednesday, July 11, 4:00 pm – 5:00 pm

Guarantee Raving Fans Tuesday, July 10, 1:45 pm – 4:40 pm Joey Coleman helps companies keep their customers.

Closing Reception – pack your tropical attire and set sail for an evening of island fun Thursday, July 12, 5:30 pm – 7:00 pm

An award-winning speaker, he works with organizations around the world ranging from small startups to major brands, such as Deloitte, Hyatt Hotels, Zappos, and NASA.

Nikolas Badminton Future Shock – A Cash Business in a Cashless Society

EARN Make money at Pawn Expo. Bring your diamonds and jewelry to sell in the privacy of The Marketplace. Tuesday, July 10, 9:30 am – 5:30 pm.

Tuesday, July 10, 10:45 am – 11:45 am Nikolas Badminton is a worldrespected futurist speaker, author, and researcher. He wows

Visit over 100 exhibitors at the Trade Show. Wednesday, July 11, 12:30 pm – 5:30 pm Thursday, July 12, 9:00 am – 1:00 pm

audiences with keynote speeches on the impact of exponential technologies.

CPP 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.

summer 2018

National Pawnbrokers Association

Pawn Expo

Monday, July 9, 2018 8:30 am – 4:30 pm

CPP Courses

2:00 pm – 7:00 pm

Convention Registration

6:00 pm – 7:00 pm

Networking Reception

Tuesday, July 10, 2018 7:30 am – 5:00 pm

Convention Registration

8:00 am – 9:00 am

Annual Membership Meeting and Breakfast (members only)

9:15 am – 10:30 am

Keynote Session: Joey Coleman, The Changing Face of the Customer

9:30 am – 5:30 pm

The Marketplace

10:45 am – 11:45 am

Nikolas Badminton, Future Shock – A Cash Business in a Cashless Society

12:00 pm – 1:30 pm

Annual Awards Luncheon

1:45 pm – 4:30 pm

Joey Coleman, The First 100 Days – Creating Remarkable Experiences Early in the Customer Lifecycle to Guarantee Raving Fans

1:45 pm – 3:00 pm

Cathy Gish, HR for Managers Los Ellis, Say It Again, Management Isn’t Leadership

5:30 pm – 6:30 pm

Board of Directors and Young Professionals Reception

6:30 pm – 8:30 pm

Welcome Reception

Wednesday, July 11, 2018 7:30 am – 5:00 pm

Convention Registration

8:30 am – 9:30 am

Emmett Murphy, eCommerce & Selling Online Ezi Rapaport, The Future of the Secondary Diamond Market

9:45 am – 11:00 am

Emmett Murphy, Hands-On Social Media Thomas Chittum, FFLs – Best Practices to Protect Your Business

11:15 am – 12:15 pm

Pawnbroker Networking Luncheon (pawnbrokers only) Young Professionals Luncheon

12:30 pm – 5:30 pm

Trade Show Open

4:00 pm – 5:00 pm

Trade Show Reception

Thursday, July 12, 2018 8:00 am – 12:00 pm

Convention Registration

9:00 am – 1:00 pm

Trade Show Open

11:45 pm – 12:45 pm

Trade Show Lunch

1:15 pm – 2:30 pm

Fran Bishop & Kathy Pierce, Federal Compliance in 2018 Roundtable Discussion: How to Build Your Loan Base Roundtable Discussion: Advertising - What Works and What Doesn’t

1:15 pm – 4:00 pm

Extended Education Session – Deanna Thompson & Michael Mack, Luxury Handbags – It’s In the Details Extended Education Session – Jeffrey Hess, A Pawnbroker’s Primer in Identifying Fake Watches: Luxury or Lie

2:45 pm – 4:00 pm

David Sexton, Retail Jewelry Crime in Context Roundtable Discussion: Competing with Neighborhood Buy/Sell Facebook Groups Roundtable Discussion: Strategies for Dealing with Law Enforcement

5:30 pm – 7:00 pm

Closing Reception

National Pawnbrokers Association

summer 2018

Pawn Expo Speakers Cathy Gish

Los Ellis

Jeffrey Hess

VP Human

Thought Leader

Chief Executive

Resources and

Say It Again –

Officer, Ball Watches,

Administration,

Management Isn’t

USA & Hess Fine Art

Brittex Financial

Leadership

A Pawnbroker’s

Human Resources

Primer in Identifying

– Employee Engagement and Your Company Culture

Fake Watches: Luxury or Lie?

Fran Bishop Emmett Murphy

NPA Government

Thomas Chittum

Relations

New Media

Special Operations

Liaison, NPA

Strategist, 3 Click

Division - ATF

Federal Compliance

Media

FFLs – Best

in 2018

eCommerce &

Practices to Protect Your Business

Selling Online Social Media LAB – The Basics &

Kathy Pierce

Beyond: A Hands-On Experience

Owner, Monster

Michael Mack

Pawn

Owner, Max Pawn

Federal Compliance

& Jewelry

in 2018

Thought Leader,

Luxury Handbags – It’s in the Details

Ezi Rapaport Rapaport Group The Future of the

Deanna Thompson

David Sexton

Secondary Diamond

Customer Success &

Market

Evangelist, Entrupy

VP of Loss

Luxury Handbags –

Prevention, Jewelers

It’s in the Details

Mutual Insurance Company Retail Jewelry Crime in Context

The NPA wishes to sincerely thank our sponsors for their support.

THE TRENDZ

TURN YOUR DIAMONDS INTO CASH

summer 2018

National Pawnbrokers Association

book corner

Extreme Ownership:

How U.S. Navy SEALS Lead and Win by Jocko Willink and Leif Babin

Lauded as one of the best leadership books, Extreme Ownership is an expertly-written story by two Navy SEALS about the lessons learned in combat and how they can be translated to business leaders everywhere. It doesn’t matter whether you’re on the battlefield or in the boardroom, the leadership concepts in the book have proven to be successful. As in any company, the accent is on teamwork. Willink and Babin, two decorated combat veterans, detail how, as a team, obstacles can be confronted and overcome. It’s your responsibility as the leader to ensure team members know their mission, how to accomplish it, and why it needs to be done. If they don’t perform, it’s your responsibility to help them improve or remove them. “Extreme Ownership is a mind-set, an attitude. If leaders exhibit Extreme Ownership and develop a culture of Extreme Ownership within their teams and organization, the rest falls into place.”

OVER 30 YEARS OF EXCELLENCE IN GOLD, SILVER & PLATINUM REFINING STATE-OF-THE-ART LAB ANALYSIS AND DIAMOND RECOVERY IMMEDIATE CASH PAYMENT AVAILABLE FULL TRANSPARENCY IN-HOUSE TRADING DEPARTMENT EXCEPTIONAL SERVICE

SPECIAL OFFER UP TO

WHEN YOU REFINE THE FIRST TIME WITH MID-STATES

$100 REFINING CREDIT

AVAILABLE TOWARDS PURCHASE OF

SIGMA METALYTICS PRECIOUS METAL VERIFIER PRO MID-STATES RECYCLING & REFINING 1841 BUSSE HIGHWAY DES PLAINES, IL 60016

CALL US TO GET STARTED! 1-800-551-0083 MIDSTATESRECYCLING.COM

SALES@MIDSTATESRECYCLING.COM

SPring 2018

National Pawnbrokers Association

business solutions

Understanding Firearms Liability in Your Pawn Shop By Scott Sweeney, Marshall & Sterling

awnbrokers who deal in firearms and ammunition and/or if they conceal or open carry weapons in their stores must understand the increase in liability it creates when running their businesses. In today’s litigious society where, politically, guns are a very hot topic, having the proper insurance in place can make a difference in keeping you in business or putting you out of it. Over the years, we have had our fair share of claims relating from firearms. These include: n An innocent customer being shot in an attempted robbery n The sale of a weapon used to commit a crime n A gun accidentally discharging in a store n A gun malfunctioning after its purchase causing injury Currently the companies specializing in insuring the pawn industry will generally put a limitation on their policies when it comes to firearms and ammunition. It is important to understand these limitations and also understand what insurance is available to you and your business. There are different types of liability you are exposed to as an operator dealing in firearms and ammunition. 40

National Pawnbrokers Association

summer 2018

Liability from Firearms Created on Premise

Incidents that could cause premise liability claims could result from things like a customer being shot in a robbery, a gun accidently discharging in the store while doing a transaction, or an owner or employee using a firearm to protect people or property. Your premise liability is part of your general liability occurrence limit and should be covered on a per occurrence basis for at least $1,000,000. Products and completed operations liability related claims

These are claims that result from the completed sale of a firearm or ammunition that result in bodily injury or property damage to a third party. Incidents that could cause product liability claims could result from things like a customer purchasing a gun, taking it to a range, and the gun malfunctioning causing injury; or the sale of a gun to someone who later commits a crime with that firearm. It is the products liability limit for guns and ammunition that most pawn insurers will limit in some

way. Typically, we see limits ranging for products liability for guns and ammunition at $100,000 to $500,000; from time to time we see it at $1,000,000. For any pawnbroker who sells firearms, it is important to understand what limit you have and to discuss that limit with your agent to make sure you feel comfortable with it. Most of the insurance carriers in the pawn business have the ability to increase that limit to many millions of dollars. Umbrella insurance

Umbrella insurance is available to purchase and gives you the ability to increase your liability coverage. This type of policy is separate from the business policy you purchase and allows you to purchase many millions more of liability coverage, if you so desire. It is important to note that not all umbrella policies are created equal and that you need to pay close attention to what is being covered and not covered. Many of these types of policies will exclude coverage for firearms and ammunition which, if you sell guns, would be one of the main reasons you

would purchase this additional coverage in the first place. A firearm claim is the type of claim that could easily exhaust your business policy’s liability limits. Without an umbrella policy in place, your business assets become at risk and so does your business. It is very important that you understand your coverage – what is and is not being covered. All insurance companies treat guns differently. Some will exclude liability for guns, some will only cover it at locations you ask them to cover it at, and some will only cover guns if you sell less than a certain percentage as part of your overall sales. Make sure your insurance company understands how you run your business so they can advise you on your options and the cost of those options. There is no “one size fits all.” Scott R. Sweeney, CLCS, is a Senior Sales Executive, Specialty Risks Division with Marshall & Sterling, Inc. For more information, contact Scott at (845) 454-0800, Ext. 2247, or ssweeney@marshallsterling.com.

summer 2018

National Pawnbrokers Association

multi-store owner profile

Bill Dawson, LDPM, Inc, Morrisville, NC

Carolina In My Mind B Over half of all NPA

pawnbroker members

are part of a multi-store

operation. To get a closer look into 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.

ill Dawson wasn’t planning a career in the pawn business. In fact, he already had a job as operations manager for EF Hutton. He was recruited by a friend to help out in a pawn store on the weekends which led to filling in over the holidays which led to learning the business and growing the company. Eventually, he became partners with his friend, Scott, and Scott’s sister, Cathy, to form LDPM, the parent company of Picasso Pawn.

National Pawnbrokers Association

summer 2018

Together, Bill, Scott, and Cathy operate 10 stores in Raleigh, Durham, and Wilmington, NC, with the help of 70 employees. Jewelry, electronics, firearms, tools, and musical instruments are the top five items pawned at their locations. Bill is the CEO/President of LDPM and his leadership has helped shape the infrastructure of the company. He’s been in the pawn industry for over 25 years, and in that time, he’s watched the industry undergo

tremendous change. “Pawn stores should be beacons in their respective communities, giving people greater access to immediate cash,” he says. He’s worked tirelessly to legitimize the industry and to remove the negative stereotype. One of the questions many pawnbrokers ask is how to know when and where to open a new store. While he doesn’t have a formula for when, he does have an opinion on where. According to Bill, it’s that age-old adage: location, location, location. “You must have high traffic, high visibility, and close proximity to customers that fit your demographic. To make expansion less of a challenge, prepare your team by involving them in the process well in advance so they can be prepared for their part.” A graduate of East Carolina University, Bill has a degree in marketing and he’s used that in a variety of ways to promote the business. LDPM’s promotional avenues include television, print media, radio, and sports venue promotions. He is currently focusing on social media, specifically Facebook, Instagram, and Twitter. He says the biggest bang for the buck is “location and branding. By that, I mean we make great effort to keep our store fronts, signage, and image inviting. We ask new customers how they found us and, by far, the biggest response is they saw us when driving by.” One of the biggest obstacles in owning a multi-store operation is keeping up with staffing. “The optimal candidate can be successful by learning the techniques through our training.” Bill shares. “We are always looking for better ways

Picasso Pawn, Durham, NC

to attract good employees and encourage our managers to actively seek out potential candidates wherever they go. It seems better to go out and find them rather than waiting for them to come to us.” The company also gives incentives to current employees when they recommend candidates. Bill’s best advice for someone thinking about expanding: Make sure you have reserves. “When I say reserves, I mean two things: money and resources. If you think it’s going to cost $xx, plan on it costing more.” As for resources, plan extra time, attention, personnel, and merchandise. The long-term goal for LDPM is to maximize the stakeholder’s value, including both owners and employees. With Bill’s leadership, we anticipate he’ll be doing just that.

“You must have high traffic, high visibility, and close proximity to customers that fit your demographic. To make expansion less of a challenge, prepare your team by involving them in the process well in advance so they can be prepared for their part. ” - Bill Dawson

Bill Dawson is a member of NPA’s Board of Directors. For more information on operating a multi-store business, contact him at Bill@LDPM.com.

summer 2018

National Pawnbrokers Association

Pawn in Your Palm Customer Initiated Loans

888-407-6287 44

National Pawnbrokers Association

summer 2018

Roger Hunnicutt

YOU’VE GOT THE KNOWLEDGE, EDUCATION, AND SKILLS. NOW PROVE IT. Get your Certified Pawn Professional designation: • Validate your experience • Show your commitment to the industry • Stand out from the competition Courses include:

• Store Operations • Federal Regulations • Security, Risk, & Crisis Management • Marketing, Advertising, & Public Relations • Human Resources • Product Knowledge • All CPP courses will be offered July 9

MEMBER RATE $199/cou rse NON-MEM BER RATE $499/cou rse

in conjunction with Pawn Expo 2018.

NationalPawnbrokers.org, click on the CPP tab

• (817) 337-8830

“What a fun, educational ride. I have come away feeling energized, motivated, and better equipped for the pawn industry.” – Roger Hunnicutt, Tiger Pawn Shop, Pendleton, SC

Full-Service Printing & Promotional Warehousing & Distribution Multi-Store eCommerce Sites Visit: store.apperson.com or call: 1.800.473.6761

Apperson is a member of the National Pawnbrokers Association

Apperson.com

summer 2018

National Pawnbrokers Association

Pawn Expo presenter

National Pawnbrokers Association

summer 2018

Two Sides to the Coin, Cash and Data in America M Nikolas Badminton

By Nikolas Badminton, Futurist

oney makes the world go ‘round, or so they say. Yet we find that there are many rhythms to how we interact with money and how it plays into our lives. Today, technology companies create a world where cash transactions don’t really factor into daily life. It causes friction and gets in the way of online business. They focus on collecting money for subscription services via credit cards, direct debits, and sometimes cryptocurrencies (although this is a fast-abandoned practiced due to the volatility of the trading and value). No-one transacts with cash in that world. Ever. Regardless of, and likely because of that, the Big 5 – Facebook, Amazon, Google, Microsoft, and Apple – are now the most valuable companies and are trying to change the financial transaction landscape. In 2017, they added $800 billion in value to their combined market caps and are all now vying to be the first company to hit a $1 trillion valuation. They did this through the collection and exploitation of data. It’s their lifeblood, and there will be an unlimited supply forever. In fact, by 2025, we will generate 163 zettabytes of data, up from 4.4 zettabytes today. And, that will be mined for the value contained within – human behavior and improved relationships.

We subscribe, like, share, and consume digital services. They collect, analyze, correlate, and apply learnings from data in the development of new services and products. They provide (some) services for free and use the data for profiling and sell it to data brokers for advertising purposes. We have become the product. However, in America, there is a rebellion against tech dominance. The greenback never went away, and cash is still used widely for personal and business use. According to a new study by the Federal Deposit Insurance Corporation (FDIC), there were still seven percent of Americans without access to banking services in 2015, and 19.9 percent of American households are “underbanked”. That means they may have a bank account, but still elect to use services like check cashing, money transfers, payday loans, and pawn shops. It’s likely happening through a need for anonymity, an underlying lack of trust in banks and online companies, and their own ability to manage money in a credit-heavy economy. So, when we look at the pawnbroking business, we still see a need to support cash and an opportunity for us to grow enabled by technology. That opportunity is having closer relationships with customers. We can step up to capture, analyze,

summer 2018

National Pawnbrokers Association

Pawn Expo presenter

“To give real service, you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” - Douglas Adams, British author

and use data to engage and bring in more millennials to your business – those Americans ages 22 to 37 years old. There are now over 73 million in the United States, overtaking boomers as the largest generation (Pew Research). Millennials are not looking for ownership, and value freedom and saving for experiences and adventures over financial security. Surprisingly, 80 percent of them use cash, with 64 percent carrying cash most of the time. And, four times more millennials use cash than top mobile payment platforms, like Venmo and PayPal (Accel + Qualtrics Millennial Study 2017). The NPA Trend Survey from 2016 showed that for the majority of pawnbrokers surveyed, consumers ages 27 to 35, now make up over 40 percent of the average customer base for pawn stores, with the second largest age group consisting of customers ages 33 to 40. It’s likely that the 40 percent number will rise with new ways of engagement across three areas that allow for data collection, improved outreach, and a more subscription-like relationship with the pawnbroker business. Be masters of storytelling

Every object in the world tells a story. It has a history. They are imbued with feelings and a sense of nostalgia. So, we need to do more to connect with them and tell their stories. If we can create a bond between the object and people wanting to buy it (and buy it back), then business will grow. 48

When initially transacting, ask for the background information and any context that makes it worth talking about - the story. Then photograph it and share it through your website (via blogs), and then through social media - Instagram, Facebook, Twitter, and Snapchat. Also, and most importantly, interact with those asking questions online and provide more context. Make it feel alive. One example of doing this well can be seen in Lauren Kaminsky’s venture, ByGold Girl, through her website, Facebook, and Instagram accounts where she has thousands of followers. To give it an extra boost, reach out to online influencers – bloggers and Youtubers – to tell your story and the stories of the things you have. These people are tuned in and hungry for new content. This is the new reality TV, and we should embrace this to elevate the brand of pawnbroking as a whole. Create convenience beyond cash

Cash is still a primary method of transacting, but creating convenience for those millennials who are more progressive is important to grow your business. Integrating with platforms they use will likely be key in growing engagement with this demographic. It’s been found that millennials are six times more likely than boomers or GenX to use the digital wallet Venmo that allows people to make and share payments with friends (Accel + Qualtrics Millennial Study 2017). They also trust platforms like PayPal more than banks and

National Pawnbrokers Association

summer 2018

consider that to be the equivalent of cash transactions. Evolve your service

The underpinning of any changes in the way that you work will need to be around providing a great service. That extends into your online channels, as well as in-store. Go one step further. You might say you have a great level of service today, but ask younger customers what more they want from you. An ‘always on’ learning culture is important and remember to implement small changes to make a big difference. The British author Douglas Adams said, “To give real service, you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” The reality of the situation is that both sincerity and integrity is measured by actions and in real-time by millennials and galvanizes the experience. Acting on these three pieces of advice will help you usher in an evolution of the business of pawnbroking. There is no magic formula, and it’s about experimentation and finding out what works for you and them. When you’ve found your flow, then it will help inform and grow your business and help it remain relevant in the future for all generations. Nikolas Badminton is a world-respected futurist speaker, author, and researcher. He wows audiences with keynote speeches on the impact of exponential technologies. Nikolas regularly appears on the BBC, CBC, CTV, Global News, Fast Company, VICE, The Atlantic, and writes for the Techcrunch, Huffington Post, Forbes, Venturebeat, and other media.

Clean and Sell From steam cleaners to ultrasonics to cleaning solutions and supplies, find everything you need to clean anything.

Go to Stuller.com/Cleaning to learn more. Stuller.com

800 877 7777

business solutions

Pa r t 1

Merchandising: The 8 P’s to Profitability By Lois Haycock, M&M Merchandisers

ccording to the American Marketing Association, merchandising encompasses “planning involved in marketing the right merchandise or service at the right place, at the right time, in the right quantities, and at the right price.” Merchandising, while it encompasses the best placement for your product in order to garner the most sales, goes way beyond just this and begins long before you ever put the product on a shelf. The quote above begins with the words “planning involved in marketing the right merchandise” and we are going to dive deep into all areas that play a role in merchandising. 50

National Pawnbrokers Association

summer 2018

In today’s ever-evolving world of commerce, we have to look at each area within our business to improve profitability. To get the most from our efforts and optimize our profitability, let’s look at following eight steps believed to be crucial to this process. The 8 P’s to Profitability nP eople

nP romotion

nP roduct

nP resentation

nP lacement

nP assion

nP rice

nP ride

People

Everything any business does revolves around people. In the context of merchandising, hiring the right staff to represent our brand is crucial. Employees are the face of our business and can make or break us. The hire slow, fire fast method is optimal. Take your time to find the right person and remember, if you hire for a cultural fit, you can always train for skillset. That isn’t true the other way around. Additionally, if you hire someone and realize they are not a fit, you must let them go quickly so as not to disrupt the culture you have already built or strive to achieve. Once hired, training and engaging with the new hire is imperative. Giving an employee clarity on what is expected of them, and training them accordingly, will give them the confidence they need to properly engage with your customers. You’ve heard the saying: happy employees make for happy customers. Staffing correctly will also increase your profitability. Utilizing daily/weekly sales flow to determine peak times will allow you to schedule staff accordingly. Product

Right product…there is so much that goes into these two little words when it comes to merchandising. Let’s start with buying. Most business owners believe that profits are made during the sale of an item. While it’s true, this is when revenue is actually generated. Profit can begin with the purchase of an item. Buying items correctly and at the lowest possible price is imperative to a business’s profitability. Don’t disregard payment terms either as they will also yield higher margins overall. Whether a business focuses on

a particular niche or is more of a general store, knowing the customers’ needs will drive the assortment. Looking at this will drive both the macro and micro of a product mix. For example, let’s say your niche product is bicycles – you have hundreds in stock all properly displayed. This would be the macro of your business. However, you can supplement your assortment by stocking items, such as clip-on water bottles, replacement tubes and patch kits, pumps and tools, as well as many other add-on items. To capitalize on micro seasons, one might also look to carry seasonal items, such as cooling bandanas, in the summer. You could even carry them in a flag pattern to capture the Memorial Day/Flag Day/ Independence Day seasons. The point being, there are many ways to improve sales and margin by following what big box stores do around seasonality, aka micro seasons. All of this will lead to a bigger ‘basket’. The fight for share of wallet spend is real, and by supplementing your assortment with seasonal items such as these, it will improve your chance of gaining more dollars during the sale as well as placing you higher in the mind of the customer as the place to fulfill their needs. Placement

Now we’re getting to what you normally think of when we say merchandising. In the previous section we covered right product and somewhat, right time. Now let’s get to the right place. Product placement is crucial in increasing profitability. When designing the product placement within a store, one should summer 2018

think about how to create a customer journey. In today’s world of interruption marketing and the low attention span of consumers, the front of the store or window space needs to grab the consumers’ attention; scratch their record, if you will. Remember back in the days of vinyl records when there would be a scratch on the record and the turntable’s needle would hit it? That sound of a record skipping would have us up and moving towards the turntable as quickly as possible to fix it. It would jolt us into action. This is what the entrance to a storefront should do to a passing consumer. Grab their attention and move them to action. Let’s look at the key placement areas within a store: n Storefront or window display area n Shelving within the aisles n Flex areas n Endcaps n Clearance The front of the store should have items that a customer desires or wants, but may not need. Items they need will be placed at the rear of the store, causing them to walk all the way through gazing at items they long to obtain. Think of a grocery store: milk and eggs are always in the rear of the store, but you have to walk through the mouthwatering sections of freshly-baked bread and rotisserie chicken to get to what you actually came in for. This is how you want to position items within your store. Emotional, high ticket luxury items up front, essentials in the rear. Positioning items in this way will increase sales significantly. Humans buy on emotion and then justify with facts, (Continued on Page 53)

National Pawnbrokers Association

THE TRENDZ

WE BUY

TURN YOUR DIAMONDS INTO CASH

MELEES LARGE STONES BROKEN, CHIPPED, EVEN BURNT DIAMONDS as well as UNWANTED JEWELRY

National Pawnbrokers Association

summer 2018

member benefits

National Pawnbrokers Association New Members February 1, 2018 – April 30, 2018 Pawnbrokers Alaska Hawk Shop • Fairbanks Alabama Jeweler’s Cut Pawn • Cullman Arkansas Caddo Pawn & Jewelry • Murfreesboro Hog Pawn Inc • Mena Arizona Windy City Pawn • Phoenix Pawn 1st • Tucson (4 stores) Colorado Fort Collins Daily Pawn • Fort Collins Florida Alamo Pawn Shop • Panama City Georgia Railroad Gun & Pawn • Millen Iowa Premier Jewelry & Loan • Muscatine Illinois Windy City Jewelry & Loan of Elgin • Elgin Windy City Jewelry & Loan • Evanston Amigo Loan Company • Chicago Kansas Jack & Dick’s Pawnshop • Junction City North Carolina Alvarado Jewelry • Winston-Salem New Hampshire The Pawn Shop of Keene Inc • Keene New Mexico Land of Entrapment Pawn • Albuquerque Pennsylvania Jewelers Row Money Loan • Philadelphia Virginia Bedford Pawn Shop • Bedford Wisconsin Shawano Gun & Loan • Shawano Wyoming Depend A Pawn • Casper

International Carderock Pawn Shop • Candaba, Pampanga Philippines

Industry Partners Bay Area Metals • South San Francisco, CA Electronic Transfer, Inc • Spokane, WA Jewelry Tag Solutions • Melville, NY Noble Metal Inc. • Indianapolis, IN Prepaid Ventures • New Hyde Park, NY

(From Page 64)

Merchandising: The 8 P’s to Profitability

so having emotional purchases up front will have the consumer loading their basket from the start. For main aisle/shelving, merchandising like items together is the standard. Also consider placing your best sellers within that section at eye level – fringe items should be placed lower or higher on the self. This methodology was perfected by Sam Walton and I think it’s safe to say that it has been successful. Flex areas can be utilized for seasonal items or special/bulk buys that you may have purchased. This section could include stack outs. “Stack ‘em high and let ‘em fly” is a term commonly used in retail. There is something that triggers in our brain when we see a huge stack of items with a greatly perceived value. This can also be achieved using dump bins full of smaller items, priced the same or at least similarly. The key to a dump bin is to not let it get below half-full as it will lose its effectiveness. If the bin gets below half full and you have no additional items to fill it with, move the items to the clearance section of the store. End cap utilization is crucial. This is typically the most profitable place in the store and should be utilized for high margin, high volume items. Do not waste this space on slow moving items. Instead, clearance areas should be utilized to showcase slow moving, lower margin items. These areas are usually found off of the beaten path, such as a corner of the store that is not in the main foot traffic areas. Proper signage to help the frugal shopper find this area is key and will be discussed in a later section. This covers the first three P’s to profitability and proper merchandising. In the next issue, we’ll cover the remaining P’s. As you begin to implement all eight of the P’s to profitability, you will see your overall sales as well as profits increase. Lois Haycock is the Senior VP Digital Transformation for M&M Merchandisers. She is a 20+ year retail and ecommerce veteran specializing in project management and business analysis of customer facing systems and software. She operates several ecommerce stores as well as a personal time management consulting business. Lois can be reached at lois. haycock@mmwholesale.com.

summer 2018

National Pawnbrokers Association

business solutions

Lab-grown diamonds explained

Lab grown diamonds are man-made in a laboratory. They have the same

optical, chemical, and physical properties as earth-mined diamonds, and were Seed diamond

produced using the same ‘recipe’ that created earth-mined stones. Natural diamonds are composed of a single element—carbon. Subjected to intense heat some 100 miles below the surface of the earth under conditions of extreme pressure and over time—like a few billion years—the diamond is born. A lab can mirror the entire scenario utilizing a seed diamond to start the process. But in a lab, stones develop over a matter of weeks, not millions of years. The resulting stone handles light the same way as a natural diamond—and can be difficult to separate from its earth-mined counterpart. Smaller stones tucked away in large melee parcels proved a challenge with their detection some time ago. But scientists found unique spectroscopic signatures on the crystals that aid in making a separation. Photoluminescence and UV fluorescent responses observed in specialized instruments are also widely relied upon in labs now.

The seed diamonds are placed in a vacuum chamber filled with a carbon-containing gas.

What synthetics are more likely found in melee? HPHT (high pressure high temperature) diamonds have been successfully synthesized since the mid-20th century. These are the most often found synthetics mixed in melee. They are available in colorless and a wide range of colors – yellow, pinks and reds, and blue. CVD or chemical vapor deposition, grows diamonds in a vacuum chamber filled with a carbon-containing gas. Over a period of several weeks, a number of crystals develop at the same time. Since they often have a brown color, additional procedures may be warranted to remove the

Stones develop over a matter of weeks.

tint. CVD diamonds are not usually found in melee but instead find their way as larger-carat solitaire stones. Created stones may cost 25 to 30% less than natural diamonds, but that is not always the main motivator for some consumers who see them as ethical alternatives to earth-mined stones. Many consumers and jewelers, however, claim that synthetic diamonds lack the romantic symbolism of natural diamonds –and pose no real threat to the natural diamond trade.

(From Page 28)

Parceled Mix-Ups

there have been some deliberate attempts to cast a negative shadow on lab-grown diamonds,” he believes. “I think consumer awareness is paramount here to keep the market alive and kicking,” finds Scarani. He observes an ensemble effort of all parties in the industry to support proper disclosure. “So, it’s a matter 54

of putting the industry at work involving all the parties to ensure there will be no grey areas where an apple can be sold disguised as an orange,” he points out. Chatham views the topic in context to his lab-created stones. “There is a great deal of fear out there and I think it is unfounded. We didn’t kill the natural emerald or ruby business, and we won’t kill the natural diamond business either.” Scarani continues, “Synthetic

National Pawnbrokers Association

summer 2018

diamond is a product with its own right to remain on the market when there will be no doubt as to its distinction from a natural diamond.” Multi-award-winning gemologistjournalist Diana Jarrett has been creating incisive and valuable content for the jewelry trade, plus numerous consumer publications, for over 15 years. She provides her diamond clients with branding, especially when launching new products onto the market. Visit dianajarrett.com to learn more.

Boost Your Professional Credibility Learn About Gems and Jewelry Through GIA® Distance Education Our online eLearning courses provide you with the industry knowledge you need and the flexibility of studying at your convenience.

Take a test drive at GIA.edu/tryelearning

The World’s Foremost Authority in Gemology

™

NPA member? Save 10% on tuition! GIA® is a registered trademark of Gemological Institute of America, Inc.

ADT180029_NPA_PawnAd_v3.indd 1

3/27/18 1:08 PM

summer 2018

National Pawnbrokers Association

WE BUY

Gold Melee Diamonds Precious Stones

Watches Fine Jewelry Designer Pieces And More….

We Understand The Needs Of Pawnbrokers- We’ve Owned A Pawnshop For 15 Years!

Call Us: 774-203-6796 Industry References Available

Email: Eric@FCPDiamonds.com We pay 95% of plumb, which typically beats refiners 99% after assay. Advances - Same Day Settlement via Check or Wire - Free Overnight Shipping on Buys Over $5,000

GIVE US A SHOT TODAY!

National Pawnbrokers Association

summer 2018

product knowledge

The Pawnshop Guitar By Edwin Pierce

f you work in a pawn store and are not a musician, you might dread the guy coming in with a guitar and an amp. Music gear does not sell like it did back in the glory days, so you’re hoping for a quick loan or buy. Do it cheap, because what’s coming through the door is often a saturated market of cheap guitars and amps. However, if you are a musician, this is your chance to talk music with the customer for a while. Then there will be the day the best guitar ever walks in the door. Let’s get you ready for that day. Reverb and eBay can help with the basics. Search for the images online and look for the key things about the guitar. Is the neck straight, the binding intact, does it have the original tuning pegs, were the pickups replaced? This takes some knowledge, so look at the images very carefully. Customization and aftermarket parts can severely affect the resale value. Most pawnbrokers are comfortable with the Fender Squire Strat Black tuxedo. There are enough knockoffs of this style guitar to put one in every middle school music class in the country. Caution: buy these cheap, sell these cheap. What about a Gibson? They are in the summer 2018

National Pawnbrokers Association

An American Wedding Deserves An American Made Band TM

www.hooverandstrong.com 800-759-9997

product knowledge middle of a possible bankruptcy and are currently focusing on music gear with their Epiphone and Kramer line. These are affordable guitars that are well made and stay in tune. They are the guitars that the local musicians take to a bar, play the show, and spill beer on. Most shops should be able to buy this line and make a profit without having to sell it on eBay. The Gibson Les Paul and Fender Telecaster are top of the line and are the guitars everyone is looking for. Nigel Tufnel of Spinal Tap said it best about the 1959 Gibson Les Paul Standard: “This is the top of the heap right here, there’s no question about it.” He points to the body of the guitar. “Look at the flame on that one. It’s quite unbelievable. This one is just” — he shakes his head — “it’s perfect. Nineteen fifty-nine.” If you get the opportunity to buy or pawn a Vintage Gibson Les Paul or Fender Telecaster or Stratocaster USA, check it over. Take your time and research to the best of your ability. Of course, paperwork from the original purchase, string tags, and the original case all add to the value of the guitar. Consider these guitars as investments. The market is slowly coming back and they are going up in value again. Put it on Reverb and let the strong collectors buy your gear. If you are shipping guitars, don’t forget to release the tension from the strings on the neck. The air pressure and the transportation will put too much strain on the neck and it could cause problems. Make sure to wrap up Allen wrenches, screwdrivers, and whammy bars, so they don’t float around and scratch the finish. It’s the easiest thing to do, but it will cause the most damage if not done. Have fun and don’t take it too seriously. If you don’t know how to play, get the customer to play for you. If it’s made in Indonesia, don’t pay much. If it’s made in the USA, you have a guitar worth buying. Edwin Pierce is the owner of Monster Pawn in Bloomington, Normal, Peoria, and Springfield, IL.

summer 2018

National Pawnbrokers Association

Your Pawnshop App Money in your drawer before your doors open

Visit us at Booth #311 during Pawn Expo 2018 ( mention this ad for FREE mobile for 90 days)

888-407-6287

membership

Notice of NPA Annual Membership Meeting July 10, 2018

by Kerry Rainey, Secretary National Pawnbrokers Association

Notice is hereby given that the annual Membership Meeting of the National Pawnbrokers Association will be held at The Mirage in Las Vegas, NV, on Tuesday, July 10, 2018, from 8:00-9:00 a.m. At the meeting, the membership will ratify the slate of candidates provided by the Board of Directors for the election of Directors and receive reports from the Officers and the annual report. In addition, the membership will transact any other business that is brought before it in accordance with the bylaws of the association. The individual listed as the representative of the Pawnbroker Member with the Association shall be

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

Buying diamonds or fine jewelry from your customer?

Sell to Simplex Our highest price, quickly, no games, no stress. Jitesh (212) 883-0888 ext. 1007 diainfo@simplexdiam.com

Diam INC.

Simplex

Stephen Foster President Fresno Coin Gallery California Pawnbrokers Association Board of Directors

â&#x20AC;&#x153;We have had great experience selling our diamonds to Simplex Diam. They consistently offer fair prices and buy most of our goods. We find them easy and enjoyable to deal with no matter what the market condition.â&#x20AC;?

summer 2018

National Pawnbrokers Association

state news

State Association Updates

ARKANSAS

Tim Collier, President Arkansas Pawnbrokers Association tim@pacerltd.com

The Arkansas Pawnbrokers Association hosted the Dixie Pawnbrokers Educational Conference & Trade Show April 13-15 in Little Rock. Over 180 pawnbrokers from 10 states attended the show and came away with a new appreciation for southern hospitality. A tour of four pawn stores was followed by a trip to the Oaklawn Thoroughbred horse track. Later, Governor Asa Hutchinson welcomed the attendees to the convention and trade show. He shared that his namesake, Uncle Asa, was a pawnbroker in Oklahoma before transitioning into the jewelry business. During the education seminars, pawnbrokers learned about lab-grown diamonds and anti-money laundering, and also received an update by Team GRC. The highlight of the show (no disrespect, Governor) was the motivational address given by Yigal Adato. We are headed back to the coast and Orange Beach for the next three years. The 2019 Dixie Educational Conference will be at Perdido Resort March 22-24. Save the date; we’ll see you on the beach!

INDIANA

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

The Midwest Pawn Convention, hosted by the Indiana Pawnbrokers Association, was a great success and will be 62

National Pawnbrokers Association

summer 2018

held again next May in Louisville, KY. The legislative session ended with no material changes for the pawnbrokers of Indiana. However, there are rumblings of a statewide database for scrap yards that would be run by the state rather than a private system, like LeadsOnline. This could affect pawnbrokers in the next session or two. We are seeing a trend of pawnshops closing since the business is less needed during up cycles in the economy. There will always be a need and being a real pawnbroker takes some grit, especially since our business seems to go against the mood of the masses. Stay diligent, do what is right, and you will always prosper.

MISSOURI

Rob Lauer, President Missouri Pawnbrokers Association (MPBA) Rob@pawncenter.com

Missouri had a very unusual legislative session. While most of the news from the Capital has concerned Governor Greitens, Right-to-Work, and taxes, a bill was directed at pawnbrokers. A senator’s house in Jefferson County was broken into and the stolen jewelry was sold to a “corner” gold buyer in St. Louis. The senator then introduced SB 1028 directly affecting any business buying precious metals, including pawnbrokers. (We are currently exempt from the law dealing with gold buyers.) This bill would require fingerprinting customers, holding precious metal for 120 working days, and the transmission of customer information directly to the Missouri State Highway Patrol, the county where the store is located, and all municipalities within that county. It would also forbid the purchase from a felon and anybody previously selling precious metals within a 120-day period. Chris Liese, our primary lobbyist, and I met with the senator to explain we had been exempted from the current law due to the confusion that would be created by pawnbrokers trying to follow multiple laws in direct conflict with each other. We also explained his jewelry

was not purchased by a pawnbroker, but he did not want With the start of Spring 2018, New York pawnbrokers to hear anything we said and vowed to pass the bill. We received exciting news that GEM’s lawsuit against the enlisted pawnbrokers throughout the state to write letters city had received a favorable decision. In the lengthy to members of the committee selected to hear the bill. memorandum and order, the Court ruled that NYC As I write this, the bill is not scheduled for a hearing Charter Section 436 was unconstitutional. This section Easy Business...Ea and the senator has not formally requested a hearing, has been the vehicle thatName...Easy the police have abused $95 - $130 for .09 and below mix melee • $ which is required for a bill to move forward. Missouri’s for years to enter pawnshops to conduct warrantless Easy Name...Easy Business...Ea legislative session ends May 18, so even if the bill is searches and to demand that operators issue “police $95 - $130 for .09 and below mix melee • $ heard, chance of passage is slim. My concern is that the holds” which theEasy court likened to “seizures.” There Name...Easy Business...Ea senator will introduce another bill next session that will are additional issues that are still in this casemix melee • $ $95 - $130 for open .09 and below probably be more sensible. If that happens, we will again and the decisionEasy suggestsName...Easy that the court mightBusiness...Ea further $95 $130 for .09 of and belowor mix melee • $ try for an exemption for pawnbrokers. find against the city and the question whether Easy Name...Easy Business...Easy Name...Easy Busine Easy Name...Easy Business...Ea We have been successful in preventing any change in our not “administrative inspections” conducted by law Easy Name...Easy Business...Easy Name...Easy Business... $95 - $130 for .09 and below mix $95 melee • $95 - $130 for .09 and below mix m - $130 for .09 and below mix melee •$ $95 - $130 for .09 belowpurposes, mix melee • $95 - $130 for .09mining, and below mix melee statutes since 2002. This is due to the greatEasy team ofName...Easy lobbyists enforcement are forand other such as data Business...Easy Name...Easy Busine Easy Name...Easy Business...Ea Easy Name...Easy Business...Easy Name...Easy Business... $95of - $130 for .09 and below mix melee • $95 - $130 for .09 and below mix melee employed by the MPBA. If you are a Missouri pawn customers, and forbelow potential $95pawnbroker, - $130 for .09 tracking and below mix melee • $95 -searches $130 for .09 and below mix m $95 - $130 for .09 and mix melee •$ Easy Name...Easy Business...Easy Name...Easy Business... and not a member of the state association, Easy please goName...Easy to criminals criminal activity, asmelee is Name...Easy argued by GEM $95 -or $130 forEasy .09 and below mix • $95 - $130 for .09 and below mix melee Business...Easy Busine Name...Easy Business...Ea Easy Name...Easy Business...Easy Name...Easy Business... $95 - $130 for .09 through and below mix .09 melee • will $95 - $130 for below .09 and below mix m missouripawnbrokers.com and join the association. The case now proceed tofora.09 jury trial. - below $130 .09 and mix melee •$ $95counsel. - $130 for $95 and mix for melee • $95 - $130 and below mix melee Easy Name...Easy Business...Easy Name...Easy Business... Easy Name...Easy Business...Easy Name...Easy Busine Easy Name...Easy Business...Ea Paul Solda, counsel for GEM, has done a wonderful job $95 - $130 for .09 and below mix melee • $95 - $130 for .09 and below mix melee $95 - $130 for .09 and below mix $95 melee • $95 - $130 for .09 and below mix m -the $130 for and below mix melee •$ Easy Name...Easy Business...Easy Name...Easy Business... to this point; however, battle is.09 not over yet. Easy Name...EasyEasy Business...Easy Name...Easy $95 - $130 for .09 and belowBusiness... mix melee • $95 - $130 for .09 and below mix melee Name...Easy Business...Easy Name...Easy Busine Easy Name...Easy Business...Ea Easy Name...Easy Name...Easy Business... It is$130 the opinion ofand the•Business...Easy Collateral Loanbrokers YORK $95 - $130 for NEW .09 and below melee • $95 for .09 below melee $95 -mix $130 for .09 and- below mix melee $95 -mix $130 .09 and below m $95 - $130 for $95 .09 and- below mix for melee • $95 -for $130 for .09 and below mix mix melee $130 .09 and below mix melee •$ Association of New York, that this decision willBusiness...Ea supportBusiness... Eric Modell Easy Name...Easy Business...Easy Name...Easy Easy Name...Easy Business...Easy Name...Easy Business... Easy Name...Easy$95Business...Easy Name...Easy Busine Easy Name...Easy - $130 for .09 and below mix melee • $95 - $130 for .09 and below mix melee $95 - $130 for Collateral .09 and below melee • $95 $130 for .09 and below the of the presiding judge in melee the matter of mixbelow Loanbrokers AsEasy Name...Easy Business...Easy Name...Easy Business... $95 -mix $130 for .09 and-opinion below mix melee • $95 -mix $130 for .09 and mix m $95 - $130 for .09 and below melee •$ Easy Name...Easy Business...Easy Name...Easy Business... $95 - $130 for .09 and belowBusiness... mix melee • $95 - $130 for .09 and below mix melee Easy Name...Easy Business...Easy Name...Easy Easy Name...Easy Business...Easy Name...Easy Busine CLANY vs The City of New York, and we hope and sociation of New York Easy Name...Easy Business...Ea Easy Name...Easy Business...Easy Name...Easy Business... $95 - $130 for .09 and below mix melee • $95 - $130 for .09 and below mix melee $95 - $130 for .09 and below melee • Business... $95 $130 for .09 and below mix melee $95 - $130 for .09 and mix for melee • $95 -for $130 for .09 and below mix mix melee $95 -mix $130 for .09 and- below mix melee • $95 -in $130 .09 below m $95 - below $130 .09 and below mix melee •$ Easy Name...Easy Business...Easy Name...Easy expect that both cases will find favor of pawnbrokers. eric@modellfinancial.com We pay $95 - and $130 for .09 Easy Name...Easy Business...Easy Name...Easy Business... Name...Easy Business...Easy Business... $95 - $130Easy for .09 and below mix melee • $95 - $130 Name...Easy for .09 and below mixName...Easy melee Easy Business...Easy Name...Easy Busine Easy Name...Easy Business...Ea $95 - $130We for .09 below mix melee • $95 - $130 for .09 and below mixplate melee payand $95 - $130 for .09 and below mix melee* (sieves 11

Easy Nam Easy Bu Easy Name... Easy Name... Easy Business... Easy Business... Easy Name... Easy Name... Business... EasyEasy Business...

Easy Name...Easy Name...Easy $95 - $130Business...Easy for .09 and below melee • Business... $95 $130 for and below Easy Name...Easy Business...Easy Name...Easy Business... (sieves 11 plate and below) $95 -mix $130 for .09 and- below mix.09 melee • $95 -mix $130 for .09 and below mix m $95 - $130 for .09melee and below mix melee •$ $95 - $130 for .09 and below mix melee • $95 - $130 for .09 and below mix melee

We $150 - $500 for We pay $150 - $500Name...Easy for .09pay -Name...Easy .45 and below* Easy Name...Easy Business...Easy Busine Easy Name...Easy Business...Easy Business... Easy Name...Easy Business...Ea Easy Name...Easy Business...Easy Name...Easy Business... * Prices may vary due to quality. $95 - $130 for and below mixtomelee • $95 - $130 for .09 and below mix melee - and $130 formix .09 and• $95 below mix melee • $95 $130 for .09 and below mix melee *.09 Prices may vary due quality. $95 - $130 $95 for .09 below melee $130 for .09 and below mix melee $95 - $130 for .09 and below mix $95 melee • $95 - $130 for below .09 and below mix m - $130 for .09 and mix melee •$ Easy Name...Easy Business...Easy Name...Easy Business... Easy Name...Easy Business...Easy Name...Easy S P E C I Business... A L I ZName...Easy E I N M E L E E Busine Easy Name...Easy Business...Easy $95 $130 for .09 and below mix melee • $95 $130 for .09 and below mix melee Easy Name...Easy Name...Easy $95 - $130Business...Easy for .09 and below melee • Business... $95 - below $130 for and • below melee $95 -mix $130 for .09 and mix.09 melee $95 -mix $130 for .09 and below mix m Easy Name...Easy Business...Easy Name...Easy Business... $95 - $130 for .09 and below mix melee • $95 - $130 for .09 and below mix melee Easy Name...Easy Business...Easy Business... $95 - $130 for .09 and below mix melee • $95 - $130 for .09 and below mixName...Easy melee Easy Name...Easy Business...Easy Name...Easy Busine Easy Name...Easy Business...Easy Name...Easy Business... Easy Name...Easy Business...Easy Name...Easy Business... $95 - and $130 formix .09 and• $95 below •below $95 - below $130 and • below melee $95 - $130 for .09 below melee - $130 formelee .09for and.09 mix melee for $95 -mix $130 and mix.09 melee $95 -mix $130 for .09 below mix m We $95 - $130 for .09 and below mixand melee* $95 - $130 for .09 and below mix melee • $95 - $130 for .09 andpay below mix melee Easy Name...Easy Business...Easy Name...Easy Business... Easy Name...Easy Business...Easy Name...Easy Business... Easy Name...Easy Business...Easy Name...Easy Busine Mix Melee Parcel Broken, Chipped or Damaged Brown or Imperfect Baguettes & Single Cut Mix Fancy Easy Name...Easy Business...Easy Name...Easy Business... (sieves 11 plate and below) $95 - $130 for .09 and below mix melee • $95 - $130 for .09 and below mix melee $95 - and $130 formix .09 and• $95 below •below $95 - below $130 and • below melee $95 - $130 for .09 below melee - $130 formelee .09for and.09 mix melee for $95 -mix $130 and mix.09 melee $95 -mix $130 for .09 and below mix m Easy Name...Easy Business...Easy Name...Easy Business... Easy Name...Easy Business...Easy Name...Easy Business... pay $150 - $500 forBusiness... .09 -Name...Easy .45 and below* Busine Easy Name...Easy Business...Easy $95 - $130 for .09 and below mix melee • $95 - $130 for .09 andWe below mixName...Easy melee Easy Name...Easy Business...Easy $95 - $130 for .09 and below melee • $95 - $130 for .09 and below mix melee Easy Name...Easy Name...Easy Business... * Prices may vary melee due to quality. $95 - $130Business...Easy formix .09 and below mix • $95 $130 for .09 and below mix melee $95 - $130 for .09 and below mix melee • $95 - $130 for .09 and below mix m Easy Name...Easy Business...Easy Name...Easy Business... $95 - $130 for .09 and below mix melee • $95 - $130 for .09 and below mix melee Mix Melee Parcel Broken, Chipped or Damaged Brown or Imp Easy Name...Easy Business...Easy Name...Easy Business... $95 - $130 for .09 and below mix melee • $95 - $130 for .09 and below mix melee Easy Name...Easy Business...Easy Name...Easy Business... Easy Name...Easy Business...Easy Name...Easy Business... $95 - and $130 formix .09 and• $95 below mix $95mix - $130 $95 - $130 for .09 below melee - $130 formelee .09 and• below melee for .09 and below mix melee $95 - $130 for .09 below mix melee • $95 - $130 for .09 below mix melee We payand $95 - $130 for .09 and below mixand melee* Easy Name...Easy Business...Easy Name...Easy Business... Easy Name...Easy Business...Easy Name...Easy Business... Easy Name...Easy Business...Easy Name...Easy Business... (sieves 11 plate and-below) $95 - $130 for .09 and below mix melee • $95 $130 for .09 and below mix melee $95 - and $130 formix .09 and below mix melee •below $95 - $130 for .09 below mix melee $95 $130 for .09 below melee • $95 $130 for .09 and mix melee We pay $95 $130 for .09 and below mixand melee* Easy Name...Easy Business...Easy We pay $150 - $500 for .09Business...Easy -Name...Easy .45 and below* Business... Easy Name...Easy Business...Easy Name...Easy Business... Easy Name...Easy Name...Easy Business... $95 $130 for .09 and below mix melee • $95 $130 for .09 and below mix melee (sieves 11 plate and below) * Prices may vary due to quality. $95 - $130 for .09 and below melee • $95 - $130 for .09 and below melee Easy Name...Easy Name...Easy $95 - $130Business...Easy formix .09 and below mix melee • Business... $95mix - $130 for .09 and below mix melee $95 - $130 for .09 and below mix melee • $95 - $130 for .09 and below mix melee Easy Name...Easy Business...Easy Name...Easy Business...

S P E C I A L I Z E

Easy Name... S P E C I A L I Z E Easy Business...

I N

M E L E E

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

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

Easy Name...Easy Name...Easy Business... * Prices may vary dueBusiness...Easy to quality. - and $130 formix .09 and• $95 below mix $95mix - $130 $95 - $130 $95 for .09 below melee - $130 formelee .09 and• below melee for .09 and below mix melee Melee Parcel Broken, Chipped or Damaged Brown or Imperfect Baguettes & Single Cut Easy Name...Easy Business...EasyMix Name...Easy Business...

S P E C I A L I Z E

I N

M E L E E

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

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

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

Mix Melee Parcel

I N

M E L E E

Broken, Chipped or Damaged

Brown or Imperfect

Baguettes & Single Cut

Mix Fancy

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

ABC Diamond ad H.indd 1

Brown or Imperfect

Baguettes & Single Cut

Mix Fancy

summer 2018

4/24/17 2:43| PM National Pawnbrokers Association 63

Mix Fanc

www.suryains.com

National Pawnbrokers Association

summer 2018

state news

SOUTH CAROLINA

Jay Friedman, President South Carolina Pawnbrokers Association bondedloan@gmail.com

The 2018 legislative session has been one that has forced the South Carolina Pawnbrokers Association to take a defensive posture. HB 4270 would have forced pawnbrokers to prorate interest on pawn transactions redeemed before their maturity dates. We were successful in opposing it and halting its progress. Most of the association’s focus has been on SB 810 and its companion bill HB 4534. In its original form, this legislation would have the ability to virtually regulate the pawn industry out of business in South Carolina by: n Allowing counties and municipalities to create ordinances that are more restrictive than state law, n Giving counties and municipalities the ability to enact pawn taxes and fees, n Requiring that pledgers provide a digital thumbprint scan before completing a transaction, n Mandating that pawnbrokers hold an item for twenty-one (21) days without the possibility of early redemption of the pawn ticket, n Removing due process procedures from law enforcements seizure of an item, or items, believed to be misappropriated, and n Creating a subjective standard for pawnbrokers accused of violating the state law’s provisions. After multiple Senate subcommittee hearings and stakeholder meetings, the bill has been significantly amended and is expected to pass with minimal impact to South Carolina’s pawnbrokers.

ACCREDITED BUSINESS

summer 2018

National Pawnbrokers Association

pawnder this

Stuff We’ll Miss by Rudy J. Klancnik

he list of items my kids will never use that were vital parts of my life is as long as a typical major league baseball game. Turntable. Calculator. Pager. Flip phone. Fax machine. Eight-track tape player. A Polaroid. Taxi cab. Television. Movie theater. Cursive writing. Checkbook. Their voice to communicate with friends and family. You get the picture. Before you start thinking this is another column about the good old days when kids earned their way through childhood by washing their clothes on rocks in a creek, it’s not. This is actually quite the opposite of 66

that. This is a column predicting all the stuff I’m going to likely miss – and you are too. We’re going to miss a lot of cool stuff. I guess it’s the trade-off for living in the sweet spot of society. What the heck is the “sweet spot of society?” If you’re between the ages of 45 and 55, you’ve lived smack dab in the best of everything. You’ve grown up with some hardships – turning your own TV channels and shopping at an actual store – and you’ve experienced the miracle of the microchip. You’ve grown up without wearing seatbelts and now we see driverless cars. We

National Pawnbrokers Association

summer 2018

remember three channels and rabbit ears; now there’s Netflix, Alexa, and the iPhone. The good news

As quickly as we seem to be progressing, we’re going to see even more amazing developments. We’re going to live to see consumer space travel. We’re going to live to see a female take the oath of the Presidency. And we’re going to live to see the NFL finally figure out what constitutes a legal catch. Unfortunately, none of us will live to see the cancellation of the Kardashian’s show.

The great news

We won’t live to see artificial intelligence take control of the world and terminate all humans. For anyone who has watched the YouTube video of the robot dogs figuring out on their own how to open a closed door and working together to get out of a room, you understand what I’m talking about here. Am I kidding? Well, I hope so. But the more I read about “AI”, the more I’m trying to convince my kids never to let a robot out of their sight.

wife. Call me paranoid, but I think Facebook is actually listening to my conversations. The other day an ad for LA Dodgers gear popped up when I had never searched for that topic. But I had mentioned to my son that week that I was going to buy a Dodgers cap before we attend a game. What’s up with that? When will kids come with bar codes? I shudder to think about what the future of privacy will hold for my kids. The bad news

The scary news

No, the scary news isn’t that robots are going to end us. The scary news is that the movie Minority Report got so much stuff right that it’s freaking me out. Facebook, Twitter, and LinkedIn know more information about me than my

There’s a pretty long list of cool stuff we’re all going to miss. We’ll miss the manned mission to Mars. We’ll miss the Cowboys winning another Super Bowl. We’ll miss the cures for cancer, diabetes, and the common cold. We’ll miss Barry Bonds finally being inducted into the

Hall of Fame. We’ll miss the end of football. We’ll miss the start of a new sport to take its place. We’ll miss the solution for national health care, social security, and global warming. We’ll also miss the creation of a dominant new energy source not named oil or coal. And we’ll miss making genuine contact with an extra-terrestrial named Pete. Look, we’ve had a great run right through the sweet spot. So, don’t be too disappointed that we might not see some really cool stuff. If my son hurries through high school and college, becomes a world-class scientist, and develops the anti-aging drug I’ve encouraged him to focus on, it could all be good anyway. Rudy J. Klancnik writes for fun, sells stuff for a living, and cheers for any team playing Ohio State or the Yankees.

ATISH DIAMONDS LLC { WE BUY DIAMONDS }

BREAKOUTS • MELEES • BROKEN • ANY SIZE • ANY SHAPE • ANY QUALITY

Please visit us at all the NPA Conventions

Please Contact: Atish Shah

FREE SHIPPING • NEXT DAY PAYMENT NO MINIMUM CARATS REQUIRED

Member with JBT, IDCA, & NPA

580 5th Avenue • Suite #815 B • New York, NY 10036 • P: 212-938-1005 • C: 201-921-3853 • shahatish@aol.com

summer 2018

National Pawnbrokers Association

calendar of events

index of advertisers 3 CLiCk Media 65 (212) 365-0691 3clickmedia.com Aagam Creation and Aria Diamonds 25 (248) 961-0506 (404) 474-1563 ABC Diamond Buyer 63 (586) 354-7274 abcdiamondbuyer.com Apperson 45 (800) 473-6361 apperson.com Atish Diamond 67 (212) 938-1005 Bluestone Trading Company Inc Back Cover (888) 800-BLUE (2583) bluestone-trading.com Bravo Pawn Systems 24, 44, 60 (888) 407-6287 bravopawnsystems.com Certified Pawn Professional (CPP) 45 (817) 337-8830 nationalpawnbrokers.org Di-Moksh Diam, Inc 48 (213) 479-3023 dimokshdiam.com Diamonds and Jewelry Services 7 (973) 303-8389 Electronic Transfer 65 (800) 757-5453 electronictransfer.com

JULY 2018

OCTOBER 2018

Pawn Expo 2018

California Pawnbrokers

July 10-12, 2018

Association Convention

The Mirage Hotel & Casino

October 26-28, 2018

Las Vegas, NV

Omni Rancho Las Palmas Resort and Spa

Contact Helen Moore:

Rancho Mirage, CA

pawnexpo@NationalPawnbrokers.org

Contact Kim Andosca:

PawnExpo.com

KAndosca@amgroup.us

FCP Diamonds 56 (774) 203-6796 fcpdiamonds.com Geib Refining 56 (800) 228-4653 geibrefining.com Gemological Institute of America 64 (800) 421-7250 gia.edu Hoover & Strong 58 (800) 759-9997, ext 164 hooverandstrong.com Initiative Consulting Group 52 (407) 960-4686 icggroup.org International Gemological Institute Inside Front Cover igionline.com Jewelers Mutual 23 (800) 558-6411 jewelersmutual.com Mid-States Recycling & Refining 38 (800) 551-0083 midstatesrecycling.com Padmavati Exports Inc 18 (212) 869-0544 padmavatiexportsinc.com Palak Diam 5 (213) 228-0077 palakdiam.com Pawnbroker Financing 11 (303) 373-1300 pawnbrokerfinancing.com paysouth.com/partners/npa Rapaport Auctions 27 (212) 354-9100 rapaportauctions.com

Saumil Diam 17 (212) 575-3655 saumildiam.com Shri Diamond Inc 55 (212) 840-0650 Simplex Diam Inc 61 (212) 883-0888, ext 1007 simplexdiam.com Sparkle & Dazzle LLC 33 (212) 789-9088 sparklendazzle.com Stallcup Group 12 (817) 479-3880 stallcupgroup.com Star Buyers Inc 39 (201) 720-1000 starbuyersinc.com Stuller, Inc 49 (800) 877-7777 stuller.com Surya Capital LLC 64 (800) 242-7766 diamondmelle.com The Trendz 52 (866) 337-7464 thetrendz.biz United Precious Metal Refining, Inc. 3 (800) 999-FINE (3463) unitedpmr.com Wexler Insurance Agency Inside Back Cover (800) 432-1853 wexlerinsurance.com Worldwide Diamond 9 (213) 622-2191 wwwdiamond.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

summer 2018

WEXLER INSURANCE AGENCY, INC.

INSURING

PAWNBROKERS

SINCE 1968

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

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

v Pawned & Owned Other Stock

v Business Personal Property

v Memo

We pay based on your choice of the following:

v Products Liability for Guns & Ammunition

v Actual cost of the loan plus legally accrued interest

v And many more see back page

v 2 or 3 times pawn value

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

v Replacement Cost

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

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

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

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

Wholesale Diamonds & Jewelry Since 1978

Buy - Sell - Memo

ALWAYS FREE OVERNIGHT SHIPPING

888.800.BLUE (2583) www.Bluestone-Trading.com

Our new free software, Bluestone Buying Power, gives you the ability to buy and proďŹ t from every diamond/piece of jewelry that comes into your store through a FAST and SIMPLE 8-Step Process.