2015 September Issue

I N

T H E

LOUPE September 2015

SEE PAGE 2

FROM THE RJO CHAT CHANNEL

Is Accounting Software Worth the Investment?

SEE PAGE 3

VENDOR PROFILE

Oro International: The Company With a Personal Touch SEE PAGES 6-7

MARKETING MATTERS

Is Your Best Customer Your Best Spokesperson?

SEE PAGE 9

RJO BUYING SHOW AWARD AND PRIZE WINNERS

Issue 62

St. Louis Buying Show Was Yet Another RJO Hit

THE RJO SUCCESSION EXPERIENCE

October 4-6 Hyatt Lodge in Oak Brook, IL

The Ultimate Jeweler Resource

SEE PAGES 10-11

SYNCOPATION. IMPROVISATION. Those often are considered to be the two main elements of good jazz, and both were evident at the Jazzed Buying Show in St. Louis at the end of July. Vendors and retailers at this year’s Show were greeted with the rhythm they’ve come to expect from RJO: easy registration and direction to all the events and venues; smooth transition from work to play, and back again; and emphasis on some of the lesser known features that make for a great Show. Additionally, there was golfing, locally brewed beer, summer on the Mississippi, and a gala that took members to their favorite speakeasy.

Jazzed

Seminar sessions were well-attended; the presentation rooms were always humming with lots of sharing, and the Show floor saw hundreds of members, moving from booth to booth, placing orders for the year.

RJO CEO Mary Peterson says she is pleased, but not surprised, that RJO shows so much vitality. “Whenever I mentioned RJO’s upcoming 50th anniversary next year,” she said, “I would get wide eyes and heads shaking in disbelief. We are so blessed to have created such a terrific jeweler resource that has withstood so many challenges and celebrated so many successes.”

Be sure to mark your calendars for our next Buying Show: Hidden Treasure, January 30 - February 1, 2016, in Phoenix, AZ.

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

The RJO Succession Experience: October 4-6 RJO LAUNCHED ITS FIRST SUCCESSION EXPERIENCE in the fall of last year. We are excited to repeat it again, this October 4-6, 2015, at the beautiful Hyatt Lodge in Oak Brook, IL. I want to highly encourage you to make the time to attend and share some thoughts about the Experience to pique your interest even more; the experience is well worth the time spent.

The reason we call this an “Experience” is because you are not sitting in seminar after seminar. You are obtaining skills and knowledge from very talented presenters, share groups and working sessions. You are given the knowledge, which in turn you utilize to start building your own personalized succession plan. When you leave the Experience, you will have put together a plan that will help you determine your next steps.

Like any RJO event, the networking and sharing with others is just icing on the cake.

Our past participants will tell you why the Experience is so valuable; here are some thoughts I have gathered:

- This made us take the time to really think through our succession. You can never find time when you are working at the store.

- Folks should bring their spouses, even if they are not in the business, as it does affect them.

- Even though I don’t have a successor at this time, it really helped me get my plan together to move forward.

- It really helped me deal with the emotional side of retiring, as it is not all about the money.

- Bringing your successor makes it even more valuable.

- I felt like a weight was lifted off of my shoulders.

We took last year participant evaluations, added some new material, and changed the curriculum a bit to make it even better this year!

RJO created this event to help sustain and grow our industry. Succession is not always easy, but we know this Experience makes it a lot easier!

You can still sign up! So don’t pass up on this opportunity!!! I promise you will not only learn, but have fun while doing so! Details are on page 4 in this issue, and registration forms are on the RJO website. Contact me if you have any questions.

RJO CEO

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

From the RJO Chat Channel

THE CHAT CHANNEL ON THE RJO WEBSITE (www.rjomembers.com) hosts a variety of interesting discussions each month. Here’s an edited post—and responses to it—that can be found in the RJO Jeweler Business area, under the heading “QuickBooks and The Edge”

SERVICES

CEnTRALIzED BILLInG

PATROnAGE DIVIDEnD

RJO WEBSITE (RJOMEMBERS.COM)

BuYInG SHOWS (FALL/SPRInG) RJO CHAT CHAnnEL

In THE LOuPE – RJO’S nEWSLETTER

FREE PRInT AnD RADIO AD LIBRARY (On RJO WEBSITE)

THE

EDuCATIOnAL SEMInARS (AT THE BuYInG SHOWS)

MEMBER-TO-MEMBER InCEnTIVE PROGRAM (RECRuITMEnT PROGRAM)

ORGAnIzED BuYInG TRIPS TO AnTWERP AnD IDAR-OBERSTEIn, AnD ISRAEL RJO DIRECTORY

TRAVEL VOuCHERS AT SHOWS (OFFERED AT VARYInG TIMES)

FREE HOTEL ROOM InCEnTIVE (AT THE BuYInG SHOWS)

RJO InFORMATIOnAL E-MAIL BLASTS

PuRCHASE VOuCHERS (AT THE BuYInG SHOWS)

RJO MEMBERSHIP CERTIFICATE

EDuCATIOn On THE GO PODCASTS AnD WEBInARS PRIVATE LABEL CREDIT CARD SERVICE JEWELCOnnECT

Post: I attended the QuickBooks and The Edge seminar in St Louis, so now we are just trying to figure out if it is worth it for us to switch. It will cost $1,995 for integration, while it’s $300 for the Quickbooks software. That wouldn't completely eliminate the need for an accountant, so I’m wondering if it is worth it? I’m looking for input on these topics from smaller stores who are integrated:

• We are not familiar with QuickBooks, so would The Edge two-day training teach us everything we need to know?

• Would we need to make changes in the way we enter some of our sales, such as miscellaneous items?

• Is it worth the time and money?

Thanks for any input!

Response One: I saved thousands on taxes my first year. I use another POS, but integration with QuickBooks was the money saver.

Response Two: I think it’s worth it. Make sure that you have Geller help you with set-up. It will cost you some extra money, but is well worth it.

Response Three: We've had The Edge and QuickBooks since 2004. We’ve followed their integration over the years, as the process evolved. One procedure that you’ll really want to know about is that if The Edge posts a journal entry with Accounts Receivable on the first line, it does not reflect on your balance sheet. Go figure! It took me years to find the problem through a process of elimination. The Edge says it's a QuickBooks glitch that they can't fix. So you have to go into each entry, check if Accounts Receivable is on the first line, and then move it down to the bottom if it is.

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RJO Sponsored Trips 2015 Hosted by Liz Schlauch & Jeff Horlacher Antwerp: October 3-8 (arriving October 4) Idar-Oberstein: October 8-12 Hosted by Connie & Steve Matsen Antwerp: October 10-15 (arriving October 11) Idar-Oberstein: October 15-19

RJO and participating retailers have experienced on-going success buying diamonds directly from the source, beginning in Antwerp more than a quarter-century ago. In 2006 RJO added Idar-Oberstein, Germany, the colored gemstone capital of the world. Joining the trips to Antwerp and Idar-Oberstein allows you to focus on your diamond business while RJO takes care of the rest.

October 23-31

RJO welcomes you to the RJO Israel Experience. RJO takes you along some of the most exotic backdrops of Israel, while touring RJO vendors in one of the largest and most important diamond centers worldwide— an excursion that will give you a heady mix of business and pleasure.

More and updated information on these buying trips can be found on dedicated web pages on the RJO website.

Over the years RJO has been asked by many owner members about offering an educational opportunity for those preparing to leave the industry in the next few years. The result is the development of the RJO Succession Experience, a two-day event, October 4-6, at the Hyatt Lodge McDonald’s Campus in Oak Brook, IL. The registration deadline is approaching, so ensure your space today, by registering today.

This Experience is for owners planning to leave the industry within ten years, as well as their potential successor. The curriculum has been created to provide hands-on learning that will produce a viable succession plan to put into practice. It includes:

• Assessing your current situation • Identifying your personal goals • Identifying the needs and goals of other stakeholders • Management succession • Defining your current income and the dependence on the business for future income • Valuation: How much is my company worth and exploring options for selling/transfer of assets • Exit strategies • Writing your plan

To learn more about the costs, expectations of participants and goals of the Experience, go to the RJO website. To register, complete the registration form and contact Hannah Green at: hannah@rjomembers.com or call (800) 247-1774.

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

NEW MEMBERS

Alexander’s Jewelry Trudy and Ken Zampier; Doug and Samantha Brent Shrewsbury, PA

Goodnight Jewelers (formerly Ralph’s Custom Jewelers)

Referred by: Terry McMullin, Master Jewelers, Olive Branch, MS

Allen’s Fine Jewelry John Cravens Grenada, MS

Referred by: Wayne Britt, Britt Jewelry, Cleveland, MS

Brasfield’s Jewelry Store Roger and Debbie Brasfield Humboldt, Tn

Highlands Jewelers Charles R Stuart; Walter and Angela Stuart Sebring, FL

The Jewelry Emporium Matthew Phillips and Megan Rogers Cookeville, Tn John Stockhill Jewelers Bruce and MaryAnn Marshall; Carolyn Butts Miles City, MT

Clonts Fine Jewelry Inc Rock and Glenna Clonts Safford, Az

J.R. Fox Jewelers (Two locations)

David Douglas Diamonds & Jewelry Joseph and Doug Meadows Marietta, GA The Diamond Shop Thom and Mona Kohn St. Louis, MO

Robert and Arzoo Goodnight Culpeper, VA

Peggy, Doug, Sue, Judy, and David Fox South Bend, In; Mishawaka, In

Referred by: Cameron Buys, RDI Diamonds, Rochester, NY

K Martin Jeweler Mike Salem Dodge City, KS

Referred by: Louis Collichio, RDI Diamonds, Rochester, NY

Lambert Jewelers Keith and Jaynie Lambert; Jackie Reid Marysville, OH Larson Jewelers James Kao Long Beach, CA

Leitzel’s Jewelry Ceylon Leitzel and Trevor Williams Myerstown, PA

Referred by: John Cryan, John S. Cryan Jewelers, Southampton, PA

Michael Eller Diamonds Michael Eller and Shirley Fletcher Findlay, OH Doug Kreinbrink Bellefontaine, OH

Referred by: Cody Miller, Alan Miller Jewelers, Oregon, OH

Nature Coast Goldsmith Jewelers Inc. Elizabeth and David Bennett Spring Hill, FL

Pearce Jewelers Fred and Kate Pearce West Lebanon, nH

Referred by: George Prout, Gems One, New York, NY

Smith Jewelry Leslie and Susan Christen Huron, SD

Referred by: Skip Gunter, A. Neal Originals, Rapid City, SD

Ward’s Jewelry & Gifts, Inc. George R. Ward and Dee Scott Lake City, FL Wm. Phelps Custom Jeweler, Inc. Jennifer Phelps naples, FL

Referred by: Louis Collichio, RDI Diamonds, Rochester, NY

Wyatt Austin Jewelers Candice Milstein and Robin Lashen Schaumburg, IL

Thank you to the jewelers referring new members to our group. These jewelers will receive a $1,000 finder’s fee for their referral, payable after a new member has been in good standing for at least six months.

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

Oro International at 50: The Company With a Pe

ONE MIGHT THINK that a family business whose history goes back 70 years might be comfortable sticking with the tried-and-true. But not Oro International, a leader in gold and silver jewelry. Company president Eric Weber says that Oro has teamed up with RJO vendor Jeweler Hub to help promote “not only our products, but every category an RJO store needs, including professional shots, great tag lines, and now commercials. And we do this all at a fraction of the cost to do it themselves.”

Evolving to serve a changing market must be in the family’s genes. It was Weber’s uncle Qurino Ruzza, currently 89, who first got involved in the jewelry world in Vicenza, Italy 70 years ago. With 20 years of jewelry manufacturing experience under his belt, he encouraged his sister Elena Weber (Eric’s mother) to try and sell Italian gold. Elena had moved to Chicago with her husband, Josef, an executive chef and professional ski instructor.

Mid America Jewelry News recounted Eric’s family’s history in an article this past July. In it, he says, “My mother was one of the first women to start a jewelry import company, and she was one of the founding members for the Women’s Jewelry Association’s Midwest Chapter. She speaks five languages, and she loves golf. As CEO, she still comes in and keeps an eye on our consignment business, as well as a constant eye on the checkbook!”

Eric told MA JN that being a great wholesaler provides retailers with these assurances: • We have an amazing fulfillment rate on the products they order.

• We provide the practical information on how to make their store more inviting to customers in their communities.

Photo by JewelerHub

• Our Customer Service staff uses their 23 average years of experience to find the products they want and answer their questions without delay.

• Consumers who show interest in our products are forwarded to our loyal retail partners.

At the most recent Buying Show in St. Louis, Oro International introduced a new line of all-Italian-made earrings in 14k, a collection of disk gold in earrings, bracelets, and necklaces up to 60”, as well as spun silver.

Weber says all have been very well received.

“Currently,” he says, “we are focusing mostly on the rebirth of gold jewelry in a variety of styles and price points.”

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

ersonal Touch

Oro also is an RJO-exclusive vendor, and Weber says that RJO should be attractive to independent jewelers.

“I think any new member to RJO will see value in the vendors and a very friendly attitude from all who attend the Buying Shows,” he says. “We have been a loyal vendor for 25 years, and we only belong to RJO. You really can’t be too exclusive when you want to be part of every buying group and want sell to all size companies. We don’t want to make the independent jeweler just part of the mass market, which is one of the many reasons why we have been around for 50 years.”

Gold for the Good Raises $17,000

GOOD FOR THE GOLD launched at the recent buying show in St. Louis, encouraged RJO members to bring scrap gold and monetary donations in order to support the newly-formed non-profit RJO Foundation. The initial goals of the Foundation are to build a foundation endowment and offer scholarships and/or grants for educational opportunities. Additional roles, such as disaster relief and charitable contributions, will be reviewed in the future.

Mike Doland, President of the RJO Foundation, states, “I feel education is an important part of a well-rounded jeweler. Encouraging them with a start on their education can make a big difference in keeping them in our industry. Our industry will be in need of young people following in the footsteps of independent jewelers, as many of us are facing retirement in the next few years.”

Oro International is located at 747 N. Church Rd. in Elmhurst, IL. www.orointernational.net Phone: (800-621-1671) E-mail: sales@orointernational.net

Photo by JewelerHub

RJO Member Services Coordinator, Hannah Green, updates the donations in the Foundation Booth at the RJO Buying Show in St. Louis.

Foundation Executive Director Mary Peterson, affirms, “With the next generation of independent retailers becoming more and more prevalent in stores, providing financial aid for educational opportunities is extremely important.” She continues, “Encouraging continued learning, whether through business classes, bench training, or specific industry courses, is vital for ongoing success in our industry.”

RJO Foundation Applications will be available to RJO members this fall.

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

Goforth Jewelry: Like Father, Like Daughter

CINDY TANNER IS ABLE to describe her family’s business history rather simply: “I am the oldest daughter,” she says, “and for my whole life, my family has owned a jewelry store.”

Cindy’s maiden name was Goforth, and the store and the family share the same name.

Goforth Jewelry opens its doors each day in Miami, OK, a town of nearly 15,000 that serves the Joplin, MO, metropolitan area, and is about 90 minutes northeast of Tulsa, OK.

The Goforth family has a long association with jewelry sales, highlighted by jewelry education across generations. Cindy’s father, Jerry, graduated from Okmulgee Tech with a degree in Jewelry Design, Repair and Manufacturing, and he was the school’s first watchmaking student.

“Dad’s first jewelry store was a momand-pop store before moving to a larger location,” says Cindy. “He

moved the family to Miami in 1964, then went into business with his brother, buying what was then Dawson’s Jewelry. When his brother retired, he focused on watch repair tradework, but after many requests, he started to sell jewelry. Goforth Jewelry was established in 1986.”

Cindy started working with her father in 1994, and after a little more than a decade, the store moved to a larger location along Route 66 in 2007. At that time, Jerry’s wife, Carol, was the store’s business manager. Jerry and Carol retired in 2012, though Jerry still drops by to repair watches a couple days a week.

Cindy and her husband, Bill, took over the store, helped by their son, Jeremy, a graduate of Tulsa Technology Center with a degree in Jewelry Technology.

The Goforths are new to RJO, having joined just this past spring. Cindy says they had a great time at the recent Buying Show in St. Louis.

“My husband enjoyed the golf tournament, and I liked the Gala photo booth,” she says. “We had fun getting our photos taken, and we received some very interesting pictures. Also, I won the $500 Cash Giveaway Grand Prize. So fun.”

Cindy says that the store has been a great teacher to her family, allowing them to treat customers as friends.

“We are very involved in our community,” says Cindy. Jeremy just completed the area Leadership Miami Class and is a member of the Rotary Club. We collectively are members of the Kiwanis and Pilot Clubs, and we have served on many commerce-related committees. We support many teams, schools, and organizations, and we are members of the First united Methodist Church, where Carol Goforth has played the pipe organ for more than 50 years and has served as uMW President longer than any other member.”

Goforth Jewelry is located at 23 North Main Street in Miami, OK. www.goforthjewelry.com Phone: (918) 542-2413

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

Is Your Best Customer Your Best Spokesperson?

IN MANY CASES your best spokespersons are your customers.

They are passionate about your business, in love with your jewelry, and many times they tout your customer service to friends and family alike. And, you pay them nothing—they pay you! Yet, few use testimonials from these customers to help entice others.

In my opinion, this is a lost opportunity! Excuses I typically hear are things like, “I don’t want to bother them,” “I’m just not comfortable asking them to do this,” and of course “What if they say no?”

Retailers who use testimonials tell me that these are not valid excuses.

Most customers are honored to be asked and willing to say great things about a business they like. If they are uncomfortable, they will politely decline and won’t think twice about it. As far as being comfortable asking (that can be an issue) once you see success and begin a testimonial campaign, it will become easier, and you will find customers might actually look forward to being asked.

So why are testimonials so effective?

A businessperson will always say great things about their business, their level of service, etc., but to have a regular customer say something about their experience with the business says so much more. If you don’t believe that, look at the explosion of websites that use personal testimonials and rating systems to evaluate businesses and services (everything from tennis shoes to restaurants to airlines).

How do you get a testimonial campaign started and effectively use them? Start with a handful of good customers, people who have bought jewelry from you for years. Ask them if they would be willing to share a few words about their experience with your business and to comment on a specific area: customer service, repair, selection of product, etc. This will give you a range of testimonials on various aspects of your business. Always use their first names but rarely use their last. This allows the testimonial to feel “real” without infringing on someone’s personal space.

Your campaign could be as simple as including them on your website or printing a few selective pieces from these testimonials, leaving them on your counter for potential customers to read while they browse the store.

To take it up a notch, cut a radio commercial with testimonials. In my opinion, it is always easier and just as effective to use a professional voice to read the testimonials “from actual customers.” A 60-second message allows you to tell a story about a specific moment between this customer and your business. Television also can be very effective, but a little tougher to pull off on several levels.

Start slow. Ask a few customers for their thoughts, and then use them.

You’ll find that people enjoy sharing their thoughts and others enjoy reading them. no one can sell as effectively as a happy customer. Try it!

Michael C. Woody is President and Chief Idea Officer of Capital Ideas. He has nearly 30 years of experience in television advertising and loyalty marketing. Phone: 515-556-5373.

E-mail: MichaelC@ideas2burn.com Website: www.ideas2burn.com

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RJO Award Winners

VENDORS OF THE YEAR Loose Goods: RDI Diamonds

BOARD OF DIRECTORS AWARD

Charlotte Preston Charlotte Preston Catalysts

LIFETIME ACHIEVEMENT AWARDS Finished Goods: Ostbye

Vendor: Richard Hahn Juergens & Andersen

Finished Goods: Stuller

Retailer: Rich & Nedra Perry Geis–Perry Jewelry

DIAMOND IMPORTER OF THE YEAR Sponsored by Schurhammer Mfg. Inc. Jeff Horlacher Horlacher Jewelers

Service/Specialty Products: EDGE by Abbott & Shapiro

2015 RJO SALES REPRESENTATIVES OF THE YEAR (tie)

Craig Swiderek Ostbye

Aubré Ford RDI Diamonds

Clock/Watch: Citizen Watch Co.

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RJO Prize Winners

Buying Show Sponsors

PRIZE DRAWING WINNERS

Four Prizes Donated by Jewelry Innovations 1st Place: Versa Jailbird Putter - Brian VanDuyne, Fernbaugh’s Diamonds & Fine Jewelry 2nd, 3rd and 4th Place: Portable Device Charger - nathan Strickland, Carol & Co. - Doug Cowell, Anderson Jewelers - Angela Getchel, MKS Jewelers Kindle Fire Donated by Darling Imports Don Yarbrough, DEY GEM Jewelry Corp.

Design Your Own Diamond Give-Away Donated by Ofer Mizrahi Diamonds Lori VanDuyne, Fernbaugh’s Diamonds and Fine Jewelry Thee-night Stay at K-Bars Resort Factory Tour, Limo Ride to Mt. Rushmore Donated by TR Jewelry Concepts MKS Jewelers $2,600 Free Opening Order Donated by Dizeo Jewels by Design

CASH GIVEAWAY WINNERS JEWELERS:

$100 – Gary Granger, Anderson Jewelry; Chip Stone, Stonecraft Jewelers

$200 – Rochelle Levine, Ruby & Sons; Kent Bagnall, Kent Jewelry; Earl Butler, KE Butler Jewelers*; Michelle Rayno, Geis-Perry Jewelry

Grand Prize $500 – Cindy Tanner, Goforth Jewelry CASH GIVEAWAY WINNERS VEnDORS:

$50 – Loc Huynh, Galatea Jewelry; Paul Bottomley, Marathon/Kiddie Kraft; Renee Signer, Start-to-Finish; Andy Concool, Jayden Star MEET-A-VENDOR CHALLENGE:

$250 – Bergey Jewelry $500 – Anderson Jewelry (Minden, nE) Grand Prize $750 – Stonecraft Jewelers* * Used winnings to make a donation to the RJO Foundation

GOLD FOR THE GOOD RJO FOUNDATION CAMPAIGN Although final tallies are not available at press time, we are anticipating more than $17,000 raised in the RJO Foundation’s initial Gold for the Good campaign.

Thanks for all members and vendors who made this initial campaign a huge success!

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

PRST STD US POSTAGE PAID BRAINERD MN PERMIT NO 472

The Ultimate Jeweler Resource

CALENDAR SEPTEMBER 2015 Labor Day RJO office closed All payments must be received in RJO office All invoices must be received in RJO office

MILESTONES

Jim Ellis, owner of Ellis Jewelers in Frankfort, In, and Lebanon, In, passed away on July 15. He was 85.

OCTOBER 2015

9 All payments must be received in RJO office

SAVE THE DATES

16 national Boss's Day

23 All invoices must be received in RJO office

E.B. Gray, of E.B. Gray Jewelers in Livingston, Tn, died January 19. He was 94.

Our thoughts go out to the families.

MARK YOUR CALENDARS TODAY

Abe Kordvani, RJO vendor member and founder of A&D Gem in new York, nY, died this past July.

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.