the publication of the J TEXASeweTexas Jewelers Association lSpringer 2007 MOISSANITE VERSUS THE DIAMOND

COMMUNICATING COLOR SELLING THE VALUE AND BEAUTY OF COLORED GEMSTONES

NEW DATES for TJA Convention

New TJA Benefits! Medical, Dental, Vision And Much, Much More!

INSIDE Spring 2007 EXECUTIVE BOARD President T H I S I S S U E Doug Jackson Jewel Mart - D Jackson Co. Paris, TX FEATURES 903-785-7100 New TJA Benefits! Medical, Dental, Vision and Much, Much More! . .6 [email protected]

President Elect Communicating Color ...... 10 Mark Priest Selling the Value and Beauty of Colored Gemstones Legend Jewelers San Angelo, TX Moissanite Versus the Diamond...... 14 325-653-0112 [email protected] Do You Have a No Tolerance Policy? ...... 16

Vice President Stan Mathews Make BIG Profits Using Little Words ...... 18 Mathews Jewelers Orange, TX Inventory Recordkeeping ...... 20 409-886-7233 [email protected] In Sales: Are You a Winner or a Whiner? ...... 22

Secretary/Treasurer Eric Wright Emotional Leakage:...... 24 Village Goldsmith Jewelers Getting Mad at Peter and Taking it Out on Paul Dallas, TX 972-934-0449 BY NANCY FRIEDMAN – Stop what you’re doing, take a deep break and [email protected] put on a phony smile before picking up the phone.

Past President Texas’ New Margin Tax Changes the Rules ...... 26 Peter LeCody BY CHARLES MOSTER – Fast-Fix Jewelry Repair Prepare your company in 2007 for tax changes effective in 2008. Dallas, TX 214-361-2811 fastfix@fastfix.com Expert Tips: Jewelry Take in Procedures ...... 30 BY ARTHUR ANTON SKURATOWICZ AND JULIE NASH – Tips on inspecting TEXAS JEWELERS ASSOCIATION Joe McCullough take in jewelry. TJA Executive Director 1306-A West Anderson Lane Austin, TX 78757 512-454-8626 DEPARTMENTS Fax 512-454-3036 President’s Message...... 4 [email protected] www.texasjewelers.org Executive Director’s Report ...... 6 News Shorts...... 8 Publisher Sail House Publishing Calendar ...... 28 3510 Crowncrest Dr., Austin, TX 78759 512-346-0892 309-420-6280 fax [email protected]

Advertising Representative of a synthetic moissanite stone provided by Joanne Pantaze Cover photo (512) 272-9393 Charles & Colvard, www.moissanite.com, the exclusive global source (512) 278-1531 fax of the synthetic product, which is grown in a laboratory setting using [email protected] proprietary technology. President’s Message

Doug Jackson

Give Us Your Feedback

GOOD MORNING, aftern and our executive director. As you know, all valuable experience. Let us hear from you. oon, or evening – whichever members of the board are volunteers. This Think about donating some of your time applies to you and the time means we are here serving our membership and knowledge to improve our association of the day you are reading because we want to help each of you become and helping our industry. Ya know, we are this. I hope you’re having a more successful and, at the same time, a fairly small industry and when each one great day, business has been help the Texas Jewelers Association. Joe of us helps it makes a big difference. Along good, everyone is healthy McCullough, our executive director, is here the way we invariably help ourselves when and the sunshine of life is to help the association as a whole, and to we help others. Don’t ask me why; it just beaming in on you. Life is good, to quote a guide us through some of the things a non- happens. fella I know, namely Brian Dodge. profit can and must do to fulfill our legal I want you to know we have a great In each issue of the magazine, I am obligations. He is also highly concerned board of directors who truly want to help asked to write something to and for the about helping us grow and be all we can and are ready, willing and able. To each of membership of our association. As you be—for you, our general membership. these fine folks, I say “thank you.” I truly might imagine, it’s not always easy for a In order to do that, we need to hear appreciate your help. jeweler to be a creative writer and come from you. We need you, the retailer and My phone number is 903-785-7100. You up with something interesting, timely wholesaler, to talk to us anytime you have are welcome to call me with any questions and informative for the membership that questions or suggestions and comments, or suggestions and I will do my very best to will help as many as possible in some way. (yes, even the not so positive). Give us answer any concerns or questions and help Today, I will be asking something of each the good, the bad and the ugly. There are in any way I can. of you. a lot of bright, experienced jewelers in We truly are here for you. Let’s talk about the board of directors Texas who have wonderful ideas and lots of Have a wonderful year and God bless.

2006 – 2007 Board of Directors

Peter Barr Ronnie Pagel Bob Singleton Corpus Christi, TX Round Rock, TX Colleyville, TX 361-992-2277 512-388-4653 817-577-3802 [email protected] [email protected] [email protected]

Amber Gustafson Jeannie Roberts Roe Peter LeCody Amber’s Designs Del Rio, TX Past President Katy, TX 517-775-0600 Dallas, Texas 281-391-6333 214-361-2811 [email protected] Renato Ronquillo fastfix@fastfix.com Baytown, TX David Harleston 281-421-5603 Joe McCullough Lathrop’s Gem Shop [email protected] TJA Executive Director Bellaire, TX Austin, TX 713-665-0614 Steve Konetzke 877-305-3935 (toll free) [email protected] Sleeper, Sewell & Company [email protected] San Antonio, TX Ronnie Miller 210-490-6611 Meyerland Jewelers [email protected] Houston, TX 713-666-6333 [email protected]

4 – Texas Jeweler www.texasjewelers.org ELECTRICITY DISCOUNTS for Members IS ENDORSED BY

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Electricity for your: Contact Us Today (866) GET-TARA x 1317 Home (866) (438-8272) x 1317 Business Or E-mail at Employees [email protected] Executive Director’s Report Joe McCullough nowTexas Jeweler Association has Medical • Dental • Vision & Much, Much More!

OTHER AREAS STEP NUMBER 1 health care. What these individual plans OF BENEFITS OFFERED do is offer a variety of medical and dental Go to www.texasjewelers.org and find the insurance models. Some models are more • DISCOUNT MEDICAL orange “Click On” button and you will be comprehensive and some are set up as ENHANCEMENT OPTIONS entering the newest and far reaching family discount plans that address basic needs. You of MEMBERSHIP BENEFITS for 2007 can pick your model depending on your This is a package of discount medical this association has ever seen. This website company and/or individual medical issues. services that provide savings on a variety was designed especially for the association There are a couple of basic medical plans of medical needs. You will have access to market and it allows for a wide variety set up like menus, where you pick and the most extensive network of health care of services, benefits and even vacation choose benefits according to your needs. providers for each of the discount medical packages. They are all packaged under one You pick your payment and you pick services available in the marketplace today. click-on button on your association home your benefit level. The medical coverage The discount medical services available page website. is through A+ rated Champion Life and in this package include discount vision, Before you get started… I would should be looked at pretty seriously by those discount hearing, discount dental care, highly suggest that you spend your first without any coverage for their family and or doctor/hospital network discount, and 15 minutes or so reading the GREEN even your office staff as a company benefit diagnostic imaging and lab discounts. BUTTON SECTION – PROGRAMS plans and retention plan. These plans offer AND OVERVIEWS. This section helps FLEXIBILITY at affordable prices and they • ID THEFT AND RECOVERY you better understand how the various offer SECURITY to you and your family ID Theft & Recovery Program is a membership benefits differ and how they and/or those in your company. powerful benefit that gives you the help can be combined for increased satisfaction. The medical and dental plans, while you need when identity theft destroys your This section is somewhat essential for better multi-purpose and flexible, also have the good name. You’ll have it all taken care of, navigation and understanding, so please added value sections found by clicking on usually in just a few days. Your good name take the time and read this section first. the SILVER, GOLD AND ADDITIONAL restored, and your credit record, too! ADD-ON BENEFITS IN BLUE, which ARE THESE can be added to your basic plans. By • PERSONAL COUNSELING SERVICE NEW BENEFITS ALL clicking on the blue buttons you will be able The counseling service allows members to ENCOMPASSING? to review the numerous benefits that each seek professional clinical assistance in order of these sections brings to the table. Again, to resolve numerous personal problems. A The benefits for medical and dental are you pick and choose any program that fits professional counselor will work directly and most likely not the answer to all company your business and or lifestyle needs. If you confidentially with the member or family and or individual needs. Let’s face it… need none of the add-ons now and wish to member to help resolve the problem. total health care coverage today is simply utilize them later, that is what these plans are not affordable for most employers and about—flexibility and additional services to • HOME ASSISTANCE SERVICES individuals. Okay, the secret is out about you as a member of your association! This service provides our members a personal helper to assist them in getting the

6 – Texas Jeweler www.texasjewelers.org • DURABLE MEDICAL the convenience of automatic withdrawal EQUIPMENT DISCOUNT from your checking account. The medical supplies and equipment benefit offers a broad selection of products • VEHICLE ASSISTANT and has a long-standing relationship with All the pains of your next vehicle purchase most major manufactures. are gone. Just submit your detailed request and let our vehicle service representatives take • DIABETIC SUPPLIES DISCOUNT over. We locate your vehicle, new or used and Benefit members can receive special we then use our national buying power to discounts from a leading national mail negotiate on your behalf. You test drive the order company, capable of shipping car and write the check, we take care of the products within 24 hrs. rest. Your membership ID number will be provided in your fulfillment packet. • 24HR NURSE HOTLINE Registered nurses are on call 24 hours • EASY AS 1-2-3: a day, 7 days a week, to provide members 1. Select your purchase with advice on a wide range of issues. 2. We locate and negotiate answers and services they need. For pennies 3. You receive what you want at the price a day, your personal helper gives you peace • WORLDWIDE CONDO DISCOUNTS you want to pay! of mind with outstanding saving values SAVE, SAVE, SAVE, on one, two and and services from health care services to three bedroom condos worldwide. You • AUTO CARE CENTER help around your house. You can be secure now have access to over 35,000 weeks of Meineke Auto Centers are pleased to offer in the knowledge that we have screened surplus condominium inventory worldwide a 10% discount on all auto services at the everyone we recommend, saving you the at some of the world’s most beautiful resort over 900 locations nationwide. A discount hassle and worry. locations at deep discounts. When searching of 5% will be given for all purchases of for a desired destination, start your search tires and batteries. Please present your • WALK IN PHARMACY on a Saturday or Sunday for best results. You membership ID card to be recognized for Visit one of over 35,000 participating can reserve your selection at NO COST for these discounts. pharmacies nationwide, present your 24 hours. Please contact member services membership card and you may save up to toll free (877-571-6400) to confirm and • MOVING AND STORAGE 40% on brands and up to 70% on selected complete your reservation. New inventory is Atlas Van Lines is proud to offer the generics. added on a regular basis, if a desired location very best in moving and storage. You will is not available when you search you may realize savings of up to 61% bottom line • MAIL ORDER PHARMACY wish to check back at a later date. discount regardless of season. You also You can choose 90-day Mail Order have a discount of up to 45% on storage in supplies for maintenance medications • HOTEL DISCOUNTS transit. All this comes with up to $50,000 and receive great savings. Our mail order Now you can save on rooms at over 6,000 Value Replacement in Transit Protection. medication provider utilizes many different participating hotels worldwide with the suppliers to deliver aggressive value pricing Wyndham Hotel Group. You will receive to our subscribers. a discount of 10% off the “Best Available AND MORE! Published Rate” at participating locations. • AD&D / AME INSURANCE You must book online or through our toll These new “Membership Benefits” As a member you will receive $10,000 free reservation # to receive these savings. are yours for just being a member of this of Accidental Death and Dismemberment Your membership ID number will be association. We hope you will take the time Insurance, and $5,000 of Accidental provided in your fulfillment to explore your new personal and business Medical Emergency Insurance with a $250 options and the unique and affordable deductible. • CREDIT ENHANCEMENT opportunities offered by these plans. PROGRAM Questions can be answered by qualified • DISCOUNT VITAMINS/MINERAL This program provides positive reporting plan administrators within each section SUPPLEMENTS to the credit bureaus on a regular basis. so please refer to those website numbers Benefit members can obtain a wide Enjoy having your monthly membership should questions arise. range of vitamins and mineral supplements dues billed to our Credit Enhancement Your association dollars working for through our mail order program at savings of Program, powered by MasterCard, and you are unmatched by any…association 25%-50% below suggested catalog prices. then paying your MasterCard bill through you know. Spring 2007 Texas Jeweler – 7 News Shorts

JA LAUNCHES J-BIZ WEBSITE, LSGIAAA ELECTS 2007 AND 2008 OFFICERS ONLINE DISCUSSION BLOG Jewelers of America has launched an The Lone Star Gemological Institute of Board Members include Daniel Banks, online resource center for its new educational America Associates and Alumni founded G.G. (Banks International - Houston initiative, J-Biz. The website is designed to for individuals desiring to further their Texas), Ted Resnick, G.G. (Resnick connect jewelers nationwide in an interactive knowledge in the gem and jewelry Jewelers - San Antonio), Pamela Welborn, network, where they can gain the tools industry has just elected a new Board of G.G., Colleen Rauschlaung, G.G. necessary to be competitive in the 21st Directors for 2007 and 2008. Davena F.G.A. (Austin Texas), Janisue Rigel, century. It further advances the J-Biz mission Rigel-Liepman, G.G. and resident of The A.J.P. (Grand Prairie Texas), Joy Aiken to develop multiple ways in which education Woodlands has been named President. G.G. (Member at Large - Objects of can be delivered to industry members: in- Jeanie Hord-Bellows resident of Laguna Joy - Austin Texas), Frances D. Johnson, person, online, or at home/in store. It can be Park will take the roll of Vice President. G.G. (Member at large). Past Presidents accessed online from JA’s home page at www. Ms. Ana Crawford G.G., of Austin include: Pam Welborn, Ted Resnick, jewelers.org (click on the J-Biz logo). and Mr. Bob Hord of Laguna Park will Daniel Banks, Janisue Rigel and Richard Initially, the J-Biz website will build upon assume the roll of Treasurer. T. Hirsh. the issues raised at JA’s popular Town Hall meetings, taking place at trade shows in Atlanta, GA; Madison, WI; Las Vegas, NV; and New York City. Jewelers who cannot attend the Town Halls – or who wish to gain more information about the topics discussed – can find informative material at the J-Biz website. At the “Live Learning” section of the website, jewelers can read complete Town Hall transcripts and view the event presentations at their convenience. Key topics discussed by presenters at the Town Halls will also be available online – so that jewelers can quickly review advice and information about the crucial issues facing retail jewelers today. The essential element of the website, however, will be its online discussion forum. The “Learning by Sharing” section features 2007-2008 Lone Star GIA officers, left to right: Pam Wellborn (founding a live discussion blog, where jewelers can member); Bob Hord, treasurer; Ana Crawford, secretary; Jeanie Hord Bellows, share business insights, ask questions, vice president; and Davena Rigel Liepman, president (founding member). and offer suggestions on managing and overcoming the challenges of the modern independent retailer.

INDIAN JEWELER PURCHASES AUSTIN-BASED SAMUELS PROFIT PROFIT PROFIT An Indian diamond and jewelry You can increase your profit and do a better job manufacturing company has bought a of running your jewelry business With the right computer program. majority stake in Austin-based Samuels Jewelers Inc. Gitanjali Gems Ltd. of Mumbai WINJEWEL SOFTWARE purchased its shares in Samuels from funds managed by DDJ Capital Management. A free sample of our program is available by going on the Terms of the deal were not disclosed. Internet to WinJewel.com and clicking on “Free Sample”. Samuels, which operates 97 retail jewelry stores in 18 states, will remain Or give us a call at 360-658-9875 (ask for Larry) headquartered in Austin. Samuels is the 10th largest specialty retailer of fine jewelry

8 – Texas Jeweler www.texasjewelers.org News Shorts

in the United States, ranked by number of retail locations. TJA OFFICER, OTHERS WIN In connection with the deal, Samuels MIDAS SHOW AWARDS secured $60 million through Wells Fargo On September 9, 2006 the Southwest Retail Finance LLC. Midas Texan Show presented awards to the “Samuels is excited to have Gitanjali as a 2006 Southwest Star Award Recipients. majority shareholder and vendor partner,” This 2nd Annual Award acknowledged says the company’s president and CEO, the outstanding contributions and service Pictured from left to right; Robert Randy McCullough. “We look forward to the Southwest Jewelry Industry through Carroll, Ray Dayer, Brittany Adair, to working with Gitanjali and see this service to the industry their community and Janisue Rigel, Vickie Cunningham, transaction as a tremendous opportunity for charitable organizations. Recipients were Mark Priest and Bob Rose. expanded market share and future growth.” chosen by nomination letters submitted G.K. Nair, chief financial officer for from their peers and manufacturers. TEXAS Gitanjali, says the deal is consistent with that • Mark Priest company’s objectives to create an efficient 2006 SOUTHWEST STARS Legend’s Jewelers – San Angelo, Texas model that extends through the entire supply ARKANSAS chain, from manufacturing to retail. • Ms. Brittany Adair SALES REPS. BEING HONORED “The industry is prime for consolidation Romance Diamonds • Mr. Robert G. Carroll and we viewed this opportunity with Fayetteville, Arkansas Jewelers Mutual Insurance and Samuels’ stores and management team as an Robert G. Carroll & Associates ideal compliment to our ongoing operations OKLAHOMA Oklahoma City, Oklahoma in the U.S.” says Nehal Modi, CEO of • Ms. Vickie Cunningham • Mr. Bob Rose Gitanjali’s U.S. affiliated companies. “By Cunningham Jewelers Roseco Inc. – Dallas, Texas combining Gitanjali’s extensive industry Tulsa, Oklahoma • Mr. Ray Dayer resources with Samuels’ rich network of Seiko Corporation USA – Arkansas retail stores, this transaction represents an

Spring 2007 Texas Jeweler – 9 Feature 10 to apply what they know about diamond about know they what apply to when shopping for a colored stone is trying that factors unique. gem each make value the them to with time share little a take you that wardrobe a jewelry their to add gemstone in colored to quality decision the found make customers are It’s gemstones. as you nature’syour help important colors of breathtaking examples permanent BEAUTIFUL and MOST THE OF SOME h fis msae ay epe make people many mistake first The – Texas Jeweler COLOR g n i t a c i n u m m o C Value andBeauty

Gemstones au fcos ht e a rlt t most to relate can we that factors value same standards appliedtodiamonds. the using not definitely and individually, gemstone demands that we evaluate each gem variety every and each of uniqueness gemstone is somewhat similar, the inherent colored a of quality the and describe to use we terminology cutting the though to Even polishing. mining to formation gemstones. from way, every in other unique are Diamonds to value and quality Selling the of Colored of Colored ih ht ad tee r sm general some are there said, that With mat n rc. ee r sm general guidelines tofollow: some are Here price. on impact strongest the has that factor value the is COLOR gemstone—personal tasteandpreference. one consideration that’s and even weight), carat (color, and cut, Cs clarity, four the namely gemstones, Darker doesn’t usuallymeanbetter. color variety, gemstone every almost In more important when selecting a colored www.texasjewelers.org COLOR

Photo provided by Barr Jewelers

Photo provided by Barr Jewelers Photo provided by Barr Jewelers

Many people are under the impression moves from pure hue (red, blue, green, etc.) the spectrum—red, orange, and yellow. that the darker the color, the more valuable to something in between (such as orangey- Using incandescent light to illuminate a the gem. This is not necessarily true. If a red or yellowish-green). gemstone in this “warm” color range will gem is too dark its value actually decreases, Lighting makes a difference in the way make the gem much more attractive. because the true color is hidden. For a gemstone looks. Be sure to show your Fluorescent lights usually contain more example, there are lots of blue sapphires on customers a colored gemstone under of the cooler shades of the spectrum— the market that look more black than blue. different lighting conditions. A ruby blue, green, and violet. Gems in this “cool” The most valuable gemstone colors are pure viewed under one type of light source may color range will always look more attractive and vivid with a medium to medium-dark appear a beautiful red color, but under a under fluorescent light. You can also use tone. The value of a gemstone will usually different light it may look this information to display your gemstones begin to decrease as the color moves toward brownish-red and dull. Incandescent so that they look their most beautiful in a very light or very dark shade. Value will lights, such as a normal light bulb, give your cases. also drop in many gem varieties as the color off much more of the warm shades of The real test of a gem’s beauty is to see if Spring 2007 Texas Jeweler – 11 Photo provided by Barr Jewelers

it looks attractive under both types of light, what they like best. You should help your unlikely, while inclusionfree aquamarines incandescent and fluorescent. Also, check customers select colors that appeal to them, are relatively common. how the gem looks in sunlight. You can be their style and their fashion sense. If they Knowing what to expect in regard to the sure that gemstones photographed for print prefer paler shades of a gemstone, then clarity of each gem variety will help you ads, catalogs and websites are very carefully it’s your job help them find the perfect color better understand a gem’s value. lit with specially designed lights to ensure at the best value. They’ll be happier with As a general rule, a gemstone with no they look fabulous. The big question is will their purchase and with their experience visible characteristics will command a they look as good under normal lighting shopping from your store. higher price than a similar gem with visible conditions. Be sure to point this out to your inclusions. But this is not always the case. customers so they know that there’s really CLARITY For example, shiny platelet inclusions in no other way to buy a colored gemstone Colored gemstones form in unique sunstone create a sparkling effect that adds except by seeing it in person. environments, and these environments to the stone’s value. A gemstone expert can tell you which have a lot to do with the clarity of the Small intersecting needle inclusions help colors are the most rare and most expensive, gem. For example, the formation process to create the highly prized stars in some but only your customer can decide which of aquamarine usually results in a highly sapphires and rubies. colors are the most attractive. When talking transparent and inclusion-free gemstone Think of inclusions as birthmarks, about something as subjective as color it is when viewed with the unaided eye. On not flaws. It’s a good thing to buy a gem impossible to equate cost and rarity with the other hand, emerald forms in an with some inclusions, as long as you don’t beauty. Quite simply, beauty is in the eye of environment that almost always produces think the inclusions negatively impact the the beholder. Don’t allow your own personal some inclusions visible to the unaided eye. gem’s overall beauty. In fact, a gemstone’s feelings or gemological knowledge to get in This means that finding an emerald with inclusions add individuality and help make the way of helping your customer choose no visible inclusions would be extremely the gemstone one-ofa- kind.

12 – Texas Jeweler www.texasjewelers.org CUT CARAT WEIGHT Which one is the best? That’s easy; it’s the The way a gemstone is cut can have a The majority of gemstones are sold based one your customer likes the most! tremendous impact on the gem’s beauty. on weight using the “carat” as the standard Don’t confuse price with beauty. Gemstone cutters strive to do two things. unit of measurement. The per-carat price Encourage your customers to trust their First, they try to create an attractive of a gem will usually increase as the size eyes and their hearts to pick out the colored finished gem, and second, they struggle of the gem increases. The amount of the gemstone that’s right for them. to save as much weight as possible increase depends upon the factor of rarity. Because each and every gemstone variety from the rough gem crystal with which A good comparison is unique, it’s important that you do a little they’re working. If they try too hard to that illustrates the effect of rarity on per- research to better understand the gemstones save weight they will sometimes end up carat price is blue topaz versus ruby. that your store sells. You may discover that with a stone that’s either too deep or too Because it is common to find blue topaz a fine quality one-carat ruby is out of many shallow. This overzealousness in regard in large sizes there is very little increase in of your customers’ price range, while a to weight retention will often have a the per-carat price between a one-carat and fabulous red spinel is both affordable and negative impact on the finished gem’s a four-carat specimen of similar quality. On the exact color they are looking for. Perhaps beauty. the other hand, it is extremely rare to find a your customer thought they wanted a blue A well-cut gemstone should show large ruby in sizes over a carat. A one-carat ruby sapphire only to later discover (after you areas of brilliance and color when viewed in might sell for $2,000 per carat while a similar showed them an alternative gem) that they a face-up position. Light and color should quality four-carat gem could reach as high as really prefer the violet-blue hues of tanzanite. be reflected evenly from inside the entire $5,000 per-carat, all because of its rarity. Investigating colored stone possibilities gemstone as you slowly rock the gem back is both fun and exciting. The more you and forth. Large dark areas and areas that PERSONAL PREFERENCE learn, the more confidence you’ll have in look washed-out or transparent indicate a Specific varieties of gemstones can come helping your customers select a beautiful gemstone that was not cut with maximum in a wide color range. For example, blue gemstone that fits their tastes, preferences, beauty in mind. As a general rule, at least sapphire can vary from extremely light and personal styles. 60% of the overall face-up area of a well- (pale blue) to very dark (black-blue). The cut gem should reflect strong brilliance and hues can also range anywhere from a strong This article was reprinted with permission sparkling color. greenish-blue to an almost pure violet. and provided by the Jewelers of America (JA). It originally appeared in the September 2005 issue of CounterPoints.

Spring 2007 Texas Jeweler – 13 Feature 14 Moissanite created moissanite, is produced exclusively produced is moissanite, created referred to as “synthetic moissanite” or lab- Sometimes technology. proprietary using setting laboratory a in grown actually is used injewelry. be cannot and viability commercial little has moissanite natural size), in small very very, often (and rare is it Because Canyon Diablo. called crater meteorite Arizona famous a from taken specimen geological Moissan. He first identified moissanite in a rare Nobelafter named Prize Dr.winner Henri extremely and by an discovered was It mineral. natural is carbide) silicon MOISSANITE versus the h misnt ue i jwly today jewelry in used moissanite The – Texas Jeweler ceia composition: (chemical Its refractive index (a measure of a material’s diamond. of those to aresimilar properties moissanite’sSeveralof physical and optical characteristics. visual and beauty own its a is upon based marketed is and moissanite jewel unique rather but alternative, diamond or diamond, of brand a diamond, not is moissanite a substitute, for diamond mistaken be might and diamond stores andotherretailjewelry outlets. retail manufacturers, jewelry to sell who worldwide network of wholesale distributors & Colvard sells moissanite jewels through a based-company.Charles Carolina North a Colvard, & Charles source, global the by hl iiily osaie ok like looks moissanite initially While Diamond

n snhtc osaie s doubly is moissanite refractive. When light enters either material synthetic and There are several relatively simpleways. moissanite from diamond. separating for ineffective probe diamond thermal traditional a making diamond, a like much heat conduct to ability the has and resistant heat extremely is Moissanite 10. being diamond, to only hardness in it making second and ruby scale or sapphire than Mohs harder the is on hardness 9-1/4 Its a diamond). for 2.42 vs. moissanite for (2.65 diamond than higher slightly is light) slow and bend to ability imn i a igy ercie material refractive singly a is Diamond difference? the tell you can how So, www.texasjewelers.org

it is slowed and bent, but in synthetic are looking at moissanite. What you do from a standard thermal diamond probe. moissanite the light is also split into two definitely know is that you are not looking You’ll find more information on synthetic beams or “doubled”. By using a 10X loupe at a diamond. moissanite and its separation and detection and looking through the crown facets of One of the most reliable methods is at: a synthetic moissanite, you can see quite by using a piece of relatively inexpensive • Charles & Colvard website easily the double image of back facet edges. equipment specially designed to separate www.moissanite.com They look like little parallel lines or tiny moissanite from diamond. These “moissanite • GIA website train tracks. This “doubling” is best seen detectors” are readily available for less than www.gia.edu/newsroom/608/3058/ by looking through a bezel, star or upper $200.00. The tester distinguishes between news_release_details.cfm girdle facet. It is more difficult to see when diamond and synthetic moissanite by • The Guide website looking perpendicular through the table, testing for the absorption of ultraviolet www.gemguide.com/news.htm however, you will be able to see doubling light. Diamond will transmit the UV light, through the table, when you tilt the stone. while moissanite will absorb light at certain This information was reprinted with You’ll never see “doubling” in a diamond. wavelengths. The moissanite tester should permission from the Jewelers of America (JA) Moissanite But doubling in itself does not prove you be used only after getting a “diamond” result and originally appeared in the Ask the Expert

Spring 2007 Texas Jeweler – 15 Feature 16 in your community. It can be devastating be can Itcommunity. your in viewed be would claim harassment sexual the chargesare justorunfounded.* whether harassment, or discrimination of accusation an by caused harm the reflect it does Nor employers. by paid costs hidden nor other and expenses courts legal considerable the other in obtained litigation settlements through include not does in EEOC 2005 totaled $271.6 million. This amount the through resolved claims for paid benefits monetary less, the None cause.” reasonable “no have to found are charges filed of percent 62 Approximately increased. have costs the off, leveled has or harassment related to employment. 75,428 charges alleging discrimination and/ Opportunity Commission (EEOC) received EMPLOYMENTEQUAL THE 2005, IN buried in a file? a in buried who anyone acts. such commits for consequences the and workplace your that in permitted be behavior not will of types the understand harassment? discrimination/ for policy tolerance” questions: important these consider situation, company’s your assess help To place? first the in claim prevent a you can with how but assistance defense, your provide can insurance costs canoftenreach $100,000. defense awarded, are damages no if Even line. bottom your and reputation your to hn aot o a iciiain or discrimination a how about Think charges filed of number the While Isyour “no tolerance” activepolicy or Does your company have a written “no liability Practices Related Employment – Texas Jeweler No Tolerance Your employees need to to need employees Your An active discrimination/ active An Do youhavea incidents that may lead to disciplinary disciplinary to lead reflect may that accurately incidents that records written several last years. the over performance deteriorating work to due employee the fired company The age. to due discrimination and termination wrongful alleging sues, company a with years 17 after terminated occurs? claim a if company your protect documentation staff changesoccur.) when policy your of portion this update to sure (If be policy, your in used reported. are names be may grievances whom to persons of titles or names two least at Provide problem. the is an supervisor the help if to much not report is supervisor only immediate employee an that requiring policy A grievances. reporting discrimination/ on harassment topicsannually. meetings hold and service hotline 24-hour a provide possible, If sign. to hires new for forms notification and bulletins, up-to-date Includesigns, or posters effectively. communicated is that it and company your is for procedureappropriate grievance your sure procedure? Make grievance the understand be ofyour dailyoperations. part should It and frequently. employee— management, communicated upper each by promoted by acknowledged defense. Youra written— be should policy to incidents as they are reported will not be harassment policy is crucial. Just responding r yu eurn ad epn good keeping and requiring you Are written your will well How for options have should Employees employees and supervisors your Do policy? ups a employee an Suppose

issues. Employees should be given performance adequate of notice timely employees get should and standards, hiring work-related objective on focused and be should practices decision. evaluations your support Performance to adequate is documentation your sure make employee, an discipline or terminate you If action? Article courtesy ofFederatedArticle courtesy Insurance. can law of change rapidly. area this as questions, your to want with professional may legal qualified a also consult You start. good a is harassment policy, training and procedures to prevent such harassment. supervisor’sactions or even if they have tried simply because they had no knowledge of the Owners or top managers may not be excused business can be held liable discriminateswithoutor employee,againsttheyour any defense. supervisor’s refuses the advancewho sexual employee an demotes or firessupervisors yourofincident. onethenotifiedIf ofnot a forsupervisor’s responsibleemployerconducttheevenif is held be can employer and will keep good written records for you? training proper received have supervisors managersandyour confidentthat you Are policy? tolerance” “no your to adhere of employment practicesclaims. cost the increase could and problem major employee. Lack of documentation can be a the to unfair as seen typically is change or improve to opportunity without Notice deficiency.or behavior the correct to time Reviewing your company discrimination/ an that remember to important is It will employees that satisfied you Are www.texasjewelers.org

It’s A New Date for the TJA Convention September 28 – 30, 2007 Galveston, Texas

CONVENTION DATES Friday September 28, 2007 – Sunday, September 30, 2007 (Arrive Friday or Saturday)

HOTEL Hilton – Galveston Island Resort 5400 Seawall Boulevard Galveston, Texas 77551 409-744-5000

ROOM RATES $109 Single-Double

RESERVATIONS 1-877-425-4753 (Be smart and make you reservations now…you can cancel rooms if needed later, but you can’t get rooms if they are sold out) Feature 18 18 That onelittle word doubledsales. Repeat. and Rinse, Lather, in as “repeat,” company’sbottles. shampoo wordwas The the on instructions the to little added be word one that suggested worker factory asked their employees for suggestions. One they so shampoo of sales their WANTEDincrease to GAMBLE AND PROCTER Little words can help you increase your increase you help can words Little – – Texas Jeweler Texas Jeweler Using Make Plus – The 3 most powerful words inmarketing words The 3mostpowerful Little

of value to the customer. You must: very high impact that creates the perception a have yousure prospects.make You must and your marketing materials have you contactwith every your and each of impact the selling costs you must find ways to maximize sales andprofits. Attract the prospect’s attention. • and marketing increasing of Because BIG BY BOBJANET

Profits Words It just matters that there is a difference so difference a is there that matters just It $299” refrigerators only shelved wire foot cubic 18 “ALL read: would ad appropriate the So shelves and all the others have glass shelves. at $299,orhewouldlosemoney. refrigerators foot cubic 18 his can’tall sell for only$299-reg. $499” effective ifithadsaid: and grabbing attention and exciting more lot a been have one ad only Wouldn’t the model. or values terrific these of one only was there that impression the gave it because desired, be to lot a left ad the of reg. $499” - $299 only for sale on refrigerators foot advertisement in the local paper. “18 cubic thecustomerneeds. you offereverything that and available price lowest the at is sell powerful a into impact telling the customer every item you statement or ad hum my favorite istheword “All.” products /services. products /services. Gt h csoe t prhs your purchase to customer the Get • It doesn’t matter what the difference is. difference the what doesn’tmatter It wire has refrigerator leader the Maybe dealer the but have, would it course Of sale on refrigerators foot cubic “ALL18 This was a terrific price. But the wording For example, my competition placed this ho- any change will “ALL” word The of One words. little with it do to like I Get the customer to use more of your • www.texasjewelers.org www.texasjewelers.org it singles out which model of appliances wait for a sale before they buy. Bob Janet combines 40 plus years as are on sale while bringing in a swarm of 3. Guarantee – No one buys anything owner/operator of Professional, Retail, business. The word “ALL” even improves without a guarantee. Sure, they may forget Manufacturing and Service businesses with the sound of a free giveaway. Recently the to mail the guarantee in, but they want his unique teaching and storytelling ability to local minor league baseball team advertised, it. Most every seller offers a good to great motivate and give business professionals of all “Free hats to the first 300 fans attending guarantee, but few market it. Few sellers use levels and all industries selling and marketing tomorrow’s game.” their guarantee as a benefit selling point. skills and techniques to increase sales & profits See how much better the offer sounds Remember the old saying, “It’s not instantly and long term. with the word ‘ALL’ inserted: “Free hats always what you say, but it is always how for all of the first 300 fans attending you say it.” Enhance the way you say it Contact Bob for your next keynote speech or tomorrow’s game.” with little words. sales seminar. For more information, visit Even stating the hours for a special sale www.BobJanet.com. looks bigger and better with the use of the word “ALL.” Recently I saw this in an ad: Special Sale Hours: Tonight 9:00 p.m. until 10:00 a.m. tomorrow. Use of the word “ALL” turns it into a perception of a much longer time and more of a special event: Special Sale Hours: Open all night! 9:00 p.m. to 10:00 a.m. tomorrow. Other little words that make a big impacts: 1. Only 2. Now 3. Special 4. New 5. Easy 6. Call 7. Buy 8. Send 9. Stop 10. You

THE 3 MOST POWERFUL WORDS IN MARKETING 1. Free – Everyone wants something free. Of course you cannot give your products and services away and stay in business. But you can offer the customer something free when they make a purchase. Free delivery. Free extended warranty. Third one free when you purchase two. # 1 Rule in giving products and services away for free: Only give products / services away free if doing so creates the sale at the profit you desire. 2. Sale – In the retail industry it is estimated that 90% of purchases are made when the item goes on sale. Even if you are not selling in the retail industry, the customers you are selling to are use to buying in the retail industry and are conditioned to Spring 2007 Texas Jeweler – 19 Management 20 – Recordkeeping Texas Jeweler Inventory Inventory BY STEVEKONETZKE,CPCU customers suffer major losses such as an armed robbery or burglary and get and burglary or robbery armed an as such losses major suffer customers records are in, the quicker you will be paid by the insurance company. I’ve had destroyed in the fire or other natural disaster. records.inventory AT THETIMEOFANINSURANCECLAIM? WHO ISYOUR“BESTFRIEND” the records afterthefact. constructing suppliers their of help the with work extra of lot a through go to had jeweler the but paid, eventually were claims standards. The proper the to records inventory wereup their not because months 8 to 6 for out drag claims their claim check within 20 to 30 days. On the other hand, I’ve had customer’s It is critical to the health of your business that the better the shape your shape the better the that business your of health the to critical is It The “burden of proof” is on you to determine what items were taken in the theft, I would like to think it’s me, the insurance agent. But it is not “me”; it’s your www.texasjewelers.org WHAT ARE THE STANDARDS home, a bank vault or your accountant’s Steve Konetzke, CPCU, works at Sleeper WHEN IT COMES TO INVENTORY office. Sewell Insurance and can be reached at 210- RECORDKEEPING? 490-6611 or [email protected]. I suggest you contact your insurance agent to get specific details on the inventory recordkeeping that your insurance company requires. According to Jewelers International School of Gemology Mutual Insurance Company, the records www.SchoolofGemology.com should include the following: 1) Take a detailed and itemized inventory ISG Gemology Classroom-At-Home DVD Lecture Series once a year. This consists of the following: a. A listing, which describes the merchandise Individual Courses Offered: in such a manner that will trace the items Pearls back to the original purchase invoice. Diamonds b. The value of each item at your cost. Colored Gemstone Grading c. The date the inventory was taken. Colored Gemstone Identification d. The exact total of all inventory items: Identification of Synthetic Gemstones not a rounded or estimated value. Introduction to Watches Inventory 2) Maintaining purchase invoices of all This new concept in gemological training gives you the experience of a classroom items. setting without the financial expense and time delays that go along with having to 3) Maintaining a record of the cost travel and be away from home for extended study periods. of component parts for manufactured Recordkeeping (assembled) items. Total cost including all course material and complete 4) Maintaining sales receipts, which DVD/CD lectures and reference materials:$495.00 identify items sold by inventory numbers, descriptions, or some other method that [email protected] will trace the item to the listing of the physical inventory and the original source 210-877-5816 documents. Member American Gem Trade Association • Texas Jewelers Association • Jewelers Vigilance Committee NOW THAT YOU HAVE THE PROPER INVENTORY RECORDS FOR INSURANCE PURPOSES, WHAT DO YOU DO WITH THEM? It is recommended that you store inventory records for a minimum of seven years. If you have stock that is older then seven years, then keep the inventory records for that stock until the items have been sold. If you have a manual inventory system, keep your records separate from your merchandise to minimize the chance of your records being stolen. If your inventory system is computer based, back up your files on disk, tape or external hard drive and store the information at a location away from the premises. Store your inventory records, including purchase invoices and sales receipts, in a fire resistive container or safe that does not hold your merchandise. Keep a copy of your physical inventory away from your premises, such as at your Spring 2007 Texas Jeweler – 21 ManagementFeature 22 o dd’ sl vle o o competed you so value sell didn’t you dollars togetridofit(them)! of thousands of hundreds worth be will it yours, is whines more, or these, of one If me! like whiner,recovering a least, very the at or, whiner a probably you’re sales, you’re in if Yes, people. sales from hear I 1. that whines biggest 14 the listed have I – I o ba o pie” us what, Guess price.” on beat got “I Texas Jeweler Are YouAre oraWhiner? aWinner In Sales: + relationship sellingare! than higher however,everything, isn’t value and value based price was that show to bid goes Just mine.” their and else deciding issue. the was price and level commodity a on 3. 2. “Mydoesn’t guy decisions.” the make someone with went company “The BY LINDATALLEY today! action take therefore and priority the you make to value enough create not did You the decisionmaker. wasted your time with someone who is not you so buyer economic the with meet to knowledge or courage Youdidn’tthe have 4. Te wn t wi tl nx year.” next till wait to want “They www.texasjewelers.org 5. “My competitor stole the account.” you’re not trying. You have no right to be really want. That way you’ll Purchasers make purchases based on consuming happiness without creating just begin getting what you emotion and justify it with price or logic. as you have no right to consume money really want and whining Did your competitor work with your without creating it. “I never win” is negative will be a thing of the past. client to help them identify key objectives goal setting. Is that what you want? (what they need), value objectives (what Linda Talley, a leadership is important to them), and the outcomes 14. Whining is a doggy-downer. It’s coach, offers personal coaching sessions and they want (their future worth living into)? negative goal setting at its best and is it frequently serves as a speaker at seminars and what you really want? training sessions. For more information on her 6. “I leave a voice mail requesting a services and products, visit www.LindaTalley. meeting but they never call me back.” You Stop whining and start winning. Instead com. haven’t established rapport or created a of whining, change your focus to what you need for them to see you about so you’re begging vs. creating value.

7. “The decision maker won’t talk to me.” Perhaps you don’t think enough of yourself to seek that level of person. You are more comfortable with the underling. You don’t want to “rock the boat.”

8. “The customer doesn’t want to see me.” You haven’t identified and shared outcomes—what the customer will feel vs. what they will buy from you.

9. “Our business is cyclical.” That’s because you’re not dealing with the economic buyer (EB). The EB will make a decision in 2 minutes.

10. “Our training is lousy.” Did you show up to the training physically and emotionally ready to learn or did you just show up? Aptitude is 5% while attitude is 95% of the winner’s equation.

11. “I hate my job.” No, you don’t, you hate yourself and are projecting that onto the job. Find out what the winners in your position are doing to be winners, copy that and see what happens and also review #10 above.

12. “I don’t have time to review the proposals and respond.” Yes, you do. You have more than enough time, you just aren’t focusing with the end result in mind. You can only see the pain of reviewing the proposal vs feeling the excitement of being awarded the bid.

13. “I never win.” If you’re not failing, Spring 2007 Texas Jeweler – 23 Sales 24 ie f h bd n h mrig Ad it’s And morning. the in bed the of side Leakage” “Emotional and we cure it this all the time. calls Doctor Telephone building. the inside right it carried he and workhappenedhavemusttogotbefore he isn’t “Yea?” Something Sadbellows out: it? andwhen his phone rings he picks it up and his coworkers; doesn’t come out of his office; down at his desk and starts barking orders sits to anyone; to hello saying without office turnedfrown;downa inwalks through the mouth angry; storming work into comes WE’VE ALL SEEN IT HAPPEN. Emotional Leakage Hey, it’s no fun to get up on the wrong the on up get to Hey,fun it’sno – (GETTING MADAT PETERANDTAKING ITOUTONPAUL) Texas Jeweler A coworker BY NANCYFRIEDMAN,THETELEPHONEDOCTOR The customer or coworker, in most cases, most in coworker, or customer The fair. not than worse even is customers on certainly isn’t fair, then emotionally leaking RUDE canyou get? out on someone who wasn’t involved? emotion How negative a Taking fun. not fair, not right, Not Paul. on out it taking and on move about theirbusiness. and off it shake to able aren’t breakfast. It’s unfortunate that some people before someone with argue to or work to way the on tire flat a get to fun not sure f mtoal laig n coworkers on leaking emotionally If Emotional leakage is getting mad at Peter head to see who was coming or going. (I going. or coming was who see to head her turning kept and answers one-word me gave She cracked. have would face her smiled she if think I fact, In all. at mood good a in not obviously was me helping on thestreets, inthestores. Sad isn’t it? office, the in day.home, At every happens it who unfortunately yet, And wasn’tinvolved. someone on experience negative a leaking emotional than relationship a to damaging and unfair more are things Few them? on out it take why so mood, bad a in you put whatever with wasn’tinvolved While shopping the other day, the person www.texasjewelers.org wasn’t sure.) Normally, I walk out on that type of service. It’s just not worth my time to be treated like that. But this time, I was in a hurry and needed the product. So I did something I don’t normally do. I asked her if every thing was all right? Was she OK? I tried to make it sound as though I was interested (even though I wasn’t.) But I sure didn’t want her negative emotions leaking on me any longer. With a big sigh, and a sad face, she told me she and her boyfriend had a big fight the night before and she was hoping he’d come by and apologize. “Excuse me,” I said, “was I with you?” Believe it or not she smiled and said, “Of course not.” Then I nicely told her, “If I wasn’t there, I don’t want to be part of that argument.” She started to apologize, as well she should. Then I thought about a vase I had once. I dropped it. It broke into several pieces. My husband, Dick, and I talked about whether we should take it somewhere and have a professional put it back together. Dick said, “We can do that if you’d like, but it will never be the same. You’ll always feel the cracks.” And so it is with our coworkers and customers. You can be in a bad mood. Be it an argument, a flat tire or breaking your favorite item. And you can apologize, but people still remember how you treated them. How you made them feel. And they will – for a long time, too. So how do we cure emotional leakage? It’s a quick 4-step process. Stop what you’re doing. Take a deep breath. Put on a phony smile (yes, you can). Regain your professional composure. And then talk with the person – in person or on the MAKE phone. Emotionally leaking on someone is NEVER right. And, of course, there are times when we’ll get emotionally leaked on by others. Think New Ad how you feel when that happens to you. . and then remember to never emotionally leak on others.

Nancy Friedman is president of Telephone Doctor, a customer service training company in St. Louis. Go to www.TelephoneDoctor. com for more information. Winter 2006 Texas Jeweler – 25 Legal 26 your business and give you ideas on how to affect will that law the to in issues time highlight take we why is which busy, are you that way.knowWe the along needed resources and information people, right their businesses and growingthe struggle to find the for passion our share managers Can you afford not to find out? you’rethatnot? doing and aboutthinking Have you asked successful?yourself what moreyour peers companyare your make to made already have companies other that whatcan you do to learn from the mistakes OWNER BUSINESS A AS to this tax year that began January 1, 2007! billtakes effect January 1,2008, and applies companies doing all business for in taxes Texas. in changes This cause new may which andliabilitiescomputing taxfor–method newbill which has significantly changed the THE TEXASMARGINTAX rolls season around for2007! tax when 2008 in unaware caught areyounot that precedenceso take in business Texas every affect may that law tax the to changes recent Year, New the begin we As between. in everything and – disputes to trademarks and estate planning and collections contracts, or employees, to strategies exit from night, at up you keep make thebestuseofthem. e e ta bsns onr and owners business that see We h Txs eiltr rcnl pse a passed recently legislature Texas The that topics the address to is goal Our – Texas Jeweler for tax changes effective in2008. for taxchangeseffective Prepare yourcompanyin2007 Prepare Changes theRules r manager, or New Margin TaxNew Margin w ls ta $,0 i txs r f your total revenue islessthan$300,000. if or taxes in $1,000 than less owe you if apply not will liability.However,it tax business’ your on impact significant dividends, interest and royalties.) frompassive items other than rents, such as that derives 90 percent or more of its income generally is a non-business entity passivetrust not or A partnership tax. this will to subject be entities” “passive as classified other comparable businessentities. than complexities administrative and operational structural, more still having while advantages tax their lose will partnerships limited These laws. current the under as advantages tax same the have limited partnership structure will no longer cumbersome relatively the with entities operating and liabilities tax different have AND YOURBUSINESS HOW THISTAX WILLAFFECTYOU Tax regardless ofitsprofitability level. Margin the pay to required be now may – tax franchise the avoiding thus – past the in profitable very been have company not may a that entities, legal of types all to escape automatically franchise tax liability. However, as it relates to partnerships limited allows longer no bill new this that law new and the franchise tax it replaced is The new Texas Margin Tax can have a have can TaxMarginTexas new The partnerships that noted be should (It As a result of this change businesses may this between difference important An BY CHARLESMOSTER Texas’ YOUR BUSINESS CALCULATING THETAX IMPACT TO regardless of your profitability level. forthe 2007 tax year and you will face taxa percent or 1.0 percent of your taxable margin businesswill incur tax liabilities of either 0.5 tax. margin the as paid is amount resulting The statute. is by entity wholesaler or retailer taxable a as the categorized if applied is rate percent 0.5 a or taxable margin that to rate applied is percent one business’ a calculated, is the margin Once taxable margin. the determine factor to multiplied are apportionment the and gross margin the and receipts, gross Total your of out receipts gross Texas of percentage the is which factor, Texasapportionment the gross margin. is figure resulting The compensation.) for deduction the use to required is it goods, sell not plus does entity the (If of revenues. total employee percent 30 (3) per or benefits; employee $300,000 to up compensation total (2) sold; goods of cost the (1) either: revenue total from deduct to whether choose to able be will entity percent or0.5percent. minus deductions, multiplied by taxable either 1.0 entity’s your margin, which is your entity’s total revenue, determining by otm ie I i vr lkl ta your that likely very is It line: Bottom the compute then will business The your margin, taxable computing When computed be TaxMarginwill new The www.texasjewelers.org RECOMMENDATIONS TO one or both of the past two years. MosterWynne is a peer-recognized full service CONSIDER—ALTERNATIVE Remember: This new margin tax business law firm and “General Counsel” BUSINESS ENTITIES does not take into consideration the to emerging businesses. Based in Austin Where the limited partnership structure profitability of your business. Please take and serving clients throughout Texas and successfully lowered its owner’s tax action by contacting your attorney or CPA nationwide with more than 90 years of liabilities, while still providing limited to determine your projected exposure and collective legal and business experience, we liability protection for nearly a decade, the what you should be doing to protect your have spent a decade helping clients use the new margin tax has erased these benefits. business assets. law as a tool for making business decisions. As a result, the current structure of most limited partnerships is unnecessarily complicated due to the requirement of having a general partner. CORRECTION In order to alleviate this now unnecessary An ad for J. Patrick Diamonds Inc. in the December 2006 issue of Texas Jeweler burden, clients formed as limited included in the incorrect phone number. The correct phone number for J. Patrick partnerships to avoid the franchise tax is (214) 739-0089. We apologize for the error. should consider converting to another type of business entity, such as a Limited Liability Company (LLC) that can better align the benefits of limited liability protection with an easy-to-operate business structure. Furthermore, the new required computation may expose all businesses, regardless of the Electra Steam, Inc. type of legal entity, to different tax liabilities. Manufacturing steam products since 1908! All companies may benefit from proactive 4407 Martinsburg Pike planning for the changes in tax law, based Clear Brook, VA 22624 on the nature of your business and the short- Phone 540-662-3811 Email: [email protected] term and long-term goals of you and your management teams. ASH WHAT’S YOUR ESTIMATED HARDWOOD TEXAS MARGIN TAX? WORK BENCHES With the new Texas Margin Tax, the primary question for any business is this: What is your estimated liability under the new tax law? We encourage you to utilize the online calculator provided by the Texas Comptroller. It is available for you to estimate your upcoming tax liability. Please visit this website to download this helpful tool: www.window.state.tx.us/taxinfo/ franchise/calculator/. We suggest you gather the following before visiting the website: For 2007 Revenue: Pro forma financial statements or estimates for 2007 revenues. For 2007 Deductions: Either (1) Estimated costs of goods sold or (2) Compensation for 2007. Tip: Compensation expense includes wages and employee benefits, but wager over $300,000 for an employee may not be included. Other: Estimate of percentage of 2007 Texas-based operations, and income tax returns if the business suffered losses for Spring 2007 Texas Jeweler – 27 Spotlight 28 Myrtle Beach,SC Myrtle Grand Dunes, Marriott April 13–15 Convention Carolina/SouthNorth Carolina Contact: [email protected] Basel, Switzerland Basel Fairgrounds, April 12–19 – The Watch & Jewellery Show Baselworld Contact: [email protected] Miami Beach,FL Miami BeachConventionCenter, April 14–16 Showcase JIS – Jewelers International AL Birmingham, Hilton PerimeterParkSouthHotel April 14–15 Alabama Convention Contact: [email protected] Tulsa, OK Place, atWarren Doubletree April 14–15 – Spring Seminar Oklahoma Jewelers Association APRIL CALENDAR – Texas Jeweler of events Vicenzaoro2 MAY NY Adam’s MarkHotel,Buffalo, April 26-29 Bench Jewelers Conference & Expo Contact: [email protected] Denver, CO April 25–29 AGS Conclave Contact: [email protected] Chesterfield,MO Doubletree, April 20–22 Conference Association - Annual Leadership Missouri Jewelers & Watch Makers Wynn Resort, LasVegas, NV Resort, Wynn May 30–June4 Couture/Signature Salons Loews Hotel,Annapolis,MD May 20 Convention Tri-State Jewelers Association Contact: vicenzafiera@vicenzafiera.it Italy Vicenza, Fairgrounds, Vicenza May 12–16

JCK Show – Las Vegas JUNE Contact: [email protected] Peabody Hotel, LittleRock,AR August 11–12 Convention Arkansas Jewelers Association AUGUST Contact: [email protected] New York, NY Jacob JavitsConventionCenter, July 29–August1 JA New York New York, NY Park, The Ritz-CarltonBattery July 28 Association Dinner New York State Jewelers July 19–22 Saltwater Seminar – Alabama JULY Golden Moon Hotel, Philadelphia, MS June 9–11 Mississippi JewelersAssociation Contact: [email protected] Las Vegas, NV Sands Expo&ConventionCenter, June 1–5 www.texasjewelers.org

Atlanta Jewelry Show Intermountain Jewelers Convention August 11 – 13 September 28 – 30 CLASSIFIED Cobb Galleria Centre, Atlanta, GA Boise, ID Contact: info@atlantajewelryshow. com SALES REPRESENTATIVE OCTOBER Nebraska/South Dakota Jewelers Kansas Jewelers Association Association – Leadership – Annual Leadership Conference Conference October 12 – 14 August 17 – 19 Grand Prairie Hotel, Hutchinson, KS Holiday Inn, Kearney, NE Contact: [email protected] Contact: [email protected] Missouri Jewelers & Watch Makers Columbus Jewelry Show Association – Fall Seminar August 25 – 26 October 20 – 21 Great Columbus Convention Center, The Resort at Port Arrowhead, Lake Columbus, OH Ozark, MO Watch manufacturer with multiple Contact: [email protected] brands seeks sales rep. with Minnesota/North Dakota established customer base SEPTEMBER Convention servicing the independent jeweler Southwest Jewelry Show October 27 – 28 for the TOLA territory. September 8 – 10 Excellent customer service & Gaylord Texan Resort JA Special Delivery Show support Non-conflicting & Convention Center October 28 – 30 lines permitted. Jacob Javits Convention Center West Coast Jewelry Show New York, NY Fax resume in confidence September 9 –10 Contact: [email protected] to (973) 882-6463 Anaheim Convention Center, Attn: Elliott Miller, Anaheim, CA VP Sales or e-mail to [email protected] OroGemma September 9 – 13 Vicenza, Italy Contact: vicenzafiera@vicenzafiera.it

Oklahoma Jewelers Association – Leadership Conference September 28 – 30 Embassy Suites, Oklahoma City, OK Contact: [email protected]

Texas Jewelers Association September 28 – 30 Hilton Galveston Island Resort, Galveston, TX

Virginia Jewelers Association September 28 – 30 Omni Hotel, Richmond, VA

Spring 2007 Texas Jeweler – 29 Jewelry Take in Procedures, Part 1

BY ARTHUR ANTON SKURATOWICZ ICGA, GJG (GIA), SENIOR MEMBER NAJA & JULIE NASH ASA, GJG (GIA), MASTER GEMOLOGIST APPRAISER Expert Tips

TAKE IN PROCEDURES HAVE NEVER While using magnification to inspect a decision to repair is made. been more important than in today’s piece of customer’s jewelry, ask yourself the d. Is the repair feasible? Retipping environment of synthetic and imitation following questions: diamond pavé in 14KT gold may be practical gemstones and increasing customer a. What, if anything, needs repair? and cost effective while retipping emerald concern with the safety of their jewelry. Five Pay particular attention to prongs for pavé would require removal of all stones and factors are critical in maintaining customer appropriate height and contact with stones may prove more costly than the original piece confidence in your store and protecting your (figure 1). Shanks, clasps and bails should of jewelry. These situations must be clearly store’s reputation. Appropriate procedure be examined for thickness and wear. explained to the customer in order for them to can be achieved by asking yourself a series b. Are all stones tight in their settings? make informed decisions about their jewelry of questions as you go through the process This can easily be determined by grasping and keep you and your store from appearing of taking in an item of jewelry. each stone by the girdle in fine pointed unknowledgeable or unscrupulous. tweezers and twisting right to left and e. Has the jewelry been previously PART 1 OF 4 pushing up and down. Doing this under repaired? Recognition of previous sizings Inspection: Using a minimum of 10X a microscope is a good way to point out or prong repairs may dictate the type and magnification is the standard in the jewelry loose stones to the customer. cost of the current repair. For example, industry. A loupe is typically used, but c. Is the discovered problem repairable? worn prongs can usually be retipped while realize some characteristics are apparent only This question may have obvious answers previously retipped prongs that are worn with higher magnification and controlled in the case of re-shankings or re-tippings, may require replacement of the head. lighting. Using the right equipment is not but problems such as extensive cracks in Multiple previous sizings may best be dealt enough. You have to be proficient in its use a previously repaired gallery may need with by partially re-shanking to avoid and this means practicing constantly. the input of your bench jeweler before a fragmentation of the ring shank. f. Is there risk associated with the repair? Certain delicate stones, like emerald Ad Index or opal, may be damaged by heat or need to be removed from settings in order to Advertiser index repair a piece of jewelry. Heat and pickling Covenant Financial ...... 13 chemicals may change or damage the patina DAW Trading Co. Inc...... 25 of antique or silver pieces. Informing the Federated Insurance...... Back Cover customer of any possible damage that may Gemark Alloy Refining Corp...... 29 result from the repair during take in will Helen Cole...... 25 go far toward avoiding a disappointed International School of Gemology ...... 21 customer at pick up. J. Patrick Diamonds Inc...... 23 Jewelers Mutual ...... Inside Front Cover Arthur Anton Skuratowicz & Julie Nash are co- LaserStar Technologies Corp...... 15 authors of the book: Working With Gemstones: One Service ...... 21 A Bench Jeweler’s Guide. This book deals Reimers Electra Steam Inc...... 27 with handling issues a jeweler addresses while working with gemstones at the bench. They are Roseco Inc...... 9 also co-owners of The Jewelry Training Center SB&T Imports ...... 19 Inc., a jewelry trade school in Colorado Springs, Tara Energy ...... 17 CO. The JTC offers the experienced jeweler the Texas Institute of Jewelry Technology ...... 29 ability to update their skills while offering the Time Delay...... Inside Back Cover newer generation of jewelers a place to develop WinJewel Software ...... 8 their bench techniques. For more information, visit www.JewelryTrainingCenter.com or call

30 – Texas Jeweler www.texasjewelers.org

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