Scouting Report - September/October 2015

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An ALLPRO® Publication SEPTEMBER / OCTOBER 2015

by Scott Morath

Getting to Know our New EVP During last year’s Stockholder Meeting it was announced that Joe Poliseo would be retiring as the Executive Vice President of ALLPRO in 2016. It was also announced a transition committee had been formed, which was comprised of ALLPRO’s current president, vice president and past two presidents. The purpose of the committee was to seek out, evaluate and ultimately recommend a potential successor to the board. The committee set about their task and by June of this year, after vetting several candidates, made their recommendation. Not long after, it was announced that Michael Beaudoin had been selected as the next Executive Vice President of ALLPRO. Many of us are already familiar with Mike. His career in the paint industry began in 1995 when he took a job with Harvey Gerstman Associates, a rep agency that still services industrial and contractor supply product manufacturers. Mike initially called on Home Depots and a handful of independent accounts throughout New England. In 1997 he was relocated to metropolitan New York where he serviced area paint stores and local distributors. It was here where Mike developed a passion for the business. As he puts it,

“I developed close relationships with key personnel among my manufacturing clients as well as the customers I called on. It was hard work but very rewarding and I’m happy to say I was successfully able to expand share of our product lines and contribute to a growing agency.” Mike’s dedication and hard work didn’t go unnoticed. By the time he left the company in 2007 he had become a Territory Sales Manager responsible for a team of six representatives and over $30M in sales. Mike left Gertsman Associates to take on the role of National Sales Manager for Portland based Purdy Brush (newly acquired by Sherwin - Williams). As a National Sales Manager who oversaw a team of three regional managers Mike quickly acquired a deeper understanding of the paint industry on a national level. He developed relationships with west coast based paint manufacturers, hardware coops in the Midwest, and key customers and chains throughout the U.S. and Canada. Mike and his team traveled continuously from 2007 through 2009, in an effort to develop business

and capitalize on any opportunity to offset the prevailing economic recession. Once again, tenacity paid off and in 2009 Mike was promoted to a Director of Sales position with Purdy’s parent company, Sherwin - Williams. This role took him to Cleveland where he oversaw seven regional/national sales managers and over 20 manufacturing representative agencies, as well as multiple brands like Purdy, White Lightning, Bestt Liebco, and Pratt & Lambert. About his role as Director of Sales Mike (Continued on page 4)


Two Strikes and You’re Out by Kelly Riggs

By 1986, the company teetered on the edge of bankruptcy, requiring a major reorganization and a new president. There are a couple of invaluable lessons inside the Wendy’s story: First, it illustrates the power of highlighting a competitive advantage, and doing it the right way.

In 1984, Wendy's introduced a stunningly popular television commercial that featured a grandmotherly old woman named Clara Peller. The tag line of the commercial - delivered in inimitable fashion - was, "Where's the Beef?"

At the time, Wendy's had more beef in their hamburgers than their two main competitors (McDonald's and Burger King), so they chose to emphasize that point in a humorous fashion that targeted the competition – without naming names. Imagine if the commercial spot had said this, “Our burgers have 50% more beef than the other guys.”

Bet you remember it.

Interesting? Vaguely.

The TV spot, which vividly illustrated a short-lived competitive advantage, led to a record sales year for Wendy's as revenue jumped 31 percent in 1984 and 19 percent in 1985. But by 1986, Wendy's was in trouble, according to (then COO) James Near.

Memorable? Not so much.

“Breakfast was failing and there were big shifts in the marketing department,” stated [Wendy’s] franchise owner Bob Goodrich. “We were floundering and didn’t know where to go.” In addition, the quality in some of the restaurants had declined, because the original owners had sold them to people who did not operate them personally or care about the company’s standards. By the end of the year, company morale was sinking and one in every five Wendy’s franchises was in danger of bankruptcy. A bad strategic move AND bad customer service?

"There is no such thing as three strikes when it comes to customer service." Companies tend to rely on the same worn out phrases when they describe what they mistakenly believe are competitive advantages: We have great quality. Our service is unmatched. Our products are innovative. We’ve been in business 50 years. Who cares? Everyone – and I mean everyone – says exactly the same thing. So, how differentiated are you in the mind of the customer? 2

Second, this story forcefully describes the results of failing to really take care of your customers. The most powerful competitive advantage imaginable can be squandered if you don't deliver your product or service well. Nowhere is this more easily illustrated than in a restaurant. If the food is good and the service is poor, what do you tell others about the restaurant? Even if you admit the food was fine, you’re enthusiasm will be tempered by the poor service. Ultimately, your recommendation will be to try someplace else. Sure, you might give the restaurant a second chance, but two strikes and they’re out. There is no such thing as three strikes when it comes to customer service. A couple of thoughts to ponder: • Can you describe your company's competitive advantages? Before you say "great products" and "great service," or something equally nebulous, think carefully. Which one of your competitors doesn't claim to have great products and great service? Quantify your competitive advantages and you can truly differentiate yourself from your competitors. • Are you delivering your product or service according to the standards that customers demand? Do you pay attention to detail? Do you follow-up in a timely fashion? Do you respond to your customers' needs? Do you communicate effectively? Clearly, ridiculously good service can be a stunning (Continued on page 4)


Your Window and Door to the Outdoors: Vertical Blinds and Other Options for Covering Patio Doors by Jeff LaRico, Nat’l. Acct. Mgr., Designer & Int’l. Sales, Springs Window Fashions

Vertical blinds are a classic solution for covering patio doors. They are a perfect fit for very tall and very wide spaces and can be pulled open for maximum light or closed to darken the room. The vanes on vertical blinds can also be tilted for a partial view to the outside while blocking the sun’s glare, or shielding your home from the gaze of a nosy neighbor. They offer terrific flexibility in light filtering too. One great benefit of vertical blinds is their ease of use. The vanes can be swept aside quickly with a wand control or a cord for clear access to the outside patio. There are even options for pulling the vertical vane stack to either the right side, the left side, or split down the middle. It all depends on how much space you have, the size of your door opening, and your personal preference. In the past, there have been some concerns about the functionality and style of vertical blinds, but these have largely been addressed by the manufacturers. For instance, to prevent vertical

blinds from blowing around noisily when positioned over air vents, a hanging chain can now be added to the bottom of the vanes (upon request) to keep them steady, quiet, and still. In regards to style, vertical blinds have also been updated to feature a wide range of on-trend colors and beautiful materials. Wide window and patio doors can now be covered with natural woven wood, solar shade or cellular shade material; or fabric, vinyl, wood, or composite vanes. Another unique variation is sheer vertical blinds—opaque vanes encased in sheer fabric. These provide both room darkening and light filtering properties while softening the look of the blinds, making them aesthetically similar to drapery. Vertical blinds can also complement other window treatments in your home, such as horizontal fabric blinds, wood blinds, or solar shades. Most manufacturers offer the same colors, styles, and materials for multiple sizes of window coverings. With vertical blinds that are an exact match to other window treatments, a visual sense of harmony can be created in the home. As mentioned above, cellular shades can be vertically oriented for large windows and patio doors. 3

Cellular verticals shades differ from the other options since they do not have vanes to tilt to control the light. Instead, they are offered in light filtering, room darkening, or blackout opacities. A key benefit to this cellular option is their honeycomb cells, which are designed to add an extremely effective layer of insulation to large doors and windows, thus saving on energy bills year round. Since the product is also cordless, it is also a safer alternative for homes with small children. Finally, sliding panels are an option to cover patio doors. These panels are vertically aligned sheets of solar or natural shade material that slide on channels within the headrail. The consumer can select from two to five panels, depending on how completely they would like the window covered. Sliding panels can be opened and closed with either a wand or cord control, allowing for easy access to the outdoors. As a window and door to the outdoors, there are a number of ways that customers can cover patio doors. Consider carrying the product lines mentioned in this article to meet those needs — especially the latest in stylish, versatile, and functional vertical blinds. At Springs Window Fashions, our blinds, shades, and draperies have helped people enhance their environments and achieve their design dreams since 1939. Visit our website at www.graberblinds.com or www.springswindowfashions.com to see for yourself how we create products that improve the lives of our customers. For more information on Graber products, contact Jeff LaRico via email at jeff.larico@springswindowfashions. com.


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says, “It was a great experience! I learned so much more about how large companies organize and operate, from budgeting to planning to sales structure, and profit & loss. The experience also helped to broaden my understanding of key large customers and their needs.” In 2011 Mike was offered an opportunity to move back east to take on the role of Vice President of Sales for independent distributor and ALLPRO member, PACOA. As Mike puts it, “This was a unique opportunity for me to work with a friend and very talented owner, Steve Geismar. Steve was looking for a bit more structure and the right mix of people to help move his company to the next level.” He elaborates, “In this role I was responsible for recruiting a 22 person sales force to include two regional managers, while strictly adhering to an acceptable ratio of gross margin and operating cost (general P&L responsibility). We routinely competed with much larger companies who had greater resources simply by understanding our value proposition or ‘what we do best.’ It was an invaluable experience where I not only gained a deeper understanding of how distribution works, but also of the challenges that independent paint retailers face on a daily basis as they do business in a changing market with large competitors.” Mike adds, “At PACOA I gained an insider’s perspective on the many different brands that drive the paint dealer’s business today and how their respective manufacturers are structured and go to market. I was also fortunate to develop close relationships with many of these manufacturers.” From sales to management;

manufacturing to distributing; east coast to west coast and everything in between, Mike has had a hand in almost every level of this industry over the past twenty years. When asked about his new role at ALLPRO Mike says, “I am extremely honored to be offered the position of Executive Vice President at ALLPRO and I believe the culmination of all my prior experiences will help me in this capacity. Our industry is continually changing and it is very important that ALLPRO be on the cutting edge of that change and that we continually challenging ourselves, so that we add maximum value to our members. It is also important that we position ALLPRO as an ‘entity’ in the eyes of our manufacturers so that our collective volume receives the best focus and talent from them to help drive our business.” He goes on to say, “The members that make up the ALLPRO Buying Group are some of the best, hardest working entrepreneurial minds in the industry. How well ALLPRO can help harness that power and position it will help ensure all of our success in the future. I am extremely proud to be a part of this group and will work tirelessly with the great team Joe has cultivated and continue its work into the future.” Mike and Joe will serve as coExecutive Vice Presidents up until April of 2016, when Mike will take on the full measure of the position. During the interim he and Joe will work closely together to ensure a smooth and seamless transition. Please join us in congratulating Mike on being selected as the new Executive Vice President of ALLPRO – only the third person in our 50+ year history to hold that title. 4

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competitive advantage. And, in my experience, service that is that good is easy to quantify. But, if your service is mediocre or worse, you’ll never have a great company. No matter how good your product. About the Author: Kelly Riggs is a two-time National Salesperson of the Year. A former corporate Sales Executive. A successful entrepreneur. Now, as founder of Business LockerRoom, Inc., Kelly has spent the last nine years as a sales strategist and leadership coach. A highly acclaimed platform speaker, Kelly Riggs is recognized as a dynamic thought leader in the fields of leadership, sales development, and strategic planning, working with organizations that range in size from $3 million to over $5 billion in annual sales revenue. Kelly also hosts a weekly, online business radio show called #BizLockerRadio, which airs live every Monday at 3 p.m. CST. He has written two books: 1-on-1 Management™: What Every Great Manager Knows That You Don’t, and Quit Whining and Start SELLING! A Step-by-Step Guide to a Hall of Fame Career in Sales. For more information, visit www.BizLockerRoom.com. Kelly will be our guest speaker at this year’s ALLPRO Stockholder Meeting. His topic will be “Winning Business in Any Economy” and we will provide a free copy of his 1-on1 Management book to each stockholder company in attendance.


ALLPRO

®

Company Profiles

ALLPRO has had the good fortune to continue to add the highest quality companies in the industry to the group. We are pleased to profile some of our newest member and supplier partners.

EPMAR CORPORATION

also manufacture Marine Coatings for pleasure boats under the Pettit Paint Label.

• Founded: 1972

• Company Slogan: “The Perfect Paint System that Beautifies and Protects”

• Location: Santa Fe Springs, CA • Website: www.epmar.com

CORE DISTRIBUTION, INC.

• Current President: Joseph Matrang • ALLPRO Contact: George McCullough

• Founded: 2001

• # Full-Time Employees: Over 70

• Location: Minneapolis, MN

• EPMAR is a coatings and adhesives company that makes aerospace, marine, architectural, agricultural, and electronics/water purification products. Our brands include Kemiko Concrete Solutions, Syndeck Marine Products, Tuff Dog Sealants, and EPMAR OEM Solutions.

• Website: www.xtendandclimb.com • Current President: Mitch I. Kieffer • ALLPRO Contact: Carlos Mendiola, Jill Panvica, and Dawn Bouquet • # Full-Time Employees: 9

• EPMAR is the coatings and adhesives division of Quaker Chemical Corporation – a publically traded billion dollar company. EPMAR was acquired in 2002 by Quaker from private individuals. EPMAR not only manufactures the products mentioned above, but also makes OEM coatings and adhesives for the parent company’s core industrial business.

• Xtend+Climb® is focused on bringing a range of innovative climbing products to the professional and domestic DIY landscape by designing safe and easy to use solutions, which positively impact the lives of consumers. • The Xtend+Climb® brand was launched by Core Distribution, Inc. in 2001. Core Distribution, Inc. is a product designer, global manufacturer and supplier dedicated to bringing innovative patented product to consumers worldwide. Since 2001, Xtend+Climb® has been awarded 47 patents for climbing products, in 19 different countries, which has not only made us a worldwide leader in climbing innovation, but the world’s largest manufacturer of telescoping ladders.

RAMUC POOL PAINT • Founded: 1934 • Location: Rockaway, NJ • Website: www.ramucpoolpaint.com • Current President: John Ludgate • ALLPRO Contacts: Kevin Harrington and Rebecca Spencer

MORGAN PAINT COMPANY

• # Full-Time Employees: 50 • For more than 80 years, RAMUC has supplied the pool and recreation industry with chlorinated and synthetic rubber, epoxy, and acrylic pool and deck coatings. Our experience, coupled with our history of superior customer service and quality products, have established our commitment to exceed your expectations. Whether you have a backyard pool or spa, an Olympic size pool, or a waterpark attraction, our total coatings program offers quality products, superior service, and proven success.

• Founded: 1996 • Location: Hood River, OR • Website: www.morganpaintco.com • Current President: Kevin Morgan • ALLPRO Contact: Jake Morgan • # Full-Time Employees: 4 • # Part-Time Employees: 1 • Morgan Paint Company is a family owned and operated paint store and window coverings center, which was founded in 1996 by Kevin and Jean Morgan. We offer quality products and great customer service.

• Ramuc is a leading manufacturer of swimming pool, fountain, and deck coatings. Founded in 1934, initial manufacturing sites included Medina, OH and Newark, NJ. Today, Ramuc products are manufactured at our Rockaway, NJ facility, where we

• Company Slogan: “Best Paint, Best Advice”

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In Memoriam We would like to express our condolences to the family of Russell C. Dages, Jr., who passed away in early August. Russell was the retired owner of Dages Paint Company, ALLPRO member since 2007. Russell dedicated nearly 60 years of his life to the family business his father began in 1930 and then passed the family legacy to his daughter Anne Dages Nutt in 2005. He volunteered in his community through Kentucky Right to Life and Meals on Wheels. Russell was devoted to his family and a dear friend and colleague to many, and his presence will be sincerely missed. Member Happenings ALLPRO is pleased to congratulate the following members who have recently expanded: A & E Paints opened its 2nd location in Port Charlotte, FL; Clement’s Paint & Decorating acquired its 4th store; McCormick Paint opened its 32nd location in Midlothian, VA; and Ricciardi Brothers opened its 32nd location in Chatham, NJ and its 33rd in Bedminster, NJ.

Supplier Happenings Benjamin Moore has been bustling with activity, as they recently announced an exclusive relationship with Angie’s List, which provides exclusive benefits and advantages such as online sales opportunities and advertising discounts. Visit www.angieslistbusinesscenter.com/benjaminmoore for more information. In other news, Benjamin Moore opened a new distribution center in Oakland, CA; partnered with Consentino in New York in March for Dining by Design, which is an event benefiting Design Industries Foundation Fighting AIDS (DIFFA); and to round out their accomplishments, in a recent J.D. Power and Associates survey, Benjamin Moore was listed among the top three interior paint brands. IPG/Intertape has been given the Energy Star Partner of the Year – Energy Management Award by the U.S. Environmental Protection Agency for the second consecutive year. The award recognizes a company’s outstanding efforts to improve the energy efficiency of U.S buildings and facilities through its actions. Purdy launched a bilingual website, with all of the website’s features and materials available in English and Spanish, including an enhanced tool-selector guide and how-to videos in Spanish. According to Purdy, the move was made to address its growing Hispanic consumer base. Wooster Brush Company recently launched its newly redesigned website. New educational content, digital assistance with product selection, a retailer locator, and an enhanced search feature are among the improvements. According to Scott Rutledge, Vice President for Marketing at Wooster Brush, “Our website…will help us educate a much larger audience so that they’re able to purchase the best performing tools in the world.”

2015 Stockholder Meeting 2017 Stockholder Meeting

Grand Hyatt Atlanta in Buckhead Atlanta, GA, Nov 4th – 7th

Hyatt Regency Atlanta Atlanta, GA, Nov 2nd - 4th, 2017

2016 Spring Show & Sales Meeting

2018 Spring Show & Sales Meeting

JW Marriott Desert Springs Resort & Spa Palm Desert, CA, Mar 16th – 20th

Walt Disney World Dolphin Orlando, FL, Mar 8th - 11th, 2018

2016 Stockholder Meeting

2019 Spring Show & Sales Meeting

The Westin Michigan Ave. Chicago, IL, Nov 3rd – 6th

JW Marriott Los Angeles LA Live Los Angeles, CA, Mar13th - 17th, 2019

2017 Spring Show & Sales Meeting The Diplomat Miami, FL, Mar 8th - 12th

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In-Store Demos and Workshops SELL! by Natasha du Coco amount! Any salesperson can boost sales, just by strictly following a well-developed script. Today, companies recognize the benefits of showing a product in use (consider the ubiquitous infomercial: they wouldn’t still be everywhere if they didn’t work). Although some products are easier than others to demonstrate, most products can be “demonstration” products.

Tell people what you want them to know, and maybe they’ll understand it and even remember it for a while. But show them, involve them, and they’ll “get it” and retain it for some time. When it comes to showing how a product works and involving the audience, “getting it” means not just understanding the message — it means buying the product. The benefits of using product demos as a sales method are well founded. The fact is, product demos are huge, and they’re spreading from infomercials to retailers. Why? Because demos sell.

Once salespeople have done a free in-store demo, the next step is to sign interested customers up for a paid workshop, so they can actually use the products themselves. You have time to ask the (potential) customer about their needs and expectations during the free demo, which makes it easy to sign them up for the right workshop. Stores can offer different workshops to all kinds of students, from beginners to professionals who specialize in a specific area. Paid workshops are showing a huge increase in popularity and will definitely increase product sales. Product demonstration classes draw many students who are looking to complete home-rehab

projects on their own, without the expense of a professional. These customers are interested in achieving professional results at a fraction of the “professional price.” On the other hand, we also see a growing number of homeowners attending these classes who don't have the time to finish rehab projects themselves, but still want to know the creative process behind them, so that they can create designs knowledgeably with their contractor. Why are workshops so successful? Simple…people like to pick up tools and transform a room or an old piece of furniture into something unique and feel good about the result. Students love to show their finished projects to their friends and family, and this is the best advertising tool - word-of-mouth referrals are the most powerful referrals you can get. To maximize sales, workshops need to be held in your store, not in a meeting room or other separated area, to ensure that the customers who didn't sign up for the workshop still see what's going (Continued on page 8)

The biggest plus may be that it’s active and proactive — salespeople are engaging customers from the start, rather than waiting for them to take an item off the shelf themselves. Passive products, those on display, put salespeople at the mercy of the customers walking by. But demonstrating products puts the salesperson in control of the number of shoppers they come into contact with, and of the selling process itself,” says Natasha du Coco, the artist behind the success of Art du Coco. Salespeople who proactively demonstrate products can increase sales by a factor of five! That’s five times the typical sales

Free demonstration at ALLPRO member Regal Paint in FL.

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on. The workshop educator should always invite the passersby to stick around and listen and observe. This results in many new sign-ups for future classes and stirs the excitement among the current students because they now have an audience! We have noticed that more people stay and watch a workshop if it's done in the store, and that these onlookers love to hear the opinions of the students about the product quality and ease of use… and all of the creative possibilities! A great way to boost sales after a workshop is to offer students a discount when they go shopping right after the class. Educators literally need to take them by the hand and walk them to the product section and actively sell and up-sell the products for their projects. This approach gives you an “extra” salesperson…the educator…in your store who knows what he's talking about and has earned the customers trust during the class. This is a win - win situation for everyone. Natasha du Coco is the artist behind the success of Paint du Coco, a line of chalk painting products from Greenfrog Distribution/Art du Coco. Natasha and her team have expertly taught classes on workshops and product demonstrations nationwide that have helped boost product sales for many independent store owners. Art du Coco will be giving a vendor presentation at this year’s ALLPRO Stockholder Meeting, so be sure to attend. Please feel free to contact Natasha at info@artducoco.com or 310-9624635 for more information on product demonstrations and workshops, and visit the Paint du Coco website at www.paintducoco.com or www.artducoco.com to learn more.

Stockholder Meeting Registration is Open by Scott Morath Registration for the 2015 Stockholder Meeting is officially open. This year’s meeting will feature keynote speaker Kelly Riggs (see his article in this issue). Kelly is recognized as a dynamic thought leader in the fields of leadership, sales development, and strategic planning. He’ll present Winning Business in Any Economy on Friday morning. Friday afternoon each of our architectural coatings suppliers will present to the group as a whole and each presentation will last about 25 minutes. Saturday morning we’ll break up into small groups and move between rooms to hear from several of our supplier partners as they offer a series of presentations, each about 20 minutes. Presentations will include everything from emerging trends or technologies in a particular segment, new value added services or other initiatives they may be introducing, information on how to get into a particular product segment, best business practices for specific categories, etc. The focus will be to inform, educate, and in general provide value. That said, this year’s meeting should be very informative and educational. As always we’ll have plenty of opportunity to network as well. What won’t be at this meeting? This year we will not host table top exhibits as we have for the past two years. Next year however, and each year thereafter, will include table top exhibits at the Stockholder Meeting. This is due to the member feedback we received from last year’s follow up survey where 70% of you indicated you wanted table top exhibits at every Stockholder Meeting. At the time that survey was sent out we were already committed to the format and space for this year’s meeting. To register for the meeting go to the ALLPRO site, click on Events and

Editor/Production Scott Morath

Contributing Writers Scott Morath, Susie Fontana - ALLPRO Kelly Riggs - BizLockerRoom Jeff LaRico - Springs Window Fashions Natasha du Coco - Paint du Coco

ALLPRO® President Michael Gleason

Exec. Vice President Joe Poliseo Mike Beaudoin

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 4946 Joanne Kearney Blvd. Tampa, FL 33619 • (813) 628-4800 Website: www.allprocorp.com The Scouting Report is a bimonthly publication of the ALLPRO® Corporation. Printed on recycled paper

select the 2015 Stockholder Meeting. Simply complete both the “Hotel Reservation” and “Register Now” buttons to make your room reservation and register for the meeting. Supplier partners not invited to speak are welcome to attend our Friday evening reception. If interested, please contact Scott Morath or Susie Fontana at the ALLPRO office for details. We look forward to seeing each of you at this year’s meeting and don’t forget – you must register by Tuesday, October 6th to attend. Thank you.


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