National Pawnbroker Magazine Summer Issue by National Pawnbrokers Association

OFFICIAL PUBLICATION OF THE NATIONAL PAWNBROKERS ASSOCIATION

People of Pawn 35 Years with Ben Levinson

Embracing Technology

A Key to the Ultimate Customer Experience

Value Selling

How to Sell Value Over Price

PAWN EXPO 2021 Where the Best Begins!

NATIONALPAWNBROKERS.ORG

SUMMER 2021

PAYING MORE IS YOUR BUSINESS...

...DELIVERING VALUE FOR LESS IS OURS.

YOUR MONEY, YOUR CHOICE.

C O N T E N T S

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COVER: Pawn Expo 2021, Where the Best Begins!

NATIONAL PAWNBROKERS ASSOCIATION | SUMMER 2021

Letter From the President Message From the Executive Director Board of Directors Npa Goverment Relations Cliff Notes: NPA Pawn Industry Facts Top 10 Reasons to Join NPA Calendar Of Events Embracing Technology Value Selling Welcome New Members Pawnshops Eclipse National Minimum Wage Buying Guide PR Tips For Tv State Association Reboot Pawn Expo State Association News People of Pawn

LETTER FROM THE PRESIDENT

PART OF SOMETHING SPECIAL AS I WRITE THIS, things are beginning to feel and slowly become more “normal” as we recover from a worldwide pandemic and the most difficult year many of us have endured in our lifetimes. I think it is incredibly important to acknowledge those we lost through this difficult journey because as a unified network of pawnbrokers, there is something very special about this industry and those who commit their lives to it. I have heard hundreds of times over the years at numerous events I have attended this industry is like family. This means the losses run deep and are felt by many. On behalf of the NPA and our entire Board of Directors, please know we work here to serve this industry we care so deeply about. That begins with each and every one of our members, so we wish you well and hope this next year brings good health and prosperity to all. We, as a country, are beginning to move around and travel more freely and it was evident at a recent event I attended. I was thrilled to visit with and shake the hands of fellow pawnbrokers at the TAP (Texas Association of Pawnbrokers) Convention in Houston mid-April. It is always great to see and learn from my fellow Board Members, friends, colleagues and

new acquaintances at these events. I value every opportunity to speak with our NPA members face to face. It seems every one of them has a unique story to tell, and I find myself inspired over and over again just by listening. I also admit I was encouraged to hear repeatedly that both pawnbrokers and vendors were planning to attend “National Expo” this year. I know our team at the NPA is hard at work assembling the very best show we can for you. There is work to be done, and learning to do as an industry in this “post-Covid” world. Will our businesses change permanently in some ways requiring us to “pivot and reinvent” as Jeff Wilhelm will discuss in his seminar at Pawn Expo? How can each of us as pawnbrokers continue to compete in this world of eBay, Facebook Marketplace, Craigslist and Amazon? Our Keynote Speaker, Bob Phibbs, will address this important subject with us. One of the things I was reminded of at the TAP Convention this year is the importance of having an open mind and realizing there is always an opportunity to learn something new. That is what these conventions are all about - learning and growing and finding the people who can help you achieve it. There is not a pawnbroker in our association who is above learning and growing. I encourage you to do that with your entire team when you join us at Pawn Expo. We are part of something special in this industry. We are successful independent business owners who do well and take care of our families. We also have big hearts and good intentions. We love and support one another in every way we can. I have been incredibly proud to serve as your President for these last two years for this very reason. Thank you for having faith in me and trusting me to lead this great Association. I look forward to seeing you all very soon. Until then, take care and be well.

Sincerely, Kerry Rainey NPA President

NATIONAL PAWNBROKERS ASSOCIATION | SUMMER 2021

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MESSAGE FROM THE EXECUTIVE DIRECTOR

SEE Y’A LL AT THE PAWN EXPO! IT IS WITH GREAT ANTICIPATION, and a glass half full, I confidently tell our members when I am asked, “YES, I think the 2021 NPA Pawn Expo Convention this year is going to be extremely well-attended and deliver more bang for the registration dollar than ever before.” Why do I feel this way? Many reasons… Rock solid programming. Our goal this year at Pawn Expo is to deliver a program that will motivate, inspire, and help you understand the need to rethink the way you do business in 2021 and beyond. As politics, the economy, Coronavirus relief funds, regulations, technology, and so many other factors affect the pawn industry, how do you act and react as a business owner? At Pawn Expo, you will have high-level conversations with the best in the business about the real-world struggles you are having every day. Uninterrupted exhibitor time with valued Industry Partners on our expansive show floor is another

reason to join us. We are thrilled to welcome back some vendors who haven’t participated for a few years. We are also super pleased to have close to 15 brand new vendors joining us on the show floor this year. Jody Kudless, NPA Business Development Director, is still speaking to vendors interested in participating, and your NPA team is working on even more. We are doing our very best to mix it up for you! Networking! It has surely been a loooooong year of not being able to get out there and hang with your people. I feel confident our pawn community is feeling comfortable and READY to say “SEE YA” in a big way to the past year. I vote that the NPA does this officially at Pawn Expo. I think it is really important to acknowledge what an incredibly difficult time so many of us have had for so many different reasons. It is also important to grow and learn from those experiences, so we can do better and be better – both individually and as a community of pawn. And last but not least, let’s not forget the FUN! We decided to bring lots of that back this year because…well, because we happen to be super fun people. Also, from what I have seen over the last year, our members are some of the hardest working people I know. They are doing good business with, and for, good people every single day. I do believe a bit of fun is in order! Anyway, have you never been to the Pawn Expo? Make THIS the year you join us. Step out of your comfort zone. Challenge yourself to learn something new. Network and affiliate with your industry peers… and bring cash if you plan to stay off the bull! Need I say more?

Book your room, book your flight and register today! Absolutely my best, Kristen Williams Executive Director

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NATIONAL PAWNBROKERS ASSOCIATION | SUMMER 2021

SPONSORED CONTENT

PAWN INDUSTRY FACTS

Whether you like it or not, compliance is here to stay.

Use these pawn industry facts when talking to your local lawmakers or the media. They highlight the unique role that pawn plays in the community.

1. Pawn transactions are the oldest form of regulated consumer credit and are governed by 14 federal statutes and regula-tions, as well as numerous state laws. 2. Pawn stores are the neighborhood financial institutions serving more than 30 million consumers nationwide. Pawnbrokers offer short-term loans based on pledges of tangible personal property that remain in the pawnbrokers’ possession throughout the term of the transaction. 3. There are approximately 10,000 pawn stores in the U. S., consisting primarily of small, independent business owners. 4. Pawn consumers tend to borrow only what they need as evidenced by the relatively low national average loan amount of$150 and the correspondingly high national loan repayment and collateral redemption average of 85 percent. 5. Pawn transactions do not affect consumers’ credit scores or put them at risk of litigation to enforce debt repayment: a. Pawnbrokers do not conduct credit checks on consumers – lending decisions are made on the basis of collateral value alone. b. Pawnbrokers do not report their credit experiences with consumers – if the consumer does not repay the loan within the statemandated time period, the consumer forfeits the Collateral without any further recourse.

NationalPawnbrokers.org

c. Pawnbrokers are not allowed to demand repayment of the funds advanced to consumers. 6. Alternatives to the regulated pawn industry include: a. Getting loans from unlicensed lenders of questionable repute, or b. Selling to second-hand dealer’s tangible personal property currently serving as pawn collateral. Second-hand dealers are not regulated in most jurisdictions. Sales of tangible property generally produce lower cash amounts to consumers, diminish total personal assets, and reduce household wealth.

BY DAVE GRIFFITHS THE CONSULTANTS

7. The cost of providing this secured credit to consumers includes some of the following: a. Storage: Approximately 2/3 of store area must be dedicated to storing collateral of customers. b. Insurance: Cost of insurance coverage on collateral to cover loss or damage to property in the event of a fire, etc. c. Security Systems: Providing systems to further protect the property/collateral. The pawn industry is an important and much desired lending option for millions of Americans from all walks of life. It is important that the industry is allowed to continue offering this service to protect a vital form of non-recourse safetynet lending and provide consumers with a longstanding, regulated source for meeting the small, short-term credit needs of the community.

COME SEE M E AT B O OT H 5 1 2 AT PAW N EXPO!

JUST WHEN IT SEEMS LIKE YOU FINALLY HAVE THINGS UNDER CONTROL, they change. Sometimes, things stay the course for long periods of time, and sometimes they change in the blink of an eye. This can be very frustrating, and I want you to know that we can help! There is no shortage of competent consultants that specialize in operations in our industry. They advertise all over the place, and you’d have to be blind to miss them! However, we are different! We are the ONLY consultants in the industry that specialize in compliance strictly from the pawnbroker’s perspective. Nobody else brings practical pawnshop ownership experience to the compliance table Nobody! Our job is to make the compliance you hate become an obstacle that is easily tackled. We know because we worked in the trenches just like you. We know what is important to you, and that is to cover all bases quickly and simply so you can focus on what you do best. Partnering with us is simply the smartest thing to do when it comes to any of your compliance needs. Whether you like it or not, compliance is here to stay. How you address that will make a huge difference in how your future dealings with your bank or the IRS turn out. Those who deal with this stuff proactively ALWAYS find that this was easier than they thought and sleep much better once the preliminary work is done. The overwhelming majority of our customers spend less than 10 minutes a month addressing compliance, and yet, remain fully compliant! • We teach them how to cover every base with simple monthly internal monitoring documents.

• We offer comprehensive online training for $29 and $39 for their staff and compliance officers. The training covers more than they get with other AML training programs. We cover ID theft, Truth in Lending, and MLA, on top of the standard AML items at no extra cost! Training can be stopped and started as often as needed and results in a certificate to prove completion. • We remind them of all deadlines, so they are not left wondering if they are missing anything. We won’t let them forget! • We provide required updates to their custom AML programs at no charge. • We strive to be in every one of their stores every year when we perform the independent reviews necessary for compliance. (Sometimes geographic limitations require remote reviews, but we try to make that the exception.) • We are certified by the Independent Community Bankers of America. Who better to have develop your custom compliance program than us? We know exactly what the bank looks for, so we address it right up front. We have NEVER had a bank turn our product down. • We are fluent in their pawn software! We identify the best reports for them to run so they don’t have to figure it out on their own. So, what are you waiting for? Isn’t it time you gave us a call? You’ll be glad you did! Call me to discuss at 503-970-7739.

(817) 337-8830 SUMMER 2021 | NATIONALPAWNBROKERS.ORG

STRENGTH IN NUMBERS

Another Store Sold! Stallcup Group facilitates the sale of an independent company in Missouri!

January 2020: Stallcup Group, Inc., an Exit Strategy Consulting firm, announced its successful facilitation of the sale of American Gold Mine, Inc. AGM, Inc. is an independently-owned business comprised of one pawn shop located in Missouri. Stallcup Group served as the exclusive financial advisor to the seller in this highly successful transaction.

Stallcup Group’s thorough analyses of the seller’s financial data, and the unique attributes and characteristics of both the company and individual store helped ensure their client achieved all of their selling goals. Here is what other clients of Stallcup Group have to say about their successes:

NPA 2021 LEGISLATIVE CONFERENCE & BOARD MEETING SEPTEMBER 27-28, 2021 SEPTEMBER 27 - NPA BOARD OF DIRECTORS MEETING SEPTEMBER 28 - LEGISLATIVE CONFERENCE

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“I highly recommend Stallcup Group to sell your business. They act as though they are my business partner. They helped navigate, at times, very treacherous waters and ultimately closed the transaction on my business and building lease. Stallcup group always had my best interest at the top of their agenda. They are second to none with their negotiation and closing process.” – Dennis Kovac – President, American Gold Mine, Inc. “Ultimately, I was most impressed with Stallcup Group’s financial modeling, which is extremely sophisticated, and their ability to package information in a way that buyers want to see.” – Craig McCall, 12 stores AZ/NV

VISIT US AT PAWN EXPO 2021 — BOOTH 404

WhyStallcupGroup? We have more than 34 years of experience in the pawn shop industry and have closed over $245M in transactions since founding the business in 2009. We are the leader in Exit Strategy Consulting, and solely represent pawn shop owners. All Stallcup Group’s clients have realized a purchase price increase of 10-50% from initial offer to final closing price.

Steve Stallcup

steve@stallcupgroup.com

817.479.3880

STALLCUPGROUP.COM

CALENDAR OF EVENTS

TOP 10 REASONS TO JOIN NPA July 10-13

1. Add your voice to a nationwide coalition led by NPA government regulation experts who monitor and fight for pawnbroker rights at all government levels every single day.

NPA Pawn Expo Omni Fort Worth, Fort Worth TX

September 6-8, 2021

2. You are instantly alerted to any federal or state legislation that will affect your business, so you can take action.

Dixie Pawnbrokers Conference & Expo Perdido Beach Resort, Orange Beach, AL

September 27, 2021

3. Boost customer trust in your business by displaying “NPA Member” on your store, website and materials.

4. Be more visible to your customers with a listing in the NPA-sponsored consumer-facing website “PawnFinders.”

5. Association discounts on things that help you run your business, including healthcare, insurance and more.

6. Member discounts for the annual Pawn Expo event, so you can meet other pawnbrokers, attend educational events, shop for vendors, and have fun!

NPA Board of Directors Meeting Washington, DC

September 28, 2021 ABOVE: Perdido Beach Resort, Orange Beach, Alabama. BELOW: Washington D.C.

NPA Legislative Conference Washington, DC

October 22-24, 2021

CAPA Convention and Exposition Omni Las Palmas Resort and Spa, Rancho Mirage, CA

February 18, 2022

Texas Association of Pawnbrokers Convention Houston, Texas

7. Exclusive member discounts/incentives from NPA Industry Partners, who sell the equipment, software, and services that you need to run your successful pawn business.

8. Keep up with news, trends, and the pawn network through the quarterly National Pawnbroker Magazine and weekly This Week in Pawn email newsletter.

9. Network, ask questions and solve problems, for and with, your fellow members by using the NPA members-only confidential digital forums.

10. Use the extensive member library for training, education and tools to grow your knowledge and business.

Email info@nationalpawnbrokers.org for More Information or Apply Today

NationalPawnbrokers.org (817) 337-8830 22

NATIONAL PAWNBROKERS ASSOCIATION | SPRING 2021

SUMMER 2021 | NATIONALPAWNBROKERS.ORG

media are evolving in ways that benefit every business. Gone are the days when the one “techie” thing you needed was a website. Now, in order to compete, your need list includes (but DEFINITELY not limited to): • A Facebook Business page • Options to buy online • E-mail and text marketing campaigns • The ability to track your online reputation • Smartphone apps All of these touch points need to be supported by the same impeccable customer service you would give your customers if they were standing in your store.

EMBRACING A K E Y T O T H E U LT I M A T E C U S T O M E R E X P E R I E N C E BY MARK CAMPANALE

WALT DISNEY FAMOUSLY SAID: ‘Disneyland will never be completed. It will continue to grow as long as there is imagination left in the world.’ While the most progressive medium in his day was the newspaper, Disney knew that change is constant; if you fail to adopt new and progressive business practices, you will surely get passed by those who do. When you offer the best customer service in your store and your online channels don’t offer the same experience, your customers (and future customers) will find someone who does. CATALYST FOR CHANGE As a Customer Experience Instructor with Disney 24

NATIONAL PAWNBROKERS ASSOCIATION | SUMMER SPRING 2021 2021

University, I focused on training Cast Members of all ages in the power of delivering the ultimate customer experience. A large part of my course centered around embracing technology. Disney is always one step ahead of the competition with being both high-tech and high-touch. Unless the Cast Members truly owned that powerful combination, there is a disconnect with the customer experience. So, Disney’s words weren’t simply prophetic, they were a catalyst for embracing change. “But I’m a small business owner. What do the business processes of a multi-billion dollar company have to do with me?” The answer is EVERYTHING. It doesn’t matter what size your business is. Technology and social

THE FOREST FOR THE TREES At this point you may be thinking, “Where am I supposed to find the time and resources to do all of this?” Throughout my public speaking career, I’ve spoken with hundreds of small business professionals about social media, technology, and their involvement. Before we get too deep into the conversation, I always ask, “Can I get a show of hands of who is on (Twitter/Facebook/LinkedIn, etc.)?” The forest populates with just about 100% of attendees’ arms waving in the air. I then ask, “Who uses online apps for making purchases? Texting? Online customer service?” The forest remains healthy. Then, there’s the follow up: “Keep your hands up if you are using (Twitter/Facebook/Linkedin, etc.),”and the forest becomes sparse with a few saplings (i.e., arms half raised). Then, little chuckles spread from the audience (as in, ‘hey, I’m not alone!’). The discussion deepens when we discuss THE WHY: Too busy, too time consuming, our customers don’t want these things, etc. The reality is that they are too busy working IN their business, rather than working ON their business. They are so wrapped up in the day-to-day mundane processes, they don’t see tech and social media as paramount to delivering the ultimate customer experience. Consumer purchasing behavior is changing rapidly. In a post-pandemic economy, your customers have become accustomed to making their purchases online. While a great experience at your physical store is extremely important, you now must match that experience digitally. A recent online shopping survey by Brizfeel.com* of 30,000 participants produced the following results: • 57% of consumers prefer to shop online • 92% of consumers said they shop online at least once a year • The mobile phones are the top platform used for online shopping • 93% of mobile consumers said they prefer to shop online using mobile shopping apps instead of the mobile browser • And my favorite:The top factor that drives customer

loyalty for online consumers is customer experience A CLEARER PICTURE With this data in mind, we can better understand the flow of consumer purchase behavior. Your current and potential customers now have unlimited online options to make their decision prior to purchase: • They will search online for products or services • They will ask their friends on Facebook, Twitter, Instagram, etc. for suggestions • They will read reviews and compare companies • They will use online chat to ask questions • They will search for company apps for online shopping • They will compare, share, and critique experiences EVERYWHERE They will engage in all of these behaviors and more, without stepping into your store. This is a lot of information to digest and process, never mind act upon! Although daunting: ROADMAP TO SUCCESS We all need somewhere to start. Here are 5 steps you can take today to begin thriving in today’s digital economy. 1. Acknowledge your own purchasing behavior. Start to take note of the flow of your own purchase process. How do you search for a product? Who do you ask for suggestions? What do you do when you don’t receive exceptional customer service (online or in-person)? And, how does your purchasing behavior compare to your business practices? 2. Own your online brand. Your presence online IS your reputation. If your Facebook business URL is Facebook. com/a-bunch-of-random-numbers and characters, change it to your business name. 3. Do online searches for your company. Go on Google Business (and other review sites) and claim your business. Start asking customers to post online reviews. 4. Reserve your seat at the online table. Go to the top social mediums (Facebook, Twitter, LinkedIn, Instagram, YouTube, etc.) and create a business profile - but don’t post anything! 5. Get to know your new online persona. Before you begin posting, start to explore the apps. See what other similar companies are doing. Take note of what you like and don’t like. Start to draft your own roadmap and visualize what your presence will look like. THE TAKEAWAY Without a proper starting point, it’s extremely easy to get lost. With this roadmap completed, you will start to see a clearer picture of your path, and how to begin your journey. Mark Campanale is the NPA Digital Media Manager and has spent 28 years championing the customer experience in both the financial and entertainment industries, including Disney. SUMMER 2021 | NATIONALPAWNBROKERS.ORG

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VALUE SELLING IS, AT ITS HEART, the moving of more merchandise. No matter how many facts you know about a product, if the consumer doesn’t see the value in owning it, they’ll pass on it. That’s why selling on value over price is a common theme in all sales training programs and the key to providing great customer service.

VALUE SELLING HOW TO SELL VALUE OVER PRICE

BY BOB PHIBBS, THE RETAIL DOCTOR SALESRX ONLINE RETAIL SALES TRAINING

VALUE VS. PRICE What are the most important distinctions between value and price? The price tag is what someone will pay for a product or service. The value is what a consumer perceives as the benefits they will get from it. It goes far beyond psychological pricing of an item at $99.99 versus $100. When salespeople mention how a product is lightweight due to the material, or how durable an item is and less likely to break, or how stains won’t set due to the premium fabric finish, those are all value statements. Those products and services give the buyer something easier to lift or lighter to wear, something that lasts longer or looks new longer. If those qualities are important to a potential customer, they will buy it. Customer perception of a product’s value is everything. How do customers perceive value vs. price? Many shoppers and poor salespeople absolutely equate price with value. They believe falsely that getting a low price means it is a great value. As anyone who has ever purchased based solely on an extremely low price, or has purchased something they didn’t really need just because it was cheap, will tell you, they feel like they wasted their money. That’s because they realize as soon as they get it home that the product wasn’t worth what they paid for it. And what makes value distinct from price in customers’ minds? Value will always be personal and different for everyone. For example, a father may purchase a security system with extra features because he hopes it will give him peace of mind when he is traveling away from his family. A baker may purchase a high-priced flour for their rustic breads because they value the consistent results over the cheaper alternatives. That’s why it is so important to look at selling value over price as a truly personalized approach to increase customer service and also profit. IMPORTANCE OF THE VALUE OF A PRODUCT Why should the value of a product be more relevant than its price? The old idea is that you think about price just once, but you enjoy the value of using the product for a lifetime. More expensive products will not need to be replaced as often becoming less expensive than ones you have to replace over and over again. How can you set the value of a product? When a salesperson is qualifying a customer and asking about their project or problem, they need to understand what pain points are most important to that shopper. When that salesperson selects an item based on solving the shopper’s needs and removing those pain points, they should mention

NATIONAL PAWNBROKERS ASSOCIATION | SUMMER 2021

three ways a product is right for that specific customer. A shopper who sees how a product will solve all their needs and then some, will move heaven and earth to buy it. How is your brand strengthened by treating your products as though they are valuable rather than expensive? When you see your merchandise as valuable, you can convince consumers that purchasing it is an investment, and not an expense. For example, a good pair of shoes can have the soles replaced. A cheap pair is disposable. A custom jacket that costs more will fit better because the pieces are not cut en masse. HOW TO SEPARATE VALUE FROM PRICE What kind of products become more attractive when their value is separated from their higher price? Luxury brands represent increased value to a consumer. While a cheap watch will tell time, an Omega Seamaster will give a client a sense of pride in the craftsmen who made it. The engineer who values timeless design and meticulous precision will value products made the same way from fine jewelry, to fine footwear, to fine whiskey made in small batches. Professional salespeople know it takes a variety of sales techniques to connect the benefits of a luxury item to help a customer see the value of spending more money. Successful retailers use stories to separate value from price with their customers. They know details make stories stick. Because customers see in pictures, these retailers create compelling ones. Begin by coming up with key benefits of your more expensive products. Let’s say you carry a luxury fabric embedded with a chemical that doesn’t sun-fade. You could just say that to a prospective buyer, but that won’t help you get the sale or profit margin. But what if you actually had another customer with a west facing living room with floor to ceiling windows? What if she had told you she tried everything, but her furniture got so sun-washed she feared her friends thought she shopped at a garage sale? She wasn’t concerned with pricing; she was concerned with longevity. She used your fabric in red and now, four years later, it still looks like it did the day Architectural Digest shot it. Share a story like this when selling to your customer, and they will realize that if it worked for a stranger, it will work for them too. USE THESE 4 TIPS TO USE STORIES TO SEPARATE VALUE FROM PRICE: 1. Keep it brief. Your narrative should be less than one minute. 2. Be Authentic. Use a real story, either one you or a customer experienced or something you read about that actually happened to reinforce the value of what you are trying to sell to a customer. 3. Make it relevant. Make sure your story illustrates how one other customer received value after buying that same product. 4. State the point. Sum up the point in the end to show the customer standing in front of you that they’ll be happier SUMMER 2021 | NATIONALPAWNBROKERS.ORG

when they buy this product. In the fabric example, it could be, “If it held up under those conditions, you can rest assured it won’t fade like cheaper fabrics you’ve had.” What factors contribute to the value of a product? The way something is produced, the scarcity or limited availability of items, the rare materials it is made from, the sustainability, the ease of use, and even the status it imparts helps set value. HOW TO SELL A PRODUCT’S VALUE What can you do to make value appear significantly greater than price? Many employees know a great deal of technical knowledge about their more expensive luxury merchandise and are spilling more and more cold facts about a product in hopes they can build value in the customer’s eyes. But that’s only part of it. How many times have you purchased a TV, smartphone, camera, or appliance and never used many of the features? I’ll bet dozens. Something only has value if it does what you want it to do with a minimum of effort. Some people call this selling features and benefits. How does introducing an emotional component to the value of a product make it a more attractive purchase? As you build value, you can paint the picture of how the customer will feel wearing the item or how the gift-giver will feel knowing the merchandise does everything the recipient expects. How do customers perceive value vs. price? Many customers will balk at an item they don’t think is worth the price. The price of an item, in terms of actual dollars, becomes secondary to what the product can provide for the consumer. THE WEAKEST LINK Price is the weak link in the sales process. When salespeople harp on and on about how something is on sale or cheaper, all the customer can think about is the selling price and all the money coming out of their wallet. This distracts them from other considerations like the quality of the product and whether it will best serve their needs. A POSITION OF STRENGTH The easiest way to avoid this weakness is by putting your sales professionals in a position of strength with a sales process that builds value in your local market. Giving them the skills and knowledge to focus more about understanding, listening for, and observing unique buyer motivations is key. Armed with these tools, your salespeople can keep the conversation focused on benefits (value) instead of costs (price). MAKING EVERY SALE A VALUE SALE Customers come into your store with their own notions about the value of products. It could be based on a friends’ recommendation, a web search, or trending products they saw on social media. They may not want 32

NATIONAL PAWNBROKERS ASSOCIATION | SUMMER 2021

to buy high priced items because they don’t feel there’s a difference in quality or value. What they don’t have is the wisdom that sales training has given your salespeople. Using that wisdom of how products compare based on customer feedback and rapport building tactics, salespeople can show customers that there really is a difference between good, better, and best. GETTING IT TO WORK FOR YOU Value selling needs to occur every time a customer walks into your store and is engaged with your sales force. With the chance the shopper’s smartphone will beep, buzz or vibrate, there’s no time for winging it. Well trained salespeople will automatically rely on value selling in any sales situation, whether to your current customers or new potential buyers. To sell value over price, your salespeople will need to be examining the customers’ expectations and motivators to buy. Why, of all the days they could walk in, did they come into our store? Every bit of information the customer provides will help your salesperson create a narrative that connects the value of the product to the customer’s wallet. Once that connection has been established, the customer begins to see the product as an asset instead of a cost. AND YOU SEE THE TRUE ROI OF YOUR SALES TRAINING EFFORTS. To do that, your sales team needs to know how products are used in a variety of situations so they can match the value of the product to the needs of a wide variety of customers. They also need a strategy that shows them how to cross sell, or add-on, to every sale and increase the value of the original product well beyond the increase in price. That also increases the average ticket. In today’s marketplace there are plenty of vendors cutting corners with plastics, polyesters, and fillers. Your sales staff can help educate your customer about what goes into a premium item. Instead of a single, low profit margin sale, they can make a higher sale (upsell) to a customer who has a better understanding of the quality you offer. TAKEAWAYS Value selling starts with the customer, not the product. Create an effective description that caters to the customer’s values. Then tell a story that anticipates a customer’s concerns that it won’t do what they want it to do by showing in words how it provided value to another customer. VALUE-BASED SELLING SHOULD BE THE FOUNDATION OF ALL OF YOUR SALES EFFORTS. Establishing the value of your items and educating your customers about that value makes it possible to avoid the discounts that eat into margins. It puts your salespeople on strong footing, allowing them to deal with customers on the basis of product benefits as opposed to product costs. That’s called selling value over price.

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Total Payroll Per Full-Time Equivalent Employees Includes total compensation such as bonuses $37,810 $36,295

WELCOME NEW MEMBERS Advantage Pawn

Jorge Fundora

West Park

American Pawn of Ocala

Mike Porter

Ocala

Bernard’s Jewelers

Rob Furr

Grand Prairie

Bestway Pawn Mart

Dianne Mabry

Yakima

Casa Pawn

Mark Hachtel

Tucson

CenTex Pawn

Cody Lewis

Waco

City Pawn & Title Loan

Chris Horton

Carrollton

Devine Pawn & Gun

Joel Hefley

Devine

Fire and Ice Trading Co

Frank Nederostek

Marion

Gem Pawn Shop Inc

Craig Prather

Temple

Pelican Pawn & Jewelry

Jason C Sharp

Baton Rouge

JC’s Pawnshop Inc

Kim or Trel McRae

Mount Vernon

Jewelry & Loan Co.

Robin Price

Kannapolis

Lambert Pawn Shop

Jesse Farmerie

Whittier

Liberty Pawn

Aileen Lodes

Fairview Heights

Mo’s Pawn Broker

Isaac Moore

Lawrenceburg

Nikos Jewelry

Nickolas Christakis

Slidell

Pacific Pawn and Cash

Allen Riffe

Portland

Pawn Kings USA

Dean Stehlik

Seattle

Pawn USA

Scott Park

Des Plaines

Posh Pawn

David Brewer

San Diego

Quality Pawn & Sales

Cindy Murray

Milledgeville

Sacari

Michael Silver

Homosassa

West Miami Jewelry & Pawn

Jose Guerrero

West Miami

West Ridge Traders

Gary Palumbo

Rochester

Westminster Jewelry and Loan

Curt Chapman

Westminster

NationalPawnbrokers.org

PAWNSHOPS ECLIPSE NATIONAL MINIMUM WAGE FOR MANY AMERICANS getting by on the current federal minimum wage is almost impossible. To remedy that, President Biden recently signed an executive order raising the rate for federal employees to $15 an hour, almost double the Fair Labor Standards Act of $7.25 per hour. Where does that leave pawnshop owners? Looking good! In a recent 2020 Operating Performance Report, the NPA found that the average hourly rate, including bonuses, paid by most pawnshops comes in at little over $18.14, almost triple the $7.25 rate and well above even the new federal employee rate. This average rate is also higher than the highest rates of $13 per hour mandated by some states such as California. For pawn shops with more than $1 million in revenues, this rate rises to $18.90 per hour. When asked what incentives owners use to lure prospective employees, and keep them, more than 60 percent of the study respondents indicated that above market salaries, coupled with incentive compensation (65 percent) drive their recruit -ment strategies. In addition to salary and bonuses, almost half of owners provide healthcare and PTO/vacation days. Another more surprising result is that owners offer flexible scheduling. Almost half of the respondents indicate that they allow employees to tailor a schedule that fits the needs of the employees. How does this compare with non-pawn retail salaries? Working in a pawn shop is much more lucrative than working in any other retail store, according to the U.S. Bureau of Labor Statistics. The mean hourly wage for retail employees is $14.87. The average wage for shoe stores, clothing stores, jewelry stores, bookstores, sporting goods or hobby stores comes in at $13.81 per hour, and many of these stores do not offer healthcare or PTO. Pawnshop owners across the country have family businesses, many third and fourth generation, who treat their employees fairly and compensate them well above other retail stores. This points to independent pawn store owners, not only as competitive in the employment market, but also as leaders. They have gone out of their way to provide employees with above average compensation and benefits, when many other retailers have simply dumped employees, especially during the pandemic. While looking for new employees, make sure you stress compensation and benefits and any other perks you offer like flexible scheduling, profit sharing or signing/retention bonuses.

$36,295 $35,324

$34,921

$34,493 $33,632

All Reporting Organizations

High Profits

Under $750K

$750K to $1.0M

Over $1.0M

Less than 13%

Revenue per Store

Greater than 13%

Pawn Yield

Source: NPA 2020 Operating Performance Report

Top Five Pawnshop Benefits/Compenstation Percent of pawn owners are using a particular benefit or compensation

Incentive Compensation

65.4%

Above Market Salaries

63.5%

Added vacation days/PTO

59.6%

Flexible Work Schedules Added Medical Benefits

48.1% 40.4%

Source: NPA 2020 Operating Performance Report

Pawnshop Salaries Compared to Other Retail $13.21

Hourly Wage $18.14

$12.46 $13.79

$13.01

$16.15 $13.46

Pawnshops

Jewelry & Leather Goods

Clothing

Shoe

Sporting General Goods/Hobby Merchandise Stores

Book Stores

Type of Store

Source: U.S. Bureau of Labor Statistics

(817) 337-8830 SUMMER 2021 | NATIONALPAWNBROKERS.ORG

OUR INDUSTRY PARTNERS A BUYING GUIDE FOR NPA MEMBERS

BUSINESS/INSURANCE SERVICES Apperson, Inc. 562-356-3333 www.apperson.com Burrell Printing Co. Inc. 512-990-1188 www.burrellprinting.com Electronic Transfer Inc. 800-757-5453 mike@electronictransfer.com Flex Shopper LLC 855-353-9289 www.flexshopper.com Guns.com 320-309-3226 www.guns.com Leaderato 619-206-6984 yigaladato@gmail.com Jewelers Mutual Group/ Wexler Insurance Agency 305-445-5050 www.wexlerinsurance/pawnbroker.com Marshall & Sterling, Inc. 854-454-0800 www.marshallsterling.com McLarens 305-670-8591 www.mclarens.com National Shooting Sport Foundation 203-426-1320 www.nssf.org Numismatic Crime Information Ctr. 817-723-7231 www.numismaticcrimes.org Parcel Pro Inc. 310-328-8484 www.parcelpro.com Pawnbroker Financing 303-373-1300 www.pawnbrokerfinancing.com Pawnshop Consulting Group 954-540-3697 www.pawnshopconsultinggroup.com Pawn Train 904-343-9867 www.pawntrain.com Stallcup Group, Inc. Exit-Strategy Consultant 817-479-3880 www.stallcupgroup.com The Consultants LLC 503-970-7739 www.theconsultants.us Union Life Insurance 800-545-5624 www.pawninsurance.com COMPUTER SERVICES AND SOFTWARE Bravo Pawn Systems LLC 888-407-6287 www.bravorevolution.com Data Age PawnMaster 727-582-9100 www.dataage.com Pawn Guru 248-566-0097 www.pawnguru.com XcelData, Inc. 661-836-4065 www.xceldata.com DIAMOND BUYERS AND SPECIALISTS Aaria, Inc. 248-961-0506 aerj@aariadiamonds.com ABC Jewelry Inc. 586-354-7274 www.abcdiamondbuyer.com Adamas DMS 410-913-0300 www.adamas-intl.com Atish Diamond LLC 212-938-1005 shahatish@aol.com Bluestone Trading Co. 888-800-2583 www.bluestone-trading.com Diamonds and Jewelry Services 973-303-8389 ajaythakor@gmail.com DiaTrendz 213-622-6611 www.thetrendz.biz Di-Moksh Diam Inc. 213-623-4363 www.dimokshdiam.com FCP Diamonds LLC 617-851-6564 cliffrye2@gmail.com Firerox 213-489-7575 www.firerox.com Padmavati Exports Inc. 917-445-4383 padex.sun@gmail.com Palak Diam Inc 213-228-0077 www.palakdiamond.com R3 Diamonds Inc. 213-327-4691 r3diamonds@gmail.com Shri Diamond/ Jebel Gems 212-840-0650 www.shridiamond.com SimplexDiam Inc. 212-883-0888 www.simplexdiam.com Solitaire NY Inc. 212-354-5999 www.solitaireny.com Sparkle & Dazzle LLC 212-789-9088 www.sparklendazzle.com The Jewelry Group 732-770-2000 www.thejewelrygroup.com

NationalPawnbrokers.org (817) 337-8830

GEMOLOGIST EDUCATION Gemological Institute of America Jewelry Appraisal/ Gemological Institute

760-603-4000 844-452-7769

www.gia.edu www.jagilab.com

JEWELRY PRODUCTS AND SERVICES DRC Techno 615-492-1707 www.drctechno.com Edgewater Jewelry Group 305-373-8955 www.ewjewelry.com Kassoy 800-452-7769 www.kassoy.com Nikos Jewelry Inc. 504-512-1285 www.nikosjewelry.com Nisha Design Inc. 214-748-2288 www.mynisha.com Rapaport Group 212-354-9100 www.diamonds.net Stuller, Inc. 800-877-7777 www.stuller.com Times Past 713-256-3700 www.timespastcollections.com Watch Certification Services of America 415-994-6624 www.watchcsa.com Yehuda Company 702-523-6982 www.yehuda.com MARKETING, MEDIA, AND WEB DESIGN Advanced Media Advertising 805-637-5200 www.advertisingusa.tv National Pawnbroker’s Magazine 801-337-8830 www.nationalpawnbrokers.org Podium 801-503-8402 www.podium.com Today’s Pawnbroker Magazine 772-232-8888 www.todayspawnbroker.com MERCHANDISE/ INVENTORY CONTROL Goodwill of Indiana

317-524-4352

www.goodwillindy.org

REFINERY SERVICES AAA Precious Metals Inc 503-253-8591 www.aaametals.com David H. Fell & Co 415-815-9938 www.dhfco.com Dillon Gage Inc. 888-436-3489 www.dillongage.com Elemetal LLC 816-918-4421 www.elemetal.com Garfield Refining Co. 800-523-0968 www.garfieldrefining.com Geib Refining Co. 800-228-4653 www.geibrefining.com General Refining Corp 516-538-4747 www.generalrefining.com Houston Precious Metals 713-228-3931 www.houstonpreciousmetals.com Manhattan Gold & Silver 212-398-1454 www.mgsrefining.com Midsouth PM 800-895-1874 www.midsouthpm.com Mid-States Recycling and Refining 847-298-0010 www.midstatesrecycling.com Noble Metal Inc. 317-590-7138 www.noblemetalrefining.com Noble Metal Services 866-695-4806 www.noblemetalservices.com Pease & Curren Inc. 800-343-0906 www.peaseandcurren.com Precious Metal Refining Services 847-204-8115 www.pmrs-refining.com United Precious Metal Refining 800-999-3463 www.unitedpmr.com Williams Gold and Silver LLC 702-485-1414 www.williamsgoldandsilver.com SECURITY MJSA 508-316-2132 www.mjsa.org Retail Security Services 817-907-1778 www.retailsecurityservices.net Rolland Solutions 214-845-6805 www.rollandsolutions.com Southern CA Safe Co 323-724-5880 www.socalsafe.com STORE DESIGN AND EQUIPMENT Rack’Em/ Horizon Manufacturing

877-722-5369

www.rackems.com

WHOLESALE PRODUCTS Franzen International 201-405-2228 www.franzenintl.com Gunther Mele Pkg. 800-516-0108 dwhalen@gunthermele.com M & M Merchandisers 800-299-9035 www.mmwholesale.com Marque Luxury 949-212-4224 www.marqueluxury.com Radical Firearms 281-207-8788 www.radicalfirearms.com Technical Pro 732-237-6037 www.tpro.com Worldwide Diamond Co. 213-622-2191 wwdiamond@earthlink.net

PR TIPS FOR TV

AT SOME POINT IN YOUR BUSINESS LIFE, you will be called upon to talk to the press. Maybe you are doing a community project or charity event. Perhaps some big news about the pawn industry has come out and your local reporter wants your comments. Whatever the occasion, read these tips to be prepared for all types of reporter questions. QUESTIONS FOR WHICH YOU DON’T KNOW THE ANSWER “How many people pawn their wedding rings?” While there is nothing wrong with saying, “I don’t know,” consider telling them what you do know and respond with a positive answer. QUESTIONS THAT CALL FOR SPECULATION “So, what’s the bottom line? Are you going to be able to open a store or not?” Don’t take the bait! Stick with the facts, such as, “Well, we have great support from some of the city council members, and we are more hopeful than ever that we can get this passed.” QUESTIONS THAT ASK FOR YOUR PERSONAL OPINION “What do you think of the city council?” There’s no such thing as a personal opinion. The media will identify you as a representative of your business, as well as the pawn industry. Period. Nothing is ever off the record, so if you don’t want your opinions in the news, keep them to yourself. YES OR NO QUESTIONS “Don’t criminals pawn items they’ve stolen?” Say something like, “The pawn industry reports that less than one-tenth of one percent of all items pawned are ever reported as stolen. Also, pawnbrokers work with local law 38

NATIONAL PAWNBROKERS ASSOCIATION | SUMMER 2021

enforcement to make sure we comply with federal, state, and local regulations.” THIRD-PARTY QUESTIONS “The neighborhood association says that you buy stolen items. Why do you think they feel that way?” Reporters will often ask you to comment on third parties, usually your competitors or opponents. Answer the question by focusing on your own attributes. You might say, “Well, let me talk about how we do it at ABC Pawn. As a member of the National Pawnbrokers Association, we adhere to a code of ethics regarding how we conduct business.” THE REPEATED QUESTION Reporters are notorious for asking the same question with slightly different words several times. Remember these two things: Stick to your talking points. You should alter the specific words of each response, but not the themes of your answers. Don’t let them ruffle your feathers. You should be as calm the sixth time the reporter asks you a question as you were the first, since the reporter will inevitably use your least flattering response. THE SHOCK FACTOR QUESTION “What is the most unusual thing you’ve ever seen pawned?” Use this question as a gateway to tell a positive or inspirational story. For example, “We once helped a student pay his tuition while he was waiting for grant money to come in by making a loan on his gaming system.” Never discuss body parts, human remains, or anything that attaches to a body such as wigs, glass eyes, dentures, gold teeth, or prosthetic limbs in your interview.

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STAT E N E W S

Tennessee at night.

STATE ASSOCIATION REBOOT AS THE NATIONAL PAWNBROKERS ASSOCIATION continues to strengthen critical legislative protection for the pawn industry, it is becoming clear that individual state associations are also needed to unite pawnbrokers. In states where there is no association, some pawnbrokers are banding together to create one. Why is this important? “Every state has two senators. It doesn’t matter if you live in a state like California with a strong state association or Idaho where there is no state group,” said Dave Griffiths of The Consultants, who is a staunch supporter of pawnbroker associations both state and national. In other words, pawnbrokers in each state need to cultivate and educate their own legislators on the importance pawn and the place it holds in communities. So, what does it take to create an association? Lots of work. Lots of work on top of the lots of work it takes to keep the organizers’ pawnshops running. “When I got on the national board, I didn’t know if I would have time for both associations, but with the current political climate, I thought it would be good to head off some of the issues locally as well,” says Lisa Little of Fieldstone Pawn in Georgia. Thanks to small groups of dedicated pawnbrokers in Georgia and Tennessee, these states may soon have strong state associations. GEORGIA Georgia had a state pawnbrokers’ association that started in the late 1980s. That association was able to have major say in laws that were passed in 1992. The association was going 40

NATIONAL PAWNBROKERS ASSOCIATION | SUMMER 2021

strong until attrition slowly eroded membership numbers. Now Lisa and Ben Levinson of Dynasty Jewelry & Loan in Gwinnett, GA, decided to band together to bring it back. With an estimated 600-700 pawnbrokers in the state, the timing could not be better. For Lisa, it was going to an NPA Legislative Conference and seeing firsthand how the government can make or break the industry. “I saw the importance of it and wondered why we are not doing things locally,” she says. Both Lisa and Ben have connections to the old state association. Lisa’s father was the membership chair and Ben helped spearhead the 1992 legislation win. “Three of the original Certified Pawn Professionals (a designation given by the NPA upon completion of a year-long educational course) are in Georgia,” Lisa says. Lisa herself is the first woman in the country to earn the CPP designation. All three of the CPPs in Georgia are onboard to reboot the Georgia state association. BUT HOW? Since all of the paperwork from the old association was lost, Lisa and Ben had to start over. Once the legal matters set up, Lisa and Ben got to work reaching out to potential members. In the past few months, they have sent out email blasts, started a Facebook page and will soon be hitting the road to speak in person to as many pawnbrokers as they can about the importance of a state association. TENNESSEE

Gayle Ferebee of Pawnway in Springfield, TN, is a fourthgeneration pawnbroker. Her mother, Lourie Seawright, was an NPA founder and the first president, as well as a founding member of the old Tennessee state association. So, Gayle grew up with pawn associations. “I know grassroots, because my mom did this back in the 80s,” she says. But in Tennessee, the state association, once strong, has ground to a halt. Gayle, Ken Huddleston of KK’s Loan, Music & Jewelry in Manchester, TN, and Rob Barnett of Elk River Trading Company in Fayetteville, TN, are working to remedy that. “The old association became more about the association than the pawnbrokers, and we became less active,” says Gayle. They have their original charter and are fortunate enough to still have funds in the old association, which they can use to reboot the new association. But it has been slow going. “There is no one place to find pawnbrokers. I’ve called every agency in the state and no one has a list. I found out that those records are held at the county level,” says Gayle. Not to be deterred, she has been going through online phone books to find pawnbrokers. She thinks there are more than 350 in Tennessee. When asked why they are doing this, the answer was much the same as Lisa and Ben in Georgia: presenting a unified state voice to state and federal legislatures. “We especially want to come together with one voice to the legislative body. It’s the biggest thing,” says Rob. They feel that there needs to be a show of strength, a consistent message and a unified voice to represent all pawnbrokers in the state. Right now, they are reaching out to their fellow pawnbrokers to find people who are willing to stand for office in the rebooted association. Once they have elected

officers, Gayle, Ken and Rob can move along to contacting and recruiting new members. THE NPA IS READY TO HELP. The NPA wants to bolster and support all state association and help those who have no association to build one. “The stronger we can make every pawnbroker in every state, the stronger the entire industry will be. That has to happen on a state and national level,” says Kerry Rainey, President of the NPA. In addition to providing support for fledgling associations in the form of lists of pawnbrokers in their states, the NPA has just implemented GovPredict, which allows the NPA Government Relations Committee, Team GRC, to monitor pawn related legal activity in every state. If any legislation pops up, Team GRC will coordinate with the state association on action steps. In addition, the NPA will be holding quarterly Town Halls, starting on May 6, to hear directly from those who are running their state associations. “The NPA can lead with a plan of attack, bolster the army and be prepared for legislation coming down the pike,” says Dave. “Let people know that our association is ‘official,’” says Gayle. The NPA has already started adding state association information to the state law pages on the website. In the future, the site will host state pages. Working together with the NPA, state associations are a vital part of protecting the industry. If you want to join one of the new associations, you can contact Lisa in Georgia at lisa@fieldstonepawn.com or Ken in Tennessee at Ken Huddleston at kkslmj@kkspawn.com. If you need help starting or rebooting a state association, contact the NPA. SUMMER 2021 | NATIONALPAWNBROKERS.ORG

Fun and Marketplace

All Together Face to Face! Let’s Have Some Fun! WELCOME RECEPTION – BIDS, BULLS & BBQ Everything is bigger in Texas, including the PARTY! So, wear your fanciest western wear and join the gang for a night of Texas-sized FUN! • Do some boot scootin’ to the sounds of Royal Dukes • Online auction to benefit the NPA PAC • NPA Bull Riding Competition to benefit the Future • Business Leaders Scholarship Fund. Who will win the champion’s buckle? • And of course, cocktails, food, networking and merriment! NPA GOLF TOURNAMENT AT TOPGOLF Kick off the convention with golf, games, food and fun at Topgolf’s indoor facility. Topgolf has made socializing a sport through a blend of technology and entertainment. There are dozens of climate-controlled hitting bays for year-round comfort, with HDTVs in every bay. AWARDS LUNCHEON The most highly coveted awards of the year will be announced at Pawn Expo during our Annual Meeting & Awards Luncheon. Join the NPA Board of Directors at the Awards Luncheon to honor and appreciate those who have served this industry.

JULY 10 - 13, 2021 OMNI HOTEL, FORT WORTH, TEXAS

12 FULL Hours of Dedicated Exhibitor Time! Convention Sponsorships Available – Details Online Registration Open Now

NATIONAL PAWNBROKERS ASSOCIATION | SUMMER 2021

“VENDOR LOVE” CLOSING RECEPTION Don’t dash out the door after the last session! Join us for the “Vendor Love” Appreciation Reception on Tuesday evening! Help us show the love for our vendors! We will have food, drinks, music and most importantly, recognition of Industry Partners who support the NPA. Don’t miss our final night together! THE MARKETPLACE Bring your diamonds and jewelry to sell in the privacy of The Marketplace. The Marketplace is a secure trading room where you can negotiate the best deal with any participating vendor. No appointments required, but appointments are permitted. You must have a full Pawn Expo 2021 registration to participate in The Marketplace. Attendees must contact exhibiting companies directly if they wish to make appointments. The Marketplace Hours: Sunday, July 11 – 8:00 am – 4:00 pm

Pawn Expo Program Pawn Expo Keynotes, Seminars, Interactive Panel Discussions and Round Tables are filled with actionable ideas and content that will help YOU run smarter, more efficient and more productive businesses, which will EARN and/or SAVE you money. Our #1 goal for every attendee at Pawn Expo this year is VALUE. Valuable ideas. Valuable networking. Valuable takeaways. KEYNOTE SESSIONS You Can Compete – Bob Phibbs, The Retail Doctor The flawed assumption nearly every traditional retailer makes is that they’ll edge out their online competitors by beating them on price. But with rising costs in both leases as well as labor, this just isn’t sustainable. Customers have different personalities and styles of communicating. After the pandemic, they’ll be looking to give their trust to local stores even though most have shopped more online than ever. However, there is one thing that brick-and-mortar retailers can do that by design online retailers won’t ever do. Bob outlines the startlingly simple but mostly overlooked insight that will help you to not just grow your profitability but reinvent your business as a whole. NEVER MAKE IT: Why Success Is Hurting Your Pawn Business, Tyler Wilson, Pocket Pawn Take yourself back to Day 1 at your pawnshop for a moment. You’ve got $0 in sales, a $0 loan balance, and not near enough employees. What you did have, however, was motivation. You had an incredible passion for what you were doing and an intense drive to get it done and become successful. Now, fast forward to your pawnshop in 2021. Many of us would look at ourselves today and say that the same passion and drive we once had, is now gone. In this session you’ll learn practical ways to reignite the fire you once had in your pawn business and keep it burning for the rest of your career. GRC Legislative Update – Legislative and Regulatory Developments in 2021 on the top issues we are seeing and those we can expect in Congress and state legislatures. What might we expect from the new leadership at many of the federal agencies, such as the CFPB, that have an effect on the statutes and regulations applicable to pawnbrokers. ROUND TABLE DISCUSSIONS Join your fellow pawnbrokers in an interactive exchange of ideas led by skilled industry moderators. You will leave these sessions

SUMMER 2021 | NATIONALPAWNBROKERS.ORG

Where the Best Begins! with dozens of proven ideas on raising your loan balances and creative ideas for sourcing inventory. • Increase Your Loan Balance! • You Can’t Sell with an Empty Cart! Managing Pawn Shop Supply SEMINARS Pivot & Reinvent Your Business in 2021 and Beyond Jeff Wilhelm, Director of Store Operations, National Jewelry & Pawn What is your business forecasting, and will you be ready to pivot to meet today’s business and beyond? Hear what is likely to come to our industry and how you will need to pivot to drive your economic engine. Preparing is better than panicking. Learn 3 step to take today: acquire, upscale and persuade. Don’t Kill your Golden Goose- Protect & Perpetuate your Business Larry Oxenham, American Society of Asset Protection Is your financial house in order? Discover the tools pawnbrokers can use to become invincible to lawsuits, save thousands in taxes, and achieve financial peace of mind. By the end of the presentation, you will know how to: 1) Protect 100% of your assets from lawsuits. You will learn how to make yourself so unattractive to a plaintiff attorney that they will never pursue a lawsuit against you. 2) Save thousands of dollars each year in taxes. You will learn five tax reduction strategies most people fail to utilize, which could save you more than $10,000 each year in taxes. 3) Avoid probate and eliminate all estate taxes. You will be taken through a checklist of items that are important to every estate and business succession plan. You will learn what you should be doing now to prepare for successful business and estate succession. “It takes a lifetime to accumulate your assets. Take the time to protect them.” Measuring Your Success Against NPA Benchmarking Survey Data How does your shop compare? Join this session of highlights of the 2020 NPA Operating Performance

Report. In 2020, the NPA sent out detailed questionnaires to members asking about their businesses. Based on these confidential surveys, the 2020 NPA Operating Performance Report includes key data segmented by: Profitability; Total Revenues; and Pawn Yield. In this session, we will present highlights of the survey with guidelines for identifying business performance improvement opportunities. You’ll take away key metrics that you can use to evaluate your own business. INTERACTIVE PANEL DISCUSSIONS Is this Authentic? Moderated by Michael Mack of Max Pawn This seminar will cover the basics of authenticity of designer luxury goods, sneakers, fine watches and more. This will be an engaging conversation from experts with valued input from the participants. Keys to the Ultimate Customer Experience Moderated by Mark Campanale, NPA Digital Communications Manager No matter what the medium our customers choose to make contact with us – phone, web, e-mail, in-person – they are all looking for the same thing: to make the purchasing process simple. We need to be problem solvers and to completely surpass our customer’s expectations, which will in turn lead to a positive, lasting impression. To put it in the most basic terms, we need to walk in our customer’s shoes. Yet before we can solve problems, we need to truly understand the nature and the story behind the problem we are solving. In this interactive panel discussion, we will explore the key components to turning customers into raving fans across all touch points. Firearms Panel Discussion Moderated by Johnny Whiteside More businesses in the pawn industry are realizing that firearms can boost profits. But due to the unique practices inherent to this specialized retail segment, there are many things to consider when selling firearms. Staying compliant with pawned redemptions in addition to the standard practices of buying and selling firearms requires following additional rules and regulations. You also have to consider your FFL with respect to liability for injuries resulting from a firearm or ammunition sold. Hear from a panel of experts about these topics and more related to firearms sales. www.nationalpawnbrokers.org

NATIONAL PAWNBROKERS ASSOCIATION | SUMMER 2021

STAT E N E W S

STATE ASSOCIATION NEWS ARKANSAS

Tim Collier, Past President of NPA and President of Arkansas Pawnbrokers Association The Arkansas Pawnbrokers Association has been busy during the 93rd General Assembly regular session this year. From a drafted bill to monitor the sale of catalytic converters to a bill requiring pawnbrokers to pay restitution if a suspected piece of stolen property was sold and unavailable, the session was truly one for the ages. We were able to get exemption from the catalytic converter bill and were able to defeat the stolen property bill in the Senate before it made it to the House Committee, so the end results are very gratifying. It just proves the point that you have got to have a relationship with members of the House and Senate in your state in case something comes up. We were contacted as soon as the bills were filed by multiple members, as well as lobbyists, so we were prepared to fight for pawnbrokers’ rights. On a more positive note, we were able to help get a bill passed to exempt sales and use tax from coins, currency and bullion. Arkansas was one of only a handful of states who still charged state sales tax on the sale of gold and silver bullion and coins for investment purposes. We started two years ago to lay the groundwork and were able to finish the deal this session. With the conclusion of the current session, we can now look toward the upcoming Pawn Expo in Fort Worth and see our many pawnbroker friends and try to get back to some sense of normalcy. See you all in Fort Worth in July.

COLORADO

Steven Adsit, President of Colorado Pawnbrokers Association Colorado’s Pawnbroker Association is working hard to get a complete contact list for easy communication with all pawnbrokers in the state. We are in the phone call process, but would really appreciate a simple email. We need to be able to communicate to address legislation and other issues. This communication list will keep us all working together and keep everyone informed. We are stronger together! Please send us an email with your info to stores.35@mmi-corp.com.

FLORIDA

Josh Davis, President of Florida Pawnbrokers Association Thanks to our business-friendly state, and some county lobbying, pawnshops (and pretty much every other industry) has been open for business during this entire period of

national lockdowns. Many stores are reporting low loan balances, similar to the rest of the country. Our current legislative session is trying to put forth increasingly restrictive gun legislation, which we are monitoring. Our lobbyist has been having discussions with those proposing this legislation to explain the burden of such legislation as best as possible. Some legislators have not been in their capital offices due to COVID-19, which makes outreach a challenge. Luckily (so far) nothing directly pawn related has been drafted.

GEORGIA

Lisa Little Ben Levinson The Georgia Pawnbrokers Association is making progress. Our 2021 legislative session is over, and our efforts spared pawn negative legislative impacts. Our website is performing well, and we are already fielding consumer calls. Our Facebook forum is growing and active. We are in the process of recruiting a slate of pawnbrokers to serve on our Board of Directors. We also have a growing group of committed pawn Industry Partners who have joined us in our building phase. Shout out to Burrell Printing, United Refining, Pawnbroker Network, PawnTrain, and Podium. We still need a lot more pawnshops to join as we strive to build a strong voice for the pawn industry in Georgia. Check us out at georgiapawnbrokers.org or call/text GPA at (678) 850-2500.

LOUISIANA

Jeremy Powell, President of Louisiana Pawnbrokers Association It is our pleasure to say that Louisiana pawnbrokers have been very low-key on the legislature radar this past year. The board of the LPBA is constantly working to monitor any legislation that could affect us. Throughout COVID-19, the LPBA made sure its members were aware of what precautions to take as we were deemed an essential business. Everyone needs to make sure to reach out to his or her local legislators and state representatives to educate them on what we do and how we help our communities.

MISSISSIPPI

Nick Fulton, President of Mississippi Pawnbrokers Association Greetings from the deep south. Mississippi pawnbrokers had a very successful legislative session. What I mean by success is that we pushed back against some awful attacks from certain legislators who tried to cripple our industry. One bill in particular would have required that any loan or buy from a customer must be accompanied by the original sales receipt SUMMER 2021 | NATIONALPAWNBROKERS.ORG

STAT E N E W S

of the merchandise. Our lobbyist, Tom Wallace, was always on top of things and navigated us in a successful attempt to kill the bill. We look forward to continuing to build grass roots relationships with our legislators in the upcoming year. We are almost finished with our new website, and it should be up and operational before this issue has made it into the hands of our members. It is our intention to help create a more effective way to communicate with each other in the future. Since our state requires continuing education to retain a pawn license, we are looking into more ways to attain this without attending sessions in person. We highly recommend joining other pawnbrokers at the NPA Convention in July, or the Dixie Pawn Convention in September, to get those continuing education hours. We all had to deal with the NMLS transition from licensing the old way that the Department of Banking and Consumer Finance issued pawn licenses to what they now require. It was an absolute nightmare. For some it took months to navigate the system, and COVID-19 protocols didn’t help. Most of these people were working from home, and just to get someone on the phone would take hours. It was one of the hardest things to comprehend and one of the hardest things we have ever had to deal with. From what we are hearing on a national front, this could be coming to other states soon. Louisiana and Mississippi already require it. Mississippi pawnbrokers will be working closely with the NPA to help improve the process for licensing.

NORTH CAROLINA

Bob Moulton, President of North Carolina Pawnbrokers Association The North Carolina Pawnbrokers Association is alive and well. With COVID-19 occupying the headlines, very little on the legislative front has happened during the past year. We are in need of some pawnbrokers to step forward and help us continue with the great work that the NCPA has done in the past. If you are interested, please contact me at moultonbob@yahoo.com.

OHIO

Raphael Tincher, President of Ohio Pawnbrokers Association In OPA news, your board remains active. I recently had a newly elected State Representative, Cindy Abrams, in for a visit at my store. She received the tour and spent almost an hour and a half with us (she ran late for her next appointment). It was a very good meeting, and educational as well, as she had never been in a pawnshop before. Thank you to Bob Lambert, our state lobbyist, for arranging that. If you ever have the opportunity to have an elected official visit your business, I encourage you to do so. It will be an eye-opening experience for them. It is very important to reach out and educate our lawmakers. If you need help arranging a meeting, or would like another person 46

NATIONAL PAWNBROKERS ASSOCIATION | SUMMER 2021

there for support, please contact me or Bob. We will be happy to help. The current plan is to have a membership meeting in October. There will be a CE seminar in conjunction with that, and an additional CE seminar in November. These will take place in Columbus at the new Quest Center location. Details will be released at the end of the summer. Membership renewals will commence in June (emails & mailings will be sent), but if you would like to renew early for the June 2021-June 2022 period, please mail your renewal in at your convenience. Please be safe, and if I, or any board member, can be of assistance, reach out. Thank you for your continued support.

OREGON

Beth Anundi, President of Oregon Pawnbrokers Association Oregon has been relatively quiet this last twelve months due to the governor’s mandates placed on small businesses and citizens, but as COVID-19 continues to change our world, we anticipate shifting yet again to meet the needs of our communities. With the looming threat of a 36% rate cap, our focus is making sure our legislators know how we continuously help our clients and communities. Last year was a clear example of how pawnshops are a vital piece of our neighborhoods. We served countless customers who had to pivot and purchase multiple computers for previously non-computer, or one-computer, households. Among the deluge of purchases, we helped families get fast cash as they navigated the devastating Oregon wildfires and then the recent destructive ice storm. During the pandemic and natural disasters experienced over the course of the last twelve months, our Oregon lobbyists have remained loyal to the pawn industry alerting us to anything that may be of concern. I would urge all Oregon pawnbrokers to join OPA today because speaking as one voice for the pawn industry will give us more power than standing alone in this ever-dynamic environment.

TENNESSEE

Robert Barnett Gayle Ferebee Ken Huddleston We are rebooting our Tennessee Pawnbrokers Association! We need representation to keep us safe from harmful legislation regarding state and national pawnshop laws, as well as raise awareness and education for all Tennessee pawnbrokers. We are still in the slow process of making phone calls to Tennessee pawnbrokers, but we are gaining more support in different areas of the state. Since we have more physical pawnshop addresses than email addresses at this point, our next discussion will be about a snail mail campaign to get the word out of our reboot, to boost our Facebook page, and to build a better contact list. We have also been mentioning the upcoming Midwest Pawnbrokers Convention

in our intro calls, (conveniently located in Louisville), and hope to see some extra TN faces there. We are still up in the air about holding any kind of elections at Midwest. Please join us on our Private Facebook group, Tennessee Pawnbrokers Association, for information regarding the reboot. You can also email us at kkslmj@kkspawn.com or by phone at (931) 247-1142 or (256) 990-7621.

TEXAS

Boyd Naylor, President of Texas Association of Pawnbrokers On April 23rd, we held our Covid-threatened, Snow-vid (our every 35-Year South Texas winter storm), delayed 2021 TAP Convention in Houston. We had a great time. We had great turnout. We have a great group of Sponsors and Vendors that rearranged their schedules on short notice to make it to Houston to support our industry. Many, many thanks to all that were able to attend! The 2021 TAP Board was elected in Houston, and three new Texas pawnbrokers have stepped up to serve: —Danielle Foster, Dallas/Fort Worth —George Beckelhymer, Laredo —Fred Bogar, Texas City/Houston New Officers for 2021 Chairman: Joel Hefley President: Cody Lewis Vice-President: Roberta Suarez Secretary: Danielle Graham Treasurer: Jimmy Rodriguez In addition to attending the NPA Pawn Expo in Fort Worth in July, our members have marked their calendars for February 18, 2022 for the next TAP Convention. See y’all in Fort Worth!!

WASHINGTON

Janelle Morehart-Leevey, President of Washington State Pawnbrokers Association The Washington State Pawnbrokers Association has been busy fighting off firearm legislation for the past few years. We have had a few bills pass within the past couple of years that are not good for our industry. The WSPA has been trying to spread awareness of bills and regulations happening within our state, and across the country, by reaching out to pawnshops that are not currently members of WSPA. However, we need more members involved and willing to help out. Membership is declining due to shops closing and people retiring. So, we need your input! We are open to ideas, suggestions, and information that would be of importance to our association. Without your help and support, anything can happen. If you have information or suggestions, please email: wspawnassociation@gmail.com.

ADVERTISER INDEX

Bluestone Trading Company

Bravo Pawn Systems

Burrell

The Consultants

2,3

Data Age/PawnMaster

Electronic Transfer

Garfield Refining

Geib Refining Corp

Mid-States Recycling & Refining

Pawnbroker Financing

Pawnshop Consulting Group

The Rapaport Group

Simplex

SoCal Safe

Stuller

United Precious Metal Refining

Wexler Insurance Agency

Worldwide Diamond Co

26, 27

Yehuda SUMMER 2021 | NATIONALPAWNBROKERS.ORG

Discover for yourself what so many Pawnbrokers already know

PEOPLE OF PAWN

BEN LEVINSON BEN IS A NATIVE OF GEORGIA and graduated from the University of Georgia with a BBA in Marketing. He is a former President and Vice President of the Pawnbrokers Association of Georgia and former President, Vice President, and Secretary of the National Pawnbrokers Association. He has had an active role as a pawnbroker for over thirty-five years and serves as President of Dynasty Jewelry and Loan. How did you get started in pawn? I started my retail career with the now defunct Radio Shack. I was on the corporate path. Fortunately, I ran into a new superior and knew that we were just not going to be able to work together. Having married into a family that had been in the pawn business since 1923 that wanted me in the business, it was an easy decision. What is the number one pawn skill you have? Customer service. What pawn talent do you wish you had?

“IT IS LIKE ANY OTHER JOB. YOU GET OUT OF IT WHAT YOU PUT INTO IT.” Although people may argue that accounting is not a pawn talent, I wish I was more talented in that department and liked it more. What customer behavior aggravates you the most? It does not happen often, but I do not like rude people. Do not be rude to my employees or my customers. What customer behavior brings you joy? When a customer shows they are appreciative of our services with things like a simple thank you, bringing us food, or writing a 5-star review. I really enjoy reading our reviews. What is the weirdest thing you have ever written a loan for? A 7-foot Boa Constrictor! The owner had to come in and feed it periodically. We now have a policy that we do not take anything that eats, or could eat us! What career would you pick if you were not in pawn? Something in the entertainment field. Where do you see yourself in 10 years? Dropping by the pawnshop for a quick visit every now and then semi-retirement. Also, I would love to travel more. Do you want your children to follow in your footsteps? My son, Joel, already has. In fact, he is a better pawnbroker than I am. What college degree would be great to have to work in pawn? I graduated with a BBA in Marketing. It has been helpful. Having experience in a pawnshop is the real education. Yes, a college degree helps, but one from the University of Hard Knocks (UHK) will educate you well. What is the one piece of advice to anyone considering the pawn industry? It is like any other job. You get out of it what you put into it. It is hard work and a learning curve every day. Do not think you are going to become wealthy overnight. You will earn everything you accomplish, and hopefully, you will appreciate it.

NATIONAL PAWNBROKERS ASSOCIATION | SUMMER 2021

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National Pawnbroker Magazine Summer Issue

Articles inside

Embracing Technology

Board of Directors

Calendar Of Events

Letter From the President