In the Loupe May 2016

INTHE

LOUPE

The Ultimate Jeweler Resource

IN THE KNOW WITH RJO

CEO and Chair ... Provider SEE PAGE 2

FROM THE RJO CHAT CHANNEL

If a subcontractor breaks a stone, who is responsible?

SEE PAGE 3

GET TO KNOW OUR HOST CITY: INDIANAPOLIS

SEE PAGES 6-7

VENDOR PROFILE

Jeweler Hub: Custom Marketing in Minutes SEE PAGES 8-9

MARKETING MATTERS

Assessing Digital Advertising SEE PAGE 10

50 Years Together:

Our Greatest Family Gathering Ever!

OUR RJO FAMILY IS GATHERING this July to celebrate our golden anniversary, and it’s sure to be one to remember. We’ll offer a wide variety of learning opportunities, serious business discussions, laughs with friends (old and new), a buying floor chock full of the industry’s hottest items at great discounts, food ... and ... drink ... desserts, and a number of tours, zips, cruises, escapes, and rides, for a little Indy rest and relaxation.

Come meet those vendors and members who have been part of the family for all of RJO’s five decades. Their participation—and that of all the others who have followed—have guided us as we’ve added more member benefits and services over the decades.

“I think a philosophy that has been guiding us for years says everything about who we are today,” says Mary Peterson, RJO CEO. “RJO is memberowned by retail jewelers to support retail jewelers.”

Online Registration is now open for the Show. Simply log in to RJO's website to register, and then make your hotel reservations at our host hotel, the Hyatt Regency Indianapolis, (or our overflow hotel, the Omni Severin).

Your printed Buying Show Registration Packet was mailed the first of May, so keep an eye out for it, and be sure to watch for the various deadlines, to ensure you help us celebrate 50 Years Together, July 23-25, in Indianapolis.

COVER STORY Scams

SEE PAGES 11-13

Art: Indianapolis Indiana Skyline by Michael Tompsett

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In the Know with RJO

by RJO CEO Mary Peterson

CEO and Chair ... Provider

I want to share with you a letter I sent to our RJO vendors. This experience reminded me to make sure we seek first to understand and then to be understood. It is important we consider where others are coming from or going through. This goes for all who are a part of our business and personal lives.

Dear Vendors,

I have a fun story to share with you all!

RJO COO Sarah Streb and I went to the SMART Jewelry Show in Chicago in early April as vendor representatives for RJO. I really thought I understood what you all go through, but I was humbled by our experience. Thus, I have to share some of our journey, just so you know how much I appreciate you even more.

• It was a little weird for us, since we weren’t running the show. We had to make sure not to reorder the appetizers if they were getting low; we didn’t think the organizers would appreciate the extra expense on their tab.

• We had to haul our material all over, including a really long, awkward banner box. We have much less than many of you, but have a new appreciation for juggling boxes and getting set up.

• Speaking of that banner ... you should have seen us trying to hang the banner. It was a comedy of errors!

• We rode the complimentary bus to the venue. We know many of you take advantage of this free service because you may not be reimbursed by the company (depending on your role). It was an adventure, but those bus stairs just killed my knees.

• We got to our booth, and low-and-behold, NO CHAIRS!!!!!! I was not happy, and of course we had to go to the decorator booth and request the chairs to be delivered to our booth. We understand they were trying to accommodate lots of last-minute requests, but they took good care of us, and our chairs showed up just a little bit late!

• One of our vendors kiddingly said to me on Sunday, ‘You better not leave the show floor early. You have to stay till 6:00!’ Well, we made sure to stay on that show floor and did not leave the show floor early. We even stayed 15 minutes later, to chat with some prospects!

• We forgot to turn in our name badges and took them home with us. Whoops!

• Good news is our booth was very busy, and we have some great new members coming your way.

One moral of the story is: I never want an RJO vendor not to have chairs in their booth. I am going to double-check myself!

Enjoy all your shows. I can’t wait to see you in Indy!

RJO CEO

Vote for the RJO Vendors of the Year by May 27

RJO’s Vendor of the Year Awards are presented at the fall buying show to those vendors offering the best products, services and marketing support to you, the RJO member. You may vote by clicking here. Voting closes at noon (CST) on Friday, May 27. Casting your vote is particularly easy this year, as all vendors eligible in each category are listed for you to select.

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From the RJO Chat Channel 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 the RJO website) Educational Seminars (at the Buying Shows)

Member-to-Member Incentive Program (Recruitment Program) Organized Buying Trips to Antwerp and Idar-Oberstein, and Israel

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)

Education on the Go Podcasts and Webinars Private Label Credit Card Service JewelConnect

Post: We have an apprentice (a part-timer for the past two years) who is subcontracted and still learning. She uses our equipment, but supplies her own tools. We pay her per-job (30-50 percent of retail repair amount). She pays no rent and does work for other jewelers with our equipment (she keeps 100 percent from that work). We paid for her schooling, and we continue to train her. She also is second-in-line to buy our shop when we retire (if our son does not want it). Is there a guideline for pay? If a subcontracted jeweler breaks a stone, are they responsible for it? Is there anyone else in a similar circumstance?

First Response: The jewelry store owner would normally be responsible for stone breakage. Jewelers Mutual has a rider for that in their policy.

Original Poster: I realize we have coverage, but we don't want the claims associated with more expensive stone breakage. We also don't want to absorb small stone costs, since we paid for her schooling. Our previous experienced out-of-house subcontractor replaced a stone if she broke it.

Do you think we are being unfair in our expectations?

Second Response: I do, because you are in a better position to afford that expense. However, if you want to place the burden on your subcontractor, I would put it in writing.

RJO Directory

RJO Membership Certificate

THE CHAT CHANNEL ON THE RJO WEBSITE (www.rjomembers.com) hosts a variety of interesting discussions each month. Here’s an edited exchange from last month that may be found in the RJO Jewelers Only area, under the heading “Subcontractor Pay”

Original Poster: While I see what you are saying, I think this situation is different. She is required to carry her own insurance, because she takes in work from other jewelers. I think that perk for her is greater than her being responsible for something she breaks. We did pay for her broken stones early in her training. When she acquired insurance, we raised the amount we were paying her for stone setting, to help pay for her insurance.

Third Response: I have to throw my two cents in here. If this bench person has two years experience and is still regularly breaking stones or diamonds, she needs to go back and learn diamond setting over or find a new field of employment.

Fourth Response: Pay her by the piece, salary, hourly or as a subcontractor. It’s your shop. Take in all the outside trade work you want; she's an associate and shouldn't be running a business in your business.

Contact the jewelers she does work for, and tell them all work moves through you. If there is something personal getting in the way, this would be a good time to air it all out. We've all run into problems over the years.

I like to tackle them head-on. My Dad always said we're running a business, so take care of business first, and everything else in life will fall into place!

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Improvements for Users Set for RJO Chat Channel

TO INCREASE TRAFFIC on the Chat Channel, RJO will be implementing some changes in the coming months to the feature’s sign-in, forum topics, forum access, recent activity, online status, and subscription links.

• Users will be automatically directed to the homepage upon sign-in, rather than having to click Members Home. This will allow easier access to the site.

• Users will be offered only five forum topics: 1) RJO Business 2) Looking to Buy 3) Looking to Sell 4) Social 5) RJO Headquarters

• The channel and all forums will be open to ALL Members and Vendors. We will no longer have jeweler only/vendor only forums.

• The “Recent Activity” board will be expanded to show the five (5) most recent posts. If there are more than five posts, a link to the rest will be provided. The recent activity will be shown only on the main forum index (where it currently resides).

• Users currently in the channel will be shown at the bottom of the main forum page. Each user’s name will be a link to their profile. Please note: Users will not be able to be hidden from this area.

• Topic/Board Subscription Links will be added above the board or topic and to the left of the “Search Chat Channel” link. The subscription links also will be placed below the forum information. This will allow users to subscribe to a topic they wish to follow and be notified when a new response is posted.

Fall Buying Trips Still Planned

AT THE END OF MARCH, coordinated terrorist attacks hit the Brussels airport. In response to this attack, the hosts for RJO’s European trips, which pass through Brussels, offered this message shortly after the news broke: As leaders of gemstone buying trips to Europe, we are deeply saddened about the bombing at the Brussels Airport. As news reports continue today about the terrible tragedy, we are reminded yet again of the world in which we currently live. So many of us have been through the Brussels airport—where one of the attacks occurred—and many will travel through it again in the years to come. The airport is a major hub and one in which we have always felt safe and welcomed. Safety of our RJO members has always been our priority. We try to do our best to be aware of our surroundings and our safety at all times. We are committed to continue that vigilance and will explore further ways to keep our members safe during our travels in these times. We must continue to live our lives and enjoy the travels that bring us success and friendships. Please join us today in keeping Belgium, and all of our overseas vendors, in your thoughts and prayers.

Sincerely,

Jeff Horlacher and Liz Schlauch; Connie and Steve Matsen

To learn more about the planned fall trips, contact RJO trip coordinator Connie Matsen (cmatsen@rjomembers.com)

2016 Dates

First Europe Trip Hosted by Liz Schlauch & Jeff Horlacher Antwerp: October 8-13 Idar-Oberstein: October 13-17

Second Europe Trip Hosted by Connie & Steve Matsen Antwerp: October 15-20 Idar-Oberstein: October 20-24

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NEW MEMBERS Albert’s Jewelers Albert Thomas Kingsland, GA

Dunbar Jewelers J Matthew Gilmore Yakima, WA

Park City Jewelers Ken and Cole Whipple Park City, UT

Bennett’s Fine Jewelry & Gifts Melanie Bennett Los Alamos, NM

Hess and Co Jewelers Eddie and Barbara Closer Lexington, VA

Paul’s Jewelry Designs Paul Chiaravalle Amherst, NY

Blocher Jewelers Mary DiCaprio Ellwood City, PA

Jewelry Doctors Jack Hinerman Independence, MO, and Overland Park, KS

Broadway & Fourth Jewelers Kristie Pooley Eagle, CO

K. Hollis Jewelers Rob and Karen Hillis Batavia, IL

Burrell’s Fine Jewelry and Design Steve Fischer, Robin Lies, Nathan Regan Wichita, KS

Mark’s Jewelry Jill Heins Saint Lucas, IA

Referred by: Darell Griner, Griner Jewelry Moultrie, GA

Referred by: Karen Fitzpatrick and Mark Guerin, Harris Jewelers Rio Rancho, NM

Referred by Aubre Ford, RDI Diaminds Rochester, NY

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

Coastal Jewelers Susan and Brian MacDonald Kennebunkport, ME

Des Jardins Rochon Jewelers Ivan C Rochon Rutland, VT

Referred by: Bob Bonaci, Bonaci Fine Jewelers Kent, WA

Referred by: Sue Parker, Nyman Jewelers, Escanaba, MI

Referred by: Aubre Ford, RDI Diamonds Rochester, NY

Love’s Jewelry and Gifts Arthur and Pamela Love Brevard, NC

Marlyn Jewelers Ron Hendrickson Dayton, OH 45415

Referred by: Johnny Wang, YCH San Francisco, CA

Pamela’s Fine Jewelry Pamela Chehade Spring Green, WI

Referred by: Dick Weber, Weber Brothers Lancaster, WI

Referred by: Blaine Smith, The Gem Smith, Inc. Bountiful, UT

Pickens, Inc. Jewelers Walter H Pickens, Jr Atlanta, GA

Referred by: Gene Poole, Hudson Poole Jewelers Tuscaloosa, AL

Reigning Jewels Fine Jewelry Jackie and Traci Wilkes Athens, TX

Referred by: Rudy and Marie Rihner, Rihner’s Jewelers Gretna, LA

Smith Jewelers Billy Smith III Franklin, VA

Referred by: Steve Long, Long Jewelers III Chesapeake, VA

Springer’s Jewelers Rick Beaulieu Portland, Portsmouth, and Bath, ME

Referred by: Ron Spain, Stuller Lafayette, LA

Treml’s Jewelry Jim Treml Lebanon, OR

Jewelers referring new members to our group 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.

New Online Billing Continues Rollout

RJO LAUNCHED ITS NEW ONLINE billing system at the beginning of this year. As you have probably noticed, the new online system is more userfriendly for members, and it is accessible with all version of Windows and Mac OSX. It also features

an easier-to-read statement screen, as well as a revised Payment Receipt function. Later this year, RJO members will see their regular statements updated in real-time online, as their invoices are received and posted in the RJO office.

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2016 Fall Buying Show •

Also known as Circle City, Indianapolis is the capitol of Indiana. Boasting a metro population of nearly 2 million, our host city is known for its low crime rate, great hospitality, and for its low cost of living.

Indianapolis is the 12th largest city in America, and the only major city not located on a river.

Kiwanis International calls Indianapolis home, and it is the corporate headquarters for Atlas Van Lines, Steak ’n Shake, Shoe Carnival, Cummins, Delta Faucet, Finish Line, Global Van Lines, and ITT Technical Institute.

Celebrities that are from Indianapolis include: Steve McQueen, David Letterman, Brendan Fraser, Vivica A.Fox, Oscar Robertson, coach John Wooden, Jane Pauley, and American Idol’s Adam Lambert. Indianapolis has provided a number of famous politicians: President Benjamin Harrison, Vice President Dan Quayle, and Senators Richard Lugar, Ted Stevens and Mark Warner.

Great writers also hail from this city, including Booth Tarkington, Kurt Vonnegut, and popular author John Green.

The town is also home of the Pacers, Colts, Indy 500, and the Black Expo.

We’ve pulled together some preliminary information about the Buying Show and its host city. We hope it helps you start your planning for July.

Get to know our Host City

Marcella Gruelle, of Indianapolis, created the Raggedy Ann doll in 1914.

The Indianapolis Motor Speedway is the largest stadium in the world with a seated capacity of 257,325, covering 253 acres.

Indianapolis isn’t a place known just for the best things since sliced bread — it actually is the birthplace of sliced bread. The Taggart Baking Company introduced a new type of “wonder” bread in 1930: Wonder Bread, sliced.

It is illegal for bars and restaurants to give drinks away for free.

The Fault in Our Stars, a popular young adult novel and subsequent well-reviewed movie, takes place in Indianapolis.

According to the Guinness Book of World Records, Kevin Silva of Indianapolis has 2,501 pieces of Batman memorabilia. His collection includes a lunchbox he carried to kindergarten and a child's black, felt cowl paired to a purple satin cape.

Indianapolis is famous for its Sugar Cream Pie—also known as Hoosier Pie—a dessert made mostly from whipping cream, sugar and butter. You may try it out at Locally Grown Gardens (1050 E. 54th St.)

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Indianapolis, IN • July 23-25 The average high temperature in Indianapolis in the late part of July is 84, and the low is 66.

Our Host Hotel: Hyatt Regency Indianapolis Winner of TripAdvisor’s Certificate of Excellence, this upscale, high-rise hotel and conference facility offers contemporary rooms with flat-screen TVs, smartphone docks, minifridges and large work areas. Amenities include an indoor pool, a hot tub and a fitness center.

There are three bars and restaurants—including a revolving rooftop eatery and lounge—and a coffee bar, plus a business center.

Recents comments from visitors: • Updated and renovated, with great views of the city.

• Nice, spacious room, very nice interior of the hotel.

• The team appeared to genuinely care about our group and making sure we had a great stay!

Book your rooms early by visiting RJOMembers.com.

The Hyatt Regency Indianapolis is located at One South Capitol Avenue in downtown Indianapolis.

Show Location: Indiana Convention Center

RJO’s hotels are connected to the center via a skywalk system. Also linked to the center is a four-story urban shopping mall, surrounded by a 10-block state park that features excellent museums, a green space and a nearby canal walk.

From TripAdvisor: I have been in many exhibit halls in my travels, and I have to say this is one of the best. It has a large hall area and the ability to have many conventions or meetings without running in to another event. The prevalence of vendors to grab your morning coffee or a light lunch is great, and the area around the hall has a large amount of hotels and restaurants to choose from, all just a short walk away.

Airlines Serving Indianapolis [ logos are links ]

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Vendor Profile

Jeweler Hub: Custom Marketing in Minutes

IF YOU TRAVEL AROUND the western part of Illinois, you come across Dixon, marketed as the boyhood home of Ronald Reagan, though it has also earned recognitions as both the catfish and petunia capitals of the state. Once in Dixon, you’ll find one busy advertising specialist. When Jim Grot is not working with one of the two area hospitals, he’s probably offering direction to the area’s multimillion dollar companies, or helping many of the town’s small businesses with their marketing.

Once he’s back in the office, Grot is also the owner of Jeweler Hub.

“Jeweler Hub started from the idea of retailers only having to go to one place to get all of their jewelry images for advertising,” says Grot. “All of the images in our library would meet a minimum standard, so the retailer would be safe using the images not only on a website, but they also would be good enough to use on a billboard.”

“Since we do jewelry photography and graphic design, we know the technical aspects and problems that often happen with jewelry images,” he continues. “We thought we could be the middle man to take away the stress of calling vendors and also reduce the time vendors spend sending out images that are often incorrect with what the retailer needs. We think it is such an important aspect for

independent retailers to look professional and keep images of inventory updated, that we teaming up with RJO to offer our image library for free to all RJO members.”

Grot says that he has been involved in the jewelry industry since around 2000, focusing on offering photography and graphic design services.

“It has taken six years of working outside regular, full-time jobs to develop this software,” says Grot, “because we believe that it will change the way the industry handles images and advertising materials.

We plan on making advertising faster and easier, so independent jewelers stay strong for decades to come.”

Jeweler Hub offers more than just an image library to RJO members.

“We have multiple subscription levels to fit many types of retailers,” says Grot. “We create designs for social media, billboards, postcards, magazine ads, posters, and any of these can be custom cropped for any advertising needs.”

Grot says that Jeweler Hub’s customers range from those who love to create their own work— yet don’t have the time or the design skills to create professional looking ads—to those who don’t want to deal with making ads at all. Jeweler Hub also can handle social media posting for the retailer, with a combination of jewelry ads, holiday greetings, and jewelrybased news articles.

“This way,” says Grot, “the retailer can stay focused on creating and selling jewelry, while their social media is being maintained by a company they can trust and is focused on helping the independent retailer stay strong and relevant.”

Grot says he is pleased with his reception into the RJO family and the partnership to offer the free image library.

“RJO is committed to keeping their members relevant and believes that Jeweler Hub will constantly evolve to make sure independent retailers stay competitive against internet and franchise stores,” says Grot. “The library is in early stages of growing, and we have a long list of vendors to be added and will work on constantly updating new images. During this early stage we’re asking that retailers give us style number lists, so we can focus on what is needed now.

There are millions of images that can be added to the library, so we want to stay focused on what is important in the short term.”

As one might imagine from a guy who doesn’t stand still for very long, Grot is looking ahead and sees a bright future for Jeweler Hub and RJO. “We have a long list of things we would like to accomplish in the near future,” says Grot, “but our main focus now is growing our library of images and adverting materials. Then we plan to incorporate having vendorproduced ads that can be

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customized to feature the pieces that the retailer has actually purchased from that vendor. Our goal is to provide complete ad campaigns that take no effort by the retailer at all.

We will handle complete design, printing, and distribution of marketing materials. We’re also working on offering the ability for retailers to make their own multi-page flyers and catalogs from predesigned templates, with inventory from all of their vendors. We are focused on what the retailer needs, so if we find that other services are more important, we will focus on getting those accomplished first.”

How to Sign Up for Jeweler Hub’s Image Library, Free to All RJO Members 1) Go to Jeweler Hub, and click on “Become a Member” 2) Fill in the information page, and use the Promo Code: RJO Library 3) Select “Register” You will not get access immediately to Jeweler Hub. “We strongly believe in keeping our business focused on the independent jeweler,” says Jeweler Hub’s Jim Grot, “so to protect you, we verify your membership in RJO to make sure you are not an internet store or franchise. Once we grant you access, we also protect the vendor by granting who has access to their images, so we will ask you to send us a list of vendors you use, and we will work on getting you access to their images. Once you are a member of Jeweler Hub, you will only have to contact one vendor—us—for all of your image needs. We handle getting all images from any vendor for you.”

Jeweler Hub is located at 1119 Palmyra St., Dixon, IL. Phone: 815-994-4079. E-mail: Jim@JewelerHub.net

NEW VENDORS Citi Bank Gray, TN

Larry Johnson Consulting Colleyville, TX

M & G Jewelers Inc. Rancho Cucamonga, CA

REGISTER TODAY! July 23-25, 2016

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PLAN NOW JULY BUYING SHOW!

50 Years Together July 23-25, 2016

Indianapolis, IN

Future Show Locations Tampa, FL

August 2017

Denver, CO January 2018

Savannah, GA July 2018

Minneapolis, MN February 2019

Nashville, TN July 2019

Schaumburg, IL

IT IS TOUGH TO ARGUE the

visibility of digital advertising.

It is everywhere these days.

I can’t even access the Weather Channel app on my phone without being greeted by a photo of my local hardware story or an animated grocery store delivery truck asking me to follow it to amazing deals!

FOR OUR

February 2017

Click. Assessing Digital Advertising

A quick spin around the websites of area media shows me that I can save (up to) 40 percent on paint, that a local bank is there for every big step in my life, that I can have kitchen cabinets designed and installed, that I can save $10 on an air conditioning check-up, and I can even ask the local mechanic a question. When I visit the site of my Gannett-owned metropolitan newspaper, a pop-up tells me that I can subscribe to the print edition for as little as $19.99 per year.

Alas, the pop-up tells me nothing about how at least three-to-four times per month the paper will be late or just not delivered!

All of these media have mandates to sell more digital space. These non-traditional revenue streams are being asked to fill the financial gaps where the traditional media are falling short.

So the simple question is: “Does it work?” Oh, if only there were an easy answer!

The obvious answer is, “Yes,” but the real question that a retailer should ask is if it is cost-efficient for the advertiser? That might depend on where your ads are, how often your ads get exposure,

and, of course, the item or service you are offering.

Like everything else, digital advertising efforts need to be assessed and judged to see whether it fits in with the goals of your own media plan. I winced recently at a headline in USA Today that read, “Print declared dead and digital is going with it.” This thought makes me a little nervous, and this is an article from their own media reporter!

Somewhat supporting the story noted above is a mid-April article in the Wall Street Journal, claiming that ad money is moving back into television, after finding that digital “didn’t live up to expectations.” The article also noted that advertisers were concerned about fake web traffic viewing numbers, generated by computerized “bots,” as well as the lack of consensus on how to judge when an ad is “viewable.”

I have several clients using digital advertising as part of their media buy, and they are happy with their results so far. I am neither pro nor con with the digital opportunity as it currently presents itself, but I just feel that it needs a bit more maturity —to be evaluated as other media are. It needs to fit in with an effective media strategy.

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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Cover Story

Scams LAST NOVEMBER, right before Thanksgiving,

Jason Braden, owner and designer at Jewelers

Workshop in Madison, WI, was walking past a

co-worker who was taking down an order for two

diamonds, with the sale valued at $13,500. He was quite pleased by this little pre-holiday gift, so he wanted to learn more about the order.

There’s a Ramsey Coleman on the line for you

“A man from Los Angeles calls our little store,” remembers Braden, “and said that he read that you can get better diamond prices in the Midwest. My sales staff processed the order as if everything were normal, got diamonds in, ran the transaction, everything. We Googled his name— Ramsey Coleman—and found nothing. It is for two diamonds. His credit card cleared. I am tempted to cancel the order, but $13,500 transactions are hard to simply let walk.”

Braden struggled about what to do. Not helping was the fact that he had spoken to another jeweler in Minneapolis recently, and his Minnesota colleague had spoken to the same guy, with the same story, and he was going to do

the transaction, but he didn’t have the stock to satisfy the order.

“My greedy little jeweler brain had already accepted this as not real,” confesses Braden, “so I delegated the whole thing to staff members who understood they would be fired if the package shipped.” With his fraud-detector senses going off, Braden considered options that might safeguard him, in case the transaction was a fraud.

“I think you have to run things through your logic filter,” says Braden. “There is no reason why, with all of the jewelry stores in the world, anyone is randomly going to call you from California because your unposted diamond prices or chain prices are going to be any better than the internet or their local jeweler. If it smells funny, it probably is.”

Braden eventually decided the only surefire, foolproof way to continue was to direct a wire

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transfer into a new bank account set up exclusively for the purpose of receiving funds from this new customer. Braden was not surprised, then, to learn that all calls regarding a wire transfer were not returned.

Braden posted an account of his story on RJO’s Facebook page, and he soon learned that Ramsey Coleman has been a potential customer of other RJO members. In fact a number of members followed up with their experiences:

From Julie Bergey, of Bergey Jewelry in Wisconsin: “He called me the end of October. I knew it sounded too good to be true! He said he was in Los Angeles, but gave me a landline number to a construction company in Seattle. He gave me the name of Ramsey Coleman and asked for loose diamonds for a ring and diamond earrings. When the information didn’t match up, I asked him to provide more information and told him we needed a full payment to clear before we could ship anything out. Never heard back from him.”

These scams are nothing new Scams directed at retail jewelers are not a particularly new phenomenon. Andy Russakoff, of Russakoff Jewelers in Skowhegan, ME, tells of an attempted scam that happened to him about 25 years ago.

“So I get a phone call from a guy who says he’s in the Navy—or the military—in nearby Portland,” begins Russakoff. “He explains that his parents are going to be celebrating their anniversary—50 years—I think, and he wants to get them a nice gift. Okay. He then goes on to say that John Dodge, a colleague of mine in the state didn’t have what he was looking for, and John recommended that he give me a call. That sounds good, I thought.”

Russakoff says that the caller was looking for two expensive items, a pair of diamond earrings for his mother and a gold bracelet for his father. The total was about $2,500, which Russakoff notes was a pretty nice sale back then.

From Candice Hower Milstein, of Wyatt Austin “I decided to do it, so I called the credit card Jewelers in Schaumburg, IL: “My experience in company, and the card cleared,” says Russakoff. “I October mirrors Julie Bergey. He said his remember specifically asking, ‘So, I’m NOT going to daughter went to the University of Illinois. The be liable for any chargeback, am I?’ They said ’no.’ name he gave was Or ‘Probably not.’ It was a long Ramsey, and his e-mail was time ago. It sounded like ‘no.’” ramseyc@fastmail.com.

We tried to call the The phone number was Russakoff felt okay with the purchase, and he even followed 206-309-4848, which was through on the customer’s police and the FBI to for a construction company. request to express ship it to an He said his budget was address in Pennsylvania. He says $16,000. His retired jeweler set up a sting so they he believed he used UPS for friend told him to ask for delivery, and in his rush to get only GIA-graded diamonds, could nab the guy. No the package ready and shipped, of course. No, I couldn’t he didn’t even have time to call help him.” one wanted to help. his colleague, John Dodge, to

As might be expected, investigation for this story into the name, e-mail address, and phone number resulted in no further information.

Sydney Nusinov, of Charles Nusinov & Sons Parkville, MD

thank him for the reference.

Later that same day, Russakoff received a call from the customer, this time asking if he could get a tracking number for the package. This seemed

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reasonable at the time, since the customer was hoping to get the package in time for the anniversary. So Russakoff shared it with him.

Soon after, Russakoff got a call from John Dodge.

“John said he felt something strange was going on, says Russakoff. “He told me that a guy had called him, that he was in the Navy, he wanted to buy some expensive jewelry for his parent’s anniversary, and that he had been referred by ‘Andy from Skowhegan Jewelers.’ John KNOWS that our store name is Russakoff Jewelers, NOT Skowhegan Jewelers. My heart sank.”

Russakoff called UPS and was told the package had not been delivered yet, though a first attempt had been made. He also found out that the delivery address had been changed to “one of the worst housing projects in Erie, PA. ‘Hold it!,’ I told UPS.”

“I called the FBI, and they wanted to let the package be delivered, so they could catch the guy,” says Russakoff. “I asked when I would get the jewelry back if I helped out, and they said it would be evidence, so it could be a couple of months. I decided against letting them use it.”

Russakoff eventually found out that the caller was an inmate at the Federal Penitentiary in Harrisburg, PA. A similar scenario played out several years later for Russakoff, and this time he helped the FBI, but with “a package loaded with junk.”

Russakoff’s stories ended happily, and one might think that retail jewelry scammers would come to realize that attempts like these just don’t pan out. But they must not, otherwise they wouldn’t be doing the same thing 15 years later.

“I’m a little foggy on the details, because it was like 10 years ago,” says Sydney Nusinov, of Charles Nusinov & Sons in Parkville, MD. “We had a customer who wanted to purchase a $15,000 diamond from us over the phone. The customer said he was in New York, and we are in Baltimore.

As I recall, I think we got a phone authorization, and the customer had all the information that went with the card (phone number, address, etc.). We processed the transaction, even though we were suspicious. We even told the credit card company that we were suspicious, but they approved it.”

Nusinov can’t remember exactly what tipped him off, but he says he found a phone number for the real person the credit card was issued to, and from that point on, knew it was a scam.

“We tried to call the police and the FBI,” says Nusinov, “to set up a sting to mail an empty box to the address they specified, so they could nab the guy when it arrived. No one wanted to help. I think the guy must have logged in to the card holder’s account and changed the billing info to his own phone number and address.“

Eight Tips for Spotting Fraudulent Orders

If you sell online or over the phone, there are a number of steps you can take to minimize the occurrence of fraud. One of the easiest to implement is to use address verification (AVS) and card code verification (CCV) for all cardnot present sales (i.e., online and mail order sales).

Next, be on the look out for suspicious sales. These include:

• Unusually large orders placed through the Internet without any contact from the customer.

• Rush orders for large quantities or high-priced goods. Crooks may ask to have an order shipped overnight so they know exactly what day the order will arrive and they can be waiting to pick it up.

• Inquiries from buyers promising to place a large order, but who want you to send them a list of what you sell.

• Missing information, or information the customer refuses to give such as a day-time phone number.

• Orders that are shipped to a different address than the billing address.

• Orders from foreign countries.

• Orders on US cards shipped to foreign countries.

• Billing addresses that don't match the information on file with the credit card company.

Source: www.businessknowhow.com/money/ credit-card-fraud.htm

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Warning others These last two incidences took place before the prevalence of social media, so Russakoff and Nusinov had few options to warn their fellow jewelers about the fraud attempts on them. Today, though, the ability to warn colleagues about suspicious activity, as well as share advice about fraud, is easier and broader.

The lesson is: Don’t be a greedy person. If it doesn’t make sense, it’s not right.

Rochelle Levine,

Sonya White Cantrell, of Cantrell’s Fine Jewelry in Kansas, offered this, “Think about the actual profit in your pocket versus the possible loss. It may simply not be worth the risk. Even though the sale looks big, consider what your cut will actually be.”

Rochelle Levine, of Ruby of Ruby and Sons Jewelers and Sons Jewelers in New York, knows the lesson New York from personal experience.

Jason Braden’s story was the Said Levine, “My exstarting post from a long thread husband fell for that scam on RJO’s Facebook page from this years ago. I was just glad I past fall. More than two dozen fellow RJO saw the sale and the package before it was members replied to Braden’s post, and many of shipped. I stopped the whole thing. The lesson is: the comments for this article were taken from Don’t be a greedy person. If it doesn’t make sense, those replies. In addition to describing similar run- it’s not right.” ins with Ramsey Coleman-esque characters, the posts also elicited a number of suggestions on Sydney Nusinov summarized these viewpoints, how to avoid being scammed. and he also threw in a little perspective of his own.

“The best advice is to keep your head, and don’t be Tricia Soule’ LaBiche, of LaBiche Jewelers in greedy. It’s a little harder now with the internet, Meridian, MS, wrote, “Listen to your internal fraud because it’s more plausible that someone from out detector. We had someone come into the store of state might find you online and would have a and make a purchase; the credit card was okay, legitimate interest in doing business with you. but we felt funny. It just didn’t feel right. The But, as I learned 10 years ago, we are not a customer got the ring, and the credit card famous enough store—and our prices are company said it was fraud about three weeks competitive, but not so unbelievable—that after. We lost the ring and the sale; about someone from New York would want to buy a $10,000.” diamond from us sight unseen.”

38%

54%

52%

More than one in three US organizations report being victimized by economic crime.

Cybercrime is one of the fastest-growing economic crimes, affecting more than half of organizations reporting economic crime.

Don’t believe local and federal agencies have the skills or resources to investigate and prosecute economic crime.

Source: PricewaterhouseCoopers, Adjusting the Lens on Economic Crime, 2016

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CALENDAR MAY 2016

JUNE 2016

10 All payments must be received in RJO office

10 All payments must be received in RJO office

23 All invoices must be received in RJO office

22 Retail Member Show Registration deadline

13 Vendor Registration closes

30 Memorial Day - RJO office closed

19 Father’s Day

23 All invoices must be received in RJO office

What Are Visitors to Your Website Using to Get There?

OKAY, SO WE CAN’T TELL YOU about your specific website, but JewelConnect, the RJO-exclusive marketing and promotion system has spent time recently looking at their statistics to figure out who is online, how they browse and what devices they use. The data can be applied to most websites, says JewelConnect’s Andrew Boundy, as there are common traits for all systems.

“Looking at devices and browsers gives us a better understanding of how people interact with the site and gives us ideas on how we may better engage with the user,” says Boundy. “It is easy to see that mobile has caught-up with PC and laptop traffic with almost a 50/50 split between mobile and PC/Mac-based operating systems. This clearly shows the importance of having a mobile-friendly site, as well as properly optimized speed and data efficiency, something we launched back in 2011. Also, it’s clear to see that although many RJO members prefer the iPhone and iPad, Android devices capture about half the market and should certainly be considered.”

Boundy says that having a website stable in all the main browsers is very important, with Chrome topping the usage scale and Safari not far behind (bolstered no doubt by being both desktop and mobile).

JewelConnect will be releasing and analyzing more data like this, as well as product-specific data, during their seminar at the Indianapolis Buying Show.

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.