Official Publication of the National Pawnbrokers Association
summer 2013
Kevin P rochask a, NPA P Jewelry resident and Loa , presen n, Detro ts the N it, MI, at PA Paw the NPA nbroker Annual of the Y Membe ear awa rship me rd to Se th Gold, eting he America ld in Las Vegas, J n uly 17.
Pages 28-40
Pawn Expo 2013 Pages 33-35
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2013 FBL Scholorship Recipients 8/13/13 8:31 AM
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Message from the President
A Blueprint for the Future Designing the future of the pawn industry
If you weren’t in Las Vegas in July, you missed another great Pawn Expo. The event maintained the momentum that will move this association forward. I want to thank our exhibitors and sponsors for making this an event to remember. Your continued support is a key part of our success. I want to give kudos to Kerry Rainey, NPA Convention Committee Chair, for overseeing a great event, in addition to Dana Meinecke, NPA Executive Director, and Lindsay Wilson, NPA Director of Meetings and Events. They, along with the rest of the NPA staff and volunteers, worked hard to take this event to the next level.
The Basics
Those of you who joined me at Pawn Expo helped NPA create a blueprint for the future of the pawn industry by participating in our events and seminars. A blueprint gives you the basics. It is an outline that serves as the guide to build greater things. We focused on: Advocacy: The key driver of NPA’s legislative efforts. You learned about developing relationships and communicating with local, state, and federal legislators. You also gained a better understanding of how the legislative process works and how your voice can be heard. Education: You learned about current trends in the pawn industry and new ways to improve your business. Continuing your education keeps our industry robust. Connections: You met new people and connected with old friends. Connections, whether with a fellow pawnbroker, local law enforcement, key legislators, or a superb vendor, will influence your life and business in positive ways.
Public Relations
As our industry gains more and more exposure, it is imperative that we speak with one voice. The NPA and 3CLiCk Media, a New York based public relations and new media company, have been working together to create tools to keep us all on the same page. Our talking points include the following: PR Talking Points • Pawn businesses are heavily regulated and licensed by state and local governments • Pawn loans are usually small, short term loans with a national average loan amount of $150. Pawn loans have no negative credit effect • Pawn businesses are governed by the 13 primary federal statutes and regula tions that apply to financial institutions • Pawn loans keep borrowers out of a debt cycle, as opposed to other forms of non-bank lenders • Pawn stores can lend to anyone, use collateral to secure a loan, and never pull a credit report • With a pawn loan, there is never an obligation on the part of the borrower to repay the loan, nor is there ever an adverse effect on one’s credit rating in the event of default • Pawn transactions are routinely trans mitted to local law enforcement, which dramatically decreases the likelihood that a thief would bring stolen mer chandise to a pawn store • Less than one-tenth of one percent of pawned items are reported as stolen As I start my term as NPA President, I look forward to working to protect our industry while continuing to move it forward. I appreciate the role that each one of you plays in the success of the association and our industry as a whole. I’m looking forward to a great year. Thank you!
Ben Levinson NPA President
Our Pawn PR 101 kit will help you when a reporter comes knocking. The booklet gives tips and ideas on dealing with the media, and the fact card can be used as a quick reference or given to reporters. Email Connect@ NationalPawnbrokers.org or call (817) 337-8830 to get yours.
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Table of Contents
summer 2013
Feature Articles Pawn Expo 2013
Pages 28-40
NPA Board and Staff
Pages 33-35
2013 FBL Scholarship Recipients
33-35
Page 20 28-40
20
In this Issue Letter from the President 1 4 Letter From the Executive Director Government Relations Government Relations Update 6 Rally Congress 51 NPA PAC 57 NPA Internet Pawn Policy Statement 60 Compliance NICS News 10 Community Involvement FBL Scholarship Recipients 20 Vendor Spotlight Stebgo Metals 26 Member News New Members 9 PawnFyNdR 13 State News 14 25 Bob Mouton BBB Award GNCPAWN.com Sued 49 2013 NPA Trend Survey 59 Cebuana Lhullier 61
Business Sense Defending Pawn Profitable Computer Sales with White Canyon Software Keeping Up Appearances Sell Safety Unlicensed Gold Buyers New $100 Note Special Events Pawn Expo 2013 Hallmark Research Institute Calendar of Events Index of Advertisers
Official Publication of the National Pawnbrokers Association
summer 2013
Kevin Proch aska, NPA President, Jewelry and Loan, presents Detroit, the NPA MI, at the Pawnbroke NPA Annu r of the al Membersh Year award ip meet to Seth ing held Gold, Amer in Las Vegas ican , July 17.
Pages 28-40
Pawn Expo 2013 Pages 33-35
2013-2014 NPA Board of Directors and Staff C1.indd 2
Page 20
2013 FBL Scholorship Recipients
19 23 43 46 52 66 28 44 67 68
Cover Story Pawn Expo 2013: photos, award winners, and more. Page 28
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National Pawnbroker is the official publication of the National Pawnbrokers Association (NPA), and is published quarterly. No part of this publication may be reproduced without the written consent of Dana Meinecke, NPA Executive Director. Sale or distribution of any or all of the contents of this magazine is prohibited. All rights reserved. For more information on advertising or to obtain additional copies of National Pawnbroker, call 817-337-8830 or send an email to Chris@NationalPawnbrokers.org. For membership information, email Margie@NationalPawnbrokers.org. EDITOR’S NOTE: This publication is designed to provide accurate and authoritative information on the subject matter covered. It is provided and disseminated with the understanding that the publisher is not engaged in rendering legal or other professional services. If legal advice is required, the services of a competent professional should be sought. © 2007-13 National Pawnbrokers Association: P.O. Box 508, Keller, TX 76244 • 817-337-8830 • NationalPawnbrokers.org EDITOR: Chris Pearcey, NPA Communications Specialist, Chris@NationalPawnbrokers.org; DESIGNER: Carla L. Butz
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message from the executive director
Maintaining Momentum Pawn Expo 2013 was a Huge Success!
I’d like to thank each of you who attended Pawn Expo 2013. The NPA staff worked hard over the last year to bring you an event that enhances your industry connections, creates a foundation for advocacy, and gives you tools to make you more successful. We have a wonderful group of members who are committed to creating a better association through their service on the NPA Board of Directors. This year, Kathy Pierce of Monster Pawn in Bloomington, IL was elected to our board at the Annual Membership Meeting. New officers took their positions at our annual meeting as well. They are: Ben Levinson, President Dynasty Jewelry & Loan Norcross, GA Chuck Williams, Vice President Chuck’s Gun & Pawn Shop Warner Robins, GA Robert Anderson, Treasurer R & R Pawn Indianapolis, IN Tim Collier, Secretary Pacer, Ltd Little Rock, AR
Thank you!
I want to take a moment to thank all of our exhibitors and sponsors for their support of this year’s event. Some of you may not be aware that Industry Partners support the many member benefits the association offers, such as Pawn Expo, and our publications, National Pawnbroker magazine and the NPA Insider. Please take time to consider these companies when the need arises. At our annual membership meeting, we presented our 2013 Pawnbroker of the Year award to Seth Gold, American Jewelry & Loan, Detroit, MI.
Seth has worked to bolster the association’s charitable giving campaigns and foster strong relationships with his community and local leaders. He has also made himself available to fellow pawnbrokers for personal appearances that helped showcase their stores and promote business. While his celebrity status has grown since the beginning of his family’s hit TV show, his fellow pawnbrokers still know him as a professional and a true gentleman. We are so pleased to be able to recognize him! Our 2013 Industry Partner of the Year, Stuller, has worked hard to build its relationship with the pawn industry. The company has also been a huge supporter of the association through education, sponsorships, advertising, and membership. Congratulations to the Stuller team! This year was marked by the loss of a dear friend, colleague, and association supporter. Craig Rabiner was honored with the NPA Charles R. Jones Lifetime Achievement Award. In his honor, the association presented a crystal bowl to his family and NPA members Ed Bean, Dave Adelman, Sam Shocket, Ric Blum, and Michael Elliott gave a moving tribute to honor him.
Onward and Upward
Dana Meinecke NPA Executive Director
At our annual membership meeting, we presented our 2013 Pawnbroker of the Year award to Seth Gold, American Jewelry & Loan, Detroit, MI.
Now that Pawn Expo 2013 is over, the NPA staff is hard at work meeting the new challenges for our industry. I would like to take this opportunity to thank each and every member of the NPA. We have seen a significant increase in our membership numbers, both from pawnbrokers and industry partners. Every member increases our strength and positive presence, both legislatively and with the public. On behalf of the staff and board of directors, I want to say thank you for your continued support!
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Government relations
Grassroots Effort It Makes the Difference!
Those of you who just attended Pawn Expo had two great opportunities to learn more about engaging in grassroots efforts to help the pawn industry. The speakers gave us information on how to deal with the many attempts to regulate the pawn industry at the local, state, and federal levels. In his session “Grassroots Advocacy: Why Your Voice Matters,” Joe Gagen demonstrated the importance and impact of your voice, gave tips for starting your own grassroots efforts, and for those with experience, how to improve your game. During the second seminar, the NPA’s Government Relations Committee (Team GRC) discussed what has been done over the past year including: • Promoting contact with Representa tives and Senators through NPA’s Rally Congress website. Through this program, anyone can send their concerns about federal legislation to their Members of Congress. • Preparing position papers and talking points that will help NPA members understand new legislations’ implica tions on the pawn industry.
Always Vigilant
Because overseeing legislative trends and specific pieces of legislation is an ongoing process, Team GRC works almost every day of the year on some project. In the past year, we have focused on the following federal issues: • Opposing two different federal charter proposals which would allow larger, well-funded, non-depository lenders and their partners to offer credit products nationwide without state or local licensing and without the need to comply with state or local laws.
Even though they would be exempt, these laws and regulations will contin ue to govern the rest of us who provide consumer credit products • Evaluating a new Senate bill that would impose a 36 percent rate cap and other fees • Evaluating numerous gun control bills that could affect Federal Firearms Licensees • Providing attendees of NPA’s annual Legislative Conference in Washington, DC with information and talking points for their meetings on Capitol Hill • Sharing information with state associa tion leaders about trends in pawn legis lation across the country
Tim Collier NPA GRC Chair
State and Local
We believe our efforts at the state level have contributed to the wellbeing of pawnbrokers across the nation. The NPA is willing to assist with local and state items that could ultimately have national implications. Our resources are limited, and since we are the national association for the pawn industry, our focus must stay at the national level. In each of the instances below, the information was vetted carefully to make sure it met specific requirements. Team GRC has analyzed state bills that could ultimately have national impact and suggested amendments to make these bills more pawn-friendly. In addition, we have analyzed and provided talking points on local proposals such as electronic transaction reporting, zoning restrictions, license fee increases, and moratoria on new licenses as well as privacy issues surrounding photographing customers, their identification documents, or collateral. And that’s just the beginning. (Continues on page 67)
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National Pawnbrokers Association Logo Sheet and Standards
The National Pawnbrokers Association’s logo is a registered trademark. Use is permitte Association after receipt of a completed Logo Use Agreement. Only members of the A
INK COLORS: 2-color printing Blue: Pantone 2955 C Gold: Pantone 1255 C
1-COLOR PRINTING: Black
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Member News
National Pawnbrokers Association New Member Listing As of July 1, 2013
Pawnbrokers
Arkansas
Hog Pawn Mena
Colorado
Sharpy’s Auto Pawn & Sales Pueblo
Florida
Nebraska
Big Green Jewelry & Loan Huntington
New York
International Pawnbrokers
AntiquityCapital.com Rochester
Cash Corner Edmonton, AB, Canada
International Watch & Jewelry Guild Houston
Ohio
Greenbacks Hawkesbury dba Greenbacks Pawnshop Belleville, ON, Canada
National Firearms Dealer Network Scottsdale, AZ
London Gold Buyer London, ON, Canada
Studio Pawn Bronx
Richie’s Pawn Shop Tamarac
George’s Pawn Shop Euclid
Georgia
Oregon
Iowa
Kentucky
Middlesboro Pawn Shop Middlesboro
Louisiana
American Cash Pawn Monroe
Michigan
K and S Design Jewelers and Pawn Oak Park
Mississippi
Depot Enterprises DBA Southern Pawn Brookhaven
Gold-N-Diamonds Atlanta, GA Halach Gold New York, NY
Fernwood Firearms Hankins
Quick Cash Pawnbrokers Davenport
Divine Diamond Corp New York, NY
Pioneer Exchange Edmonton, AB, Canada
Stone Mountain Guns N Gold Deland
AAA Gun & Pawn Brokers Hephzibah
West Virginia
Express Pawn Omaha
Cash Connection Grants Pass Grants Pass A1 Hawk Portland
South Carolina
State Line Pawn Little River Lugoff Loan Co Lugoff
Texas
Big Tex Pawn Odessa
Virginia
Cayman Precious Metals George Town, Grand Cayman, Cayman Islands
Apprentices
David Melkonian Beverly Hills, CA
Tom & Ryan Beavers Pagosa Springs, CO
Industry Partners
Bezels For Watches Miami, FL
Mercury Pawn Shop Hampton
Blowout DVD San Diego, CA
Pawn USA Woodbridge
Dealer of Diamonds Dallas, TX
Meena Diam Kowloon, Hong Kong Parag Diamonds Inc. dba Paramount Gems New York, NY Payment Alliance International West Palm Beach, FL RJECO Los Angeles, CA Starmaker II Scottsdale, AZ TK Diamonds E Windsor, NJ TMC Trading Ltd Villa Rica, GA Store Design and Fixturing Chapel Hill, NC
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compliance
NICS E-Check 2.0 Simpler to Use and Still Free
NICS E-Check has been upgraded. To register: • Visit the NICS E-Check website at nicsezcheckfbi.gov • Click on the link “Register to use the FBI NICS E-Check” • Agree to the terms and conditions • Complete the account request form • Click on “Registration” at the bottom of the page. An account request confir mation page will appear • Click on “Show populated enrollment form” at bottom of page • Print the completed enrollment form • Fax form to (888) 550-6427 or email it to fbinicsteamcc@leo.gov • Look for a user name at the e-mail ad dress you provided during registration • Look for additional instructions in the e-mail on how to obtain your password Only submit one registration and enrollment form. The employee who registers will be the administrative user and will create accounts for other employees. You may designate other employees as primary users (administrative users) and they will be able to create and modify accounts as well. Administrative Users • Will have administrative controls and can create accounts for all employees
who you wish to have access to NICS E-Check • Will be able to lock or suspend ac counts for employees who have left the company or are on extended leave • Will be able to reset passwords for employees who have forgotten their passwords
Benefits E-Check offers many benefits that are not available from the call centers, such as the following: • Ability to access NICS E-Check using any computer or browser • Added customer protection against identity theft • Added safeguard against theft of license number and code word • Ability to retrieve NICS background check results 24/7 • Ability to retrieve background checks initiated on E-Check or at the Call Center • Ability to print completed NICS back ground check search requests • The availability of messages regarding NICS operational status • No hold times waiting for the Call Center • No hold times waiting for a NICS Representative to review a transaction
Kim Brown NICS Section FFL Liaison Specialist nicsffl@leo.gov
What Fellow FFLs are Saying “The NICS E-Check system is wonderful. I use it exclusively and have never had a problem. My customers are amazed at how fast things go and how efficient the entire system is.” “I have been using the E-check since I became an FFL over a year ago. It is fast, efficient, and I have had no issues whatsoever.” “I’ve been using E-Check for years without any trouble, and I have limited computer skills.” “I do all my NICS checks online—always have—love it.”
10 | National Pawnbrokers Association | Summer 2013
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Member News
PawnFyNdR.com
The NPA’s online member directory
Need to find fellow NPA members’ stores in the US? Search for them on PawnFyNdR.com.
You can search by city/state or use the toggle button and search by zip code. Each month PawnFyNdR.com is populated with the store name, address, phone number, and website of all current NPA pawnbroker members across the country. Potential customers will be able to find your store on the website, so be sure we have the correct information for your business. PawnFyNdR.com can be accessed directly, or from the NPA website (NationalPawnbrokers.org.)
PawnFyNdR.com Q & A Q: I am an international member. Why isn’t my store listed? A: At this time, only pawn stores located in the US are listed on the website.
Q: I just joined NPA. How soon will my store be listed? A: The website is updated around the 15th of each month. Look for your store after that date.
Q: My store has moved. How can I change the address? A: Contact the NPA office at (817) 337-8830 or send an email to Connect@NationalPawnbrokers.org.
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State News
State Association Updates What’s going on across the Country
Alabama
Fran Bishop, Past President Alabama Pawnbrokers Association fbishopdp1@gmail.com The 2012 and 2013 legislative sessions in Alabama have been interesting to say the least. Bills and amendments were filed on a variety of subjects that would have affected the traditional pawn industry and our Alabama Pawnshop Act. Fortunately, the membership and board of directors of the Alabama Pawnbrokers Association (APA) together with several special interest groups were able to stop a bill that would have created a special section within our pawn act for lending on titles. This section would have created confusion and conflicting requirements and would have invited litigation. Before the 2014 legislative session opens, we will be working with our state banking department’s regulators and the title lending industry to arrive at a more compatible piece of legislation. This past April, the APA was pleased to host the 2013 Dixie Educational Conference & Trade Show in New Orleans. The team efforts of AL, AR, LA, and MS pawnbrokers paid off once again with a well-attended event. We are pleased with the continued growth of the Dixie and are happy to be able to bring such valuable information to our members through these educational sessions each year.
Arkansas
Tim Collier, President Arkansas Pawnbrokers Association hogtim@windstream.net The recently completed AR legislative session brought sweeping changes to the manner in which pawnbrokers are required by law to report all purchases and pawns to law enforcement. H.B. 1369 became Act 404 sponsored by State Representative Homer Lenderman, and as a result, all pawnshops in AR are now required to report all transactions to a secure law enforcement database, on a daily basis, through the internet. While many pawnbrokers in most major cities are already required to do so by local ordinances, this new
state law makes it mandatory for all pawnshops, no matter where you are located in AR. This bill affects rural and small-town pawnshops that previously provided paper tickets of transactions to law enforcement. You must now have a computer and internet access to report your buys and pawns. You do not, however, need specific pawn software to meet this new requirement. The database company will provide you everything you need to start uploading your transactions on a daily basis free of charge. If you are a member of the Arkansas Pawnbrokers Association (APA) and don’t have a computer, we will be happy to help you so you can start complying with this law before the effective date of August 31, 2013. There are penalties and fines for non-compliance. Penalties cannot exceed $1,000 per offense, but every day that a pawnshop fails to comply is a separate offense. Contact the APA at arkansaspawnbrokers.org if we can help you implement this new procedure.
Illinois
David Schoeneman, President Illinois Pawnbrokers Association Schoedad@aol.com I have just a few things to note for Illinois. We have legislation regarding our treatment under the Freedom of Information Act on Governor Pat Quinn’s desk awaiting his signature. The upcoming Illinois Pawnbrokers Association fall meeting is important, as we will be electing officers. I will not be available to act as president, so this is a good time to step up to the plate and become active. I will see you at the I Hotel and Conference Center in Champaign on Sunday, September 8, 2013 at 11 a.m. for brunch. The membership meeting and election will follow at noon. Try to attend. It is your association.
Indiana
Greg Engstrom, President Indiana Pawnbrokers Association gregengstrom@hotmail.com The Indiana Pawnbrokers Association has worked with several legislators to get a regulatory bill passed that will (Continues on page 16)
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State News (From page 14)
State Association Updates put the cash-for-gold stores on a nearly level playing with pawnbrokers when it comes to reporting, holding, and other regulations. This bill will become law effective January 1, 2014, and it also puts an end to the hotel gold buyers, as each registered buyer must have a permanent business location. I am also happy to report that the governor lowered the Indiana income tax by 10 percent for his first year in office. Indiana has had a strong growth in new pawn shops, along with expansions from several current operators. We talk to each other during conventions and by email all year. Growth is everywhere, and business is good, even after the end of the scrap gold boom. In addition, the climate for business in Indiana is the best it has ever been, and many businesses are migrating here, along with their employees and families, from many other parts of the country.
- POWER
Missouri
Rob Lauer rob@pawncenter.com After many years and many bills, Missouri has finally passed a bill regulating gold buyers. A combination of S.B. 157 and S.B. 102 was passed by a conference committee on the last day of the 2013 legislative session with only minutes to spare. As I write this, the governor has not yet signed it. Assuming he does, it will become law on August 28, 2013. The provisions are different from our statute in several ways, including the following: • Buyers are required to hold all gold, silver, and platinum in the original condition for five days before disposing of it. • They will be required to photograph the customer and all transactions and maintain the information for one year. • They will no longer be allowed to purchase any pre-melted gold, silver, or platinum. • A conspicuous sign stating their buying prices must be posted close to the weighing device and must be able to be seen by the seller. While the records of all transactions must be made available to law enforcement, buyers will not be required to download customer information to law enforcement or a third party such LeadsOnline. Those not buying from the general public and financial institutions licensed under federal or state banking laws are exempt from the statute. Pawnbrokers are also excluded because this bill’s wording conflicts with our statute. The bill had strong opposition from the Missouri Retailers Association, and they have vowed to change
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Business Sense
Defending Pawn Don’t take the bait
by Stephen Krupnik , Cloud Ten Inc., Mishawaka, IN
A client of mine had a development plan for a pawn store that would require a zoning change and a special use permit. The ward alderman called for a meeting to get input from local residents during and after the development presentation. I went to lend my skills to the presentation. Through experience, I can tell you that these things can quickly turn into an angry mob.
It Seemed to Go Well
The presentation went well and was thorough. My client did his homework. There were principles, employees, corporate attorneys, a real estate appraiser, a tax specialist, the architect, the Chicago police pawn detective, myself, and tons of oversized photos and blueprints around the room on easels. Should be an easy sell, right? Wrong. That’s because there are always--and I mean always-certain people who are vehemently opposed to anything with the word “pawn” attached to it. It doesn’t matter if it’s in their neighborhood or not. It doesn’t matter how experienced the business principles are, and it doesn’t matter how much they are willing to invest in the community. Through their eyes, you are a pawnbroker and therefore, you are a bad person. In my client’s case he was investing around $3 million into a commercial property that had sat vacant for six years. He has four successful pawn stores that would make any pawnbroker proud. The presentation he assembled for the meeting put everything in such a positive light you would think anyone located in this community would warmly welcome him.
The Opposition
The presentation ends and it’s time for comments and questions from the attendees. It’s also the time when many in our industry would unwittingly carry out business suicide and completely undo any goodwill their presentation had created. How? By trying to defend the indefensible. Knowing what to say in these situations isn’t nearly as important as knowing what not to say. There will always be a few in attendance who make ludicrous claims against the pawn industry. You should never try to defend yourself against them. One example was
a resident who stated the only people who use pawn stores are those that want bail or drug money. You could choose to get mad and defend yourself--or you could choose to be smart. How would I suggest your reply? Simple. “Oh really? Please tell me more about this.” The situation is instantly diffused. Another person claimed to have reams of paperwork proving that pawn (Continues on page 64)
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community relations
2013 Future Business Leaders
Congratulations Scholarship Recipients
The National Pawnbrokers Association (NPA) is pleased to announce the recipients of this year’s Future Business Leaders (FBL) Scholarships. The following six students were selected to receive a $1,000 scholarship. Michael Alan Johnson, Bellville, OH Sponsor – Johnson Brothers Jewelry & Loan, Mansfield, OH Olivia Johnson, Mansfield, OH Sponsor – Johnson Brothers Jewelry & Loan, Mansfield, OH Miranda Jones, Louisville, KY Sponsor – Bill’s Pawn & Jewelry, Valley Station, KY Wesley Strong, Sylacauga, AL Sponsor – Sylacauga Pawn Shop, Sylacauga, AL Stacey Abigail Vanegas, Spring, TX Sponsor – Sunbelt Pawn, Houston, TX Stephanie Aereal Vanegas, Spring, TX Sponsor – Sunbelt Pawn, Houston, TX The Future Business Leaders Scholarship fund has awarded over $115,000 since its inception in 2003. The program was established to provide scholarships to individual applicants who are planning to enroll or are enrolled in an accredited two-year or four-year college or trade school. Qualified applicants are children, grandchildren, customers, or employees of NPA members or an individual. Qualified applicants are sponsored by a NPA member in good standing. Student selection is based on academic performance, community leadership, and written essay submissions.
Pictured above: Jane Garris of Sylacauga Pawn Shop, Sylacauga, AL, presents a 2012 FBL scholarship award to Paige Matheson
Pictured below: Jane Garris of Sylacauga Pawn Shop, Sylacauga, AL, presents an FBL scholarship award to Wesley Strong
NPA also awarded two $1,000 scholarships to Concerns of Police Survivors (C.O.P.S.). Since 1994, C.O.P.S. has donated over a million dollars in scholarships to survivors of fallen officers who do not receive tuition-free education as a state death benefit. C.O.P.S. also provides scholarships to survivors who no longer meet their state’s eligibility for assistance. NPA is proud to be an active member in our communities by giving through programs like the Future Business Leaders and C.O.P.S. Scholarship programs.
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community relations
2012 Future Business Leader Scholorship Winner Thank You!
Arielle Baker, Fairmont, WV, was the recipient of four FBL Scholarships, 2009-2012. The financial support was applied to her four years at West Virginia Wesleyan College where she double majored in biology and chemistry. She will be starting medical school this year.
Many thanks to the National Pawnbrokers Association for supporting me during my four years at West Virginia Wesleyan College. The FBL scholarship contributed to my education in many great ways. It afforded me the opportunity to accomplish my goals of a Bachelor of Science in Chemistry, graduating magna cum laude, and acceptance to medical school at West Virginia University. The NPA, through its FBL scholarships, are making a difference in the lives of students, and I will never forget the assistance I was provided! I am excited about medical school and shadowing doctors over the summer. The following story is a great way to express my feelings: An old man walked up a shore littered with thousands of starfish, beached and dying after a storm. A young man was picking them up and flinging them back into the ocean. “Why do you bother?” the old man scoffed. “You’re not saving enough to make a difference.” The young man picked up another starfish and sent it spinning back to the water. “Made a difference to that one,” he said. You have made a difference in my life! Thank You, Arielle Baker
National Pawnbrokers Association Logo Sheet and Standards
The National Pawnbrokers Association’s logo is a registered trademark. Use is permitted only with permission from the Association after receipt of a completed Logo Use Agreement. Only members of the Association may use the logo.
INK COLORS: 2-color printing Blue: Pantone 2955 C Gold: Pantone 1255 C
1-COLOR PRINTING: Black
PANTONE PROCESS COLOR: Blue: C 100% M 60% Y 0% Gold: C 10% M 30% Y 80%
K 30% K 20%
For use at 1 inch or less in scale
For use at over 1 inch in scale
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business sense
WhiteCanyon Software making computer resale profitable
PAWN EDITION
NPA Magazine took time to sit down with Samuel Peery of WhiteCanyon Software to discuss things every pawnbroker should know regarding used computers and laptops. National Pawnbroker (NP): What are the top three problems that pawnbrokers face when accepting a computer or laptop as collateral? Samuel Peery (SM): First of all, computers can be difficult to appraise, particularly for those who aren’t technical. One black box looks much the same as the next. Second, there is the problem of liability. There have been lawsuits against pawnbrokers because computers were resold and contained personally identifiable information from their previous owner. Finally, it’s difficult to get the maximum value from resold computers. Again, it’s the black box problem. Potential buyers don’t know what they’re buying, and it’s not easy for pawnbrokers to audit and display a computer’s internal specifications. These problems are so pervasive that many pawnbrokers won’t even accept computers because they’re so difficult to deal with in a profitable manner. NP: How are pawnbrokers currently trying to solve these problems? SM: A technically savvy employee might attempt to delete personal data manually or reinstall windows, but this is problematic. It takes a lot of time to manually delete data, and, if you reinstall windows, you are technically supposed to pay for a new copy unless you have the original install disc and registration key, which is extremely rare. Ultimately, these methods are ineffective because the data is still there and can be recovered using easily obtainable recovery software, and this leaves you open to litigation. NP: What are the most important things to do to increase the profit margin on a computer or laptop sale? SM: First, you want to try and keep existing software that’s installed on the computer, as this can increase its value substantially. This is impossible to do if you’re reinstalling windows or reformatting the computer. Second, you need to clearly display a computer’s specifications and software when selling it. This will allow buyers to have more confidence in what they’re getting and allow you to sell at a higher price point. NP: What is the best advice you would give a pawnbroker who deals in computers and laptops?
SM: Develop a process that is easy to replicate for all employees so you don’t have to rely on one person. Always sanitize all personal data so you’re not putting your business at risk for legal action. Display the computer specs and software to make it easy for your customers to make a purchase decision. NP: What do you do to make pawnbrokers lives easier? SM: Our product, SystemSaver Pawn, helps pawnbrokers increase revenue from computers by up to 40 percent. The product allows them to: • KNOW what computers are worth • CLEAN them properly in preparation for resale • GROW computer price points by displaying custom branded wallpaper showing the system specifications. We’ve consistently found that by displaying this information our clients sell computers more quickly and at a higher price point. In addition, with our one-click operation, any employee can run it—you don’t have to be dependent on technically savvy employees. NP: How was SystemSaver Pawn developed? SM: We originally started as a forensic data recovery company. Since we were experts at recovering data we also knew what it takes to securely erase data. WhiteCanyon shortly thereafter formed as a separate organization to focus exclusively on the data erasure side of the business. Our company specializes in data sanitization for Fortune 100 companies as well as large government organizations such as the United States Department of Defense. We already had a consumer product called SystemSaver which allows home users to remove the personal data on their computers while leaving the operating system and programs intact. We took this program and customized it for pawnbrokers. We made it simple to run and added features which allow employees to accurately appraise value and communicate it to customers. WhiteCanyon Software is the leading provider of data sanitization software. We’re located about 30 minutes south of Salt Lake City and have been in business for about 13 years. We’re excited to be able to serve the pawn market with our customized SystemSaver Pawn NP: How can NPA members contact you? SM: Visit our website at www.whitecanyon.com or call (801) 851-5090.
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Member news
We spoke with the 2011 National Pawnbroker of the Year about dispelling myths, shipwreck treasure, and the most expensive item he’s ever purchased.
5
Durham Magazine (DM): How did you get started in the pawn business? Bob Moulton (Bob): My uncles were in the pawn business in Durham for years. After they retired, my mother opened a store, and I worked for her in between radio jobs. I liked the business so much that I never went back to radio. My mother later retired and sold her store.
Bob Moulton, right, receives the 2011 Better Business Bureau Torch Award for Marketplace Ethics from BBB’s Toby Barfield
burning questions
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Reprinted with permission from Durham Magazine, Durham Better Business Bureau, May 2013
Bob Moulton, 51, is the owner of National Pawn, a 10-store Durham-based chain (North Carolina.) He was born and raised here, graduating from Southern High School before moving on to the Carolina School of Broadcasting. He worked as a radio DJ in Charlotte and Rock Hill before getting into the family pawn business. Bob, affable and clean-cut, doesn’t fit the Hollywood stereotype of a pawn shop owner, and he works hard to change public perception. He’s built a successful business in part because of the positive image he’s cultivated. And he gives generously of his success. He and his wife bought TVs, DVD players, and video game systems for Duke Children’s Hospital in 2010 after years of supporting them. National Pawn each year gives out 10, $1,000 scholarships to Triangle-area high school seniors. And he’s donated more than 900 instruments to Wake, Durham, and Orange high schools over the years, a nod to his fond memories of playing in the band at Neal and Lowe’s Grove junior high schools and Southern.
DM: What are the main misconceptions people have about pawn shops? Bob: There are several. First would be that, “All of our stuff is stolen.” National Pawn’s actual records show that, historically, .05% of transactions contain items that are turned over to the police as suspected of being stolen. And of the items that are turned over to the police, a great percentage of them involve civil matters between family members and girlfriend/boyfriend issues. National Pawn was one of the first pawnbrokers in the state to electronically report daily everything that we take in. The criminals
“Judge me and my business based on my character ... ” know this. If they sell us something that is stolen, then they are basically turning themselves in. If an item is turned over to the police, we become the victim, as we are out our money. Second, that pawnbrokers pay very little for an item, yet sell it for a very high price. Of course we are in the business to make a profit. However, we figured out years ago that if we paid our customers a very high wholesale price and sold it very quickly for a small profit, everyone was a winner. The customers bragged to their friends how much money they got, so we in turn got more customers. DM: You’ve tried hard to dispel negative perceptions of pawn shops. How have you gone about that? Bob: I talk until I am blue in the face! It is very disturbing that someone that has never been into our stores believes the stereotype image that TV and the movies portray. I speak armed with facts. Everyone is entitled to their opinion, but judge me and my business based on my character and actions and not on a pre-conceived stereotype. I am very active in speaking with legislators both in the state and in Washington, DC concerning the issue of stolen property. (Continues on page 64)
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Vendor Spotlight
Stebgo Metals Q&A with Scott Stebbing
National Pawnbroker magazine interviewed Scott Stebbing, President of Stebgo Metals, to find out more about the refining business and the company’s relationship with the pawn industry. National Pawnbroker (NP): What is the biggest challenge faced when looking for a refiner? Scott Stebbing (SS): Finding a company that is reputable and established. There are a lot of startups and middle men that position themselves as refiners. I would call them gold aggregators. They collect and may even melt, but then send it out for final processing to a refiner. I find that one of the best ways to protect yourself when looking for a refiner is finding one that has been in the business for many years and is involved with organizations like the NPA. A refiner should be invested in its industry which adds value to its client base. NP: What questions should a pawnbroker ask a refiner? SS: Do they do in-h ouse stone removal? Do they pay for the inherent silver content within your gold karat solids? Do they have an established chain-of-custody for your scrap? How many years have they been in business? Are they able to do wire transfers, ACH, and advances on your product? Do they process all scrap including sweeps, gold filled, silver, dental, platinum, and palladium? Questions like these will help you get a feel for the experience and capacity of the refiner. NP: What are three things that a pawnbroker may not know about refining? SS: 1 Chemical stone removal is a great way to get stones out of scrap so that you don’t have to manually pull them. 2 Refining scrap reclamation is an environmentally friendly way to get pure gold and silver material back into the marketplace. Communicate to your customers that scrapping gold helps the environment. Gold and silver mining destroys land and much energy is used in that process.
your store has a bench area where you design, fix, or 3 Ifpolish jewelry, remember that precious metal can get
into your carpet and chairs. When remodeling, remember to scrap out your carpet as well as save vacuum bags from areas you did any jewelry work.
NP: Name three resources you have for pawnbrokers? SS: We know that the more knowledge Stebgo can give to its customers, the stronger the relationship can become. We don’t want to sell you; we just want to talk, build a relationship, and give you some helpful tips to protect your bottom line. A customer you sell is a one-time buyer. A customer you build a trusting relationship with is a lifelong buyer. With that in mind, we have developed resources for pawnbrokers including: Calculator–Gives you an estimate on what 1 Karat Stebgo pays for karat scrap gold by weight. From these results, you can determine what to pay out to your customers. (www.stebgo.com) 2 Blog–I write a weekly blog aimed at educating the industry with topics ranging from tried-and-true testing methods to recent trends. During the month of August we will be featuring testing. (www.stebgo.com) 3 Sales and Customer Service Staff–Sometimes it’s easier to talk through any issues or ask questions one on one. Our knowledgeable sales and customer service staff is always available. Call our office at (800) 289-0138. The Company Stebgo Metals is a third generation precious metal refinery with a rich history of refining expertise. In 1978, Tom Stebbing Sr. founded Stebgo Metals in St. Paul, Minnesota, on the values of honesty and integrity. As a member and advocate for the NPA and its community, Stebgo understands the challenges and obstacles associated with buying precious metals. Because of this, Stebgo to places unique emphasis on educating its customers. Stebgo wants to change the way refiners and pawn stores interact, allowing both parties to benefit. If you would like to speak with Stebgo to see if the company can help with your refining needs, you can call 800-289-0138.
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pawn expo 2013
Pawn Expo 2013
Creating a blueprint for the future
Pawn Expo 2013 brought together over 600 attendees from 43 states and around the world. Almost 30 percent were first time attendees, and over 10 percent were international attendees. So what did you miss if you didn’t attend?
Learning
• The Opening Session keynote address by Gene Marks who presented insights into the current state of, and future outlook for, small businesses. • The opportunity to share with and learn from fellow pawnbrokers at the Pawnbroker Peer Roundtables. • Grassroots advocacy training, followed by an in-depth presentation by Team GRC about the NPA’s advocacy efforts. • The Pawn Expert Mock Interview featuring Seth Gold, Lauren Kaminsky, and Jordan Tabach-Bank, which gave guidelines for what to, and not to, say in media interviews. • Information to take back to your stores that will improve your business. Topics included human resources, customer service, advertising, identify ing hallmarks and trademarks on precious metals, federal compliance, and FFLs. • New ways to protect yourself and your store through the security education session.
For the first time, NPA is partnered with American Forests to plant a tree for every person who attended Pawn Expo 2013. Through this effort, part of American Forests’ new Meeting ReLeaf program, NPA helped plant almost 1000 trees. These will offset the carbon footprint of the meeting and support sustainability efforts.
Connecting
• Meeting fellow pawnbro kers and learning the secret to the success of the person sitting next to you • The opportunity to connect at the Net working Reception. With a format similar to speed dating, each participant was able to meet 10 people in 30 minutes. • Camaraderie with old and new friends at the Welcome and Closing Receptions. • The Pawnbroker Luncheon, one of the new events for 2013, which gave you the chance to meet fellow pawnbrokers over lunch in an informal setting.
Doing Business
• The Diamond District which gave attendees the chance to visit privately with diamond buyers and find the best price for their diamonds. • This year’s trade show which included 125 companies offering products and services that pawnbrokers use in their businesses everyday such as security, soft ware, jewelry tools, and more. • The opportunity to win one the cash drawings at the Wednesday trade show reception, with one, $1,000 and four, $500 cash drawings awarded to those present.
For completing the Pawn Expo survey, Beth Anundi, Capital Pawn in Salem, OR wins complimentary registration to Pawn Expo 2014. Congratulations Beth! See you next year!
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Craig Rabiner Recognized with Charles R. Jones Lifetime Achievement Award The NPA is proud to award the Charles R. Jones Lifetime Achievement award to Craig Rabiner, owner of Kohn’s Loan Co. Sadly, Craig lost his battle with cancer on, April, 23, 2013. He was 66 years old. His son, Brent Rabiner, accepted the award on his behalf at the NPA Annual Membership Meeting, July 17, 2013 during Pawn Expo 2013 in Las Vegas. NPA members Ed Bean, Dave Adelman, Sam Shocket, Ric Blum, and Michael Elliott gave a moving tribute on his behalf. Kohn’s Loan owns stores in both Lima and Cincinnati, OH. Most recently, Craig expanded his business by opening two additional stores in Cincinnati, OH. Craig was a graduate of Ohio State University and Emory Law School. He served as a Green Beret in the Vietnam War. After practicing law and serving as an associate instructor at Georgia State University in Atlanta, Craig moved back to OH and rejoined his family business alongside his mother and father. After joining the Ohio Pawnbrokers Association, Craig diligently served as a legislative advocate for pawn in OH. He was an immediate past president of the Ohio Pawnbrokers Association for over a decade. During that time, he showed great character, fortitude, and enthusiasm in support of members’ rights and the integrity of our industry. Craig joined the National Pawnbrokers Association in 1994, and in 2001, he began his service on the NPA Board of Directors. His active involvement in NPA was instrumental in making the association a key player on Capitol Hill. He worked hard to communicate the message of the key role NPA members play in helping individuals and families with their financial needs. Craig served on numerous NPA committees and worked to raise money for the association over the years. He will always be remembered for sacrificing his beloved mustache to raise more than $25,000 for NPA. Craig’s wife and children had never seen him without the mustache he grew when he was 21 in remembrance of those who fought with him in Vietnam. He felt strongly about the need for pawnbrokers to connect and network with one another and directed this passion into his volunteer work for the NPA Craig was never afraid to go against the grain. As Lou Tansky, Uncle Ben’s Pawn Shop, Cleveland, OH said, “We all know stories of Craig’s sometimes humorous, sometimes
head-scratching arguments to take a different approach to dealing with the problems or concerns that face pawn brokers every day.” Lou continues, “More often than not, Craig was successful in any battle of wits.” A graveside service was held on Thursday, April 25, 2013. In lieu of flowers, the family asked that donations be made to: • The James Fund for Life, Ohio State University Comprehensive Cancer Center • Hospice of Dayton
Craig Rabiner, Kohn’s Loan Co.
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2013 Pawnbroker of the Year The NPA Pawnbroker of the Year Award is presented annually to an NPA member who, through his/her performance, has achieved significant accomplishments nationally for the pawnbroking industry. NPA is proud to present the 2013 Pawnbroker of the Year award to Seth Gold, American Jewelry and Loan. Seth was chosen from among his peers, the members of the NPA, as the person who represents the best our industry has to offer. Seth is committed to supporting the pawn industry through legislative and community outreach. He has worked hard to bolster the association’s charitable giving campaigns and foster strong relationships with his community and local leaders. He has reached out and made himself available to fellow pawnbrokers for personal appearances that helped showcase their stores and promote business. He is a great representative of the industry, and is a star in his own right.
Kevin Prochask a, NPA Presiden t presents the of the Year Aw NPA Pawnbro ard to Seth Go ker ld , Am erican Jewelry Detroit, MI & Loan,
2013 NPA Industry Partner of the Year
stry ts the NPA Indu esident presen Pr A lung, NP cC a, M sk m Kevin Procha r employees, Ki Award to Stulle ar Ye e th of s Partner d, and Ken Duga Andy Kroungol Argelia Skero;
The NPA Industry Partner of the Year Award is presented annually to an NPA Industry Partner member who, through the company’s performance, has made a significant contribution nationally to the pawnbroking industry. Stuller was presented the 2013 NPA Industry Partner of the Year award at the Annual Membership Meeting in Las Vegas on July 17, 2013. Over the years, many businesses have supported the pawn industry. Stuller, an Industry Partner since 1993, has taken the time to stop what they’re doing and asked the pawn industry how we can work together to accomplish our mutual goals.
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nPA staff and board of directors Mailing Address: PO Box 508, Keller, TX 76244 Physical Address: 891 Keller Pkwy, Ste 220, Keller, TX 76248 (817) 337-8830 • (888) 808-7296 NationalPawnbrokers.org • Connect@NationalPawnbrokers.org
NPA Staff
Dana Meinecke Executive Director Dana@NationalPawnbrokers.org
Margie Swoyer Director of Membership Margie@NationalPawnbrokers.org
Chris Pearcey Communications Specialist Chris@NationalPawnbrokers.org
Matthew Church Government Relations Administrator Matthew@NationalPawnbrokers.org
Lindsay Wilson Director of Meetings and Events Lindsay@NationalPawnbrokers.org
Terri Congleton Administrative Assistant Terri@NationalPawnbrokers.org
NPA Board of Directors
2013-14 NPA Board of Directors
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2013-2014 nPA board of directors
Officers NPA President Ben Levinson Dynasty Jewelry & Loan Ltd Norcross, GA
Ben is president of Dynasty Jewelry & Loan, which has been family owned and operated since 1987. He is a past president of the Pawnbrokers Association of Georgia. Ben is married to Susan, whose family has a ninety-year history in the pawn business. They have a daughter Molly, an attorney in Atlanta; a son Joel, a fifth generation pawnbroker; and two pets, a poodle and snoodle.
Vice President Chuck Williams Chuck’s Gun & Pawn Shop Warner Robins, GA
Chuck and his brother Chip are celebrating 23 years in the pawn and sporting goods retail businesses. Chuck currently serves as chair of NPA’s Membership Committee and on the GRC as the firearms liaison. Chuck and his wife Marion enjoy spending their free time with their granddaughter.
Treasurer Robert Anderson CPA, CMA R & R Pawn Indianapolis, IN
Rob is CFO for R & R Pawn and holds professional accounting certifications in both the US and Canada. He is an Indiana CPA Society award winner for Leadership in Technology and serves as chair of the NPA Finance Committee. Rob has two daughters. He plays and coaches ice hockey with USA Hockey, and his team has won the USA Hockey National Adult Pond Hockey Championship two years in a row (2012 and 2013).
Secretary Tim Collier Pacer, Ltd Little Rock, AR
Tim is co-owner and managing partner of Pacer, Ltd. He is president of the Arkansas Pawnbrokers Association, chair of the NPA Government Relations Committee (GRC), Chair of NPA’s Legislative Council, and serves on the Planning Committee. Tim and his wife Lisa have been married for 27 years and have three sons, Walker and twins, Garrett and Griffin.
Immediate Past President Kevin Prochaska Lombard Financial Services Longview, TX
As CEO of Lombard Financial Services, Kevin owns and operates multiple pawn stores serving the North Texas market. He has worked in the pawn business for over thirty years, is a licensed CPA, and has a Masters of Business Administration. Kevin and his wife Nancy have two teenage boys who will soon be venturing off to college.
Board Members Glen Coronis US Money Shops Cleveland, TN
Glen is COO of U.S. Money Shops, with 11 locations in TN and GA, and approximately 80 employees. He currently serves as the president of the Tennessee Pawnbrokers Association. He and his wife Mary Frances have been married for 19 years and have three children, Jonah 17, Jake 16, and Nick 15. He serves on NPA’s Convention Committee.
Dave Crume A-OK Enterprises Wichita, KS
Dave is the director of operations at A-OK Enterprises in Wichita, KS. He is a past president of the NPA and the Kansas Pawnbrokers Association. He currently serves as co-chair of the NPA GRC. He and his wife Peggy have been married 35 years and love spending their free time with their four children and two grandchildren.
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Bruce Harris A-OK Enterprises Wichita, KS
Bruce is a first generation pawnbroker and opened his first store thirty-one years ago. He now has four locations and over 100 employees. Bruce serves on NPA’s GRC and is active in the Kansas Children’s Service League, Toys for Tots charities, and the Wichita Wagonmasters. He loves to travel and spend time with his family.
Tom Howard Worldwide Jewelry & Pawn Clearwater, FL
Tom serves as vice president of operations for Worldwide Jewelry & Pawn, with 10 locations. He is chairman of the Florida Pawnbrokers Association and serves on the NPA Planning Committee. Tom, his wife Carol, and their three children live in the Orlando area.
Eric Modell Modell Collateral Loans New York, NY
Eric is president of Modell Financial. He has been a NPA board member since 2004 and serves as president of the Collateral Loanbrokers Association of New York. Eric currently serves on NPA’s Finance Committee and chairs the Nominating and Awards Committee. Eric and his wife have two beautiful children and a high maintenance dog, Monster.
Larry Nuckols Brittex Financial San Antonio, TX
Larry is a co-owner of Brittex Financial and formed Money Mart Pawn & Jewelry in 1993. He has served on the boards of Texas pawn associations for 24 years. Larry serves on NPA’s GRC. He and his wife of 39 years, Beverly, have two children and one wonderful granddaughter, Veronica.
Kathy Pierce Monster Pawn Bloomington, IL
Kathy is the president of Monster Pawn Bloomington and has ownership in the Normal and Springfield stores in Central Illinois. She serves on the NPA Membership Committee. Kathy and her husband Edwin, owner of Monster Pawn, have been married for 20 years. They have three children, Everson, Annellia, and Tripper, along with two dogs, Honey Bunny and Max. Max, the basset hound, works six days a week at the Bloomington store.
Kerry Rainey Bayou Pawn & Jewelry Hammond, LA
Kerry is the owner of Bayou Pawn & Jewelry, with three locations. He is an experienced jeweler with 28 years on the bench. He has served as a board member of the Louisiana Pawnbrokers Association for 21 years. Kerry is chair of NPA’s Convention Committee. Kerry and his wife Sharman, along with their three sons, enjoy traveling the world.
Steve Rogers Wellston Pawn Warner Robins, GA
Steve has owned and operated Wellston Pawn since 1985. He has been a bench jeweler for thirty years and is a GIA, GG, and AJP. Steve is married to Sherri, and they enjoy spending time with two lively grandsons. He currently serves as the chair of the NPA Planning Committee.
Jordan Tabach-Bank Beverly Loan Company Beverly Hills, CA
Jordan is the owner and CEO of Beverly Loan Company in Beverly Hills and New York Loan Co. in New York City. He is a member of the State Bar of California and serves on the California Pawnbrokers Association’s board. Jordan serves as co-chair of NPA’s GRC. Jordan and his wife Casey have a son and daughter, and a mutt named Wilbur.
Diane Taylor Traders Loan & Jewelry Reseda, CA
Diane and her husband have owned Traders Loan & Jewelry since 1998. She is currently the president of the California Pawnbrokers Association and serves on NPA’s Nominating and Awards Committee. Diane has two sons, Brian, in his last year of Law School at University of San Diego and Chris, going into his third year at the University of Arizona. She also has two dogs Oliver and Katie, both real characters!
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MARK YOUR CALENDARS to attend
Pawn Expo 2014 July 8-10
THE MIRAGE | LAS VEGAS, NV
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Lucky Attendees Win Cash!
Lucky Pawn Expo 2013 attendees won cash from our Platinum and Diamond Sponsors. Drawings were held in the exhibit hall on Thursday morning.
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Diamond Level Sponsor $500 Cash Drawing Winner: Robert McCullough, Pawn Plus Inc
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Special Exhibitor Booth Recognition
Each year, Pawn Expo recognizes exhibitors who bring something special to the show
eels o n Wh inative Assay st Imag o M • r a e Y the okie of
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Displa y Solu
tions of Top Best Bo eka oth
Thank You Sponsors!
PMS 282
PMS 1255
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Individualized store melts avaliable Call for an Appointment: 1-855-351-0346 • www.AssayOnWheels.com • info@assayonwheels.com Assay ad.indd 41
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Dear Pawnshop Owner, How much money would you be willing to take out of your pocket, lay down on a table, and walk away from forever? Better yet, how much money would you allow someone else to keep, when it is money that is rightfully yours? Would you sell your pawn business for less than it is truly worth? My name is Steve Stallcup, President of Stallcup Group. The primary goal of my company is to ensure that our clients never leave money on the table when selling their pawn business. When it comes to negotiating a sale, the only tactic that matters are numbers – detailed analysis-driven data that a buyer can’t negotiate against, because it’s fact. And when facts are presented to show the true value of your pawn business, more often than not the buyer’s initial offer is revealed to be far lower than what you deserve. With more than 17 closings comprised of 61 pawnshops for a combined total of more than $125M, we’ve put real money in the hands of owners just like you. Our proprietary financial modeling, fact-based analysis and years of industry experience level the playing field for our clients, and maximize the selling price of their business. Take a look at at a few examples below, and how we’ve achieved $250,000; $1M; $2M+ more than what buyers are offering our clients for their pawn business. That’s real profit that would have been left on the table if those owners hadn’t called us.
Stallcup Group’s Impact on Initial Sales Offers: EXAMPLE 1:
EXAMPLE 2:
3.2 million
$
EXAMPLE 3:
4.5 million
$
EXAMPLE 4:
5 million $
5
$
million
Examples shown represent the financial impact Stallcup Group achieved for the business owner from initial offer to final closing. Initial offer and final closing are not necessarily from the same buying entity. Examples are actual closings, and transaction details are withheld for confidentiality purposes.
If you’re in the market – or just weighing your options – to sell your business, I would appreciate a few minutes of your time. Our conversation will be completely confidential, and free of any obligation or risk. You can only sell your business once; make certain you are recieving the true value for your pawn business. At Stallcup Group, We’re On Your Side. Respectfully, Steve Stallcup President, Stallcup Group
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business sense
Keeping Up Appearances
More than maintaining the status quo
Managing your pawn store’s image is more than maintaining the status quo. The way your community, journalists, lawmakers, and potential customers see your business often depends on many factors. If you’re trying to grow your business, simply keeping up appearances just won’t do. In recent decades the pawn industry has gone though many changes and grown from a second tier financial service to a mainstream lending industry. Reality shows have introduced America to pawnshops, and today, pawnshops are a part of our American culture, utilized by all walks of society. As the industry has matured, so have the customer’s expectations of what a pawn experience will be.
its image. A clean design that’s easy to read and professional is always best. Avoid imagery that promotes negative stereotypes. Be consistent with design elements and style across all of your advertising platforms including signage, billboards, website, and television commercials. By replicating the same positive image you will build strong brand awareness in your region.
Online and On Target
More Americans are using the internet, specifically mobile phones and tablet devices. It’s likely that many of your customers will find your business through a search engine. A savvy pawn customer will screen your business by viewing more than one online
Emmett Murphy 3CLicK Media
Having a website is the single most efficient and cost effective way to advertise a pawn store today. In order to build an audience, pawn television shows tend to show outrageous or extreme situations which may further a negative stereotype. This is not the best idea for a small business owner. However, how can you project your brand image in a way that distinguishes your pawn store from the fray?
Graphic Design
Many customers find pawn stores through advertising. While a pawnbroker is typically a jack-of-all-trades, graphic design should be left to the professionals. Find a graphic designer who understands your business and creates clean, professional, high-quality work. Consider how a bank or other financial institution promotes
source, including your website or Facebook page or reviews on services such as Yelp. Having a website is the single most efficient and cost effective way to advertise a pawn store today. Compared with conventional marketing, the ability to attract new customers and generate online traffic is unprecedented. A well-marketed website for a single pawn store in a suburban or metropolitan area can attract hundreds of unique visitors per day. A website doesn’t have to be expensive or technically advanced to attract customers. It just needs to be easy to read and navigate and present a consistent trustworthy and professional image. Be sure to monitor your business’ reputation online. Angry customer reviews can (Continues on page 50)
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Pawn Expo
Hallmark Research Institute Making Their Mark
by Hallmark Research Institute William Whetstone, Danusia Niklewicz, and Lindy Matula hallmarkresearch.com
While the Hallmark Research Institute’s (HRI) session at Pawn Expo 2013 focused on a tiny impression made on articles of precious metal, it was a big hit with attendees. Through dynamic imagery, HRI provided attendees with enough visuals of precious metal marks to make each person take pause. From marks on plated base metals to the intricacies of the Russian precious metal hallmarks, HRI covered a wide variety of marks pawnbrokers see every day. Covering the key countries of the United Kingdom, France, Russia, and Egypt, HRI stressed the importance
of proper hallmark recognition. Understanding the pressure that every pawnbroker is subjected to when buying items of precious metal, HRI’s goal was to familiarize attendees with hallmarks that might provide more than just an intrinsic interest. It was apparent by the questions asked that there was a real interest in rescuing special items of provenance from the smelter. Unfortunately, with the pressure of flipping an item for the most profit as fast as possible, it often seems impossible to identify what needs to be rescued, or not. HRI’s response to that was, “You can’t afford not to! If you can possibly realize a triple mark-up from what would otherwise have been smelted for intrinsic value, would you not find the time?” The answer has to be, “Yes!” The Hallmark Research Institute has been at the forefront of hallmarking education for the last 10 years. Educating appraisers of the value in proper hallmark identification has driven HRI to countries both far and wide. Pawn Expo 2013 was the first time that the founders of HRI have had the opportunity to step back and actually interact with the people who are on the front line of precious metal’s survival or demise. At this event, HRI heard the frustration from those pawnbrokers who may have the goods but not the proper channels or contacts to sell these products for what they might really be worth. What an eye opener. The presenters for HRI, Danusia Niklewicz, Lindy Matula, and Bill Whetstone are still talking about it. It is these hallmark experts that have impressed upon the attendees to take pause and look carefully at all of the precious metal items they take in. The next question was, “Where do we start?” (Continues on page 64)
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DAZZLING DUOS AND TRIOS Be prepared with holiday options
Scenario: The holiday season is prime time for engagements, but high precious metal prices have put a less-than-desirable strain on your customer’s pocketbook. He’s in the market for something that will make her heart skip a beat, not his wallet. And she’s looking for something as brilliant as she is. So, where do you turn?
Solution: With Stuller’s duos and trios, you’ll have a large assortment of bridal pieces to showcase. At ready-to-sell prices, these sterling silver engagement bands feature the diamonds your customers are looking for in the styles they love–all at attractive, affordable price points. Packaging is included. Visit stullerpawn.com/duosandtrios today and have your customers saying “I do” before they ever leave your store.
“I’m Andy the Tool Guy. In 1999, I became part of the Tools Division at Stuller, Inc. Since then, I’ve been the guy people talk to when they need the right tool for a job. Any job! Let me be the guy you talk to when you need something.”
For more information call us at 800-877-7777 or visit us online at stullerpawn.com. Stuller.com
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8/7/13 7:24 AM
feature article
Sell Safety
Emphasize products and a plan to prevent unauthorized access to firearms
by Glenn Sapir, NSSF Director, Editorial Services
The rash of anti-gun sentiment and subsequent legislation spawned by the December 14, 2012, Newtown, CT, shootings has not helped solve the root of the problem that led to that tragic event. Unauthorized access to firearms was the cause, and the most sensible resulting proposals by lawmakers to address the prevention of such future scenarios have been bills in both the U.S. Congress and at least one state legislature offering income tax relief for the purchase of gun safes and other products. The National Shooting Sports Foundation (NSSF)® feels that the sponsors of those bills have the right idea. Preventing unauthorized access is the key, and retailers can nurture that ethic among firearms’ owners—and customers—while building their business.
Selling Safety
During this period of high demand for firearms and ammunition, retailers are enjoying record sales. Don’t become complacent though. You must look for supplemental ways to boost sales if and when they slow from their current torrid pace.
Gun safes, lock boxes, cases, and locks are some of the products that should be incorporated into a firearms owner’s plan to prevent unauthorized access. These are products you should be selling to established customers as well as to first-time buyers. NSSF has long been involved in a widespread program to educate firearms’ owners about safe gun storage and handling. Project ChildSafe®, NSSF’s free firearms’ safety kit program, has distributed more than 36 million cablestyle gun locks and accompanying educational brochures to law enforcement agencies in all 50 states and all of the US territories. In June, NSSF also launched an updated Project ChildSafe website (projectchildsafe.org). In 2013 NSSF has committed an additional $1 million to fund the distribution of a half-million more firearms’ safety kits free to the public. In addition, be aware that firearms’ manufacturers have included more than 60 million free locking devices with new firearms sold since 1998.
Know the Numbers
NSSF, as the trade association for the firearms, ammunition, hunting, and shooting sports industry, is dedicated to its mission to promote, protect, and preserve hunting and the shooting sports. Safety is the key to that mission, and despite the headlines inspired by rare shootings by mentally disturbed people, firearms’ safety records continue to indicate significant, continual progress. You should be aware of recent programs and studies, and you should be a spokesperson through local media, to community groups, or simply to the customers that walk through your door.
(Continues on page 54)
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business sense
GNCPAWN.COM Sued formal company statement
What follows is GNC Pawn’s formal statement and press release in response to the federal lawsuit filed in Broward County, Florida by GNC, the multinational manufacturer and distributor of vitamins and dietary supplements. The suit was filed against local pawnbroker Gold N Connection, LLC d/b/a GNCPAWN.COM and GNC Pawn, over alleged trademark dilution and due to publicity surrounding the incident. General Nutrition Centers (GNC) has filed a trademark dilution lawsuit in federal court against a small, familyowned company of local pawn stores, known as GNC Pawn and GNCPAWN.COM, which are owned by Gold N Connection, LLC. GNCPAWN.COM operates 5 pawn stores in FL, as well as an online store, GNCPAWN.COM. The company, which employs thirteen people, is a family business owned and operated by Joshua Davis, Adam Davis, and their father, Jeffrey Davis. Although GNCPAWN.COM was formed in 2007 to segue into the FL market, several generations of the Davis family have been involved in the pawn industry for the last six decades in the State of New York. GNC’s business operations involve more than 8,100 retail locations spanning six continents and billions of dollars in sales, according to its lawsuit. It claims that the GNCPAWN.COM mark threatens the GNC mark, and that the disputed similarities are likely to dilute the GNC trademark and affect GNC’s reputation. GNCPAWN.COM denies the allegations. Joshua Davis, one of the founders of GNCPAWN.COM, stated, “GNC is delusional if it believes that the public will be confused into thinking that GNCPAWN.COM sells vitamins or dietary supplements. We’re just a small family owned pawn store. How did GNC conclude that GNCPAWN.COM may blur GNC’s distinctiveness? It’s like they have nothing better to do than put down the little guy?” In rejecting GNC’s claims, Joshua Davis also stated, “The fonts and typefaces are completely different, and it is abundantly clear that we’re GNCPAWN.COM and not a vitamin retailer named GNC. That is probably why
nobody has ever come into a GNCPAWN.COM store asking to buy vitamins or dietary supplements, and I suspect nobody ever will. Not surprisingly, we do not sell nutritional products.” Adam Davis stated “Pawn stores provide a valuable service to the community, especially during times of economic turmoil. We lend money to people who have no other quick access to cash and provide them short term loans so that they can feed their families, pay their rent, and keep the electricity on. Our stores are also a great place to shop, whether you are on a tight budget or you simply want a great deal on jewelry, tools, electronics, or musical instruments. In these troubled times, GNCPAWN.COM contributes to the communities we serve.” Joshua Davis also stated “I really don’t understand why GNC would attack the reputation of the pawn industry, much less a reputable family-run operation like GNCPAWN.COM. In particular we have consistently made significant financial contributions to numerous local charities. GNCPAWN.COM has a great reputation in this community. We give back and help people in need.” Douglas J. Jeffrey, GNCPAWN.COM’s attorney, stated, “This lawsuit presents a classic case of David and Goliath. GNC’s shameful intimidation tactics will not be tolerated by GNCPAWN.COM. We will vigorously defend this meritless lawsuit.” For more information, contact Douglas J. Jeffrey, P.A., Attorney at Law, at (305) 828-4744 or dj@jeffreylawfirm.com.
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business sense
(From page 43)
Keeping Up Appearances undermine a potential customer’s confidence. Consider hiring an online marketing firm for guidance and reputation management.
New Business
While your current customer base may be happy with your service, how does your business appear to potential customers such as college students and small business owners or more affluent customers? You may need to expand or change your image. Pawnbrokers catering to the luxury market have successfully developed a high-end image. By marketing upscale pawn shops as collateral lenders with a stylish website, refined advertising, and well-designed stores, these pawnbrokers have successfully introduced their services to a new group of customers.
Judging a Book by Its Cover
Unfortunately, people do judge a business by its image. An often overlooked way to attract customers is improving the curb appeal. Consider improving the quality and design of your roadside signage or store front. For example, if your business is near a busy intersection or road, an attractive, easy-to-read sign will catch drivers’ eyes more than a dilapidated or cluttered sign. The phrase, “Less is more,” certainly applies in this case. Clean, neat, and easy-to-read signage often imparts more about a business than a detailed explanation crowded onto a sign or billboard. Consider hiring a professional interior
Action Tips • Hire pros—For print advertising, hire a professional 3 designer. Avoid using images of guns, hot chicks, and similar visuals that might reinforce negative stereotypes. A professional designer will be up-to date on current marketing design trends. While a sensational image or ad campaign might get attention, is it the right attention? • Customer Service–Customer service remains 3 a top complaint among consumers. Is your staff well-trained? They are the face of your business and should embody the image you would like to project. Consider staff uniforms or name badges to formalize their presence in the store.
• Consistent • Trustworthy • Professional
or display designer. A fresh eye on your store image may be helpful to get to the next level.
Plan for Success
Consider the advice given to young professionals vying for a career, “Dress for the job you want, not the job you have.” Promoting a vibrant, thriving image of your store will not only project a positive impression now, it will also attract the kind of customers that you would like to have in the future. Whether you want to increase your business, expand your operations into more stores or fold in an unexplored customer demographic, positive branding and marketing can help you reach your goals. In addition, by improving your business’s image, you will be building a positive perception of the industry on a local, state, and national level.
3• Appeal to the senses—How does your store smell?
The smell of your store is a subliminal first impression that can make or break a customer’s experience. 3• Capitalize on traffic—A clean, well-lit pawn store with clean windows and attractive signage goes a long way toward drawing in customers who pass by your store each day. 3• Online Presence—Make sure your website is professional looking and easy to navigate and that it can be easily indexed by Google. In addition, it should work on various mobile devices and contain the information needed by someone on the go.
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Rally Congress: The easy way to contact your Members of Congress http://act.nationalpawnbrokers.org The Rally Congress section of the NPA website will allow you to support NPA’s legislative efforts so that the pawn industry has a coordinated, united message to our Senators and Representatives. Three easy steps! 1. Go to the Rally Congress web page. Click on the red button that says “Take Action.” 2. Review the letter that NPA has provided for you. Make changes if necessary, and enter your contact information. 3. Review your letter one last time. Click the red “Send Letters” button, away it goes! You’re done!
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Business Sense
Unlicensed Gold Buyers Hurting the California Economy
Historically high gold prices coupled with a general economic decline have exerted pressure to sell scrap gold and unused jewelry. High gold prices have propagated the proliferation of unlicensed gold buyers who generally operate three types of businesses: gold parties, hotel events, and brick-and-mortar stores.
Gold Parties
Gold parties are similar to the Tupperware parties of yesterday. Parties involve a social setting and are less intimidating than walking into a jewelry store and selling gold jewelry to a stranger. The gold buyer at these parties is typically not interested in the jewelry itself. Rather, they
sell the items to gold refiners to be melted down. The gold party host gets approximately a 10 percent cut.
Hotel Events
Gold buying events held at hotels are today’s traveling road shows. These are the people who advertise that they are in your town for only a few days. Unlike most gold parties held in homes, these traveling road shows use large print advertisements and offer to purchase rare coins, paper money, diamonds, silver, art, and antiques in addition to gold jewelry. Often, these so-called “we buy gold and other valuables� companies do not pay fair market value for such goods.
David Fisher, Esq.
(Continues on page 63)
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550 South Hill St., #1329, Los Angeles, CA 90013 | Toll-free: 866.337.7464 Cell: 213.999.0237 | Fax: 213.622.6612 | E-mail: ashok@thetrendz.com Website: www.thetrendz.biz Member National Pawnbrokers Association Member California Pawnbrokers Association Trendz FP.indd 53
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feature article (From page 46)
Sell Safety In May 2013, the U.S. Department of Justice’s Bureau of Justice Statistics report showed that firearms-related homicides dropped 39 percent between 1993 and 2011 and non-fatal crimes involving firearms fell 69 percent during that same period. Mass shootings in the US account for less than one percent of all homicides, and school homicides dropped by half. Accident fatalities with firearms have declined 22 percent in the last 10 years. National Safety Council statistics place them far behind poisoning, motor vehicles, falls, choking, drowning, fires, and suffocation as causes of fatal accidents.
Yet more can be done. NSSF has invited every firearm’s owner to formally take a pledge at the Project ChildSafe website. It reads, “I choose to own a firearm and therefore accept responsibility for using and storing it safely. I commit to securing my firearms when not in use, being aware of who can access it at all times and educating others to do the same.” By visiting the Project ChildSafe website, you can learn ways that you, as a retailer, can become an important partner in this program. NSSF challenges you to sell this safety message to your customers, along with the safety products that will help them uphold their pledge.
NSSF has promoted a S.A.F.E. Summer campaign to focus attention on the importance of safe firearms’ handling and storage, particularly while children are home from school and more likely to be unattended. “S.A.F.E.” is an acronym, standing for: • Secure your firearms when not in use • Be Aware of those around you who should not have unauthorized access to guns
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• Focus on your responsibility as a firearms’ owner • Educate yourself and others about safe firearms’ handling and storage
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G E N E R AT E N E W P R O F I T S W I T H G A R R E T T ’ S P O W E R F U L Y E T A F F O R D A B L E M E TA L D E T E C TO R S
THERE ARE FORTUNES TO BE FOUND AND MADE WITH GARRETT ®
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Easy to use and demonstrate
ACE 250 user Bill W. found this diamond ring—appraised at $4,665—in a lake in Lake City, MI.
A platinum and diamond ring found by AT Pro user Sonny P. while hunting both wet and dry sand areas at Myrtle Beach, SC.
(Above) Reaghan M. of Pawtucket, RI, and her husband John split the cost of their first ACE 350. They found this 334-gram 18k gold chain and charm. Its value was enough to help them get married and buy wedding rings!
Colleyville, TX resident Bob F. was hunting a freshwater lake swimming area when he found this impressive 49-diamond, 14k gold ring.
S E L L O R R E N T TO A N Y O N E S E E K I N G A D V E N T U R E , LO S T H E I R LO O M S , P R O P E R T Y S TA K E S , O R S P R I N K L E R S . 800.527.4011 (U.S. and CANADA) 1.972.494.6151 (INTERNATIONAL)
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GarrettDetectors Channel
MADE IN THE USA
10/2/2012 11:13:42 AM 8/7/13 7:26 AM
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Government relations
Keeping Our Industry Strong In today’s political environment, voting is not enough to ensure that your voice will be heard. By contributing to the NPA PAC, you are supporting the legislators who help shape laws that affect your business. NPA PAC contributions allow us to educate lawmakers about our industry and how we serve the American public. Please send your personal check or credit card information along with this completed form to: NPA PAC, PO Box 508, Keller, TX 76244 Name:______________________________________________ Mailing Address:_____________________________________ Email: ______________________________________________ Business Phone: _____________________________________ Contribution Amount: $_________ q Personal Credit Card q Personal Check Occupation: q Pawnbroker
q Other___________________
Credit Card: _________________________________________ Expiration Date: ___/___/______ Signature: __________________________________________ Date: ___/___/______ Contributions to the NPA PAC are not deductible for federal income tax purposes and are used for political purposes. All contributions are voluntary and individuals may refuse to contribute without fear of reprisal. Under federal law, the maximum permitted individual contribution to a PAC is $5,000 per calendar year. Federal law requires all PACs to report the name, mailing address, employer and occupation of each individual whose contributions to the PAC exceed $200 in a calendar year, and such information is public record. You must be a US citizen or a foreign national admitted to the US for permanent residence as defined by Section 101 (a)(20) of the Immigration and Naturalization Act.
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Successful Multi-Store Operators run CompuPawn! The Brand to Trust. The Brand to Help you Grow. CompuPawn Pawnshop Client
Number of Stores
Years Using CompuPawn
Selling Price in the past 18 months
Mexico-based Client Colorado-based Client Texas-based Client Las Vegas-based Client
29 stores 17 stores 17 stores 11 stores
9 years 15+ years 20+ years 10 years
$ $ $ $
Totals
74 stores
47,500,000.00 46,000,000.00 42,000.000.00 34,500,000.00
SOLD SOLD SOLD SOLD
$171,000,000.00
CompuPawn stores are better run, better organized, more efficient, highly profitable, and SELL for MORE!! That’s just one reason to move to CompuPawn. Whether you want to sell your stores or keep them, CompuPawn has a proven track record of making our customer’s stores worth MORE! There must be a reason for that. Just ask Craig McCall, A CompuPawn customer for 10 years, who has sold a combined 23 Stores: “We have been able to successfully grow our stores and a key element in our growth has been using CompuPawn. We rely on them for data integrity, reporting and compliance at all levels. They continue to be our strategic partner and we value their 30 years of success in serving the pawn industry. We didn’t want our IT in the hands of any other software product. We considered other vendors, but we have chosen to use CompuPawn now and in the future” Our customers have spoken loud and clear, CompuPawn is more than a software system. CompuPawn is a brand that delivers multiple benefits. The CompuPawn brand enables our customers to achieve their business goals and objectives. In 2013, we will continue to work diligently and intelligently to make CompuPawn your primary business vendor and partner. Why wait? It’s time to grow. Invest in the future. Call CompuPawn today.
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NPA 2013 Real Estate Style Ad.indd 1 CompuPawn ad.indd 58
Gold Pawn Shop
We Buy GOld
P A W N
1/8/2013 10:08:17 AM 8/7/13 7:28 AM
Member news
Pawnbrokers Report Easing of Gold-Based Transactions but Increase in Overall Loans National Pawnbrokers Association Announces the Results of the 2013 Trend Survey
The National Pawnbrokers Association (NPA) today announced the results of the NPA 2013 Trend Survey that assesses how the changes in the U.S. economy have affected the pawn industry since the beginning of 2013. According to the survey, 85 percent of pawnbrokers surveyed cited a decrease in the number gold-based loans and gold-buying transactions. Industry experts speculate that consumers may have released disposable gold during peak gold price periods, indicating that future cash-for-gold or collateral loans based on gold may normalize. While gold-based transactions may have leveled off, the majority of pawnbrokers surveyed reported a 10 percent increase in the number of loans made since last year. Additionally, the nationally average pawn loan amount remained at $150. “More Americans are turning to pawn stores at an increasing rate. Increased public awareness, a positive image, and new, consumer-friendly stores have introduced pawn to a new generation of customers,” said Ben Levinson, president of the National Pawnbrokers Association. The Trend Survey indicated that over 85 percent of all pawn loans are repaid, which is consistent with the national average in 2012. “Pawn store customers tend to borrow only what they need, as indicated by the low average national loan amount,” Levinson added. Contrary to popular belief, the most common transaction pawnbrokers make is a pawn loan. While cash-forgold transactions and retail sales are important to the pawn store business model, these transactions make up a small percentage of the overall business. Over 80 percent of pawnbrokers reported that pawn loans are the most common transactions. “The pawn business model is complex,” continued Ben Levinson. “While many stores benefitted from the increased gold prices, collateral loans have always been and will remain the core of our business.” The forecast for 2014 was moderate. Pawn store owners predict that the number of pawn loans will increase in the upcoming year, but they are doubtful that the retail side will experience as much growth.
2013 Trend Survey
“The pawn industry is a unique industry that is attracting new customers every day,” said Levinson. “These customers rely on this unique form of lending that banks and other lending institutions don’t offer. Pawn stores will continue to provide safety net loans to families that encounter sudden financial emergencies.” For more information about the NPA 2013 Trend Survey, contact Emmett Murphy, NPA External Communications, at media@nationalpawnbrokers.org or 212-365-0691 x5.
PAYING 99% AND MORE! We Buy Gold, Silver and Platinum
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www.USGoldRefineryLLC.com DCA#1385065
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government relations
NPA Policy Statement Internet Pawn Loans and Providers
Pawn loans are an important, growing, and trusted source of small-dollar, short-term nonrecourse loans in the United States. Fast, on-the-spot decision-making by pawnbrokers at brick and mortar pawn shops throughout this country help make pawn loans available for emergencies that individuals, families, and small businesses experience. Pawn loans traditionally have been face-to-face transactions, regulated by federal, state and local laws. Recently, some providers have offered “Internet pawn loans� in which the borrower and pawnbroker do not meet face-toface, but rather conduct business via the Internet. Internet pawn loans may be considered more risky for some consumers than face-to-face pawn transactions. Internet pawn loans make for a more uncertain transaction, forcing the borrower to question where collateral is stored, when loans will be funded and what state law the loan is subject to. On the other hand, Internet pawn loans may be desirable for some borrowers who prefer not to engage in face-to-face transactions or find some aspect of the provider’s terms more competitive.
The NPA does not support, condone, or offer membership to providers offering Internet pawn transactions that: 1. Cannot demonstrate full compliance with all federal consumer credit laws as well as with state, and local laws adopted by the jurisdiction in which the con sumer initiates the transaction. 2. Do not hold a license to do business within the state where the consumer initiates the pawn transaction. 3. Circumvent federal, state, or local laws or regula tions through the use of off-shore credit providers or partnering with entities operating on federal Tribal Reservations. The NPA in fact supports, condones and offers membership to providers offering internet pawn transactions, as long as the provider has brick and mortar locations that are open to the general public; offers pawn loans in the same state in which it is licensed and only to residents of that state or to consumers who travel to that state in person for the purposes of the transactions.
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Member news
The Game Changer Cebuana Lhuillier serves Filipinos’ financial needs
Poverty continues to be a challenge in the Philippines in spite of its emerging economy. The country is home to a little more than 100 million people and is characterized with tremendous income inequity. Cebuana Lhuillier has put itself at the forefront of serving Filipinos’ financial needs. The company has become a one-stop shop financial provider with many solutions through an array of services. In addition to pawn, the company offers domestic and international remittance, microinsurance, bill payments, electronic loading, and collections services. Cebuana Lhuillier has been a member of the NPA since 1998, and the company marked its 25th anniversary in 2012. Since 1969 when the current chairman, Ambassador Philippe Jones Lhuillier opened the first branch, the family has maintained its commitment to excellent service to Filipinos.
An Industry Leader
Cebuana Lhuillier continues to improve customer satisfaction through the Customer Assistance and Response System, or Cebuana CARES. The Customer Service Institute of America (CSIA) awarded its 2012 International Service Excellence Award in the Large Business Category to the company and recognized Cebuana Lhuillier President and CEO, Jean Henri Lhuillier, as the Customer Service CEO of the Year. The company has changed the landscape of pawn in the Philippines with services such as 24-hour branches and a tele-appraisal. Its 24k Loyalty Rewards Program allows clients to enjoy exclusive privileges, discounts, and special services. To date, there are more than 3,500,000 loyalty card members.
Community
The company has created a foundation which partners with the Philippine government to advocate the importance of quality education to help break the cycle of poverty. Each year, the foundation gives 250 grants to clients, their siblings, or children. Cebuana Lhuillier launched the nationwide campaign that aims to honor inspiring Filipinos with an optimistic
outlook and the proven ability to rise above life’s difficulties while positively influencing in the lives of others. Since 2010, the program has been recognized by organizations such as the Quill and Anvil Awards and the international Stevie Awards for Sales and Customer Service. From its humble beginnings in the 1980s, Cebuana Lhuillier is now known as a dependable partner helping the Filipino people overcome economic challenges and achieve their financial goals
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State News (From page 16)
State Association Updates it during the next session. Representative Rocky Miller was the freshman legislator primarily responsible for passage. His motivation came because of two break-ins at his residence. Jewelry from his home was found at a local jewelry store after it had been melted down. The state does not enforce such laws, so it is the responsibility of local law enforcement. Missouri will send copies of the law to all law enforcement districts. If you would like a copy of the law, please contact me.
Ohio
Lou Tansky, President Ohio Pawnbrokers Association lou@unclebenspawnshop.com Recently, H.B. 192 was introduced to the Ohio House of Representatives. If this proposed legislation is successful, it could have dramatic negative results on our industry and inhibit independent pawnbrokers from operating in a fair and unrestricted environment. We cannot help but speculate that this onerous legislation is being proposed by one of the publicly traded, multi-national, mega-providers of non-depository financial services that wants to control how business will be conducted in our state. We will not let them control how we run our industry. We have fought them before, and we will fight them again. Watch your email for more information. Several law enforcement agencies around the state appear to be trying to flex their muscles by requesting information which is unreasonable and not required by statute. Columbus and Dayton police departments have been sending so-called “do not do business” lists to shops within their jurisdictions containing people whom they describe as “known or suspected thieves.” These lists have, in some cases, many thousands of names on them. It appears that law enforcement agencies are going down the alphabet and, at current rate, will be giving pawnbrokers many more thousands of names to add to the do not do business lists in the future. There is confusion even within the ranks of the police agencies as to what, if any, criteria and guidelines are being used to determine who is or is not on these lists. There are several other cities in the state which appear poised to begin a similar process. The Ohio Pawnbrokers Association (OPA) is working diligently on this issue. We firmly believe this is a question of constitutionality and deprivation of rights, not only of our members but our customers as well. We are communicating with state regulators, legislators, the NPA, and legal experts to determine the appropriate course of action. In other parts of the state, police departments are insisting on the inclusion of customers’ personal and
private information when providing daily reports to law enforcement. PLEASE NOTE: Ohio Revised Code (ORC) Section 4727.09 states in part as follows: …A pawnbroker shall, every day, furnish the following information to the …police 1. A description of all property pledged with or purchased by the licensee; 2. The number of the pawn or purchase form the licensee used to document the pledge or purchase. For the purposes of this section, a licensee need provide only the information required by…this section. (Emphasis added) It is vitally important that all pawnbrokers in Ohio keep this section of ORC in mind. DO NOT provide any information to police in your daily reports other than what is required under ORC. Of course you would provide the customers’ personal information after your reports have been provided if it is directly requested by the police department. As always, you are encouraged to call or email me or any of the officers of the OPA at any time if we can be of assistance.
AGT3 AuRACLE Gold Tester The new AGT3 Gold Tester will give you dependable and accurate results while showing both the digital karat value and the gold percentage at the same time!! No other tester provides you with more information so quickly or easily. Features include:
•Test all colors of gold from 6K to 24K and platinum. •Alphanumeric LED’s display both karat value & gold percentage. •Easy one step calibration using either 14K or 18K yellow gold. •Durable, scratch resistant nickel plated, stainless steel platform. •Low battery indicator. •Easy to use, touch pen provides 1000’s of use with proper care. •Powered by 9V battery or AC adapter. Both are included FREE. •Special offer includes FREE rubberized carrying case.
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Business Sense (From page 52)
Unlicensed Gold Buyers Brick-and-Mortar Gold Buyers
A third group of gold buyers that is cropping up are brick-and-mortar stores. They are either only in the business of buying gold, or are jewelry stores that are jumping on the bandwagon and advertising that they buy gold on their store windows, through banners, sign twirlers, and other forms of advertising.
Licensing
The business of buying and selling gold requires a secondhand dealers’ license, pursuant to Ca. Bus. & Prof. §21625, et seq. The purpose for licensing and regulating secondhand dealers is to curtail the dissemination of stolen property and to facilitate its recovery by means of a uniform, statewide, state-administered program of regulation of persons whose principal business is the buying, selling, trading, auctioning, or taking in pawn of tangible personal property and to aid the State Board of Equalization to detect possible sales tax evasion. A secondhand dealer includes any person or entity whose business includes buying, selling, trading, taking in pawn, accepting for sale on consignment, accepting for auctioning, or auctioning secondhand tangible personal property. Licensed secondhand dealers must report all purchases daily to the chief of police or sheriff and include the name and address of the seller; verification of identification; a complete and accurate description of the property; and certification from the seller that he/she is the owner of the property and has the authority to sell it. The law also requires that every secondhand dealer hold all merchandise purchased for 30 days, which is designed to give police time to track down stolen property. Unlicensed gold buyers do not pay license fees or sales taxes, robbing local governments of revenue. Moreover, unlicensed gold buyers do not report sales, thus thwarting efforts to track stolen property. They do not have their scales certified by the Office of Weights and Measures, which can result in inaccurate weights. Unlicensed gold buyers often pay the least amount for gold because the sellers are often unsophisticated, and in party settings, have a false sense of trust and security. In addition, there are increased incidents of robberies at gold parties, whereas licensed locations normally have security guards, gates, cameras, and other security devices.
ers that has some bite in the statute. Pending legislation (SB 762) would require a person conducting business as a secondhand dealer to provide a valid secondhand dealer license to any peace officer upon demand. The bill would also authorize a peace officer to impound all secondhand (Continues on page 64)
Addressing the Problem
The penalty for unlicensed gold buying is a misdemeanor and a charge of up to $1,500 for the first offense. However, the enforcement of licensing law violations is low on the law enforcement list of crimes to address. The California Pawnbrokers Association (CAPA) is sponsoring a bill to address unlicensed secondhand deal-
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Business Sense (From page 19)
Member News (From page 25)
Defending Pawn
Bob Moulton
stores cause a sharp increase in crime in the communities in which they operate. Answer? “I would love it if you shared that with me. I have never seen any evidence of this. I’m sure the police department would also want a copy of your study.” Do not get sucked in by an angry mob. Throw their claim right back at them in a calm professional manner asking them to defend or prove their position. Of course they can’t. But you were the one being respectful and professional when faced with a ridiculous statement. In the Pawn Shop Advisor(tm) coaching program (pawnshopadvisor.com/main.cfm), I provide many highly effective responses to the ridiculous questions that you hear every day working in a pawn store. Remember, what you say isn’t nearly as important as what you don’t say. Keep your eye on the target and your mind on the goal. P.S. In case you’re curious, the vote from that night was more than two to one in favor of my client’s proposal.
DM: What are a few of the wildest things people have brought in and tried to pawn? Bob: Contrary to what you see on the TV pawn shows, we rarely get the cool memorabilia or historically significant stuff. I did buy a bunch of old shipwreck treasure that came off the Atocha that sank in 1622. This was the wreck found by Mel Fisher off of Key West back in the ’80s. DM: What’s the most you’ve ever paid for an item, what was it and did you make a profit off of it? Bob: A few months ago, we paid $42,000 for a 3.5-carat round diamond at our store on Capital Boulevard in Raleigh. It is still for sale for $43,000. And I will give you a moneyback guarantee that it will appraise for at least $86,000. By widely recognized appraisal values, it will appraise for $97,539 at today’s market.
© 2013 Cloud Ten Inc, CTI All Rights Reserved. “Pawn Shop Advisor” “Steve Krupnik” and “Stephen Krupnik” are trademarks used and owned by Cloud Ten Inc.
Pawn Expo (From page 44)
Business Sense (From page 63)
Hallmark Research Institute
Unlicensed Gold Buyers
HRI’s book, “World Hallmarks–Vol. I–Europe, 19th to 21st Centuries” was HRI’s answer. The book, along with the International Hallmark Poster created by HRI and offered to attendees through the NPA as the hand-out, provides a good start to identifying hallmarks. For those considering pursuing avenues other than that of liquidation, and that wish to place items of provenance in their proper market, HRI has expressed their willingness to help. For those that missed the convention but would still like the opportunity to take advantage of the special $195 (+ shipping) conference offering of HRI’s book, “World Hallmarks” ($228 retail), please go to hallmarkresearch.com/html/BooksSP.htm and enter the special code “NPA2013” along with “HRI” as the contact. This offer is valid through the end of August 2013. Conference attendees were treated to the rare appearance of all three authors, who signed their books. Post conference purchases will not be signed. HRI wishes to thank the NPA for the opportunity to meet with and present to its members a glimpse at the importance of properly identifying hallmarks.
tangible personal property or currency up to $25,000 found in the possession or control of the person if a valid secondhand dealer license is not provided, and the peace officer has probable cause to believe the property or currency was acquired while the person was operating as a secondhand dealer without being licensed. The proposed bill has other provisions within its framework that serve to encourage unlicensed gold buyers to follow the law. David Fisher is an attorney with the Encino-based law firm Gray·Duffy, LLP. He has experience in securitized personal lending, representing pawnbrokers, title pawn, payday lenders, and other consumer finance lenders. Mr. Fisher can be contacted at dfisher@grayduffylaw.com or (818) 907-4000.
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1 2 3
Cash at Closing We have the financial resources to pay cash at closing.
We Understand the importanCe of an “aggressiVe offer” As pawnshop operators, we understand the true value of your business, and we will evaluate several factors before making an offer.
qUiCk and hassle-free Closing We’re set up to help you every step of the way, from handling questions to helping you prepare and file all the necessary paperwork. We make the entire process smooth and simple.
proud to announce the recent acquisitions of 34 Central pawn and pawn and Bargain locations. at Cash ameriCa, we’ve built a reputation as being the largest purchaser of pawnshops in the world. And right now, we’re extremely interested in discussing purchasing pawnshops like yours. As a successful pawnshop owner, you’ve invested a lot of time, energy and money in your business. And the idea of selling it may never have occurred to you. Even if you’ve thought about it before, you may not have known where to start. Cash America has made it easy to explore your options. All you have to do is call 1-866-291-8110, or visit us at pawnshopbuyer.com. You could be closing on your business and getting cash in hand before you know it!
Call 1-866-291-8110 or visit pawnshopbuyer.com Cash America ad.indd 65 Sell Your Business Now Rev2012_8x10.5.indd 1
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3-D Security Ribbon
Bell in the Inkwell
Tilt the note back and forth while focusing on the blue ribbon. You 3-D Security Ribbon will see the bells change to 100s Tilt the note back forth as they move. Theand ribbon is while woven focusing on the blue ribbon. into the paper, not printed onYou it. will see the bells change to 100s as they move. The ribbon is woven into the paper, not printed on it.
Tilt the note to see the colorshifting the copper inkwell Bell in bell theinInkwell change from copper to green. Tilt the note to see the colorshifting bell in the copper inkwell change from copper to green.
2
1
2
1
4
6
4
6
3 3
5 5
The New $100 Note Know Features. Know It’s Real. The Its New $100 Note
It only takes a few seconds to check the new $100 note Know Features. Know Real. and know Its it’s real. Learn how to identify It’s and use the two advanced security features: the 3-D Security Ribbon and It only takes a few seconds to check the new $100 note the Bell in the Inkwell. It is not necessary to trade in and know it’s real. Learn how to identify and use the two your old-design notes for newthe ones. U.S. currency advanced security features: 3-D All Security Ribbon and remains legal regardless of when it to was issued. the Bell in thetender, Inkwell. It is not necessary trade in your old-design notes for new ones. All U.S. currency remains legal tender, regardless of when it was issued.
1. Portrait Watermark Hold the note to light and look for a faint image of Benjamin Franklin in the blank space to the right of the portrait. 1. Portrait Watermark Hold the note to light and look for a faint 2. Security Thread image of Benjamin Franklin in the blank Hold the note to light to see an embedded space to the right of the portrait. thread running vertically to the left of the portrait. The thread is imprinted with the 2. Security Thread letters USA and the numeral 100 in an Hold the note to light to see an embedded alternating pattern and is visible from thread running vertically to the left of the both sides of the note. The thread glows portrait. The thread is imprinted with the pink when illuminated by ultraviolet light. letters USA and the numeral 100 in an alternating pattern and is visible from 3. Color-Shifting 100 both sides of the note. The thread glows Tilt the note to see the numeral 100 in the pink when illuminated by ultraviolet light. lower right corner of the front of the note shift from copper to green. 3. Color-Shifting 100 Tilt the note to see the numeral 100 in the lower right corner of the front of the note shift from copper to green.
4. Raised Printing Move your finger up and down Benjamin Franklin’s shoulder on the left side of the note. It should feel rough to the touch, 4. Raised Printing a result of the enhanced intaglio printing Move your finger up and down Benjamin process used to create the image. Franklin’s shoulder on the left side of the Traditional raised printing can be felt note. It should feel rough to the touch, throughout the $100 note, and gives a result of the enhanced intaglio printing genuine U.S. currency its distinctive texture. process used to create the image. Traditional raised printing can be felt 5. Gold 100 throughout the $100 note, and gives Look for a large gold numeral 100 on the genuine U.S. currency its distinctive texture. back of the note. It helps those with visual impairments distinguish the denomination. 5. Gold 100 Look for a large gold numeral 100 on the 6. Microprinting back of the note. It helps those with visual Look carefully to see the small printed words impairments distinguish the denomination. which appear on Benjamin Franklin’s jacket collar, around the blank space containing 6. Microprinting the portrait watermark, along the golden Look carefully to see the small printed words quill, and in the note borders. which appear on Benjamin Franklin’s jacket collar, around the blank space containing the portrait watermark, along the golden quill, and in the note borders.
www.newmoney.gov For educational use only. Item not for resale.
www.newmoney.gov For educational use only. Item not for resale.
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Government relations (From page 6)
Grassroots Effort A few specific state issues that we worked on this past year include: • Iowa—Stopped a bill that would have allowed local authorities to decide disputed ownership of items pawned or sold to pawnbrokers • Michigan—Helped pawnbrokers in two separate lawsuits. One involved electronic transaction report ing and a proposed local ordinance mandating uploads to LeadsOnline; the other involved a bankruptcy trustee’s action to recover funds from a pawnbroker long after the legal foreclosure period expired • Ohio—Responded to a bill that would require their regulatory authority to select an electronic database provider, allow local law enforcement to decide ownership disputes, and other provisions favorable to one national pawn chain but not good for local independent pawnbrokers • Kentucky—Assisted in communicating concerns
about an electronic transaction reporting ordinance and proposed metro government contract with LeadsOnline In each of these actions, the GRC worked with state presidents and other designated NPA members to develop grassroots strategies, evaluate pending bills, and prepare materials they could use to reach out to regulators and local or state elected officials.
Grassroots!
Grassroots work is the key to all legislative success, and the state and local levels are no exception. Local pawnbrokers must do the work of meeting and connecting with their representatives. Local and state elected officials could care less what a national association, which represents many states, has to say. NPA is not their constituent. YOU ARE! So let’s all get out there and plant those seeds, and make sure they grow.
Calendar of events
10/2013 SOUTHEASTERN PAWNBROKERS
01/2014 SHOT Show
OCTOBER 4-6, 2013 Crowne Plaza Resort Asheville Asheville, NC Contact: Elaine Christian Elaine@execman.net, (919) 876-0687 pawnnc.com/The_SE_Regional_Convention.asp
04/2014 NPA Legislative Conference
REGIONAL CONVENTION
TEXAS ASSOCIATION OF PAWNBROKERS (TAP)
OCTOBER 18-20 Embassy Suites, DFW North, Grapevine, TX Hotel Reservations: (800) 362-2779 $132 single/double suite, through 9/27/13 Contact: Peggy Roden, tap@rmaus.net (972) 506-0203, texaspawnbrokers.com
CALIFORNIA PAWNBROKERS ASSOCIATION (CAPA) 57th Annual Convention and Exhibition OCTOBER 25-27 Marriott Newport Beach Hotel and Spa Hotel Reservations: (800) 266-9432 Contact: Kim Andosca, kandosca@amgroup.us (916) 669-5322, convention.californiapawnbrokers.org
January 14-17, 2014 Sands Expo and Convention Center, Las Vegas, NV shotshow.org
April 9, 2014 Hamilton Crowne Plaza, Washington, DC Contact: Matthew Church Matthew@NationalPawnbrokers.org, (817) 337-8830 NationalPawnbrokers.org/government-relations
06/2014 JCK Exhibition 2014
June 1-4, 2014 Mandalay Bay Convention Center, Las Vegas, NV lasvegas.jckonline.com
07/2014 Pawn Expo 2014
July 8-10, 2014 The Mirage, Las Vegas, NV Contact: Lindsay Wilson PawnExpo@NationalPawnbrokers.org, (817) 337-8830
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Index of Advertisers ADVERTISER Page
ADVERTISER Page
ADVERTISER Page
Aaria 3 (248) 961-0506 AriaDiamonds.com
Garrett Metal Detectors 55 (800) 527-4011 Garrett.com
Rapaport (212) 354-9800 rapaportauctions.com
ABC Diamond Buyer 5 (586) 354-7274 ABCDiamondBuyer.com
Geib Refining 57 (800) 228-4653 GeibRefining.com
RMF Consulting Group 19 (866) 204-7209 checkconsultants.com
Alex Gold & Diamonds 60 (212) 391-6637 alexgtoldrefinery.com
Gemological Institute of America 56 (800) 421-7250 gia.edu/trylearning
Rolland Safe 51 (800) 225-2984 rslc.net
Hallmark Research Institute 44 HallmarkResearch.com
TMC Trading 48 (404) 602-9666 TMCrefining.com
Assay On Wheels 41 (855) 351-0346 AssayOnWheels.com Blue Ground Trading 8 (732) 696-8556 bluegroundtrading.com Bluestone Trading (888) 800-BLUE (2583) Bluestone-Trading.com
Back Cover
Burrell Printing 21 (800) 531-5234 BurrellPrinting.com The Buyers 52 (562) 945-7276 TheBuyers.com Cash America 65 (866) 291-8110 pawnshopbuyer.com CompuPawn 58 (866) 545-9868 CompuPawn.com Data Age/PawnMaster 15 (888) 949-7296 PawnMaster.com/npa Dillon Gage 18 (888) 436-3489 dillongage.com Garfield Refining 13 (800) 523-0968 GarfieldRefining.com
Hi-Tech Precious Metals & Refinery 24 (866) 950-7528 HiTechPMR.com
Hover & Strong 11 (800)759-9997 hoverandstrong.com International Gemological Institute igionline.com
Inside Front Cover
17
Stallcup Group 42 stallcupgroup.com Stebgo Metals 7 (800) 289-0138 stebgo.com Stuller 45 (337) 262-7700 stuller.com
Livesay’s (800) 476-2715 Livesaysinc.com
62
The Trendz 53 (866) 337-7464 thetrendz.biz
Manhattan Gold & Silver (212) 398-1454 mgsrefining.com/npa
63
United Precious Metals 22 (800) 999-3463 UnitedPMR.com
Mid-States Recycling & Refining (800) 551-0083 midstatesrecycling.com
16
US Gold Refinery 59 (212) 444-4700 USGoldRefineryLLC.com
National Jewelers Supplies (888) 657-8665 NationalJewelersSupplies.com
56
North American Metals (800) 773-1626 NorthAmericanMetals.com
21
White Pine (646) 758-0255 whitepinesales.com
47
Padmavati Exports (212) 869-0544 Padmavatiexportsinc.com
27
Worldwide Diamond (213) 622-2191 WWDiamond.com
54
Palak Diam (213) 228-0077 PalakDiam.com
12
Wexler Insurance Agency (800) 432-1853 WexlerInsurance.com
Inside Back Cover
The NPA does not specifically endorse any entity and makes no representations, warranties or guarantees, and assumes no responsibility for, the products or services provided by these entities. The NPA expressly disclaims all liability for damages of any kind arising from the use or the performance of the products or services provided by these entities. 68 | National Pawnbrokers Association | summer 2013
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Wexler Pawnbroker Flyer FISCA_Layout 1 2/1/13 4:03 PM Page 1
RANCE U S N I R E L X WE
INSURING
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ive Prices it t e p m o C t a erage The Best Cov
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Wexler FP.indd 37
New York Office 580 Fifth Avenue Suite 715A New York, NY 10036 Tel: 212-391-5211 Fax: 212-391-5212 California Office 2711 East Coast Hwy. Suite 106 Corona del Mar, CA 92625 Tel: 949-723-3835 Fax: 949-723-3839
Georgia Office 845 Glengate Place Atlanta, GA 30328 Tel: 404-252-9593 Fax: 404-252-9859 Virginia Office 20268 Island View Court Potomac Falls, VA 20165 Tel: 703-450-6166 Fax: 703-450-1830
Ask about our exclusive Workers Comp program for Pawnshops which is available in all 50 states.
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7/5/13 10:16 AM
Call For Your FREE Diamond Clarity Grading Booklet
Large Selection of Diamonds and Estate Jewelry BUY - SELL - CONSIGN
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The National Pawnbrokers Association’s logo is a registered trademark. Use is Association after receipt of a completed Logo Use Agreement. Only members
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1-COLOR PRINTING: Black
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For use at over 1 inch in scal Bluestone_BL.indd 64
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