I N T H ELOUPE

May 2014 � Issue 55

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

The Ultimate Jeweler Resource

RJO Heads North to the Mini AppleMINNEAPOLIS, HOME OF WHEATIES, masking tape, and Bisquick, serves asour host city for RJO’s Fall Buying Show, “There’s No Business Like ShowBusiness.” We’ll be returning to the “Mini Apple,” noted for its farmer’smarket that features fresh roasted corn-on-the-cob, the famous SpoonCherry Bridge (below), and a mall the size of 78 football fields. Sitting on thebanks of the Mississippi River, Minneapolis offers beautiful August weather,easy access by air, and a vibrant downtown.

This show will kick off with the popular RJO golf tournament, then move intoa full slate of educational sessions and seminars, keynotes and roundtables,idea exchanges, entertainment and fun, not to mention the latest andgreatest from RJO’s vendors. In addition to the terrific deals you’ll find onthe Buying Show floor, as always your RJO membership entitles you toadditional perks, including: up to three consecutive nights complimentarylodging for all qualifying stores; special airfare discount; attendance at ourSunday Evening Gala, which promises to be an evening sparkling with theglitz and glamour of old Hollywood; buying discounts; RJO PurchaseVouchers, allowing you to save up to an additional two percent on what youbuy from vendors; and major league baseball, with the Minnesota Twinstaking on the Kansas City Royals in a night game.

Your Buying Show Registration Packet will be mailed at the end of May, so keep aneye out for it, and be sure to watch for the various deadlines, to ensure the there’s noBuying Show like this Buying Show! August 16-18, in Minneapolis, MN.

JCK MAGAZINERECOGNIZES RJOSelected for keeping thejewelry business spinning

SEE PAGE 4

GESSWEIN

CELEBRATES 100

YEARSProud to be providingcraftsmen with “The RightTools” since 1914

SEE PAGE 5

MARKETING

MATTERS: THE

FUTUREThe roots of retail hands-on jewelry sales and thesudden onset of anelectronic world make for acurious future

SEE PAGE 8

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

Minneapolis Show: Did ’ya know?• We have created a great roster of seminars as well

as a powerful keynote speaker, in BrigadierGeneral Steve Ritchie. Get excited for some greatlearning!

• We will have the Event App again for the show tohelp you keep organized and informed.

• The Idea Center on the show floor will allow you tohave one-on-one discussions with seminar speakersand social media trainers.

• NEW at this show, we will offer Idea ShareMeetings on Friday evening. These meetings will bea great opportunity to learn from your RJO peers. Inthese professionally facilitated sessions, RJOjewelers have the opportunity to be paired withstores of a similar size to share ideas, best practicesand discuss hot topics. These will be highlyinteractive sessions in which the participantschoose the discussions topics.

• Meet all our great vendors and our newly selectedvendors to see all they have to offer. No doubt theycan meet all of your needs.

Education: Did ’ya know?

• The Next Generation Experience is happening May17-19 in Chicago. We are very excited by the interestin this program and want to say a huge thanks to

Stuller and RDI for making this experience possible.We even have a waiting list started for the 2015program!

• We are working on a program for October forowners of stores planning their succession. It will beheld in Chicago and be an interactive learningexperience. We will keep you posted on registrationand content.

Opportunities: Did ‘ya know?

• You will be getting the second half of yourpatronage dividend at the end of May. Think aboutusing part of it to attend our great buying trips inOctober 2014. All trips offer great incentives andmarketing materials.

- Antwerp: October 4th-9th and October 11th-16th

- Idar Oberstein: October 9th-13th and October 16th-20th

- Israel: October 24th - November 1st (Note datechange)

• On-line bill pay and statement review is nowavailable via the RJO website. Now it is even easierto pay your bills with our on-line program.

See you in Minneapolis!

In the Know with RJO by RJO CEO Mary Peterson

Did ’ya know?

RJO Board NewsThe RJO Board of Directors and the Merchandise Review Committee are excited to announce theappointment of the following RJO members to the 2015 Merchandise Review Committee:

Kate MarksMarks of Design

Shelton, CT

Joanna HudzikHaywoods Westlake, LLC

Hardy, VA

They will begin their introduction to the Merchandise Review process at the JCK Las Vegas Show this June, with theirfull term starting January 1, 2015.

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 from thispast March—and responses to it—that can be found in the RJO—Open to RJOJewelers Only area, under the heading “Jeweler Salary ... ?”

Post: We have three jewelers, but I am REALLY REALLY curious if anyonewould share how they pay in-house jewelers, specifically salary, hourly,hourly plus bonus, what rate, etc? Everyone wants more; how do youfigure out what’s “worth it?”

Response One: If your jewelers are coming to you asking for more, I’dlisten to them and pay enough to satisfy them. If your hesitation isbecause your repair department is not a profit center, then that needs tochange. Heck, we cannot find a good bench jeweler in Amarillo. Michaeldoes all of our bench work, and it slows us down to a two-to-three-weekturnaround on basic repairs. Seriously, the place to find out what acraftsman expects to be paid would be on the MJSA forum, or you can e-mail David Geller at jewelerprofit.com to discuss.

Response Two: My son, who is 24, was working part-time for us for abouttwo years. In September he took a position with a midwestern jewelrychain that has about 55 stores. They gave him two months of training andmoved him to Bismarck, where he is their only bench jeweler. They arepaying him about $14 per hour—plus a small commission on sales andrepairs—which comes to about $31k annually. I hope that helps some.

Response Three: Our jeweler has been with us for about 16 years as anindependent contractor, so he gets no salary, no benefits, etc. We pay himby the piece, so it’s easy to quote a price to our clients and obtain anexcellent mark. He’s fast and efficient. Most years he grosses $45-$60K peryear. If our shop is slow, he makes less; if we’re busy … he makes more. Itworks for us.

Response Four: David Geller’s book gives information on how to pay thejeweler on a commission basis. I think he bases it on a full-time jewelermaking $40-60K. He could tell you more about how that works. Steven isour jeweler (and owner) so you can’t really base a salary on that. Hope thathelps. Using Geller really allows you to make enough to pay well, and theirpay is tied to work product.

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

S E R V I C E SCentralized BillingPatronage DividendRJO Website (rjomembers.com)Buying Shows (Fall/Spring)

RJO Chat ChannelIn the Loupe – RJO’s newsletter

Free Print and Radio AdLibrary (on the RJO website)

Educational Seminars (at the Buying Shows)

Member-to-MemberIncentive Program(Recruitment Program)

Organized Buying Trips to Antwerp and Idar-Oberstein, and IsraelRJO DirectoryTravel Vouchers at Shows(offered at varying times)

Free Hotel Room Incentive(at the Buying Shows)

RJO Informational E-mailBlasts Purchase Vouchers(at the Buying Shows)

RJO Membership CertificateEducation on the GoPodcasts and WebinarsPrivate Label Credit CardServiceJewelConnect

Board of Directors ElectionThe RJO Board of Directors is comprised of nine RJO members, elected by the general membership, to aidmanagement in decision-making, policy review, development and implementation, strategic planning andmaintaining the overall viability of the organization. At this time, two seats are up for re-election on the RJOBoard of Directors. We are seeking applications from interested members. The elected members will begintheir board responsibilities on January 1, 2015.

The Board of Directors requires a great deal of involvement and dedication. If interested, please carefullyreview the Roles & Responsibilities of the Board.

Applications will not be accepted after Friday, May 23rd at noon. Click here for application.

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

THE APRIL ISSUE of JCK Magazinefeatures an article entitled, “Circlesof Power: JCK’s 2014 List of 15Trailblazing Trade Groups.” RJO isselected as one of 15organizations and industryassociations that “keep the jewelrybusiness spinning.”

RJO was the only buying grouprecognized on this list, amongsome pretty big names. You mayread the article here.

The article notes many of RJO’sstrengths, including our:• quality vendors,• discounting power,• popular buying shows,• online billing system, and• our annual international buying

trips.

“I couldn’t agree more with JCK,”says RJO CEO Mary Peterson, “and Iapplaud all of our members forhelping RJO keep the jewelry

industry spinning. To paraphrasethe article, ‘it would be hard toimagine our industry without RJO.‘ “

JCK Magazine Names RJO One of its TrailblazingTrade Groups

JEWELCONNECT, THE RJO-EXCLUSIVE digitalmarketing system, launched “Retailer Marketplace”this past January at the Savannah Buying Show. TheMarketplace is coming out of beta-testing and intomainstream JewelConnect apps this summer, atwhich time it will be available to all of RJO’sJewelConnect members.

“We saw lots of great interest in Savannah,” saysAndrew Boundy, JewelConnect’s developer.“Marketplace allows retailers to advertise their ownstock to other RJO retail stores. Some stores want tooffer their slower-moving items to other stores atincentivized prices, and this is a simple and free wayto do that.”

The JewelConnect system has always allowed freeviewing of items, but the full release offers the abilityto list pieces for free as well. Thomas Roethling,JewelConnect’s data manager, adds, “We wanted tosay thanks to RJO by making the Marketplaceavailable to all 600 of our subscribed RJO users, andwe think that this feature will have great value.”

“It’s sort of like the online marketplace eBay, but it’sjust for RJO retail stores,” says Boundy. “The itemsare added and displayed, and if you see somethingyou like, you contact the store that added it directly,to make a deal. It’s great for moving stock, and youcan use the sale to fund the purchase of new stockthat will move faster.”

Look for items on the system now by clicking here.

Sign-up to be one of the first free activated accounts.Remember to check out all the JewelConnect tools,including marketing, mobile sites, e-commerce,diamond e-retailing, marketplace, blogging and muchmore at www.JewelConnect.com

JewelConnect Opens Up Bargain MarketplaceAvailable to All RJO Members

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

Vendor Profile

Gesswein Marks 100 Years of Serving theWorld’s Finest CraftsmenTHE YEAR 1914 WILL LONG BE REMEMBERED forBabe Ruth’s first professional at-bat and the firstappearance of jungle-dweller Tarzan. It was also theyear that jewelry industry vendor Gesswein openedits doors. As the company celebrates its 100thanniversary this year, it’seasy to see how proud theyare of their longevity. In factit’s in the company’s tagline:“The Right Tools Since 1914.”

Gesswein is truly anAmerican success story. Founder Paul H. Gessweincame to America with his parents when he was in hisearly teens, taking a job working in a hardware store.He soon found that he had many requests fromnearby craftsmen for high-quality small-size precisiontools. Recognizing a unique opportunity, he decidedto start his own business, beginning by importingEuropean tools and initially concentrating on localcustomers. The original focus of Paul Gesswein’senterprise was to supply tools and equipment to thethriving jewelry and silversmith industries in NewYork and Boston. After more people heard about hisprecision tools, requests from other parts of thecountry came in.

Paul decided to produce a catalog of tools andsupplies that he could mail to those who couldn’t visitthe store. By the 1930s, the Paul H. GessweinCompany, Inc. occupied one room in a building inlower Manhattan. Paul made sales calls, while oneemployee manned the phones. The company grew,expanding as quickly as space became available intheir building. By 1950, the Paul H. GessweinCompany carried more than 1,000 items.

During the 1950s, plastic injection molding cameabout and grew very quickly. It became apparent thatdifferent types of finishing stones were needed, andover the course of the next decade, Gesswein wasable to provide solutions that increased finisherproductivity and overall mold finish quality.

In 1963, the company finally outgrew its availablespace. It moved uptown a couple of miles to lowerPark Avenue, beginning with 5,000 square feet of

space. As the decade progressed, so did thecompany. Within three years, another generation ofGesswein family members had entered the business,renting another floor and part of a third, to storeequipment. Even with the extra space, at least two

employees weresharing the samedesk andalternating theirworkdays in theoffice. Anothermove was clearly

on the horizon, and the decision was made to moveoperations to Bridgeport, Connecticut.

Additionally Gesswein has branch offices in Toronto,Canada; Bangkok, Thailand; and Mumbai, India.The Paul H. Gesswein Company, Inc. has come a longway from that one-room walk-in store on MaidenLane. Today, it offers more than 16,000 items to alarge community of jewelry manufacturers and moldand die polishers around the globe. It is run by about60 employees. Even with this growth, however, thecompany is still loyal to the vision Paul had a centuryago, constantly adding new and innovative productsto help the metal and wood-working industries.

“Our guiding policy is simple,” says Scott A. Petrillo,Vice President Sales,” and it has been the same sinceour inception in 1914: Provide quality tools andsupplies to manufacturers and retailers worldwide.Our customers are the ones responsible for oursuccess, and thus we are here to serve themcompletely through product and know-how.”

As they mark their 100th year, the celebration seemsto be focused on many of the same notions that havelet them thrive for so long.

“We had a celebration already at our Bangkok,Thailand office, and more are expected throughoutthe year,” says Petrillo. “Our focus this year is theintegration of our new computer software to betterserve our customers.”

Gesswein is located at 201 Hancock Avenue, Bridgeport, CT06605. Phone: 203-366-5400. Website: www.gesswein.com

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

RJO heads to Minneapolis this August, wherethe Fall Buying Show will be held the first week of

that month. The larger half of the Twins Cities (alongwith neighboring St. Paul), Minneapolis is the largest

city in Minnesota, and is the 47th largest in the UnitedStates. Yet this town of nearly 400,000 is home to 15 Fortune 500 companies—more than any other city in the United States—including 3M, Best Buy, GeneralMills, and Target.

Minneapolis has a vibrant downtown, featuring a walking plaza, fountains, and publicgreen spaces, all served by a transportation network that features a light rail system.The town’s major league baseball team—the Minnesota Twins—plays their gamesdowntown in the recently opened Target Field Stadium.

Minneapolis is the hometown for a number of famous faces, including: Vince Vaughn, Richard DeanAnderson (“MacGyver”), the Andrews Sisters, and Prince (whom, for a decade during the 90s,changed his “name” to this icon. He then became known as “The artist formerly known as Prince”).

We’ve put together some preliminary information about the Buying Show and its host city. We hope ithelps you start your planning for August.

2014 Fall Buying Show •

Get to know The City of LakesMinneapolis is the birthplace of the Juicy Lucy, a cheeseburger thathas the cheese inside the meat patty in addition to on top. A piece ofcheese is surrounded by raw meat and cooked until it melts, resultingin a molten core of cheese within the patty.

Minneapolis has more golfers per capita than any other city in the US.

A person may not cross state lines with a duck atop his head.

Minneapolis holds the Guinness World Record for Largest Gathering of Zombies(8,027), thanks to a pub crawl that was hosted in October 2013.

All men driving motorcycles must wear shirts.

”The Song of Hiawatha,” a poem by famed poet Henry Wadsworth Longfellow, waswritten about Minnehaha Falls in Minneapolis, a place that Longfellow never visited.

A statue of Mary Tyler Moore—downtown on the Nicollet Mall—pays homage to thelegendary 1970s CBS television sit-com, The Mary Tyler Moore Show. The statue marksthe site where producers filmed the series’ iconic opening sequence, in whichcharacter Mary Richards throws her hat up high in the air.

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

Airlines Serving Minneapolis

Minneapolis, MN • August 16-18Our Host Hotel: Hyatt Regency Minneapolis

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The Hyatt Regency is in the heart of beautiful downtownMinneapolis, and it recently completed a $25 milliontransformation that is being met with great reviews.Travel site TripAdvisor lists the Hyatt Regency as one ofMinneapolis’ best hotels, and recent travelers’ reviewsare positively glowing. For example:

If you want a perfect hotel experience from beginning toend of your stay, this is the place. The rooms are large,spotless, have high-class decor, and have roomy bathroomswith great lighting. To top it off, the bed is extremely comfy,and the crisp duvet cover sealed the deal for me. Of all theHyatt Regencies I've stayed at, this is probably the best.

Book your rooms early by clicking here.

The Hyatt Regency Minneapolis is located at 1300 Nicollet Mall downtown.

Loring Park NeighborhoodAdjacent to the Hyatt Regency is The Loring Park neighborhood, apedestrian paradise with easy access to bicycle trails, a short walk to the downtown and uptown areas, and excellent publictransportation.

The neighborhood is dotted with a wide range of ethnic restaurants,entertainment, retail shops, businesses, six of the city’s largest andmost historic churches, the Walker Art Center and Sculpture Garden,and within a short walking distance, the Minneapolis Art Institute,the theater district, and Orchestra Hall.

RJO will again receive a group discount for attendees purchasing their tickets from AmericanAirlines at www.aa.com. Enter Promo Code A4684AZ to receive a 5% discount on your airfare.

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

Marketing Matters

Pondering the Future of the Jewelry WorldA RECENT SERIES OF ARTICLES onjckonline speaks to the future forjewelers and potential changes onthe horizon for jewelry stores andthe industry. While some change isnecessary, I would tread carefullyinto the future when sellingjewelry.

Technology has made all of ourlives much easier, and the internetis an endless source ofentertainment and information.Software that can profilecustomers, manage inventory, andteach you more about yourindustry and running yourbusiness should be at the top ofyour list of things to investigate.

That being said, I would cautionyou to avoid a dependence on theinternet to sell your products.Please note the word

“dependence.” One of the JCKarticles speaks to an opticalcompany that has customerscome in to try on and purchasenew glasses. The hook is thatthose glasses are then shipped tothem a week later.

Comparing eyeglasses withjewelry, in my opinion, is asunconnected as comparingValentine’s Day to President’s Day.While there is a fashion aspect to anew pair of glasses, they are, forthe most part, a functional toolthat we use to help us through ourdaily lives. While jewelry also hasthe fashion aspect, what it reallyhas is an emotion and place intime.

Whether the occasion is abirthday, an anniversary, anengagement or the all-important

“baby bauble,”jewelry has therare ability tofreeze amoment in timeforever. Manytimes jewelry isa constantreminder of avery emotionalevent ormoment in ourlives.

Going to astorefront topick out a gift for my wife andthen to have it shipped a weeklater takes a lot of the emotion ofthe purchase away, and it makes itmore of a transaction. Jewelry isone of the most pure emotionalpurchases, and I would endeavorto make it more so, rather thanless. If the purchase becomestransactional, every person withaccess to the internet couldcompete with you everyday.

The future of the jewelry business,from a customer standpoint,should look like the past. Strongcustomer service, beautifulmerchandise, a great-looking store,and a competent, well-trainedsales team. I’d focus on being the“go-to” source for jewelryquestions and big-moment gifts.Be highly visible in the communityand be known as “the place” to gowhen “the purchase matters.”

From my many interactions withRJO members at Buying Showsthroughout the years, I know thatto be successful in the jewelrybusiness it takes great peopleskills, long hours, and a

commitment to excellence. But itis SO worth it. You are a true assetto your communities, and youmake a difference in many, manylives.

Look forward into the future ofyour industry, but never forgethow you got to where you are.Those skills and that passion willkeep you strong for many years.

Michael C. Woody is Presidentand Chief Idea Officer of

Capital Ideas. He has nearly 30years of experience in

television advertising andloyalty marketing.

Phone: 515-556-5373. E-mail:

MichaelC@ideas2burn.comWebsite: www.ideas2burn.com

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

RJO Sponsored Trips 2014

In October: Let Us Show You Europe or IsraelFOR MORETHAN 25YEARS, RJOandparticipatingretailers haveexperiencedon-goingsuccessbuyingdiamonds

directly from the source, beginningin Antwerp. In 2006 RJO extendedthese trips to include Idar-Oberstein, Germany, the coloredgemstone capital of the 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 and Jeff HorlacherAntwerp: October 4-9Idar-Oberstein: October 9-13

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

When you take advantage of thisoutstanding opportunity, you’llqualify for these incentives:

• First-time travelers receive $500toward travel expense

• Free 19-inch TV/DVD player, withAntwerp Advantage 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 RandyPedersen andJennifer ZachariasOctober 24th -November 1st

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.

In addition to providing amarketing DVD and posters, RJOand sponsoring vendors willprovide stores with these perks:

• $250 travel voucher with anypurchase in Israel (checks mailedfollowing the trip)

• a 2% discount on all purchasesmade in Israel

RJO, ALONG WITH sponsoring vendors Stuller andRDI, launched the first-ever Next GenerationExperience, from May 17-19, 2014, at the Hyatt Lodgein Chicago, IL. Entitled, “The Next GenerationExperience: Creating Ultimate Jewelers of the Future,”the Experience is hosting 37 stores represented by onenext-generation owner or manager of an RJO store.

“Our vision for the Experience,” says RJO CEO MaryPeterson, “is to create and engage. We created acurriculum of hands-on learning and interactivedialogue to aid the next generation of retail jewelersin preparing for the future of our industry and theirbusiness. We will engage participants to ensurecontinued learning occurs after the initial gathering.”

Topics to be covered during the two-day eventinclude personal development skills, business

development and design for the future, and thefuture of the industry. To ensure maximumparticipation, all lodging and meal expenses werecovered by RJO, RDI, and Stuller. Participants onlyneeded to pay their way to the Experience.

Look for a first-hand account of the gathering in thenext issue of In The Loupe.

The RJO Next Generation Experience Launches inChicago With Nearly 40 Stores Attending

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

JUNE 201410All payments must be received inRJO office

13Vendor Show Registrationdeadline

14Flag Day

15Father’s Day

23All invoices must be received inRJO office

JULY 20144Independence Day - RJO officeclosed

10All payments must be received inRJO office

18Retail Member Show registrationdeadline

23All invoices must be received inRJO office

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

Dave Askew JewelersDave AskewSt. Cloud, FL

referred byRob Hays, Victor Settle Jewelry,

Bloomington, IN

David Wilson Designer-Goldsmith Inc.Dave WilsonSalem, OR

Draeb Jewelers, Inc.George Draeb, Bill DraebSturgeon Bay, WI

referred by: Ed Waters, Kelly Waters, Boston, MA

Franzetti JewelersMonte and Cathy Franzetti, BobbyFranzettiAustin, TX

referred by:Greg Greffin, 24 Karat Rose, Wayzata, MN

Gemstone Creations, LLCNancy Yan-Sheldon and CraigSheldonFredericksburg, VA

Georgetown JewelersScott Chamberland, TracyMatousekWood Dale, IL

Grono & Christie JewelersMeryl ManinMilton, MA

MPC Jewelry Design, IncMichael and Maryanna CapozzoliTrinity, FL

Nummi JewelersDale Nummi, Karen Nelson, KatieNummiSuperior, WI

Philip’s Diamond ShopPhillip High Jr., Molly LurthMarion, IA

Staats JewelersBrent Staats, Ronda StaatsLiberal, KS

NEW MEMBERS

Thank you to the jewelers referring new members to our group. These jewelers will receive a $1,000 finder’s fee for their referral, payableafter a new member has been in good standing for at least six months.

JULIE M. BARRY, of Sturhahn Jewelers in Quincy, IL, died March 3. She was 30.

MARILYN EDITH ILLINGWORTH, of Illingworth Jewelers in Albia, IA, died January 9. Marilyn was 86.

BARBARA JEAN SCHNOOR, of The Gold Boutique in Chariton, IA, passed away April 22, at the age of 65.

Our thoughts go out to each and every family.

MILESTONES