© 2011 All Rights Reserved. Global Design Center 11.0203 Shown in Platinum (PLT) and Tiger Orange (TIO).
duet
™
super stacker
greenguard® certified
DUET SEATING.
2007 – 2011 ofda manufacturer of the year
1.800.220.1900 usa
1.877.446.2251 can
thinkglobalstyle.com
news Twenty-Five Years and Counting for PA Dealer Royal Business Interiors
25
Congratulations to Randy Meyerhoff and his team at Royal Business Interiors in York, PA, which this year celebrates its 25th year of service to the local business community.
Randy founded Royal in 1986 after working several years for a local Westinghouse dealership. When Westinghouse bought Knoll International in 1990, Royal became an exclusive Knoll dealer for the Central Pennsylvania market and the relationship has blossomed ever since. Some 90% of Royal’s business comes from Knoll products, Randy reports. “We don’t try to be all things to all people but focus almost exclusively on project business,” he explains. A fierce commitment to service is also a key part of the Royal culture that, says Randy, has paid off handsomely. “We don’t have a large customer base but they tend to be very loyal,” he says proudly, noting that many current customers have been with the dealership for its full 25 years. Like just about every dealer, Randy and his team have found the past few years challenging but, he says, their low overhead and ability to adjust quickly to changing market conditions is helping them weather the storm. “We’re currently installing some very nice projects and even though business is still more sluggish than we’d like, we’re hoping for improvement later this year and ready to make the most of it when it comes,” he says.
American Business Interiors, FL Dealer, Earns ‘Most Admired Company’ Honors from Local Business Magazine There were smiles all round at Melbourne, FL-based American Business Interiors (ABI) recently, as local business publication Suncoast Business magazine, with a total readership of over 50,000 in Florida’s Brevard County, included the dealership in its annual list of the area’s Most Admired Companies. The list was selected by over 100 local business and community leaders who were recruited by the magazine to evaluate possible candidates. “We have an outstanding team of people here who take fantastic care of our customers and the listing is really a tribute to all their hard work,” said president Rob Perers. continued on page 4 AUGUST 2011
OFDEALER
Where Do You Stand on the Transactional Opportunity? There was a time, perhaps, when contract dealers could Simon De Groot dismiss the lower reaches of the office furniture food chain as more trouble than they were worth. As managing editor Alicia Ellis notes in her article, many dealers felt the dollars just weren’t there to justify the effort and all too often, what little profit there was they saw eaten up by returns, repairs or other hassles. But that was then and this is now. Today, blended solutions that combine traditional contract product with more value-based offerings from the transactional side of the business have become the norm, rather than the exception for many dealers. End user budgets are tighter than they’ve ever been and dealers need the ability to offer solutions that respond to those tight budgets or risk seeing long-time customers go elsewhere. At the same time, the growth of the home officebased worker is fueling demand for transactional products and creating a promising new opportunity for proactive dealers who commit to developing the easy-to-order, quick-to-deliver value proposition that drives the home office market. We hope you’ll find this month’s issue helpful as you determine how your own dealership should respond to the transactional opportunity. It may not be a market that makes sense for every dealer, but in these uncertain times, it’s certainly one every dealer should consider seriously.
continued on page X
PAGE 3
Dealer News continued from page 3 Rob’s father Ralph founded ABI, a longtime Steelcase dealership, in 1969 and over the past 40-plus years, says Rob, it has built up a solid base of long-term customers and a stellar reputation for service. Florida has not been an easy place to do business for anyone of late and the recent downturn made for more than just a few challenges for Rob and his team.
Con-themed event but this year, they came up with a novel approach that not only allowed them to present the latest and greatest new products from their manufacturer partners but also positioned the dealership as a progressive, tech-savvy organization. Scott Harrison and his team transformed
this year’s event into a celebration of social media and technology, inviting attendees to submit their favorite smartphone apps. “We chose 'Social Media and Technology' because it is a theme that everyone can relate to today and it allowed us to have fun with our give-a-ways, prizes and showroom decorating,” explained Scott. Close to 200 of the local A&D community and other customers and prospects voted their support of the idea by attending and came away with details of 15 new apps to make life more fun and productive.
But, he says, there are still projects out there and the dealership is working harder than ever to track them down and find new ways to maintain momentum. The services side of the business, he reports, has come in for special attention, with feasibility studies for clients and moves and reconfig work emerging as solid new revenue sources.
Submissions included apps to keep you fit, go sky-watching and even plan your wedding and a good (and educational) time was had by all. “Our ‘Spring/Pre-Neocon’ open house is as much about building strong relationships and accentuating our company brand as it is about selling,” says Scott. If response this year offers any indication, it looks like Scott and his team are meeting that goal and then some! continued on page 6
BarclayDean, San Francisco Dealer, Hosts Tech-Themed NeoCon Open House San Francisco-based BarclayDean is hardly the only dealer to offer its customers a Neo-
Keep Cords Handy Accessory cords now are just a finger-touch away, not in a tangle under the desk. Cords are kept neatly at hand with the retainer balls holding the plugs. When an accessory cord is needed just pull out, plug in, and go! Easy… Size: 3” OD going into 2 1/2” hole. CHP3 consists of cap, liner, and five balls. Colors: Black with black balls; Navy grey with grey balls; White with electric pink balls.
CHP3 “FINE ARCHITECTURAL HARDWARE FOR YOUR FINE FURNITURE”®
w w w . m o c k e t t . c o m Ü 8 0 0 - 5 2 3 - 12 6 9 AUGUST 2011
OFDEALER
PAGE 4
Dealer News continued from page 4 Interior Workplace Solutions, PA Dealer, Hosts Summer ‘Campfire’ for Customers
WorkSpaces Opens New Office in NYC Also taking the expansion trail this month is Washington, DC-based WorkSpaces LLC, which has opened an office in the Chelsea Gallery district of New York City. "The launch of WorkSpaces LLC in New York City represents the continued success of our model and business partnerships, as well as our desire to bring our innovative Service By Design approach to solving commercial interior challenges to additional markets, commented Tom McGuire, founder and president of WorkSpaces. "Our launch in New York City coincides with the imminent opening of a new showroom for Inscape Solutions, one of our closest manufacturing partners,” he added. Leading the WorkSpaces team in New York is Elsa Driscoll, principal, business development; Brett Kaplan, principal, sales team manager, and Jamie Meyers, principal, senior project manager.
In Allentown, PA, it was time to gather round the campfire and enjoy good food and fellowship at Interior Workplace Solutions recently, as David Torrence and his team hosted their Summer "Campfire" Showcase to welcome in the season and highlight some of the exciting new products from Steelcase and the other fine vendors they represent.
In addition to its Washington, DC headquarters and New York City location, WorkSpaces also operates an office in Baltimore, which it opened last year.
The dealership put up a lawn tent, cranked up the barbeque and the smores station and welcomed close to 100 customers and guests for the event. In addition to highlighting the Turnstone Campfire line from Steelcase, IWS also set up 12 different stations in its showroom, where vendors could present their own new products. “This was definitely one of our best customer events yet,” reported David. “Our manufacturers provided outstanding support. Our own team worked hard to make it a success and most important of all, our customers had a great time!”
Union Office Interiors Opens Boston Showroom Business conditions might still be challenging but that doesn’t mean there aren’t still expansion opportunities for forward-thinking, proactive dealers. Case in point: Wilmington, MA-based Union Office Interiors, which last month announced the opening of a new, 3,700 sq. ft. showroom in downtown Boston. The new location joins the dealership’s existing operations in Hanover, MA, Augusta, ME and the Wilmington corporate headquarters. The Boston showroom is designed to provide an increased focus on the A&D community in and around the Boston area, the company said, with most of the space devoted to Allsteel, Gunlocke and other members of the HNI family, the dealership’s primary manufacturers. The showroom opens this month, with a grand opening event planned for September. “We are excited to return to Boston. We started on Union St., which is where our name came from, so to return to our roots is exciting for us,” said Union Office Interiors’ president Louis Fragoso. AUGUST 2011
OFDEALER
Floorplan for Union Office Interiors new Boston Showroom.
PAGE 6
BIFMA: June Orders Up 12%; Shipments Up 19% Earlier this month, the Business and Institutional Furniture Manufacturers Association (BIFMA) released its market statistics for June 2011 and once again, the news was mostly positive. BIFMA estimates June orders increased 12% year-over-year versus the 17% increase posted in May. Analyst Budd Bugatch of the Raymond James investment house pointed out that the prior year comparison for June was about 500 basis points more difficult than May and that on a two-year basis, June order growth was essentially in-line with May.
“The monthly BIFMA statistics continue to surprise to the upside in the face of flagging GDP growth, tepid new hiring and pervasive weakness in new office construction,” said Bugatch. He said he remains “cautiously optimistic” on prospects for the contract office furniture industry, citing vastly improved corporate profitability and large cash reserves held by businesses.
Bugatch also noted that June orders increased 20% over May, posting better than normal seasonality. The 20-year median May to June increase has been +14%, Bugatch noted.
Bugatch also said the industry is continuing to benefit from pent-up demand from projects that were deferred or cancelled during the “Great Recession” and argued high vacancy rates are driving office churn as companies look to save money by chasing lower lease rates and/or consolidating space.
June shipments increased 19% year-over-year, also moderating compared with +21% last month against a tougher prior-year comparison. On a two-year basis, June shipment growth accelerated by about 200 basis points.
“We continue to believe that the industry is in a multi-year expansion, though acknowledge that sustainable expansion over the longer term will ultimately require better job growth and more significant net absorption of office space,” Bugatch added.
ECi Adds 259 New Customers during First Half of 2011
New Free Training Courses from 20-20 Technologies
Dealer technology provider eCommerce Industries, Inc. (ECi), makers of the Team Design and DDMS software programs, announced last month that 259 new customers signed on during the first half of this year. ECi said it also experienced record sales during the second quarter.
20-20 has launched its first free self-paced training course for 20-20 Visual Impression. The 60-minute session is an entry level overview course for 20-20 CAP Designer, Giza Designer and Worksheet users to learn how Visual Impression can be incorporated into their projects.
Sales of new systems were made worldwide across the entire line of ECi business systems including 73 for the Lumber Building Materials and Hardware (LBMH) division, 73 for the office products, equipment and furniture division and 24 for software for manufacturers.
“20-20 is excited to introduce self-paced courses into our training curriculum. It gives users a free overview to get them going on the software they just purchased. In addition, it allows for the flexibility of a training course at their convenience, when they want, where they want,” said Vanessa DeKoekkoek, trainer for 20-20 Technologies.
“The fact that ECi continues to add a record number of new customers proves the emphasis independent businesses are placing on technology solutions,” said Ron Books, president and CEO of ECi. “Those taking a proactive approach to technology are growing.” AUGUST 2011
Self paced training courses for 20-20 CAP, Giza and Worksheet will be launched soon, the company said. For more information, call 800-227-0038 or visit 20-20 Training for a full list of available courses.
AIS Launches Mobile Web Tools Manufacturer AIS has launched new mobile tools geared to assist dealers and sales representatives on the go. The company has created an iPad-friendly website, giving users the ability to access tools from the AIS website while on the go. Additionally, the company now boasts an app in the Apple App Store for both iPad and iPhone devices. The new mobile tools include: AIS Touch, a mobile site, accessible on an iPad that dealers and sales representatives can use to present clients with AIS photos, finishes, brochures and gain instant station pricing. AIS’ iPad and iPhone applications, that give users access to an extensive library of product literature. The AIS app for the iPad/iPhone is available as a free download from the App Store and can be found by searching for “AIS Systems”. continued on page 8
OFDEALER
PAGE 7
Industry News continued from page 7 “At AIS, we strive to provide our dealers with tools to aid in the fluidity of their sales. Leveraging technology with AIS Touch and the new App in the Apple App Store illustrate the next step in our continued efforts to assist our dealers in the field,” said Rob Lazarus, executive vice president of sales and marketing, AIS.
National Office Furniture Releases Third Annual Corporate Social Responsibility Report National Office Furniture has released its third annual Corporate Social Responsibility (CSR) report. The report listed National’s initiatives to reduce hazardous waste, offer a sustainability-oriented product line and behave as a solid corporate citizen. Report highlights include: Certification of 100% of companymanufactured products under the ANSI/BIFMA level 2 and 3 programs Nearly 90% of solid waste recycled or reused in 2010
AUGUST 2011
A reduction of 33% of hazardous waste produced per unit 1.4% reduction of VOCs on top of last year’s 24% reduction 98% of National’s loads are delivered via SmartWay certified carriers Recordable injuries are down over 91% since 2004 Donated new furniture raising over $40,000 for local Habitat for Humanity Assessed chemical usage; implimented plans to reduce and eliminate chemicals of concern Life Cycle Assessments (LCAs) completed on wood casegoods with all products scheduled to undergo this evaluation “We embrace the opportunity to be a good corporate neighbor. That’s the beauty of placing sustainability and social responsibility at the core of your business; it improves everything you do and can positively impact your business, personal life, community and the environment,” said Kevin McCoy, general manager, National Office Furniture, and vice president, Kimball International.
OFDEALER
Mockett Holds 26th Annual Design Competition Doug Mockett & Company is currently accepting new entries for its annual design competition. The competition, now in its 26th year, aims at discovering the most innovative and creative furniture parts, accessories and hardware. First Place winners receive $1,000, an engraved trophy and a royalty based on sales. Mockett boasts that they send out six-figure royalty paments each year, so this is the place to submit your design, the company said. Send your design, drawing, or model Registered Return Receipt or FEDEX to: Contest Administrator, Doug Mockett & Company, Inc., P.O. Box 3333, Manhattan Beach, CA 90266, or via email to contest@mockett.com. For more information, call (310) 318-2491 and ask for the contest administrator. Deadline is the Tuesday after Labor Day weekend, September 6.
PAGE 8
OFDA Conference Offers Exciting Line-Up of Workshops and General Sessions Since 2009, OFDA’s annual Dealer Strategies Conference has included both in-depth workshops led by top management and sales consultants and general session programs featuring prominent professional speakers and panelists to address ‘big picture’ issues shaping the industry’s future. This year’s conference is no exception. If you’re still sitting on the fence about attending, we hope you’ll take another look at the wide variety of valuable content, peer-networking and new idea-generating opportunities you’ll encounter when you participate. Sunday, September 25th Workshops “Talent Wins – Emerging Practices and Tools in the World of Dealer Talent Acquisition” OFDA has adjusted its Sunday, September 25 workshop program to include a new session to be led by Gary Gang and Randy Kloostra. They will share some of the newest developments with regard to recruiting, sourcing, screening, assessing and hiring applicants for a variety of dealer specific positions. By attending, you will learn how others are utilizing technology to create an engaging candidate experience. Specifically, Randy and Gary will provide a wealth of specific information on how dealers and others are leveraging new tools to streamline the HR function and drive time and costs out of the hiring process while attracting qualified candidates and staying in compliance with the various regulations required in today’s world. Gary Gang is the director of sales and marketing for HRMC and an expert in the utilization of technology applications for talent acquisition who has worked with several dealers in the commercial office furniture industry and Randy Kloostra, a 21-year industry HR and talent management veteran with Herman Miller, who has his own consulting practice, Kloostra Consulting Group. Gary and Randy will facilitate an engaging workshop in which they will provide several best practices and engage workshop participants in sharing of their own best practices. This session replaces the change management program that Valerie Atkin of Wells Consulting Group was previously scheduled to present.
“It’s not Your People, it’s Your Process!!!!!!” Join Paul Barr, CEO, Premier Office Solutions, and Gil Cargill, president, Cargill Consulting Group, for a dynamic, interactive session in which they will discuss the unique strategies, tactics and tools that have been implemented within Paul’s organization. Those who attended our last two conferences will recall the compelling keynote presentation Gil made in 2009 and his exciting 2010 workshop. In this year’s session, you’ll see why many of the sales processes utilized by OFDA members were outdated over 100 years ago! You’ll also learn why, by adhering to this outdated process, many OFDA member companies are underperforming against their profit and revenue potentials. Specifically, Paul and Gil will highlight how they have built a powerful business development center within Paul’s company; how that center has been staffed by a full-time professional business development coordinator (AKA telephone prospector); and how Gil’s approach has given Premier many novel approaches to the market which are not based on the old tired cold-calling strategies. Most importantly, you’ll learn how a unique tool has been implemented that helps Paul see the future. No it’s not magic; it’s just good old fashioned sales process management! “Dealer Boot Camp Program for Hiring and Training New Sales Talent” In this session, workshop leaders Debbie Junge and Brenda Brodt of Junge + Associates will outline a proven program for hiring and training new sales talent. Dealers and manufacturers are finding it increasingly difficult to hire experienced contract furniture salespeople. They are looking to grow their own with sales talent from outside of the industry who have the right sales “DNA” and skill sets to find and secure new business opportunities. However, any new hire takes an investment of human resources, time and energy to bring them up to speed on the special nuances of the office furniture industry. . continued on page 10
AUGUST 2011
OFDEALER
PAGE 9
OFDA News
continued from page 9
Debbie Junge and Brenda Brodt, two experienced industry consultants with extensive dealership sales and operations management experience, will provide an overview of the key elements of finding, hiring and efficiently on-boarding the right sales talent for your dealership. They will address topics such as screening individuals for the DNA of top sales performers; creating job descriptions, expectations and performance measurements; developing a checklist of activities for new hires; establishing an effective training program and rewarding results. In late July, Debbie and Brenda presented a two-day “boot camp” program for newly hired or promoted sales professionals that OFDA hosted in Chicago. OFDA anticipates that a second session of that type will be presented a few weeks after the September Dealer Strategies Conference. This workshop is targeted at dealer principals and senior sales executives responsible for profitably recruiting, hiring and preparing new sales talent for successful dealership sales careers.
Garth German, change management consultant, Expressworks. As our economy recovers, major corporate and federal government clients increasingly are focused on restructuring their workplace environments to attract and retain top talent, maximize the flexibility and efficiency of their office real estate footprint, and fully embrace new patterns of workforce mobility, collaboration, technology use and other emerging workplace behaviors. This session will bring together corporate and government thoughtleaders in interior architecture and design who are at the forefront of strategizing and managing implementation of these broad-based workplace changes, to share their recent experiences and views on emerging best practices. “Future of the Office Interiors Industry: Changes in Customer Expectations and Dealers’ Roles” OFDA’s Tuesday program will open with a panel discussion moderated by Carlene Wilson, principal and vice president, BKM Total Office of Texas, featuring three prominent manufacturing company leaders:
OFDA General Session Programs “Understand and Sell Your True Competitive Advantage to Transform Your Business”
Jim Keane, president, Steelcase Group, Steelcase, Inc.
This year’s keynote presenter—Jaynie Smith, CEO, Smart Advantage—will help you understand and embrace your most compelling competitive advantages and sell them effectively to transform your business. Based on her best-selling business book, Creating Competitive Advantage, Jaynie will describe what a competitive advantage is (and isn’t), why companies don’t know their competitive advantages and the price they pay for not understanding and promoting them. She will outline practical strategies and processes to help your company identify and communicate its differentiated competitive advantage based on what your customers and key markets value most. By ensuring close alignment of your business strategy, marketing and sales messages and operations around your company’s competitive advantage, Jaynie will provide you with proven tools to increase sales close ratios, profit margins and market share and minimize pressures to sell based mainly on price. “Emerging Workplace Trends and Major Customer Needs – The Future is Now!” Mary Lee Duff, Assoc. AI, principal, IA Interior Architects, will moderate a thought-provoking discussion among panelists chosen for their hands-on knowledge of emerging trends and implementation initiatives in both corporate and government workplace settings. Our California-based panelists include: Kevin Kelly, senior architect, Center for Workspace Delivery, General Services Administration (GSA) AUGUST 2011
Jan Penagos, LEED AP, senior sttrategic planner, Intuit
Chuck Saylor, founder and CEO, izzy+ Donald Van Winkle, president, Kimball Furniture Group. After a period of relative stability in industry products and business strategies, fundamental shifts are occurring in our economy, society and customers’ workplace needs. These are impacting the roles dealers and manufacturers play in helping clients create more effective and efficient workplaces for the future. This session will bring together three leading industry manufacturers’ presidents who will highlight their perspectives on these major trends and the implications for dealers’ future strategic choices in terms of profitable business models and service capabilities. “Value-Added Role of Dealers from Perspective of Commercial Real Estate Brokers and Project Managers” OFDA’s closing general session program is one that no one will want to miss. One of the key changes in our industry’s operating environment is the expanding role that commercial real estate brokers and project managers play in the development and management of new building and interior workplace redesign projects, including furniture purchasing decisions. Conference participants will gain valuable insights into the opportunities dealers have to play important roles in the design and execution of interior workspace projects of various sizes and types, and how to position themselves for success as effective resources to commercial real estate brokers and project managers. Two prominent industry dealers, Lisa Johnson, principal, Corporate In-
OFDEALER
continued on page 11
PAGE 10
OFDA News continued from page 10 terior Systems (CIS) of Phoenix, and Sandi Jacobs, president and COO of Sidemark in California, have helped OFDA organize this session, which will feature a moderated panel discussion among knowledgeable real estate brokers and project management professionals: Allyson Calvert, sr. project manager, CB Richard Ellis Megan Lovelace, president, Facilicorp,
Effective August 1, OFDA discontinued its three listserv groups (Dealer Dialogue, Installation Connection, and Recyclers Network). New advances in social networking are allowing for more effective communications and outreach to the dealer community through LinkedIn and other social networking mediums. OFDA now offers networking opportunities to dealer members, affiliates, recyclers, installers and service providers through three LinkedIn Discussion Groups.
Doug Sugimoto, senior vice president and Principal, Cornish & Carey Commercial, Newmark Knight Frank This year’s OFDA conference offers an extraordinary opportunity for dealers to bring their own questions and concerns to the attention of our three prominent panels of industry A&D professionals, manufacturers, and commercial brokers and project managers. In addition, with a steadily expanding roster of industry dealers, installers, manufacturers and key business service and technology providers planning to attend, the opportunities for one-on-one networking and relationship building will be exceptional. Register today at: http://www.ofdanet.org/2011-Conference-Online-Registration.
AUGUST 2011
Changes to OFDA's Dealer Discussion Groups
OFDA’s original LinkedIn Group is perfect for networking with other dealers and OFDA Affiliate Members while the OFDA Affiliates LinkedIn Group offers a forum for dealers to find new products and learn about manufacturers and service providers to the industry. Finally the Office Furniture Exchange is the place to buy, sell and trade new, used and remanufactured office furniture and accessories. Join the discussion today! OFDA LinkedIn Group OFDA Affiliates OFDA Office Furniture Exchange
OFDEALER
PAGE 11
Exploring Transactional the
Market
The Missing Link to New Furniture Sales By Alicia Ellis
Loosely defined, the market for transactional office furnituretypically involves the sale of office furniture and related accessories and services to small businesses and home offices of fewer than 50 employees, give or take. In addition to size, typical clients in the transactional market have limited budgets, do not require customized solutions and expect short lead times, At the same time, though, they still want customer service from a professional who can help them to find a solution quickly and as easily as possible. For many years, the typical contract office furniture dealership has avoided this market for a variety of reasons. “It’s not worth my time for such a small sale,” “The costs involved with installation and delivery outweigh any profit,” and “the headaches involved with returns just aren’t worth it!” are just a few of the concerns expressed by dealers about servicing this market. It has been easier for contract dealers to allow mass market retailers and the big box national chains with few quality pieces and ready-to-assemble (RTA) options to under-serve and dominate the estimated $1 billion market.
continued on page 13
AUGUST 2011
OFDEALER
PAGE 12
Cover continued from page 12 If you are one of those that subscribe to the belief that the transactional market holds nothing but headaches, you might want to consider the following: According to U.S. Census Bureau statistics on business size, 97% of all U.S. businesses are small businesses and 19% of U.S. businesses employ fewer than 20 employees. Eight-two of Fortune Magazine's 100 Best Companies to Work For in 2011 allow employees to telecommute or work at home at least 20% of the time. In a 2010 study on How We Work: Communication Trends of Business Professionals, 90% of the surveyed enterprise employees stated that they spend at least some time working offsite with 44% responding that they spent at least 1/4 to more than 1/2 their time working away from their official office space. According to Telework 2011: A WorldatWork Special Report, there are 26.2 million teleworkers in the United States; the majority of whom (63%) work from home offices. According to the U.S. Telecommuting Forecast, 2009 to 2016, from Forrester Research, the number of telecommuters is expected to reach 63 million in the United States by 2016. In 2009 the Office of Personnel Management reported that approximately 102,000 federal government employees telework. On December 9, 2010 President Obama signed H.R. 1722, the Telework Enhancement Act of 2010, into law expanding opportunities for over one million federal workers to telecommute for at least part of their week. According to Microsoft's survey of information workers in Work Without Walls Report: U.S. Telework Trends 2011 published in May 2011, nearly two-thirds of information workers in financial services (64%) say their company has a remote working policy, more than in manufacturing (58%), professional services (55%) or retail/hospitality (45%). No longer do employees come in at 9:00 and leave at 5:00. Advances in communication and the increasing use of smartphones are leading to new thinking about the way we do business. The typical worker is putting in more hours than ever and increasingly doing it on their own terms. And businesses, large and small, are seeing the benefits of telecommuting. Employees are happier, more productive and can even save money on commuting costs but better yet, companies can save money in the long run with smaller square footage and lower utility bills. The way people work is changing and leading to more satellite and home offices that mirror the typical small office space in furnishings and accessories. Are you starting to see the potential here? As businesses, large and small, adopt alternative office spaces for their employees, office furniture manufacturers and wholesalers are offering higher quality, price-competitive alternatives, programs and
services that are opening the market for transactional furnishings to forward-thinking dealers. There are different strategies that dealers are taking to gain access to the transactional market. Some are simple and others more complicated but the end results are an increase in orders, profits and customers.
Businesses, large and small, are seeing the benefits of telecommuting. Employees are happier, more productive and can save money on commuting costs but better yet, companies can save money in the long run with smaller square footage and lower utility bills. For Betsy Hughes, vice president of sales and marketing for Friends Business Source, an office products and furniture dealership with locations throughout Ohio and Pennsylvania, the way to transactional sales is through the ease of the Internet and company-wide marketing programs. With separate office products and furniture divisions, Friends has been an unaligned dealer of primarily AIS, Global – The Total Office, and HON since its inception in 1965. For more than ten years, Friends has offered office furniture and related accessories to the transactional market through their alliance with United Stationers. Beyond the reps who work on larger projects with Friends’ designers and installers, United’s online catalog with a variety of price points including most recently, United’s own Alera line, allows Friends to reach out to many smaller businesses in addition to their office supply customers with just a little marketing and the assistance of their on-staff furniture specialist. Using United’s findmorefurniture website and Visual Planner tool, end-users and small businesses can plan their space and order product with confidence. In addition, to further reach out to end-user customers, Friends offers its emart advantage, which gives end-users and small businesses the opportunity to actually place bids on refurbished and used transactional continued on page 15
AUGUST 2011
OFDEALER
PAGE 13
BBF fits
The transactional furniture market
“Our small firm needs upgraded furniture. The dealers we have talked to are focused on large projects. We need professional space planning & installation for three workstations
”
in 10 days.
Partner with BBF and you can capture your piece of this billion dollar market. Serving transactional customers is our sweet spot. We understand your needs as a dealer. If it’s small orders, fast turnarounds or remote locations, we can help you profit from opportunities that you never considered pursuing before. Find out how at: bbffits.com/billion or call 716-665-2510, Ext. 3868
Cover continued from page 13 furniture and accessories in a scenario similar to eBay. “It’s quick, easy, delivered and billed next day,” said Hughes. “With contract furniture, you’re talking about a lengthy sell but our setup requires no site visits, few consultations and flows through our standard systems. We can get products on a supply truck and drop them off in a box.” According to Hughes, marketing efforts like email blasts and sales blitzes, in addition to its social networking efforts, are leading to an estimated 2% increase in sales of transactional office furniture this year.
“The mid-market or small business market is something a dealership can’t ignore and if you do, you’re crazy, The cold fact is that the bottom line has changed and the industry and its wants and needs must change with it.” Utilizing Facebook, Twitter, YouTube and Linkedin, Friends actively posts information about the company, products, employees, specials and services to hundreds of connections. In addition, once a month, Friends holds an “Office Crasher” event where they choose one loyal customer and “crash” their office with a big gift basket and many thanks. For little investment, Friends has the ability to service the market, reach out to new and potential customers and drive new business development. So what about companies who put even more effort into the market? Read on.
BMC offers a fully stocked showroom with a broad range of price points on display that enables many small and home office purchasers to place an order and pickup or arrange for delivery almost immediately. “BMC has seen an uptick in sales to small businesses and home offices that keeps all six cross-trained sales reps busy,” said McHale. “This cross-training allows our reps to effectively sell all our solutions.” While the obvious opportunities exist for reps to sell more priceconscious solutions to larger, contract customers, McHale points to the increase in hoteling and telecommuting as a largely untapped opportunity. “We have a large insurance company as a client who recently decided to let many of their employees work from home offices,” said McHale. “Each employee was given a stipend to spend on home office furniture if necessary and because of our existing relationship and our reps’ knowledge of products and possibilities, we were able to arrange a contract to supply quality furnishings at a discounted price for all those employees.” “The mid-market or small business market is something a dealership can’t ignore and if you do, you’re crazy,” said McHale bluntly. “The cold fact is that the bottom line has changed and the industry and its wants and needs must change with it.” For George Bell, principal of Office Resources Inc. (ORi) in the greater Louisville, KY metropolitan area, the transactional market has always been something he’s “dabbled in” but, until recently, has not actively promoted. Having purchased ORi in 2004, Bell has spent the past several years growing the company’s Steelcase contract business. Though affiliated with Office Furniture USA (OFUSA), whose more than 30 manufacturers include AIS, Mayline, DMI and Lacasse, online catalog sales to the transactional market for ORi accounted for
For Pat McHale, president and owner of Haworth dealer, BMC Office Furniture with offices/showrooms in Scranton and Wilkes Barre, PA, an alliance with the Workplace Furnishings (WPF) dealer group and BMC’s reputation for quality refurbished products has helped to solidify the dealership’s reputation, not only as a contract dealer but as a major supplier to the mid- and small-business market. According to McHale, small businesses and home office buyers typically don’t bring the same degree of professionalism to purchasing office furniture that their counterparts in the contract project market do. “People buying for small offices won’t wait six weeks for furniture, nor will they spend the money for contract purchases,” explained McHale. “They are looking for good value in mid-market products or in A-level refurbished goods.” AUGUST 2011
OFDEALER
continued on page 16
PAGE 15
Cover continued from page 15 only about 10% of business. “We spent a lot of time targeting vertical markets, processes and procedures first and then on diversifying our business,” said Bell. “It wasn’t until November 2010 that we really began to focus on the market and making the structural changes necessary to expand.” “More than 40% of our market’s businesses have under 100 employees,” said Bell. “Outside of corporate, there’s a huge untapped portion of the market that we can get if we have the right resources.” “Through OFUSA, we had a broad range of price points but we couldn’t reach the entire market,” he continued. “And, problems unique to delivery and installation like narrow doorways and steep stairs make many projects just not worth the effort and will eat up any profit you’ve made.” These issues were resolved with a combination of planning and a new alliance with the recently rebranded Bush Business Furniture (BBF). BBF’s new program is designed specifically for office furniture dealers to tap into the transactional market with office furniture lines that fit into four distinctive transactional market scenarios, including the remote office space, the office at home, the traditional small business and the non-traditional small business. For Bell, the proof was in the process. “We didn’t just jump on the bandwagon with this program,” he said. “If we were going to invest our time and energy into expanding this market, we knew it had to be done right. We ordered products and monitored everything from start to finish. We checked on the ordering process, their delivery and installation, their customer service and even their packaging.” Satisfied with the products, services and strategies, in January of this year, Bell began ORi’s push into the transactional market by moving one salesperson to the company’s retail outlet just eight miles away and setting up the transactional business with its own goals and separate P&L. “We have identified a number of focus areas outside of our existing customer base,” said Bell who reports that two of their eight salespeople are now assigned to transactional sales under the name ORi Express. “We are looking to the home offices of people in big business and larger business that are sensitive to price points in specific non-customer contact areas like warehouses or call centers.” Under ORi’s structure, corporate account reps maintain their clients and offer transactional furnishings as a complement to the company’s products and services. “If there are any questions about the transactional market capabilities or BBF’s services, they can consult with an ORi Express salesperson or one of BBF’s regional representatives.” Bell expects that ORi’s transactional business will grow north of 20% in the next several years. “Back in ’08, there were plenty of 50-100 workstation projects to negotiate but today the dynamic is AUGUST 2011
changing,” said Bell. “There’s more supply than demand, more dealers moving into different geographic areas and customers are much more informed. “The reality is that if we, as dealer owners, aren’t constantly reinventing ourselves and are not diversified in services, constantly looking at new markets, restructuring our existing markets, and expanding, we’re going to have a tough time existing,” he contends. The same holds true for Richard Oakes, chairman of Business Furniture, an Indianapolis-based Steelcase dealership that recently celebrated its 90th anniversary and was the very first Steelcase dealership back in 1922. Oakes worked for Steelcase for 24 years before purchasing Business Furniture in 1987. Now with five locations in Illinois in addition to their Indiana-base, the company has grown to more than 100 employees and has a unique approach and philosophy regarding the transactional market.
“People are flying out of the big companies and creating new businesses. And, to reach them it takes a different sort of business model that is simple, quick, affordable, mobile and that can fit anywhere.” “We don’t look at it as niches and definitions. I look at the office furniture market as a big lump. If somebody is buying office furniture, I want to play in that arena,” said Oakes, who still remembers the days when he also ran a strong retail office furniture operation as part of his overall business. “Like a lot of the contract dealers back then, Business Furniture was strong in retail. We had half a dozen stores in Indiana, with a retail staff and showroom that was backed by inventory to support the sale. Customers would come in, place an order and get their product or have it delivered. That whole retail business went south 15-20 years ago and those stores are non-existent now. Then in comes this OFUSA catalog concept and we now have a franchise to meet the need. We have coupled this with BBF’s new product initiative and a little bit of Turnstone and Steelcase. So, if that’s what you want to call ‘the transactional market’ then so be it.” As Oakes explains, “It has less to do with furniture and more with the new workplace and how people function and get work performed. There are all kinds of companies that are virtual now with offices all over the U.S. and no real estate overhead. The office of
OFDEALER
continued on page 17
PAGE 16
Cover continued from page 15 today has become more flexible, more functional and uses less space. This has forced furniture providers, space planners and just about everyone in the industry to create new tools and programs to support that worker.” According to Oakes, most of the new jobs created over past 20 years have been in business startups. “People are flying out of the big companies and creating new businesses,” he maintains. “And, to reach them it takes a different sort of business model that is simple, quick, affordable, mobile and that can fit anywhere.”
“Just because I drive into the Mercedes dealership in a pickup truck does not mean I should not be treated with respect. These businesses want the same thing that the big corporate user wants. They want to be serviced and helped by a professional who can deliver to them simple, flexible, quality products without complications.” “Our strategy has always been to focus on great big projects and big corporate clients but we’ve always tried to target the company that is the next big thing. We’ve seen companies start 20 years ago as a very small business and now have 2,000 employees. All of us would like to get to know these potential companies and know them sooner rather than later. So how do you reach out and touch them and help them when they are small and entrepreneurial? Through the transactional market.” Oakes often relates a story from when he first bought Business Furniture. Another dealer from the Cincinnati area invited him to visit and told him Oakes would lose money on every order under $25,000. Small orders, the dealer told him, were killing his dealership, so he was only going to focus on the big companies. “Needless to say, that dealership is no longer in business,” said Oakes. “The secret is having the right mix of big stuff and medium stuff while trying not to overlap. If it’s going to lead to the development of a larger customer down the road, I want them.”
business just a few years ago, Business Furniture is currently 65% contract to 35% to smaller business and Oakes expects that ratio to even out a little more over the next few years. “Our marketplace does not have a lot of tall buildings,” he said. “If you’re in a bigger city that is more concentrated with large companies, you may want to question whether you get into the transactional business. Especially because small and mid-size companies have a different master to serve.” And treating every potential and existing customer with respect and a high level of service is a defining factor for Business Furniture. “Just because I drive into the Mercedes dealership in a pickup truck does not mean I should not be treated with respect,” said Oakes. “These businesses want the same thing that the big corporate user wants. They don’t want to be treated like a small company. They want to be serviced and helped by a professional who can deliver to them simple, flexible, quality products without complications.” The structure of the Business Furniture sales team reflects that basic approach. The dealership has a few salespeople for each of their major markets: contract, healthcare and higher education. They also have two salespeople who handle strictly sales to small businesses and four salespeople who “do it all.” After taking a call, salespeople have been trained to consider what market the client would be better served by. If the project sounds like a job for one of the two transactional salespeople, the follow up and communication is funneled to them. “The whole company is feeding the small stuff to these sales professionals,” said Oakes. “And just like the rest of the sales staff, they are also actively involved in networking to develop sales. In regards to small business, they are both involved in their local Chambers of Commerce and other networking groups and they use hunt and gather business development skills focused on smaller businesses and startups.” “Get in right now on the ground floor.,” said Oakes. “Hone in on the new ‘white collar’ startup operations and find ways to identify these potentially large companies before they grow up.” So whether you live in an area where small business dominates, find new opportunities from your own larger customers who are adopting telecommuting policies or if you only actively seek out the “diamond in the rough” high potential small businesses, remember, there is no shortage of small businesses out there and they want you! They want your level of service, they want quality products, they want your expertise and your guidance. With that, the potential for long term relationships, referrals to other small businesses and growth will come.
Coming from a market breakdown of 80% contract to 20% small AUGUST 2011
OFDEALER
PAGE 17
Dealer Profile
Big Rewards {
in Small Business
By Alicia Ellis Today’s Business Products prides itself on providing the utmost in quality, commitment, and care to its customers and to the community as a whole. This dedication for more than 25 years has served as the catalyst for everything that the dealership does. From sales and service to its community outreach and sustainability commitments, it is the driving forces behind the company’s success and has led to an increase in office furniture sales of more than 59% this year. Through its alliances with wholesaler S.P. Richards and the TriMega dealer group, the Cleveland-based company was, until about 2003, primarily an office products supplier with 90% of sales in office products and only 10% dedicated to furniture. With half its customers in the mid-market range, 25% corporate clients, 25% small businesses and retail “walk-in” traffic, a new dedication to the sale of office furniture offered a great way to extend the company’s reach. “It begins with building a relationship centered on greater attention to the client’s needs and results in more individualized service— before, during and after the purchase of office furniture,” said John Quinones, vice president of Today’s Business Products.
forts on introducing Today’s Business Products as a premier local furniture vendor through a variety of means and showcasing a wide variety of products in different categories.” Quinones is no big fan of hiring what he terms “retreads” or industry seasoned salespeople, and the dealership’s salespeople typically come new to the industry. “Our strategy is simple: Hire the right people and don’t waste any time in firing the ones that affect the culture or who don’t fit,” explained Quinones. “Salespeople new to the industry don’t know the difference between what more seasoned furniture salespeople deem a ‘good’ vs. a ‘bad’ prospect. This can limit the veteran’s reach but in contrast, opens more possibilities to the new salesperson. We train new salespeople to think the way we do and to understand what’s important to the customers and it’s paid off dramatically.” With three dedicated furniture salespeople, two on-staff designers, five full-time installers and a furniture project coordinator, Today’s furniture sales account for more than 40% of the company’s business today and are anticipated to reach 50% in the next year. The dealership’s location just south of downtown is home to 36 employees and a retail/warehouse/showroom space of more than 13,000 square feet of furnishings from Global – The Total Office, Kimball, HON,
“We do this by hiring the right people, focusing our marketing efAUGUST 2011
}
OFDEALER
continued on page 19
PAGE 18
Dealer Profile continued from page 18
National and Paoli. In addition, 3,000 sq. ft. of showroom space is dedicated to the sale of high-end clearance items. Seventy percent of its furniture business is centered on Today’s dedication to smaller mid-market businesses with 50 or fewer employees which is a logical extension of the existing supply business. Large projects, however, are not beyond the scope of capabilities with Today’s managing 10-15 large contract projects each year. With a broad range of capabilities, their showroom and “walk-in” traffic, marketing Today’s furniture division and all its capabilities has become a driving force in the company’s successful growth. A carefully planned and executed search engine optimization (SEO) effort has pushed Today’s ranking to the top of area search engines for office furniture, while its website, updated just a few weeks ago,
AUGUST 2011
showcases their wide selection and allows users to request pricing on all products. The high-end clearance section is complete with pricing information and is constantly updated. The dealership also uses strategically placed billboards and signs to help increase “walk-in” traffic by 40% over the past few years. “We have had a tradition of encouraging our employees to give back to the community in as many ways as possible,” said Quinones, who explained that their company’s participation in charitable and community events has led to better brand awareness. “Employees are encouraged to seek out charitable/non-profit organizations to invest their time and resources in order to give back. Not only is it the right thing to do, but it shows our dedication to the community we live and work in.”
OFDEALER
“Driven by our brand awareness and marketing efforts, many high-end clients are coming to us because they aren’t spending what they used to on office furniture,” said Quinones. “Our customers, new and old, are looking for ways to be more efficient and save money. Budgets are tighter and we have all the solutions in one package.” As far as the future is concerned, Quinones sees an expansion in the next several years of their contract sales efforts in the healthcare, higher education and government vertical markets. “The City of Cleveland is in the process of building a ‘Medical Mart’ similar to the Merchandise Mart in Chicago but catering to healthcare facilities throughout the United States,” said Quinones. “Today’s Business Products is ready to grow even more, today and tomorrow.”
PAGE 19
PROCESS REENGINEERING: …Should I or Shouldn’t I? By Debbie Junge For many dealers, these tough economic times have literally meant a struggle to survive. And even with the recent uptick in business, there is always a question about the future …What should we do to stay current and viable? How am I going to maintain or increase profits in this competitive environment? As annuity accounts have dwindled in many markets and the need for new business development has risen, dramatic changes have been forced upon almost every selling organization. In many dealerships the old paradigm of salespeople doing it all—finding, closing and managing the projects through job closeout—has evolved into distinct separation of business development and account/project management roles. This shift has forced dramatic changes to the process model that supports the sales efforts.
Step back and ask yourself Is my current process model sufficient to deliver quality product solutions and superior services on a consistent basis? Are our people, processes and technology in full alignment with our current selling and business strategies? If not, don’t be surprised…you are not alone! Quite often a dealer’s initial investment in technologies, development of processes, roles and responsibilities took place long ago. They
have been tweaked over time but rarely overhauled to keep pace with the ever changing business climate, sales environment and customer demands and expectations. In the business best-seller Good to Great, author Jim Collins studied companies that dramatically improved performance, as reflected in market value appreciation, by achieving a distinct break with the past. According to Collins’ research, what makes a company great is disciplined people, disciplined thought and disciplined actions over an extended period. The recipe for greatness, as Collins puts it, is having the “right people on the bus” and the “discipline to confront the most brutal facts of your current reality” in thought and action. Simply put, this good-to-great result comes from the right people applying the right principles in the best possible way. This is what Process Reengineering is all about: selecting the right people to drive and lead systematic improvement in a prescribed, disciplined, measurable and repeatable manner.
Basic principles The fundamental premise of Process Reengineering is to identify what the customer values. What does the customer want today? What will the customer want tomorrow? The customer defines the behaviors in the value stream that are value added.To be value added, any process or activity acting on the product or service in anyway must meet three key criteria: The customer must be willing to pay for it. (in monetary terms, time or other resources) The activity transforms the product or service in some way. The activity must be done correctly the first time.
continued on page 21
AUGUST 2011
OFDEALER
PAGE 20
Reengineering continued from page 20 Processes must also include business value added activities that may not be of value to the customer but which are necessary to run the business. An efficient and effective process model creates customer value and eliminates errors, waste and non-value added activities that over time contribute to eroding profits, lost revenues and a decline in customer satisfaction or retention.
Waste Not…Want Not. The sources of waste are everywhere: Making mistakes Rework, revisions, research or replacement Having incorrect, incomplete information and instructions or unclear processes Outdated tools or technology…not fully using the features and functions or multiple technologies that do not integrate Manual documentation versus electronic Access to accurate, real time data Duplication of work or information Breakdown in communication or execution Lack of consistency and reinforcement Unbalanced workloads Not enough true sales time for sellers Involving the wrong people in activities Having people work improperly Lack of training and skill development Money left on the table…lost revenues or profits …low margins…. not charging enough or at all for services... or inefficient job costing methods Spending more time or money than necessary on the wrong priorities Not benchmarking or tracking performance to identify potential trends or challenges The expenditure of wasted resources, people, time, energy, effort, money and non-value added activities impacts company performance and profitability. Over time it can lead to human struggle that damages the psyche and morale of your employees, impacting job satisfaction, performance or turnover. Eventually, these internal challenges may no longer be transparent to your customers, leading to a loss in customer satisfaction, retention or the ability to make a reasonable profit. To shed light on whether or not there is a case for change in your organization, consult with your employees and managers. They are your first and best barometer to uncover waste, nonvalue added activities and any internal human struggles.
AUGUST 2011
What should you do next? A process reengineering initiative is not for the faint of heart. Reinventing yourself to become a lean organization delivering superior product solutions and services involves restructuring of the organization and processes. Current principles, beliefs and culture can be enablers or barriers to the desired changes. Some people are “change embracers’, some are “wait and seers” and “some are resisters to the end.” The nature of change in itself is difficult. Understanding the nuances of every department, dissecting what is working and not working, designing the new process model and implementing and reinforcing the changes can all become overwhelming. Be prepared …it will take a considerable commitment from your team and investment of time, energy and resources to achieve success and desired results. Make a decision early on whether or not a process improvement initiative is something you can handle in-house or whether it requires outside assistance from industry consultants. If you decide that you need guidance, selecting the right consultant entails understanding their concept, approach and methodology. Equally important is how they adapt to the specific conditions and environment of your company. If you decide to go it alone, assign a Process Champion to spearhead the initiative and follow these steps: Establish your vision Assess current processes Redesign the new process model Align technology, roles and responsibilities Create a master plan for change Roll-out, train and Implement Measure and track performance Create a culture of continuous improvement The clock is ticking, the world is changing and so are your prospects and customers. Now is the time to assess your business and determine if you are keeping pace. Do you exceed customer expectations? Are you profitable and positioned for the future? If not, take action. You have a lot at stake!
OFDEALER
Debbie Junge brings over 30 years of sales, management and consulting experience in the contract furniture industry working with dealers and manufacturers. Since founding Junge + Associates in 2004, Debbie has leveraged her real world experiences helping clients build high performance sales teams, leaders and organizations. Her consulting services include personalized coaching, training and implementation of best practices with a focus on hiring, sales, leadership, operations, and financial performance. For more information visit www.jungeassociates.com
PAGE 21
Today’s office furniture dealer frequently has his or her profitability stymied by hidden sales productivity obstacles that literally date back to the late 1800’s! The sales processes that are most commonly used by office furniture dealers were first documented in 1873 by the founder of NCR. Those processes may have worked very well in those days but unfortunately, it doesn’t work nearly as well today. First and foremost the buying process has changed dramatically just in the past decade or two. Consequently, using a process that was effective in 1873 makes little or no sense. In fact, it generates some significant profitability and productivity challenges. As a result of using these outdated processes, today’s office furniture dealer overpays for underperformance. Today’s dealer finds sales results to be intermittent at best. In response, dealer owners find themselves adjusting budgets, financial plans, lines of credit, etc. to stay in business. Changing the process is the secret sauce. Without a change in the processes associated with finding acquiring and retaining customers, you will find yourself, as many office furniture dealers do, working harder and getting less. Here are some of the keys to a world class sales process: 1. Compete for all decisions in your market. This is accomplished by implementing a closed loop marketing system. Closed loop marketing was invented in the 1960s by a car salesman who outsold his closest competitor by a factor of more than 10 to 1. Simply stated, closed loop marketing is the process of getting in touch and staying in touch with all of your desirable prospects and customers all of the time. Back in the 1960s, the inventor of closed loop marketing utilized handwritten postcards to stay in touch. Today, there are literally hundreds of pieces of software that will do this work for you. But, it is important that you and your team touch every decision maker every month with a postcard or email or webinar invitation, a lunch and learn or showroom tour. You name it, any touch is better than no touch.
Identifying & Overcoming Hidden Productivity Obstacles By Gil Cargill
2. Hold your sales team accountable for the quality and quantity of work undertaken to pursue opportunities. Accountability is one of the missing ingredients in the sales management process at most office furniture dealerships. This is understandable due to the fact that very few if any of our current sales managers went to a college that offered a diploma in sales management. Consequently, most of us are forced to manage by “the seat of our pants.” This approach minimizes the predictability of your sales process. Unpredictable sales processes produce unpredictable and unprofitable results. Map out your sales process to find in minute detail how you want each continued on page 23
AUGUST 2011
OFDEALER
PAGE 22
Overcoming Obstacles continued from page 22 step of the process executed. Then—and this is the “secret sauce”—make sure you establish a numeric measurement (aka Key Performance Indicator) for each step of the process. Failure to hit the KPIs is a precursor to flawed or imperfect sales results. Hitting a set of KPI objectives is nothing more complicated than hard work. The quality and quantity of activity applied to the process should be inspected weekly. 3. Treat all existing customers as if they were prospects for the next PO (they are someone’s prospect)! The American Association of Purchasing agents once published a very disturbing study that showed that fully 87% of their members who discontinued a relationship with a vendor did so as a result of feeling neglected. It’s important to note that they “felt” neglected. I’m willing to bet that most office furniture dealers who lose a customer because they felt neglected were confident the company and the sales team were paying attention to the customer appropriately. If you sell to accounts who have the potential to buy from you in the future, a written account plan must be in place. This plan should be inspected and updated every ninety days. Proactive prospecting within your existing accounts is a sure fire way to ensure that you never lose an account or an opportunity within an account due to a perception of negligence. 4. Appoint a business development coordinator. This person should be responsible for profiling opportunities in your market. It’s a full time inside job that builds and maintains your database. This position offsets one of the biggest failings in the current sales process. Specifically, it’s impossible to prospect while selling. Conversely, you can’t sell while prospecting. Unfortunately, both of these critical activities must occur during the same eighthour period of time. It’s your business development coordinator who is charged with making the outbound phone calls, identifying opportunities within existing accounts, initiating a relationship between your company and that account, and from time to time setting appointments for the outside sales force. AUGUST 2011
OFDEALER
The real value, however, comes about as a result of stocking your database with well qualified and nurtured opportunities. 5. Use technology. The amount of technology available to today’s sales manager is fantastic. Unfortunately many of these very same office furniture dealers don’t take full advantage of it all. For instance, there are services that will type whatever your sales person talks. This allows a sales person to save a enormous of time by eliminating typing. These same services will update your CRM system and provide you with clean, updated data, and neither typos nor any stagnant/incomplete opportunities. Auto responders can stay in touch with thousands of decision makers on your behalf. The world has changed, and the processes that you and your organization undergo must also change.
Gil Cargill has spent the past 27 years as a consultant, speaker and trainer, teaching salespeople across diverse industries the importance of developing sales processes, the advantages of implementing new technology, and the benefits of tracking sales performance. Gil is a frequent speaker at national conventions including OFDA’s Dealer Strategies Conference where he was the keynote in 2009, workshop and session presenter in 2010 and will once again participate at this year's OFDA Dealer Strategies Conference. For more information, contact Cargill at gil@gilcargill.com or www.gilcargill.com.
PAGE 23
Two Full Days of Education including: Customer Loyalty Management Benchmarking for Higher Profits Social and Local Media Marketing Dealer Succession Trends & Experiences Best Practices in Streamlining Operations Finding, On-Boarding & Managing Top Talent 0DQXIDFWXUHU 3UHVLGHQWV 3DQHO RQ ,QGXVWU\ÂśV )XWXUH ...and much more!