IN THE
LOUPE November 201 4
The Ultimate Jeweler Resource
Issue 58
RJO Round-Up in San Antonio
BUYING SHOW REGISTRATION BEGINS FRIDAY, NOVEMBER 7
CONNECTING
In the Know with RJO SEE PAGE 2
MARKETING MATTERS: ACKNOWLEDGE AND ACQUIRE
FILLING THE PATHS ALONG THE RIVER WALK in downtown San Antonio, one would usually find an assortment of bright colors, festive music, and aromas from a terrific array of restaurants. The last weekend next January will find an addition: hundreds of RJO members, soaking in the sun, the camaraderie and the delight that the town and the Buying Show offer. Once we’re all round-up and back at the Show, more delight awaits: great offerings of the vendors on the Buying Show floor and terrific entertainment. Before then, though, RJO will deliver its usual abundant membership benefits as well, including:
• one $250 travel voucher for each qualifying store when you register by December 29; • up to three consecutive nights’ stay at the host hotel, the Hyatt Regency San Antonio;
• buying discounts, via RJO Purchase Vouchers, allowing you to save up to an additional two percent on what you buy from vendors; and • one $10 lunch coupon (for concessions on the Buying Floor) for each store, courtesy of your generous RJO vendors.
Online registration will open on November 7, and it is easy—just go to: www.rjomembers.com, log in, and go to the Buying Show section. Registering online can be completed in a matter of minutes. You may also complete the Registration Form that is located on the last page of your Registration Packet, which will be mailed out in early November. Mail or fax it to the RJO office: P.O. Box 1045, Newton, IA 50208. Fax: 641-792-9251.
The opportunity associated with people who come to your store after doing internet research on their purchase SEE PAGE 9
FAMILY. DIVIDEND. SUPPORT. BUYING POWER.
In the Know with RJO by RJO CEO Mary Peterson CONNECTING
I ALWAYS GET EXCITED AS OUR Buying Show draws near. It is great to see everything come together with hot-topic seminars, fun activities and incredible vendors from which to buy. The part I enjoy the most, though, is reconnecting with members and vendors. I am so proud when new attendees say they feel welcome at our shows—from fellow members, to vendors and staff. We are known as an inclusive organization that truly values our family-oriented approach.
I have to admit I have found great pleasure as well in something outside of our Buying Shows. This year we offered two new programs: “The Next Generation Experience” and “The Succession Experience.” These were each two-day events in which members had the opportunity to learn, share, and create relationships for mutual support. The participants gave rave reviews on both programs.
This opportunity allowed me to have more direct connection with our members, and it gave me the chance to learn more about their needs and what RJO can continue to offer as quality services. It was great to see the new friendships formed, creating future support of our members with one another. I was so lucky to be able to educate and facilitate these programs, as well as learn from each of the participants.
These two new programs are exclusive to RJO members, and they are progressive in our industry.
We are incredibly proud of these programs, as they will help sustain the future of our industry, something the organization holds in very high regard.
We will again offer the “The Next Generation Experience” and “The Succession Experience” in 2015. These programs would not be possible without the generous support of our vendor sponsors. I wish to thank RDI and Stuller for supporting “The Next Generation Experience” and Ostbye, Charles Frey & Co., and Federated Insurance for supporting “The Succession Experience.” These vendors were present during both programs and gave great perspective for each program.
I always will be excited for our Buying Shows—to see us all together working hard to keep our businesses sharp and, at the same time, supporting one another. I am just as excited for the new efforts and programs we are offering that give even more to our membership.
Remember: RJO is your organization, so take advantage of all that it has to offer. We truly are an exceptional organization due to our great members and vendors, and I am blessed to be a part of it all. Mary Peterson RJO CEO
Attendees at the inaugural “RJO Succession Experience,” held in Chicago in October. See the story on page 4.
FAMILY. DIVIDEND. SUPPORT. BUYING POWER.
From the RJO Chat Channel SERVICES
Centralized Billing Patronage Dividend RJO Website (rjomembers.com) Buying Shows (Fall/Spring) RJO Chat Channel In the Loupe – RJO’s newsletter Free Print and Radio Ad Library (on the RJO website) Educational Seminars (at the Buying Shows)
Member-to-Member Incentive Program (Recruitment Program)
Response Two: I once read somewhere that we should go to some of the local banks, see how their employees dress, and then match that. That way we are not over-dressed or under-dressed. If they wear ties, we should wear ties.
Free Hotel Room Incentive (at the Buying Shows)
RJO Membership Certificate Education on the Go Podcasts and Webinars Private Label Credit Card Service JewelConnect
Correction
In the September issue of In The Loupe, we accidentally omitted a Minneapolis Buying Show sponsors:
Sterling Reputation
We apologize for the error.
I have been thinking about it more recently, as I see how our customers dress and consider who our clients are. We are in a college town—in fact we are just across the street from campus, so we see a lot of faculty and students. The dress by both is fairly informal—obviously from the students, but also the staff and faculty. Yes, I think it would be more comfortable without the tie, but I also have been thinking about dressing for the customers. Response One: No tie here in the last ten years or so.
(offered at varying times)
(at the Buying Shows)
Post: Quick question (and possibly a stupid one): We have throughout our history been a formal, traditional store. Our décor echoes this in large part, as well as our dress. The discussion has come up recently regarding dress code … for the guys. The basic question is: Do the male employees in your store wear ties?
What are your thoughts?
Organized Buying Trips to Antwerp and IdarOberstein, and Israel RJO Directory Travel Vouchers at Shows RJO Informational E-mail Blasts Purchase Vouchers
THE CHAT CHANNEL ON THE RJO WEBSITE (www.rjomembers.com) hosts a variety of interesting discussions each month. Here’s an edited post from this a few weeks ago—and responses to it—that can be found in the RJO— Open to RJO Jewelers Only area, under the heading “Dress Code — To Tie or Not to Tie”
Response Three: We are more informal than most stores. I usually wear shorts in summer at the store. To my knowledge I haven’t seen any large sales not happen because of my dress. Most people know me and come into my store because of our knowledge and not because of a tie or not.
Response Four: When I first came to town I wore tie and coat. Didn’t take me long to figure out that it did not impress the farmers. So, business casual here.
Response Five: I’d say that you should dress like the product you are selling. I have to say that I do wear a tie every day, but not always a suit coat.
Response Six: No tie. I have on khakis and a button-down plaid shirt. Agriculture here as well. The farmers who spend the money are more comfortable here.
Response Seven: Shirt and tie most days. Casual Fridays in the summer (e.g., nice slacks and linen shirt). During snowstorms in winter, corduroy pants and a sweater.
Response Eight: I think you should be consistent in your business image. You said “We have throughout our history been a formal, traditional store. Our décor echoes this in large part as well as our dress.” If your merchandise, décor, marketing and merchandising all suggest formal, traditional and upscale, then keep the tie and add a suit coat.
FAMILY. DIVIDEND. SUPPORT. BUYING POWER.
Inaugural RJO Succession Experience Provides Value Across Generations MORE THAN 30 RJO members attended the RJO Succession Experience in Chicago last month. The three-day program brought jewelers together interested in preparing for the future of their business.
children. We found out we were further ahead than most others and more than we thought we were. We also found good ideas to implement to help us finish the job.”
“We went to start the ball rolling,” says Denise, “learning about filling out paperwork in case of death and selling the business to our
During the course of the Sunday afternoon-to-Tuesday morning Experience participants attended a number of sessions on a variety of topics, including: “The Emotional Challenges in Succession,” “The Other Side: Hearing from the Successor and the Next Generation Opinion,” “Building Business Value Prior to a Sale and How Much Will a Buyer Pay,”
Denise Basch attended with her husband, Don; both are owners of Don Basch Jewelers, with locations in Macedonia and Medina, OH. They were part of those considering “handing over” their business.
“Identify Your Needs and Goals of Other Stakeholders, “ and “Putting Your Plan in Place: Next Steps.”
“One of our goals all along,” says RJO CEO Mary Peterson, who hosted the event, “was to help our RJO member stores find time to think about their future, but also engage them, so that they can continue to learn after this one weekend. I think a big takeaway is that we have now created a small network of fellow jewelers who can look to each other for support as their succession plans move forward.”
Antwerp/Idar-Oberstein and Israel Travelers Return (Again and Again)
OCTOBER SAW ANOTHER CONTINGENT of RJO members escorted around Europe courtesy of more than three decades of experience and some wonderful hosts. Members from 34 stores visited Antwerp, with some extending their trip to IdarOberstein and another group visiting Israel. Eight of the stores were first timers.
Comments from participants are always positive, and this one from a first-timer emphasized that these annual offerings are more than just pleasure trips: “The buying trip to Europe is an excellent opportunity to brand your store. In talking to one of the vendors in Antwerp, we talked about bringing more education to turn the experience into one where you come back more of a diamond expert. If that happens I could see the program growing and becoming a must-attend annual event for me.”
Dates for RJO’s 2015 trips are not yet set. To learn more about this great opportunity, contact RJO trip co-coordinators Connie Matsen (cmatsen@rjomembers.com) or Pauline Berger (pauline@rjomembers.com) at RJO’s offices: 800-247-1774.
JewelConnect Diamond Library Grows
JEWELCONNECT.COM HAS GROWN its diamond library to more than 16,500 stones, with the addition of new vendors, including Paul Reiser & Associates and Ofer Mizrahi Diamonds.
“The diamond library is available exclusively to RJO retailers and now has more choice than ever,” says Andrew Boundy, JewelConnect’s system designer. “This month we had two new vendors sign up to display their diamonds to all 600 JewelConnect retail members.”
“Having the stones available ‘is a big deal,’ continues Boundy. “The system allows for retailer specific markups and vendor selection, and it integrates with all JewelConnect offerings, including the mobile platform.”
FAMILY. DIVIDEND. SUPPORT. BUYING POWER.
Vendor Profile
United Precious Metal Refining: Simply the Best LESS THAN AN HOUR SOUTH of Lake Ontario in western New York state sits United Precious Metal Refining (UPMR), a leader in refining and manufacturing of precious metals. Founded a little more than 25 years ago, the core members of the staff learned their skill while working at a refinery in Buffalo.
“We have a knowledgeable technical staff that is proficient in all facets of jewelry manufacturing and the refining of precious metals. Our technical staff will visit factories and hold seminars throughout the globe,” says UPMR president Vincent Guadagna. “UPMR distinguishes itself from competition by remaining focused on our customers. We continue to provide door-to-door service. This can be sales, refining pickups, or just drop-ins to see if we can help them in any way. We provide products back in exchange for refining in order to minimize cost for our customers.”
UPMR made headlines this fall as The Commodity Exchange, Inc. (COMEX) announced their approval of United Precious Metal Refining, Inc.’s application.
“We are very excited about our recent COMEX certification,” says Guadagna. “COMEX certified means you have to adhere with their strict guidelines from the purity of your metal to the exact dimensions your fine gold bars have to measure. What this means for the RJO member is that you are dealing with a company that has put the time, resources and efforts from its refining process to ensure a first-rate quality product being provided back into the jewelry industry.”
This is just the latest in a number of certifications and accreditations earned by UPMR, including those
involving: the offering of lead-free metals and products; guaranteeing that their fine gold and fine silver products come from 100 percent recycled materials; their gold is certified Conflict-Free by the EICC; and the UPMR facility itself is SCS-certified as “green,” housing a waste treatment plant in-house to ensure proper processing and disposal.
“The EICC and SCS certifications have very strict guidelines and are recognized on a worldwide stage as being industry benchmarks,“ says Guadagna. “These require third-party audits from two world-class certifications.”
Guadagna also is pleased that serving an international audience still takes place in UPMR’s little slice of New York state.
“Everything we refine and manufacture,” he says “is done in Buffalo, NY. We do not middle-man any of our business or send it to another facility under a corporate umbrella to finish. We are very proud to service our 24,000 customers every day, and we continue to build on those relationships.”
Those relationships extend to RJO members, says Guadagna. “RJO deals with many of the retail jewelers that have long been the backbone of our customer base. The RJO network of members and conventions gives us even more opportunity to network with our customers and give them the personal attention we pride ourselves on.”
United Precious Metal Refining is located at 2781 Townline Road in Alden, NY Phone: 716-683-8334. Website: www.unitedpmr.com
Board Urges Education Regarding the Use of EGL International Grading Reports
At the RJO Board of Directors meeting in October, the use of EGL International grading reports—one of our industry’s hottest topics— was discussed in length. The Board felt a duty to relay current industry decisions to the membership. The Board strongly encourages the membership to become educated on the topic in order to make informed decisions regarding the use of the aforementioned grading certificates.
Following the situation closely— with recent decisions by Polygon to remove all EGL International graded stones and Rapaport to remove all EGL graded stones—the Board feels it is imperative for all RJO members to be knowledgeable to avoid any legal action resulting in the sale of EGL International certified stones. See links to related articles (right). If you have any questions or would like more information, please feel
free to contact any member of the Board of Directors directly. You can find contact information via the RJO website. Retailer Faces More Lawsuits Over EGL Int’l Reports RapNet Bans EGL Grading Reports
Polygon Bans EGL Int’l Reports From Network
RapNet’s EGL decision ignites flurry of reactions
FAMILY. DIVIDEND. SUPPORT. BUYING POWER.
2015 Spring Buying Sho RJO members will be rounded up and hosted at the Spring Buying Show to be held the fourth weekend of January. America’s 7th largest city, San Antonio has a population of nearly 1.3 million and is home to the NBA’s San Antonio Spurs (who are playing at home against the Lakers and the Milwaukee Bucks during the Spring Buying Show).
San Antonio’s downtown is known for having 2.5 miles of pedestrian paths along its River Walk and more than 100 restaurants within the same space. The list of celebrities that hail from San Antonio is extensive, and it includes, Carol Burnett, Joan Crawford, Tommy Lee Jones, Shaquille O’Neal, Lara Flynn Boyle, the Monkee’s Michael Nesmith, and “CBS This Morning” co-anchor Norah O’Donnell. We’ve put together some preliminary information about the Buying Show and its host city. We hope it helps you start your planning for January.
Get to know The Alamo City
The town of China Grove, immortalized in song by The Doobie Brothers, is located ten miles east of San Antonio.
San Antonio boasts an average of 300 days of sunshine and an average temperature of 70 degrees …
… but, thirteen and a half inches of snow fell on San Antonio from January11-13 in 1985, shutting down the usually sunny city and turning it into a winter wonderland.
Although the details differ, historians agree that C.E. Doolin bought a recipe for fried corn chips from a Mexican man in San Antonio for $100 in 1932. Doolin soon begin manufacturing the chips as Fritos.
St. Anthony Hotel becomes the first U.S. hotel with fully functioning air conditioning.
It is illegal for one to shoot a buffalo from the second story of a hotel.
San Antonio has been the location for many popular movies, including: “Ace Ventura: When Nature Calls,” “Miss Congeniality,” “Spy Kids,” and “Pee-wee’s Big Adventure.”
FAMILY. DIVIDEND. SUPPORT. BUYING POWER.
ow • San Antonio, TX • January 24-26 The average high temperature in San Antonio in the middle of January is 63 and the low is 41.
Our Host Hotel: Hyatt Regency San Antonio
Located directly on the River Walk overlooking the historic Alamo mission, RJO returns to the Hyatt Regency, which offers luxurious accommodations in a setting that includes a 16-story atrium lobby in a neighborhood surrounded by a large variety of restaurants, bars, clubs, and shops.
This Four Diamond hotel offers a beautiful rooftop pool and sun deck with panoramic vistas of San Antonio, as well as an onsite barbecue restaurant and an always-refreshing sports lounge. Book your rooms early by clicking here.
The Hyatt Regency San Antonio is located at 123 Losoya Street in downtown San Antonio.
Magnolia Pancake Haus
Featured by Guy Fieri, on his Food Network show “Diners, Drive-Ins and Dives,” Magnolia Pancake Haus is renowned for breakfast, serving up bacon-stuffed waffles and puffy apple cinnamon pancakes since 2000.
A recent visitor posted this about the Haus on TripAdvisor: This breakfast was so far out of the ballpark for good, that it ruined me for any other breakfast at any other restaurant! There was a 45-minute wait, but it was worth every minute. The corned beef hash was out of this world. But what topped it all off was the amazing Apfel Pfannekuchen (left). If you don’t have this, you’re making a big mistake! Magnolia Pancake Haus is located at 606 Embassy Oaks in San Antonio.
Airlines Serving San Antonio
( click on an image to go to that airline’s website )
App Yourself, San Antonio Style San Antonio Official Travel Guide The San Antonio Convention & Visitors Bureau offers a useful mobile app on both the iOS and Android platforms.
Additionally, RJO’s popular Buying Show app will be ready for San Antonio in early January of next year.
FAMILY. DIVIDEND. SUPPORT. BUYING POWER.
Jeweler Profile
Jewelers Workshop: Very Cool Jewelry THE FIRST OF OCTOBER is a memorable day for Jewelers Workshop president and (new) owner Jason Braden. It was the day the Madison, WI, store passed from one generation to the next, with Braden purchasing the store from his father-in-law. The move seems to have been a good one for all involved.
“My father-in-law, Richard Armstrong, came to the University of Wisconsin for grad school and started making jewelry in the library mall,” says Braden, “mostly just setting opal doublets in handmade silver bezels for the hair barrettes fancied by the flower children of early-1970s Madison. Eventually, the store, which opened in 1970, grew into a custom jewelry store, using diamonds, fine colored gems, gold and platinum.”
“Five years ago, my wife and I moved back to Madison,” he continues. “ We wanted to start a family. I was working on an online business project that I was having trouble getting off the ground. Meanwhile, my father-in-law and the Workshop were having some real financial trouble, and he asked me for help in closing a second location. Throughout the process, he asked me if I wanted a store.”
Braden says the two of them worked on the sale for a long time.
“For a while I had a 20 percent share, and he had the other 80 percent,” he recalls. “He built the business from scratch, and much
of his identity was tied up in the business and being a jeweler. We struggled much on what retirement was going to mean, what role he thought he needed to have in the business, and many other issues. I, on the other hand, saw changes that needed to be made. I saw a business that needed to be rebuilt if it was going to last for the rest of my career.”
“My father-in-law drew on his decades of experience in running a business and didn’t trust a newbie,” says Braden. “Who would? I wouldn’t be the first MBA who didn’t know anything about running a real business. He thought my looking at sales reports to run a business was idiotic, since all he needed was a case of jewelry and an up-to-date cashflow statement.”
As time went on Braden made changes in the store, and Armstrong found himself coming in less and less. As things increasingly changed, Armstrong didn’t see himself in the store as much as he used to. Jewelers Workshop today is a single store, with three sales people and three bench jewelers/designers.
“We are a niche provider in the industry,” says Braden. “I think the Instore survey said 90 percent of
stores do custom. For us, 90 percent of what we do is custom (and some repair). We have never successfully carried a line. People sit down and work one-on-one with our designers.”
“I do CAD, other bench jewelers do construction and wax carving,” says Braden. “For us, custom isn’t sticking a sapphire in the second most popular halo wedding ring from last year. It is building it from the ground up, and it is a very interactive process. We create very cool jewelry.”
Braden joined RJO in 2012, just before attending his first Buying Show in Milwaukee, and “I have yet to miss one since. As I have gotten to know our vendors, our spending inside the group has increased almost every month.” Braden also went on his first RJOsponsored trip to Europe last month.
Jewelers Workshop is located at 301 N. Sherman Ave Madison, WI. Phone: 608251-7705. Website: www.jewelersworkshop.com
FAMILY. DIVIDEND. SUPPORT. BUYING POWER.
Marketing Matters
Acknowledge and Acquire I’VE GOT A FRIEND who owns a small but very successful audio/video store, and he has become increasingly frustrated with people who come to his store after doing internet research on their purchase. They look, touch, and feel before returning home to buy online. It is to the point where he and his employees almost prejudge anyone who has done their homework—rightly or wrongly— assuming that they will leave to purchase online. Retail can be a very frustrating career. You bust your tail to provide a good product, fair pricing and a pleasant experience for your customers, only to have them abandon you to save $50 on the internet. Let’s go back to the first sentence, because there is a key in that sentence on how to fix this problem. The key phrase is “people who come into his store.”
I’m betting that most people these days do their research on major purchases on the internet. I know that I do, and most people I know also do. So what you, as retailers, are seeing are informed customers ready to make a purchase. They are in your store and most likely have a credit card in their pocket. Would this not be a person who is ripe to be sold? Them leaving your store to buy on the internet is no different than them leaving your store to buy from any competitor. It is your job to keep them from doing that by convincing them of why they should do business with you.
Are there things that you do—or could do—that can’t be done online? A hassle-free warranty?
An annual cleaning? Free watch batteries? Maybe just darned good customer service and a true desire to please? Do you have room for a well-done piece on your wall that would encourage people to shop the internet but to buy locally? I would think that ten reasons to buy locally would sway even the most diehard web shopper. I said earlier that I do a ton of research on the internet before buying. I failed to mention that I almost never buy on the internet. With few exceptions, I rarely buy online. Heck, I won’t even eat at chain restaurants.
Research says that the odds are still in your favor. Ninety percent of retail sales in our country are still made in brick and mortar stores. It also is possible that the internet is your friend. Maybe you are getting more customers because of people shopping on the internet. Some other statistics to consider:
opportunities from your TV, radio, or print representatives. Sometimes it seems like that is all they want to sell these days. Ask them to help introduce you to their digital opportunities. Be a little cautious, maybe 10-15 percent of your ad budget should be dedicated to a digital presence.
By all means also keep your website and Facebook up to date. Seventyfive percent say that product knowledge they get on social media affects their shopping behaviors. I’ve said for years, and I still stand by the fact, that social media should be used regularly (my thought is no more than once a week) and it should be used to educate consumers. The next time a customer comes in who has obviously done their internet research, shake their hand, and thank them for coming to see you. The sale begins ….
- By the end of the year, it is estimated that half of those who interact with a brand online will be influenced by that interaction.
- More than 80 percent of in-store shoppers have used the internet either before (or during!) their trip to the store.
- More than 20 percent report that they spend more as a result of their internet research. On average they can spend 25 percent more! These are not customers to ignore or prejudge. These are customers to engage and embrace.
Maybe it is time to join that digital space? I’d be shocked if you have not been offered digital
Michael C. Woody is President and Chief Idea Officer of Capital Ideas. He has nearly 30 years of experience in television advertising and loyalty marketing. Phone: 515-556-5373. E-mail: MichaelC@ideas2burn.com Website: www.ideas2burn.com
FAMILY. DIVIDEND. SUPPORT. BUYING POWER.
MILESTONES
BERNICE BECKER, mother of Bill Becker from Becker Jewelers in Mt. Pleasant, IA, passed away October 3. She was 97. Bernice and her husband, Bill, opened Becker Jewelers in the early 1950s, where she worked as a certified bridal consultant. Bill passed away in 1992. The Beckers were among the founders of the Retail Jewelers Organization, and she was honored with an RJO Lifetime Achievement Award in 2011.
WILLIAM KOTTKE, owner of Kottke Jewelers in Owatonna, MN, died September 13. He was 81.
CELICIA RODRIGUEZ, RJO account representative for Allison-Kaufman Company in Van Nuys, CA, passed away in October. Our thoughts go out to each and every family.
CALENDAR NOVEMBER 2014
DECEMBER 2014
Retail Member Show Registration
10
All payments must be received in RJO
opens
Office
All payments must be received in
All invoices must be received in RJO
10
RJO Office 21
19
Office to count towards Patronage
Dividend
- All invoices must be received in
25-26
- Vendor Show Registration closes
29
RJO Office
27-28
Thanksgiving - RJO Office closed
SAVE THE DATES JAN 24-26, 2015
Christmas - RJO Office closed Retail Member Show Registration
closes
CLASSIFIEDS
FOR SALE: 11 Grove Rolling Mill: $450, Neycraft Spincaster: $125, Pro Craft Electroplater: $125, Neycraft Kiln: $300, Vulcanizer: $300, L&R Transistor Ultrasonic: $85, Ring Stretcher/Reducer (#RN515): $175, Inside Ring Engraver: $225, Pro Craft Investment Vibrator $77. If interested, contact: Kris Taylor, Tony’s Master Jewelers, Lacey, WA. Phone: 360-438-2900
Does RJO Have Your Most Up-to-Date E-mail Addresses?
To make our contacts with you more efficient and timely, RJO is increasing the use of e-mail as a contact medium. From regular electronic newsletters to buying show announcements, our e-mail notifications are getting more common and more important.
If you’ve changed your e-mail address lately or would prefer to receive RJO communications at a different address, please let us know. Address updates and changes can be directed to Mary Harger in the RJO office at: mary@rjomembers.com
FAMILY. DIVIDEND. SUPPORT. BUYING POWER.