In the Loupe - July 2020 Edition

I N

T H E

LOUPE

The Premier Jewelers Cooperative

July 2 0 2 0 • I s s u e 9 2

RJO Virtual Summer Buying Show August 27-29 AS WE ALL WORK IN NEW WAYS due to the COVID19 pandemic, RJO has been working overtime to help, by continuing to offer support, guidance, and opportunities for all members. When distancing concerns closed our annual Summer Buying Show, we responded with a new take on the popular Show.

RJO’s first ever Virtual Summer Buying Show takes place August 27-29 in ... your own homes. Or offices.

Or stores. Even though physical proximity has been removed, members will still experience RJO networking, education, and purchasing—all from their own computer or electronic device.

“We know a virtual platform may raise a number of initial questions for both our retailers and our vendor partners,” says RJO CEO Sarah Streb, “but I’m confident members will see the

advantages of the platform’s possibilities. Everything will be online, from the registration process to an updated and on-demand listing of our timely educational seminars.”

A Member Experience Guide is available for viewing here, and a video highlighting the Show’s platform may be viewed here. Our host platform includes quality tech support to guide you and your team to make the most of our virtual Show. Learn more about the Show on pages 7-9 of this issue.

Retailer Registration is open now through Friday, August 21, and you MUST be registered by then to attend the Show. To register online you will need to log-in at www.rjomembers.com and visit the Buying Show section. If you need help locating your username and password, contact the RJO office.

IMPORTANT Retailers will receive your log-in credentials for the RJO Virtual Summit & Expo the week of the Show.

Due to the host platform being used, we are unable to accept late registrations.

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

In the Know with RJO

New Ways THE IMPACT OF COVID-19 over the last several months continues to affect all of us. While I hear and read success stories of stores reopening throughout the country, we still have members whose businesses change day-to-day, as data and local ordinances evolve. These situations serve as a strong reminder we are challenged by an everchanging, global issue we all must work together to confront and overcome.

RJO works hard every day to support you with our industry-leading services and benefits. We were surprised as anyone with how quickly the virus spread and how retail nationwide was shut down. It created financial and logistical challenges for us and for you, and I’m amazed at how strong and professional the response was.

Unexpectedly, the new normal has created a more efficient RJO, demanding we find new ways to serve jewelers and vendors alike. When it came time to distribute our annual dividend payments, RJO leadership had to make hard decisions, which we knew might adversely affect already-struggling members. We communicated in a new way, provided straightforward and transparent information, and reinforced our commitment to our members.

We anticipated this COVID-19-related decision— and others like it—might be difficult to hear, and we were ready for some possible blowback.

Instead, the reaction was exactly what I’ve come to expect from this great organization. Despite much national hurting, nearly every response showed understanding, support, and encouragement. Even when we had to press hard and tighten some more

casual ways of doing business, we were met with clear-eyed acknowledgments, and everybody stepped up.

It was so gratifying, then, to be able to send out the first of our dividend payments this month. It was little later than usual, but the best timing for all of us. It was just another example of how leadership is blessed to be able to experiment with new and important business approaches, knowing members will be supportive, and sometimes even forgiving.

So, our experimentation continues, with our first virtual Buying Show. It has been a long time since I’ve overseen the creation of such a large venture in such a short period. While juggling the everchanging commitments and paperwork for the nowcanceled St. Louis Show, the best minds in tech, our RJO Board, and an amazing crew here in the home office, have all pulled together what we think will be another in our long line of successful Buying Shows.

You’ll find all the details in this issue, as well as in RJO emails in the weeks ahead.

During these challenging times, remember we’re all working for the same result: the health of our family, friends, customers, and colleagues; the reduction in the virus’ spread; an effective treatment and vaccine, and for our personal and business lives to return to normal.

Please stay healthy and be well. I’ve never been prouder to embrace RJOStrong,

Sarah Streb RJO CEO

RJO BOARD NEWS RJO BOARD ELECTIONS are typically held in April and May. As noted in the May issue of In the Loupe, due to our focus on COVID-19 concerns and helping stores in reopening, these elections were postponed until later this year. Information will be sent as warranted.

Ken Dugas of Stuller, a member of our Vendor Advisory Committee, retired from Stuller last month.

RJO would like to thank Ken for his service through the years. A call for applications to fill Ken’s position is planned for later this year.

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

From RJO’s Facebook Page SERVICES Centralized Billing Patronage Dividend RJO Website (rjomembers.com) Buying Shows (Fall/Spring) In the Loupe – RJO’s newsletter

THE RJO PAGE ON FACEBOOK hosts a variety of interesting discussions every day. Here is an edited exchange from a posting that appeared right before the Fourth of July: Post: Okay ... in 33 years this has actually happened three times. A customer just busts out singing, at the top of her lungs, the national anthem. (photo below)

Free Print and Radio Ad Library (on the RJO website)

Reply One: God bless her.

Educational Seminars

Reply Two: I hope she bought something.

Original Poster: I was in the middle of a bridal sale!

(at the Buying Shows)

Reply Three: Good for her.

Member-to-Member Incentive Program

Reply Four: THREE TIMES?! This has happened three times in your store?!

Whhuuuuu?

(Recruitment Program)

Organized Buying Trips to Antwerp and IdarOberstein RJO Directory

Reply Five: Did you make the bridal sale? Or did they leave?

Reply Six: Could she sing? Or was she terrible?

Travel Vouchers at Shows (offered at varying times)

Free Hotel Room Incentive (at the Buying Shows)

RJO Informational Email Blasts Purchase Vouchers (at the Buying Shows)

RJO Membership Certificate RJO Next Gen and RJO Succession Experiences Private Label Credit Card Service JewelConnect Scholarship Opportunities (from the RJO Foundation)

Original Poster: This is the first time it was the national anthem, but was the third time a customer has just broke out and starting singing.

Original Poster: She YELLED! It was a 6 on a 1-10 scale — but the volume was an 11.

Reply Seven: Happy 4th! Must have been the great selection in the store.

The ones you can’t hear are probably humming it!

Reply Eight: Back in the 80s, I had a customer who kept begging for an additional discount on a ring. He was very persistent, but nice about it and kind of funny. I tried to be funny too, and I told him he could have an extra 5% if he could sing a specific aria from an opera I really like: Mozart’s The Magic Flute. Guess what? He sang it in a perfect tenor voice, full volume. Turned out he was a tenor with the New York Opera.

He got the discount. One of my best moments in retail.

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

DPA is Now Natural Diamond Council (NDC) THE DPA HAS RELAUNCHED under a new name, Natural Diamond Council (NDC). The mission of the NDC is to promote the desirability of natural diamonds and support the integrity of the diamond jewelry industry. As an industry authority, the NDC will continue to invest in advertising globally, but has evolved to become a go-to digital publisher for innovative and educational content.

As part of the launch, the former consumer identity—Real is Rare,

Real is a Diamond—will be rebranded Only Natural Diamonds (OND).

The new Only Natural Diamonds website is a digital platform celebrating the remarkable heritage and values of natural diamonds and will feature a variety of inspiring and insightful coverage under six key pillars:

Epic Diamonds, Hollywood & Pop Culture, Love & Diamonds, Style & Innovation, Diamonds 101 and Inside the Diamond World.

RJOtext: RJO’s Communication Partnership with Podium ARE YOU INTERESTED IN RECEIVING TEXTS regarding upcoming Show announcements and other important information?

RJO is joining forces with Podium to offer RJOtext.

We are hopeful this will give us one more method of communication with our membership so we can keep you up to date with the latest RJO news and

RJO European Branding Opportunity Trips Canceled for 2020 SINCE THE LATE 1980S RJO has been hosting fall trips to Europe in order to distinguish our members as Direct Diamond Importers. Members not only benefit from their store’s distinction in their community, but also build upon lifelong friendships. To keep up-to-date on next year’s trip, stay in touch with RJO trip coordinator Connie Matsen at: cmatsen@rjomembers.com

information. And no need to worry—we promise we will not give out your number, call you in the middle of the night, or send you funny videos of crazy cats.

Well ... maybe cat videos ....

If you would like to receive text message reminders from RJO: Retailers need to complete this form, while Vendors need to complete this form.

RJO Next Gen Experience Postponed Until 2021 THE NEXT GEN EXPERIENCE, rescheduled for September in Oak Brook, IL, has been postponed until May 15 – 17, 2021.

The Experience features an up-to-date curriculum, and attendees work with other stores preparing for the future, through receptions, group dinners, roundtables, and curriculum sessions focusing on personal and business development.

Does RJO Have Your Most Up-to-Date Email Addresses?

If you’ve changed your email address lately or would prefer to receive RJO communications at a different address, please let us know.

Address updates and changes can be directed to Erin Sharp in the RJO office at: erin@rjomembers.com

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Online Marketing in a COVID World ”It’s been a tough few months, we can all agree on that,” says Andrew Boundy, VRB Internet Solutions, which provides websites and webbased solutions to RJO jewelers.

VRB operates JewelConnect.com, Repair.Jewelry, and RJOCustomHatch.com. Boundy and his team have ample insight into what’s happening online, and he shared some it recently.

According to Boundy, digital presence is critical when the store is not open, obviously. While COVID-19 has enhanced this “offhours” need to be available, it did not create it. Since the web is always on, buyers are active 24/7 online. He says his logs regularly

see browsing on sites between 3-6 a.m. from US users.

“So, let’s address what a store needs to survive in a digital world,” says Boundy. “It bears repeating that regardless of their size, stores need a modern, mobile website with product for browsing on the site (not necessarily buying, but browsing). Their site should clearly demonstrate their competitive advantage(s), core competencies, and community value. Every store is different in its own way, and the site should show that. If you have a site that is not (properly) mobile-ready, has no product or old information, or an ancient design, you’re missing business opportunities, perhaps now more than ever. If not, congratulations on a job well done.”

Boundy says stores need a social presence on Facebook, Instagram, and Pinterest. Other networks can

be used as well, but he considers these the top three, and each for different demographic reasons (>40, <40, and women respectively). This may be obvious, he says, but many stores have either no social presence or an outdated one. This puzzles Boundy a bit, since social networks are free, so cost is not an issue. If time is the issue, he recommends help from social managers found within RJO. Once these basic online assets are inplace, Boundy says a store can promote them.

“This is the part that often gets missed,” he says. “There is a tendency for website owners (not just jewelers, believe me) to assume websites and social marketing ’self-promote’ and to some degree that’s right. Sure, sites get indexed on Google, social posts get shared, etc., but one massive take-away from this recent event for us is the stores that actively push their digital assets have done (much) better than those who don’t. There are many, many ways to do this, all free.” Boundy offers this site to start: http://vrb.ca/reachingyour-customers/.

“We also have found,” he continues, “that recent weeks have seen a trend towards traffic normality. The traffic we monitor is people looking for stores, and we have seen an increase in

people looking for stores from our JewelConnect and Repair.Jewelry sites, which is encouraging.”

Boundy says his CustomHatch site is another metric he uses to look at buyer and store activity. With new vendors coming onboard to the system, and with a higher level of quotation requests happening in the last few weeks, he sees another example of the return to normality many are looking for.

“Simply put, the trend lines are upwards on all metrics we see, if not to previous levels, at least in that direction,” says Boundy. ”Custom is an amazing opportunity, and RJO was genius in providing CustomHatch.

Strategically, this is one of the best money-making assets I have seen.”

“The future is bright,” Boundy continues. “It may not always seem so, but it is. We live in an age where we can access buyers digitally, something unavailable to previous generations. Many marketing assets are free or inexpensive to use; remember when it was $20K for a decent printed ad in the phone book?

We’ve been doing digital since 1999, and our pitch has changed from ’why you need the Internet’ to ’you need a decent site to attract searches.’ Today, we add ’don’t let your site do the work; drive it, and use it as a tool to unlock business.’ ”

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

Vendor Profile

Ancora Designs: Taking a Second Turn at Success ON SOUTH HILL STREET in the financial district in downtown Los Angeles, across from Pershing Square, palm trees line the street in front of the building where Ancora Designs calls home. Inside you’ll find Danny Rubinstein, Ancora’s owner, working on their latest bridal designs.

Prior to opening Ancora Designs in 1982, Rubinstein owned Prisma Express for 30 years, along with two other partners.

“I decided to take my own path and continued operating the same company, but under a different name,” says Rubinstein. “I was inspired by American real estate businessman Steve Wynn’s rationale for naming his second hotel in Las Vegas the Encore, which means better than the first. I was committed to make Ancora better than my first company, and I’m proud I have reached my goal.”

Ancora Designs is a manufacturer of fine diamond jewelry in 14K, 18K gold, and platinum. Its bridal jewelry line is manufactured at their factory in Los Angeles, equipped with the latest jewelry making technology to meet the highest standard of quality.

“Well, I have learned to stay away from politics,” he says, “but we believe there is a competitive advantage in manufacturing all our bridal designs and doing custom work and special orders in our factory in Los Angeles. That’s ’Made in the USA.’ The ability to control delivery time, production, and quality control has given us an edge in the ultra-competitive industry. We add

tremendous value to the retailer with the ability to deliver product in a short period of time—sometimes less than one week—allowing the retailer to more likely close the sale. Also, by manufacturing in our own factory, we can serve our customer better and faster, as well as offer many services, such as: no minimum orders, custom design, minimal turnover time, and favorable terms.”

Just like other RJO vendors and jewelers, Ancora encountered disturbances from the outbreak of COVID-19.

“This year has been a real challenge as we know,” says Rubinstein, “but early in the year our bridal designs with a vintage look sold very well. Additionally, our fashion designs in all diamonds and combination of diamonds and color stones—precious and semiprecious—have been very successful and is offered at a great price point. We feel we will continue to see this trend now that the economy is reopening.”

Rubinstein says he believes his personal relationships with customers and Ancora’s commitment to excellence has enabled his success. He says understanding the customer’s needs and value has further cemented Ancora’s focus on customer service, which he believes is their true competitive advantage.

“We always go the extra mile to help and make sure our customers are satisfied and valued,” he says.

“I would like to encourage RJO jewelers to take advantage of our custom work capabilities, as well as CAD designing for any jeweler’s special needs, such as reproducing rings, making matching bands, and custom design.”

“RJO welcomed me since Day One and has great management and a great network of vendors and buyers,” says Rubinstein.

“I always feel welcomed by the group and have created great relationships—both personal and professional—with many members, buyers, and vendors alike. It feels like a family, and I would like to thank the RJO Organization for the opportunity to be part of it.”

Ancora Designs is located at 550 S. Hill St., Suite 1276, Los Angeles, CA Phone: (855) 262-6727 Website: www.ancoradesigns.com

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

Quck Quick Look • Quick Look • Quick Look • Quick Look •

RJO Virtual Summer Buying Show August 27-29

RJO makes its first-ever venture into an online Summer Buying Show this August, with the RJO Virtual Summit & Expo. Just because we need to keep a distance from one another doesn’t mean we can’t get up-close to all of RJO’s classic Buying Show opportunities.

The three-day event includes virtually everything you’d expect to find in a Summer Show, except: No travel required • No dress code • No photo ID on the Show floor No luggage to haul around • No worrying about the weather • And more!

Remember, retailers, to register for the Show by Friday, August 21. You’ll not want to miss out on being at this inaugural Show, and as always, there will be lots of fun and prizes!

Retailer Registration Deadline is Friday, August 21 Show Dates & Times*

Show Checklist

[ 9:00 AM - 5:00 PM CST each day ]

Retailer registrations must be received by August 21.

Thursday, August 27 Friday, August 28 Saturday, August 29

No registrations will be accepted after this date.

To register online you will need to log-in at www.rjomembers.com and visit the Buying Show section.

If you do not have a username and password, contact the RJO office.

Register your store to attend this Show today!

You will receive your log-in credentials for the RJO Virtual Summit & Expo the week of the Show.

Access your copy of the Virtual Summit Member Guide here.

*PLEASE NOTE Show dates and times are the hours tech support will be available, as well as the hours we are requesting booth reps to be available.

Attendees will be able to access the site outside of these hours to browse, learn, and play!

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

Show Overview To get an overview of the RJO Virtual Summit & Expo platform, you can watch a short video here: https://vimeo.com/332826716 RJO VIRTUAL SUMMIT & EXPO WILL INCLUDE: • Lobby • Welcome Entrance • Exhibit Hall • Vendor Booths • New Vendor Pavilion • New Vendor Booths • Learning Center Auditorium • RJO Educational Series • Sponsored Vendor • Affiliates Meet our New Vendor Videos • Networking Lounge • Leadership Chat Room

• Chat Room with scheduled and open chats for networking • Chat Room with scheduled chat times with members of RJO’s Leadership Committees • Awards & Recognition Room • List of all Sponsors, Vendor of the Year Awards, RJO Foundation Scholarship Winners, and Vendors partnering with RJO to offer deferred payments • Help Desk

• Virtual Buying Show Guide & Exhibitor Listings • Navigational Video • “How To” Guide • New Member Guides • Scoreboard Gamification Find “Gemmi” Game Leaderboard • Points Awarded for Engagement within the Virtual Environment • Prize Listings for Points and Purchasing

Fun & Games Games will be available on our Buying Show platform:

Where’s Gemmi Game One of our vendor sponsors will have their logo hidden within the platform 20 times. Members can try to find all 20 logos and be entered into a drawing for the grand prize of a GemLightbox.

Get in the Game Attendees can earn points by completing different tasks within the platform: - Visit a New Vendor = 20 points - Click on a Sponsor = 15 points - Login to the virtual environment each day = 15 points - Open a Chat with a Vendor = 10 points - Attend a Webinar = 10 points - Add items to your Briefcase = 5 points - Watch navigation video = 5 points Leaderboard List of Prizes iPad • Square Space for iPad • Square Space Terminal • Square Space Register • ZOSI Security Recording System • Additional Free Hotel Night at next Buying Show (4 total nights) • $500.00 Travel Voucher • Keurig Coffee, Latte and Cappuccino Maker • Olide Touchless Sensor Automatic Swing Door Opener with Two Infrared/Body/Motion Sensors • Apple Watch

Buying & Purchase Incentives Buying Can be Facilitated in a Number of Ways Vendors will select the number of content screens they want to organize and brand in their booth. Within those content screens, vendors will upload any content they would like to provide (i.e., links to online catalogs; Show specials and images; or links to Zoom Meetings, FaceTime, the Together app, or other livestreaming platform of their choice). Booth representatives will take their order through the chat feature within the platform, via email or phone calls and/or through their livestreaming link they provide in their booth.

Purchase Incentives Every registered RJO member will be sent a purchase record to record their purchases from each vendor and submit their purchase record to RJO following the Show.

Members will be entered into a drawing to win additional discounts on their Show purchases: • $10,000 – $20,000 = Ten drawings for 1% additional discount • $20,000 - $30,000 = Ten drawings for 1.5% additional discount • $30,000 – $50,000 = Ten drawings for 2% additional discount • $50,000+ = Ten drawings for 2.5% additional discount

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

Buzz Sessions

Facilitated by Kate Peterson INVENTORY INNOVATIONS

Let’s talk all things inventory. For most, the year was off to a good start—at least through Valentine’s Day. Past that, many were left with full cases, but no buyers. What have you done to move the inventory that would have been sold in the 2nd quarter under normal circumstances? What are you doing now? How did business conditions over the past several months change your plan for the balance of the year? Check in on this session to hear some of the most innovative inventory solutions RJO retailers have come up with for the 4th quarter and beyond.

STAFF STRUGGLES & SUCCESSES IN THE NEW NORMAL Let’s face it ... this pandemic experience has changed every one of us, and ensuring our staff is ready to work in today’s climate has brought on its own challenges. Laid off, furloughed, cut hours, unemployment, paid to stay home —How did you handle your staff through the pandemic lockdown? If your associates were being paid while at home, did you assign them community, client outreach or training tasks? What did they learn? What obstacles have you run into bringing your people back? Tune in to discuss the most pressing employee issues facing retailers right now, including potential staff reductions and PPP forgiveness, sales goals, the need for better developed tech skills, attitudes toward safety requirements, managing compliance with established guidelines, and motivation and fear.

THE POST-PANDEMIC CUSTOMER EVOLUTION Experts tell us evolutions in consumer behavior that might normally have taken a generation have happened over the past four months. From a new comfort with digital access, to a non-negotiable demand for omnichannel availability, to dramatically elevated expectations for service, to an educated insistence on transparency—the customer you are meeting today is different on many levels from the one you saw last February. On top of it all, every touchpoint now needs to be carefully executed to ensure safety for your customers and your associates. How is your store adapting? How are you drawing customers back, and once you do, how do you ensure you exceed their expectations? Join us to examine how the post-pandemic customer experience has evolved, to hear how other RJO store owners are managing the transition and to share some of your best ideas.

AND FOR OUR NEXT TRICK ... CONTINGENCY PLANNING & PREPARATION FOR WHATEVER THE FUTURE MIGHT BRING It’s probably safe to say none of us saw the COVID-19 pandemic coming. Like virtually every other industry across the world, we were caught unprepared, and many of us found ourselves scrambling in the days immediately preceding the shutdown to put together what essentially amounted to a survival strategy. While today’s news brings a wide spectrum of differing opinions on the status of the COVID-19 crisis, many professionals agree the potential for a second wave is real and dangerous. What do you know now that you didn’t know back in March? Should you be exploring a contingency plan for you, your team, and your business? How can you better insulate your business against the possibility of future disasters? In this session, RJO retailers will discuss their thoughts about planning for a potential next wave.

Join us and take this opportunity to share what went well for you and troubleshoot what didn’t.

RJO Learning Center Please Note: Some Topics May Be Subject to Change. Final Listings Will Be Available the Week of The Event

Network Your Way to the Bank Susan Ratliff, The Exhibit Expert How to Systematically Manage Your Sales Floor & Turn Over the Sale John Daugherty, Collected Concepts How to Profit from Facebook Events Bill Warren, Ascend Marketing Beating Burnout Kyle Bullock, Bullock’s Jewelry Inc. GIA Diamond Origin Report: Diamond Traceability Based on Science Matthew Tratner – Director, Global Business Development Dr. Karen Smit – GIA Research Scientist Turning Retail on its Head!

Creating a Dynamic Customer Experience (Inside and Out!) Lyn Falk, Retailworks Developing Leadership Skills and Leadership John Daugherty, Collected Concepts Get Found, Get Connected, Get Paid: 2020’s Customer Journey Jason A’ Alona, Podium Maximize Precious Metal Recovery, Precious Metal Markets & Green Certifications—All Your Questions Answered David Siminski, United Precious Metal Refining Why Your Advertising Isn’t Generating the Results You Want and the Two Most Important Keys to Dramatically Increase Response, Virtually Overnight Jim Ackerman, Ascend Marketing

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

Jewelers Mutual Group

What Jewelers Should Know: Anti-Money Laundering THERE ARE A LOT OF THINGS you need to focus on right now as you begin to reopen and keep your jewelry business successful.

Jewelers specifically need to be cognizant of Anti-Money Laundering (AML) laws. Complying with these laws can be tricky for jewelers, but one thing is for sure: if you don’t, you could face serious penalties, and there is no better time to learn than now. Learning isn’t the only thing you need to do, though — Anti-Money Laundering compliance for jewelers is required and needs to be reviewed on an annual basis.

instituted, but because of the risk criminals or terrorist organizations will target unsuspecting businesses. These corrupt individuals and groups buy your legitimate covered goods to unload their “dirty” money and then sell or trade it to finance their unethical operations.

The Financial Crimes Enforcement Network (FinCEN) defines money laundering as the process of making illegally gained proceeds appear legal. To prevent “dirty money” attempting to be made “clean,” Anti-Money Laundering laws were initiated in the United States beginning with the Bank Secrecy Act of 1970. Amendments made by the USA PATRIOT Act in 2001 include jewelers as part of the financial system, because of the substantial value gems, jewelry, and precious metals carry.

The regulations cover certain goods, including precious metal, precious gems and jewels, and jewelry made from those for which 50% of the value is derived from the precious metal/gems/jewels.

Generally, non-compliance would be uncovered during an IRS audit.

Regulators could enact two different types of penalties for non-compliance: 1) A civil penalty with a fine up to $250,000 or up to two times the amount of the transaction, not to exceed $1,000,000; or 2) A criminal penalty with a fine up to $500,000 and a maximum of 10 years in prison, or both. Remember, even if you are unknowingly used to launder money, you can still be charged for being negligent.

Given the possibility dirty money from illegal activities could be converted to clean money through trading jewelry, there are no signs these laws will be rolled back.

These laws are not necessarily in place because jewelers would behave unethically if they weren’t

Jewelers already know how important it is for them to keep their merchandise protected from fraud, but this has larger implications than simply losing merchandise.

What happens if jewelry businesses are not compliant?

If your business is not exempt, you are required to do the following: • Appoint a compliance officer to manage your AML program • Assess the risks your business faces • Create a written, customized program • Conduct ongoing employee training • Check customers and suppliers for risk factors • Appoint an independent tester to verify your program is current, appropriate, and effective

• Have your program tested annually • File appropriate federal forms when needed If that sounds like a lot, you’re right. Thankfully, you don’t have to guess where to start or go about creating your program without direction. Jewelers Mutual Group, together with the Jewelers Vigilance Committee (JVC), the industry’s legal compliance experts, is offering a new and improved online AML program: JewelPAC™.

This program combines JVC’s expertise regarding legal issues impacting the jewelry industry with our trusted guidance, and it helps ensure your supply chain is free of problematic activity out of your control that could harm your business.

Some of the valuable features in the program include: • Proprietary software that automatically creates customized documents required of you • Ability to administer employee education and training • Automatic updates that help keep your program up to date In addition to being required by federal law—and to maintain a relationship with your bank—a proven AML program also provides you peace of mind and pride with your customers knowing you are at the pinnacle of business ethics.

To learn more about Jewelers Mutual’s programs, including JewelPac, contact Jewelers Mutual at 800-336-5642, ext. 2118 or email: sales@jminsure.com

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

Jeweler Profile

Harvey Oaks Jewelry: 70 Years of Everlasting Beauty TAKING ON COMPETITION IN THE JEWELRY BUSINESS for more than 70 years takes a lot of talent and hard work. Harvey Oaks Jewelry is no stranger to either. In fact, one of the rotating images on its website is in black and white and shows the front of the store in downtown Fremont, OH, with a competing jewelry store on either side.

The store’s namesake, Harvey Oaks, moved to Fremont in 1949, where he first worked as a watchmaker, opening his own jewelry store the very next year. He soon distinguished himself from his competition by emphasizing quality merchandise and service above all else. In the next decade, Oaks mastered the art of goldsmithing while working with experts in the craft. By the early 1960s, Oaks had created the backbone of what the store was to become: a quality jewelry business capable of providing full in-house services. Gerald Gonya and Jim Parkhurst joined the staff in 1979 and 1982, and Oaks was able to pass on his industry knowledge and experience to a new generation of ownership.

Harvey Oaks features in-store custom design, goldsmithing, appraisals, and the “finest selection of diamonds and colored gems from around the world.”

It advertises it is the “ideal source for the quality jewelry and workmanship you desire.” The store is currently marking its 70th anniversary and celebrating by posting on their Facebook page and website, and noting it in their newsletter. They also had special pens made up to hand out to customers.

When COVID-19 hit nationally in March of this year, Harvey Oaks did its part.

“We closed the store voluntarily, but not knowing how long,” says Gerald Gonya. “Four days later, it was ordered by Ohio’s governor. Eight weeks later we were allowed to reopen. Needless to say, it has taken its toll on not only our business, but how we do business and the overall traffic.”

“The store’s current owners are Jim Parkhurst and me,” says Gerald. “My son Aaron is starting to buy my share of stock as I begin my journey toward retirement. I came from a banking and finance background, and Jim came from an agriculture background. Jim learned the bench trade from Harvey Oaks himself, while I handled the buying, appraisal work, and managed the store.”

Since then, with the addition of Aaron to the business in 2012, Gerald Gonya says Harvey Oaks Jeweler is primed and focused to carry on the same tradition into the future. He says Harvey Oaks Jeweler tries to live by the motto: “Quality products backed by quality service.” He says customers are many times surprised by the extensive inventory they carry of colored gemstones and unusual colored gemstones.

Helping with their extensive inventory are RJOsponsored trips to Antwerp.

“I personally have been to Antwerp about seven times, including a trip as a guest of Antwerp World Diamond Centre,” says Gerald. “Jim has been to Antwerp four times, and I have taken my son Aaron twice. We highlight the experience in our quarterly newsletter, and in postcards and other print materials—along with radio—to let people know Harvey Oaks Jeweler is more than just a jewelry store, we’re an important diamond store with the inventory we have to choose from. Customers do realize we are not just a small-town jewelry store.”

Harvey Oaks Jewelry staff, from left to right: Aaron Gonya, Gerald Gonya, Cindy Light, Sandy Lopez, and Jim Parkhurst

Harvey Oaks Jewelry is located at 134 S. Front St in Fremont, OH. Phone: (419) 332-0481 Website: www.harveyoaksjewelers.com

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INTERVIEW & BOOK EXCERPT

The Fastest Way to a Full Recovery

Earlier this month we received word an RJO member had recently released a book was doing quite well on Amazon. Specifically, it was sitting at #1 within the "Retail Industry" category. The book, The Fastest Way to a Full Recovery: Five Immediate Profit-Enhancing Strategies Jewelers Can Use Today to Create a Thriving Business, was written by “Diamond” Bill Warren, of Gold Mine Fine Jewelry & Gifts in Hudson, NC. Warren agreed to this interview with In the Loupe, as well as allowing us to run an excerpt from his book, which follows this interview:

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Q: You noted a significant transformation for you was the day you let go of being a jeweler and became a marketer. What was your path to embracing the importance of marketing?

A: The day I quit being a jeweler and became a “Marketer of Jewelry & Related Services” was very transformational. This occurred for me in the early 2000s, when I truly began to realize that “Marketing is the engine that drives your business.” After studying the great marketers, such as Dan Kennedy, Jay Abraham, David Ogilvy, and my friend Jim Ackerman (of Ascend Marketing) and applying the principles I learned, I began to see consistent and measurable growth in our jewelry store. Especially helpful to me was hiring Jim Ackerman back then, to coach me in learning good direct response marketing principles.

Q. What are some significant dates, from starting out as a jeweler, to turning into a marketer, and then realizing you had a solid plan to share?

A: I basically grew up around gem mining from birth. My “official start” in the jewelry business came in the summer of 1984, when I was hired as a goldsmith’s apprentice in a local store. By 1987 I was in management for a large jewelry chain in North Carolina. In 1993 my wife Angie and I opened our own jewelry store in Hudson, NC. After several years of slow- to no-growth, I really began to take

marketing seriously. It didn’t matter if we had the best jewelry, salespeople, and services, if no one knew we were there. In 2004, we began in earnest applying direct response marketing principles to our business and grew by 33 percent that year alone.

By 2007, my sales reps—as well as other jewelers— were beginning to take notice, and I was asked to speak to my state’s jewelry association. From there the seeds for Diamond Bill Marketing were sown.

I’ve been giving seminars and webinars ever since, for state jewelry associations, jewelry shows, and various buying groups. I’ve also done the same for other industries, including insurance, chambers of commerce, etc.

Q: Your book was published at the beginning of June.

Are there any new pandemic-related experiences since then about which you have insight or advice?

A: Since the book was published in June the one thing I’ve noticed is that as the CARES Act and its enhanced unemployment money began to dry up, there has been an uptick in precious metals buying from the public. Perhaps buying old gold or silver isn’t as big as it was during the Great Recession, but there is most certainly an opportunity there again as another revenue stream for the local jeweler.

Q: What is your history with RJO? A: My wife Angie and I have enjoyed being members of RJO for several years now, and we value the relationships made there. Not only are the discounts and rebates great, but the knowledge learned is priceless. I partnered with Jim Ackerman in giving a seminar to RJO a few years ago that was well attended.

Q: Is there a preferred resource for RJO members to purchase your book?

A: My book is available on Amazon in Kindle and paperback versions. It’s also available on my website: www.diamondbillmarketing.com in paperback, as well as an audiobook download. The newly completed audiobook also has additional “Gold Nuggets” and a bonus chapter. It came after the paperback was already completed.

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EXCERPT: The Fastest Way to a Full Recovery by “Diamond” Bill Warren Chapter One Be Everywhere ... Keep Smiling No matter the situation, the first profit-enhancing strategy is to engage in non-stop marketing and to be a perpetual positive force.

As I’ve grown my business and polished success, I’ve often been asked to present seminars and workshops, sharing what I’ve done and what I’m about to cover in this book. The audience typically consists of jewelers, gift shop owners, or other forms of retail operators.

The heart of my message is always: It doesn’t matter if you are or if you have the best goldsmith or gemologist in all the land. It also doesn’t matter if you are or you have the best salespeople in your store— those who could proverbially sell ice to an Eskimo. And it doesn’t matter if you have the most beautiful exquisite jewelry pieces in a fabulous showroom.

What matters is your message and getting your message out there. If people don’t hear your message and if nobody knows you’re there, nothing else about your jewelry business matters at all. Don’t get me wrong. Those things that I’ve just mentioned (quality staff, products, and display) are important. They’re simply not as important as getting your message out into the world.

I believe it’s critical to success to essentially be everywhere and always present yourself in a positive light… no matter how you may be feeling inside and what current stress you may be facing. This is what really matters. I’m often kidded about how “I seem to be smiling all the time.” Admittedly, I’m a pretty optimistic kind of guy and positive by nature. You’ve heard the “glass half full or empty” as a yardstick of someone’s outlook as optimistic or pessimistic. I not only believe that the glass is half full rather than half empty, I believe (and know!) the glass can always be refilled.

Location, Location, Location Location, location, location is the mantra in the real estate industry. It’s been my experience that in the world of jewelry sales and services, location doesn’t matter. I’ve shared about Hudson, NC, and yes, it’s as “small town” as I’ve described it. Despite that, I focused on being everywhere and knew the town limits weren’t my limits. I knew I wasn’t limited to selling to a total of 3,800 prospects. That could not be truer today than when I started, thanks to the technology that we have at our disposal.

Technology allows a jewelry store owner like me, and like you, to be accessible to almost everyone. Your ability to be everywhere is as limitless as the internet.

That said, it comes with a caveat: not everyone consumes media the same way, either online or offline. Case in point — consider the news. Clearly the days of only the local newspaper and one or two local TV and radio stations for news delivery are gone forever. Today, there is no shortage of media outlets for news, and I personally believe you should limit the amount of news you consume on a daily basis. Not everyone gets their news from a major broadcast or cable network. Many people rely on their computers for news. They boot up and see the headlines and “breaking news” on their home page. Honestly, that’s where I typically see my news. Social media plays a pretty big role in news delivery, regardless how accurate or inaccurate it may be.

As a jewelry store owner, you need to be found, plain and simple. If you aren’t, as I’ve said, nothing else you do matters. In fact, I’ll go so far as to say that if you don’t embrace this profit-enhancing tactic, you probably can stop reading right now. If you aren’t willing to be found, you won’t be able to replicate my success. That said, you also need to be found in multiple locations. You simply need to be found everywhere!

One of the keys to our success — a seven-figure business in a town of 3,800 — has been that our message, our store, and many times, myself personally have shown up regularly in a variety of places — platforms like YouTube, Facebook, Pinterest, Instagram, and all manner of social media outlets and other places.

And that’s not to mention the personal appearances I’ve made at a whole host of speaking engagements.

Because I know that people consume media differently and have their online hang-out preferences as well as offline exposures, I believe in a multi-channel approach to marketing — getting our message out and getting it out repeatedly across the board.

Notice, I included “offline exposures.” Yes, they still exist, and, for example, I am a huge believer in direct mail. Direct mail is a very affordable way to reach out and create a touch point, especially for your better clients. If you’ve been in business for a while, you probably remember the advent of email and email marketing. “Ding! You’ve got mail!” And we all stopped what we were doing to check it ... immediately. We felt important. Some marketers saw it as the holy grail of advertising, and suddenly, our physical mailboxes started to empty while our email inboxes overflowed

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to the point of requiring a law to eliminate or at least contain spam emails. Today, we can feel very inundated by email.

Now, a direct mail marketing piece that shows up in an almost-empty physical mailbox can get plenty of attention. Certainly, some offline advertising platforms that were a mainstay of getting noticed have certainly become outdated. Think yellow pages. However, radio and television ads still have a place and help you get your message out. Consider the various demographics you want to reach, and then think about where and how those people are consuming media.

As little as ten years ago, the reach of social media platforms like Facebook were unthinkable. Facebook and other platforms are basically free… although you pay with your valuable time or the time of the staff person you pay to handle social media. You can use them to build your brand, being found in many places, make offers, engage with customers and prospects, and build profitable foot traffic as well for your retail store. In our store’s success, I’ll share that we didn’t always worry about branding. We worried about building profitable, buying traffic, and the brand took care of itself.

Positively Positive In addition to being everywhere, you also have to keep smiling and be engaging. While being optimistic and having a positive attitude may not come as naturally to you as it does to me, it is a mindset that can be learned.

Your customers are looking for someone to give them hope, especially in trying times. In fact, we’re all looking for hope, whether that is in our business or in our personal and spiritual lives. Hope is a big driver.

Hope and a positive attitude tend to go hand in hand.

As I shared earlier, Angie and I have been through all manner of circumstances and challenges since we first opened the doors of The Gold Mine 30 years ago.

Actually, a recession hit when we first opened. Yeah, that was a lot of fun. I don’t have to tell you what people stop buying when money is tight. There was also consumer panic or at least trepidation when Y2K rolled around, followed closely by 9/11. The Great Recession saw folks tighten their fiscal belts like they hadn’t been forced to do in years, and for many it was the first time they had to closely monitor disposable income. As I’m writing this, our showroom is closed due to stay-at-home mandates as a result of the coronavirus pandemic. Despite all these things, our business continues to be successful because, I believe, our message is everywhere and is always coupled with our positive attitudes.

This hasn’t happened overnight. It has always been our approach, so we are reaping what we’ve sown. If you are facing tough times right now, I strongly encourage you to adopt the “be everywhere” approach. Unfortunately, far too many entrepreneurs cut their marketing budgets first when tough times hit.

Honestly, that is the absolute wrong thing to do. You may not turn your business around in a week or a month, but take these steps to start turning around now. Change course and start moving in the right direction rather than continuing down a path that is not leading you to the results you want.

Rest assured, I know that remaining positive in such tough times can be challenging, but I encourage you to do whatever you need to do to maintain positivity. It not only comes through to your customers in-person and in your marketing messages, it plays a role in what comes back to you. Perhaps you’ve heard that what you send out into the universe is exactly what comes back to you.

That is the basis for the Law of Attraction. Very simply, you get what you focus on and all thoughts turn to things eventually. If you focus on doom and gloom, that’s exactly what you’ll get. On the other hand, and this is why I believe in the power of positivity, when you focus on optimistic outcomes and allow those to be the drivers of your actions and behaviors, good things will come your way.

You may be quite skeptical about the veracity of the Law of Attraction and dismiss it as so much hooey. Of course, that’s your choice; however, much has been written on the topic, starting with Napoleon Hills’ classic, Think and Grow Rich. If you struggle to be positive and keep smiling, I strongly encourage you to uncover ways in which you can improve that. Maybe it’s reading any number of the thousands of books on the topic (after finishing this one, of course), listening to podcasts, receiving daily emails with inspirational quotes, or tuning into spirituality. Do what you must.

Yes, thinking positively will make a difference, but don’t overlook what else I said about it. Positive thoughts become drivers of action. Certainly, if you simply continue to positively visualize success without taking action, your results won’t be the same. Let those positive thoughts fill your mind and then inspire the action you take.

Goal-Setting Strategies First, set your goals and post them where you’ll see them daily. They might be monthly revenue goals, annual sales increases, an increase in the number of

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trunk sales, a website upgrade, etc. I want you to see them regularly. Again, simply looking at them won’t make them happen. But seeing them every day starts to be the impetus you need to always be taking action toward making those goals your reality.

When I look at setting yearly, quarterly, monthly, weekly, and even daily goals for my store, I have found a day planner to be quite useful. I also use digital methods (namely Google Calendar), but I still love to go back to my day planner because I believe that actually writing things down forms a memory imprint in your brain. When you look at it repeatedly, it reinforces that imprint. This is also exactly why I suggested the first step in your goal-setting strategy is to post your goals where you’ll see them all the time.

Yes, I look at my own goals daily.

So how do you go about forming a goal for a jewelry store? Some store owners may look at it and say, “Last April I did $75,000, so I’d like to increase this by 10% this April.” Or maybe it’s a bigger picture: “I did $1.5 million last year, and I’d like to increase that by ten percent.” While a lot of jewelers take this approach, and while these types of goals are certainly specific and measurable, I believe there’s more to it than that.

When I review my own monthly goals, in addition to revenue, I look at other factors like: • How much does it cost to bring in a new customer to the store? (An important number to know, by the way.)

• What do I need to do to bring in 500 of my regular customers who spend $250 or more this month?

• What should I be doing to reactivate a fading customer? Can I send a special offer and how many should I send? Who should receive it? (Obviously, if a customer hasn’t been in your store for the last five years, they’re probably not coming back, so don’t let it get that far. More on this in the next chapter!)

In goal setting, revenue is a key, but never overlook your profitability — it is equally important. Even if you sell $100,000 a month, but your expenses are $100,001 a month, you’ll be in trouble pretty quickly.

When I set my own store goals and the goals for my employees, we set three types of goals for the store and for each employee: a regular store goal we want to hit, a “stretch” goal to achieve (higher than the first goal), and a “super stretch” goal (highest of all). We also have a reward program set up for attaining each goal level. I believe you should reward employees for not only sales volume but for gross profit as well.

Again, you must always keep your eye on profitability and your employees should be doing the same thing.

When you reward on profitability, you automatically encourage them to do so.

When thinking about setting your goals, in addition to your revenue and profit targets, ask yourself: “Where do I want to be as a store or what would it take to do $100,000 this April instead of the $75,000 we achieved last year?” Consider the metrics I just covered and use those as a starting point ... then put on your thinking cap to develop additional ones that work for you.

No matter what goals you set, keep them in front of you and be sure you look at them for inspiration and motivation on a daily basis. If you don’t know where you’ve been, how are you going to know where you’re going?

As I said, I look at my goals every day and do so with a very positive attitude. Day in and day out, you’ll always see me smiling. I know that it makes a difference in my success.

Gems of Advice to Help You Polish Your Actions • It doesn’t matter what your skills (or those of your staff) may be or how exquisite your products are... if no one knows you exist. Get your message out there.

• Is the glass half full or half empty? How about we adopt the thinking that the glass can always be refilled!

• While technology now allows you to be anywhere, remember your customers consume content differently, so you have to be everywhere.

• Online exposure through social media, email, YouTube, etc. is great; however, there is still a place for traditional marketing avenues like direct mail.

• Consider the Law of Attraction and do whatever you need to do to remain or become more positive.

• Do whatever you must to keep your outlook positive: books, podcasts, inspirational quotes, spiritual reading, etc.

• Set your goals and post them where you will see them continually. Let that be your impetus to take the action you need to take to make those goals your reality.

• Your goals need to encompass more than revenue and profit numbers. Always ask yourself what it will take to achieve those metrics in order to improve your chances of hitting the goals you set.

• People always want hope. Deliver that and you can be successful even in the most challenging times.

• Keep smiling.

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MILESTONE Mike Youkilis, of Midwest Diamond Distributors in Cincinnati, OH, passed away on July 11, 2020.

He was 71.

Our thoughts go out to the Youkilis family.

CALENDAR August 2020

F

September 2020

10 All payments must be received in the RJO Office

6 MRC Prospective Vendor Applications due

21 Retailer Registration closes for Virtual Summer Buying Show

7 RJO Office closed — Labor Day

23 All invoices must be received in the RJO Office 27-29 RJO Virtual Summer Buying Show

10 All payments must be received in the RJO Office 23 All invoices must be received in the RJO Office 25 RJO Foundation Scholarship Applications due

NEW MEMBERS Touch of Class Jewelers Ken Perales Dickson, TN

Golden Dreams Jewelry Paulette Embrey Belmont, MS

Referred by Star Gems, Norcross, GA and Stuller, Lafayette, LA

Referred by Bill Warren, Ascend Marketing, Riverton, UT

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.

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