An ALLPRO® Publication VOL. 23, ISSUE 9 MAY / JUNE 2014
By: Scott Morath
Where to Go From Here You won’t hear it from politicians or pundits (at least not in a mid-term election year) and you probably won’t hear it espoused by business analysts for fear of speaking too soon. However, if you take a moment to look at the indicators, or at least the ones our industry measures, you may begin to recognize the signs of an economy that is stable and growing again. Reports from Kiplinger, the National Association of Home Builders, the US Census Bureau, and Dept. of Housing and Urban Development all speak of continued confidence and stability. Now, by stable and growing I don’t mean the kind of stable and growing our industry experienced during the housing boom. If you’re waiting for those days to return don’t hold your breath. We are stable and growing incrementally at a much more measured pace but it’s growth nonetheless. That incremental growth will, of course, be tempered by the opportunities that lie ahead. Meaning today’s post recession consumers are much more conscientious about spending money. They’re more apt to live within their means rather than make large purchases on credit or finance large home projects. Likewise, business owners in general are much leaner, operating with a greater focus on being efficient and also less willing to incur debt. In short, consumers aren’t willing to spend as much as they once were which means there’s not as much meat on the proverbial bone. And retailers are still just as hungry as ever but there’s less to go around, so the competition is particularly intense. That means you have to be smarter, work harder, and maximize resources even more so than before to continue to compete.
From a strategic standpoint that means taking a step back and looking at the big picture. What are your goals and do you have the assets or resources to achieve those goals? Do you have a plan in place? If so, do you need to adjust that plan? What are some things you could do differently to better position yourself? In this issue we try to offer up a few things to help spur new ideas or reconsider things you may have dismissed in the past. Matt Docherty of HERO Products has contributed a short article on how to assess your overall business and develop a roadmap for it. We also look at ALLPRO member The Color House. They’ve revamped their digital presence and are beginning to see the fruits of their efforts with increased website traffic and greater engagement with their customers. We re-introduce you to blogging and our initiative with ALLPRO member Hirshfield’s to facilitate an ALLPRO blog that members can use as a resource to build a larger online presence. In the Company Profiles section we introduce you to new supplier partners Epoxi-Tech, Jotun Paints, and Plutonium Paint. You probably saw each at the show but may not have been able to spend as much time as you would’ve liked learning about who they are. Each brings something different to the table that may provide you with a distinct opportunity in your market. In conclusion, I hope you’ll take the time to read through this issue and carefully consider the material presented. While there is no guaranteed formula for success, there are helpful ideas and success stories. Each may inspire and help you figure out where to go from here.
Branding Your Business
branding is typically mistaken for company identity, naming or logos. When developing your brand, start by asking yourself these questions;
By: Matt Docherty, VP of Sales HERO Products
Every business whether an individual retail location, multiple outlet retailer or a large corporation, needs a plan to market its business. This plan should include all of the following; a Defined marketing strategy, a roadmap allowing path toward Implementation and a timeline measuring the Executables toward your objectives. Without these three critical components, your company will not survive & D.I.E. in the business world, as it would be virtually impossible to inform your community about the essential reason for the existence of your business and about all the products you offer & that are available to them.
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Does your brand accurately reflect what you want you to be?
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Does your brand create a compelling point of distinction that gives you a competitive edge?
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What are you doing about the gaps that exist between what you are and what you could be?
It is a common myth that simple Brand Management breeds success - whereas quite often, this is not the case. Many businesses forget to manage their brand, while others believe they do, when in fact they are only focusing on company identity. By contrast, the most successful companies focus on strategic brand maintenance as it relates to every aspect of their business. These companies understand that logos and messages are mere tools that are used in conjunction with meaningful touch points, toward creating emotional connections with your customers. These companies forge brand loyalty and this brand development / management is not a one-time event, but rather a forever EARN, and an ongoing process toward driving business results – as your Brand is continually evolving – or dying.
The foundation of any successful business begins with how you, as an independent retailer, choose to market & advertise your company and products. This may be accomplished in different methods, but should always begin with a Brand Assessment. The 1st step in this process is to conduct an overview of where your company currently ‘fits’ into the marketplace. This is typically accomplished by reviewing your product category segments along with current market share.
We must remember that everyday markets change, and so do customer perceptions, consequently, Brand Assessment requires continual reevaluation and a commitment to brand validation in every part of your company. Brand management helps you and your staff re-commit to the vision and goals of your business, ensuring consistent and accurate application of your brand across the organization. Remember the only thing constant is change, and we operate in a changing marketplace. Competitors change; consumer perceptions change; your customers’ values change; and your products and services change. That’s why all successful organizations periodically reassess and refresh their brands. A brand assessment provides an opportunity to evaluate the strength of your brand, to underscore the value of your brand with customers, and to reposition the brand, if necessary, to reflect changes in your market. Finally, it ensures accurate application across the organization. Evaluate your brand, both internally and externally, identifying the gaps between what you want your brand to be represented and how your customers perceive your brand in the marketplace. This continual focus enables your business to grow and prosper – as successful brands stem from solid brand strategies.
Brand Overview - if you’re in business, believe it or not you have a brand. Chances are, you don’t think about it very often. In fact you may not even know what it is, but one thing is definite: Your brand is all your customers know about you. It’s not the products you sell; it’s not the services you offer. Your brand doesn’t even exist in material form. Rather your brand is a perception – a concept that exists in the mind of your customer. Brands tap into all aspects of your customers’ decision-making process, and create a point of distinction between you and your competitors. In fact, your brand is the most influential thing your customer will ever know about you. The beauty of brand is that you can control it. Better yet, you get to choose it. And if you take a proactive approach to managing your brand, you’ll be well on your way to controlling your success. And yet all the while, your brand singularly determines the future of your business.
Now it’s time to put your brand into action, and
Brand Development isn’t about your logo. In fact 2
The Color House - Growing Their Online Presence ALLPRO member Color House, with three stores in Providence, RI, recently underwent a complete redesign of their company website and online presence in general. We sat down with owners Doug and Jean Hauser to get the skinny on their digital transformation and how it’s benefited their business.
have been getting a lot of positive feedback so apparently people are reading and benefiting from it! We plan to create “How-To” videos and post them here in the future as well.
SR: What first made you decide to design a new website and how does it differ from your old one?
Our team page is one of our favorite pages. I think it personalizes The Color House to our customers and also puts a face to a name when either first time customers visit our stores or someone calls on the telephone.
In reference to your team page, do you think adding profiles about your employees benefits first time customers visiting the store?
CH: We wanted a fresh and innovative web site that would let our customers understand more about who The Color House is versus what The Color House sells, while attracting a younger clientele. Previously we used a manufacturer provided host site but our goal is really to brand Color House and connect with the local community. We weren’t able to do that with the format of the old site.
You have integrated links to your Facebook, Twitter, Pinterest and other social media pages directly into your site. Have you seen an increase in site visitors since adding these links? Our website is still very fresh and we are currently working on making our social media more effective for us, so we can’t say definitively that increases in site traffic are due to that.
What was your process for designing the new website? Did you have certain attributes in mind when developing it?
Overall what success have you seen with the new website? We have seen an impressive leap in traffic since we launched our new website. Aside from all of the online appointments we are receiving, the overall foot traffic in our stores has greatly increased.
We interviewed numerous web designers before settling on the one we felt would be the best for us. We spent a lot of time looking at all sorts of web sites, not only paint and design related, to get ideas of how we wanted ours to look. It was important to us that our site was user friendly but also informative and edgy.
How important do you feel having a company website is to a business? In this day and age is it vital to have a company website.
How did you decide on adding a design consultation appointment sign up? What success have you seen from this feature so far?
Do you have any advice to member companies who do not yet have a company website and are interested in starting this endeavor?
When reviewing other sites we noticed that they had the design appointment sign up as a feature. It has been very successful for us! We are still working out some of the kinks but it allows you to immediately contact customers who are interested in our services.
I think it is important to do your research and take your time when launching a new website. It took us a full year before we were ready to go live. With that, we’re sure Color House’s efforts to build a larger digital presence will continue to pay dividends in the long run. Be sure to visit www.thecolorhouse.com and see for yourself some of the features and tools Color House has integrated into their new website.
What made you decide to add a news board? What kind of news do you usually feature on this forum and do you think it benefits users? We use our news board for our blog and also to post any prevalent information on paint and design. We 3
Reasons Why Your Store Should Blog
What is blogging?
You may have heard the word "blog" thrown around here and there in meetings and on the Internet. You've no doubt heard that your business should have one of these blogs and that it's very important. It's understood that a blog is a valuable tool for your business, but is it powerful enough to be worth your time and effort?
Blogging means to give your company a voice. A blog is a place to talk about new products, or services, discuss timely topics or market trends, and share expert advice. This is where you can let your brand’s personality shine. Blogging is meant to show your audience what you're all about! The ALLPRO® blog provides content for members to customize and use on their own blogs. Check out The Color House and see how they personalized a post on Window Treatments for the Nursery with quotes from their designers. Blog content should feature tutorials, tricks and tips of the trade, and video. One helpful hint - don't make every blog post about a sale or promotion happening in your store. In real life, would you want to spend your day talking to someone who constantly bragged about themselves? Nope, didn't think so!
The Stats on Blogging According to website Socialmediatoday.com, there are a number of stats that support the notion that blogging is good for your business: • 77% of internet users (that’s everyone) read blogs. • 53% of blog readers are age 21 – 35-year olds. A much sought after demographic in any industry. • Small businesses with blogs generate 126% more leads. • Interesting content is one of the top 3 reasons that people follow a brand on social media. • 97% of companies that blog have 97% more inbound links. • Websites with blogs have 434% more indexed pages. • Websites with blogs have 97% more indexed links. • 61% of US consumers have made a purchase based on a blog post. • 90% of consumers find customer content useful. • 82% enjoy reading relevant content from brands. • 70% of consumers learn about a company through articles rather than ads. As you can see from the above there are some very compelling stats that may help you decide if it’s worth your time and energy. If you decide it is something you want to explore and learn more about, here is the what, why, and how of blogging for your business.
Why is it important to my business? Aside from the stats already mentioned, a blog gives you a greater online presence and allows you to share valuable insight and information about your business. You are establishing yourself as a local expert in your field and a trusted source for your customers. Think about it this way; your blog is your PR, customer service, and newsletter all rolled into one!
What is a blog? A blog is short for weblog. AKA a blog is an online platform for sharing information and supporting your business. The person who writes to the blog (you!), is called a blogger. Your role as blogger is to add content known as "post", to the blog. Simply put, a blog is a place for your company to share information and expertise!
What a blog does is create those important relationships that build loyalty and ultimately lead to sales. You'll become a reliable resource for information on your industry and be top-of-mind for customers when they are ready to buy.
How do I set up a blog? Setting up a blog with Wordpress does not take a long time. Fill in the basics, and customize later. If you need step-by-step directions on how to set up a WordPress account there's a link listed below.
According to Al Kinnear of Bigeye Productions one of the most valuable aspects of a blog is that “it is a (continued on page 7)
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ALLPRO® Company Profiles ALLPRO has had the good fortune to add the highest quality companies in the industry to the group. We are pleased to profile some of our member companies and supplier partners.
Epoxi-Tech, Inc. • Founded: 1994
Jotun supplies coatings for plants, terminals, oil & gas facilities, pipelines, and tank farms, and industrial applications.
• Location: Madison Heights, Michigan • Telephone: (586) 530-6105
• In 1920, Jotun's founder, Odd Gleditsch Sr., opened a combined color/ship supply store in Sandefjord, Norway. It was a good time for the whaling industry, and Gleditsch Sr. soon worked his way into the business of supplier to the whaling fleets in Sandefjord, Tønsberg, and Larvik. As sales to the whaling fleets increased, Gleditsch Sr. saw the potential in manufacturing the paint himself. On 12th March 1926, Gleditsch Sr. invited shareholders to subscribe to the new company and Jotun Kemiske Fabrik A/S was founded, with Odd Gleditsch Sr. as managing director. The company has since grown into one of the biggest international paint companies in the world. Today the Jotun Group has total sales of (US) 952 million and operates 71 companies in 45 countries, and 36 production facilities in 19 countries. The company is represented in more than 90 countries around the world.
• Website: www.epoxi-tech.com • Current President: Simon Palushaj • ALLPRO Contacts: Jim Hay and Kerry Buffington • Epoxi-Tech, Inc. is a manufacturer of innovative products with an emphasis on floor coatings. EpoxiTech, Inc. manufactures epoxy floor coatings, decorative flakes, patching materials, decorative concrete products, anti-graffiti coatings and commercial roof coatings. • Epoxi-Tech was founded in 1994. Since that time, Epoxi-Tech, Inc. has pioneered a wide array of patented products that include: Epoxy coatings and patching material, diamond grinders, concrete polishing tools, decorative flakes and commercial roof coatings. We remain on the cutting gedge of developing products for the industry. We also distribute products from our related companies; Diamabrush, Granx and Poly-All Roof Coatings.
Plutonium Paint • Founded: 2011 • Location: Southfield, Michigan
Jotun Paints, Inc.
• Telephone: (248) 827-1451
• Founded: 1920
• Website: www.plutoniumpaint.com
• Location: Sandefjord, Norway
• Current President: Barry Fleischer
• Telephone: (206) 718-3977
• ALLPRO Contact(s): Barry Fleischer, William Korman and Matt Kallie
• Website: www.jotun.com
• # Full-Time Employees: 8
• Current President: Bjorn Abraham Bache, President, Jotun Paints, USA
• Plutonium Paint manufactures the most premium aerosol paint made in the US. We work closely with our dealers on developing new vertical markets to sell to. We primarily use social media and magazine ads to create product awareness. Our primary customers are arts, arts & crafts, do-it-yourself, movie & stage design, manufacturing, contractors, and interior decorators.
• ALLPRO Contacts: Katrina Johnson, Dave Evans, and Ron Wise • # Full-Time Employees: 8740 (worldwide) • At Jotun, we protect property by providing solutions that not only enhance the appearance of your asset but also ensures long-lasting durability. Our range of paints and coatings are inspired by technology, designed to meet the latest industry standards and developed with sustainability in mind. Our specialties include coatings for corrosion and fouling protection of metal substrates and passive fire protection of steel.
• Started in Detroit in 2011 and went to market at that time selling primarily to the art market. In 2012 we began selling to paint and hardware stores and are happy to have been approved as an ALLPRO supplier partner in 2013.
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FYI March/April Retraction In the last issue of the Scouting Report we ran a member profile on Shelby Paint and Wallcovering. The article, titled “Vision Statement,” included an excerpt from Shelby Paint’s vision statement, which articulated an image of where the company would like to be by 2016. This vision included the goal of having sales agreements in place with two fellow members – Teknicolors, Inc. and Northeastern Paint Supply. While the excerpt was not intended to convey conditions as they exist today but rather as Shelby Paint would like them to be in the years ahead, it nonetheless created confusion and disorder among those companies involved. In an effort to mitigate the confusion we issued a retraction via e-mail to all of our members and suppliers but would like to reiterate that retraction here. To that end, neither Teknicolors, Inc. nor Northeastern Paint Supply has a sales agreement in place with Shelby Paint. We apologize for the confusion and sincerely hope it was short lived by all involved. As an organization we will certainly be more stringent in our editing process to ensure this type of error doesn’t occur again.
Member Happenings Congratulations to ALLPRO members Clement’s Paint, Mallory Paint Store, Powell Paint Center, Reno Paint Mart and Spectrum Paint East. Each company has opened a new store location within the past few months. Congratulations to ALLPRO member Ricciardi Brothers who recently acquired Old City Paints, adding nine locations to their total number of stores. Also, Miller Paint recently acquired Denfeld Paints, adding two locations to their total number of stores. And finally, Spectrum Paint has acquired the assets of all PROfessional Paint and Coatings stores located in the greater Kansas City area, Lawrence, Kansas, as well as Omaha and Lincoln, Nebraska. The new stores will operate as Spectrum Paint North, LLC. We’d like to welcome two new members to the ALLPRO family of retailers – Gainesville Paint of Gainesville, GA and Joseph’s Paint & Wallpaper of Alexandria, LA. Gainesville Paint operates one location and has been in business since 1958. Joseph’s Paint & Wallpaper also operates a single location and has been in business since 1932.
ALLPRO Staff We knew this day would eventually come but it is no less easy to report that ALLPRO’s Vice President of Business Development and industry icon, Vic Meier, has officially announced his retirement date. Vic, who is a close friend and colleague to just about everyone in our industry, will be retiring at the end of the 2014 Spring Show in Orlando, FL. While we will certainly address this in greater detail in the months ahead, we wanted to provide a brief notice to each of our readers well in advance of Vic’s actual retirement. Furthermore, we’d like to advise you that our Marketing Coordinator, Kelley Anderson, recently moved on to another job opportunity here in the local Tampa area. Kelley was only with ALLPRO for a short period but during that time got to know many of our members and supplier partners alike and contributed to the organization in a positive way. We wish her success in this new endeavor. However, since time and the tides wait for no man, we have hired a new Marketing Coordinator to fill the position. Look for an official introduction and short bio on our new Coordinator in the next issue of the Scouting Report.
IMPORTANT DATES TO REMEMBER … 2014 Stockholder Meeting The Westin Michigan Ave. Chicago, IL, Oct 23 – 25th
2016 Spring Show & Sales Meeting JW Marriott Desert Springs Resort & Spa Palm Desert, CA, Mar 16th – 20th
2015 Spring Show & Sales Meeting Rosen Shingle Creek Orlando, FL, Mar 18th – 22nd
2016 Stockholder Meeting The Westin Michigan Ave. Chicago, IL, Nov 3rd – 6th
2015 Stockholder Meeting Grand Hyatt Atlanta in Buckhead Atlanta, GA, Nov 4th – 7th
2017 Spring Show & Sales Meeting The Westin Diplomat Hollywood, FL, Mar 8th – 12th
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asked time and time again from your customers? Additionally, the suppliers you routinely deal with can contribute as well.
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simple way to create and maintain dynamic content on your website. You can integrate the blog right into to your front page and as you update your blog, viola, you have an update on your site – an updates that drive traffic to your site.”
Lastly, the new ALLPRO blog was setup primarily for ALLPRO members to use as a resource for blogging. Content will be added on our blog weekly and you can use that content in your own blog. It’s simply a matter of copy and pasting the content. Granted, not all of the posts will be usable depending on your store format and focus, so it’s a good idea to have the other sources mentioned above to help generate content.
Additionally, “Blog users will often sign up to receive all the latest blog articles, which provides for another easy way to stay in touch directly with your retail client base.”
How much time and energy does it take? It's easy to neglect your blog. It's easy to justify skipping a week of posts, because other "more important" tasks came up. Don't let that happen! Blogging is an important task! Make a monthly calendar with timely topics that you think your customers will be interested in. The key is to post with consistency. Begin with a minimum of one blog post a week. If possible, try to publish it on the same day each week so customers know when to expect it.
What is the return on investment? The value of blogging isn't measurable with dollar signs. Like we said earlier, blogging is all about building and maintaining relationships. It's about becoming an invaluable resource to your customers so that they turn to you when in need. Blogging is also about being found online. If a customer can't find you, they won't purchase from you! Over time your blog becomes a library of information - information that you can use on Twitter, Facebook, Pinterest, or even articles for a local publication. Now that you're an expert on blogging, give serious consideration to starting your own company blog.
Once you've established your blog and a voice for it, see if your employees are interested in adding their input to it! Guest blog posts help you avoid burnout, add helpful perspectives, and showcases the talent you have on staff. Along those lines, Al recommends finding an individual or individuals in the store system that are excited about blogging and who can lead your blogging efforts. He says, “Generally this comes in the form of folks in their 20’s or 30’s. Once you find this person, empower them to “own” the blog and you will find that they bring dynamic content to the table on a regular basis.”
To sign up for the ALLPRO® blog visit us at www.allprocorp.wordpress.org and click the “Follow” button. If there are topics you'd like to see featured on the blog please send your suggestions to Marsha at Hirshfield's. We're also looking for blog posts and videos from ALLPRO® supplier partners. We really hope you take advantage of the ALLPRO® blog and use it to promote your business.
Ideas for blog posts can also come from your customers. What questions do your sales people get
If you need more comprehensive help getting a blog up and running contact Al Kinnear at Bigeye Productions. Bigeye specializes in developing and hosting professional and cost effective websites for retailers in the paint & decorating products industry. Bigeye can setup a blog for your company for as little as $400. Links: How to start a blog http://www.wikihow.com/Start-a-Blog mkeppel@hirshfields.com or phone (612) 374-0203
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News and Views Better Times Ahead A recent issue of The Kiplinger Letter alluded to a March peak in consumer confidence levels as a sign that consumers are “warming up to the idea of better times ahead.” Specifically, Kiplinger reported that consumer confidence hit a six year high in March and was a signal of rising optimism that would further spur the economy along…once the weather warms up. Kiplinger projects second quarter GDP growth should be in the 2.5% to 3% range. However, the report also cautioned that retailers should not count on a big jump in sales from federal tax refunds. Despite the fact that refunds are nearly 5% higher than last year, they are only averaging about $3,300 per household. It’s expected that half of all Americans will put their refund into savings or use it to pay off credit cards or apply it to everyday expenses. Furthermore, those who do plan to spend the money will do so on things like automobiles, electronics, furniture or other household goods.
NAHB Confidence Holding Also Steady According to the National Association of Home Builders (NAHB) April report, builder confidence is remaining steady. The NAHB conducts a monthly survey of home builders to develop the Housing Market Index (HMI), which gauges builder perceptions of single family home sales and sales expectations for the next six months. According to the HMI, current sales conditions held steady at 51 (any number above 50 indicates that more builders view conditions as good rather than poor). The component of the HMI measuring expectations for future sales rose four points in April to 57. According to NAHB Chairman Kevin Kelley, “Builder confidence has been in a holding pattern the last three months. Looking ahead as the spring season gets into full swing and demand increases, builders are expecting sales prospects to improve in the months ahead.”
More Jobs but Smaller Pay Hikes
Editor/Production Scott Morath
Proofers Julia Thomas Lori Heartsfield Susan Nichols
Contributing Writers Scott Morath, - ALLPRO Matt Docherty, - HERO Products
ALLPRO® President Michael Gleason
Exec. Vice President Joe Poliseo
SUGGESTIONS WELCOME Your suggestions, ideas, articles and comments are encouraged. The Scouting Report is an important communications media for ALLPRO®. Mail all correspondence to:
The Scouting Report c /o ALLPRO® Corporation
The April 4th edition of the Kiplinger Letter cited March’s job growth 4946 Joanne Kearney Blvd. of 192,000 as a positive sign for the rest of the year. Specifically, Tampa, FL 33619 • (813) 628-4800 Kiplinger expects an average monthly gain in job growth of 200,000 for the year. While that’s enough to match normal growth in the Website: www.allprocorp.com labor force it’s unfortunately not enough to soak up millions of longThe Scouting Report is a bimonthly publication term jobless and part-timers who can’t find work. Additionally, of the ALLPRO® Corporation. according to Kiplinger, those in the work force will only see a small Printed on recycled paper increase in wages of .25% this year. Adjust for inflation and that equates to a nominal .5%. With U.S. industries operating at 78.4% compared with the 80.1% historical average there’s not enough pressure in the job markets to push wages much higher. Kiplinger anticipates it’ll be mid-2015 before we see more vigorous hikes in wages. Still, .5% is better than the two consecutive years of declines in real wages seen in 2011 and 2012 and may help bolster consumer spending a bit.
Housing Stats According to the Census Bureau and the Department of Housing and Urban Development privately –owned housing starts in March were at a seasonally adjusted annual rate of 946,000. This is 2.8% above the revised February estimate of 920,000 but 5.9% below the March 2013 rate of 1,005,000. Single family housing starts in March were at a rate of 635,000, which is 6% above the revised February figure of 599,000. Building permits issued on privately-owned housing units in March were at a seasonally adjusted annual rate of 990,000, which is 2.4% below the revised February rate of 1,014,000 but is 11.2% above the March 2013 estimate of 890,000.