In the Loupe

I N

T H E

LOUPE March 2014

Issue 54

Southern Splendor Show a Winner!

JEWELCONNECT LAUNCHES NEW MARKETPLACE

Move some of your nonmoving stock. SEE PAGE 4

MARKETING MATTERS: TO ERR IS HUMAN

What do you do when a mistake is made? Here are tips to turn an “Oops!” into SEE PAGE 7 a “Wow!”

IS SILVER THE NEXT GOLD?

The Ultimate Jeweler Resource

The Gold Rush appears to be over for retail gold SEE PAGE 11 buyers.

THE HEADLINES in the Savannah papers were all about the unexpected snow and cold temperatures. But the headlines to come out of the Southern Splendor Buying Show at the end of January were filled with warm receptions, good cheer, great interaction, and deals on the show floor. From the well-attended seminars and keynotes, to the new Idea Center, the hundreds of RJO attendees were treated to another record-breaking show.

Southern Splendor featured a signature schedule of educational seminars, camaraderie, new and exciting lines, and accompanying deals. Throw in some tours and great food, and all who attended surely felt like winners.

Says RJO CEO Mary Peterson, “We launched a new show app for mobile devices, as well as the Idea Center with this show, and both were very wellreceived. Also the southern hospitality was terrific. We hit some bumps with the weather, but our host city and hotels made everyone feel right at home.”

Be sure to mark your calendars for the next Buying Show: There’s No Business Like Show Business, August 16-18, in Minneapolis, MN.

NEXT GENERATION EXPERIENCE

RJO, along with sponsoring vendors Stuller and RDI, will launch the first-ever Next Generation Experience, from May 17 -19, 2014, at the Hyatt Lodge in Chicago, IL.

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

In the Know with RJO by RJO CEO Mary Peterson Did ’ya know?

Buying Shows

• The Savannah show was a big hit with lots of learning and buying. So mark your calendars now for this August 16-18 in Minneapolis.

• We created an event app for the show in Savannah, and it was a great hit. We will continue to have it at all upcoming shows.

• The Idea Center was created at Savannah and allowed members to have one-on-one consultations with seminar speakers and social media trainers.

• We will continue to offer new and exciting offerings at future shows.

Education

• We offer a webinar once a month from our “Education on the Go” series. You can listen to it live or go to our website to watch it at a later time.

Past webinars are archived on the RJO website for your convenience.

• The RJO website is a great resource, so check it out often.

• The best way to get additional education and learn from your fellow members and vendors is by attending the RJO shows.

Opportunities

• RJO had a great opportunity when we paid out more than $4.9 million for patronage dividends (a 4.46 percent payout-per-member based on 2013 sales).

Look for your second check at the end of May.

• Speaking of patronage dividend checks, you should think about using part of it to attend our great sponsored buying trips in October. All trips offer great incentives and marketing materials.

Antwerp: October 4-9 and October 11-16 Idar Oberstein: October 9-13 and October 16-20 Israel: October 17-25

• Online billing is available via the RJO website. Now it is even easier to pay your bills with our online program!

Thanks for making 2013 such a great success, and please accept my best wishes for a terrific 2014!

RJO CEO

P.S. Please let us know if you have any ideas for other educational opportunities you would like us to offer, or speakers you think may be good for our members.

Spring Buying Show 2014 • Southern Splendor • Savannah

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

From the RJO Chat Channel

THE CHAT CHANNEL ON THE RJO WEBSITE (www.rjomembers.com) hosts a variety of interesting discussions each month. Here’s an edited post—and responses to it—that can be found in the RJO Jeweler Business area, under the heading “Does anyone have any experience with consignment jewelry?”

SERVICES

CENTRALIzED BILLING

PATRONAGE DIvIDEND

Post: We are thinking about doing a small case of consignment jewelry. Thinking that we should charge a $25-$35 “check, tighten, and polish” charge up-front, then 30-40 percent of the sale. Not sure if that is competitive or not. Any thoughts?

RJO WEBSITE (RJOMEMBERS.COM)

BuYING SHOWS (FALL/SPRING) RJO CHAT CHANNEL

IN THE LOuPE – RJO’S NEWSLETTER

FREE PRINT AND RADIO AD LIBRARY (ON RJO WEBSITE)

THE

EDuCATIONAL SEMINARS (AT THE BuYING SHOWS)

MEMBER-TO-MEMBER INCENTIvE PROGRAM (RECRuITMENT PROGRAM)

ORGANIzED BuYING TRIPS TO ANTWERP AND IDAR-OBERSTEIN, AND ISRAEL RJO DIRECTORY

TRAvEL vOuCHERS AT SHOWS (OFFERED AT vARYING TIMES)

FREE HOTEL ROOM INCENTIvE (AT THE BuYING SHOWS)

RJO INFORMATIONAL E-MAIL BLASTS

PuRCHASE vOuCHERS (AT THE BuYING SHOWS)

RJO MEMBERSHIP CERTIFICATE

EDuCATION ON THE GO PODCASTS AND WEBINARS PRIvATE LABEL CREDIT CARD SERvICE JEWELCONNECT

Response One: Everything small, we purchase outright. $5,000 and over, I will consider consignment (but I would rather pay less for it and own it). We are a small Mom and Pop with only 900 square feet of floor space and not in an affluent area. If a client wants more money for their stone, we will take it on consignment and let them “help” set the price. I suggest you set up an Estate case, or a consignment case that is all-encompassing. Almost 90 percent of our sales come from two Estate cases built in the 1870s; they produced almost $12,000 per square foot last year. That’s not a typo. It’s a great niche that sets you apart from the chains and mall stores.

Response Two: I had a consignment case for a few years, and it was just a pain in the a$$. Those people would call or stop by every week to see if their stuff sold (usually not). I want to sell my stuff first! The end of that case came when I had a grab-and-run of a couple pieces, and I had to deal with my insurance paying up on these. It was time consuming. That case wasn’t worth the time or money. My suggestion: Don’t.

Response Three: Same experience as above. I very rarely consign. I prefer to buy outright and handle the jewelry as I please. I currently have two pieces from very good customers.

Response Four: I prefer not to consign, but will—on occasion—if the piece is unique or fills a hole. We establish the minimum amount they will accept. If I can get a good mark-up over that—fine. If not, I send them to the consignment-only jeweler around the corner.

Spring Buying Show 2014 • Southern Splendor • Savannah

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

JewelConnect launches RJO bargain “Marketplace”

JEWELCONNECT, the RJO-exclusive online marketing and productivity system used by more than 600 RJO members, recently launched their new “Marketplace” system for retailers in Savannah.

“Simply put, Marketplace allows retailers to offer their non-selling items to other RJO retailers to buy” says Andrew Boundy, JewelConnects’ lead designer. “Lots of stores have items they find hard to retail, but in a group the size of RJO, every piece can have a retail home. It’s all about a simple system to find a bargain and sell great items in your store within the RJO group” he added.

“I hear time and time again from RJO members that they are surprised at what sells for other members,” says RJO CEO Mary Peterson. “JewelConnect’s Marketplace will allow jewelers to move items that aren’t so hot for them, plus have access to popular items that may not be selling for another member.”

“I placed seven items in the Marketplace at the end of February,” says Steve Swan, of Swan Ltd. Jewelers in Lake City, MN. “It’s too early to know how it will work, but the idea is great. I don’t have to mess with my old stock either, taking it apart for scraps. I really look forward to its growth.”

“Marketplace is a great way to move some of our old friends,” continues Swan, “because what's old to us is new to them. We are always looking to add to our bottom line, and getting a bargain from another RJO member helps us both out. “

Marketplace is in Beta testing at the moment, but live on the JewelConnect system. More items will be added to the system over time and the entire facility expanded.

“We’re excited that we can give the group another way to find great and profitable items, free-up some capital by liquidating non-moving stock and trade as a group” says Thomas Roethling, JewelConnect’s data manager.

The system is located at www.jewelconnect.com and the retailer log-in is on the top right of the screen. The new feature is highlighted in red to introduce everyone to it.

JewelConnect also loves feedback, so if you have any comments, let them know at sales@JewelConnect.com

Spring Buying Show 2014 • Southern Splendor • Savannah

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

RJO Year in Review: 2013 AT THIS YEAR’S SPRING BUYING SHOW in Savannah, RJO CEO Mary Peterson shared with members the state of the organization, and her data showed that RJO is growing and improving on nearly all fronts. Here are some highlights:

PLAN NOW FOR OUR NEXT BUYING SHOW!

There’s No Business Like Show Business August 16 – 18, 2014 Minneapolis, MN

• Jeweler purchases were up 4.66% from 2012

• The patronage dividend percentage was 4.46%, totaling more than $4.9 million in payout • RJO welcomed 41new stores, comprising more than $2 million in purchases

• Seventeen new vendors were welcomed

• New online billing was highlighted; members may now view statements and pay bills online

• RJO’s new Buying Show app was demonstrated; the response has been excellent • The RJO Idea Center was introduced

Spring Buying Show 2014 • Southern Splendor • Savannah

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

Future Show Locations

January 2015: San Antonio, TX

August 2015: St. Louis, MO

January 2016: Phoenix, Az

July 2016: Indianapolis, IN

February 2017: Tampa, FL

August 2017: Denver, CO

This October: Visit Europe or Israel

RJO Sponsored Trips 2014 FOR MORE THAN 25 YEARS, RJO and participating retailers have experienced on-going success buying diamonds directly from the source, beginning in Antwerp. In 2006 RJO extended these trips to include Idar-Oberstein, Germany, the colored gemstone capital of the world. Last year RJO initiated a completely new trip to Israel.

While more complete and updated information on all of these trips can be found on trip-dedicated web pages on the RJO website, here’s a rundown of the trips for this fall.

First Europe Trip Hosted by Liz Schlauch & Jeff Horlacher Antwerp: October 4-9 Idar-Oberstein: October 9-13

Second Europe Trip Hosted by Connie & Steve Matsen Antwerp: October 11-16 Idar-Oberstein: October 16-20

Joining the buying trips to Antwerp and Idar-Oberstein allows you to focus on your diamond business while RJO takes care of the rest.

When you take advantage of this outstanding opportunity, you’ll qualify for these incentives:

• First-time travelers receive $500 toward travel expense • Free 19-inch Tv/DvD player, with Antwerp Advantage DvD

• Personalized DvD filming at Fall Buying Show • Overseas hosted dinners • “How To” marketing guide • Entry into a drawing for 1ct tw. diamond studs Israel Trip Hosted by Jeff Wickersham and Jennifer Zacharias October 17–25

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

RJO and sponsoring vendors will provide the following complimentary marketing support: • Personalized DvD filming at summer shows • Direct mail postcards • Duratrans poster • In-store poster

Spring Buying Show 2014 • Southern Splendor • Savannah

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

To err is human, to forgive divine

Marketing Matters

THAT TITLE—WRITTEN BY ALEXANDER POPE more than 300 years ago—pretty much proves that he never worked retail!

These days it sometimes feels like customers cannot be pleased.

Strange as it sounds, it is as if they want to have something go wrong so that they can gripe and complain. If it gets bad enough and they aren’t pampered just right, they might threaten to call their lawyer, or worse. With social media these days, they might have more “friends” than they normally would have in the past.

We are all human, and we make mistakes. We are never going to make everyone happy, but as long as we do our best, we should be able to feel good about our efforts.

There are a few keys to making the customer happy.

Deal with it immediately!

The longer you wait, the worse it becomes. Sometimes that is tough to do because you don’t have all the facts. In that case, it is essential

to tell the customer how sorry you are and that you need to get some more information and that you will get back to them immediately.

Then? Do just that.

“I’m sorry!”

We as a society struggle with this phrase. We don’t like to make mistakes, but they happen. No one is perfect. Even if it is not fully your fault, muster all the sincerity you can, and tell the customer how sorry you are. This will go a long way to calm the situation.

The severity dictates the response.

If it is a minor mistake like a forgotten receipt or poorly wrapped gift, fix it quickly and go above and beyond the customer’s expectations. Drive the receipt to their home, go to their home or office and re-wrap the gift, etc. Do it quickly, and do it well.

If it is a little bit bigger mistake, then the key is that the response is bigger than their expectations.

Imagine a nervous young man on his knee in a busy restaurant, he

proposes and hands his fiancee a beautifully wrapped box that, for whatever reason, is empty. (It happens—check out the RJO Chat Channel). Surely everyone will laugh about this later, but at the time this is a major tragedy.

A humble and sincere apology and a small token of apology (an annual cleaning? personal pickup and delivery? a special gift?) will remind them what great customer service you offer, even in bad times!

The key is to act quickly, apologize sincerely (even if it’s not your fault) and to go beyond expectations with your response. This will fix 99 percent of the mistakes.

Remember that you will never please everyone, but you should endeavor to do your best to try.

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

Spring Buying Show 2014 • Southern Splendor • Savannah

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

RJO SERVICE AWARDS:

Linda Brown RJO staff for 25 years of service

Award & Prize Winners PRIZE DRAWING WINNERS: Electronic Wine Opener Donated by Federated Insurance Lisa Pribyl, Cahill Jewelers, Inc.

$200 American Express Gift Card Donated by Jewelers Mutual Deb Borgemoen, Wickersham Jewelry, Inc.

Tom Davis Many years of service on the Merchandise Review Committee and two terms on the RJO Board of Directors

Preciosa Crystal Purse Donated by Aladdin Gold Creations Jennifer Kidder, Paul Gross Jewelers $200 Legal Seafood Gift Card Donated by Connoisseur Products Mark Smith, Plaza Jewelers

One Ct. Solitaire Diamond Donated by Bauman Massa (through a push notification contest) Evan Ritter, Ritter Brothers Diamond Fashion Sample Line Donated by A. Neal Originals (“Like Us” on Facebook contest) Barbara Hays, victor Settle Jewelry, Inc.

Speed Brite Ionic Cleaner Donated by Gesswein Co. Rick Swank, Swank’s Jewelry

.48 Ct. Floating Diamond Pendant Donated by Paul Reiser & Associates Paris & Dolly vonRabenau, Paris vonRabenau Jewelers

22” TV/DVD Player Donated by Ostbye Mike Noonan, Elmquist, Inc.

Southern Gift Basket Donated by Concept Marketing Yocom Jewelry

“Southern Flower” Earring Assortment Donated by Concept Marketing for “the person who says the most southern phrase” contest Janice Zerbe, zerbe Jewelers, Inc. (for the phrase “Well, butter my buns, and call me a biscuit.”)

CHARITY DONATION RJO was proud to donate $430 to The Christian Girls School of Pasrur, a young girls’ school in Pakistan. The money will go toward the purchase of computers, desks and chairs.

Spring Buying Show 2014 • Southern Splendor • Savannah

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

CASH GIVEAWAY WINNERS (JEWELERS)

$100 Wendy Santa Maria, Caesar’s Jewelers Connie Thurmond, Connie & v. Cross Jewelers

$200 Charla Hall, Baker & Baker Teresa Swank, Swank’s Jewelry Earl Butler, K E Butler Angie Becker, Becker Jewelers

$500 GRAND PRIZE Randy Pedersen, Diamond Center $50 CASH GIVEAWAY WINNERS (VENDORS) K. Girdharlal • Leddel Designs, Inc. Aladdin Gold Creations, Inc. • Bulova

MEET-A-VENDOR CHALLENGE: Members were “challenged” to meet ten vendors they have never purchased from before. If they collected the business cards of these vendors they were entered into a cash drawing. Winners were: Hanson’s Fine Jewelry, Forest City, IA ($250) Anderson Jewelry, Minden, NE ($500) Becker’s Jewelry, Mt. Pleasant, IA ($750 Grand Prize) BEST IN SHOW – VENDOR SPECIAL Concept Marketing They will receive 20 percent off of their booth fee at the upcoming show in Minneapolis.

Buying Show Sponsors RJO thanks the vendors below for their generous sponsorships of the RJO Southern Splendor Buying Show. Their support is greatly appreciated and provides the retail membership with wonderful perks throughout the show.

A & D GEM CORPORATION ALLISON-KAuFMAN BAuMAN-MASS JEWELRY CO. BENY SOFER, INC. COLOR MERCHANTS CONCEPT MARKETING DARLING IMPORTS DEBBIE BROOKS DIAMOND EXPRESSIONS DIzEO DORA INTERNATIONAL EDGE BY ABBOTT & SHAPIRO FEDERATED INSuRANCE GAGE & GAGE GEMS ONE GROT IMAGING STuDIO INTERINGS JAYDEN STAR LLC JEWELERS MuTuAL INSuRANCE JEWELEX K. GIRDHARLAL KAMELEON JEWELRY / JEWELPOP LEvY CREATIONS MARTIN E. JACOBSON LTD. METAL MARKETPLACE, INC. NORTH AMERICAN JEWELERS NTR METAL OFER MIzRAHI DIAMONDS, INC.

Spring Buying Show 2014 • Southern Splendor • Savannah

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

SCHuRHAMMER MFG. INC. SIMPLY DIAMONDS / M.A. REICH SOL SAvRANSKY DIAMONDS STAR GEMS STuLLER, INC. TD RETAIL CARD SERvICES THE LIBMAN COMPANY YCH, INC.

ANTWERP/ IDAR-OBERSTEIN TRIP SPONSORS HANS-DIETER HAAG INTERJEWEL u.S.A. INC ROSY BLuE TRADING, INC. SCHuRHAMMER MFG. INC. ISRAEL TRIP SPONSORS BAuMAN MASSA JEWELRY CO. CHERIE DORI FISCHER DIAMONDS INC. OFER MIzRAHI DIAMONDS INC. PANCIS GEMS INC. ROSY BLuE TRADING CO. SOL SAvRANSKY DIAMONDS

Savannah Travel Tales

RJO stories about getting to and from the Buying Show

Due to quite unusual winter weather hitting the southeast during the Buying Show (it was warmer in Fargo, ND, than in Savannah during the show), many attendees had difficulty in their travels. Here are a few of their stories.

Getting There

Amber Gustafson, Amber’s Designs, Katy, TX

My flight out of Houston was delayed due to icy roads and weather there.

When I arrived in Charlotte, NC, I had missed my connecting flight to Savannah. I tried standby for the next flight, but it was full. The next available flight after that also was full, and I decided I did not want to wait until the next morning for a flight.

As it was, I was not the only one that could not get on a flight. Another gentleman going to Savannah also was delayed, and we started a conversation.

It turned out we were both headed to the Buying Show, and we both wanted desperately to get to our final destination. We decided to rent a car together and drive 3.5 hours across two states, to Savannah.

Essentially, I was driving with a stranger, but he was one of the RJO family. This is what makes RJO so special.

Getting Home

Mary Yocom, Yocom Jewelry, Inc., Marceline, MO:

I was supposed to fly back to KCI on Tuesday, January 28; Delta was my airline. Because of the ice and snow in Atlanta, all flights were cancelled. I went back to the convention hotel. I went to the airport Wednesday, but nothing was flying. Atlanta was a mess.

I asked to be placed on medical emergency status, as I had an impending surgery scheduled.

Early Thursday morning, Delta told me my status would be upgraded and I would be home that day. So I went to the airport and got my tickets and checked in my luggage. The last Delta flight left on Thursday and I was still in Savannah. I tried to talk to the gate agents on Thursday afternoon, but they were too busy taking care of other people. By then I was exhausted and began to cry. I explained everything, and the gate agents felt awful about it.

Delta put me in nice hotel for the night.

At the airport the next morning, I made friends with several other RJO people.

Eventually I made it home.

Editor’s Note: Mary had her back surgery on February 4 and is recovering nicely.

James and Sonya Cantrell, Cantrell’s Fine Jewelry, Coffeyville, KS

Our flights home were cancelled, and we decided to rent a car and drive back to Kansas. We got caught up in the traffic problems in Atlanta and spent two days trying to get out of there. Never knew we could spend so many hours going nowhere!

We left Savannah around 10:30 the first morning, and basically sat in traffic until 9 that night. We finally found a hotel up on a hill, but were told our car would never make it up the hill. We told them to watch; we’re from Kansas and driving on ice is nothing to us. We drove right up the hill.

The next day, as we were leaving, we again were told we couldn’t make it back down the hill because it was a sheet of ice. It was, but “we are from Kansas, and ice does not keep us from driving.” We drove right down the hill. upon leaving I rolled down my window and hollered, “We’re off to Kansas.”

Little did we know we would spend the day in traffic again, trying to get out of Atlanta. There were so many abandoned cars and trucks that it gave us an eerie feeling.

Even after all that, we still got home quicker than we would have if we had flown.

Spring Buying Show 2014 • Southern Splendor • Savannah

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

Is retail gold-buying’s heyday behind us?

A REVIEW OF CHAT CHANNEL POSTS from 2010 and 2011 finds that RJO jewelers were reporting that gold buying was responsible for 50 percent or more of their profit. So how is gold buying going in 2014?

Here are some recent edited posts on the topic from the RJO Chat Channel: I think we are at the bottom. We are still making some small gold buys, but nothing like we were two years ago.

We are not buying as much, but we are not advertising to buy as much, either.

NEW MEMBERS Adams Jewelers, Inc. (2nd Location) George Adams Sparta, NC Andy’s Jewelry Andrew Truxillo Lafayette, LA

So far this year we have paid out 34 percent less (compared to last year), but with the gold price being down, we are paying less. In 2013 we paid out 25 percent less than we did in 2012. We don’t advertise gold-buying, but we still get people coming in almost every day selling gold. It definitely has slowed down.

The gold rush has ended, and the silver boom is starting. After the silver is exhausted, then maybe there will be a copper boom.

Gold buying has all but stopped.

Customers are now bringing in their

Brenda’s Jewelers Kim Tucker Southern Pines, NC Creative Jewelers Billy Hammock Florence, AL Evon’s Jewelry Evon Joiner Jackson, MS

mall rings and pendants, expecting retail for them.

I think that ship has basically sailed.

Time for us to figure out how to sell jewelry again.

Our gold-buying is off by about 50 percent from last year. I just mailed out scrap for the first time this year. I’m sending out our bench filings and emery sticks and polishings.

In the past 29 months or so gold has dropped 35 percent an ounce, yet we are still averaging $20,000 a month.

Holland’s Jewelers Ginny and Stacey Sears Apex, NC

Referred by Ashley Green Green’s Jewelers, Roxboro, NC

Lake Oswego Jewelers Pattie Hoag, Tiah and Travis Lavespere Lake Oswego, OR

Referred by Charla Hall Baker & Baker Jewelers Marietta, OH

Spring Buying Show 2014 • Southern Splendor • Savannah

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

Robert’s Jewelers Robert Scott, Joyce Rempe Southold, NY Referred by Henry Goldfarb Agem, Brentwood, NY

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.

PRST STD US POSTAGE PAID BRAINERD MN PERMIT NO 472

The Ultimate Jeweler Resource

APRIL 2014

MARCH 2014 9 Daylight Savings Time begins

10 All payments must be received in RJO Office 17 St. Patrick's Day

20 Spring begins

April Fool's Day

10

All payments must be received in

RJO Office

20

Easter

21 All invoices must be received in RJO Office

MILESTONE

23

- All invoices must be received in RJO Office

- Administrative Professionals Day

NEW VENDORS

Grice Showcase & Display Charlotte, NC

Jake Andrew Streb was born

January 30, 2014. Jake is the son of RJO COO Sarah Streb and grandson of RJO President Terry Dickens of Herteen & Stocker Jewelers in Iowa City. He is joined at home by two brothers: Drew, age 7 and Trey, age 5.

Simply Diamonds purchased M.A. Reich New York, NY

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.