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Jewelers Board of Trade


#1

Since I have only been in business for a short time and operate
from a studio in my home, is it possible for me to register with
JBT? What are

their requirements ? What are the advantages and disadvantages?
Thanks, Steve D.


#2

If you plan to do a lot of buying from many different companies, and, you
are well capitalized, JBT can be very helpful. It takes about 6 months to
get rated, at least it used to. Companies will send memos to rated
accounts without hesitation, although some won’t send to late payers… If
you register with JBT, be ready to give them 15 trade references, 15
account references, years of financial history… then in a year of two,
you’ll get assigned a number and a letter stating if you pay your bills in
either 30, 60, or 90 days (or longer) and your net worth; 1A is pays all
bills with 30 days, and worth over a million dollars… etc… They also
collect overdue trade bills…


#3

Funny you should ask…

I was on the phone with them today about getting rated. I had gotten an
application when I first opened in November and didn’t have the time to
deal with a form that looked like a loan application, only worse. Today I
gave them the pertinent over the phone to become listed with
them, however, that is not the same as rated by them. In order to get a
JBT rating, you have to be in business three years. The major advantage of
JBT rating is that you don’t have to prepay as a new account for most
suppliers. I had worked out of my home as a sole proprietorship for six
years without being listed or rated and though it didn’t stop me from doing
business with anyone, it would have been a lot easier and I would have
saved $$$'s in COD charges if I were.

Good luck. Their phone number is 401-438-0750, fax: 401-438-5148.

Sharon Ziemek
GoldStones, Inc.


#4

Steve D, The sooner you are listed with JBT the better. The
advantage is suppliers will send your order and give you terms,
usually 30 days. No more COD or worse, no shippment at all. You
will not be rated at first but the sooner you are in their system
the sooner you will be rated. They will send you a form to fill
out, they ask alot of personal questions and want to see a
financial statement. Originally I filled it out, but not all of
it, (no bank account #'s, no finacial statement, ect, I think
thats none of their business). The important to them
(besides your basic business info) is your suppliers, they in
turn send them forms to fill out about your payment habits. If
the reports are good, you get a good rating. The ratings are two
numbers (sometimes two numbers and a letter to be more precise),
like 41, the fist number represent the capital they project you
have on hand, the second being your credit rating (1 being best
and I think 4 worst). In the beginning you will be listed but not
rated, but thats ok, to a supplier that means you are a real
jeweler and not somebody just trying to get a discount.

Mark P.


#5

is it possible for me to register with JBT? What are their requirements

Steve Write them they will be happy to send info and explain. JBT box 6928
Providence, RI 0294-9987

RED


#6

Letter to the editor
by Steven Pollack 2/22/97

(printed in the April 97 issue of JCK) Federal Fair Credit Reporting Act
vs. Jewelers Board of Trade

Imagine a consumer credit reporting agency such as TRW allowing businesses
to report on your personal payment history but not allowing you to review
your credit file for possible inaccuracies. You would be enraged. Lets
say they finally gave you a copy of your report but with the names of the
companies reporting on you removed. You see possible errors but TRW has
no procedure to allow you to dispute any in order to "protect"
the reporting companies privacy. Other companies are making decisions
about your credit worthiness based on this and you have no
rights to make sure it is accurate.

If this sounds horrible you are right. If this sounds like it could not
happen you are wrong. The Federal Fair Credit Reporting Act (FFCRA)
protects our personal credit files from this sort of strong arm tactic but
does not apply to business credit bureaus. In the absence of these rules,
JBT has decided to adopt procedures similar to those in the above
hypothetical situation. They could voluntarily comply with this fair and
sensible act but they do not.

This becomes a problem it seems when wholesalers gripe that many retailers
choose not to give JBT their financial statements and thus are non-rated
entries in the red book. This is the decision I have made also. Being
unrated has not hindered my ability to get memo credit from the many
wholesalers, manufacturers, and dealers who enter my premises on a weekly
basis. There is a mountain of jewelry and gemstones in the market all
competing for retail shelf space.

Before you go thinking this is being written as sour grapes by a store
with poor credit, think again. I would easily qualify for a 52 rating and
more likely a 51. By sticking my head up on this issue I can imagine that
many JBT members will pull my report out of curiosity and that brings me
to my final reason why I will never give my financial statements to JBT
until they adopt the FFCRA standards. It would be illegal for you to pull
my TRW report without my consent but JBT will allow any member regardless
of potential business dealings to know all matters of my business and
personal file including my home address and value. Again, contrary to the
FFCRA, they will not show who has pulled my report.

As members of JBT paying $750 per year or more, you ought to be outraged
at their conduct which ultimately hurts your business as you must make
credit decisions based on less than perfect I for one would
submit my financial statements and become rated if I was guaranteed the
same credit rights from JBT as I have as a consumer. As a small
operation, my business credit is the same as my personal and
should be treated with equal respect.

                            Steven B. Pollack
                            The Missing Link Jewelers inc.
                            Glencoe, IL. 60022
                            847-835-9375

#7

I must concur with Steve. My father has been in business since 1949, and
rated with JBT as a 41. The last number indicates the speed in payment, 1
being the fastest. In 1992 we had a total wipe out burglary, through our
sophisticated alarm system, UL rated AA hard wired and with a backup
’radio’ beacon. State of the art system. The band of thieves going up and
down the east coast hit us, bypassed our system, and cut through our TTL
15x6 safe with the special magnesium torch, and wiped us out. The point of
the story is that every one of our suppliers got paid, albeit a little
slowly. JBT lowered our rating to 42. No amount of explanations to JBT
helped. They said that they might consider changing it back if we
submitted a personal financial statement, which was unacceptable to us.
One must consider the situation. There is no one in this industry, who is
not subject to a burglary, or worse, an armed robbery. It is a fact of
the jewelry industry. This is true for a retailer, or wholesaler. Every
one that I know it the industry accounts for this when considering
payments. The JBT simply did not care. They did not tell us who gave us
the bad rating so we could possibly correct any ill feelings. Even if we
submitted the financial statement, we are not guaranteed to be returned to
a 41. In truth, there has been only one occasion where a Florida based
designer company refused shipment because we were a 42 instead of a 41.
Still, it is a matter of pride and personal intregrity to have kept this
high rating all these years.

regards, Allan Freilich


#8

Dear Allan,

I know of several burglary situations that received no attention or
understanding from JBT. On the flip side, I know someone who was outright
jilted for $40K by a 21 rated account. As a supplier, wWilliam


#9

Dear Allan,

I know of several burglary situations that received no attention or
understanding from JBT. On the flip side, I know someone who was outright
jilted for $40K by a 21 rated account. As a supplier, we extend credit
for under $1000 to both 1’s and 2’s (without really differentiating).
Above that we ask for specific references from the customer. In short, we
really can’t rely on ratings as any real indication of how the customer
pays. Generally, any honest, good payer, will readily supply any references
needed for establishing credit–if they don’t they’re probably hiding other
things. Most vendors that I know rely on JBT as an address/phone number
confirmation. Many of my largest, best paying customers aren’t even
listed. William


#10

I must concur with Steve. My father has been in business since 1949,
and rated with JBT as a 41. The last number indicates the speed in payment,
1 being the fastest. In 1992 we had a total w> >regards, Allan Freilich

Dear Allan,

I know of several burglary situations that received no attention or
understanding from JBT. On the flip side, I know someone who was outright
jilted for $40K by a 21 rated account. As a supplier, we extend credit
for under $1000 to both 1’s and 2’s (without really differentiating).
Above that we ask for specific references from the customer. In short, we
really can’t rely on ratings as any real indication of how the customer
pays. Generally, any honest, good payer, will readily supply any references
needed for establishing credit–if they don’t they’re probably hiding other
things. Most vendors that I know rely on JBT as an address/phone number
confirmation. Many of my largest, best paying customers aren’t even
listed.

William


#11

Dear William,

I have just started a Mail Order company to supply genuine Gems to the
Jewelry trade, and I am very interested to know more about JBT . Presently
I am based in Sri Lanka and my prices are very competitive , can I get
about my customers from JBT ? , Do they have a Web site ?
what are the services they do ?

Thanks
Ahmed Shareek