Pawn Leaders

Tune in to find out about my week at the Dixie Convention and the things I learned.

• To continue the discussion join the Pawn Leaders Facebook Group

Jamie Smith left the banking industry and started a payday advance and check cashing store with his wife, Amber. The business grew in 2 locations. They also started an Ebay business selling coins and bullion, which eventually grew into one of Ebay's most successful retailers in that category, achieving Titanium top-rated seller status. In April 2013, they opened their first pawn store, Allied Pawn, in Dubuque Iowa and business has been great. Over the last 10 years, Jamie has learned from some of the top pawnbrokers, jewelers, coin dealers and marketers in the world. He has used his experience to grow his business and developed his unique approach to grow Allied Pawn to one of the most successful pawn stores in the west.

[02:01] A shift in the business territory caused Jamie and his wife to look at other options and he decided to go into the pawn business based on his experience with coins, gold and lending

[03:02] What are the laws governing pawn in Iowa? "We have no law. Operating under a city ordinance, there's a 5-day hold on buys (precious metals), we charge 25% and Iowa has no mandated pawn hold period, but we hold our loans for 30 days."

[04:39] What are the 5 tips for growing your business successfully?

1. Seek out a business mentor
2. Say YES more often (have a high-risk tolerance)
3. Seek out some of your affluent customers
4. Utilize strong marketing (SEO, Search, Social Media)
5. Be willing to sell your merchandise fast

[07:00] Mentors challenge you to think differently about the business

[08:16] How do you market to the affluent to get the big loans? Use advertising towards them, like print, join clubs and organizations and network with the right people

[09:22] Read at least one book from the No B.S series of books by Dan Kennedy. No BS Marketing to the Affluent is especially great.

[10:25] Even when you think spending a ton of money on SEO will make your business successful, there are times when it gives you traffic but it does not convert to actual sales

[12:20] There is a coin dealership that Jamie runs around the back, while Amber handles day-to-day activities in the storefront

[13:00] Why is it so important to be involved politically? "Like my good friend and mentor, Greg Angstrom will tell you, 'Being involved in politics is insurance'"

[14:04] Joining the NPA and a state association is essential

[14:49] Realizing that to get to be a successful entrepreneur, there are certain improvements that you would need in your life

[15:32] Two books that you would recommend that made an impact in your store and business:

• For What It's Worth: Business Wisdom from a Pawnbroker – by Les Gold
• Pawnonomics: A Tale of The Historical, Cultural, and Economic Significance of the Pawnbroking Industry – Stephen Krupnik

[17:47] What is the biggest mistake you've made in your five years of the pawn business? Practicing "buy low, sell high"

[18:24] What do you do to create the culture that you have in your business? The business atmosphere is relaxed and the team gets bonuses every now and then

[20:04] You have to be very careful of your surroundings regarding threats to the pawn business. Joining the NPA helps you with the changes happening around you

[21:30] There are many ways you can minimize risks in your pawn business

[22:37] Closing advice

"Say yes more often and see the impact it has on your business"

Links Mentioned on Today's Five Minute Friday:

• Dixie Convention Center
• To continue the discussion join the Pawn Leaders Facebook Group

Dr. Wayne Babovich practiced law for almost 40 years before retiring. He now teaches and lectures on a regular basis and has lectured in Europe, Canada, and Australia and throughout the United States. Wayne holds a B.A. degree from Louisiana State University in Baton Rouge, an MS degree and a Ph.D. in Urban Planning from the University of New Orleans and a Juris Doctor degree from the University of Houston. He has published and lectured in the area of pawnbroking for over 30 years, at various pawn conventions. He drafted the original legislation which formed the basis for the 1993 Louisiana Pawn Shop Act adopted by the Louisiana legislature.

[04:58] Wayne shares an experience he had with a sheriff at a meet and greets hosted by the Louisiana Pawnbrokers Association

[06:21] As a pawnbroker, you have to balance between being stern and being civil

[06:47] Wayne talks about collating a book regarding the pawn business after realizing that pawnbrokers were unaware of the laws surrounding the business

[07:39] In 1993, after the Louisiana Pawn Shop Act was passed, Wayne put together the federal laws governing pawn shops

[09:49] Not knowing the laws is no longer an excuse

[10:55] Bankruptcy attorneys do not have a concept of the rights of pawnshops

[11:10] "Pledged items or pawned items are immune from bankruptcy."

[11:37] In the book, there is an entire chapter on how to fill out a form

[12:39] Wayne gives the history of notices

[14:32] "You put that stack of notices at your window, and you make sure everybody gets one…Do not ask them to sign it."

[15:29] Soldiers and Sailors Relief Act is another law that many pawnbrokers are still unaware of

[16:23] There have been a couple of cases with Rent-to-Own and Payday Loans

[19:15] There are many grey areas to know for certain which laws are in place

[20:04] Wayne suggests the following to help pawnbrokers stay away from any problems with the law:

• join the NPA to get support from other members
• join a local pawn association in your community
• act in good faith
• keep a record of training and procedures

[22:01] "When ATF sees you really doing it right, you're halfway home."

[24:43] "I think you're not going to see, under the Trump administration, the ATF going overboard."

[27:05] Use your common sense when making transactions, especially with guns

[33:29] The 3 biggest mistakes pawnbrokers are making as it relates to the law:

• Not carefully develop a relationship with their community
• Not keeping a paper trail
• Not joining their local association or the NPA

[35:14] Visit the Law of Pawn website and buy a copy of the book. Also, feel free to call him at 504-283-9353

Today I give you the harsh truth. Stop complaining and take accountability. I hear pawn brokers complaining all the time without taking responsibility for their problems. Listen in on this episode as I break down how you get out of the cycle of complaining and start finding solutions.

From a very young age, Lauren Kaminsky Goldman, also known as the GoldGirl, has been involved in multiple facets of the jewelry world. Her career has covered businesses ranging from blogger to curator to, most uniquely, pawnbroker.Lauren's love for treasure hunting began at her grandfather's pawn shops, where she would sift through trays of jewelry to find unique pieces and pretend to negotiate the best deals with the staff.Now, as a third-generation pawnbroker, Lauren has elevated to Chief Operating Officer and President of EZ Pawn Corp., overseeing 15 stores, and working alongside her father/CEO, David, and brother, Jason. She has worked hard to grow the business as well as to educate the public about pawnbroking in hopes of altering negative stereotypes from past generations.Outside of her day jobs, Lauren has spent years being active on the Board of Directors for the National Pawn Association. Lauren looks forward to expanding her brand to other corners of the jewelry world and to be a well-respected voice within the fine jewelry community for many years.

[02:12] For a New York pawnshop to legally operate, there is a maximum interest rate of 4% per month, buys are held for 15 days after purchase and loans are held for 4 months with a 30 days grace period.

[03:57] When Lauren studied business and entrepreneurship at Boston School of Management she decided to assist her father with his pawnshop for the summer.

[09:01] The name GoldGirl originated when Lauren presented a kiosk business for her thesis in college, and the designer for the kiosk could not remember her name, so called her GoldGirl.

[10:24] Beauty & Essex is a pawn inspired retail shop and restaurant with a vintage collection of jewelry and musical instruments. The started in Lower Manhattan and has expanded to LA and Las Vegas inside the Cosmopolitan Hotel.

[13:56] What has using your personal brand on social media done for EZ Pawn Corp? Social media has allowed the business' name to spread quickly. Persons are able to see a different side of the business that they can relate to right away.

[15:05] In an industry dominated by men, how does it feel being a senior female in the business? The fact that it is a family business, I never felt out of place. However, having the respect and support of my father helped to motivate me being young and a female in the business.

[18:15] In 2010, EZ Pawn had 5 stores and have grown that number to 15 in 8 years

[18:55] The most difficult thing about growing your business is finding the right staff to holding the business together

[19:10] "When you have a great framework, it can easily get knocked down by having the wrong people represent you."

[19:34] 3 things that EZ Pawn does that makes them successful are:

• Customer service
• The most high tech in pawn
• Availability

[20:05] A demographic survey was done by EZ Pawn and it showed where 60% of their customers were between the age 18-31 years old. This therefore meant that the business had to find a way to connect with their audience

[20:45] Working with TAO Group taught Lauren the concept of using hospitality to assist in the success of the pawn store

[21:32] Customers like knowing that they:

- can get through to a representative of the pawnshop

- have the convenience of using an app and getting a response via email right away

- are buying from a store that has brand recognition

[22:45] You can utilize zipwho.com to get the demographics of persons living in different areas.

[23:44] Lauren speaks about the importance of being a part of the community leading the change

[26:51] Check out Lauren's website at bygoldgirl.com and connect with her using the handle bygoldgirl on Instagram and all social media sites

On today's episode, I share some insights from a recent mastermind discussion. A lot of times as leaders we get comfortable with being uncomfortable. Listen in on this episode as I share some strategies you can implement immediately to stop leaving money on the table.

Matt Prados built the Review Wave platform to assist hundreds of local businesses to achieve online success. He has been working in digital marketing for the last 10 years and enjoys spending time with his family and being physically active. Matt zeroes in on what he feels is the future of online marketing in this episode of Pawn Leaders.

[02:22] The concept of Review Wave came about because Matt no longer wanted to be an employee, but an employer

[03:10] Matt wanted to help people be successful through digital marketing, without all the "fluff"

[04:02] "It doesn't matter what else you have. You could have no website, but if you have a killer Google local listing, with 200 reviews, you get leads from the internet."

[04:23] "If you have reviews, you will be more successful online and if you do it right, it's money in the bank"

[07:09] Companies should stay away from "creating" reviews for their business, as Google is able to recognize that the reviewer is not authentic

[08:50] Do you focus on one social media platform or multiple platforms? The type of platform(s) used is dependent on factors like your geographic location and your target audience. You can therefore utilize one or all platforms.

[11:30] What is the percentage response rate via text messages? On average, for every 100 feedback requests sent, there's a 25% response rate to an initial feedback and then 5 to 6 actual reviews.

[13:49] Review Wave can be used for every type of industry

[15:39] More reviews gives you the advantage of ranking higher in Google search and increases your customer base

[17:34] "Everybody likes to win, but you don't learn anything from winning; you learn from your losses."

[18:49] Employers are able to track their employees' feedback on the Review Wave dashboard

[20:52] Losing your focus can hamper the success of your business

[22:19] How important has coaching been in your journey as an entrepreneur? "You can't succeed at the top levels without coaching."

[23:26] Visit the Review Wave website (reviewwave.com) and enter the code PAWN to get a special offer

00:00 Welcome back to another five minute Friday and I want to talk to you guys about what I think is essential when creating an incredible culture. So there's three steps, three important steps to create a great culture in your partner organization, and the first one is structure. You need to have structure, you need to have rules and regulations. You have to have your hr in place, you have to have your manuals down. People have to have extreme clarity on exactly what you want them to do, how you want them to do it, and what laws that they need to abide by. I see so many pawnshops not paying attention to this step. Structure, rules and regulations. A lot of times people want to have these shops that just are free for all, or you think that culture comes from that, from having freedom at the stores, but that's not really true. People work better with structure. People work better knowing exactly what they need to do and how they need to do it, because then you put forward expectations.

01:34 You know what to expect of them, and they know what to expect of you. Now let's go to the second step to creating a great culture in your pawn shop. That's communication. If you're not communicating with your team, they don't know what you're thinking. They're not mind readers. You have to consistently communicate. Let them know what's going on. Let them know the numbers. Let them know what you're feeling, what you're thinking, what you're thinking about doing. You have to communicate with your team and there's so many ways you can do this. There's apps like slack that they can communicate online or on their phone with. Please don't send text messages or or open up a whatsapp group with your team. It's just very unprofessional, right? But communicate with him consistently. Have a weekly meeting, have a daily huddle. Have a monthly meeting to find out what happened during the month. Know what you expect for the next month. So communicate, because if you're not communicating your just instilling fear in them and they're just doing what they're doing day in and day out without knowing exactly what you want. So the third step is organization. If you're not organized, please don't expect your to be organized.

03:02 If you don't have a clean place to work, a place where they can find the supplies easily, a place where they can put stuff back easily, a place where the paperwork is filed correctly. There's chaos, chaos. You cannot create culture in chaos. You are the opposite of creating culture, right? You creating a bad culture because people start getting numb to their, to what they see. So if you're leaving garbage in, garbage out. If you're not filing your paperwork, they're not going to file their paperwork. If you're not doing what you need to do to keep organized, your team won't be organized and culture will grow and chaos.

03:52 So in order to make an incredible culture in your store in road, to develop the leadership that you need to have so your operation runs smoothly. Again, there's three essential steps, the structure which are the rules and regulations and all the hr things that you need to do. There's communication which you have to communicate with your team consistently, even sometimes courageously, and the third thing which is organization, organize your stores. Structure. You're stores from the beginning. So many times I hear, oh, I'm just a small shop. I have one employee, I don't have much in pond. Not that much is going on. I don't really need to do that. You see, the truth is organizing now is much easier than organizing when you have 15 employees and hundreds of thousands dollars in pond and your image and your back room is filled with inventory, so don't put this off because in order to have a better store, in order to make more money, you have to create a better culture, not just for your team, but for you as well. You want to come into a place where you enjoy coming to work and without a leave. You guys have an incredible weekend. Thank you so much for listening to the podcast and chat with me in the pawn leaders podcast. Community on facebook or sending me a message and uh, I look forward to hearing from you.

In today's episode, I speak with founder of Value Pawn, Rent-Rite, La Familia Pawn, Premier Pawn and Smart Financial. John Thedford is a CPA and author of the best-selling book, 'Smart Moves Management'. In 2008, EZ Corp acquired Value Pawn for 120 million dollars. Listen to this incredible pawn industry entrepreneur as he shares his knowledge on the operations of the pan business.

[02:36] "The most powerful source on this Earth is a human engaged in meaningful work"

[04:03] It's important that you utilize culture leadership so that the persons you hire do great work

[04:52] John started out at PricewaterhouseCoopers as a CPA and was assigned to Cash America pawn to audit their business. He was pleased with the concept of the pawnshop and was eventually hired as an Accountant.

[06:37] EZ Corp eventually hired John and the continued exposure kept him on the pawnshop journey

[09:53] High wages is about finding the right people and paying them what they are worth

[11:59] John's wage strategy is hiring persons who are aspirational

[15:12] How do you get a great employee and build them up? "Culture"

[16:44] You can attract anybody by the culture you create and caring about your employees

[17:34] The 3 steps to creating a better culture are:

1. Communication
2. Celebration
3. Self-Introspection/Cleanliness

[23:03] The 3 biggest mistakes pawn leaders are making today:

1. Having the wrong people on their team
2. Financial literacy
3. Cultural leadership and training

[32:11] How do you handle the disputes that might occur when paying commission? "You must get great people that work well together"

[33:41] The TTS (Thurstone Temperament Schedule) gives you an indication of the most stable persons and how quickly they can make a decision

[34:07] When people fit the right winner category, then it is all up to the manager to create the culture to hold it together

[34:37] To have your business operate smoothly with the right employees, you must have:

• a standard set of interview questions
• a psychological profile
• an observation day
• a great orientation program
• a monthly training program

[36:39] "If you deliver great customer service, with people who care, and have a long term approach, you're going to do well"

[36:57] There are 5 "Smart Moves Management" books up for grabs! If you're listing to this podcast, text the word PAWN to 444-999 to be in to win right now!

[37:38] Visit the Smart Financial website for more information from John Thedford.