In the Loupe

JEWELCONNECTLAUNCHES NEWMARKETPLACEMove some of your non-moving stock. SEE PAGE 4

MARKETING MATTERS:TO ERR IS HUMANWhat do you do when amistake is made? Here aretips to turn an “Oops!” intoa “Wow!” SEE PAGE 7

IS SILVER THE NEXTGOLD?The Gold Rush appears tobe over for retail goldbuyers. SEE PAGE 11

I N T H ELOUPE

March 2014 � Issue 54

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

The Ultimate Jeweler Resource

NEXT GENERATIONEXPERIENCERJO, along with sponsoringvendors Stuller and RDI,will launch the first-everNext GenerationExperience, from May 17 -19, 2014, at the HyattLodge in Chicago, IL.

Southern Splendor Show a Winner!THE HEADLINES in the Savannah papers were all about the unexpectedsnow and cold temperatures. But the headlines to come out of the SouthernSplendor Buying Show at the end of January were filled with warmreceptions, good cheer, great interaction, and deals on the show floor. Fromthe well-attended seminars and keynotes, to the new Idea Center, thehundreds of RJO attendees were treated to another record-breaking show.

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

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

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


Buying Shows• The Savannah show was a big hit with lots of

learning and buying. So mark your calendars nowfor this August 16-18 in Minneapolis.

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

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

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

Education

• We offer a webinar once a month from our“Education on the Go” series. You can listen to it liveor go to our website to watch it at a later time. Past webinars are archived on the RJO website foryour convenience.

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

• The best way to get additional education and learnfrom your fellow members and vendors is byattending the RJO shows.

Opportunities

• RJO had a great opportunity when we paid out morethan $4.9 million for patronage dividends (a 4.46percent payout-per-member based on 2013 sales).Look for your second check at the end of May.

• Speaking of patronage dividend checks, you shouldthink about using part of it to attend our greatsponsored buying trips in October. All trips offergreat incentives and marketing materials.

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

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

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

RJO CEO

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

In the Know with RJO by RJO CEO Mary Peterson

Did ’ya know?

Spring Buying Show 2014 • Southern Splendor • Savannah

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

Post: We are thinking about doing a small case of consignment jewelry. Thinkingthat we should charge a $25-$35 “check, tighten, and polish” charge up-front, then30-40 percent of the sale. Not sure if that is competitive or not. Any thoughts?

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

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

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

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


S E R V I C E S

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 (ONTHE RJO WEBSITE)

EDuCATIONAL SEMINARS(AT THE BuYING SHOWS)

MEMBER-TO-MEMBER INCENTIvE PROGRAM(RECRuITMENT PROGRAM)

ORGANIzED BuYING TRIPS TOANTWERP AND IDAR-OBERSTEIN, AND ISRAEL

RJO DIRECTORY

TRAvEL vOuCHERS AT SHOWS(OFFERED AT vARYING TIMES)

FREE HOTEL ROOM INCENTIvE(AT THE BuYING SHOWS)

RJO INFORMATIONAL E-MAIL BLASTS

PuRCHASE vOuCHERS(AT THE BuYING SHOWS)

RJO MEMBERSHIP CERTIFICATE

EDuCATION ON THE GO PODCASTS ANDWEBINARS

PRIvATE LABEL CREDIT CARD SERvICE

JEWELCONNECT



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

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

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

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

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

Marketplace is in Beta testing at the moment, but live onthe JewelConnect system. More items will be added tothe system over time and the entire facility expanded.“We’re excited that we can give the group another way tofind great and profitable items, free-up some capital byliquidating non-moving stock and trade as a group” saysThomas Roethling, JewelConnect’s data manager.

The system is located at www.jewelconnect.com and theretailer log-in is on the top right of the screen. The newfeature is highlighted in red to introduce everyone to it.JewelConnect also loves feedback, so if you have anycomments, let them know at [email protected]



PLAN NOW FOR

OUR NEXT BUYING

SHOW!

There’s No Business LikeShow Business

August 16 – 18, 2014Minneapolis, MN

Future Show LocationsJanuary 2015: San Antonio, TX

August 2015: St. Louis, MO

January 2016: Phoenix, Az

July 2016: Indianapolis, IN

February 2017: Tampa, FL

August 2017: Denver, CO

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

• Jeweler purchases were up 4.66% from 2012

• The patronage dividend percentage was 4.46%, totaling more than $4.9million in payout

• RJO welcomed 41new stores, comprising more than $2 million inpurchases

• Seventeen new vendors were welcomed

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

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

• The RJO Idea Center was introduced



RJO Sponsored Trips 2014

This October: Visit Europe or IsraelFOR MORE THAN 25 YEARS, RJOand participating retailers haveexperienced on-going successbuying diamonds directly from thesource, beginning in Antwerp. In2006 RJO extended these trips toinclude Idar-Oberstein, Germany,the colored gemstone capital ofthe world. Last year RJO initiated acompletely new trip to Israel.

While more complete and updatedinformation on all of these tripscan be found on trip-dedicatedweb pages on the RJO website,here’s a rundown of the trips forthis fall.

First Europe TripHosted by Liz Schlauch & JeffHorlacherAntwerp: October 4-9Idar-Oberstein: October 9-13

Second Europe TripHosted by Connie & Steve MatsenAntwerp: October 11-16Idar-Oberstein: October 16-20

Joining the buying trips to Antwerpand Idar-Oberstein allows you tofocus on your diamond businesswhile RJO takes care of the rest.

When you take advantage of thisoutstanding opportunity, you’ll

qualify for theseincentives:

• First-timetravelers receive$500 towardtravel expense

• Free 19-inchTv/DvD player,with AntwerpAdvantage DvD

• Personalized DvD filming at FallBuying Show

• Overseas hosted dinners• “How To” marketing guide• Entry into a drawing for 1ct tw.

diamond studs

Israel TripHosted by Jeff Wickersham andJennifer ZachariasOctober 17–25

RJO takes you along some of themost exotic backdrops of Israel,while touring eight RJO vendors inone of the largest and mostimportant diamond centersworldwide —an excursion that willgive you a heady mix of businessand pleasure.

RJO and sponsoring vendors willprovide the followingcomplimentary marketing support:• Personalized DvD filming at

summer shows• Direct mail postcards• Duratrans poster• In-store poster



Marketing Matters

To err is human, to forgive divineTHAT TITLE—WRITTEN BYALEXANDER POPE more than 300years ago—pretty much provesthat he never worked retail!

These days it sometimes feels likecustomers cannot be pleased.Strange as it sounds, it is as if theywant to have something go wrongso that they can gripe andcomplain. If it gets bad enough andthey aren’t pampered just right,they might threaten to call theirlawyer, or worse. With social mediathese days, they might have more“friends” than they normally wouldhave in the past.

We are all human, and we makemistakes. We are never going tomake everyone happy, but as longas we do our best, we should beable to feel good about our efforts.There are a few keys to making thecustomer happy.

Deal with it immediately!The longer you wait, the worse itbecomes. Sometimes that is toughto do because you don’t have allthe facts. In that case, it is essential

to tell the customer how sorry youare and that you need to get somemore information and that you willget back to them immediately.Then? Do just that.

“I’m sorry!”We as a society struggle with thisphrase. We don’t like to makemistakes, but they happen. No oneis perfect. Even if it is not fully yourfault, muster all the sincerity youcan, and tell the customer howsorry you are. This will go a longway to calm the situation.

The severity dictates the response.If it is a minor mistake like aforgotten receipt or poorlywrapped gift, fix it quickly and goabove and beyond the customer’sexpectations. Drive the receipt totheir home, go to their home oroffice and re-wrap the gift, etc. Doit quickly, and do it well.

If it is a little bit bigger mistake,then the key is that the response isbigger than their expectations.Imagine a nervous young man onhis knee in a busy restaurant, he

proposes and hands his fiancee abeautifully wrapped box that, forwhatever reason, is empty. (Ithappens—check out the RJO ChatChannel). Surely everyone will laughabout this later, but at the time thisis a major tragedy.

A humble and sincere apology anda small token of apology (an annualcleaning? personal pickup anddelivery? a special gift?) will remindthem what great customer serviceyou offer, even in bad times!

The key is to act quickly, apologizesincerely (even if it’s not your fault)and to go beyond expectationswith your response. This will fix 99 percent of the mistakes.Remember that you will neverplease everyone, but you shouldendeavor to do your best to try.


Michael C. Woody is President and Chief IdeaOfficer of Capital Ideas. He has nearly 30

years of experience in television advertisingand loyalty marketing. Phone: 515-556-5373.

E-mail: [email protected]: www.ideas2burn.com


RJO SERVICE AWARDS:

Linda BrownRJO staff for 25 years of service

Tom DavisMany years of service on theMerchandise Review Committeeand two terms on the RJO Boardof Directors

PRIZE DRAWING WINNERS:Electronic Wine OpenerDonated by Federated InsuranceLisa Pribyl, Cahill Jewelers, Inc.

$200 American Express Gift CardDonated by Jewelers MutualDeb Borgemoen, WickershamJewelry, Inc.

Preciosa Crystal PurseDonated by Aladdin Gold CreationsJennifer Kidder, Paul GrossJewelers

$200 Legal Seafood Gift CardDonated by Connoisseur ProductsMark Smith, Plaza Jewelers

One Ct. Solitaire Diamond Donated by Bauman Massa (througha push notification contest)Evan Ritter, Ritter Brothers

Diamond Fashion Sample LineDonated by A. Neal Originals (“LikeUs” on Facebook contest)Barbara Hays, victor SettleJewelry, Inc.

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

.48 Ct. Floating Diamond PendantDonated by Paul Reiser & AssociatesParis & Dolly vonRabenau, ParisvonRabenau Jewelers

22” TV/DVD PlayerDonated by OstbyeMike Noonan, Elmquist, Inc.

Southern Gift BasketDonated by Concept MarketingYocom Jewelry

“Southern Flower” EarringAssortment Donated by Concept Marketing for“the person who says the mostsouthern phrase” contestJanice Zerbe, zerbe Jewelers, Inc.(for the phrase “Well, butter mybuns, and call me a biscuit.”)

Award & Prize Winners

CHARITY DONATIONRJO was proud to donate $430 to TheChristian Girls School of Pasrur, ayoung girls’ school in Pakistan. Themoney will go toward the purchase of

computers, desks and chairs.



CASH GIVEAWAY WINNERS (JEWELERS)

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

$200Charla Hall, Baker & BakerTeresa Swank, Swank’s JewelryEarl Butler, K E ButlerAngie Becker, Becker Jewelers

$500 GRAND PRIZERandy Pedersen, Diamond Center

$50 CASH GIVEAWAY WINNERS (VENDORS)K. Girdharlal • Leddel Designs, Inc.Aladdin Gold Creations, Inc. • Bulova

MEET-A-VENDOR CHALLENGE: Members were “challenged” to meet ten vendorsthey have never purchased from before. If theycollected the business cards of these vendors theywere entered into a cash drawing. Winners were:Hanson’s Fine Jewelry, Forest City, IA ($250)Anderson Jewelry, Minden, NE ($500)Becker’s Jewelry, Mt. Pleasant, IA ($750 Grand Prize)

BEST IN SHOW – VENDOR SPECIALConcept MarketingThey will receive 20 percent off of their booth fee atthe upcoming show in Minneapolis.

Buying Show SponsorsRJO thanks the vendors below for their generoussponsorships of the RJO Southern Splendor

Buying Show. Their support is greatly appreciated andprovides the retail membership with wonderful perks

throughout the show.

A & D GEM CORPORATIONALLISON-KAuFMANBAuMAN-MASS JEWELRY CO.BENY SOFER, INC.COLOR MERCHANTSCONCEPT MARKETINGDARLING IMPORTSDEBBIE BROOKSDIAMOND EXPRESSIONSDIzEODORA INTERNATIONALEDGE BY ABBOTT &

SHAPIRO FEDERATED INSuRANCEGAGE & GAGEGEMS ONEGROT IMAGING STuDIOINTERINGSJAYDEN STAR LLCJEWELERS MuTuAL INSuRANCEJEWELEXK. GIRDHARLALKAMELEON JEWELRY /

JEWELPOPLEvY CREATIONSMARTIN E. JACOBSON LTD.METAL MARKETPLACE, INC.NORTH AMERICAN JEWELERSNTR METALOFER MIzRAHI DIAMONDS,

INC.

SCHuRHAMMER MFG. INC.SIMPLY DIAMONDS / M.A.

REICHSOL SAvRANSKY

DIAMONDSSTAR GEMSSTuLLER, INC.TD RETAIL CARD SERvICESTHE LIBMAN COMPANYYCH, INC.

ANTWERP/IDAR-OBERSTEINTRIP SPONSORSHANS-DIETER HAAG INTERJEWEL u.S.A. INCROSY BLuE TRADING, INC.SCHuRHAMMER MFG. INC.

ISRAEL TRIP SPONSORSBAuMAN MASSA JEWELRY CO.CHERIE DORI FISCHER DIAMONDS INC.OFER MIzRAHI DIAMONDS

INC.PANCIS GEMS INC. ROSY BLuE TRADING CO. SOL SAvRANSKY

DIAMONDS



Savannah Travel TalesRJO stories about getting to and from the Buying Show Due to quite unusual winter weatherhitting the southeast during the BuyingShow (it was warmer in Fargo, ND,than in Savannah during the show),many attendees had difficulty in theirtravels. Here are a few of their stories.

Getting There

Amber Gustafson, Amber’s Designs,Katy, TX

My flight out of Houston was delayeddue to icy roads and weather there.When I arrived in Charlotte, NC, I hadmissed my connecting flight toSavannah. I tried standby for the nextflight, but it was full. The next availableflight after that also was full, and Idecided I did not want to wait until thenext morning for a flight.

As it was, I was not the only one thatcould not get on a flight. Anothergentleman going to Savannah also wasdelayed, and we started a conversation.It turned out we were both headed tothe Buying Show, and we both wanteddesperately to get to our finaldestination. We decided to rent a cartogether and drive 3.5 hours across twostates, to Savannah.

Essentially, I was driving with astranger, but he was one of the RJOfamily. This is what makes RJO sospecial.

Getting Home

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

I was supposed to fly back to KCI onTuesday, January 28; Delta was myairline. Because of the ice and snow inAtlanta, all flights were cancelled. I wentback to the convention hotel. I went tothe airport Wednesday, but nothingwas flying. Atlanta was a mess.I asked to be placed on medicalemergency status, as I had animpending surgery scheduled.

Early Thursday morning, Delta told memy status would be upgraded and Iwould be home that day. So I went tothe airport and got my tickets andchecked in my luggage. The last Deltaflight left on Thursday and I was still inSavannah. I tried to talk to the gateagents on Thursday afternoon, but theywere too busy taking care of otherpeople. By then I was exhausted andbegan to cry. I explained everything,and the gate agents felt awful about it.Delta put me in nice hotel for the night.

At the airport the next morning, I madefriends with several other RJO people.Eventually I made it home.

Editor’s Note: Mary had her backsurgery on February 4 and is recoveringnicely.

James and Sonya Cantrell, Cantrell’sFine Jewelry, Coffeyville, KS

Our flights home were cancelled, andwe decided to rent a car and drive backto Kansas. We got caught up in thetraffic problems in Atlanta and spenttwo days trying to get out of there. Neverknew we could spend so many hoursgoing nowhere! We left Savannah around 10:30 the firstmorning, and basically sat in trafficuntil 9 that night. We finally found ahotel up on a hill, but were told our carwould never make it up the hill. We toldthem to watch; we’re from Kansas anddriving on ice is nothing to us. Wedrove right up the hill. The next day, as we were leaving, weagain were told we couldn’t make itback down the hill because it was asheet of ice. It was, but “we are fromKansas, and ice does not keep us fromdriving.” We drove right down the hill.upon leaving I rolled down my windowand hollered, “We’re off to Kansas.” Little did we know we would spend theday in traffic again, trying to get out ofAtlanta. There were so manyabandoned cars and trucks that it gaveus an eerie feeling. Even after all that, we still got homequicker than we would have if we hadflown.



Adams Jewelers, Inc. (2nd Location)George AdamsSparta, NC

Andy’s JewelryAndrew TruxilloLafayette, LA

Brenda’s JewelersKim TuckerSouthern Pines, NC

Creative JewelersBilly HammockFlorence, AL

Evon’s JewelryEvon JoinerJackson, MS

Holland’s JewelersGinny and Stacey SearsApex, NCReferred by Ashley GreenGreen’s Jewelers, Roxboro, NC

Lake Oswego JewelersPattie Hoag, Tiah andTravis LavespereLake Oswego, ORReferred by Charla HallBaker & Baker JewelersMarietta, OH

Robert’s JewelersRobert Scott, Joyce RempeSouthold, NYReferred by Henry GoldfarbAgem, Brentwood, NY

NEW MEMBERS

Thank you to the jewelersreferring new members to ourgroup. These jewelers will receivea $1,000 finder’s fee for theirreferral, payable after a newmember has been in goodstanding for at least six months.

Is retail gold-buying’s heyday behind us?

A REVIEW OF CHAT CHANNEL POSTSfrom 2010 and 2011 finds that RJOjewelers were reporting that goldbuying was responsible for 50percent or more of their profit. Sohow is gold buying going in 2014?Here are some recent edited posts onthe topic from the RJO Chat Channel:

I think we are at the bottom. We arestill making some small gold buys,but nothing like we were two yearsago.

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

So far this year we have paid out 34percent less (compared to last year),but with the gold price being down,we are paying less. In 2013 we paidout 25 percent less than we did in2012. We don’t advertise gold-buying,but we still get people coming inalmost every day selling gold. Itdefinitely has slowed down.

The gold rush has ended, and thesilver boom is starting. After thesilver is exhausted, then maybe therewill be a copper boom.

Gold buying has all but stopped.Customers are now bringing in their

mall rings and pendants, expectingretail for them.

I think that ship has basically sailed.Time for us to figure out how to selljewelry again.

Our gold-buying is off by about 50 percent from last year. I justmailed out scrap for the first timethis year. I’m sending out our benchfilings and emery sticks andpolishings.

In the past 29 months or so gold hasdropped 35 percent an ounce, yet weare still averaging $20,000 a month.



NEW VENDORS

MARCH 2014

9Daylight Savings Time begins

10All payments must be received inRJO Office

17St. Patrick's Day

20Spring begins

21All invoices must be received inRJO Office

The Ultimate Jeweler Resource

APRIL 2014

April Fool's Day

10All payments must be received inRJO Office

20Easter

23- All invoices must be received in

RJO Office

- Administrative Professionals Day

Grice Showcase & DisplayCharlotte, NC

Simply Diamonds purchased M.A. ReichNew York, NY

PRST STD US POSTAGE

PAIDBRAINERD MNPERMIT NO 472

MILESTONE

Jake Andrew Streb was bornJanuary 30, 2014. Jake is the sonof RJO COO Sarah Streb andgrandson of RJO President TerryDickens of Herteen & StockerJewelers in Iowa City. He is joinedat home by two brothers: Drew,age 7 and Trey, age 5.

Documents

In the Loupe