An ALLPRO® Publication VOL. 23, ISSUE 11 NOVEMBER/DECEMBER 2014
By: Scott Morath
It’s Housekeeping Time The end of another year has snuck up on us once again. For us, this year seems to have flown by at break-neck speed and was one of the busiest in recent memory.
being able to deal with the important work of selling, we have to stop what we’re doing to finally address the little things that have suddenly grown into big things.
Being busy is a good problem to have, especially in light of the past several years of little or no growth in the independent paint stores industry. It can, however, also present its own problems. When we spend every day doing all we can just to keep up with a high operational tempo, that’s usually when we let other, less urgent “housekeeping” chores slip through the cracks.
Fortunately there is a seasonality to this industry and by the time we reach November business has slowed to a much more manageable pace. In short, we have time to do some housekeeping.
Problem is we can only allow housekeeping items to go undone for so long before they develop an urgency of their own. Eventually they begin to create operational drag. Rather than
With that in mind I thought now would be a perfect opportunity to review some of the features on the ALLPRO website that need to be reviewed each year to ensure the information is accurate. This applies to members and suppliers alike, so please take a few moments to read through each.
Supplier Bulletins Each bulletin reflects the contracted program that ALLPRO has with a given supplier. As such, it’s crucial that the bulletin be accurate and up to date. ALLPRO members regularly rely on this content and core program information. For that reason, it behooves every
supplier partner to review their bulletin routinely to ensure its accuracy. For simple changes such as distribution points, customer service info, and such we only need a source document (e-mail or fax) indicating what needs to be changed. Items that have a direct impact on other program elements need to be routed through the proper channel for Sundry Committee review and evaluation.
Pricing Pricing is published on the website in two different places. The first is the supplier proprietary pricing section, which allows suppliers to post their pricing directly to the site. Once a price file is posted, maintaining it is the sole responsibility of the respective supplier. Files can be deleted and new files uploaded as needed. If new SKU’s are added, discontinued or price changes occur it is entirely up to the vendor to update their file. While we can post a file that you send us, ALLPRO cannot edit or modify your pricing under any circumstance. Proprietary price changes require a minimum 30day advance notice. The second pricing type is the ALLPRO brand pricing. This is maintained by ALLPRO under a separate tab. Since we maintain this pricing the key take-away is (continued on page 7)
Custom Window Treatments Equal Profit in Your Pocket By: Jeff LaRico, National Account Manager treatments is sure to impress your customers. Additionally, window treatments require minimal initial investment. There’s no bulky inventory to store—just a sample book or two is all you need to reap big rewards. Securing only a handful of customers will cover your total cost of investment and assure long-term profitability. Look around your store and you can see the significant investments you’ve made in your business. Your business knowledge is apparent in your strong inventory management and effective product display. But there is an untapped channel for increasing your cash flow, providing extra profit to pay for your inventory, and securing the financial viability of your business—custom window treatments! Custom window treatments are a logical complement to the home decorating solutions you already carry in your store. Customers already considering color schemes and décor in their homes will be attracted to the variety in options that custom window treatments present. Why not offer your customers a onestop solution to their home décor needs? Whether it’s custom, real wood shutters—fine furniture for windows— or the color cornucopia offered in energy-saving cellular shades, the variety of selections offered by custom window
Consider the footprint of your store space. How much return on your investment are you getting per square foot? A freestanding swivel 2’ display, with a minimum of four different window blinds and shades, can be purchased for as little as a few hundred dollars—but can generate ten times the returns. Basically, all you need to sell is one blind per sample displayed, or four blinds total. The trusted window covering vendors at ALLPRO are ready and willing to consult with you to choose the appropriate display type and corresponding samples to meet your business needs, and have it shipped to you in no time. For stores with limited floor space or those business owners just wanting to dip their toe into window treatment sales, there are window clings that showcase either window treatments installations or physical samples of the products themselves, in a variety of room 2
and product color schemes. One example is a window cling featuring a portion of colorful cellular fabric. The benefit of this type of display is the real-time illustration of light and color diffusion as the sun shines through the fabric. This vibrant demonstration of the product will prompt inspiration and conversation amongst your customers. With the multitude of colors offered by cellular and pleated shades, it’s a no-brainer that this is a product that goes hand-inhand with the paint sold in your stores. In fact, some cellular and pleated fabric colors are derived directly from brand-name paint colors and RGB values! If you want to start with just one product, cellular and pleated shades are a logical choice. In addition to the natural complement to your current product that custom window treatments offer, they’re also a made-to-order product that is a safe, high margin addition to your inventory options. Consider a typical sale of paint: two to three gallons to cover a room, and $15 – $30 per gallon. Now multiply that by a factor of five—that’s a typical window treatment sale to cover just one window. Of course, depending on the size of window and type of window treatment, this amount can be exponentially higher; and remember that houses have multiple rooms, each with multiple windows to cover! You can see how these lucrative, double-digit margins can quickly add up. And you don’t have to be a professional decorator to get into this business—your suppliers (continued on page 7)
Anti-Virus Protection & Spam Filtering By Al Kinnear, Bigeye Productions require any human action to spread from PC to PC. Worms will do devious things like replicate by sending a copy of itself to everyone in your email contact list, and then replicating again and again by doing this action over and over with each contact in your address book. Worms will bog down website servers, internal servers, workstations and cause them to stop functioning properly.
Trojans
The strategy of protecting your corporate and personal computers from viruses, worms, and trojans is a topic that is a very common point of discussion with our clients. This month’s technology article will discuss and provide some general guidance so that you can implement or ensure you have an effective strategy in place to address this important issue.
What are Viruses, Worms & Trojans? Computer Viruses are malicious software or programs that operate on your PC without your permission or knowledge. Quite often the virus will replicate itself and attempt to spread to other computers through your network, via email or thru use of storage media that goes from machine to machine. A virus will attach itself to a file or program on your pc and then propagate and do their damage when the program is run. Viruses often spread via email and require a human interaction to allow the virus to spread.
A Trojan gets its name from the mythical Trojan Horse. These are extremely devious programs that will present themselves as legitimate software, but once installed or run a PC will cause many problems with normal computer functionality. Many Trojans are annoying as they change your computer fonts or your desktop environment, while others can be very malicious and remove key operating files and/or destroy important information from your PC. The most dangerous Trojans are the Back-Door Trojans which can allow unauthorized access to your PC or network PC's over the internet allowing unauthorized access to your confidential files.Trojans are not designed to replicate.
Protect Yourself! The only way to properly protect your PC and the network that you connect to is to ensure you have anti-virus software installed on all of your PC’s and Network Servers. Not only must you ensure the software is installed, but you must check regularly, or arrange for a staff member to ensure that the software is running and is up to date. I repeat - KEEP YOUR ANTIVIRUS SOFTWARE UP TO DATE. New viruses and threats appear weekly, keeping your antivirus software up to date and running will minimize the threat to your PC. Perform a Google search on “antivirus software” and you will see a million different options to protect your machine with. I think a valid approach is to select an anti-virus tool from a reputable software company that you trust is developing solutions on a daily basis for new viruses that appear every day. Anti-virus software works to ensure that known viruses do not infect your PC as you read email, surf the web or read data in your CD-Rom drive. Reputable Antivirus software also allows you to schedule regular full PC scans to detect and eliminate any viruses that may be present. (continued on page 7)
Worms A worm is a subclass of Virus, with one difference - it does not 3
Getting the most out of your Co-Op Dollars By Doug Evatt, BrandRPM • Apparel - $0.005 • TV Ads - $0.019 • Half Page Black/White Newspaper Ad - $0.019 • Magazine Ad - $0.033
What is Co-Op?
• Radio Ad - $0.005
Co-Op is a cooperative advertising program that is offered by many suppliers, manufacturers and distributors as a way to help you advertise your company and their product. Cooperative in business advertising context means just what it says; if you spend some money, they will also spend some money. Collectively, manufacturers set aside $30 Billion dollars annually to help businesses stretch their advertising dollars. Surprisingly the majority of it goes unused!
Why Promotional Products Work
Getting the best ROI (Return On Investment) As you look into what you to spend your Co-Op dollars on, you want to make sure you are getting the best return on your investment. What is the most effective way to use your Co-Op dollars? Is it newspaper, TV, radio, billboard or promotional products (including apparel)? Recent studies* show that promotional products offer a better ROI than all the other types of marketing out there. Promotional products have a lower out of pocket expense for the buyer. Calculating the ROI, is done through comparing cost per impressions, which is the average amount of money spent for a campaign, to the number of times that a person(s) see the advertisement. Cost per impression for marketing items: • Hats, Calendars, Bags, Pen $0.002
Promotional Products work well because the same people will see them repeatedly and more new people will come in contact with them on a daily/weekly basis. Repeated impressions are an important part of creating brand recognition. The average promotional product lasts 9 months, whereas the average radio ad last 30 seconds. A recent study* shows 84% of people remember the names of advertisers that have given them a promotional item.
more favorable to the business that has given them a t-shirt. • More than half the consumers who receive a reusable bag keep it for 2 years or longer • 66% of consumers are more likely to do business with an advertiser that gives them a calendar. • 42% of consumers keep promotional hats, because they are attractive, second only to outerwear.
What are members doing with their Co-Op?
Use – Don’t Lose Co-Op Dollars As we come to the end of the year, be sure you check with your vendor reps to see how many CoOp dollars you have left to spend. No matter how big or how small there is a promotional product that you can use your Co-Op dollars on. After all, it is your money and 62% of consumers have done business with the company after receiving a promotional item from them. Unsure of your unused co-op dollars? Reach out to your vendor rep for more information. The ALLPRO Business Development team also has a list of vendors and the percentage of co-op that they offer. Facts about Co-Op Purchases* • A logoed pen is used 3 to 4 times per day for its lifetime. • 57% of US Consumers feel 4
*Advertising Specialty Institute 2014 study involving 4,147 people.
Member Happenings Congratulations to Clement’s Paint who recently added another location to their growing number of stores. The new store is located in Austin, TX and is Clement’s Paint’s third location. Hill Country/Rooster’s Paint also recently added a new location. Their New Braunfels store is their 5th location in Texas. Along with Clement’s and Hill Country/Rooster’s, Hessler’s Paint and Decorating has expanded its presence in the South Florida market with a new location. Their Lake Worth store is their third Florida location. Several ALLPRO members were recently featured in the September issue of Paint & Decorating Retailer magazine. Adler’s Design Center & Hardware’s Harry Adler shared his “out-of-the-big-box” approach to providing a one-stop decorating experience for his customers. Reineke Decorating Center’s Carl Reineke has watched his customers take a more informed, personalized approach to their decorating purchases. Shelby Paint & Decorating’s Brian Eisbrenner is certain his company will continue to thrive because of his business model and the training he provides to his employees. Spectrum Paint was recognized for its explosive growth. With 52 successful stores, Spectrum Paint has achieved the distinction of being the largest independent paint retailer in the United States. Spectrum’s Marketing and Communications Director Gentry Stafford attributes the company’s longevity to their quality employees and support from their suppliers, and predicts continued growth as Spectrum nears its 30th anniversary. Tanner Paint Company of Tampa, FL is proud to have received the industry-wide honor of being the inaugural recipient of the Robert E. Petit Memorial Education Scholarship. This scholarship entitles Tanner Paint the opportunity to become certified specialists by choosing between two PDRA online educational programs: the PDRA Coatings Specialist Course or the PDRA Customer Service Specialist Course.
Supplier Happenings Tower Sealants of Gainesville, GA was recently featured in Paint & Decorating Retailer Magazine. The industry profile highlighted the success of Tower Sealants since its inception in 2005. Tower strives to keep painting professionals in mind as they develop quality product lines, including private label SKU’s, for their customers, like ALLPRO. Their product line has grown from seven SKU’s to approximately 250 since 2006, and is distributed nationwide, as well as in Canada and Latin America. ALLPRO congratulates Tower on their accomplishments.
2015 ALLPRO “U”
2016 Spring Show & Sales Meeting
Benjamin Moore Facility Flanders, NJ Jan 20th – 22nd
JW Marriott Desert Springs Resort & Spa Palm Desert, CA, Mar 16th – 20th
2015 Spring Show & Sales Meeting
2016 Stockholder Meeting
Rosen Shingle Creek Orlando, FL, Mar 18th – 22nd
The Westin Michigan Ave. Chicago, IL, Nov 3rd – 6th
2015 Stockholder Meeting
2017 Spring Show & Sales Meeting
Grand Hyatt Atlanta in Buckhead Atlanta, GA, Nov 4th – 7th
The Westin Diplomat Miami, FL, Mar 8th - 12th
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ALLPRO Welcomes its Newest Staff Members By Susie Fontana
Over the years ALLPRO has had the good fortune of attracting some of the hardest working, conscientious individuals we could ask for. We like to think part of that is because of what ALLPRO is and who we serve. Over the past several months we’ve brought on several new staff members who work in a range of capacities from Account Representative to Warehouse and Marketing Coordinators. We’re proud to formally introduce these new staff members to the group.
Olivia Davis Olivia Davis joined the ALLPRO team on September 8th as an Account Representative. She is currently working on her Liberal Arts course work at Hillsborough Community College. While juggling both a full-time job and school keeps her quite busy, Olivia still finds some free time to paint, sing, and learn piano. She is quite an avid reader and can often be found browsing the shelves of her favorite book store while enjoying an iced coffee. Olivia Davis
Olivia loves spending quality time with her family and two Maltese dogs, Oliver and Milo. About working at ALLPRO, Olivia says, “I really enjoy interacting with my members and helping the ALLPRO Accounting Department run smoothly.”
Jon Clemmons Jon Clemmons joined the ALLPRO team in July as the Warehouse Coordinator for the Southeast Distribution Center. Jon’s prior work experience includes many years at Publix Supermarkets, where he began as a bagger and worked his way up to the Customer Service Desk. Jon uses his organizational skills and attention to detail to ensure that every order that leaves ALLPRO’s warehouse is neatly packaged and accurately shipped. Jon’s many interests include playing soccer, going to the beach with his Schnauzer/Terrier puppy, Maxwell, and learning about computers. In his spare time, he can be found building and refurbishing computers, and practicing website design. About his experiences here at ALLPRO, Jon says, “Working at ALLPRO has been a great learning experience. Everyone I work with is very friendly.”
Jon Clemmons
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Susie Fontana Susie Fontana became a permanent member of the ALLPRO team on September 8th as our new Marketing Coordinator. She has a Bachelor’s degree in Elementary and Early Childhood Education from Florida Southern College. Before joining ALLPRO, Susie worked at PANGO Sales, Inc. in Accounts Receivable/ Inventory Procurement for two years, and taught Kindergarten-3rd grades for 20 years prior to that. Her diverse work experiences have enabled Susie to successfully wear the many hats of a Marketing Coordinator. Susie spends her days collaborating, planning, organizing, and disseminating information to ALLPRO members. In her free time, she enjoys reading, scrapbooking, crafting, cooking, and spending time with her two boys. About working at ALLPRO, Susie says, “I enjoy working with the talented ALLPRO team and contributing to the success of the Marketing Department. It is quite satisfying when I am able to help a member or a fellow ALLPRO employee.” Please join us in welcoming Olivia, Jon and Susie to the ALLPRO family! Susie Fontana
Custom Window Treatments... (Continued from page 2)
Anti-Virus Protection...
It’s Housekeeping Time
(Continued from page 3)
(Continued from Cover)
have created all the tools required to make you successful. Some even offer online training courses to help explain the products, trends, and installation process. Really, all that’s required from you is a small initial investment. Your company’s cash won’t be tied up in resources, waiting for a sale. Each transaction is high dollar, and will generate profits that will create liquidity to float investments in other areas of your business and maintain financial viability. You can see that an investment in custom window coverings is really an investment in your business.
Three of the larger anti-virus software companies are (in no particular order) McAfee, Norton Antivirus, and AVG. Certainly there are many other fine antivirus software suites, and you should speak with you I/T consultant about which software they recommend.
that we require a 60-day advance notice and the ALLPRO brand/proprietary brand files be kept separate.
The important thing to realize is that without anti-virus software you are not only risking your personnel PC and its data, but other PC’s on your store network (including your Point of Sale System potentially) and also you risk spreading viruses to everyone on your email contact list.
Take a moment to consider custom window treatments for your store. Your supplier is ready to assist you in implementing this highly profitable option. They can introduce you to other ALLPRO members that have been in your position, or even get you enrolled in online training courses. The choice is yours; get your cash flowing today.
There is a cost to anti-virus software, but the cost of losing all of your point of sale data, inventory or accounting records is much larger than the investment required to defend against virus attacks. Make sure you have anti-virus software installed, that it is up to date, and that you are performing scheduled full system scans to protect your PC and network from PC viruses.
For more information on adding custom window treatments to your product mix contact Jeff at 608.828.4005 or e-mail jeff.larico@ springswindowfashions.com
For more information about protecting your computer system please contact Al Kinnear at .403.604.3726 or e-mail akinnear@bedsp.com
Company Roster Whether you’re a member or a supplier you no doubt receive a routine flow of e-mail traffic from ALLPRO. For members it typically takes the form of Member by Supplier reports, purchasing updates, bulletin board traffic, show info and such. Suppliers receive monthly purchase reports, payment exceptions, show info, store listings, etc. Each e-mail is generated to specific individuals based on their role within the company. For instance, show announcements are sent to the primary sales contact whereas store listings are sent to accounting contacts. If we don’t have the correct listing and e-mail address for the appropriate contacts then important information will miss its intended mark. Over the years there has been more than one supplier partner miss a show because contacts changed and records were never updated. Likewise, more than one member has run into a delay when trying to buy for a new store because we were never notified a new store had been added. The importance of updating contact lists, program records, pricing, etc. can’t be overstated. It’s essential to maintaining an efficient and smooth flow of business whether you’re a member or supplier. I encourage you to take advantage of the slower season and over the next few weeks review your information on the ALLPRO website. Now’s the time to catch up on those housekeeping chores and ensure everything is up to date and you’re ready for the year ahead.
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Is Pay by Phone the Next Big Thing? Pay by phone has been around for a while now. Coffee retailer Starbucks has been using the feature for years. Just place your order, hold out your phone so the barista can scan a bar code on your Starbucks App, it charges a previously set up account, and off you go. That’s the old model of pay by phone. The emerging trend for pay by phone is based on something called Near Field Communication (NFC), which is a form of short range wireless communication. Essentially the smart phone generates a small electric or magnetic field, which can be picked up within a few centimeters of an appropriately tagged receiver. The user then keys in a PIN number or taps their new iPhone’s Touch ID fingerprint sensor and payment is made. The NFC method was attempted by Google phones back in 2011 but with little success. What is making this an emerging trend? Apple. The new iPhone 6 platform uses NFC technology in its Apple Pay feature. Apple has partnered with Visa, MasterCard and AmEx, eleven banks and over 220,000 merchants in the U.S. to accept Apple Pay.* As a result, it’s expected that Apple will be able to generate the traction Google couldn’t and jump start mobile payments. It may take a few years but look out, it’s coming. *Advertising Age, Sept 24th, 2014
Who’s Boosting Housing Market Sales in the US? According to website exclusive.multibriefs.com immigrant home ownership is on the rise and even gaining on native-born Americans. While native-born home ownership in the US fell between 2000 and 2010, immigrant homeownership increased from 49.8% to 52.4% during the same period. That number is expected to continue to rise. The National Association of Home Builders expects that foreign-born home ownership will account for more than one third of the growth in the housing sector by 2020. This will have a significant impact on the evolution of the market relative to the past few decades. It will affect not only the housing industry but the interior design, home decor and home improvement industries as well. It would seem that while there is a significant wealth gap between native-born Americans and immigrants, immigrants are much more conservative with finances. Culturally speaking, they are oriented more toward saving rather than debt creation. This focus provided a financial cushion that allowed them to weather a poor economy better than their American-born counterparts.
There’s an App for that
Editor/Production Scott Morath
Proofers Julia Thomas Susan Nichols Susanne Fontana
Contributing Writers Scott Morath, Susie Fontana - ALLPRO Al Kinnear, Bigeye Productions Jeff LaRico, Spring Window Fashions Doug Evatt, BrandRPM
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 It’s a ubiquitous catch phrase that is almost a cliché, were it not such a 4946 Joanne Kearney Blvd. relevant and apt descriptor. According to USA Today, nearly 300 new Tampa, FL 33619 • (813) 628-4800 apps are developed each day. Google Play and Apple collectively have Website: www.allprocorp.com over 700,000 apps available for download. There’s one for just about everything – even homeowners looking to redesign and renovate. The Scouting Report is a bimonthly publication According to Reuters, last year Americans spent ~$130 Billion on home of the ALLPRO® Corporation. remodeling projects. That’s the highest amount since 2007. As spending continues to rise app developers are aiming to make design and Printed on recycled paper renovation a bit easier. One such app is Sweeten, which links homeowners to contractors, interior designers and architects. A user posts their project via the app and Sweeten finds experts best suited for the project, regardless of size. Similarly That Décor allows users to point their smartphone at a piece of furniture or pattern and it finds complimentary items that might match the home. It uses image recognition technology to search millions of products from more than 4,000 stores then provides a link for users to purchase. ALLPRO supplier partner Brewster Wallcovering recently joined the movement by offering its own app. The Brewster Interior Wallpaper Finder app helps homeowners and decorators alike. Users can specify colors and styles that are of interest and the app delivers a selection based on that criteria. The user can then take their selection into a retailer to see the actual pattern before making a final decision. It essentially eliminates the need to sort through multiple wallpaper books in search for a design. Technology continues to evolve at a rapid pace and how the independent paint channel integrates these developments may impact the channel’s success in years to come.