National Pawnbroker Winter 2016 by National Pawnbrokers Association

Official Publication of the National Pawnbrokers Association

How To Handpick Your Best Candidate Google AdWords FAQ Compliance: Are You a Have or a Have Not?

WINTER 2016

message business from the sense president

Ever-Changing Regulatory Climate in the Pawn Industry “I predict future happiness for Americans, if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.” —Thomas Jefferson Larry Nuckols NPA President

For the last several weeks, we have all been dealing with the increased time, effort, and tedium of complying with the new Military Lending Act (MLA) regulation requirements. I want to assure you the NPA has not run out of options in fighting this regulation. We will continue to do everything possible to regain the exemption from the MLA regulation that we have enjoyed since our original success in fighting it back in 2007. We are aware of the problems encountered trying to utilize the Defense Manpower Data Center (DMDC) website to gain the safe harbor protections afforded by the MLA. These problems include inaccuracies, extended waiting times, and down time due to ongoing changes and maintenance to the website. We continue to make the Department of Defense aware of our issues and seek solutions to these problems. Some in Congress will continue to push for further expansion of the 36 percent national interest rate. We are already hearing, “If it is good enough for the military, why should it not also apply to first responders or anyone receiving a government check?” Therefore, we must prepare for a long and continued battle. Every one of our legislators must be educated on the importance of the safety net that non-recourse loans provide to consumers. The upcoming holidays mean that more of them will be back in their home districts. This gives each of us a great opportunity to see them personally, and invite them to tour our pawn stores and learn firsthand what we are all about. It is much easier to convince them that we exist to help those in our communities when they have seen it for themselves. The NPA and its board are committed to protecting the pawn industry. We are seeking every possible avenue we can and greatly appreciate your input and assistance in the challenges we face as pawnbrokers.

WINTER 2016

National Pawnbrokers Association

Table of Contents

Winter 2016

Cover Story

How To Handpick Your Best Candidate Page 43

highlights Google AdWords FAQ

Page 26

Compliance: Are you a Have or a Have Not?

Page 30

Contributors for this issue of National Pawnbroker

Justin Barbee Insta-Cash Pawn

In this Issue

Gina Barkan A Pawn USA

Message from the President 1 Message from the Executive Director 4 Business Solutions Department of Labor Overtime Rule 8 Chip Card Update 18 Promoting Your Business in 140 Characters or Less 22 Rapaport Diamond Insights 36 Be In the Know 40 Product Knowledge: Video Games 50 Community Involvement FBL Scholarship Winner Update 51 Compliance AML Compliance Program 35 Government Relations Don’t Let It Spread 6 Combating Unwanted Legislation – Part 2 24 Member Spotlights Pawnbroker: The Castle Jewelry and Pawn 12 Young Pawnbroker to Watch: Nick Uroda 15

Diane Barrow The Bank Gun & Pawn Fran Bishop Dollar Pawn Ric Blum Ohio Loan Co Jerry Coyne Paysouth Merchant Services Greg Engstrom AmeriPawn Bob Frimet RMF Consulting Group

Industry Partner: United Precious Metal Refining Behind the Scenes with Marliss Allen Member News Triple Treat New NPA Members State Association News Book Corner Pawnder This Calendar of Events Advertiser Index

Cathy Gish Brittex Financial Inc

16 46 34 52 54 20 58 60 60

Jamie Hasty SESCO Management Consultants Rudy Klancnik Avi Krawitz The Rapaport Group Emmett Murphy 3 CLiCk Media, LLC Scott Paulsen Peninsula Pawn Kenja Purkey McDonald Marketing Lou Tansky Uncle Ben’s Pawn Shop

National Pawnbroker is the official publication of the National Pawnbrokers Association (NPA), and is published quarterly. No part of this publication may be reproduced without the written consent of Dana Meinecke, NPA Executive Director. Sale or distribution of any or all of the contents of this magazine is prohibited. All rights reserved. For more information on advertising or to obtain additional copies of National Pawnbroker, call (817) 337-8830, or send an email to Margie@NationalPawnbrokers.org. For membership information, email Helen@NationalPawnbrokers.org. EDITOR’S NOTE: This publication is designed to provide accurate and authoritative information on the subject matter covered. It is provided and disseminated with the understanding that the publisher is not engaged in rendering legal or other professional services. If legal advice is required, the services of a competent professional should be sought. Expressed opinions are those of the author and do not necessarily reflect the views of ownership. © 2007-16 National Pawnbrokers Association: PO Box 508, Keller, TX 76244 • (817) 337-8830 • NationalPawnbrokers.org EDITOR: Margie Swoyer, Director of Communications & Marketing, Margie@NationalPawnbrokers.org DESIGNED BY: SPARK Publications

National Pawnbrokers Association

WINTER 2016

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Get the Best Return on Your Investment The NPA has been serving pawnbrokers around

the country since 1987 and, next year, we will be celebrating 30 years of being YOUR association. Let’s show the industry and our legislators that NPA membership is strong and growing. When your renewal notice arrives in the mail, send it in right away. We want to keep providing you with the information and services you require to be successful, such as the recent MLA alerts, compliance requirements, and notices of con artists targeting Dana Meinecke, stores in the community. When you see a fellow NPA Executive pawnbroker in your city or at your state association Director meeting, ask if they’re an NPA member. If they aren’t, let them know why they should be. Let’s keep those membership numbers going in the right direction. If you haven’t started working on your Certified Pawn Professional (CPP) designation, now is the time. Join over 100 pawnbrokers from around the country who are already working on their certification. Whether you’re an owner, manager, or employee, the CPP designation demonstrates your commitment to the profession and your willingness to invest in your own development. Sign up for any of the six courses now available at various industry events around the country. Visit NationalPawnbrokers.org for more information. Are you taking advantage of all the benefits your NPA membership provides? Remember to: • contact SESCO Management Consultants for your free employee handbook review. Whether you have one employee or 100, all businesses should have this done. • sign up for NPA’s online Anti-Money Laundering Compliance Program. Get a discount on your training. • call Paysouth Merchant Services for an evaluation of your debit and credit card needs; guaranteed lower rates or you get a $250 VISA gift card. • participate in the NPA Member Forum for discussions on hot industry topics, such as staying compliant with MLA requirements, successful marketing and advertising options, or working with Google. • log into the Members Only area of the NPA website for a library of information on all things pawn-related. These benefits, and many more, are listed on the NPA website under Membership/NPA Business Solutions. Make sure you’re getting the full value of your investment. Lastly, the NPA staff is very thankful for the opportunity to have served you in 2016. We wish all of you a wonderful holiday season and a very happy new year!

National Pawnbrokers Association

WINTER 2016

NPA STAFF

Dana Meinecke Executive Director Dana@NationalPawnbrokers.org

Helen Moore Director of Membership Helen@NationalPawnbrokers.org

Lindsay Wilson Director of Meetings and Events Lindsay@NationalPawnbrokers.org

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

Marliss Allen Program Coordinator, Events and Communication Marliss@NationalPawnbrokers.org

Priscilla Fitz Program Coordinator, Executive and Membership Priscilla@NationalPawnbrokers.org

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

Government Relations

Don’t Let It Spread

Fran Bishop, NPA Past President & Government Relations Liaison

It would be quite an understatement to say

it has been an eventful summer for your NPA Government Relations Committee. As we told you after Pawn Expo, the Board of Directors voted to join the NPA as a plaintiff in the lawsuit filed by NPA member, Huntco Pawn Holdings, LLC, on July 22, 2016. This complaint was filed against the Department of Defense (DoD) in the federal district court for the District of Columbia. The challenge of this action was that the DoD did not comply with the requirements of two major federal regulatory statutes: the Regulatory Flexibility Act and the Administrative Procedures Act. In particular, that the DoD did not evaluate the Military Lending Act (MLA) expanded regulation’s effect on small business lenders, namely pawnbrokers. The details were sent to you in late July. We are very appreciative of the NPA members who willingly stepped forward and contributed to the record in this action with their declarations of how difficult and costly compliance with the MLA expanded regulations would be, and how it will affect their businesses, employees, and customers. We cannot begin to adequately express our appreciation to these pawnbrokers for their willingness to stand with the NPA, not to mention the desire and commitment of all who support our military personnel and dependents. Our disappointment was evident when, late on the MLA compliance date of October 3, 2016, we received an order from the United States District Court for the District of Columbia that Plaintiffs’

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“No one can tell your story better than you, and if the pawn industry doesn’t want to see this MLA compliance spread to a national rate of 36 percent in the very near future, then everyone needs to roll up their sleeves and get to work.”

(Huntco Pawn Holdings, LLC and the National Pawnbrokers Association) Motion for Preliminary Injunction was denied. Our previous request of the DoD for a stay of enforcement had also been denied, and therefore, the new MLA rules, with respect to pawnbrokers, went into effect. Meanwhile, you prepared to be MLA compliant by October 3. The time, effort, steps taken, Q&As, and exchanges of ideas, methods, and insight is

Government Relations

evidence of the professional manner in which NPA members operate their pawn businesses. These continuing efforts will hold the pawn industry in good stead going forward as we have no reliable information with respect to the Consumer Financial Protection Bureau’s planned enforcement methods. We strongly feel that traditional, non-recourse pawn transactions should be exempt from the MLA just as it has been for nearly the past 10 years. The NPA Board and Government Relations Committee will meet before the end of the year to discuss next steps and direction. As we all know, it is a presidential election year, as well as for all Members of the House of Representatives and many Senators. There will be a new administration and Members of Congress decided after the November 8 election, and we must all take the initiative to renew old acquaintances with incumbents, and meet those who are newly elected.

Everyone did a great job with this summer’s Rally Congress campaign. Over 20,000 letters were sent to Congress and the White House seeking help for the pawn industry in obtaining relief from the most burdensome aspects of the expanded MLA regulation. Now, we all need to follow this up with the new Congress that will take office in January. Mark your calendars now and plan to attend the annual NPA Legislative Conference in Washington, DC, on April 25-26, 2017. The process of educating your elected officials, whether they are at the local, state, or national level, is never-ending, and it is of the utmost importance. No one can tell your story better than you, and if the pawn industry doesn’t want to see this MLA compliance spread to a national interest rate of 36 percent in the very near future, then everyone needs to roll up their sleeves and get to work. These grassroots contacts from you, the constituent pawnbroker voter, are priceless.

WINTER 2016

National Pawnbrokers Association

BUSINESS SOLUTIONS

Department Of Labor Overtime Rule Final Rule Goes into Effect December 1, 2016 Jamie Hasty, SESCO Management Consultants

Two years ago, President Obama directed the

Secretary of Labor to propose new regulations to the Fair Labor Standards Act (FLSA) to increase the number of workers eligible to earn overtime. In June 2015, the Department of Labor (DOL) did propose an increase to the minimum salary threshold for most White Collar Exemptions. On May 18, 2016, the DOL published its Final Rule. The Final Rule increases the minimum salary

National Pawnbrokers Association

WINTER 2016

threshold for white collar exempt employees from $455 per week ($23,660 per year) to $913 per week ($47,476 per year). The Final Rule also increases the salary threshold for Highly Compensated Employees from $100,000 per year to $134,004 perÂ year. Background

The FLSA provides that certain workers (Continued on page 10)

BUSINESS SOLUTIONS

TIME CLOCK

(From page 8)

Overtime Rule

employed in Executive, Administrative, and Professional positions, as well as Highly Compensated Employees, may be exempt from having to be paid overtime. To qualify for exemption, there are essentially three requirements: (1) the employee satisfies a “duties test” for one of the exemptions; (2) the employee is paid on a “salary basis”; and (3) the salary paid is at least the minimum salary threshold. Some Professional employees (including Doctors, Lawyers, and Teachers) and Outside Sales Employees are not subject to the salary basis test. This has not changed with the implementation of the Final Rule. Key Provisions of the Final Rule

The effective date of the Final Rule is December 1, 2016. The Final Rule establishes a mechanism

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to automatically update the salary threshold every three (3) years. Of noted importance, and as it relates to the Executive, Administrative, and Professional Exemptions (Highly Compensated excluded), is the ability for the employer to apply nondiscretionary bonuses and incentive payments (including a valid commission payment) to satisfy up to 10 percent of the guaranteed salary level requirement; this payment must be made on at least a quarterly basis. Currently, employers are not permitted to include any type of bonuses or incentive compensation in calculating whether an employee’s compensation meets the White Collar salary threshold. To account for the fact that an employer may not be able to calculate in advance what an employee’s non-discretionary bonus or incentive compensation will be, the Final Rule also allows employers to make catch-up payments to bring employees up to the salary threshold as

BUSINESS SOLUTIONS

long as the catch-up payments are made no later than the pay period after the end of the quarter. Thus, under the Final Rule, an employer can pay an employee a base salary of at least 90 percent of the salary threshold (or $821.70) and then make up the remaining 10 percent with non-discretionary bonuses and incentive compensation. If, at the end of the 13-week quarter, the employee’s base salary plus his or her non-discretionary bonuses and incentive compensation are not at least $11,869 ($913 x 13 weeks) on the next payday after the end of the quarter, the employer can pay the employee the difference between the employee’s actual earnings and $11,869 without the employee losing his or her exempt status. Currently, employers are permitted to include certain types of bonus and incentive payments for the purposes of the Highly Compensated salary threshold; the Final Rule does not make any changes to how bonuses and incentive compensation are treated for the purposes of the Highly Compensated Exemption. Bona fide Teachers, Coaches, Graduate Assistants, and Academic Administrative Personnel employed at an institution of higher education are not affected by the Final Rule. Additionally, the Final Rule does not alter the current requirements for employees of state and local governments or subdivisions thereof; the use of “Comp Time”, hours of work provisions for police and firefighters, elected officials and staff, and legislative branch employees are not to be affected. Enforcement of the Final Rule is delayed until March 17, 2019, for providers of Medicare-funded services for individuals with intellectual or developmental disabilities in residential homes and facilities with fifteen (15) or fewer beds. What Employers Should Do Now

While the Final Rule is not effective until December 1, 2016, employers are encouraged now to assess their current liability by conducting a thorough review of salaried positions. Specifically, employers are encouraged to determine the hours of work performed by those salaried positions of which their current salary is less than the new guaranteed salary requirement. Employers then have several options:

• Employers may consider changing the method of

compensation from salary to an hourly rate of pay with overtime (1½ times the regular rate of pay) for any hours that exceed 40 in a work week. • Employers may also consider implementing the Fluctuating Workweek method of payment. This method of payment provides a guaranteed salary per week with a straight time earnings calculation providing half (1/2) time for hours that exceed 40 in a work week. • Retail and service establishments may consider implementing the Retail 7i Exemption to overtime. This exemption requires that the employee earn at least more than half (51 percent) of their total compensation from a non-discretionary bonus or incentive pay plan. Further, the employee must yield an hourly rate of pay of at least one and one half (1½) time minimum wage for all hours worked. This partial exemption does not remove the requirement for an employee to maintain a true and accurate time card for all hours worked. Employers are encouraged to contact SESCO to schedule a Wage and Hour compliance audit. If your organization is not currently a retainer client of SESCO or a member of a retained SESCO Association, such as NPA, please contact SESCO to explore this exclusive offering which will provide the audit and ongoing telephone/ email support.

Jamie Hasty Vice President, SESCO Management Consultants

Jamie Hasty is the Vice President of SESCO Management Consultants, an affinity partner member of NPA, providing results-oriented human resource consulting services to its members. SESCO provides a free “hotline” to discuss day-to-day employment issues such as policy development; employee challenges, such as disciplinary actions, terminations, or workers’ compensation issues; compliance to federal and state employment regulations; and many other management and human resource matters. Feel free to contact Ms. Hasty at (804) 9316281 or jamie@sescomgt.com to discuss questions as NPA members.

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National Pawnbrokers Association

Pawnbroker Spotlight

The Castle Jewelry and Pawn No Hassle at The Castle Phil Block is president of The Castle Jewelry and Pawn, and has been a member of NPA since 1995. Headquartered in Lexington, KY, the company has nine stores around the state, plus one in Ohio, and employs 120 people. Phil runs the company with his son, Barrett, a recent Wharton School of Business graduate. National Pawnbroker (NP): How did you

get started in the industry?

Phil Block (PB): The idea of getting into the

pawn business was not my own. My best friend and business partner, Jimmy Lambert, had a friend, Mary Alice Casey, who owned a pawn store in Henderson, KY. He thought it was a terrific business model and encouraged me to check out her store. I had never been in one before and was unsure about the whole thing, so Jimmy sent me an article in GQ magazine about Jack Daugherty, the Pawn King, who had recently gone public with Cash America with only 32 stores. After seeing the article and spending a few weeks working with Mary Alice in her store, I was sold on the idea of starting our own pawn store. NP: What makes your stores different from other

pawn stores in the area?

PB: From the very beginning, we designed our stores

to look more like high-end jewelry stores. We carry a large selection of new jewelry, and always make sure our reconditioned jewelry looks like new before it goes into inventory. We actually give the same warranty on both our new and reconditioned jewelry. In 1991, I made my first trip to Antwerp, Belgium, the diamond capital of the world, and started to import diamonds directly from overseas. We have continued to buy diamonds and jewelry overseas ever since. Our employees study our own GIA-based curriculum and are trained, not only to sell jewelry, but also to be great pawnbrokers.

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Phil Block and his son, Barrett Block.

Most importantly, our employees feel like part of a family. We live by the credo, “There’s no hassle at The Castle”. NP: What are the biggest obstacles facing

pawnbrokers today?

PB: Increased competition – not just from other

pawn stores, but also jewelry retailers. When we first opened, we were the only pawn store in our third of the city. Now there are seven within a mile of us. The competition among jewelry companies has increased even more. We now compete with supermarkets, department stores, and the internet. There is also increased government regulation. Thanks to Dodd-Frank and the Patriot Act, we have even encountered growing concerns from our local bank not wanting to handle our sizable cash deposits. Additionally, the Military Lending Act (MLA) is unjustly burdening pawnbrokers nationwide. NP: How will the new MLA rate cap affect your company? PB: We have already implemented measures to accommodate the MLA. We have found that each individual loan takes much longer and, consequently, inconveniences all of our customers. Luckily, we aren’t near a military base, but we have tremendous empathy for those stores that are. NP: What is the best advice you ever received? PB: I have two. In my 20s, I was in Las Vegas with

Jimmy Lambert, who was a personal friend of Cliff

Pawnbroker Spotlight

impression upon me. The other valuable piece of advice I received is one that originated from Jimmy’s father who said, “A short pencil is better than a long memory.” The older I get, the more important the “short pencil” advice becomes. NP: How does your company give back to

the community?

PB: We support many schools, sports teams,

The Castle Jewelry and Pawn, Kentucky and Ohio’s largest discount fine jewelry dealer.

Perlman, the president of Caesar’s Palace. There was a plaque in Mr. Perlman’s office that read, “The harder I work, the luckier I get.” I was surprised to see those words in the number one casino in Las Vegas. Needless to say, it left an indelible

churches, and social organizations by giving them a piece of jewelry to raffle off. When we give them a $100 ring, they’re likely to raise $1000 or $1500 for their cause. We also directly donate money to many charities, both local and national. NP: Why are you a member of NPA? PB: Without the NPA, the pawn industry would

have no voice or bargaining power against government regulations, like the MLA. The NPA is an invaluable tool for staying informed and alerted to developments facing pawnbrokers nationwide.

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National Pawnbrokers Association

Young Pawnbroker to watch

Nick Uroda Assistant Manager, Pawnbroker Clark Loan and Jewelry Inc Aberdeen, MD

Years in the Pawn Industry 7 years

What I Do When I’m Not at Work Play sports (ice hockey) and watch a lot of movies

My Greatest Career Accomplishment Making the transition to management, along with the completion of the Certified Pawn Professional (CPP) program

The Best Advice I’ve Ever Received Lead by example. Not only will you accomplish your own personal goals, you’ll inspire others to reach their greatest potential.

My Media Mix: Musical Artists: Red Hot Chili Peppers/Twenty One Pilots Social Media Platforms: Facebook

People May Be Surprised to Know That I… Enjoy cooking

TV Shows: Game of Thrones/ Ballers/The Last Ship

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National Pawnbrokers Association

Industry Partner Spotlight

United Precious Metal Refining Setting the Standards in Refining

David Siminski, Vice President of Sales and Marketing, United Precious Metal Refining

United Precious Metal Refining

(UPMR) offers precious metal refining, jewelrybased products, and full service analytics in their precious metals analytical laboratory. The company was established in 1988 in Buffalo, NY, by a group of former employees from PM Refining. It has been growing ever since and has a current employee roster of 78. UPMR has been certified as a “conflict-free” smelter which means they will avoid and refuse any materials that directly, or indirectly, support or benefit unlawful armed conflict or contribute to serious human rights abuses or breaches of international humanitarian law. While UPMR has been a member of NPA for 15 years, David Siminski, Vice President of Sales and Marketing, has been selling for the company for the past 23 years. He spends 175 days a year speaking at conventions and seminars as well as meeting with customers to better educate them on the refining process. “I find that an educated customer is a good

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“I find that an educated customer is a good customer for UPMR.” customer for UPMR.” Sharing some of his ideas on how the company has been able to stay ahead of the game in the refining industry, David says, “We are a primary refiner, not just a smelter, like most. This gives us a tremendous competitive advantage in pricing and turnaround times. [There’s] no middle man handling your material. The biggest challenge to refiners now is the number of certifications required for certain segments of the business. These certifications are very expensive and the paperwork trail is long. Regulations have been a big part of our

Industry Partner Spotlight industry for the past fifteen years, but it’s gone to a whole new level in the last five years. Many of our customers are confused by the paperwork, and our jobs have become more complicated as we try to explain it.” One of the trends UPMR is seeing is the number of refineries that have started buying and selling diamonds. “There are plenty of great companies that provide this service (that also belong to the NPA). You can also do it yourself and add more to your bottom line.” David offered a couple of ways in which pawnbrokers can get a bigger return on their scrap gold and other precious metals: 1. Separate sterling silver knives from the forks and spoons. These utensils are filled and, therefore, not all silver. When you dump them in your silver, they drag down your analysis lowering your results and increasing your fees. 2. Always keep Platinum Group Metals (PGMs), which include platinum and palladium, separate

from your gold and silver scrap. It’s very difficult to extract the PGMs from gold; therefore, your expense increases, your payout is reduced, and it costs you more money. Process your PGMs separately to see better results and a greater return. UPMR has a very low employee turnover rate which provides them with the level of experience needed to repeat their processes successfully and provide customers with stability. However, they are always on the lookout for outside talent that can present new ideas and innovative ways of thinking. They look for employees with “common sense and work ethic”. This combination of low turnover and new talent helps UPMR keep the balance needed to thrive and take care of their customers. If you would like to learn more about UPMR, visit their website at UnitedPMR.com. You can also contact David directly at (800) 999-3463, ext 159, or dsiminski@unitedpmr.com.

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National Pawnbrokers Association

BUSINESS SOLUTIONS

Chip Card Update by Jerry Coyne

The first year of the migration to Europay,

Mastercard, and Visa (EMV) and the chip card is complete. Below is an update on the shift with some common questions heard from the pawn industry. The EMV credit card rollout is progressing steadily. As of August 2016, more than 326 million Visa chip cards had been issued in the U.S., and approximately 80 percent of MasterCard-branded cards had been issued with a chip. Overall, it is estimated that more than 70 percent of credit cardholders have a chip card in their wallet. By most estimates, less than 50 percent of all merchants in the U.S. have installed approved EMV processing equipment.

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1. Debit Transactions Processed as Credit – As part of the EMV rollout, there were some problems and delays with the implementation of software that the banks used with the debit cards which had prevented EMV terminals from recognizing debit cards. In addition, there were some joint software updates from the terminal manufacturers that needed to be downloaded to the EMV terminals that were not immediately communicated well. he delay in implementing the combined T software updates caused concerns for the pawn industry. At this time, all of the banks have updated their software. If you are still

BUSINESS SOLUTIONS

experiencing an issue with your debit cards, check with your processor to see if you have downloaded the file that will update your terminal software to correct the problem. 2. Interchange Rates for Debit Transactions – As part of the Walmart settlement, debit transaction rates are broken out between regulated and unregulated rates. This is important to remember when you review your monthly statement because you should see line items that break out these charges. egulated rates are for the banks that have over R $10 billion in total assets that are issuing the debit card. The interchange rate for Regulated debit transactions, regardless if a PIN is entered, is $0.05/transaction and 0.22 percent of the volume. nregulated rates are applied when a debit card U is used from a smaller bank (assets under $10 billion). Those charges do depend on the entry of a PIN, and generally, it saves the merchant an average of 0.20 percent of the dollar amount if a PIN is entered. Consumers still have the option if they want to enter in the PIN for debit transactions. If the consumer does not enter the PIN, then the transaction is still processed at a lower debit card interchange rate but not as low as the regulated rate. 3. Merchant Chargeback Liability with EMV – This is important if you do not have an EMV equipped terminal. As more and more chip cards are issued, your potential liability will increase if you have not converted to EMV. Under the new EMV rules, if a merchant has any chargebacks for a face-to-face transaction, or fraudulent transactions, but does not have an EMV terminal, the merchant is responsible for 100 percent of the chargeback. If the merchant has an EMV terminal, the chargeback goes through the standard chargeback process that exists today. If the card does not have a chip for EMV, regardless of how you authorize the transaction, the chargeback process will be the same as it was prior to EMV being implemented. 4. PIN for Credit Transactions – At some point,

in an effort to secure credit transactions, a PIN number will be used for a credit transaction as well. Most banks have not required or set up PINs on the existing credit cards that have been issued. This will be the next iteration of the EMV process. 5. P rocessing Times for EMV Terminals – One of the bigger issues with the EMV migration is the length of the processing time it takes to complete a transaction. While the debit card challenges were certainly a major issue for a number of months, the processing time for an EMV transaction continues to be an outstanding issue. While the speed has improved marginally, the credit card associations (Visa/MasterCard/Discover/Amex) are continuing efforts to improve them. MasterCard announced earlier this year that it will work with other payment networks, acquirers, and processors for new standards to get transaction times moving faster, with the core of those efforts rooted in the company’s recently announced M/ Chip Fast solution. Helpful tips to avoid paying excessive Payment Card Industry (PCI) fees You are required to recertify your status as being PCI compliant on an annual basis. Failure to recertify can result in additional monthly fees that range from $19.95 to as much as $60, depending on your processor. Recertifying is a simple process that can be completed in less than ten minutes. Paysouth Merchant Services completes the annual recertification process for NPA members who process with them so there will be no additional fees. For those who process with other providers, you should receive an email annually to recertify your information. Recertifying can be done through a process called “Express Renewal Option” which has all your information preloaded. You simply acknowledge that your procedures and equipment for processing transactions have not changed from the prior year. It’s simple and a real money saver. Jerry Coyne is a Managing Partner for Paysouth Merchant Services, an NPA Business Solutions Partner. He can be reached at jcoyne@paysouth.com or at (617) 578-9444.

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National Pawnbrokers Association

Book Corner

What It Takes To Be #1

by Vince Lombardi, Jr.

Vince Lombardi on Leadership It’s no secret that Vince Lombardi, arguably the greatest NFL coach of all time, knew a little something about leadership. In his career as head coach of the Green Bay Packers, Lombardi steered his team to five NFL Championships and victories in Super Bowls I and II. So what skills and knowledge did this famous coach possess to take his team from being the worst in NFL history to being one of the best? In What It Takes to Be #1, Vince Lombardi, Jr., drawing from letters, speeches, and other writings his father left behind, examines the principles behind his successful career. He lays out what he believes to be his father’s ideas on exactly what qualities are required for effective leadership. Leadership starts with self-knowledge, selfknowledge is the basis for character, character is the root of integrity, and integrity provides the foundation

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of leadership. As well as delving further into the above model, Lombardi, Jr., takes you through vital leadership traits, how his father applied those qualities in a leadership setting, and much more. In the words of the late Vince Lombardi, “Leadership is not just one quality, but rather a blend of many qualities; and while no one individual possesses all of the needed talents that go into leadership, each man can develop a combination to make him a leader.” What better way to learn lessons of leadership than from a Hall of Fame legend?

social media

Promoting Your Business in 140 Characters or Less A Beginners Guide to Twitter Using social media can be a daunting task, and Twitter is seemingly one of the most difficult to use with its symbols and funny jargon. But before you dive head-first into the diverse world of Twitter, take a step back and get to know the basics of the platform you’re working with. What is Twitter?

Twitter is a micro-blogging platform where users from around the world can share their thoughts, information, news, and much more in 140-characters or less. Why Should I Use Twitter for My Business?

Twitter offers a different way to market your business. With this platform, you harness the power to market to a range of individuals with a variety of interests. You can: • Share links to your website or other social media platforms

National Pawnbrokers Association

WINTER 2016

• Promote products or services • Keep customers informed (announce store openings, closings, etc.) • Demonstrate your expertise in your field How to Get Started

After you create your Twitter account, make a profile. The profile is the most important part of your account because it is the first impression that a potential follower/customer will have of your business. Following are three things you must have for your profile: 1. A username that corresponds with your business 2. A bio that accurately describes your business 3. A photo or image that helps you stand out from the competition Twitter Glossary

Before you start posting to Twitter, it’s important to understand the words that are used on the (Continued on page 57)

Government Relations

Part 2

Combating Unwanted Legislation by Ric Blum

Below is an excerpt from an article on

“How Unwanted Legislation Can Become Law” that was published April 6, 2015, in The Insider. “In the General Assembly, proposals become laws only if they are endorsed by a majority of House and Senate members, right? In a perfect world, that would be true. However the world isn’t perfect, and it’s possible that a controversial law could become a statute without majorities of both chambers behind it. One way this happens is when unrelated provisions or amendments are merged into one bill. In such situations, legislators might like parts of a bill and dislike others, yet are forced to vote yes or no on the entire thing. Another way laws can become law without majority support is by insertion into the state budget. That way, they often don’t receive full debate and don’t have to get through both

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chambers as standalone bills. The final versions of budgets come before lawmakers after weeks or months of negotiations among House and Senate leaders, with concessions from both chambers. Sometimes those concessions involve adding provisions that one chamber or the other hasn’t had the opportunity to debate and might not support. Also, few lawmakers would vote against a budget simply because they don’t like one or two provisions – especially if doing so would prolong the legislative session. But there is no reason why controversial proposals should make it into law without support from a majority of the members of the House and Senate.” Gannon, Patrick. “How Unwanted Legislation Can Become Law.” The Insider, 6 April 2015. Web 7 April 2015. http://www.ncspin.com/how-unwantedlegislation-can-become-law/

Government Relations

Follow the Money Through Special Interest Groups

spe·cial in·ter·est noun plural noun: special interest groups 1. a group of people or an organization seeking or receiving special advantages, typically through political lobbying. http://www.encyclopedia.com/doc/1O999specialinterest.html A Special Interest Group (SIG) is a community within a larger organization with a shared interest in advancing a specific area of knowledge, learning, or technology where members cooperate to affect or to produce solutions within their particular field, and may communicate, meet, and organize conferences. The term originated on CompuServe, an early online service provider, where SIGs were a section of the service devoted to particular interests.

https://en.wikipedia.org/wiki/Special_Interest_Group While it is not feasible to follow every special interest group in every state in this article, let’s say that those states which have an abundance of payday and title loan storefronts also have a healthy list of contributors to PACs, political parties, funds, and individual representatives. The Ohio Pawnbrokers Association has fought negative legislation for years with the help of its membership and a grassroots approach. Many times, my colleagues and I have called every member of a committee to educate them on the legislation sitting before them. We usually followed this up with an email and a letter since our concepts don’t all sink in initially. We’ve been invited to sit down with senators and representatives to make our point known. We have walked the halls of the Statehouse, sat through (often delayed) hearings, testified before committees, and talked with committee members and chairs both before and after hearings. I’ve

“ But there is no reason why controversial proposals should make it into law without support from a majority of the members of the House and Senate.”

met with my local representative numerous times in Columbus, in his local office, and even in my pawnshop. I attend most of his fundraisers and always shake his hand at other events. Our most recent success was last year when an amendment to the Ohio Pawnbrokers Act was strategically inserted into the House version of the state budget at the last moment (through the actions of a lobbyist for a public corporation) and removed in the Senate version after it was voted on and passed in the House side of the bill. It seems the amendment’s sponsor was misinformed about the true content and effects of the amendment on the Ohio pawn industry. That was exposed as was the fact that the amendment being fast-tracked through the House needed to be heard as a stand-alone bill with need for vetting in committee. Just another case of an amendment being passed without anyone really knowing what they were voting on. Look for Part 3 of this article in the Spring 2017 issue of National Pawnbroker. Ric Blum is Vice-President of Ohio Loan Co., Inc. in Dayton, OH. He has served as President of the Ohio Pawnbrokers Association, Secretary/Treasurer of the National Pawnbrokers Association, and as a member of the Board of Directors and the Board of Governors of the National Pawnbrokers Association. He was named the National Pawnbrokers Association Pawnbroker of the Year in 2014 and the Ohio Pawnbrokers Association 2015 Ohio Pawnbroker of the Year.

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National Pawnbrokers Association

BUSINESS SOLUTIONS

Google AdWords Advertising for Pawn FAQ What You Need to Know

Emmett Murphy, 3 CliCk Media

3 CLiCk Media has been receiving reports from pawnbrokers across the country that their Google AdWords campaigns have been disapproved or entirely suspended. Below is a list of some of the most frequently asked questions along with answers.

Why is Google AdWords targeting pawn stores? Over the last few months, Google has been adding more restrictions to their Advertising Policy for Financial Services. This is Google’s effort to protect its exposure to legal action or penalties for advertising potentially misleading, harmful, or illegal financial products. In Google’s own words, “Our policies are designed to give users information to weigh the costs associated with financial products and to protect users from harmful or deceitful

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practices.” The Financial Services Advertising Policy identifies “pawnshops” as offering personal loans, thereby requiring pawn stores to follow its policy to advertise with Google AdWords. The main hurdle for pawnbrokers to comply with the policy is Google’s requirement that pawn stores must not charge more than 36 percent annual percentage rate (APR) in order to advertise with Google AdWords. You can read the full policy at www.goo.gl/C3SOIe or by searching online for “Google ad policy”. Are pawn stores at risk of losing their listings on Google Search? It is important to remember these changes only affect Google AdWords advertisers, not organic Google searches. Google isn’t changing or manipulating organic search listing results for pawn stores.

BUSINESS SOLUTIONS

What is the Financial Services Policy all about? The policy requires pawn stores that choose to advertise with Google AdWords to provide specific information on their website, including disclosures, APR, minimum and maximum period for repayment, and a representative example total cost for a loan including applicable fees. Google is also fairly specific about how that information should be displayed. Required information, disclosures, and statements should be in simple language and clearly visible on your website. Google even provides a service to review your website to see if there are any violations. This is available on the Advertising Policy for Financial Services web page. Google’s policy is subject to ongoing modifications as the online advertising and regulatory spaces continue to evolve. Google promises to update the policy with additional product-specific guidelines.

pawn store deals in these items, it may be a red flag for Google AdWords. Additionally, pawnbrokers may report to Google about competitors who are successfully skirting the rules or illicitly advertising on AdWords instigating disapproval for an ad.

Why are some pawn stores allowed to advertise on Google AdWords and others are not? Google uses many different methods to determine whether or not an AdWords campaign is in violation of their policies. There is no sure-fire way to avoid being disapproved. Google’s methods can include automated searches of keyword ad text, manual or automated reviews of your website, and even target businesses with domain names that may have words related to the financial services policy, such as “loan”. Based on feedback from Google AdWords account specialists, there appears to be no industrywide movement to disapprove pawnrelated AdWord campaigns, nor is there a systematic process that has been put in place to do so. It is likely that Google wants to continue to generate revenue for as long as possible, so it is slowly turning off the AdWords spigot as this is more profitable than hitting the “off” switch. Additionally, it’s less disruptive within an industry to change slowly and will likely cause less of a backlash. Be aware that Google doesn’t allow the promotion of firearms, explosives, or other dangerous items, including knives intended for selfdefense, confrontation, injury, or combat. If your

How about other search engines? Search engines, like Bing and Yahoo, currently provide an average of about two to three percent of traffic to a pawn store website. Currently, these search providers are not targeting pawn or financial services; however, they typically will follow suit with Google. Yelp, Google Places, City Search, and other online review and directory services could also follow suit. Online “Yellow Pages” websites, like yp.com, have been notifying pawn store account owners that their advertising is being reviewed and may not survive the current and forthcoming policy requirements similar to those Google has in place.

Why are Google’s policies confusing or contradictory? Google has often been called the “black box” because they are secretive about their algorithms, methods, and processes. Google has detailed rules that they deliberately don’t make public. It doesn’t want its customers to figure out how to “game” the Google system. To confuse the matter further, Google is likely not concerned about following their own rules and policies exactly, and may allow ads to display based on whether or not an advertiser has acted in the spirit of the rules.

What is the worst thing that can happen if my AdWords account is caught violating the Advertising Policy for Financial Services? Google has ultimate control of your AdWords account and typically doesn’t re-open accounts, make concessions for unintentional mistakes, or react to appeals. If you violate Google’s Terms of Service or policies, the least that may happen is that your ad campaign can be disapproved. If your violation is severe enough, Google may choose to disable your domain, meaning that your website can no

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National Pawnbrokers Association

BUSINESS SOLUTIONS

longer advertise until the problem is fixed and your domain is reinstated. In the most severe violation cases, your entire account may be suspended, and any related accounts may get suspended at attempted set-up. The value of the revenue that is generated by your AdWords account is hardly worth Google risking, as an example, the $500 million penalty levied by the federal government in 2011 for advertising potentially illegal services. PRO TIPS:

Here are a few tips on what you can do to promote your business online via Google: 1. Search Engine Optimization (SEO) is your front-line defense for maintaining your current search results on organic Google search. This is also a great way to move your listings higher on Google. 2. Make sure you have claimed and updated your Google Places Page. This page is often the first impression a customer has of your business. 3. Make sure your website complies with as much of the Advertising Policy for Financial Services as possible.

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• Add a page to your website called “DISCLOSURES” that displays all required loan information. • Display a short disclosure statement in your website footer that appears on every page of your website clearly stating the minimum/ maximum period for payment, APR (plus fees and other costs for a year), and a “representative” or typical loan scenario. As an example, calculate a typical loan for $150.00 for 30 days, and include total costs associated. 4. C reate a new website that does not relate to your business’s pawn loan and financial services, but focuses on buy and sell services only. If you choose this option, be sure that your Google AdWords campaign doesn’t advertise any financial services. You can be creative with how you choose to work with Google AdWords. Just don’t break the rules. Emmett Murphy is the New Media Strategist at 3 CLiCk Media. He handles all Public Relations for the National Pawnbrokers Association and has appeared frequently in the New York Times, Wall Street Journal, USA Today, and Time magazine on behalf of the NPA and the pawn industry. For more information, visit 3clickmedia.com.

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COMPLIANCE

Compliance: Are You a Have or a Have Not? They say knowledge is power.

really gold. As a business owner, what could be more With a multitude of rules, we find important than empowering your staff and ourselves having to become human resource enriching yourself with the knowledge to experts, Military Lending Act (MLA) get business done right on all levels? As experts, privacy act experts, Truth-inbusiness owners and management, we also Lending Act (TILA) experts, and even antitake on the roles of teacher, mentor, and, money laundering savvy. Just like failing Bob Frimet, sometimes, rule enforcer. Our livelihood to train an employee on daily operations CAMS, RMF Consulting depends on how well our staff is able to can be costly (i.e. buying a fake stone or Group articulate our policies and procedures, chain), failure to train on required matters of and put them into practice whether itâ&#x20AC;&#x2122;s teaching compliance can be as well. someone how to grade a diamond, identify a real One case in point is a recent enforcement action watch from a fake, or if that 14K gold necklace is as posted on FinCEN.gov, 12/30/2015:

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COMPLIANCE

The Company did not have any anti-money laundering (“AML”) program in place until 2011, five years after it was established, and only after the IRS SB/SE examiners instructed it to implement a program. Although the Company subsequently obtained an AML program, the program was not reasonably designed to ensure compliance with the Bank Secrecy Act (BSA). As described in more detail below, the Company failed to appropriately assess its money laundering and terrorist financing risks, conducted almost no due diligence on many of its highest risk customers, and failed to implement effective procedures to identify red flags or to conduct inquiries when such red flags were present, among other things. The Company failures exposed the U.S. financial system to serious risks of money laundering and terrorist financing, given its transactional activity. As part of those findings: The Company did not provide for education and training of personnel regarding their responsibilities under the BSA and its implementing regulations. (31 C.F.R. § 1027.210(b) (3)) The IRS informed the Company of this requirement during the 2011 examination, and the anti-money laundering program the Company adopted after the examination expressly required such training. Notwithstanding having ample notice of this requirement, the company failed to conduct any training. CIVIL MONEY PENALTY FinCEN has determined that the Company willfully violated the program and reporting requirements of the BSA and its implementing regulations, as described in the CONSENT, that the owners willfully participated in these violations, and that grounds exist to assess civil money penalties. FinCEN has determined that the penalty in this matter will be $200,000 imposed on the Company and the owners.

Training and implementation can not only cost you in the operations side, as in purchasing fraudulent goods, it can cost you in regulatory

penalties as well. As indicated earlier, knowledge is power. A pawnbroker may have to fill out an 8300. A dealer in precious metals, under Title 31 of the U.S. Patriot Act, is required to perform internal monitoring, provide training, file Suspicious Activity Reports (SARs), and, of course, follow their AML policy and procedure manual. So what does one need to know about compliance training? That question is not just solely based on a title of what a person does (i.e. dealers in precious metals), but must be based on a risk approach. Does the company deal with large transactions? Does the company deal with wholesalers? Does the company deal in precious metals, bullion, or diamonds? These are just a few of the questions you must answer to know how to train and what to train. You would not generally train an employee how to purchase mink coats in the middle of the desert, so why would you provide training on how to provide suspicious activity on buying bullion if one doesn’t deal in bullion? The moral of the story is that one-size training does not fit all. In the past 11 years of compliance-related training, I have come up with two categories: the Haves and the Have Nots. The Haves are the ones who have an interest in their day-to-day business, make money, ensure the business runs smoothly, and provide their staff with the resources and the tools to empower themselves, thus following the rules and keeping the business safe from those pesky little fines that have known to be in the six figures. The Have Nots are the ones who glide through the day getting lost in their business, not growing, and in some cases, not complying because it’s too much work, inconvenient, or not cost effective. There is hope that few are on the latter side, but the reality is, many are. Just recently, I contacted someone in the industry as to their requirements and their response was, “It’s outrageous that I would have to spend money and time complying with something that I shouldn’t have to follow as I am doing business just fine and no one bothers me.“ My response might be that you could go years without paying taxes until the day you get audited, fined, or imprisoned out of existence. So, regardless of whether or not one wants

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National Pawnbrokers Association

COMPLIANCE

to comply, they should comply, and it all starts with training. What does the store owner have to do? What are the requirements of the employee? Under the regulation policy and procedure, you must clearly indicate the following: • initial training and testing of new employees • ongoing training and testing of existing employees • documented training logs • timeliness of training material • overall employee attitude and knowledge of BSA issues How do you train your staff? What training have you amassed? Have you attended a compliance seminar? Have you researched the regulations governing the business? Have you developed an AML program, if required, and have you implemented it? These are questions you should ask to further determine if you are one of the Haves or the Have Nots.

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What about the staff? Do they know how to recognize suspicious activity? Do they know what structuring is? Do they know what could be a source of funds trigger? Do they know how, and when, an 8300 would be followed? Do they even know what SAR means? Some examples could include: • Consumer uses false ID • Consumer alters transaction upon learning that he/she must show ID • Consumer alters the spelling or order of his/her full name • Two or more persons working together to break one transaction into two or more transactions in order to avoid AML/BSA reporting requirements • Consumer presents different identification each time a transaction is conducted • A legitimate ID appears to have been altered • A transaction in which it appears the customer is attempting to keep the 8300 form from being filed or is trying to cause the filing of a false or (Continued on page 49)

FIND IT

member benEfits

FASTER!

Labor Law Posters Discontinued For the past few years, the NPA has provided federal and state labor law posters to its members. The expense of continuing these posters has proven to be cost prohibitive for the association; therefore, we will no longer be able to provide this service.

There are a number of options available to obtain current posters and updates, including obtaining them from our human resources partner, SESCO Management Consultants (sescomgt.com).

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MEMBER NEWS

Bobbi Barrow, Kati Wilson, and Diane Barrow are happy to help you at their store, The Bank Gun & Pawn.

Triple Treat One Pawn Store, Three Generations, All Women The Bank Gun & Pawn opened in downtown Havre de Grace, MD, in September 2006 under the partnership of Diane Barrow and her mother, Bobbi Barrow. When Diane’s daughter, Kati Wilson, turned 16 and needed a job, she joined the team. Eight years later, the family-run store operates seamlessly by these three women alone. They have no other employees. Each of the three women has distinct and separate roles. Bobbi handles jewelry while Diane takes care of gun sales and keeps the books. Kati helps with the guns, but is the primary person for taking pawns and buy outs. She’s also in charge of shipping since they sell a lot of merchandise on eBay. However, like

National Pawnbrokers Association

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most small businesses, everyone pitches in wherever they are needed. The three women enjoy working together in the flexible, laid back atmosphere and know they have that rare opportunity to spend more time with their family members than a lot of others. There are some disadvantages, though. Sometimes they know too much about each other’s business. When asked how they handle conflicts, Diane admits, “Honestly, there are times we just yell at each other and move forward from there. [But] usually we just try to listen to each other and agree to disagree.” Three generations all working in the same store is unique, but three generations of women is pretty

COMPLIANCE

Are You in Compliance?

Enroll in NPA’s Online Anti-Money Laundering Compliance Program Do you know when, why, and how to fill out Form 8300? Did you know federal law mandates that training be provided and documented if you are a dealer in precious metals? Now you can get all your compliance training requirements with NPA’s new online compliance program “AML for Pawnbrokers and Dealers in Precious Metals”. Designed by Certified Anti-Money Laundering Specialist Bob Frimet, this self-paced course has been created specifically for the pawn and dealers in precious metals industries. Ensure compliance, avoid fines, and be proactive. For more information, visit NationalPawnbrokers. org/compliance.

NEW NPA ONLINE COMPLIANCE PROGRAM For Pawnbrokers and Dealers in Precious Metals

MEMBER NEWS rare. The women at The Bank Gun & Pawn say they don’t sense any real stigma as a woman-owned business in a predominantly male industry, but say people are surprised when they realize there are no male employees. They are often asked, “You don’t have any men here?” The typical response is, “Now why would we need a man?” Once in a while they have to ask someone to watch their language, but most of the time customers are very respectful. According to Diane, “I think, in some ways, being women can work to our advantage because we come across as more compassionate and caring. Being in the pawn business is sometimes like being ‘Dear Abby’. They just want someone to listen to them.” Separating work and home isn’t a problem for these three women. Diane and her mom have worked together for 25 years and it’s become second nature to them. They do spend time together outside of work, but they don’t talk about the business when they’re away from it.

Succession can be a difficult decision in a family business. Bobbi loves what she does and Diane doesn’t think her mom will ever retire from it. As for her own retirement, she says Kati will have to decide if she wants to continue the business, and then they will handle the logistics from there. Their secret to success so far, according to Diane, is that they are fair and honest with their customers. “Plus, when you like what you do, it makes it a lot easier and more enjoyable.” She doesn’t think a family business is that much different than any other business. “We have to continue to grow and change with the times. This can be difficult in the gun business – especially when politics plays a role. We will be getting a new president in November, and we have no idea what that will entail. We are always looking for ways to bring new customers in the door, and the economy plays a big role in that.” The next time you’re in Havre de Grace, MD, be sure to visit The Bank Gun & Pawn for a pawn store shopping experience with a feminine twist.

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National Pawnbrokers Association

BUSINESS SOLUTIONS

Rapaport Diamond Insights Dealers Hoping Holiday Season Sparks Sustainable Upturn By Avi Krawitz

The diamond market is showing signs of improvement as trading returned to normal in September after the summer vacation period. Steady traffic and interest from buyers at the Hong Kong Jewellery & Gem Fair, a bellwether for polished diamond demand, sparked cautious optimism among dealers for the months and year ahead, even if actual buying was limited. Polished prices remained relatively stable but ended the month slightly down. Overall, suppliers rejected deep discounts in an effort to protect their profit margins while the rough market remained relatively strong. The RapNet Diamond Index (RAPI™) for 1-carat polished diamonds slid 0.2 percent in September (see Chart A).

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While July and August saw slow trading during the summer holiday period, the September Hong Kong show brought an increase in the number of buyers looking at goods again. Buyers had refrained from purchasing in the past six months, working instead through existing inventory while prices were on a decline, exhibitors noted. “We avoided buying for the past two years and that turned out to be a good decision,” said Ephraim Zion, managing director of Hong Kong–based Dehres Ltd., a specialist in large precious stones and high-end jewelry. A number of wholesalers have depleted their stock and are considering buying again, he added. Dehres also felt the timing was right to introduce a new jewelry line at the show.

BUSINESS SOLUTIONS

Chart A

The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Still Conservative

Wholesalers and retailers remain conservative in their inventory purchases, particularly as economic growth has slowed, impacting jewelry consumption in the region. “Things are growing at a slower pace in China and certainly in Hong Kong, where tourism is down,” said one Hong Kong–based wholesaler. “People are holding less goods and are more conservative in stocking up.” That has left midstream dealers and manufacturers carrying the burden of the industry’s excess inventory. While stock levels are “in a healthier place” than they were in 2015, there is still an overcapacity — of goods and dealers — in the market, argued Jeremy Medding, a partner at EMA Diamonds which specializes in .10-carat to 3-carat stones in all colors and clarities. The decline in Chinese demand is also impacting the long term outlook for the melee market along with uncertainty about how synthetics will impact

prices. The Rapaport Melee Index (RMI™) declined 13 percent in the third quarter despite solid results at its September melee auction (see Chart B). 2H Caution

Meanwhile, inventory levels continue to rise as manufacturing ramps up before India’s Diwali holiday that begins on October 30, when most Indian factories close for two to four weeks. De Beers sold $630 million worth of rough in its sale that took place late August through the first week of September. Manufacturers brought forward some of their demand in order to cut and polish rough diamonds in time for the important retail selling season, the company explained. Trading on the rough secondary market was steady, with De Beers boxes selling at higher premiums among dealers. Prices firmed at the ALROSA sale in mid-September even as many expect a slowdown in the fourth quarter. “Market conditions are likely to depend on

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National Pawnbrokers Association

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continued supply control from the major producers to the midstream and stable retail demand, particularly in the U.S., the largest global market,â&#x20AC;? said Johan Dippenaar, CEO of Petra Diamonds, which raised its production outlook for the current fiscal year. Given that the first half of the calendar year is the seasonally stronger time for the rough diamond market, Petra remains cautious for the rest of the calendar year, Dippenaar added. Polished suppliers expected a similar softening of rough demand in the fourth quarter, hoping the holiday season will boost polished sales and their profit margins. Holiday Hopes

The focus following the show shifted to the U.S., which has maintained stability throughout the year. U.S. polished demand has been stable, with imports flat in the first half of 2016, while exports were slightly down. Most industry executives that spoke with Rapaport did not expect an exceptional season given the continued challenges in the global economy. Declining wealth in the Middle East and Russia due to oil and currency volatility, the refugee crisis and terror concerns in Europe, and the U.S. presidential elections are all contributing to the caution in the market, explained an Antwerp-based

dealer, who requested to remain unnamed. Dippenaar expressed concern that macroeconomic conditions would remain volatile and damaging to consumer confidence in the short term. He sees a more encouraging view of the market in the long term, with renewed generic marketing starting this holiday via the Diamond Producers Association (DPA). As the fourth quarter got underway, there was some anticipation the holiday season will boost the trade. Certainly, as the bulk of holiday orders have come through and suppliers work to fill those orders, dealers are hoping to build on the improved mood that was evident only as dealers returned in September from the long and quiet summer.

The Rapaport Group is an international network of companies providing added value services that support the development of fair, transparent, competitive, and efficient diamond and jewelry markets. Established in 1978, the Rapaport Price List is the primary source of diamond price and market information. Group activities include Rapaport Information Services, Rapaport Magazine, and Diamonds.net, providing research, analysis and news; RapNet â&#x20AC;&#x201C; the worldâ&#x20AC;&#x2122;s largest diamond trading network; Rapaport Laboratory Services provides GIA gemological services in India, Belgium and Israel; and Rapaport Trading and Auction Services specializing in recycled diamonds and jewelry. Additional information is available at Diamonds.net.

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National Pawnbrokers Association

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Be In the Know Getting the Most Bang for Your Marketing Buck

Kenja Purkey, McDonald Marketing

We all want to get the most out of our marketing budget whether that budget is six figures or just a few thousand dollars. The good news is that a limited budget doesnâ&#x20AC;&#x2122;t have to mean limited results. The key to maximizing your budget, regardless of what marketing channels you use, comes

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down to just two things: Know thyself and know thy customer. Know Thyself

What does your pawn store stand for? What does it value? What is its company culture? Have you ever tried to articulate those things? If not, itâ&#x20AC;&#x2122;s a good exercise to do. First, write down what you think those things are. If you

BUSINESS SOLUTIONS

were to ask your employees and customers those same questions, do you think the answers would match up? If so, you’re doing a pretty good job of articulating your store’s values. If they don’t, you might have some work to do in educating your employees and the public at large about what you want those things to be. This is important because it tells customers why you do what you do, and it helps them decide whether or not you are a good fit for them. If, on your website, you tell me that your company is devoted to community, integrity, and the financial empowerment of your customers, as a consumer, that tells me something about your business and how you strive to run it. Next, what is your brand promise? A brand promise is what consumers receive when they get a loan or buy from you. It can include the tangible product or service they purchase as well as the feelings they get when they purchase. For example, Target’s brand promise is “style on a budget”. When

I buy something from Target, I can feel confident that what I’m buying will provide me with value for my money, and it will also look good. Finally, what is your “unique value proposition”? A unique value proposition is something your customers can get from you that they can’t get from your competition. Maybe you have extended hours or are the home of the “In and Out in 15-Minutes Guarantee”. It’s how you separate yourself from the pawn store across the street. If you haven’t developed these things, it’s not too late to start. Incorporate them into your company culture, website, and marketing messages. Make sure your employees know them also because they are the ones who demonstrate who your business is on the frontlines to your customers. Know Thy Customer

Who is your typical, most profitable customer? You need to know the answer to that question, and remember there may be more than one. For

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National Pawnbrokers Association

BUSINESS SOLUTIONS example, your most profitable loan customers might be single moms, age 28-45, while your most profitable merchandise buyers might be males, age 45-60. If you haven’t looked at the data to find out who your most profitable customers are, you should. For any sort of marketing message to resonate, it has to be relevant and meaningful to the audience. Knowing who your profitable customers are helps you target marketing messages just for them. Once you know your customer, you can figure out the things they care about, what their problems are, and their pain points (what they are struggling with). If you’re having trouble figuring it out, ask them! Then go about solving their problems and relieving their struggles, so you can become an indispensable and trusted partner to them. Long gone are the days when you could buy a newspaper ad and be sure that the audience

you wanted would see your message. Knowing your customer helps you figure out what media they consume and where to focus your marketing messages. Your pawn store can’t be all things to all people, and you can soon exhaust your marketing budget if you try. Approaching your marketing with a tailored message to your most profitable customer that addresses who you are and why you are the best solution to their problems competitively positions your store and gives you the most bang for your marketing buck. Featured in PR Week and Accent West magazines, Kenja Purkey is a media, marketing, and advertising professional with more than 20 years of experience. She is a former news anchor and congressional media representative, and has 15 years of general marketing and advertising experience in both the government and private sector. Kenja is the Director of Strategic Planning at McDonald Marketing. She can be reached at Knpurkey@hotmail.com.

SAVE THE DATE

2017 NPA Legislative Conference

April 25-26, 2017

Hamilton Crowne Plaza, Washington, DC

Help NPA advocate for the pawn industry. NationalPawnbrokers.org/legislative-conference

National Pawnbrokers Association

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BUSINESS SOLUTIONS

How To Handpick Your Best Candidate For many small businesses, attracting and retaining good employees can be difficult. The pawn industry is no exception, and may even have it harder due to some still-present negative stereotypes. Below is an excerpt from a SESCO Management Consultants article on some of the best ways to build your talent pool.

Looking for talent? The smartest

employers, who hire the best people, develop a pre-qualified candidate pool before they need to fill a job. You can develop relationships with potential employees long before you need them. These ideas will also help you create a larger pool of candidates when you have a current position available. The earlier you adopt these practices, the better your organization will do in the war for talent. Identify Your Ideal Candidate

Assemble a team of individuals who represent the best qualities of the people who currently hold the same, or a similar, position. Include the hiring manager. Develop a job description that delineates the key responsibilities and outputs of the position. Then, define the behavioral characteristics of the person you feel is your ideal candidate. Finally, list five to ten key responsibilities and characteristics you will use to screen resumes, perform phone screens, and eventually, establish the questions for the candidates you interview. Tap Your Employee Networks

Spread word-of-mouth information about the position availability, or eventual availability, to each employee so they can look for superior candidates

“ We use Indeed.com and a new applicant tracking software called Jazz, which pulls from several different sites, in addition to referrals. We’ve even attended job fairs at colleges in our more rural markets.” Justin Barbee, Insta-Cash Pawn

in their networks of friends and associates. Use trade show booth time to meet and get to know potential candidates as well as customers. Encourage employees to develop relationships with high potential possible employees. Don’t stop with employees alone; tap the networks of your social, board, and academic connections, too.

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National Pawnbrokers Association

BUSINESS SOLUTIONS

“ Hiring and retaining the right people is paramount when you work in a “people” business. Because our employees deal with everything from sockets to diamond rings, the learning curve is stretched out. It takes a while to turn a good employee into a good pawn specialist.” Cathy Gish, PHR, Brittex Financial Inc DBA Money Mart Pawn & Jewelry

Use Your Website for Recruiting

Does your “Join Our Team” section of your company website tell and even “sell” potential employees about the vision, mission, values, and culture of your company? Do you present a message about how people are valued? Do you express your commitment to quality and to your customers? If not, you are missing out on one of the most important recruiting tools you have to appeal to prospective high-potential employees. Your job listings must sparkle with personality so a potential candidate thinks, “This organization is for me!” Once you have their attention, you also need to provide a way for candidates to easily submit resumes for consideration for future positions. Become an Employer of Choice

Think about what a potential employee considers before agreeing to join your organization or business. Are you stable, making money, and growing? Are you employee-friendly? Does your mission catch the mindshare and/

“ I have the best luck going through the local college. It is also free. You may only have them for 2-3 years, but they are tech and social media ready.” Scott Paulsen, Peninsula Pawn

or the heartstrings of the people you most want to recruit? Will a new employee feel part of something bigger than themselves if they join you? Will your organization nurture their talent and provide exciting opportunities for challenge and professional growth? People look for little things, such as noticing whether you return phone calls promptly. They observe when all interviewers repeat the same questions. They are aware that you responded to acknowledge receipt of their resume. They appreciate a phone call when someone else is picked for the job they wanted. (Yes, you still need to send a letter to the people you interviewed, but the more informal follow-up is appreciated.) They feel welcomed when they can communicate with you via email. Recruit Using the Internet

The internet, in addition to your own website, is in its infancy in terms of its usefulness to employers, potential employees, and society, in general. Learn how to use the internet to find and attract great candidates. These are options you can currently consider. • Post your positions on professional association websites. This includes local chapter websites or professional associations related to the job. • Post a classified ad on newspaper-related websites. Most newspapers have an affiliated website where you can post ads. These ads are either included in the price of a classified print ad or you can pay separately for online posting only. • Pay to post on some commercial sites such as Monster.com. (Continued on page 47)

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Behind the scenes

Marliss Allen NPA’s Queen of Social Media

Marliss Allen is NPA’s Program Coordinator,

Events and Communications. She joined the association in July 2015 with a brand new advertising and public relations degree from Southeastern Oklahoma State University in Durant, OK. She was able to immediately put her writing and editing skills to work drafting articles for the NPA Insider newsletter and National Pawnbroker magazine. On a typical day, you can find Marliss designing email blasts, researching information for an article, creating social media posts, adding content to the NPA website, or working on a Pawn Expo or Certified Pawn Professional project. You might even catch her answering the NPA phones. While she enjoys writing articles and coming up with interesting social media content, there are some negatives to her job. She has to stay inside all day, she can’t wear her pajamas to work, and she has to leave her puppy, a Boston terrier/pitbull mix named Ace Beans, at home. There’s also that little issue of the candy bowl in the room next to her office. When asked about her greatest accomplishment since she began her career a year ago, Marliss said, “When I started at NPA, the association’s presence

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“Social media reaches thousands, even millions, of people and it’s free!” on social media was basically non-existent. Now, we post regularly to Facebook and Twitter, and we have also created an Instagram page. Technology and social media play such a big role in today’s world, I think it’s important to utilize every outlet you possibly can. Social media reaches thousands, even millions, of people - and it’s free! I really don’t see how you can beat that!” When she’s not at work, Marliss enjoys traveling and cooking. The former Fort Scott, Kansas native also enjoys watching sports, especially the Kansas City Royals. If you have an idea for an article or a social media post, contact Marliss at (817) 337-8830 or by email at Marliss@ NationalPawnbrokers.org.

BUSINESS SOLUTIONS

(From page 44)

How to Handpick Your Best Candidate Use Headhunters and Recruiters

Sometimes, it is worth your time to use headhunters, recruiters, and employment placement firms. Expect to pay 20-35 percent of the cost of the new recruit’s annual salary. But, for some positions and some industries, the cost in your department’s time and the time invested in a possible failed search, are worth it. Use Temporary Agencies and Firms for Recruitment

Consider using temporary staff as a solution to “try a person out in a position” or to staff a position you are not sure you need for the long haul. Temporary employees also can provide a useful buffer for the ups and downs of the business cycle so that you do not have to affect your core staff during down times. (Continued on page 59)

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National Pawnbrokers Association

COMPLIANCE (From page 32)

Compliance: Are You a Have or a Have Not?

incomplete form • A transaction that appears to be “illegal” • Activity by the customer does not meet with the usual business practice of the customer or, the activity is not usual for the business. For example, if a customer came in every day with five gold coins and received less than $9,000 in payment, it could be assumed that the customer is trying to structure transactions as to avoid 8300 forms being filed. • Consumer who works at a fast food restaurant purchases $2,000 per week in bullion (potential source of funds issue) There is a great catch phrase going around these days in the compliance space, “Pay now or pay later”. You can pay now by taking the time to implement the appropriate resources to ensure your business is in compliance with the latest requirements and make certain that your staff

knows the difference between a SAR and an 8300, what the record keeping requirements are, etc. Or, you can pay later when Uncle Sam pays a visit and drops the hammer, the bank says goodbye, or the processer, such as PayPal, says adios, all of which could have a very strong impact on the operation of your business. What is the moral of the story? Empower yourself by learning what is required to be compliant and educate your staff on the requirements as well. The NPA offers an online training course which is a great low-cost way to educate you and your staff. For more information, visit NationalPawnbrokers.org/compliance. Bob Frimet is president of RMF Consulting Group and is a certified anti-money laundering specialist (CAMS). He has served the pawn, check cashing, payday, title, and other industries since 1991. Mr. Frimet offers compliance services nationwide and may be reached at (702) 596-8370 or at Bob@checkconsultants.com. Visit Checkconsultants.com for more information.

MARK YOUR CALENDARS

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National Pawnbrokers Association

Product Knowledge

Are You Game? Tips to buy and sell video game systems Video games can be a very profitable part of

your store’s product line. The key is to make sure you are taking in the right systems and accessories as these items change frequently and could easily become “stale” inventory. Below are a few key points for you to consider:

• S tick with the latest generation of consoles, although your particular market may be open to some older models. • Know your market, but the best models to stick with are the Xbox One, Xbox One S, PS4, and handhelds: PSP Vita, PSP, Nintendo 3DS and 3DS XL. • Some vintage systems are collectible, such as some Commodore 64, Imagination Machine, Spectravision, and early Nintendo. It’s best to check eBay or do an online search to determine the rarity. • Try to acquire the complete system including cables and controllers. You can always replace missing cords, such as an HDMI, controller charger, and some power cords. But systems like the Xbox One require a unique power supply that will be costly if you need to buy one aftermarket.

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• Stick with clean and well maintained systems. If a system looks like it has not been cared for, then it probably hasn’t been. Cracked cabinets, missing doors or covers, and dirt are a definite reason to shy away. • You should pass on systems with a parental lock unless the owner can produce the code. • When selling systems, always make sure to restore them fully and delete all existing personal information. • Try to stick with the latest generation for game discs. Check eBay for popularity and a price range. As a rule of thumb, only the very latest generation sports games have much of a resale value. • It’s easier to sell a system that includes the original packaging (box, DVD cover, etc.) and the instruction manual. One last point to think about is the time of year. Video games and consoles will generally sell better during the holiday season (October – December), so be sure to stock up before the rush. Contributing authors to this column include Lou Tansky and Greg Engstrom.

Community involvement

Anne Powell accepts a $1000 FBL scholarship from Bricean Schupman (left), store manager of Double Eagle Pawn Shop, and Sean Carbary (right), store owner.

FBL Scholarship Winner Update Student Overcomes Big Obstacles to Achieve Big Dreams Each year, thanks to the generous donations

of its members, NPA gives out several $1000 scholarships to college students who are planning to enroll, or are enrolled, at an accredited twoyear college, four-year college, or trade school. Anne Powell, sponsored by Double Eagle Pawn in Spokane, WA, is one of the 2016 FBL scholarship winners. She is attending Whitworth College in Spokane this fall, double majoring in business and biology. Along with going to school, she is working part-time at Double Eagle Pawnâ&#x20AC;&#x2122;s North Francis store. Working part-time while going to school can be a challenge, but itâ&#x20AC;&#x2122;s one that Anne is willing to take on to better her future. Besides, she has shown before that she is capable of working hard to achieve something she set out to do. When Anne was in high school, she had two knee surgeries while taking some of the hardest classes she had ever taken - chemistry, trigonometry, organic chemistry, and AP government. She had to miss a total of three weeks of classes and, although it was tough to catch up to her peers and keep her good grades, Anne put in the time and effort to end the school year with a 3.3 GPA. She steadily increased her GPA to graduate from Mead High School with a 4.0. There is no doubt that Anne will put her Future Business Leaders scholarship money to good use and continue to succeed throughout her college, and professional, career. Good luck, Anne!

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National Pawnbrokers Association

MEMBER NEWS

National Pawnbrokers Association New Members August 1, 2016 – October 31, 2016

Pawnbrokers

Idaho

New Mexico

Arkansas

Ken’s Loans and Jewelry, Inc • Nampa

Osuna Trading and Loan Co • Albuquerque

Illinois

Ted’s Pawn Shop & Jewelry • Gallup

Arch Street Pawn Shop • Little Rock Wilson’s Pawn and Sales, LLC • Searcy

Liberty Pawn • Fairview Heights

Colorado

Money Market Pawn • Rockford

Clayton Gold-N-Pawn • Clayton

Kentucky

Park-N-Pawn • Jacksonville

Pawnbanc South LLC • Englewood Florida La Familia Pawn & Jewelry • Sarasota (2) La Familia Pawn & Jewelry • Orlando (7)

Louisiana

Oklahoma Fine Pawn • Sallisaw

Pawn Smart Inc • Lafayette

La Familia Pawn & Jewelry • Miami

Pawn Smart Inc • Abbeville

Metro Jewelry & Pawn Inc • Garland

La Familia Pawn & Jewelry • Haines City

Mississippi

Star Pawn • Joshua

Moneyman Pawn • Bradenton Universal Jewelry Pawn & Gun Range • Brandon Georgia Gene’s Pawn Shop • Cornelia

Kwik Kash Pawn & Gun • Bardstown

Woodson Music & Pawn • Midway Park

La Familia Pawn & Jewelry • Kissimmee (3)

La Familia Pawn & Jewelry West Palm Beach

Herzog’s Pawn • Paducah

North Carolina

Eastside Pawn and Gun • Carthage

Texas

Virginia

T-N-T Pawn • Bonneville

Frantz Diamonds & Jewelry • Roanoke

The Gold Mine Pawn & Gun • Laurel

Apprentice

Missouri

John Krause • Creve Coeur, MO

Shop ‘n Pawn of Independence, Inc • Independence

International

New Jersey

Industry Partners

Palisade Jewelers Inc • Englewood

IIDV, Inc • New York, NY

National Pawnbrokers Association

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4 Seasons Pawnshop • Surrey, BC Canada

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state news

State Association Updates State pawn news across the nation ALABAMA

Joey A. Holley, President Alabama Pawnbrokers Association apa@pawnexpresstroy.com

In September, the Alabama Pawnbrokers Association held its annual fall meeting in Birmingham, AL. The main focus of the meeting was to discuss Military Lending Act (MLA) information. Fran Bishop is on our executive board and also on the NPA Government Relations Committee. She shared a wealth of information about MLA compliance. We are excited to announce that next year’s Dixie Conference and Trade Show will be hosted at Perdido Beach Resort in Orange Beach, AL, March 10-12, 2017. For more information about this event, go to DixieConvention.com. We look forward to seeing you there!

INDIANA

DELAWARE

Greg Engstrom, President

Scott Paulsen, Peninsula Pawn

Indiana Pawnbrokers Association gregengstrom@hotmail.com

scott@peninsulapawn.com

The incorporation packet is now correct and I have filed with the IRS to be tax exempt. My accountant has advised me not to recruit or accept any members until the exemption is granted, so that I don’t end up with any tax liabilities. While it isn’t exciting, it is moving forward. ILLINOIS

Kelly J Swisher, President

Illinois Pawnbrokers Association arlingtonloan@gmail.com

We can all agree that what we just witnessed with the MLA shows we need a presence outside of Springfield. Fortunately, we have the National Pawnbrokers Association (NPA). Last year, at the NPA Legislative Conference in Washington, DC, only two Illinois members attended. We need more people to get serious about

National Pawnbrokers Association

going to Washington this year. We may have many new lawmakers in office after the elections, and it’s imperative that we get to know and educate them so they can understand our industry. The Illinois Pawnbrokers Association (IPA) recognizes the importance of making sure our voices are not only heard in our state capital, but in our nation’s capital as well. To encourage your attendance at the NPA Legislative Conference in Washington on April 25-26, 2017, the IPA will reimburse each member who attends up to $300 per day with a total combined membership reimbursement of up to $3,000. This will cover the cost of your room. You will only be responsible for travel. This is the time to put it on your calendar. It is two days that could have a positive impact on your business forever.

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Indiana is one of the few states that does not allow loans on handguns. The Indiana Pawnbrokers Association has had our eye on this subject for more than 10 years, and we believe the climate is finally right to eliminate that ban. The process of changing state law is a long one, and after years of working behind the scenes, we believe we have the best chance ever of having the ban lifted. There seems to always be a threat to our industry in the various legislatures, and Indiana is no different. There are many localities that are placing very restrictive and, in some cases, illegal holding times, automatic forfeitures, and other zoning issues that are a restraint of trade. The next Midwest Pawnbrokers Convention is coming up fast. It will be held May 5-7, 2017, at the Franklin Marriott Cool Springs in Franklin, TN.

state news

NEW YORK

Eric Modell, President

Collateral Loanbrokers Association of New York eric@modellfinancial.com

The war continues to rage in New York, and I am happy to report that the pawn industry is winning. You may recall that the New York City Department of Consumer Affairs, the pawn licensing agency, issued about 100 subpoenas to different pawnshops in late 2015, demanding that we provide all our books and records for the entire year. Many of us banded together and challenged the subpoenas in court, seeking a motion to quash. Ultimately, before the judge could hand down a decision, the city withdrew their subpoenas against all those who were opposing them. While it would have been nice to have had a judge’s decision on our side clearly stating that the city did not have the authority to subpoena all our records, we consider this a victory nonetheless. This speaks to the power of our voice when we, the pawn industry, stand together as one! Additionally, we are still in the middle of a second lawsuit against the city whereby we are seeking an injunction prohibiting the enactment of a law that requires (among other things) data submission to LeadsOnline. To date, the judge has agreed with our arguments, and the case is now at the appellate level. Our counsel is finalizing a 60-page reply brief to the city’s motion to vacate the preliminary injunction. Our deadline for submission is October 19, 2016, with oral arguments currently scheduled for November 29, 2016. Hopefully, in the next publication, we will have more good news! OHIO

Lou Tansky, President

Ohio Pawnbrokers Association lou@unclebenspawnshop.com

We held our semi-annual Ohio Pawnbrokers Association (OPA) Membership and Continuing Education seminars in Columbus on Sunday, September 25, 2016. The event was well attended with 120 people representing over fifty stores. The bulk of the meeting mirrored the primary seminar of the day, the Military Lending Act

(MLA). Jackie Mallett, of the law firm Bricker and Eckler, has become somewhat of an expert on this subject and presented on the topic. She has presented to other pawnbrokers’ associations across the country as well. Pawnbroker compliance with the MLA began on October 3, 2016. While there is some confusion about exactly what we need to do, the basics are fairly understandable. Pawnbrokers may not charge in excess of 36 percent Military Annual Percentage Rate (MAPR) for any pawn made on, or after, October 3, 2016, to any active-duty military member, their spouse, or their dependents. To confirm if one is an active-duty military member, spouse, or dependent, the pawnbroker must run the name, date of birth, and social security number through the Department of Defense MLA website. This is a fairly easy, albeit time-consuming, process as all information must be manually entered and verified prior to the pawn transaction. Keep in mind that the MLA verification process is just one part of the procedure. After the pawn is made, pawnbrokers must file and store all paperwork in a secure location for a period of five years. Additionally, all pawnbrokers must have a MLA compliance manual and a written set of policies and procedures. Licensees are subject to inspection by the Ohio Department of Commerce, Division of Financial Institution inspectors. Make certain that you understand how to properly confirm your customer’s military or dependent status, file forms, and possess and maintain all necessary paperwork. We have heard the state Division of Financial Institution (DFI) examiners will begin verifying compliance in a few months. If you have any questions or comments, please feel free to contact me or any of your OPA officers or board members. OREGON

Beth Anundi, Secretary

Oregon Pawnbrokers Association Capitalpawn1@gmail.com

At the Oregon Pawnbrokers Association (OPA) meeting in June, a new board was selected:

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National Pawnbrokers Association

state news

our President is Josh Oller of Silver Lining in Portland, Vice President is Josh Poling of Cash Connection in Medford, Secretary is Beth Anundi of Capital Pawn in Salem, and Treasurer is Randy Stormberg of Bend Pawn in Bend. The new board has elected to represent the state by area. Any member of OPA may contact any board member, but each board member works within a certain area of the state to best help OPA members. The new board is creating an Oregon Pawnbroker website and has recently established a Google Group they can use as a sounding board for comments and concerns of the OPA members. Currently, and leading up to the 2017 legislative session, the OPA will work to allow the Reminder Letter for loans over $500 to be sent via mail, email, or text message, and will seek Department of Consumer and Business Services (DCBS) and Oregon State Police written approval to capture

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thumbprints on the back of the 4473 forms. The board is actively seeking to bring vendors and partners to the association who can better serve our industry. In 2016, the OPA, with the help of their lobbyists, was successful in driving the following changes: increased maximum Storage Fee from $100 to $250, increased maximum Setup Fee from $100 to $250, eliminated requirement to send the Reminder Letter via Certified Mail, and obtained approval of electronic reporting to local law enforcement for firearms transactions for private citizens. Additionally, in 2016, the NPA recognized two Oregon pawnbrokers at Pawn Expo in July. Earl Oller of Silver Lining Jewelry & Loan received the Charles R. Jones Lifetime Achievement Award posthumously. Maria Lucero of Capital Pawn was recognized for outstanding service to our industry.

social media

(From page 22)

Beginners Guide to Twitter

platform. You may have heard these words and wondered what they mean, or they may be completely foreign to you. Either way, a basic understanding of the definition and usage of these words is vital when it comes to using this form of social media. Handle (@): A Twitter handle is another word for your username. It is how you are identified on Twitter, and is always preceded immediately by the “@” symbol (i.e. @PawnTweet). Tweet: A tweet is the information that is shared. It’s comparable to a Facebook status or an Instagram post. A tweet can contain up to 140 characters of text, as well as photos, videos, news links, or other forms of media.

Mention: Mentioning other users in your tweet by including the “@” sign followed directly by their username. Users are notified when mentioned. It can be used as a way to have ongoing discussions with other users. Quote Tweet: A way to retweet where a user can include their own comments along with the original tweet. Direct Message (DM): A private Twitter message sent to one of your followers. Direct messages can only be sent to a Twitter user who is already following you, and you can only receive direct messages from users you follow.

Retweet (RT): A tweet that is re-shared to the followers of another user’s account.

Hashtag (#): A word or phrase that is preceded by the “#” sign. When you click on a hashtag, you’ll see other tweets containing the same word or phrase. For example, if you were to tweet: “I can’t wait to watch this matchup. It should be a great game! #TCUvsSMU”, the hashtag #TCUvsSMU will make sure that everyone following that hashtag will see your tweet even if they are not one of your followers. They can respond with their own opinion, retweet you, or keep reading the rest of the tweets containing that particular hashtag.

Timeline: The real-time stream of tweets that can be seen on your homepage. These tweets will come from the people you are following.

Now that you have the basic how-to, you should be able to start tweeting, retweeting, and hashtagging like a pro. #TwitterChampion

Follow: Subscribing to a Twitter account is called “following”. By following another user, you will be able to see all of the content on their profile. Tweeps: A person on Twitter who you, or your business, are connected to.

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National Pawnbrokers Association

pawnder this

The Importance of History My business partner and I decided

to conduct an experiment with a couple of our younger staff members. Both of these fellas are in their early 20s and whip-smart when it comes to getting their jobs accomplished. So, although we held out hope they’d do well on our little test, we definitely had our doubts. The question: If I give you four hints, could you name one of the most famous historical figures of the 20th century? int #1 – He was an overweight foreign leader H now long deceased. Hint #2 – He was a leader in Great Britain. Hint #3 – He enjoyed brandy and cigars. Hint #4 – Along with President Franklin D. Roosevelt and Soviet leader Joseph Stalin, this man was the third leader of the Allied Forces during World War II. Crickets. Questioning looks. That’s all we got from both of these college graduates! So, no, neither of our staff members knew we were referring to Winston Churchill, arguably one

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of the most important people in the history of the world. Certainly the portly dude is top three of all time in the history of Great Britain. Not surprisingly, both of them shrugged it off and went back to updating their stories on Snapchat. The American Council of Trustees and Alumni (ACTA) released the results of a 2014 survey that found only slightly more than half (54 percent) of those who took a multiple choice quiz knew that Dwight D. Eisenhower was the supreme commander of Allied forces on D-Day. Fewer than half knew FDR was president and 15 percent identified the location of the landing as Pearl Harbor, not beaches named Utah and Omaha. One in 10 college students was among those giving the wrong answer. Colleges and universities clearly are not teaching what they once did. That is also apparent in the ACTA survey, which found that 70 percent of recent college graduates knew D-Day occurred during World War II, compared to 98 percent of college graduates 65 and older. Yeah, yeah, I know. I’m officially the old guy

BUSINESS SOLUTIONS

(From page 47)

How to Handpick Your Best Candidate Find Out Where Your Ideal Candidates Live

Identify what your needed candidates read; notice the websites they visit; study the listservs on which they participate; determine the industry magazines and newspapers they read. Identify their favorite news sources, forums, discussion group threads, and places to network. In other words, find out everything you can about the types of people who make up the top ten percent of your current employees and the best of your talent pool. Use this information to screen resumes, of course, and to develop effective interview questions. Most importantly, use this information to develop creative, fun recruiting strategies for your potential openings. Publicity

The publicity your organization receives in the

“ Finding employees always seems to be a challenge for a lot of us. We use Indeed.com and try to proactively recruit someone who gives us good customer service.” Gina Barkan, A Pawn USA, LLC

news media, in print, on television, on the radio, and online is tremendously important for recruiting. A few good words, an interesting article, or a piece about your mission that reflects your organization in a favorable light, will result in candidates coming to you.

pawnder this who yells at kids when their baseball goes into my backyard. Actually, I’m not even close to that guy. But I did grow up with an appreciation and intense interest in history. And I really don’t understand why so many young people today don’t know and – worse yet – don’t care about history. Of course, you’d think my own kids would be well versed on world and American history because they couldn’t escape my constant reminders of important anniversaries, dates, battles, wars, etc. Well, you thought wrong. Despite my love of history, my two kids are boneheads when the subject comes up. Not that I haven’t tried. I’ve made it an annual tradition to help them understand the importance of December 7th, the true meaning of the 4th of July (it’s not just a mattress sale!!), D-Day, Labor Day, and practically every historical person I can remember. Despite all that, I’m pretty sure my 12-year-old son couldn’t tell you the difference between General Patton and Oliver North. Yes, it’s depressing. And maddening.

They’re not bad kids or dumb kids for not knowing or caring about this stuff. But I need your help. Let’s make a pact that we talk to our kids at least once a week about the following historical events and landmarks: • The Civil War took place AFTER the American Revolution. • World War II happened AFTER World War I. • Albert Einstein was the most important person of the 20th century. • Hiroshima. Selma. Baghdad. The Berlin Wall. Learn the significance of each one. • Know every President from Kennedy to present day. • Pearl Harbor and December 7 (they are important!) • And, yes, teach them about Winston Churchill, so later in life, two old guys in their office won’t be driven to drink brandy after talking with them. Rudy J. Klancnik writes for fun, sells stuff for a living, and cheers for any team playing Ohio State or the Yankees.

WINTER 2016

National Pawnbrokers Association

calendar of events

Index of Advertisers

March 2017

DIXIE CONFERENCE AND TRADE SHOW March 10-12, 2017 Perdido Beach Resort Orange Beach, AL Contact Rosemary Hipps: Larrysjp@comcast.net

ADVERTISER Page

3 CLiCk Media (212) 365-0691 3ClickMedia.com

International Gemological Institute Inside Front Cover igionline.com

North American Metals 7 (800) 773-1626 northamericanmetals.com

Aagam Creation LLC (248) 961-0506

Bluestone Trading Company Inc Back Cover (888) 800-BLUE (2583) bluestone-trading.com

April 2017

Bravo Pawn Systems (888) 407-6287 bravopawnsystems.com

2017 NPA LEGISLATIVE CONFERENCE April 25-26, 2017 The Hamilton Crowne Plaza Washington, DC Contact Dana Meinecke: Dana@National Pawnbrokers.org

Burrell Printing (800) 531-5234 burrellprinting.com

May 2017

The Buyers (562) 945-7276 thebuyers.com

Dillon Gage (888) 436-3489 dillongage.com

Firerox 51 (213) 624-1111 firerox.com

MIDWEST PAWNBROKERS CONVENTION May 5-7, 2017 Franklin Marriott Cool Springs Franklin, TN Contact Ron Stempkowski: 1ipa@comcast.net

Garrett Metal Detectors 33 (800) 527-4011 garrett.com Geib Refining (800) 228-4653 geibrefining.com

July 2017

Gemological Institute of America (800) 421-7250 gia.edu

PAWN EXPO 2017 July 18-20, 2017 The Mirage Hotel and Casino Las Vegas, NV Contact Lindsay Wilson: PawnExpo@ NationalPawnbrokers.org

Paysouth Merchant Services 23 (617) 578-9444 paysouth.com/partners/npa Rapaport Auctions (212) 354-9800 rapaportauctions.com

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

Stallcup Group (817) 479-3880 stallcupgroup.com Stuller, Inc (800) 877-7777 stuller.com

United Precious Metal Refining Co (800) 999-FINE (3463) unitedpmr.com

Wexler Insurance Agency Inside Back Cover (800) 432-1853 wexlerinsurance.com

Hi-Tech Precious Metals & Refinery 48 (866) 950-7528 hitechPMR.com Hoover & Strong (800) 759-9997, ext 164 hooverandstrong.com

Padmavati Exports 14 (212) 869-0544 padmavatiexportsinc.com

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

Worldwide Diamond (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

WINTER 2016

WEXLER INSURANCE AGENCY, INC.

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v And many more see back page

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