IN THE
LOUPE
The Ultimate Jeweler Resource
In the Know with RJO: Ring Phoenix Buying Show Pix and Winners! Cover Story: Moving In, Moving Ahead, and Moving On FAMILY. DIVIDEND. SUPPORT. BUYING POWER.
In the Know with RJO
by RJO CEO Mary Peterson
Ring
WHEN I THINK OF THE WORD “RING,” the telephone initially comes to mind. I think about the fun calls I look forward, to as well as those calls that can often be demanding and exhausting. I think about how sometimes a good ol’ phone conversation can solve a lot, rather than trying to do everything via e-mail or text. The word “ring” also brings to my mind the wonderful industry we are in, and how we bring joy and lasting memories to people’s lives, with our products and quality services.
My thinking then took me to the word “ringing,” as in “ringing in the New Year.” Yes, I know it is not January anymore, but I believe we should be ringing in a new year every month. It was evident at our most recent Buying Show in Phoenix that many jewelers and vendors have started this year with a new energy that can last throughout the year. It was apparent with the activity on the Show Floor and the willingness by our members and vendors to create better partnerships. The vendors worked relentlessly to offer better specials and additional terms, and the jewelers were more open to viewing innovative lines and trying new programs, all in order to keep things shining for the future.
For many people a new year makes them think of making new resolutions, changing habits, and creating better ways to do things. Every month has to be considered a new year in order for our industry to sustain itself. Every day we need to re-examine the way we do things.
I believe that in light of the new energy I witnessed in Phoenix, many positive changes, ideas, and resources have been created. Many thoughts have been shared by industry leaders and experts on how to continue to be better at your business. If you’ve taken notice, those ideas aren’t any different than what has been promoted by RJO over the years, through its seminars and services. So the good news is that retailers are listening and taking action to implement some long overdue business practices, especially in the social media and technology areas.
It always has been a good idea to have good working partnerships between jewelers and vendors. If we have a we versus them mentality, it breaks down the ability to provide for our customers. In RJO, many of us have worked to create these partnerships over the years. Whether it has been with better pricing or terms of service on the vendor side or purchasing new lines and utilizing marketing programs on the jeweler side, it has forced a change and a renewed interest in our business. Predictions for our future are looking brighter. I encourage you to think of every month as a new year by ringing in better business practices and creating better partnerships. Let’s keep ringing! RJO CEO
RJO Board News
The RJO Board held officer elections at its meeting in January, and officers retained their positions for a two-year term.
Officers of the Board are: Terry Dickens, President (Herteen & Stocker Jewelers); Jeff Wickersham, VicePresident (Wickersham Jewelry); Rich McIntosh, Treasurer (McIntosh Jewelry); and Bill Becker, Secretary (Becker’s Jewelers).
RJO also will be holding Next Gen Advisory Board appointments in the Fall of 2016. For those interested, applications will be available this Fall.
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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 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
THE CHAT CHANNEL ON THE RJO WEBSITE (www.rjomembers.com) hosts a variety of interesting discussions each month. Here’s an edited exchange that can be found in the RJO Social—Open to RJO Jewelers Only area, under the heading “In-store financing”
Post: We would appreciate to hear from anyone about satisfactory on-going relationships with in-store financing companies.
First Response: We do our own in-house financing. It helps even out cash flow during off months. We have $800,000 in receivables earning 18 percent each month. Not all pay, but the 18 percent more than covers the losses and the costs of a collector and legal. We have used GE and Wells Fargo (with a high turn-down rate) so we feel better to do it ourselves. Original Poster: Could you share a little about your credit application and how you qualify customers for credit worthiness?
Second Response: Here are seven steps that I use: 1) Prequalify your customer by asking questions about where they live and work. Out-of-area accounts are generally hard to collect. If they don’t have a job, it is even harder to collect. 2) Take a credit application, filling in the shaded areas only. Those who are married, are working in the same non-commission paying job or profession for two or more years, own a home, and have a phone listed in their name are your best bets, but not everyone falls there. This helps establish stability and ability to pay. 3) Obtain a credit report to establish willingness to pay. We don’t pay attention to utilities and doctor bills, but do consider other jewelers and installment accounts. 4) Get a downpayment so they will have a security interest in the debt. If you can cover the costs with a downpayment, you are risking only the profit, which you would lose anyway if they walked. 5) Always get a photo identification, so you know for sure who you are dealing with. 6) Consider their character. How do they fit into the norm of society? 7) At closing, have an understanding with the customer that your company is real particular about the due dates, and you expect the payment on or before the due date. Good credit customers are not born, they are made. If you don’t make the applicant, I would suggest that you say that the credit department would not approve. Or make the downpayment so high they will turn themselves down. If you use EDGE, there is an option for House Accounts, and it is a percent-per-month add-on interest. We use contracts with pre-computed interest, similar to those when you purchase a car. I have been doing credit since 1960, and I wouldn’t know how to make do without it. It creates repeat business when they come in the store to make payments. If you will send me your address, I will send you a copy of our applications and contract. If I can help further, let me know.
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RJO Foundation Awards Inaugural Scholarships DURING THEIR December meeting, the RJO Foundation Scholarship Committee named eight scholarship recipients. Each recipient will receive $500, distributed in two $250 installments. They are: • Kate Dickens, Herteen and Stocker, Iowa City, IA
• Lori Evans, Rihner’s Jewelry, Gretna, LA • Erin Gorsuch, Williams Jewelers, Alliance, NE
• Teresa Heeke, Disinger Jewelers, Jasper, Jasper, IN • Danielle Heflin, Becker Jewelers, Breese, IL
• Lucinda Sloan, AM Lee Jewelers, Northbrook, IL
• Jory Wall, Bakers Jewelry, Glasgow, MT • Jordan Wentz, HPerry Jewelers, Fayetteville, AR
Foundation applications are now being accepted for the Spring, but must be received by April 13 for consideration. Apply online or download an application here.
JewelConnect Provides Members with Insight Into Buyer “Likes” JEWELCONNECT, THE RJOexclusive web marketing toolbox, displays more than a million pages of information regarding RJO retailers and vendors. Most RJO retailers already know that, and most also know that they have a suite of tools and marketing systems that can power everything from loose stones to mobile phones, kiosk systems, store inventory, websites, and more. However, the folks at JewelConnect are now getting into data analysis and are promising some interesting results. “We’ve always known that statistics on views and searches can be very useful for members,” says JewelConnect’s designer, Andrew Boundy. “We have to remember that what the public buys, and what they are searching for, is not always the same, due to several factors, such as availability and salesmanship.” He added, “This gives us an opportunity to compare actual sales to buyer ‘needs’ and to better optimize store inventory and choice.”
“Hard stats, in isolation, can provide insight into how people search, what words and phrases they use, what categories they prefer, and even what price ranges are more popular,” says Boundy. “While we literally can get lost in the minutia for days, it’s more useful to look at big-picture trends” “Although we don’t have big data capabilities, like Google and Facebook, we do have some interesting analysis that we’re going to be sharing with our membership at this summer’s Buying Show in Indianapolis.” JewelConnect is hosting a seminar on Saturday morning during the Show and will be explaining their results, plus features of the system.
“This is new data,” says Boundy. “I’m not sure where this sort of pinpoint-specific data would be available elsewhere, so we think RJO retailers will be very interested. So we’re pretty excited.”
You can check out JewelConnect at: www.JewelConnect.com and via email at: sales@JewelConnect.com.
Help Plan the Future of RJO THE RJO BOARD OF DIRECTORS, the Merchandise Review Committee, and the RJO management team will undertake strategic planning at its April meeting.
The leadership groups will be completing a SWOT (Strength, Weaknesses, Opportunities, Threats) analysis, as well as reviewing your documented responses from the linked surveys.
This will aid leadership in developing a strategic plan for RJO’s future. Input is crucial to this process. Any and all members of
your store are welcome to complete a survey; the more input we can gather, the better. You may choose to remain anonymous or enter your contact information. Those members who include their contact information will automatically be entered into a cash drawing. RJO will choose two (2) $100 winners at the end of the process. All surveys need to be submitted by Friday, March 25th. Please take a few minutes to complete this short, eightquestion survey. Survey Links:
For Vendors
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For Jewelers
Your Best Promotion This Fall: Antwerp and Idar-Oberstein AFTER MORE THAN 30 years of hosting RJO members to Europe, it has become clear that these trips are terrific for business and can be a smart financial strategy for retailers. As such, beginning this year, travelers will receive a new RJO “How-To” guide.
This guide highlights the benefits of promoting the trip, keys to running the promotion, tips to create opportunities and sales for your customers, a listing of promotional materials available, and a helpful guide to closing the sale. To learn more about this great opportunity, 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
Plan to Attend Next Generation Experience this May RJO’S UPCOMING ANNUAL Next Generation Experience will be held Saturday-Monday, May 14-16, in Chicago, IL. The Experience is offered to help the next generation of jewelers focus their attention on topics specific to their generation. The theme for this Experience is: “Creating Ultimate Jewelers of the Future,” and it will revolve around three theme topics: Personal Development Skills, Business Development and Design for the Future, and Next Steps.
The curriculum for the areas covers a variety of topics, including: • Strategic Thinking & Change Management
• RJO & State of the Industry • Making Choices: Choosing What to Do & What Not to Do • Managing and Communication • Dealing with Conflict • Setting Core Values • Your Business “WHY” • Establishing Your Business Operating Vision • Developing Your Diamond Industry • Millennial Impact and Cultural Change • Leading By Example • How to Stay Motivated • Being Part of a Team
Participants should have worked in the industry for a couple of years
and be interested in continuing their career in the jewelry business. There is a $100 registration fee for this program. Attendees also will be responsible for two nights at the host hotel, the Hyatt Lodge (at a rate of $135, plus tax). RJO will send a hotel link as the event draws near. Contact Hannah Green (hannah@rjomembers.com), or call her at 641-792-4900 to register by April 1. Space is limited; it will be a first-come first-serve basis. A Registration and Commitment form may be downloaded here.
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PLAN NOW FOR OUR NEXT BUYING SHOW!
Your Changing Customer
HAVE YOU NOTICED a change in your customers in the last few years? If you haven’t, you soon will, and I’m betting you already have. These new customers are young, smart, and well-educated about your product. They come to your store looking for specific items, and they have a pretty good idea of what it should cost. They are very brand conscious and—more and more—very interested in high-end, high-quality goods.
50 Years Together July 23-25, 2016 Indianapolis, IN
Welcome to the age of internet shopping and research.
These new customers need to be embraced, as they are the future of your business. Even though they look young, they are still willing to part with some serious cash to get exactly what they are looking for.
Future Show Locations February 2017: Tampa, FL August 2017: Denver, CO January 2018: Savannah, GA July 2018 Minneapolis, MN February 2019: Nashville, TN
They need to be handled very specifically. They should be thanked for coming to your store and congratulated on their knowledge of—and their selection of—the product for which they are looking. They also may need to be further educated on the product they desire, and they certainly need to be complimented on their good taste for selecting it. This further positions you as a knowledgeable resource and someone they can continue to rely on for future purchases.
Your first look at this new brand of customer will tell you they most likely fall below what you would typically consider “affluent,” yet they have been raised to feel special and to have nice things. iPhones, iPads, Sleep Number Beds, XBoxes and high-definition flat screens have taught them to appreciate the finer things (whether they can afford them or not) and to look for quality name brands.
My own son is 26 years old and shops at Brooks Brothers for clothes. I’ve never stepped foot in a Brooks Brothers store in my life. Did I mention that my son has a relatively new car, a new iPhone 6, his own apartment, and is currently unemployed? It is an interesting generation, for sure, but this new breed of customer needs to be marketed to, educated to, and embraced as the future customer for your business.
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
Real-Time Invoicing Coming in 2016
RJO launched its new online billing system at the end of January. Our new online system is more user-friendly 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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PHOENIX PHOENIX PHOENIX
RJO Buying Show Highlight Include Record Sales
THE TEMPERATURE OUTSIDE Phoenix’s Convention Center was warm, but inside the Hidden Treasures Buying Show was welcoming and hot, recording the most sales ever for a spring show. Held at the end of January, hundreds of RJO members kept the Show floor bustling and the city’s downtown humming.
RJO CEO Mary Peterson delivered good news about 2015’s numbers (more than $5 million in dividend checks to members!) and she outlined the organization’s plans for growth and innovation in 2016. During this—RJO’s 50th Anniversary year—Peterson says members can expect even more from RJO, including strategic planning sessions in the Spring, leveraging technology for smoother billing, and a terrific golden anniversary Buying Show in July.
Be sure to mark your calendar today, for the next Buying Show—50 Years Together—July 23-25, in Indianapolis, IN.
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PH PHOENIX PHOENIX
Window Display Winner Rick Foye, Garrick’s Jewelers
Vendor Giveaway Winners
$200 Cash Donated by Luxury Giftware by Jere Brad Williams, Williams Jewelers
Kindle Fire Donated by Darling Imports Earl Butler, KE Butler & Co
$200 American Express Gift Card Donated by Jewelers Mutual Chip and Ladonna Kuntz, Chipper’s Jewelry
iPad mini Donated by Pancis Gems Deb Brushert, JR Brushert Jewelers Inc.
2016 Buying S
iPad mini Donated by Quality Color Designs Cathy and Dennis Robins, Robins Jewelry iPad Air 2 Donated by Jayden Star Pacheco’s Jewelry
Mt. Rushmore Getaway Donated by TR Jewelry Concepts Les and Sue Christen, Smith Jewelry
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Cash Giveaway Winn VENDORS
$50 - Prakash Mehta, Inter $50 - Praveen Tiwari, Diam $50 - Renee Singer, Start-to $50 - Andy Goldblatt, Lusto
JEWELERS Sunday winners $100 - Jason Braden, Jewele Workshop $200 - Steve Taylor, York Je
HOENIX X
Show Prize Winners
ners
rings moir o-Finish our
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Monday winners $100 - Jean McIntosh, McIntosh Jewelers $200 - Brad Williams, Williams Jewelers $200 - Jay Flaming, Jay Flaming Jewelers, Inc. $200 - Brad Williams, Williams Jewelers $500 - Rick Setterberg, Setterberg Jewelers
ewelers
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PH PHOENIX PHOENIX
Buying Show Sponsors
A & D Gem Corporation Allison-Kaufman Bellarri Beny Sofer Bijou Charles Frey & Company Cherie-Dori Color Merchants Concept Marketing Darling Imports Debbie Brooks Diamond Expressions Dizeo Dora International EDGE by Abbott & Shapiro Inc. Federated Insurance
Fischler Diamonds Frank Reubel Designs Gage & Gage, Inc. Gems One, Inc. Hans-Dieter Haag HL Mfg. Imperial Pearl Interings Jewelers Mutual Insurance Jewelex Jewelry Innovations Levy Creations Lustour Mercury Ring / Interjewel Metal Marketplace Michou Midas Chain
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North American Jewelers, Inc. Ofer Mizrahi Diamonds Inc. Ostbye Pancis Quality Gold Schurhammer Mfg. Co. Simply Diamonds Sol Savransky Diamonds Speidel Star Solitaire Sterling Reputation, Inc. Stuller Thinkspace YCH, Inc.
HOENIX X
RJO Foundation Silent Auction Item Winners
During the “Hidden Treasures” Buying Show in Phoenix at the end of January, RJO held its first Foundation Silent Auction and Raffle. The total raised for the RJO Foundation in Phoenix was $6,615.
Attendees were able to purchase strips of Raffle entry tickets and then deposit them, as “bids,” on the items they wanted. The list of Raffle winners can be found on page 12.
Additionally, a Silent Auction was featured, and it included three big-ticket items. These winners are: Lake of the Ozarks Getaway Donated by AG & Angie Becker, Becker Jewelry; Gems One; Dizeo; and Baxter’s Lakeside Grille Won by Gary & Mary Kay Kempker, The Blue Diamond
Mt. Rushmore Getaway Donated by TR Jewelry Concepts Won by Mike & Robin Noe, Noe’s Jewelry
RJO 50th Anniversary Upgrade Donated by RJO Won by Oz Hefner, Oz’s Jewelers
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RJO Foundation Raffle Item Winners The RJO Foundation Raffle was held on the Buying Show floor in Phoenix $250 VISA GIFT CARD Donated by Ashi Won by Cantrell’s Fine Jewelry
APPLE IPAD AIR 2 Donated by Berco Jewelry Co. Won by Corey Johnson, Eaton Turner Jewelry MARINE STAR #98B200 BULOVA WATCH Donated by Bulova Won by Rochelle Klieger, Ruby & Sons Jewelers
BBQ GIFT BASKET Donated by Mike, Lisa, and Amy Pribyl, Cahill-Pribyl Jewelers Won by Hager Jewelry Inc. BLOODY MARY GIFT BASKET Donated by Mike, Lisa, and Amy Pribyl, Cahill-Pribyl Jewelers Won by Carolyn Pope, Crews Jewelry
MARY KAY PRODUCT GIFT BASKET Donated by Mike, Lisa, and Amy Pribyl, Cahill-Pribyl Jewelers Won by Susan Kowaliw, Diamonds & Gold International, Inc.
$50 BARNES & NOBLE GIFT CARD (5) Donated by Diamond Expressions Won by: • Mimi King, Laurie Kottke Fine Jewelers • Tom Nelson, Nelson Jewelry • Judith Brown, Brown Goldsmiths • Jacob Turner, Concept Marketing • Terri Stokes, Bay Street Jewelers, Inc.
KINDLE FIRE BUNDLE PACKAGE Donated by Terry Dickens, Herteen & Stocker Jewelers Won by Steve Berg, Berg Jewelry
MARQUIS BY WATERFORD CRYSTAL BOWL Donated by Bob Disinger, Disinger Jewelers Won by Bonnie Dunn, JR Dunn Jeweler $30 AMAZON GIFT CARD Donated by Mike & Priscilla Doland, Doland Jewelers Won by Chris Nault, Nault Jewelers
$15 STARBUCKS GIFT CARD Donated by Mike & Priscilla Doland, Doland Jewelers Won by JJ Jewelers $25 CHILI’S GIFT CARD Donated by Mike & Priscilla Doland, Doland Jewelers Won by Hager Jewelry Inc.
$50 BASS PRO SHOP GIFT CARD Donated by Mike & Priscilla Doland, Doland Jewelers Won by Laura Bennett, Caratti Jewelers, Inc.
$25 BUFFALO WILD WINGS GIFT CARD Donated by Mike & Priscilla Doland, Doland Jewelers Won by Hager Jewelry Inc.
$25 PANERA GIFT CARD Donated by Mike & Priscilla Doland, Doland Jewelers Won by Steve Berg, Berg Jewelry
WINE GIFT BASKET Donated by DORA Won by Hager Jewelry Inc.
STERLING SILVER BANGLE Donated by Frederic & Karen Duclos, Frederic Duclos Won by Mike Prybil, Cahill Jewelers, Inc.
ELLE JEWELRY PIECES Donated by ELLE Won by Mary Kempker, The Blue Diamond
HORSE & PET GROOMING KIT Donated by Marty Fox, Decker Mfg. Won by Craig Swiderek, Ostbye MARY KAY PRODUCT GIFT BASKET Donated by Kimberly Gassen, Kelly Jewelry Won by Joanna Hudzik, Haywood’s Westlake, LLC $35 NETFLIX GIFT CARD Donated by Erika Godfrey, Hawthorne Jewelry Won by Brad Williams, Williams Jewelers, Inc.
$35 STARBUCKS GIFT CARD Donated by Erika Godfrey, Hawthorne Jewelry Won by Wimmer Jewelers LLADRO HANDMADE PORCELAIN TABLE CLOCK Donated by Goldstar Independent Won by Bonnie Dunn, JR Dunn Jeweler $200 VISA GIFT CARD Donated by Jewelex Won by Dean Benter, Van Denover Jewelry
$50 VISA GIFT CARD Donated by Rick Kupfer, Sales Rep, Camelot Bridal Won by Rocci Kai, Noe’s Fine Jewelry
SILVER/18KT DRUSY PLATED EARRINGS & 18” NECKLACE Donated by Mercury Ring/Interjewel Won by Mike Pribyl, Cahill Jewelers, Inc.
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RJO IOWA TOWN GIFT BASKET Donated by the RJO Staff Won by Deb Borgemoen, Wickersham Jewelry
MELODY IN MOTION CLOCK Donated by Seiko Won by Judy Miller, Wink’s Jewelry
$50 STARBUCKS GIFT CARD Donated by Shah Luxury Won by Terri Stokes, Bay Street Jewelers, Inc. LORENZO HONEY CITRINE OVAL PENDANT IN STERLING/18KT Donated by Simon Golub Won by Susan Kowaliw, Diamonds and Gold International, Inc.
1⁄4 CT TW DIAMOND AND SILVER HEART PENDANT Donated by Simply Diamonds Won by Tom Hill, Thomas Hill Jewelers $50 VISA GIFT CARD Donated by Star Gems Won by Tom Hill, Thomas Hill Jewelers 1⁄2 CT TW WHITE GOLD, TWO-ROW DIAMOND BAND Donated by VEER Won by Rochelle Klieger, Ruby & Sons Jewelers
$100 VISA GIFT CARD Donated by Eric Weber, ORO International Won by Oz Hefner, Oz’s Jewelers Inc. MEN’S BRACELET Donated by a friend of the RJO Foundation Won by Doris Truax, Butler Truax Jewelers
Where Are RJO’s Jewelers Located? Who would have guessed that there are about the same number of RJO members in the South as there are in the Midwest? If you want to play with an interactive map of where your fellow RJO jewelers are, you can do so in your browser at this site: http://www.easymapm aker.com/map/Memb erListing20151230
NEW MEMBERS Berger and Son Jewelers Stuart Berger Las Vegas, NV
Referred by: Shane Oaks, Seven Oaks Jewelers, Vernal, UT
Broadway & Fourth Jewelers Kristie Pooley Eagle, CO
Bryan Jewelry Lynn Bryan Young Prattville, AL
J.R. Fox Jewelers Peggy Fox South Bend, IN
Referred by: Steve Long, Long Jewelers III, Chesapeake, VA
Goldmine Jewelers Yvonne and Tom Della-Moretta Saint Ignace, MI
Komara Bob and Rob Komara Canfield, OH
MarBill Diamonds and Jewelry William Horrell Belle Vernon, PA
Massey Jewelers Skip Massey, Jr. Lawrenceburg, TN
Michael’s Jewelers and Gemologist Michael Bartorelli Haddon Heights, NJ
Referred by: Mick Roscoe, RDI Diamonds, Rochester, NY
Smith Jewelers Inc. Billy Smith III Franklin, VA
Wattsson and Wattsson Jewelers Chris Wattsson Marquette, MI New Ownership:
Bill’s Jewelry Shop Debra Shearer Grinnell, IA
Geis Perry Jewelers Kent and Patricia Hanson Atlantic, IA New Branch:
Seven Oaks Fine Jewelers Shane Oaks St. George, UT
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.
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Cover Story
Moving In, Moving Ahead, and Moving On [ Stories of Jewelry Store Transitions ] If one believes what they read in the business news, the idea of a small retail business being transitioned from the first generation to the next is a near impossibility. Research using figures from the IRS finds that more than 70 percent of family retail businesses won’t make a successful transition to a second generation, while nearly 90 percent won’t make it to the third generation. Jewelry stores seem to do much better than this, as story after story from RJO members can attest. It is likely a combination of factors that keep retail jewelry stores going and going, including having founding roots in previous centuries, as well as carrying inventory—gems and precious metals—that is considered a bit impervious to trends and fads.
T
Moving In he first generation of any jewelry store has to start somewhere, and for Kristie Pooley, that place is Eagle, CO, population of 4,500. In 2012, after a successful career in retail and sales, Pooley opened up Broadway & Fourth Jewelers, with equal parts excitement, confidence, pride, and uncertainty.
“My transition from a non-jewelry store owner to an owner went quite smoothly,” says Pooley. “I have a history in jewelry sales, working for Keidan’s Jewelers in Toledo, Ohio. There I worked with [RJO member] Bernie Ochs, and Alan Miller, who now have their own stores, too. Alan has been my mentor and has helped me tremendously!”
“I was 19 years old,” she continues. “Now I am 54. When I started working at Keidan’s, Alan was my first manager. So, it’s been 35 years that we have been associates.”
Pooley eventually moved to Colorado, where she managed a store for five years.
“I was actually in outside sales for approximately 21 years in between my jewelry careers,” she say. “This taught me tremendous skills in sales, and also marketing and management. I have associate degrees in business management and marketing and sales, as well as a Bachelor of Science degree from The University of Toledo.”
Pooley explains that her former employer was not a hands-on owner, and she wound up doing most everything for her boss.
“I thought and dreamed about opening the store for approximately two years,” she says. “I felt that I could do a better job than my previous employer. In addition, it was a life-changing event to work on my own, by myself … for the better! I then made the decision to move forward, and it was the best decision ever!”
When the opening finally arrived, Pooley says she had no doubt in her ability to successfully run the store, but she wasn’t sure if the demand would
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sustain the store. She says she was fearful of being accepted in a small community, something that lessens as trust builds over time. “Many customers were thrilled when I opened,” says Pooley. “The closest jewelry store is a 30minute drive through the mountains, so that helped. The local paper published a very impressive article on me and the store. In addition, the Chamber of Commerce was very instrumental in putting my store in the limelight, introducing me to the community. They touted my business experience and knowledge in jewelry.”
“I was super excited and very proud when I opened the store,” she recalls. “Customers thanked me all the time for being here! I was extremely conservative when I opened the store, only purchasing what I could pay for immediately. As the store grew, I was able to expand my inventory and product lines. I turned a profit in my first months of opening. I found a bench jeweler locally, as I didn’t want to use the same one as my former employer. As time went on, I actually became more relaxed and confident.” What Pooley brings to her community is what you might expect from a small town jewelry store: a variety of repairs, items in various price ranges, and professional service presented in a professional manner.
“My long-term hope for the store is to be known as the engagement ring and diamond specialist in the area,” she says. “I plan to grow and change as the market changes.”
Kristie Pooley
Not all jewelry owners start their stores from scratch, like Pooley. Many transition into initial ownership, and Debra Shearer did just that in January, taking over a store where she had worked for nearly 15 years.
“I’ve been with Bill Hammen at Bill’s Jewelry in Grinnell, IA, for 14.5 years,” says Shearer. “I’ve been his right-hand girl all these years, so it’s not a new adventure, totally. But owning the store is a different side of it. I’ve always wanted to do this! I feel like this is my dream job.” “The transition went pretty well,” she continues. “I’ve known Bill and [his wife] Jeanne for over 25 years. Bill set the price, and I thought it was fair. There were a few bumps in the road, but all went really well. I took over on January 4th of this year.”
Shearer says the transition came with many feelings, including relief, nausea, fear and extreme happiness. One thing she truly loves, she says, is having that personal contact with the clients that she knows well. While she’ll continue as Hammen did before her, offering in-store service and repairs, their own designs, and growing, she did make one change once she took over.
“The only thing I’ve changed was our Saturday hours. We were open 9 a.m.-4 p.m., and now our new hours are 9 a.m.-2 p.m.,” she says. “We didn’t have much traffic those last two hours, so we made that change. It’s the only one I plan to do, for a while. My thinking is that if it’s not broken, I’m not going to try to fix it.”
Moving Ahead
A theme among the stores in this article is that planning was a large part of the transition process. Yet, planning ahead in retail is not as common as it should be. According to a recent CNBC poll, less than 30 percent of retail business owners have a succession plan.
Bob Disinger, of Disinger Jewelers in Jasper, IN, is in that small minority.
“My successor, Teresa [Heeke], and I have a fiveyear plan,” says Disinger. “Teresa worked for me in high school and college, and now she has returned after 17 years in the corporate world to prepare to succeed me. My entire staff is supportive of this
FAMILY. DIVIDEND. SUPPORT. BUYING POWER.
plan, and they are helping prepare Teresa to purchase the business. In addition, she is busy taking GIA courses, thanks to a scholarship from RJO, to become a Graduate Gemologist to complement her business management degree.”
Disinger and Heeke finalized their plan at the RJO Succession Planning workshop in October, 2015.
“We developed it together,” says Disinger. “I want Teresa to be 100 percent behind this. She can walk away at anytime without penalty. Preparing Teresa has invigorated me to continue to grow the business and to best prepare her. If everything works out with the succession plan, I will be happy for the both of us. It must be a win-win situation, and it is my goal to assure she is successful. In addition, I will be available as needed, to be as supportive as possible.” “Do not wait until it is time to retire,” he continues. “Start attending the RJO Succession events, if possible, five years prior to your planned retirement.” Five years ahead also is the plan for Don Basch Jewelers, located in Macedonia and Medina, OH. Owners Don and Denise Basch have four sons, all of whom plan to have a role in transitioning the store into the next generation. Son Dustin says their plan is for the transition to start in five years, with a buy-out over ten years.
“I think our parents felt comfortable knowing that each son has his own area of expertise,” says Dustin. “Each one of us joined the company at different times, some straight out of college, and others after trying other adventures and realizing their heart wasn’t yet there. They needed to find that this was their passion.” Part of the Basch’s planning includes bringing in experts to help with the transition.
“With how dynamic our situation is,” says Dustin, “it is very important to have an expert attorney involved very early in the process, as well as an accountant who can work well together.”
Among the negotiations will be determining the final purchase price for the store.
“We have had outside consultants and accountants do evaluations and look at the total value,” says Dustin. “People we all have felt comfortable with
gave us a starting point. I am sure when we come to that final number, there may be some negotiations that will need to take place. However we all want what’s best for the business, and we are all business people, knowing there can always be an agreement made. You just need to stay open minded.” While any owner likely feels like a proud parent when their store is passed on to another, the feeling is likely a bit different when you’re actually the parents.
“The strongest emotion I can see in my parents is not necessarily letting go,” says Dustin, “but I see that their not being as involved makes them feel uncomfortable, because this is what they have done for so many years. They get mad if you don’t ask their opinion or keep them up to date to a fault, yet then they say you don’t need to ask because you are the one making the calls. So we’re kind of damned if we do and damned if we don’t. I feel very motivated to be able to call this the true “second generation.” My brothers [Donny, Dan, and Dennis] and I run Don Basch Jewelers, but we are all motivated to not let down the two people who started this company.”
Dustin say that both of his parents will still work a few days each week, but will take longer vacations, spanning weeks rather than “rushing back.” He also expects them to spend more time with their five grandchildren.
Moving On
While planning can go a long way toward a smooth ownership transition, sometimes real life can challenge even the best of plans.
Rich and Nedra Perry, of Geis Perry Jewelry in Atlantic, IA, began their transition plan around 2012.
“We still loved the business, but I found that I no longer had the passion to drive it as it should be driven,” says Rich. “We proceeded to look around at our business acquaintances, friends, and customers to see if we might be able to find someone to train to take over Geis Perry Jewelry. We were very concerned about the community and
FAMILY. DIVIDEND. SUPPORT. BUYING POWER.
felt that, if at all possible, we wanted to help continue the store’s legacy rather than to close the store. That was the recommendation that was given to us by virtually everyone.”
In September 2013, the couple had narrowed their replacement search down to two promising candidates and finally decided on one to hire, to learn the business and become its new owner. “We were totally up front and completely open with our finances as we began the training process,” says Rich. “Things went relatively smoothly, and we felt like progress was being made through the Christmas season and into the New Year. Yet, in August 2014, it became apparent that it was just not the right fit! We had to let him go in order to maintain the employees that we cherished and to salvage our business. This had become quite a financial drain on us, because we had added him as an employee while maintaining all of our other employees as well.” Rich says that at that time, the couple decided to focus a little less on planning and a little more on prayer. They prayed for guidance.
“In December we got a call from Kent and Patrice Hanson, saying that they would like to buy our store,” says Rich. “We could hardly believe our ears, but did tell them that we would have to think about it. We contacted our current employees to be sure that we were not miscommunicating, in case one of them might like to buy our store. We determined that was not the case.” It was early February 2015 when the two couples sat down over a cup of coffee, discussing the purchase price, inventory, and other business concerns. Eventually they reached a deal.
“Kent and Patrice had already established many friendships in Atlantic through Patrice’s daughter’s family, and it became apparent that the sale of Geis Perry Jewelry was not going to remain a secret for any time at all in our community of 7,300,” says Rich. “We chose to do what would seem to many to be counter-intuitive; we called a press conference on June 1 and publicly announced the sale. We were amazed at the amount of emotional support that we received and the number of customers who stopped in to wish us well and thank us for the 44 years that we had served the community.”
Top Seven Reasons Retail Business Owners Decide to Sell
“With the help of a very good advertising 1) The owner is drained wordsmith, we 2) Retirement built our story on that 44-year 3) Physical illness or family history,” says Rich. problems “We were amazed 4) Shortsightedness at the number of customers who 5) Strong, increasing came in to do competition business with us 6) Sticking to a plan before we went 7) Opportunity to capitalize out. We made sure monetarily that our message Source: included the fact www.fairmarketevaluations.com that we had a new, younger couple coming in that would serve them as well or better in the future. We kept that message going out for the next months, until November, when we shifted into a retirement sale mode, which we ran through Christmas Eve. The retirement sale was orchestrated by Chuck Frey, who is an RJO service provider. It was very successful.” According to Rich, the deal was closed on January 4th, with occupancy set four days later. The Hansons immediately stripped everything out of the store, refinished the tin ceiling, stripped one wall down to the brick, and got everything put back together in time for a February 7th re-opening. “It is an outstanding transition from our Geis Perry store to the new Geis Perry,” says Rich. “The store definitely has its own new decor, reflecting the personality of the Hansons.”
FAMILY. DIVIDEND. SUPPORT. BUYING POWER.
Nedra and Rich Perry
MILESTONES
Harvey “Claus” Morrison, of Harvey’s Diamonds & Gifts in Miami, OK, passed away on December 22, 2015. He was 84. RJO staff remember him for carting around the Buying Shows on his red scooter (better than most people can drive a car).
Al Myers, of Imperial Jewelers in Hastings, NE, died on February 11, 2016. He was 89. He had been a member of RJO since 1985, and though he had retired a few years ago, his store is still open, having been passed down to his granddaughter, the new owner and operator.
Our thoughts go out to the families.
CALENDAR MARCH 2016
10 All payments must be received in RJO office 8 Daylight Saving Time begins 17 St. Patrick’s Day 20 Spring begins
23 All invoices must be received in RJO office 23 Easter
SAVE THE DATE
APRIL 2016
1 April Fool’s Day
11 All payments must be received in RJO office 14 Vendor Registration opens for Buying Show
22 All invoices must be received in RJO office
27 Administrative Professionals Day
MAY 2016
6 Member Registration opens for Buying Show 8 Mother’s Day
10 All payments must be received in RJO office 13 Vendor Registration closes
23 All invoices must be received in RJO office
30 Memorial Day - RJO office closed
July 23-25, 2016
FAMILY. DIVIDEND. SUPPORT. BUYING POWER.