The JA 2008 Cost of Doing Business Survey, which analyzes member

stores’ financial data from 2007, is now available. Jewelers of America released the Survey early this year, and included a supplementary analysis by industry analyst Ken Gassman, which reviews the status of specialty jewelers in the U.S., based on Survey data.

The Survey, which compiles data from a cross-section of jewelers, is crucial to jewelry retailers understanding of their businesses. “Reviewing Jewelers of America’s 2008 Cost of Doing Business Survey can help retail jewelers generate greater profits,” says JA Director of Education David Peters, “because it helps storeowners better understand the basic measures used to gauge the performance of a business.”

The Survey represents the most complete and historical comparative financial information available to specialty jewelers in the U.S. The 2008 Survey includes results from independent high-end firms (22.6%), independent mid-range firms (36.5%), jewelry chains (7%) and designer/custom jewelers (11.8%).

HigH Profit vs. Low ProfitRetailers, who use the JA 2008 Cost of Doing

Business Survey to benchmark their business performance, will see that effective management can make the difference between a high-profit and a low-profit firm.

While high-profit stores in 2007 did not have greater sales per store ($1,179,108 on average, compared to $1,214,544 for low-profit stores), they did have higher sales per full-time employee, with lower payroll and operating expenses. In fact, high-profit retailers spent 6.5% less on total operating expenses than low-profit companies. Also, high-profit

stores had a 20% greater inventory turnover than low-profit firms [See Chart].

“The survey allows retailers to compare their store’s performance with industry averages. You can quickly identify your strengths and weaknesses and develop strategic action plans to support future growth and improvements,” explains Peters.

saLes growtH & ProfitFor Jewelers of America

members, 2007 produced mixed results. There was growth among designer/custom, independent high-end and chain retailers; while mid-range independents saw real declines.

Overall growth was essentially flat for the first time since 2001 and 2002, coming in at -0.3% on average (down from a 4.1% increase in 2006). Designer/custom retailers fared best with a 6.1% sales increase over 2006. Independent high-end retailers saw growth of 3.5%, but that was down from 2006, when the category was up 7.4%. Chain stores experienced 2.5% sales growth, while mid-range retailers were down 1.7% compared to 2006 sales.

Profitability was down in 2007, with specialty retailers experiencing a median 4.6% net profit as a percent of net sales compared to last year’s 5.3%. Gross margins were 48.7%, down from an increase of 49.1% in 2006. Results once again varied by type of specialty jeweler, with independent high-end retailers seeing their margins improve

reportSurvey includes new supplemental analysis by industry expert Ken Gassman;

overall growth was flat for first time since 2001

2008 Cost of Doing Business Survey Released

ROUTING BOX:Be sure to initial and pass on

among store staff.

Jewelers of America: Education, Professionalism, Responsible Business Practices

Fall 2008

Volume 12, No. 3

The Jin tHe news 2Burmese Gem Bill Passed

MeMber benefits 3-4Annie Doresca Joins JA

New Board Director

JA Recovery Network for Flood Victims

New Free E-Newsletter

education 5JBT Credit Series

AML Compliance Review

PubLic affairs 62008 Legislative Update

JAPAC Fundraising

JA Retailers Tout Responsibility at JCK

affiLiate news 7AJA Honors Loyd Stanley

JA Remembers Philip Nelson

Upcoming Events

Inside

The Cost of Doing Business Survey 2008 Edit ion | 2007 Results Pub l i shed by Jewe le r s o f Amer i c a

$95,000. RENT $75,500.

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Continued on Page 2

These two charts need to be edited to fit in the article.

Chart 1.

Performance Measure High-Profit Firms Low-Profit Firms EBIT to Total Assets 13.8% 2.7%

Net Profit Before Taxes to Net Sales 8.7% 0.8%

Asset Turnover (net sales/total assets) 1.6X 1.4X

Inventory Turnover 1.2X 1.0X

Sales Per Square Foot – Total $556.25 $609.58

Sales Per Full Time Employee $251,643 $238,500

Sales Growth 2.8% -1.0%

Total Debt to Total Assets 41.7% 48.9%

Current Ratio 3.6 2.9

Sales Per Store $1,179,108 $1,214,544

Store Size 1,775 2,200

Chart 2

[ 2 ] Fall 2008 The J Report www.jewelers.org

the industry hit its ‘high water’ mark in 2006, and the tide began to recede in 2007, a trend that continues today,” he says.

Gassman’s analysis not only looks at this year’s numbers, but also offers a historical perspective – looking back at the JA 1998 Cost of Doing Business Survey (which reviewed 1997 data). “Ten years ago, jewelers’ gross margins were lower; their stores were large, inefficient…and, sales per store were a fraction of current levels,” he notes.

Order your 2008 Cost of Doing Business Survey from www.jewelers.org or call 800-223-0673. Cost is $24.95 for members, and $150.00 for non-members.

slightly to 45.2% (versus 42.9% in 2006), while chains and designer/custom firms were pressured by lower margins. Gross margins at independent mid-range stores were steady from year to year.

sHare of saLesThe distribution of sales remain

consistent. The top three jewelry categories were diamonds (loose and set) at 52% of sales, colored stone jewelry (10%) and karat gold (8%). It is interesting to note that repair sales continue to be important, bringing in 11% of sales, up 1% from 2006. Therefore, having a skilled bench jeweler in your store is a key differentiator.

tHe new anaLysisThe 2008 Cost of Doing Business

Survey: An Analysis, by Ken Gassman of the Jewelry Industry Research Institute, will be included with each purchased Survey. It is designed to provide greater insights to the Survey’s usefulness for retailers.

In his analysis, Gassman observes that while financial results for 2007 were less robust, the business is cyclical. “It wasn’t a bad year in 2007; rather, it was clear that

Chairman John GreenLux Bond & Green, Inc., West Hartford, CT

Chairman-Elect Terry BurmanSterling, Inc., Akron, OH

Vice-Chair Georgie GleimGleim the Jeweler, Palo Alto, CA

Vice-Chair Michael J. KowalskiTiffany, New York, NY

Treasurer Vicki Cunningham Cunningham Fine Jewelry, Tulsa, OK

Secretary Michael L. WhiteWhite’s Jewelers, Springfield, TN

Regional Director Jeffrey CoreyDays Jewelers, Waterville, ME

Marvin BeasleyHelzberg Diamonds, North Kansas City, MO

Artie BennosSimms II Jewelers, Winchester, MA

Jon BridgeBen Bridge Jeweler, Seattle, WA

Scot CongressCongress Jewelers, Sanibel Island, FL

Frédéric de NarpCartier, New York, NY

Peter EngelFred Meyer Jewelers, Portland, OR

William Farmer, Jr.Farmer’s Jewelry, Lexington, KY

John HayesGoodman’s Jewelers, Madison, WI

Barbara Hight-RandallHight & Randall, Ltd., Rochester, MN

Woody JusticeJustice Jewelers, Springfield, MO

Bill Koen Joe Koen & Son Jewelers, Austin, TX

William Nichols, Jr.Reis-Nichols, Inc., Indianapolis, IN

Steve RobbinsRobbins Bros., Glendale, CA

Hank SiegelHamilton Jewelers, Lawrenceville, NJ

Holly Wesche-ConnWesche Jewelers, Melbourne, FL

Matthew A. Runci, President & CEOPeggy Jo Donahue, Director of Public Affairs

David Peters, Director of Education

Susan Thea Posnock, Writer, The J ReportLauren Thompson, Editor, The J Report

Orasa Weldon, Art Director, The J Report

In the News | Cost of Doing Business Survey, Burma Bill Passed

JA B

oard

of D

irect

ors

Bill Banning Burmese Gemstones PassedPresident Bush signs Tom Lantos Block Burmese JADE Act of 2008

In July, the U.S. Congress passed, and President Bush signed, legislation that

prohibits the importation of Burmese jadeite and rubies, and

jewelry containing those gemstones. The bill is entitled Tom Lantos Block Burmese JADE (Junta’s Anti-Democratic Efforts) Act of 2008. [For more information, see the “Legislative Update” on page 5.]

In light of this development, Jewelers of America is reminding members of the advisory it released last fall. As President & CEO Matthew Runci said last October, members of Jewelers of America, “believe it is their responsibility to support and respect the protection of international human rights within their sphere of influence and to make sure the sourcing of gemstones is not complicit in human rights abuses, in line with the commitments they assume to the

association’s Statement of Principles.” Some of the steps Jewelers of America

asked members to take include contacting their suppliers to ascertain whether any of the gems they supplied were from Burma.

The association also urges members to seek, on all future orders placed, written assurances from their suppliers that they would not knowingly supply any gems mined in Burma, until the process of democratic reform had started in that country.

Members can review the complete Statement of Principles at JA’s website: www.jewelers.org/aboutJA/responsibility.html. More information on Burmese gemstones is also available at the online Member section, in the “Colored Gemstone” section of the Responsible Business Practices webpage: www. jewelers.org/members/profguidance.asp.

2008 Cost of Doing Business Survey [cont.]

Industry expert Ken Gassman’s complete analysis (pic-tured) of the 2008 Cost of Doing Busi-ness Survey, is included free with your pur-chased Survey.

The J Report Fall 2008 [ 3 ]

Finance Director Hired, New JA Board Director, JA Recovery Network| Member Benefits

JA Appoints New Finance DirectorAnnie E. Doresca joins the organization as director of finance & administration

Jewelers of America has appointed Annie E. Doresca to the newly created position of director of finance &

administration. Doresca will have overall responsibility for the association’s finance and accounting, office management, human resources and IT functions.

“I’m pleased to welcome Annie Doresca,” says JA President and CEO Matthew A. Runci. “She has a diverse background and a proven track record with experience at both nonprofit and for-profit institutions. She’ll be a great addition to the Jewelers of America team.”

Most recently, Doresca served as client manager and chief financial officer for BTQ Financial, a leading outsourcing provider of financial services to not-for-profit organizations, based in New York City. During her tenure at BTQ, Doresca was responsible for several multi-million dollar clients, developed and implemented financial operations improvements and helped to shape the strategic direction of the company.

Prior to BTQ Financial, she was manager, advisory services, for Nonprofit Finance Fund, a national leader in helping nonprofits strengthen their financial

health. Her responsibilities included the facilitation of communication among key stakeholders, including nonprofit senior management and board of directors, and the development and implementation of marketing strategies. Previously, Doresca served as an intermediate analyst for Goldman Sachs & Co. in New York. Additionally, she co-founded Imani Greenhouse, Inc., a Brooklyn, NY-based nonprofit, where she offered guidance and resources to assist youth in acquiring skills to become productive adults.

Doresca succeeds David Lafleur, who resigned his position as Jewelers of America’s vice president in June, to become director of finance and administration for Living Cities, the National Community Development Initiative, a consortium of the nation’s leading foundations, dedicated to revitalizing America’s cities. “We thank David for his outstanding service to Jewelers of America, and we wish him well at his new post,” says Runci.

Annie Doresca can be reached at 646-658-5816 or adoresca@jewelers.org.

JA Recovery Network: Mississippi River Floods

The recent flooding in the Midwest prompted the Iowa Jewelers Association to reach out to Jewelers of America’s Recovery Network to help affected jewelers in the flood damaged areas.

According to IJA Executive Director, Nancy Fischer, high waters in downtown Cedar Rapids have impacted some member jeweler stores. In some cases, these stores were totally destroyed.

Jewelers of America sent out a notice through its new Thriving in 2008 e-newsletter asking for donations from member jewelers. If you have any items you can donate or would like to offer other ways to help flood-affected jewelers, please contact the Iowa Jewelers Association Office at 800-669-8547 or email at info@IAjewelers.org.

Iowa Jewelers Association reaches out to help jewelers in need

JA Welcomes New Board DirectorHolly Wesche Conn replaces Esther Fortunoff, whose term has ended

Jewelers of America held a Board of Directors meeting on Saturday, July 26, at the Yale Club in New York City. During the meeting, the Board welcomed Holly Wesche Conn as a new Board Director, replacing Esther Fortunoff, whose term has ended.

The Board honored Fortunoff at the meeting, with a plaque to commemorate her dedication to Jewelers of America. “Esther has been a loyal and active board member and we hope to keep her involved in our committee work in the future,” says JA President & CEO Matthew A. Runci.

Holly Wesche Conn is owner of Wesche Jewelers in Melbourne, FL. She joined the family business in 1985, as a sales associate and worked closely with her father, James A. Wesche, on all areas of the business.

Wesche Conn has helped Wesche

Jewelers grow into the largest independent jeweler in its county. In 2006, she moved the store into a new 15,000 square-foot building, which was designed especially for experience marketing.

Wesche Conn is considered an expert in retail marketing and is often featured as a key speaker at industry events, discussing how she has successfully updated Wesche Jewelers to attract the modern consumer.

“I am pleased to welcome Holly to the JA Board,” says JA Board Chairman John Green. “Her active participation throughout the industry will greatly add to our already diverse board.”

Wesche Conn will serve on the Board through 2011.

For a complete list of JA’s current Board of Directors, visit www. jewelers.org/aboutJA/board.html.

“I’m pleased to welcome Annie

Doresca. She has a diverse back-ground and a proven track

record.... She’ll be a great addition to the

Jewelers of America team.”

- Matthew A. Runci, JA President & CEO

[ 4 ] Fall 2008 The J Report www.jewelers.org

Pricing Repairs for ProfitabilityRising precious metals costs and growing pressures to increase your store’s service department productivity have made accurate pricing of repairs crucial to your bottom-line success.

You can increase your service department profits by using a professional repair pricing guide.

Tom Weishaar, JA Certified Master Bench Jeweler with Underwood’s Fine Jewelers, Fayetteville, AR, led a session at JA New York Summer Show on “Pricing Repairs for Prof itability: How to Develop a Comprehensive Repair Pricing Guide.”

He offers these tips on how to increase repair profitability:Profits from repair work are made at the take-in counter, not at the bench.•When it comes to repair work, customers value quality more than price.•A professionally written estimate removes discounting from pricing repair work.•Your repair pricing guide may be a customer’s f irst introduction to your store; it •should look as good as the jewelry in your display cases.Every repair job that is promised for that day needs to be completed, polished, •inspected and wrapped for presentation before your store opens for business.

Take The Tip:Jewelers of America members can get more ideas on how to sell repairs by •reviewing Jewelers of America’s Counter Points f ive-part series, “Understanding & Communicating Jewelry Repairs,” by JA Director of Education David Peters. Counter Points are published in the JA newsletter, The J Report, and they are archived in the Members section of JA’s website, www.jewelers.org.Start Thriving! Sign Up for

the Weekly E-Newsletter

All jewelers can sign up to receive the free Thriving in 2008 e-newsletter at Jewelers of America’s homepage,www.jewelers.org, where they can also link directly to the Thriving in 2008 site (http://tips.jewelers.org).

At the microsite, Jewelers can view past tips archived by topic to quickly find ideas that fit their immediate needs.

Have a tip or strategy you’d like to share? Send your tip to sposnock@jewelers.org and get featured on the site and in the weekly e-Newsletter.

Keep an Eye on InventoryInventory turn is a key differentiation point between high-profit and low-profit jewelers. This fact is demonstrated by

the 2008 Jewelers of America Cost of Doing Business Survey, which found high-profit stores had a 20% greater inventory turnover than their low-profit counterparts. That translates to better sales growth too!

With that in mind, it’s essential that you know what inventory’s moving, and what’s collecting dust. Jewelers of America’s Director of Education David Peters offers simple tips for keeping an eye on your inventory.

How to Thrive in Inventory:Code the in-stock date of the tag of every item in your store. That way you can •quickly identify older merchandise.Pull inventory aging reports monthly and take action on any merchandise that is •moving slowly.Always, always, always know what your fastest sellers are, and keep them in stock.•

Take The Tip:Check out our recent inventory tips, in the “Inventory” category.•Use the • Cost of Doing Business Survey to see how your inventory management compares to your high-profit colleagues in the industry. The 2008 Cost of Doing Business Survey is now available, order it online at www.jewelers.org.

In our last J Report, we announced the launch of Jewelers of America’s new “Thriving in 2008” online daily tip microsite and free e-newsletter. The tips, created in response to retail jewelers’ concerns about economic conditions, are now reaching thousands of jewelers weekly.

With each “Thriving in 2008” e-newsletter, jewelers receive five business-building tips, on a variety of topics, designed to be quick and actionable for in-store improvement.

For those of you who haven’t yet visited the “Thriving in 2008” daily tip website at http://tips.jewelers.org, or are not taking advantage of the free e-newsletter, we’ve included two of our most popular tips from recent e-newsletters at right. When you read the “Thriving in 2008” e-newsletter, you can improve your business with expert tips like these.

Member Benefits | “Thriving in 2008” Daily Tips and E-Newsletter

Jewelers Are THRIVING IN 2008 With JA TipsLooking for ways to grow profits? Take advantage of business-building tips in free weekly E-Newsletter

From: Jewelers of America [lthompson@jewelers.ccsend.com] on behalf of Jewelers of America [members@jewelers.org]Sent: Friday, June 20, 2008 5:05 PM To: Lauren Thompson Subject: Jewelers of America Newsletter: Tips for Retail Jewelers

Jewelers of America, Thriving in 2008 Newsletter, Issue 7

In addition to the excellent tips in this week's "Thriving in 2008" newsletter, our tips on merchandising -- how to get the right mix and price points -- will help you keep jewelry moving throughout the summer.

Tip: Mix it up for Better MarginsMixing your merchandise to its full potential can have a major impact on your business.

Last week, we wrote about the importance of efficient management and how to take the first steps toward increasing your store's sales per square foot. According to the 2007 Jewelers of America Cost of Doing Business Survey, this statistic is a key differentiator between high-profit and low-profit stores. Jewelers of America's Director

of Education David Peters shares advice on evaluating your merchandise mix and margins in order to increase your sales per square foot.

His Tips to Thrive with Merchandise Mix:

● Enlarge more profitable departments and decrease assortment sizes in less profitable ones.

● Focus on hard-to-shop and more profitable merchandise like pearls, colored gemstones and custom-made pieces.

Click for more tips on how to thrive with merchandise mix...

In This Issue

Merchandise Mix Tip

Price Points Tip

Reputation Tip

Business-Building Tip

Working with the Web Tip

Increase ProfitsCheck our Daily Tips at

Thriving in 2008:

tips.jewelers.org

*In-store Strategies updated daily

*Tip Archive

*Retailer Profiles

The J Report Fall 2008 [ 5 ]

The last installment of our three-part series on credit reporting discusses how JBT determines your credit rating

Now that you know how to use JBT to review suppliers and why it’s important as a retailer to be listed with good credit in the JBT database, you should understand how JBT credit ratings are determined and how you can impact the rating for your company.

Every day, JBT investigators compile and update business and financial information on the companies in their database to provide the necessary background data to determine credit ratings. These ratings, published weekly, and are considered by JBT members to qualify new accounts and monitor existing customer relationships.

Payment scores, from 0-4, are assigned to all accounts. Scores of 1-4 indicate paying habits of “prompt” to “slow.” A payment score of “0” indicates “no basis for pay rating,” which could refer to any circumstance that prevents JBT from assigning a payment score, like insufficient trade references on file, the company is too new to rate or is currently in bankruptcy. Collection claims placed by members with JBT may also be considered.

There are several ways a retailer can influence his or her credit ratings. The longer you have been in business, the better. JBT requires three years of consecutive financial statements to consider the assignment of a capital (financial strength) rating. JBT also reviews the backgrounds of owners and key managers to uncover any past financial problems or unpaid obligations that could indicate a risk for a supplier. JBT checks public records and other information resources for supplemental information, and researches its database for a retailer’s recent payment track record to the vendor community.

Using the available background and payment information on a company, JBT creates a company report, which members use to help make decisions on whether to extend credit to the listed company. The more complete information retailers provide, the more qualified their company becomes. JBT-listed companies are mailed an update form at least once each year, retailers who decline to give information may send a red flag to JBT members considering credit lines. It’s important to respond to JBT’s update requests to keep both JBT and your suppliers updated on key developments in your company. Sound credit practices will benefit you now and in the future.

For more information on Jewelers Board of Trade, visit www.jbt.org.

JBT Credit Series, AML Compliance Program | Education

Due to the current economic climate and the rise in commodity prices, many jewelers are buying more goods from the public than in the

past. This could have a direct effect on the need for a store Anti-Money Laundering (AML) compliance program. Review the following information to ensure that your store is compliant with the U.S. Patriot Act.

are you a “deaLer” as defined in tHe u.s. Patriot act?A “dealer” is defined as any person or company who annually purchases and sells more than $50,000 in covered goods (precious metals, precious stones, jewels, or finished goods deriving more than 50% of their value from precious metals, stones or jewels) unless one of two important exclusions are met. Those that meet these exclusions are exempt from creating an AML program.

excLusion 1:If you only purchase from domestic dealers (wholesalers, manufacturers, importers, etc.) or from foreign dealers that have a physical presence in the United States you are fully exempt.

In most cases, this requirement should be satisfied by obtaining written assurances that a supplier is either a domestic dealer or retailer. Jewelers of America strongly encourages all of its retail members to only deal with suppliers willing to provide appropriate written assurances on all invoices.

excLusion 2:You are exempt from all compliance obligations if you purchase no more than $50,000 of covered goods from the general public. Trade-ins, as long as the customer does not receive cash or a cash equivalent back, are excluded from this $50,000 amount.

.....:wHat to do if you’re not exeMPt:.....

As a retailer, there are several basic steps you must take in order to meet with AML compliance requirements:

1. Develop and institute policies, procedures, and internal controls based on a risk assessment of your business, as it relates to situations where money laundering may occur. Additionally, you must ensure your store’s compliance with the U.S. Bank Secrecy Act (BSA) when appropriate, and you must respond appropriately to transactions that may involve money laundering.

2. Designate a compliance officer within your company to ensure program monitoring and compliance and the training of employees.

3. Provide ongoing education and training of appropriate personnel regarding AML programs in your store.

4. Provide for independent testing (someone not involved in the operation of your AML program) to monitor and maintain the program on a regular basis. All aspects of compliance procedures must be documented, not just the written policies, procedures and internal controls. This means that items like when employees receive training and when independent monitoring occurs must be tracked and logged in some formal manner.

Jewelers of America has a complete AML Guide for members, from which this information was excerpted. JA Members can download it from the Members section of the website, www.jewelers.org. The Jewelers Vigilance Committee also has a program to help develop AML programs, visit www.jvclegal.org for more information.

Are You AML Compliant? Jewelers are buying back more goods from the public, increasing their need to develop an Anti-Money Laundering program

Extra Credit: Part 3

[ 6 ] Fall 2008 The J Report www.jewelers.org

Jewelers of America held an Executive Roundtable entitled “Retailer-Supplier Relationships: Changing Expectations,” at the JCK Show, Las Vegas, on Saturday, May 31.

It discussed how retailers can differentiate themselves among today’s consumers, by embracing responsible practices and encouraging their suppliers to do so as well.

The two retailers on the panel were JA Board Director John Hayes, owner of Goodman Jewelers, Madison, WI, and Kathe Mai, a partner in Trios’ Studios in Lake Oswego, OR. Both retailers shared examples of responsible business promotions they’ve sponsored, which have attracted customers and set them apart from other jewelers.

Hayes pointed out the importance of staying aware and informed as a retailer. “I have the integrity of our 75 years in business to protect,” he said. His store – located within blocks of the University of Wisconsin – has felt the influence of younger customers, who ask questions about the origin of Goodman’s gold and diamonds. A

key tool Hayes uses to remain informed

is the guidance material provided by

Jewelers of America. These issue-based guidance documents empower his staff to educate their customers, increasing confidence in purchases.

Hayes added that the store’s membership in the Council for Responsible Jewellery Practices (CRJP) has set it apart. “When you do the right things people will notice and it will build your business,” he said.

At Trios’ Studios, Mai sells responsibly produced gemstones sourced from Columbia Gem House and its jewelry manufacturing division, Trigem Designs. Mai has seen her customer base grow, as people seek out her store based on her commitment to responsible jewelry. “It’s not just a marketing tool,” she said. “It’s a commitment to living and doing business by the fair-trade model.”

JA Director of Public Affairs Peggy Jo Donahue chaired the roundtable discussion. Attendees also heard from Cecilia Gardner, president, CEO and general counsel, Jewelers Vigilance Committee; Michael Rae, CEO, CRJP; and John Hall, general manager, external relations, Rio Tinto Diamonds.

In the midst of a Presidential election year, the 110th Congress pushed through a key legislative measure that will impact retail jewelers in the U.S.

The Tom Lantos Block Burmese JADE (Junta’s Anti-Democratic Efforts) Act of 2008 was signed into law by President George W. Bush on July 30, 2008. The law prohibits the importation of jadeite, rubies and jewelry containing those gemstones, which are mined in Burma (Myanmar). [More details on page 2.]

otHer Pending issues:saLes tax fairness Jewelers of America maintains an aggressive posture on this issue, and it will be a vocal leader in the fight to level the playing field between traditional bricks-and-mortar businesses and their online counterparts. With that in mind, JA continues to push for the swift passage of the Sales Tax Fairness and Simplification Act. However, a tight legislative calendar and election-year politics could postpone the legislation until next year.

In an interesting state development, New York State passed a new law in April that requires online retailers to collect sales tax on shipments to state residents, as part of its state budget. In early May, online retailer Amazon.com sued the state, challenging the constitutionality of the new law, which went into effect on June 1. Another e-tailer, Overstock.com, also challenged the law.

extension of dePreciation on LeaseHoLd iMProveMents Making store improvements on a frequent basis is crucial to jewelers remaining competitive, and Jewelers of America continues to work to extend this important depreciation measure. It enables jewelers to continue to write-off improvements on rented stores over a period of 15 years, instead of 39, and was part of a tax “extenders” package that expired last year. Congress is currently working to renew these extenders for 2008 and 2009. This process will likely continue through the fall.

Mining Law reforM Jewelers of America pressed members of the House of Representatives to vote affirm-atively for H.R. 2262, The Hardrock Mining and Reclamation Act of 2007, which passed on Oct. 31, 2007. This bill is designed to reform and update the Mining Law of 1872.

The bill then moved to the Senate. In January, the Senate Energy and Natural Resources Committee held a mining reform hearing, during which changes to the bill were discussed. In April, a bipartisan group of 10 senators sent a letter to the Senate Energy and Natural Resources Committee, which urged reform to go forward.

Despite these actions, the Senate has yet to introduce its version of a mining reform bill. A Senate committee spokesperson acknowledged that work on drafting a bill has been extensive and ongoing, but that the election year legislative calendar makes progress a challenge.

Public Affairs | Legislative Update, JAPAC Fundraising, JA Roundtable Round-Up

Key legislative issues that will impact retail jewelers

Stay tuned for updates on JAPAC’s fundraising efforts and the issues JAPAC hopes to inf luence. To learn more, get involved or donate, visit www.jewelers.org and click on Public Affairs.

JA Roundtable at JCK Show: Retailers Tout Responsibility

2008 Legislative Update

JAPAC Committed to Fundraising Having a voice in government is critical in these challenging economic times, when legislation can have a direct impact on jewelers’ bottom-lines. Therefore, the Board of Directors of JAPAC, JA’s political action committee, is continuing its commitment to ehance fundraising for. In July, the Board met with fundraising consultant Erin Delullo Lewis to develop a fundraising strategy, which will expand the industry’s influence on Capitol Hill.

The J Report Fall 2008 [ 7 ]

Jewelers, who is Treasurer of IJA. In 2004, IJA celebrated Nelson and Kay’s years of dedication to the association by honoring them with a “Lifetime Achievement Award.” Nelson was also a member of the Indiana Watchmakers Association.

The jeweler also gave generously of his time to his local community. He was a member of Brownsburg Chamber of Commerce, Brownsburg Lions Club, Park Board, Jaycees and Kiwanis. He was a USAF veteran of the Korean War.

Survivors include sons, Jeff, Jay, Philip, and daughter Stephanie Nelson-Jones; eight grandchildren and one great-grandchild.

Nelson requested in lieu of flowers, that donations be made to The Myositis Association. 1233 20th St. NW, Suite 402, Washington, DC 20036, www.myositis.org. Myositis limited his mobility the last years of his life.

On July 25, 2008, Jewelers of America member Philip E. Nelson, founder of Nelson Jewelers, Inc., Brownsburg, IN, passed away at age 76. Nelson was

known to family and friends as “a man with a heart of gold.” He left his friends and family with a message to “only do better than your best,” something he aspired to throughout his life.

Nelson entered the jewelry industry in 1958, when, along with his wife Kay, he founded Nelson Jewelers, Inc. He participated fully in the industry, earning his Registered Jeweler title from the American Gem Society in 1964. He was active member of the Indiana Jewelers Association (IJA), a value he passed on to his son Jeff, current owner of Nelson

AJA Honors Stanley, Tribute to Philip Nelson, Upcoming Events | Affiliate News

SEPTEMBER

VincenzaOro AutumnVicenza Fairgrounds, Vicenza, Italy

September 15 – 19

Pacific Northwest ConventionHilton Seattle Airport, Seattle, WA

September 21

Oklahoma Jewelers Association Leadership Conference & Convention

Embassy Suites, Oklahoma City, OKSeptember 19 – 21

Georgia Jewelers AssociationBrasstown Valley Resort,

Young Harris, GASeptember 19 – 21

For a full list of upcoming events, updated regularly, visit

www.jewelers.org/aboutja/events.html

Upcoming EventsPhilip Nelson, 76, IJA Lifetime Award Winner

AJA Honors Loyd StanleyOwner of Stanley Jewelers Gemologists Inc. honored with Lifetime Achievement Award

Jewelry veteran Loyd Stanley, owner of Stanley Jewelers Gemologists Inc. in North Little Rock, AR, was presented

with the Lifetime Achievement Award from the Arkansas Jewelers Association (AJA) on August 16, during the association’s annual awards banquet.

“The AJA Board could find no-one more deserving than Loyd Stanley for this special honor,” said AJA Executive Director Janisue Rigel. “We look for an individual who has contributed supremely throughout life to the jewelry industry in Arkansas; someone who, by unselfish dedication and professionalism, has established traditions of ethics and has set the standards by which others are measured.”

This is just the third time the award has been bestowed on an AJA member since 1947.

The honor befits Stanley, who has had a long and illustrious career. Like so many jewelers, he followed his parents into the business. His father, Charles Stanley,

began his jewelry career as a watchmaker at a drug store and opened Stanley Jewelers, with his wife Sally, in 1936.

After joining the family business in 1959, Loyd Stanley quickly enhanced his jewelry education, getting certifications from the Gemological Institute of America (GIA) and the American Gem Society (AGS). He went on to become the first Graduate Gemologist in the Central Arkansas area.

Stanley has been a leader in the jewelry industry. He was an early member of the Arkansas Retail Jewelers Association, before it became AJA, and served as president of the association from 1973 to 1975. He also served as president of the Southwest Guild of AGS in 1986, and was named Arkansas Jeweler of the Year in 1985. Over the years, he has also served on a variety of community organizations.

His daughter Caroline Stanley calls her dad an ambassador for the industry – guiding and encouraging those who’ve worked for him with his ethics and professionalism. She has her own marketing firm and has co-authored

a book about jewelry for consumers. Daughter Laura Stanley works at the store and is involved with the jewelry community on a local and national level. Stanley’s son, Stephen, also works full-time at the family store.

Despite his lifetime dedication to jewelry, Stanley’s entrepreneurial spirit has led him to dabble in other areas along the way. In the mid-1970s, he invented a jewelry camera and was able to market and sell thousands of units through a separate company, Research Marketing. He’s an avid photographer who has taken diamond photographs for a book about Murfreesboro diamonds, which come from Crater of Diamonds State Park in Arkansas, the state’s own diamond mine.

Stanley, who lives with his wife Kaye and their cat in Little Rock, said he was humbled by the honor. “I can think of no greater honor than to receive acknowledgement from your peers,” he said. “I’m fortunate to have grown up with parents who gave me room to make mistakes and learn from them.”

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