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NEW! DGSE Announces the Grand Opening of its Fourth Bullion Express Location
Arlington Site Expands Presence in North Texas to Five Stores, Marks Third Retail Addition This Year
12-22-11
DALLAS--(BUSINESS WIRE)-- DGSE Companies, Inc. (NYSE Amex: DGSE), which buys and sells jewelry, fine watches, diamonds, rare coins and precious metals products via traditional and internet channels announced today that is has opened its fifth North Texas retail operation in Arlington, near the Parks at Arlington Mall. The store is located at 1109 West I-20, directly facing the I-20 Frontage Road, between South Cooper Street and Matlock Road, on the north side of the highway.
The Arlington Grand Opening follows successful Bullion Express store openings in the Park Cities and Galleria areas of Dallas and Woodland Hills, CA. Products and services include: full-service bullion trading and investment guidance; purchasing of consumers’ used jewelry, scrap gold, silver, diamonds, rare coins and other valuables; and a retail environment where customers can purchase one-of-a-kind jewelry pieces, diamonds, fine watches, rare coins and more.
“We have been very happy with the early profitability of our first three Bullion Express locations and robust holiday sales at all of our other stores. We have high expectations that the new Arlington, TX location will continue our series of successful Bullion Express store openings. The addition of this fifth DFW Metroplex location enhances our efficiencies in advertising, staffing, merchandising and other areas; while allowing us to reach hundreds of thousands of new customers,” stated William Oyster, President and CEO of DGSE. “Looking forward, we are also excited about our entry into two new major markets: Highland Park, IL and Buckhead, GA; which are slated to open in the first quarter of 2012.”
About DGSE Companies, Inc.
DGSE Companies, Inc. wholesales, retails and auctions jewelry, diamonds, fine watches, and precious metal bullion and rare coin products to domestic and international customers through its Dallas Gold & Silver Exchange, Charleston Gold & Diamond Exchange, Superior Gold & Diamond Exchange and DGSE Bullion Express operations. DGSE also owns Fairchild International, Inc., one of the largest vintage watch wholesalers in the country. In addition to its retail facilities in Arlington, Dallas and Euless, Texas, Charleston, South Carolina and Woodland Hills, California, the Company operates internet websites which can be accessed at www.dgse.com and through Superior Gold & Diamond Exchange website at www.sgde.com and Charleston Gold & Diamond Exchange at www.cgdeinc.com. Real-time price quotations and real-time order execution in precious metals are provided on another DGSE website at www.USBullionExchange.com. Wholesale customers can access the full vintage watch inventory through the restricted site at www.FairchildWatches.com.
The Company is headquartered in Dallas, Texas and its common stock trades on NYSE Amex Exchange under the symbol “DGSE.”
This press release includes statements which may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. In addition to the results presented in accordance with Generally Accepted Accounting Principles throughout this press release, DGSE has presented non-GAAP financial measures such as EBITDA. The Company believes that these non-GAAP measures, viewed in addition to and not in lieu of the Company's reported GAAP results, provide useful information to investors because they are an integral part of the Company's internal evaluation of operating performance. In addition, they are measures that DGSE uses to evaluate management's effectiveness. DGSE’s non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies.
NEW! Are Customers Always Right?
12-22-11
In business, the squeaky wheel almost always winds up getting the grease. Customers tend to be rewarded for complaining, but that strategy leaves money on the table, according to marketing consultant Betsy Kruger.
“No one likes hearing a complaint, so when a customer complains, a business quickly and resoundingly rectifies the complaint,” said Kruger, author of Top Market Strategy: Applying the 80/20 Rule (www.BetsyKruger.com). “The problem with this strategy is that disgruntled customers bring in less profit than loyal customers. Your business should focus on gratifying your most profitable customers.”
Contrary to popular opinion, the customer is not always right, Kruger says.
“It’s wrong to reward complainers,” she says. “You should reward loyal customers since they reward your business with higher profit. You should value their business since loyal customers value your business.”
Kruger says the 80/20 rule governs all results, including profits from customers.
“When you sort customers by their profitability, this universal law predicts that the top 20 percent of your customers will generate 80 percent of your profit. Conversely, the bottom 80 percent of your customers will generate only 20 percent of your profit – and virtually all of your complaints. This means you should target the top 20 percent with a top market strategy.”
Your business can profit from the 80/20 rule by enacting these steps:
• Distinguish your top customers – Identify ways the top 20 percent of your customers differ from other customers and what characteristics they have in common. Realize that your top customers are highly profitable.
• Target your top customers – Gratify your top customers with a top market strategy. Discontinue marketing to the bottom 80 percent of your customers by automating all interactions with that group.
• Promote to top prospects – Focus resources on converting similar prospects into top customers. When you replace your less profitable customers with these new customers, you can expect your total profit from customers to quadruple.
“You may feel it’s rude to consider some customers as less valuable than others, but research proves it’s true,” Kruger says. “The top 20 percent of your customers magnifies your profit, whereas the bottom 20 percent of your customers magnifies your complaints.”
“I feel it’s rude to reward complainers since loyal customers deserve to be rewarded. When you prioritize your customers with the 80/20 rule, you are prioritizing your profit.”
About Betsy Kruger
Betsy Kruger heads Strategic Power, a marketing consultancy committed to empowering world prosperity, one business at a time. Business Expert Press released her book, Top Market Strategy: Applying the 80/20 Rule, in August 2011. This book enriches marketing and strategy textbooks and shows business leaders exactly how to quadruple their profit from customers. She writes articles, motivates groups, leads seminars, and consults with clients on how to prosper from the 80/20 rule.
How to undo a Roth IRA conversion
By Jason Alderman
We've all suffered buyer's remorse – say you buy something you really can't afford or the item's sudden drop in value make it seem, in retrospect, a poor investment. That's what has happened to some people who've taken advantage of IRS rules that allow them to convert a regular IRA or 401(k) into a Roth IRA, only to discover later it may not have been the right strategy.
In this particular situation, however, the IRS graciously allows for a do-over, called a Roth IRA "recharacterization." Read on to learn how recharacterizations work, and whether you may be a good candidate.
First, a brief primer on IRAs. With regular IRAs you contribute pretax dollars, which lowers your current taxable income so you pay less tax now. Your account grows, tax-free, until you withdraw the money at retirement, when you pay income tax on withdrawals at your tax rate at the time. By contrast, with Roth IRAs, you're taxed on your contributions during the current year, but all withdrawals, including investment earnings, are tax-free at retirement.
The IRS allows taxpayers at any income level to convert part or all of their regular IRAs or 401(k) plans to Roth IRAs. (Prior to 2010, higher-income people were excluded.) Although such conversions can provide long-term tax advantages – especially for younger people – they can be expensive in the short term, as I experienced first-hand when I did the conversion in 2010.
The cardinal rule of Roth IRA conversions is to make sure you have money outside your IRA to pay the tax bill – borrowing from your IRA will not only lessen the amount of money available to grow tax-free, but you'll also be subject to a 10 percent early withdrawal penalty if you're under age 59 ½.
So what about that buyer's remorse? There are several reasons someone might want to recharacterize their converted Roth IRA:
You decide you can't afford to pay the additional taxes owed after all – perhaps you become unemployed for a few months or other pressing expenses arise.
Adding income from the conversion puts you into a higher marginal tax bracket or subjects you to the alternative minimum tax.
The value of your converted Roth IRA has dropped significantly, so in effect you're paying taxes on phantom money.
There are a few rules to keep in mind if you decide to recharacterize:
You have until October 15 of the year following the conversion to recharacterize, provided you've filed your tax return – or filed for an extension – on time.
You can recharacterize all or part of the converted amount.
The amount you recharacterize will be adjusted for any gains or losses while it was invested in the Roth IRA.
To initiate a recharacterization, contact the financial institution that has your Roth IRA for instructions.
You'll need to file an amended tax return (IRS Form 1040X) along with IRS Form 8606.
You can later reconvert the recharacterized IRA back to a Roth, but you must wait until 30 days after the recharacterization or one year after the initial conversion, whichever is later.
Clearly, these are complicated transactions, so it's probably a good idea to work with a tax professional or financial planner to guide you through the process. If you don't have financial planner, the Financial Planning Association (www.fpanet.org) is a good place to search.
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Jason Alderman directs Visa's financial education programs. To Follow Jason Alderman on Twitter: www.twitter.com/PracticalMoney
NEW! BINGO GROSS RECEIPTS UP YEAR-OVER-YEAR THROUGH THE THIRD QUARTER OF 2011
12-22-11
(Austin) – The Texas Lottery Commission Charitable Bingo Operations Division (CBOD) announced today that gross receipts for the first three quarters of 2011 exceeded $536 million, more than a $5 million increase as compared to the same period in calendar year 2010.
“It is good to see an increase in receipts, but that is only part of the story,” said Texas Lottery Commission Charitable Bingo Operations Director Philip Sanderson. “It is the $22 million in charitable distributions that really helps communities around the state.”
The following chart shows a comparison of activity in charitable bingo during the first two quarters of calendar years 2010 and 2011:
20102011Total Gross Receipts$ 530,956,780$ 536,424,449
$ 530,956,780$ 536,424,449Total Prizes$ 398,938,466$ 404,850,584
$ 398,938,466$ 404,850,584Net Proceeds$ 23,532,379$23,188,955
$ 23,532,379$23,188,955Charitable Distributions$ 27,085,614$ 22,394,677
$ 27,085,614$ 22,394,677There are currently 1,096 active bingo licensees in Texas. These charitable organizations have held more than 100,000 bingo occasions this year, with a total attendance exceeding 12 million.
“Bingo players have received more than $404 million in prizes while helping our licensees contribute to worthy causes in their communities,” said Sanderson. “We stand by our mission to provide authorized organizations the opportunity to raise funds for their charitable purposes by conducting bingo, to determine that all charitable bingo funds are used for a lawful purpose, and to promote and maintain the integrity of the charitable bingo industry throughout Texas.”
For more information about charitable bingo, please visit the official CBOD website at www.txbingo.org.
Average Employer Unemployment Insurance Tax Rates Decrease
TWC sets rates for 2012
12-22-11
AUSTIN – The Texas Workforce Commission (TWC) today announced the average Unemployment Insurance (UI) tax rate for all employers will be 1.96 percent for Calendar Year (CY) 2012, down from 2.03 percent in CY 2011. The average tax rate for experience-rated employers is 1.87 percent for CY 2012, which is down from 1.96 percent in CY 2011. The standard minimum UI tax rate paid by Texas employers in CY 2012 will be 0.61 percent, which is down from 0.78 percent in CY 2011. The taxes replenish the Texas Unemployment Compensation Trust Fund, which provides unemployment insurance for Texas workers who lose their jobs through no fault of their own.
The minimum tax rates are paid by 246,374 employers, which is 63.8 percent of experience-rated employers. An experience rating is determined by the amount of benefits that have been paid to former employees and charged to the employer’s account. An employer paying the standard minimum tax will pay $54.90 per employee in CY 2012 compared with $70.20 per employee in CY 2011. The maximum UI tax rate, paid by 6.2 percent of Texas employers, will be 7.58 percent.
In setting tax rates for CY 2012, TWC sought to minimize the effects of any increases and exercise all the authority given to it by state law to hold the tax rates to the lowest and most predictable rates possible.
TWC suspended the deficit tax earlier this year in order to keep taxes low, a strategy supported by employer groups across the state. TWC is dedicated to finding ways to lower the financial impact of UI taxes on Texas employers. Texas employer UI taxes at the minimum rate are lower than other states. TWC and its 28 local workforce boards are also committed to helping UI claimants return to work as soon as possible.
The components of the CY 2011 tax rate are:
• The general tax rate – based on claims against an employer’s account. If TWC has paid benefits to former employees who were laid off or separated through no fault of their own in the past three years, then those employers will pay a general tax.
• The replenishment tax rate – charged to all experience-rated employers to cover unemployment claims not charged to a specific employer. This tax tends to rise following economic slowdowns when claims increase and businesses close.
• The employment training assessment – charged to all employers who are eligible for a computed tax rate to finance the Skills Development Fund. The employment training assessment calculation is a separate line item on the Employer’s Quarterly Tax Report.
• The obligation assessment tax rate – collected to repay bond obligations. This tax is experience-rated and based on an employer’s 2011 tax rate.
Tax Rate 2012
Year TaxableWage Base MinimumTax Rate MaximumTax Rate Average Tax Rate Average ExperienceTaxRate
2012 $9,000 0.61% 7.58% 1.96% 1.87%
2011 $9,000 0.78% 8.25% 2.03% 1.96%
2010 $9,000 0.72% 6.26% 1.83% 1.74%
2009 $9,000 0.26% 6.26% 0.99% 0.78%
2008 $9,000 0.10% 6.10% 0.92% 0.65%
2007 $9,000 0.29% 7.70% 1.30% 1.13%
2006 $9,000 0.40% 7.64% 1.51% 1.37%
2005 $9,000 0.58% 8.02% 1.74% 1.63%
2004 $9,000 0.67% 8.26% 1.74% 1.64%
2003 $9,000 0.67% 8.47% 1.68% 1.56%
2002 $9,000 0.30% 6.54% 1.03% 0.85%
To increase UI fraud detection and prevention, TWC has increased work-search verifications, and improved automated processes and database cross matches with other agencies. TWC pledges its continued efforts in helping to keep taxes as low as possible and minimizing the effects on Texas employers.
