The JA Report: News, Tips & Trends from Jewelers of America

Practice Good Citizenship Year-Round

Being an active and positive force in your community shouldn’t just happen during the holidays. Jewelers of America’s “Cracking the Code: A Guide to Jewelers of America’s Code of Professional Practices” encourages you to connect with and give back all 365 days.

Each month, we're excerpting sections of the Guide, offering up insightful strategies to help improve your business. This month, we share tips on getting more involved with your community.

JA's Communications Toolkit

As jewelers, you'll experience more than a third of your annual sales in the next two months. With the extra foot-traffic could come extra inquiries into your store practices and how your business responds to current ethical issues that affect the jewelry industry, like diamonds from Zimbabwe, gemstone treatment disclosure or responsible gold mining.

Ensure your sales staff is ready for any questions they may receive this holiday season by having them review “Cracking the Code," the comprehensive online guide to Jewelers of America’s Code of Professional Practices. The online guide is designed to boost your bottom-line by giving you strategies to reinforce your customer's confidence in the products you sell.

Each month, we're excerpting sections of "Cracking the Code" to highlight the insightful and creative strategies included in it. This month, we spotlight the section in "Consumer Communications" that reviews JA's issue guidance -- an exclusive benefit to JA members.

Kimberley Process Plenary Update for U.S. Jewelers

The Kimberley Process Plenary -- held October 31 to November 3, 2011, in Kinshasa, Democratic Republic of the Congo -- concluded with the Kimberley Process Certification Scheme (KPCS) still intact.

Jewelers of America (JA) is encouraged that steps were taken to preserve the monitoring system, but continues to have specific concerns related to goods from the Marange region of Zimbabwe, which now have a green light from the KP. The association remains very concerned about alleged human rights abuses in the region, as well the impact of legal issues surrounding these diamonds.

In fact, the decision to allow exports from Marange presents a serious challenge for U.S. businesses. That's because goods from the region are mined by companies with strong connections to Zimbabwean entities and individuals who are sanctioned by the U.S. Department of Treasury's Office of Foreign Assets Control (OFAC).

While these diamonds can now get KP Certificates, U.S. companies are prohibited from purchasing them, either directly or indirectly.

Cracking the Code: Strategize Store Communications

Talking to your customers about the beauty of a piece of jewelry comes easy, but are you able to communicate your professional practices that support the jewelry you sell? This month's sneak peek of Jewelers of America's new online guide, “Cracking the Code: A Guide to Jewelers of America’s Code of Professional Practices,” previews a chapter on strategizing consumer communications. 

In Section 2, "Communicating the Code," JA members get tips on how to communicate their strong commitment to ethical, social and environmental practices. The excerpt below details strategies to identify your target audience and the issues that matter most to them.

The guide is part of the JA website’s new eLearning Center at www.jewelers.org/elearning/.

Be Prepared to Promote your Best Practices this Holiday Season

‘Tis the season for holiday cheer, but with the gift-giving season comes increased scrutiny of the jewelry industry from the media and your customers. In anticipation, Jewelers of America reminds you to prepare for questions you may receive from staff, media and non-governmental organizations (NGOs) using our comprehensive member guidance on issues that can affect consumer confidence.

Jewelers of America is monitoring the following issues this holiday season and will keep members informed on any important developments:

Cracking the Code: Practice Full Product Disclosure

In August, Jewelers of America launched “Cracking the Code: A Guide to Jewelers of America’s Code of Professional Practices.” The guide is designed to help Jewelers of America members protect their businesses and achieve high standards for ethical, social and environmental practices.

To highlight the insightful and creative strategies included in "Cracking the Code," we’ll be offering regular "sneak peeks" at its content, which is divided into three sections: 

• "Living the Code" with information on specific JA practices
• "Communicating the Code" with tips on communicating responsible business practices
• "Beyond the Code" -- an overview of the Responsible Jewellery Council (RJC)

This month, we focus on the important and timely topic of proper product disclosure. 

The Haake Report: Review of Q4 2011 Legislative Outlook

It has been a busy year for Congress and the next year promises to be even more critical -- for legislators and businesses -- as the 2012 elections approach. In this high-stakes environment, Jewelers of America is tracking issues that could impact jewelry businesses while advocating on behalf of jewelry industry interests.

Our legislative counsel, Haake & Associates, offers the following insights:
Recent, hard-fought legislative victories -- like the repeal of the IRS 1099 regulation, the introduction of the Main Street Fairness Act in Congress and the continued protection of the last in, first out (LIFO) accounting method -- are temporary gains.

Support Main Street Fairness!

Congress recently introduced the Main Street Fairness Act, which would eliminate the unfair tax advantage Internet merchants and other remote sellers now enjoy over traditional retailers.

Getting this important legislation introduced was the first step, but the Senate (S. 1452) and House (H.R. 2701) bills need bipartisan support. Jewelers of America urges our members and other jewelry businesses to reach out to their Senate and House representatives at the local level. You can do this by attending a meeting or event where their representative will be looking to hear from constituents while on summer recess.

Encourage your Representatives to support this legislation:

Analyze Your Business Ethics

Jewelers of America recently launched a comprehensive online guide to its Code of Professional Practices, titled “Cracking the Code: A Guide to Jewelers of America’s Code of Professional Practices.” It shows JA Members how to use JA’s Code of Professional Practices to build their business and increase profitability, customer satisfaction and customer retention. The guide is part of the JA’s new eLearning Center at www.jewelers.org/elearning/.

To highlight the insightful and creative strategies included in "Cracking the Code," we’ll be offering regular "sneak peeks" at its content, which is divided into three sections:

JA Holds Firm on Zimbabwe

The Kimberley Process Certification Scheme (KPCS) continues to debate the status of exports from the Marange region of Zimbabwe. Shipments of these diamonds were initially suspended after the 2009 KP Plenary. Jewelers of America believes this suspension should remain in place and must be adhered to by KP participants until further notice.

JAPAC Talks Retail Jewelry Issues with Capitol Hill Elite

Jewelers of America (JA) leaders and board members of JAPAC, the Jewelers of America Political Action Committee, met with legislators in Washington, D.C. on June 22 to ask them to support issues that impact jewelry businesses. We've included photos from the successful trip below.

JAPAC is the only PAC that supports the fine retail jewelry industry in on the federal level. Jewelers of America members can contribute to and learn more about JAPAC by visiting  www.jewelers.org/retail/r_JAPAC/.

JA CEO Contributes to Diamond Dialogue at JCK Show

Speaking during a panel discussion about the Kimberley Process, at the JCK Show on June 2nd, Jewelers of America President & CEO Matthew A. Runci said retailers can no longer sit back and watch while decisions that impact consumer confidence are made.

"The power of influencing these decisions rests in the hands of everyone in this room and in this building,” Runci told attendees. The session entitled, “Diamond Dialogue: The Challenges of a Robust Kimberley Process,” was hosted by the World Diamond Council (WDC).

Live From JCK Show: Standards of Excellence -- Quality Control

In his JCK Show seminar, “Standards of Excellence: A Guide to Merchandise Quality for the Independent Jeweler,” Jewelers of America COO Robert B. Headley outlined how to establish a merchandise quality control procedure on a scale suitable for the independent jeweler. As the former Vice President of Quality Assurance at Tiffany & Co., Headley gave insightful strategies that will help any jewelry retailer improve the quality of their merchandise and overall customer satisfaction.
For those who missed his seminar, some of his top advice follows after the break.

 

Jewelers of America Supports Delay on Mercury Ban

Jewelers of America (JA) has been working with the American Watch Association (AWA) to push officials in Maine, Connecticut and Rhode Island to postpone bans on mercury in button-cell batteries. All three states had initially scheduled their respective bans to go into effect on July 1, 2011. The associations are asking for a year postponement, to July 1, 2012.

So far, the campaign has been a success. JA recently got good news when we learned Maine and Connecticut have postponed their bans. Maine moved the state ban to the end of this year, while Connecticut’s ban has been postponed until July 1, 2012.

JA Survey Helps Jewelry Retailers Improve Cost of Doing Business

With Jewelers of America's annual Cost of Doing Business Survey currently underway, we've been posting quick tips from previous Cost of Doing Business Reports on our Facebook and Twitter feeds to show the insightful retail jewelry benchmarking data it reveals. Follow us so you don't miss out -- we've included some highlights after the break!

When you participate in the survey, you receive a copy of the Jewelers of America Cost of Doing Business Report ($150 value) -- which has been an invaluable industry benchmarking resource for 20+ years. 

Click here to participate in the Survey today!

It's quick and easy -- Most of the key measures of financial performance in our 2011 Cost of Doing Business Survey are based on the two primary financial statements: the Profit-and-Loss statement and the balance sheet. Take the survey today!

Take Legislative Action in Las Vegas

Jewelers of America is offering an opportunity at the JCK Show in Las Vegas for jewelry retailers and suppliers to speak out on issues that could impact their businesses. From June 3-6, 2011, visitors to the JCK Show can stop by JA’s Booth (#L110) at the Mandalay Bay Resort to sign important legislative petitions, watch demos of JA’s online legislative outreach tools and learn about JA’s legislative advocacy.

JA to Take Part in Kimberley Process Panel at JCK Show

Media interest and consumer awareness have kept conflict diamonds at the forefront of issues that impact the jewelry industry. The Kimberley Process (KP) remains a central component in dealing with this issue but has faced its own set of challenges.

With that in mind, Jewelers of America President and CEO Matthew A. Runci will take part in a special JCK Show panel session, “Diamond Dialogue: The Challenges of a Robust Kimberley Process,” Thursday, June 2 at 1:30 p.m at Mandalay Bay Resort, Las Vegas.

SEC Delays Rules for Conflict Minerals, What Jewelry Firms Should Know

The U.S. Securities and Exchange Commission (SEC) has delayed publication of its final rules for conflict minerals provisions within the Dodd-Frank Wall Street Reform and Consumer Protection Act.  The rules -- originally scheduled to be published on April 15 -- are now expected to be published between August and December. Jewelers of America worked with other major jewelry associations to submit comments to the SEC as they developed the rules. Jewelers of America will continue to watch this issue closely and update members as needed.

Increase Profitability Through Benchmarking

Comparing your store’s financial performance to industry averages and/or standards can have a profound impact on your business. Jewelers of America’s Cost of Doing Business Report, published each summer, helps you find out where your store measures up across multiple operating-performance areas. That knowledge is a powerful tool, since even small adjustments can lead to better profits.

Jewelers of America is currently conducting its 2011 Cost of Doing Business survey, make sure you participate to benefit from the benchmarking analysis it reveals (Take the survey now! or learn about its benefits).

When you take the survey online, you’ll get an immediate calculation of your financial data and operating ratios. David Peters, Jewelers of America’s resident education and management expert, says that once you have this information you can increase profitability by:

JA & DMIA Statement on Diamonds from Zimbabwe

Jewelers of America (JA) and the Diamond Manufacturers & Importers Association of America (DMIA) released the following statement this week:

JA and DMIA have learned of a recent announcement from Mathieu Yamba, the Chair of the Kimberley Process (KP), who stated that stocks and production from the Mbada and Canadile mining concessions in Marange, Zimbabwe can be exported with “immediate effect.” As you know, there have been alleged human rights abuses, as well as legal issues surrounding diamond production from this region.

FTC Unveils New Platinum Guidelines

In December, the Federal Trade Commission (FTC) announced revisions to its Guides for the Jewelry, Precious Metals, and Pewter Industries in order to clarify how to properly disclose the content of jewelry made from new platinum/metal alloys. These are products made with a combination of non-precious “base” metals and contain between 50 and 85 percent platinum.

The new guidelines were included in a Federal Register notice published in late December. Specifically, the new Platinum Section states that marketers of platinum/base metal alloys should:

TIP: Showcase Your Values This Holiday

Getting your business prepared for the holiday season is about more than carrying the right stock and successfully marketing it. In addition to being the season for selling, the holidays are also the time for greater scrutiny. That spotlight focuses on the best and worst examples of retail behavior, so you need to be sure that your business is strongly in the former camp. With that in mind, you and your staff should take the following steps to prepare for the season:

More Cadmium Regulation

Federal and state officials continue to take a close look at how to effectively limit the levels of cadmium in children’s jewelry.

The Consumer Product Safety Commission (CPSC), said this week that it will look to experts -- including those in the jewelry industry -- to help set safety standards. Meanwhile, California recently became the fourth state to pass legislation that limits the levels of cadmium in children’s jewelry and other products.

Officials first began targeting cadmium at the beginning of the year, when an Associated Press (AP) investigation identified dangerous levels of cadmium in some Chinese-made children's costume jewelry. Retail jewelers should be aware of action on this issue on both the state and federal levels, and Jewelers of America has prepared the following update.

What’s Your Cost of Doing Business? Series

Jewelers of America released its 2010 Jewelers of America Cost of Doing Business Report, which analyzes jewelry retailers’ financial data from 2009. The Report, which has been published annually for two decades, represents the most complete and historical comparative financial information available to specialty jewelers in the U.S.

Do you know your cost of doing business? Or how your profitability, or lack thereof, compares to your jewelry competitor down the street? Jewelers of America developed the Cost of Doing Business Report to help independent jewelers benchmark their performance based on key financial indicators and effect positive change in their business profits. In JA’s “What’s Your Cost of Doing Business?” Series, we’ll reveal just how vital the Report is to your business management, and how it assists you in improving profitability.

You can use data tables in the 103-page Report to take control of your business management and improve profitability in the following ways:

JA & Industry Associations Inform Conflict Minerals Regulation

In July, Congress passed conflict minerals provisions as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Jewelers of America strongly believes in the goals of the provisions and we fully condemn the use of any minerals to fund conflict in the Democratic Republic of the Congo (DRC) and/or surrounding countries.

Following passage of the law, the U.S. Securities and Exchange Commission (SEC) now has the task of establishing the rules for compliance with the new law. Along with other major jewelry industry associations, Jewelers of America is working with the SEC and non-governmental organizations (NGOs)  to ensure that the rules to be promulgated and enforced by the new law achieve its goals, without hurting jewelry businesses and the very communities in DRC and neighboring countries that it is meant to benefit and protect.

JA Keeping Eye on Zimbabwe Diamond Situation

Jewelers of America (JA) members have access to expert guidance on issues that affect consumer confidence in jewelry merchandise. One key issue we’ve been following—diamonds from Zimbabwe—has recently gotten increased media attention. To ensure Jewelers of America members are informed and prepared, we continue to keep a close watch on the situation in the Marange region of the country, the source of reported human rights violations.

JA On The Air: Discussing Diamonds and Consumer Confidence

Jewelers of America Chief Operating Officer Robert Headley represented the association last week on "Midmorning," a Minnesota Public Radio program that was covering conflict diamonds and consumer confidence surrounding the international diamond supply chain. The program, hosted by Kerri Miller, also featured Tom Zoellner, author of The Heartless Stone and Corinna Gilfillan of the non-governmental organization (NGO) Global Witness. Headley entered the conversation in the second half hour, representing the views of Jewelers of America retailers in the U.S., who are the closest connection to consumers. The discussion covered the Charles Taylor War Crimes Tribunal, recent decisions regarding diamonds from Zimbabwe's Marange region and what the industry is doing to ensure consumers are buying diamonds that are not from conflict.

Click here for the link to the audio program at JA's In The Media Page.

Understand What Impacts Your Insurance Premiums

When it comes to insurance, you need to understand what you’re paying for and how that can protect your business. Appropriate coverage can mean the difference between recovery after a loss and financial ruin. Today, Jewelers Mutual Insurance Company looks at insurance premiums in the second of its Insurance 101 tips, a new series to help you make more informed insurance buying decisions.

According to JM, there are three key areas you should look at in understanding premiums:

Protect Yourself When Shipping

Whether you’re shipping something worth $500 or $50,000, be sure to protect yourself against theft. You don’t want to realize the importance of theft prevention after it’s too late.

Matthew Focht, president of Tru®, a consulting company that negotiates credit card processing rates for jewelers, recommends following these basic steps to protect shipments:

Check Your Business Temperature

Attitudes, including those of consumers, have definitely improved since the start of 2010. But while things appear to be improving, but there are also indicators (like the jobs and housing markets) that we’re not quite out of the woods yet. That’s why it’s important to check the temperature of your business, especially as you look ahead to the second half of the year and the critical holiday season.

Some things to keep in mind as you look at your business today: