April 2014—Family Business

APRIL 2014

APRIL 2014

ALL IN THE FAMILY? BALANCING WORK/LIFE HANDING OVER THE REINS CLOSING THE DOORS

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INSIDE THE FAMILY BUSINESS

14.

featuresNOW 18.

Augmented Reality Special Section

22. Enhancing the Shopping Experience 24. Get Your Scan On

26. Hot Products—AR style

30.

How to Keep the “Family” in Family Business

32.

Closing the Family Business

35.

Tips from the Kids

37.

Preparing the Next Gen to Take Over

40.

Handing Over the Reins

43.

Family Business Lifecycle

44.

Keeping Home and Business Separate

64.

Do Your Sales Managers Really Know How to Coach

40.

yourVOICE 13.

Roving Reporter Tupelo Furniture Market

14.

Retailer of the Year Nominees

28.

Retailer2Retailer and Inspired Reading

66.

Getting to Know the Next Gen

70.

Community Today Can Family Businesses Work?

76.

Fresh Perspectives Retail is Dead

count onIT

06.

From the Association President From Family Business to Succession Planning

08.

From the Editor The Family Business

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TechNOW

60.

Membership Marketplace

62.

Networking News

69.

Product Focus Top-of-Bed Trends

66.

THE FAMILY BUSINESS

Top: Dale and Sherry Sheely, Sheely’s Furniture & Appliance, North Lima, OH with Mike and Kathleen Genrich Middle: Bruce and Jeff Selik, Hillside Contemporary Furniture, Bloomfield Hills, MI Bottom: Joey and David Gunn, Knight Furniture, Sherman, TX

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APRIL | 2014

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count onIT Vol. 3 Issue 2 “SUSTAINABILITY” FEB/MAR Issue

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Government Relations Labor Law Posters

83.

Quick-Fire Marketing

84.

The Scoop

86.

Industry Calendar

88.

The NOW List

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FEB/MAR 2014

45.

High Point Market Seminars in the RRC

50.

High Point RRC Vendors

57.

RRC Vendor Map

58.

Merchandising NOW

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thePlayers

RetailerNOW

What we are so passionate about. . .

To have the courage to pursue purposeful dialogues that challenge conventional thinking, to engage and entertain our readers by delivering content that creates a fervent following ready to change the landscape of our industry.

RetailerNOW is the magazine for today’s home furnishings professional.

Developed for a specialized community, RetailerNOW brings a unique editorial focus on progressive and relevant issues concerning the home furnishings industry in the retailer’s voice, with a focus on issues impacting retailers NOW.

Contact Information:

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Publication Staff Jennifer Billock Editor jennifer@retailerNOWmag.com Lisa Tilley Creative Director lisa@retailerNOWmag.com

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Carol Bell Contents Interiors Tucson, AZ

Subscription: $70/year RetailerNOW, ISSN# 2166-5249, is published monthly (except March and December) by the North American Home Furnishings Association, 500 Giuseppe Court, Ste 6, Roseville, CA 95678.

Application to Mail at the Periodicals Postage Prices is Pending at Roseville, CA and additional mailing offices. POSTMASTER: Please address changes to: RetailerNOW, The North American Home Furnishings Association, 500 Giuseppe Court, Ste 6, Roseville CA 95678.

If you would like to stop receiving RetailerNOW, please send an email to unsubscribe@retailerNOWmag.com.

If you would like to only receive an electronic version of RetailerNOW, please send an email to gogreen@retailerNOWmag.com. © 2012 North American Home Furnishings Association. Published by the North American Home Furnishings Association. Material herein may not be reproduced, copied or reprinted without prior written consent of the publisher. Acceptance of advertising or indication of sponsorship does not imply endorsement of publisher or the North American Home Furnishings Association. The views expressed in this publication may not reflect those of the publisher, editor or the North American Home Furnishings Association, and North American Retail Services Corp. Content herein is for general information only; readers are encouraged to consult their own attorney, accountant, tax expert and other professionals for specific advice before taking any action.

APRIL | 2014

Published by the North American Home Furnishings Association 500 Giuseppe Court, Suite 6 Roseville, CA 95678 800.422.3778

Cindi Williams Publisher cindi@retailerNOWmag.com

Mailing – Editorial:

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Magazine of the North American Home Furnishings Association

Donny Hinton Colortyme Gaffney, SC Rick Howard Sklar Furnishings Boca Raton, FL Travis Garrish Forma Furniture Fort Collins, CO Mike Luna Pedigo’s Furniture Livingston TX

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Executive Staff Sharron Bradley CEO NAHFA sbradley@NAHFA.org Mary Frye EVP NAHFA mfrye@NAHFA.org Membership Staff Kaprice Crawford Membership Team Leader kcrawford@NAHFA.org Jordon Boyst Membership Team jboyst@NAHFA.org Michael Hill Membership Team mhill@NAHFA.org Eric Malone Membership Team emalone@NAHFA.org Jana Sutherland Membership Team jsutherland@NAHFA.org Dianne Therry Membership Team dtherry@NAHFA.org Please call (800) 422-3778 for all membership inquires.

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President's Message

from the president

From Family Business to Succession Planning President Rick Howard Sklar Furnishings Executive Chair Howard Haimsohn Lawrance Contemporary

I flunked retirement and started Sklar Furnishings with my wife, Pat, 11 years ago. Slowly over the years, we have learned how to become furniture retailers. We poured our energies into building a unique brand, visually, philosophically and practically. My background was in manufacturing so it was a steep learning curve. Luckily our business has steadily grown and prospered and we have been blessed with great employees, vendors and customers. We know we can take nothing for granted, and we strive for improvement across all aspects of the business. But we also know we need to create a business model that allows the store to function without our total involvement, as we have no family members working in the business.

President Elect Marty Cramer Cramer’s Home Furnishings Vice President Jeff Child RC Willey

Rick Howard, President North American HFA

Secretary/Treasurer Steve Kidder Vermont Furniture Galleries SEHFA President Wogan S. Badcock III W.S. Badcock Corp.

Some companies are multi-generational. They have attracted fine new family recruits who learned every position in their business while growing up, either through taking summer jobs or helping over holidays. These family members either leave the business or are committed and jump in vigorously. They are then groomed to move through the company and take over more and more leadership. The trust and commitment rising from family ties is a wonderful thing and forms a natural progression in leadership and succession.

In the busy days of running our stores and lives, we often put the thought of the future aside. One day you are 40, then you look up and suddenly, 65 is looming large. We are forced to think about and begin to plan for our succession.

Each of our companies is different and face unique and varied challenges around this event. Family, no family, shareholders, silent partners and a million other considerations come into play. One thing is true across all companies in all industries—successful businesses have successful business plans. And these plans need to include succession planning, at all staff levels.

Planning for future generations is vital to bringing new energy and ideas into a company. New talent invigorates every part of our business that needs a spark. Whether it’s retirement, sickness, job change, internal growth or new business developments, are all common reasons for leadership requiring a change. Every business handles this differently—but what about the family business?

This issue of RetailerNOW is given over to this topic and to the family business at large. Enjoy!

Rick Howard

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Editor’s Message

from the editor FIND OUT WHAT'S GOING ON

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The Family Business I always feel a little bad when I read about family businesses. My dad has run his own company, Perfect Promotions, for more than 20 years. He sells promotional products with imprinted customer logos. After high school and throughout college, I worked with him on and off, learning the business and how the promotional industry worked. I helped customers on the phone, tried my hand at sales, researched products, read industry magazines and browsed catalogs for the best new products we could offer to customers. I truly enjoyed that time we spent working together.

I didn’t live at home, so it was nice to know I was able to go into work every day and see my family, and I swelled with pride when I would tell people that I worked in the family business.

And then I fell in love with writing and stopped working in his office. It’s not that it wasn’t interesting enough or that I didn’t like working there. I just aligned more with writing and editing and decided to make that my career. So yeah, I do feel bad. I think about how I don’t want to take over the business and how my brothers don’t seem interested, then I think about what’ll happen to the business when my dad wants to retire. There’s a lot of pride there, and it will just go out the window—and that’s pretty depressing.

But what about you? Do you have a family business? Are your kids interested? We’re tackling a lot of the challenges with owning a family business in this issue. You’ll learn about what to do in my dad’s situation and be able to attack it from a few different angles. You’ll learn how to fire a family member and get some pointers on working together if you can’t fire them. You’ll learn about preparing your kids to take over the business and hear stories of successful transitions. Running a family business has a very distinct set of challenges. With this issue, you’ll be ready to handle with grace and ease whatever problem comes your way.

What I’m Loving Cha Teakettle by Alessi—The Cha’s sleek design brings a modern edge to the kitchen, and it has one of the best features for a kettle: a magnetic bottom so it won’t slip around on the stove. The kettle also doubles as a teapot, so you can bring it right to the table and serve your afternoon tea in style.

Follow other products I love on pinterest.com/retailerNOW 8

APRIL | 2014

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Tech

TechNOW

What technology are you using in your store? Let us know at jennifer@retailerNOWmag.com!

Good to Know Customer Complaints on Social Media

In a recent survey conducted by Social Media Marketing University (SMMU) it was discovered that, while brands are plagued by negative posts created by customers, competitors and employees, more than 50 percent don’t have a strategy in place to manage this growing problem.

According to SMMU’s survey:

58.2% occasionally receive customer complaints about their brands through social media. 10.9 percent receive them somewhat often while 4.9 percent receive them very often.

26.1% have tarnished reputations

as a result of negative social media posts; 15.2 percent lost customers and 11.4 percent lost revenue.

23.4% have no strategy

in place to manage negative social commentary, nor do they have plans to develop one.

24.5% are developing a strategy

and 7.6 percent have strategies in place that are currently proving to be ineffective.

“So many brands are buying into the ‘friending equals spending’ mentality,” said John Souza, founder of Social Media Marketing University. “They want the benefits of social media but aren’t truly aware of the investment of effort that’s required to see a return. As a result, this lack of effort rarely produces desired results and can lead to alienation of customers, fans and followers. It can even escalate to a backlash of negativity.”

Recent surveys show that customers expect a response to a complaint posted on a brand’s social media account within one hour. The SMMU survey found that only 17.6 percent of brands strive to meet this expectation. Most brands (52.2 percent) respond within 24 hours.

Cool Apps NAHFA APP!

With this issue, we are unveiling our NAHFA mobile app! Not only will you be able to access all the information you can imagine about your association, you will also be able to manage events and contact people who can help you. Our revolutionary app also includes a scanner that allows you to scan specially marked pages of the magazine and watch the scene before you come to life. Look for the HFA app icon shown above as you browse this month’s issue, and learn more about enjoying those featured on pages 18-27.

21.4% never respond

An alarming 21.4 percent rarely or never respond to customer complaints in social media. These findings illustrate a widening gap between customer expectations in social media and brands’ social practice.

Information provided by Social Media Marketing University.

DOWNLOAD THE FREE NAHFA APP TO YOUR MOBILE DEVICE FROM THE APP STORE OR GOOGLE PLAY

Watch for dos and don’ts for handling bad reviews in our next issue!

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Your Voice

FRYE, EVP North American Home Furnishings Association Roving Reporter MARY Tupelo Market 2014

Tupelo Favorites

F

or a market that has such regional support while also enjoying a national niche in the home furnishings business, the February Tupelo Market was hit hard by winter weather. While it was cold in Tupelo, it was more treacherous and snowy and powerless in many places buyers came from.

Attendees had time to enjoy a less hectic pace in better weather, so I asked about their favorite things about the Tupelo Market. Here are a few observations. ``The show is a good entry-point to the home furnishings industry for a new supplier. Without the high cost of bigger shows, a company has time to build a presence and ramp up to the hoped-for ROI, which is important but often requires time to develop. `` Because 80 percent of upholstery vendors are still within about 100 miles from Tupelo, shopping the Tupelo Market is an easy decision. A buyer can see categories, like bedding, that are important to retailers both large and small. ``The Tupelo Market is the easiest market to work out of any of the industry events. Parking is accessible and restaurants and hotels are reasonable. It is easy to find product that helps companies do more business. `` One rep, who has attended plenty of “stuffier� markets, enjoys the relaxed atmosphere. No coat and tie required, friendly people, fantastic business compared to cost of exhibiting, good one-level layout under one roof and laidback in a good way. `` A retailer mentioned he likes finding new lines, the market is close to his store and he can efficiently work the show. He gets a lot done in a few days.

The favorite of all who commented is that the Tupelo Market is accommodating. Cutting to the chase, Tupelo throws great parties, provides good food and free beer, and provides lots of opportunities to do business and make new contacts.

Are you visiting a show or new market event? Let us know at jennifer@retailerNOWmag.com!

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APRIL | 2014

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ROTY Nominees

MEET THE NAHFA RETAILER OF THE YEAR

T

he North American Home Furnishings Association (NAHFA) is proud to introduce the nominees for its 2014 Retailer of the Year award. Nominees are NAHFA members who demonstrate exemplary service to the industry and to their communities and who provide an exceptional customer experience in their stores. Nominees are considered in two categories—businesses with sales volume under $10 million and those with sales volume $10 million or above. The industry responded with a plethora of candidates.

A selection committee, comprised of two members of NAHFA’s Board of Directors; two NAHFA members; two manufacturers; two service providers/suppliers; and two members of the industry media, will review the nominations. Winners will be announced during the April High Point Furniture Market and awards will be presented at the Retailer of the Year Gala on June 1, 2014, at the annual Home Furnishings Networking Conference in Phoenix. Read the nominees' full bios online at RetailerNOWmag.com.

Standing left to right: Jeff London, Herbert Weisblatt, Seth Weisblatt and Florence Weisblatt seated of Sam's Furniture, Fort Worth, TX

Nominees—Over $10 million sales volume Dale and Sherry Sheely, Sheely’s Furniture & Appliances, North Lima, OH In 1952, at 23 years old, Dale Sheely, Sr., founded Sheely’s Electric.

In 1962, he incorporated as Sheely’s Furniture and Appliances Co., Inc. He continued to add on to the original building numerous times, until he opened up the current location in 1980.

Today, the company is a second-generation, single-store location, with more than six acres of selection. Dale Sheely, Jr., President and CEO, and Sherry Sheely, COO, have grown the business to support more than 150 employees and their families within the community.

Dorian Stacy Sims, Stacy Furniture & Design, Grapevine, TX Stacy Furniture & Design offers Dallas/Fort Worth consumers two large one-stop shopping locations in Grapevine and Allen. The store offers furniture, accessories, interior design, custom services, kids furniture, rugs, bedding, appliances, floor coverings and even restaurants and drop-in child care. An additional furniture and design showroom in Plano and an outlet store round out Stacy’s 14

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Above right: Interiors Furniture and Design, Lancaster, PA Right: Rick Stacy and Dorian Stacy Sims, Stacy Furniture & Design, Grapevine, TX

four Texas stores. Dorian Stacy Sims has worked in the furniture industry with her father, Stacy’s founder Rick Stacy, for more than 22 years. As president, she's been extremely dedicated to building her family business into what is now a leading independent multistore home furnishings business with more than 150 employees, 18 of whom are immediate family.

Gary Mullaney, Gardiners Furniture and Mattress, Baltimore, MD Gardiners Furniture is a family-owned retailer recognized as one of the industry’s top 100 companies. They have five locations in Maryland plus an e-commerce website (www.gardiners.com) and employ just over 200 people. Gardiners believes in supporting the community in which they live and work. Brothers Greg and Gary Mullaney bought the business from their Uncle George (the founder of Gardiners) and have grown the company exponentially.

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ROTY Nominees

Herb and Seth Weisblatt, Sam’s Furniture, Fort Worth, TX Sam's Furniture is the leading lease-to-own store in the country. Sam and Florence Weisblatt started from humble beginnings as a grocery and supply store in 1946. They quickly added appliances and TVs, and by the 1960s, furniture was added to the business model. Their son, Herb, added the lease-to-own model in 1984, operating as a hybrid retailer and leasing super store. The third generation team—Seth Weisblatt and brother-in-law Jeff London—has helped push Sam's into new growth and markets, creating an industry-best website in 2009 and adding a second location in 2012.

Ivan Smith, Jr., Ivan Smith, Shreveport, LA Ivan Smith Furniture was established as a single store in 1961 by Ivan Smith, Sr., in Shreveport, Louisiana. In 1968, Ivan Smith, Jr., joined the business and in 1976, bought the store from his father. The company expanded by adding approximately one store per year for the next several years.

A third generation of Smiths, Trey and Jonathan, have since joined the family business which currently has locations throughout east Texas, south Arkansas and north and central Louisiana.

Top: Olinde's Furniture, Baton Rouge, LA Bottom left: Shane Spiller, Spiller Furniture, Tuscaloosa, AL Bottom right: Rife's Home Furniture, Springfield, OR

Kevin Rife, Rife’s Home Furniture, Springfield, OR Rife's Home Furniture was founded in 1998 by Kevin and Tammy Rife.

Rife’s is a full-line furniture and mattress business that has expanded from a single location in Eugene, Oregon, to seven locations including Sutherlin, Coos Bay, three in the Eugene/Springfield area and two in Albany. Low prices on quality furniture paired with a strong emphasis on excellent customer service is key to the success at Rife’s.

Todd and Gregg Lehman, INTERIORS Furniture and Design, Lancaster, PA INTERIORS is a mid- to high-end full-line home furnishings retailer with an emphasis on fashion and design. It serves the central Pennsylvania market with stores in Lancaster and Harrisburg. The family-owned company was formed in 1969 and is owned and operated by brothers Todd Lehman, president, and Gregg Lehman, VP operations. Todd’s son, Justin, recently joined INTERIORS to lead e-commerce and represents the third generation of family in the business.

Shane Spiller, Spiller Furniture, Tuscaloosa, AL Spiller Furniture has 13 locations throughout west Alabama and east Mississippi. The family-owned furniture chain began operation in 1948 and is currently owned by its third generation, Shane Spiller. This regional chain specializes in selling furniture by using in-house installment credit.

Tom Olinde, Olinde’s Furniture, Baton Rouge, LA Olinde’s has been operating since 1886 in south Louisiana. Currently, the 12 furniture and bedding stores include two large full-line Olinde’s stores, two bedding Superstores and eight Ashley Furniture HomeStores.

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APRIL | 2014

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ROTY Nominees

Nominees—Under $10 million sales volume

Left to right: Mark and Tim Koerner, Koerner Furniture, Coeur d'Alene, ID

And the nominees are— Brian Garrison, Garrison’s Home Furnishings, Central Point, OR Although Garrison’s Home Furnishings is technically a mid- to highend furniture and mattress retailer, they like to think of themselves as a “customer service” company that just happens to sell some pretty nice furniture. Owner Brian Garrison worked in the hospitality industry before opening Garrison’s in 2007. According to Brian, providing exceptional customer service comes down to one key ingredient: a great staff.

Chris Cooley and Carrie Hemme, Michael Alan Distinctive Home, Lake Havasu, AZ

Michael Alan was created by Abner and Shirley Schultz in the early 80s and quickly became a local furniture destination. Daughters Chris Cooley and Carrie Hemme worked in the business and purchased it in 1992, carrying on the family tradition. They say their strongest asset is their Michael Alan Family—a team of 24 members filled with vibrant energy. Chris and Carrie’s goal is to offer the best possible service for guests, with an exciting twist.

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Dave Harkness, Harkness Furniture, Tacoma, WA Harkness Furniture was founded in 1920. It expanded and flourished under second-generation owners, Jim and Dorothy Harkness, Dave’s mother and father. He and his wife, Cyndi, took over management in 1987 and their son, Kellen, is now involved in the business.

Their 60,000 square feet of showrooms feature topname home furnishings displayed on four floors, as well as a sleep center and Furnish 123 gallery next door.

Lael Thompson, Broyhill Home Collections, Aurora, CO Broyhill Home Collections is a family-owned, Colorado-based, full-line retailer. Now in its second generation of operation, Broyhill has a friendly way of doing business. The Thompsons are celebrating their 31st year in business, and their 47th year working in the furniture industry.

www.retailerNOWmag.com

ROTY Nominees

Lorri Johnson, Wesco Home Furnishings, Sparta, WI John W. Kress, Sr., and his wife, Laura, founded Wesco Home Furnishings in 1923 as a mill and farm supply business. During World War II, Wesco expanded into farm implements, coal and other commodities and added appliances, plumbing and heating contracting in the 1950s. By 1960, Wesco had locations in Tomah, La Crosse, Cashton, and Sparta, Wisc., and it began selling furniture and flooring. Wesco consolidated operations into its current facility in Sparta. Today Wesco is operated by John W. Kress III and it specializes in the sale of furniture, appliances, flooring and electronics.

Rex Maynard, Maynard’s Home Furnishings, Belton, SC Maynard's Home Furnishings was founded by Al Maynard in 1947 in Belton, S.C. The company now has two stores, the main store and warehouse in Belton and a second showroom on I-85 near Greenville, S.C. The business is operated by Al's son, Rex, and grandsons, Alderman and Blake. Maynard’s Home Furnishings focuses on selling better-quality home furnishings in upstate South Carolina, northeastern Georgia and southwestern North Carolina.

Sandeep Gupta, Carolina Furniture Concepts, Arden, NC Carolina Furniture Concepts opened its doors in November 2002 in a 32,000-square-foot space with four people. Their slogan was, and is, "best quality, best prices, best service." In 2007, Sandeep opened a second store and since 2011 he’s added two more stores. He now employs 36 people and feels extremely blessed to be in this type of business.

Tim and Mark Koerner, Koerner Furniture, Coeur d’Alene, ID Koerner Furniture is a second-generation furniture store owned by brothers Mark and Tim Koerner. They service the north Idaho trade area and are a medium price point furniture store, with a 6,600-square-foot La-Z-Boy Comfort Studio. The showroom is 24,000 square feet. Koerner’s also has a 9,000-square-foot attached warehouse. Tim and Mark say their store offers an above-average combination of values, which include merchandising, pricing and, most importantly, sales service.

From top: Lael Thompson, Broyhill Home Collections, Aurora, CO

Victor Ramos, Ramos Furniture, San Jose, CA Ramos Furniture is family owned and operated with locations in San Jose and Fresno, Calif.; it has one of the largest showrooms of Ashley Furniture in the San Francisco Bay area. Ramos strives to provide customers with quality furniture for the living room, dining room and bedroom at affordable prices.

Chris Cooley and Carrie Hemme, Michael Alan Disctinctive Home, Lake Havasu, AZ Wesco Home Furnishings, Sparta, WI

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APRIL | 2014

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Place your mobile device over the image on the page with the icon and wait for the experience to scan and load.

  

      

  

 Get the App  Look for the ICON  Open the app and hit SCAN

  

  

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APRIL | 2014

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The new North American Home Furnishings Association app will showcase mobile technology, from geo-fencing at High Point Market, to changing the way you view print in RetailerNOW. We will dive into all the great features over the next few issues, but for NOW download YOUR app and try it out!

We’ve got something to share— your Association just raised the bar in the world of apps.

Pull out your smart phone or tablet and join us as we help you— our retailers— enter the mobile engagement revolution.

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EXPLORE

NAHFA has brought you so much more than just an augmented reality scanner. It's your membership news, it's the latest from RetailerNOW and it's your new best friend at all our events—with check-in, schedules, contests, vendor specials and so much more.

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wherever you see the HFA icon. Use the Events tab to find out what's next. Check out our article extras on RetailerNOW. Go to NAHFA for info on programs, legislative news, industry happenings and more.

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Next Gen NOW members can start their day in the NAHFA Retailer Resource Center in the seminar room, B-1050, with a panel of expert young retailers discussing how they use social media, blogging, and mobile to attract the next generation of shoppers. The panel, moderated by MicroD, is from 9:00—10:00 a.m.

NAHFA has added a new element to the Next Gen NOW market day with

NAHFA Get it on the go, all you need to connect and catch up if you missed market.

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If you didn’t bring along your favorite magazine, no worries—it’s all here, including bonus material available only online.

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Use the app-scan and enjoy augmented experiences on these pages: 2, 11, 25, 26, 27 and 87!

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In every industry, marketing and advertising must adapt to keep pace with changes in technology trends and in the ways consumers digest information. As messages bombard people from thefrom moment they turn on EVENTS HFNC (conference) to their electronic devices, advertisers regional events in your area, to markets must work to reach consumers in and trade shows —we're keeping you unique ways and they checking can relateyou to. in!* informed

How to get, sell and keep customers in a tough economy

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USING MOBILE AND AUGMENTED REALITY TO ENHANCE THE SHOPPING EXPERIENCE

By John Puterbaugh

Consumers are now entering our stores, houses and public spaces with mobile devices many times more powerful than any kiosk, handheld or in-store computer of days past.

As with any technology, we can figure out how best to leverage and get in front of this change. Or, we can wait and react later to any unforeseen impact it may have. Who knew, after all, that lasers would someday be used to do surgery, play CDs and even guide missiles?

Mobile is most effective when used as a companion or vehicle for augmenting your existing showroom, inventory and overall customer experience. When done well, mobile should enhance the shopping experience and empower the consumer. It can be used to both extend our senses and our brains’ abilities by helping us better visualize, remember, measure and pair things.

Try out a new rug to see what looks best with your furniture!

Mobile activation is the ability to use images, products, signs and symbols to trigger interactive content. This content can be actionable and directive, leading to a purchase, a sign-up or some type of customer feedback. Or, it can be more experiential and an addition to the shopper’s journey. Augmented reality (AR) is a type of additive experience in which images, videos and sounds are projected over a printed page or image when viewed through a mobile device.

GETTING STARTED WITH MOBILE AND AUGMENTED REALITY Step 1 – Choose a goal

Mobile can be used across your entire marketing lifecycle, using branding and custom awareness to drive in-store traffic and online activations, in order to maintain loyalty and gain repeat business.

In stores or showrooms, mobile can be used to accomplish many things: `` Drive in-store traffic `` Increase dwell time `` Enhance the shopping experience `` Remove friction from the buying process `` Reduce the impact of showrooming `` Improve customer loyalty through better service `` Make it easier and faster to purchase The specific campaign goals should always drive the specific ways in which you use mobile.

For example, in some mobile apps, you are able to see what different rugs would look like with some specific furniture. The experience can be activated using a QR code, an image in the catalog or an actual 3D object such as a sofa or chair.

The consumer simply flips through the different examples and is quickly able to see a number of rugs in context.

This creates a whole experience that helps the consumer both visualize and see the rug in-context as opposed to using swatches, fragments and collages. In general, mobile helps us see different combinations, colors and configurations that can be personalized and tailored to the specific experience we want to create.

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Step 2 - Choose a vehicle of activation

A mobile activation point can take many different forms, such  The AR software inside a mobile app uses the camera to view as a quick-response (QR) code, a 2D or 3D image, invisible wa- and identify the image. termarks applied to photographs, brand logos and icons, or SMS  The unique patterns in the image (i.e. areas of contrast, features) text messages. enable the app to identify it.

In a retail environment, these points of activation are printed onto labels, signage, product packaging or shelf-talkers. Or, with image recognition and augmented reality, the image or the product itself can be used to activate an experience when viewed through a smartphone camera. Consumers can then scan the points of activation with their mobile smartphones and activate additional interactive content.

 After identifying the image, pre-stored information can be looked up in a database that is associated with the image. This information can be formatted and projected to enhance the image when viewed through the mobile app.

Change the color, design or background

Mobile can also be used to change the perceived color, design or context in which a given product or image is viewed. Often, in order to transform the color or design of a product, the image of Step 3 – Choose the experience The activation points described in Step 2 can be used to trigger two the product itself is used as a trigger. In a print context, this is different types of mobile experiences—either a “hold and hover” simply the photo that is used in a catalog or on a product piece.

In the showroom, you need to have multiple views of the product experience or a “grab and go” experience. so that it can be recognized from a variety of angles. Then, after In a “hold and hover” AR experience, the consumer or reader knowing which product is being viewed, we are able to transform must hold their phone over or in front of a specific scene, product the way in which it is viewed through the smartphone camera. or image. Then, while viewing the scene through the phone (like taking a picture or video), additional content is overlaid onto Make it actionable the screen. This content could be buttons to buy or share things, One of the simplest AR experiences you can do is to add actionable buttons. The button could be buy now, share or save. For example, recoloring or even additional layers or images. when an image or product (catalog or in-store) is viewed through In a “grab and go” experience, the scene, product or image is the mobile app, the reader is able to take some action such as used to trigger an experience on the phone. For example, when pinning a specific image on Pinterest. By using in-store mobile the mobile phone is held in front of a sofa, the image would trig- activation points, the shopper is able to actively save, share and ger a product details page with information about dimensions, buy immediately at the time they encounter products. This best background, colors, accessories and pricing. QR codes or digital embodies the powerful aspect of mobile that enables you to turn watermarks are typically used to initiate a grab-and-go experience. immediate interest into action.

The grab-and-go experience is likely more familiar to the viewer. The contextual immediacy of mobile activation engages a customer These can be mobile landing pages, store locators, photo galleries, in a way other marketing methods cannot and, to date, have not. videos and coupons. Here are some examples of ways a mobile The ability to take action at the point of inspiration is one of the phone can be used in the hold-and-hover method to overlay and most compelling reasons to integrate mobile into your customers’ shopping experience. transform a given experience.

Overlay additional info

The phone can be used to overlay additional information while the consumer is looking at a specific product. The information could be product details, specific in-store offers, comments, ratings and suggested bundles or pairings. The process of overlaying additional information typically involves three steps:

However, it is imperative that you let your business or campaign goals determine the ensuing mobile experience and the vehicles used to activate it. This is the first step in figuring out how best to harness mobile.

John Puterbaugh, Ph.D., is the EVP and chief digital officer at Nellymoser.

www.retailerNOWmag.com

APRIL | 2014

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SPECIAL SECTION: AUGMENTED REALITY AND OUR NEW APP!

DOWNLOAD the app and Scan the Emerald Ad 

by Gerben Harmsen

A play without an audience, an exposition without visitors, a shop without customers, an augmented reality (AR) experience without users…they all spell disaster. But how do you let potential users know that a virtual layer has been added and subsequently, how do you motivate them to use it?

AR creates wonderful additions to reality, but triggering people to actually get their smart device out to experience it proves to be a challenge. Often they are unaware of the fact that there is a virtual layer and what it has to offer. The result is that they can’t participate in it, a missed opportunity for both the viewer and the creator. First: Inform the User

Third: Stay in Action

The starting point of any virtual message is to make the user aware An AR experience starts with recognition of predefined markers. of its existence. This can be done by using an icon, logo or badge. Fast image recognition is therefore essential, but speed is even more It sounds simplistic, but is very often under-exposed in campaigns essential when it comes to the availability of the content. Users and productions. Inform the user that their world has been en- expect the experience to be instantly available, and any delay will riched with a virtual layer. Whether it is a newspaper or magazine cause loss of interest. ad, product catalog, packaging or shopping window, the user has Never mix two techniques. For example, do not combine a QR to switch from reality to augmented reality. code with an image that functions as an AR marker. QR codes are associated with content like a movie or a webpage. Chances are Second: Feed the Desire that after downloading the app, users will not make the second Now that you have caught the user’s attention, they need to be step to scan the image for the AR experience. Instead, they will seduced to participate in the virtual experience. How? Sell the scan the QR code again which obviously will not work, generating illusion and feed the desire. Disclose a secret, create a braggable frustration and a likely drop off of the user. moment, give away prizes or create a fun experience. But above all, add functionality. Provide them with a reason to start using Fourth: Create Retention the app.

Promote your user to be an ambassador. If it is a good AR experiDepending on content, location and timing, the user will deter- ence, they will want to re-experience it and recommend it to others. mine whether to become an active user or not. As time is limited, Facilitate this by providing them with the means to share it through inform them briefly why they need the app, supported by an social media as leverage towards future users. Ensure the content of appealing image and a catchy slogan. Here, the old medium can the experience adds value and is relevant enough to create retention. reinforce the new medium. Provide clear and complete instructions and clarifications about the functionality of the app using screen An AR experience is a powerful tool to reach your objectives. Use captures, text and reviews. Ensure that the installation process is it where it makes a difference, but don’t if it doesn’t add any value. understandable and that the user knows how much time it will take. Keep the promise.

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High Point Market April 5- 10, 2014

showroom

Center Point Bldg 401 S Hamilton Space 105 & 201

take a closer look

interactive new

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The High Point Market is the legendary design destination where the new home fashion season begins and innovative ideas emerge. Check out what’s hot, and share with your colleagues.

Jaipur | jaipurrugs.com

SCAN & SHARE USE THE NAHFA APP

Vibrant colors and geometric designs from the Luli Sanchez Tufted collection.

Nourison | nourison.com Mina Victory luxury home accents are designer creations, inspired by modern lifestyles and utilizing a global perspective.

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The New Holland classic eight-drawer chest is handpainted and finished in an alluring shade of Aged Ultramarine.

Industrial bunching table made with reclaimed pine and iron from the Hughes Collection

Malouf | malouf.com Emerald Home | emeraldhome.com The Carly Collection’s angular silhouette boasts impressive designer styling and quality construction.

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From the Italian collection, these Egyptian cotton sheets bring luxury to top-of-bed.

Mobile Marketing Solutions for Retailers drive showroom traffic + engage consumers + influence purchasing decisions

+ augmented reality + interactive print + mobile apps + geo-location

1 Download the new NAHFA app from iTunes or GooglePlay 2 Open the app and scan this page 3 Discover Nellymoser’s mobile marketing solutions for retailers

Activating Brands Through Mobile

Nellymoser is a leading mobile marketing technology agency that helps retailers create cross-media campaigns in store and in the market that enhance the consumer’s shopping experience, foster brand loyalty, and ultimately drive revenue.

For more information call us at 781.645.1515 or email us at info@nellymoser.com

Your Voice

Retailer2Retailer Q: For stores with a lot of family employees or many generations present, how do you handle the distribution of work?

Robert B. Burnette, Badcock Furniture, Southeast Florida By giving family members a chance to work in every area of the company, we have been fortunate that they have chosen different paths. After our two-year training program, our newer owners go on to work directly for a non-family member and, for the most part, are treated like any other employee. In an environment like ours (we named a non-family member as president), it also removes the notion that everyone is competing for the same job.

This takes the pressure off for those who may not have the CEO skill set and they can settle into an area of the company where they feel they can best contribute.

Woody Whichard, Midtown Furniture Superstore & Mattress Center, Madison, North Carolina It should be allocated as in any business. The ones that have a strong aptitude for a certain aspect of the business should be the ones responsible for that job. We do not run a refugee camp. You have to earn your way and take responsibility for your duties.

Inspired Reading: 250words.com Recommended by Jennifer Billock, RetailerNOW Editor

Not sure where to look for the best business books? Try checking out 250words.com, a new website owned by publishing powerhouse Simon & Schuster. The entire site is dedicated to finding and sharing business books, posted on a Tumblr-style page. Each book recommendation comes with a 250-word essay describing the content, main takeaways and how the book will help your business. As a bonus, the website also offers suggested book lists, interviews with authors and big thinkers, videos and links to helpful content outside the site. One of the best from the homepage right now is Quick and Nimble: Lessons From Leading CEOs on How to Create a Culture of Innovation by Adam Bryant.

In it, the author talks about using a military submarine strategy to train employees on every aspect of a company. Go to the site and find your next book—then share it with us on Facebook so we can read it, too!

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Celebrating 25 Years Serving the Home Furnishings Industry Honoring Partners Who Shaped Our Company “In 1994 we became fully integrated and benefited from the STORIS retail solution.

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The Family Business

FORGET “You’re Fired!”— HOW TO KEEP THE Family IN FAMILY BUSINESS

by Sue Masaracchia-Roberts

The adage “measure twice and cut once” can be applied to companies that hire relatives. What works best to make the business succeed needs to outweigh the complication of having family members involved in that business.

The major purpose of a business is to create wealth for a family.

However, businesses, like families, operate under various systems.

When a business is family-owned and operated, the interpersonal dynamics can become more complicated—especially if the work or behavior of a family-member employee becomes detrimental to the business.

In the past, many immigrant families came to America and helped each other by providing jobs for immediate family, nephews and nieces. According to James Olan Hutcheson, former family business employee and cofounder of ReGENERATION Partners, a Texas-based family business consulting firm, “That doesn’t work anymore. The younger generation [now in the workforce] did not grow up making the same sacrifices and often feel a greater sense of entitlement.”

of their family relationship and partial business ownership—like being able to drive an expensive car, despite working at a lower paying job.

Hutcheson, whose opinion differs slightly on this, said, “Pay them and make sure they meet the same standards as other employees, including the amount of vacation time. Other employees can view [extended] family vacations and [being able to] drive a Mercedes while being paid $30,000 as being coddled and may resent that.”

This may reduce the amount of respect he receives.

Los Angeles-based family business management consultant and adjunct college professor Quentin Fleming, also the author of Keep the Family Baggage out of the Family Business, said, “Rivalries and animosities [within families] often are recreated and brought into the business.”

To mitigate these issues, Dr. Ehrlich prescribed a best practice for preventing adverse feelings between relatives: Take sensible precautions before hiring any family member.

“It is crucial to remember that the ‘family-owned business’ (FOB) and the ‘business-owning family’ (BOF) are opposite sides of the same coin,” said Chuck Meek, owner of Chicagoland-based Atticus Bailey, a firm serving family-owned businesses collaborating on their business development strategies. “Family members have an obligation to recognize their roles; it is a two-way street.

Rights come with responsibilities.”

One precaution is to create a family council. Dr. Ehrlich describes this council as “not a legal entity, but essentially it is a vehicle whereby family members’ voices can be heard. It may include inlaws or just bloodline [relatives], but is a place where individuals can voice issues about the business without having them bounce around the dinner table. Typically, a person serves as chair of the family council and creates an agenda.”

The most effective business model, according to Sanford Ehrlich, Ph.D., a partner at Hall and Ehrlich LLC management consultants and a professor emeritus at San Diego State University business school, is a hybrid situation that mixes a family-first (where any family member may be hired just because they are family), and a business-first model. In a hybrid version, any family member can enter the business in the job for which that person is qualified.

He is screened, hired, paid and promoted like anyone else in the business and business is kept separate from the family. This model may create the least problems. Even so, in this hybrid situation, the family member may be able to take advantage of the dividends

Ehrlich explained, “The first piece of work of this council is to establish a family creed. This is a document that defines the business principals for all kinds of situations like entry strategies for family members, exit strategies for family members, how family members should treat the organizational boundaries, etc., making it fairly easy to separate the roles of family and business, and making it possible to hire and fire with relative ease.” It also can dictate that, when an issue arises, the family member must go before the appropriate company official, like the HR executive, rather than to another family member to describe the issue due to the boundaries and roles prescribed in this creed.

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The Family Business

RETAILERS' PERSPECTIVES As a married couple and partners, you cannot fire one another. For other family members, be clear from the beginning and along the way. Discuss everything so if the time comes, the family member will not be surprised. It is a delicate matter and needs to be handled in a fair, loving way. We must remember they are family. —Carolyn Caulkins; Airport Furniture; Panama City, Florida

One of the problems with siblings working together is the unwritten fair compensation rule. Some take responsibility and others go with the flow. Usually the ones who go with the flow are the ones who are the logical target when a business shrinks or someone needs to be let go because of performance issues. For us, the performance issues were overlooked because business was good and the problem just wasn’t worth dealing with. We always had a place or department to get them out of the way. The problem with this scenario is when business gets tough and you are forced to make decisions, family members don’t know what to do. They have nothing to fall back on. They are lost. This is all as a result of not holding each employee accountable for their actions, whether it be a family member or not. —Del Sawyer; Sawyer Furniture; Mobile, Alabama

Often created by the family council in collaboration with an outside facilitator, this creed is a physical document that includes the following: `` A statement of the family’s values `` Whether relatives should receive performance evaluations by their supervisor—and who that should be `` Whether they must honor their organizational boundaries `` How they are expected to act while representing and working in the business `` Details on responsibilities and authority `` Guidelines for demonstrating humility and showing no sense of entitlement Ehrlich suggests allowing family members to read these documents from a young age so they understand that family values and business issues are not brought to the dinner table or into the bedroom. The family and the business are separate, and family business discussions are held only in family council meetings.

Other suggestions included enlisting assistance from trusted advisors like accountants, attorneys and bankers to review information and facilitate conversations. Support groups for family businesses are also available around the country.

Based on his experience, Fleming agrees that very specific job descriptions should exist for each person in the business, along with performance guidelines and expectations of minimum performance. In addition, he suggests “periodic casual performance reviews so bad news does not come out of left field, as that can cause [significant] problems. If you lay stuff out ahead of time in black and white, it allays misunderstandings and invalid assumptions.”

Hutcheson agrees it is best to have a family employment policy and advises to be honest and straightforward when you have to fire a family member. You want them to understand why and know that you would treat other employees the same way. Be clear, direct and honest so the story doesn’t change through the years.

However, when a family member merits being fired, assistance can be offered to soften the blow. This assistance may include mentoring, coaching, training, counseling and/or job shifting along with compassion.

“Firing an employee is a business transaction. This could become a crisis if a family member is involved because emotions come into play,” said Fleming.

To mitigate a crisis situation, communication early and often is key. Meek does not recommend an impersonal session with a non-family human resources manager.

“That would seem like a dodge,” he said. “For the sake of greater family harmony, terminated family members may receive quiet assistance to assure a soft landing, perhaps more than usual outplacement help or the like. If handled properly leading up to the dismissal, the terminated employee won’t equate the job loss with a divorce from the family.”

Along those lines, one business consultant spoke of a particular CEO who personally explained to a close relative that his passion did not appear to align with the family business. The CEO then supportively suggested that this person locate his core purpose, competencies, skills and passions so he could provide him with assistance to help him succeed.

“I think it is crucial to establish the big picture of the business No matter how decisions are handled, family fortune and wellbemodel and how all the pieces fit and work together to make the ing are tied to the success of the business so every choice needs whole enterprise work,” said Meek. “Then emphasize the impor- to be for the good of the family if you want the business to last. tance of the role each is about to fill. It keeps everyone’s eyes on the bigger picture, [viewing] the family business as an enterprise “I never met a CEO who felt he fired too quickly,” said Ehrlich. rather than [focusing] on one individual’s role. Recognize the gear “Most say they waited too long. [Especially] if it is a family not just the cog. Family hires, although easily made, can leave a member, never allow things to simmer and never be afraid to big bad wake when they break.” pull the trigger.”

www.retailerNOWmag.com

APRIL | 2014

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The Family Business

Closing the family business

“One day, I had to go to the courthouse and tell the city I was going out of business. I filled out the form, and the lady left the counter, and tears came to my eyes. I was thinking of my great-grandfather who started the business and there was some sentimentality.”

B

usiness owners pour their lives into building profitable companies. Most work many more hours than people who hold more traditional jobs, and often make enormous personal sacrifices to keep things running. When a business is multi-generational, the sacrifice and work are shared by the entire family. What happens when there is no one left to carry on the family business?

There is an emotional impact, and, of course, a host of financial considerations.

By Dava Stewart

“It just came to me—this is the time. This is it,” she said. After that, she developed a plan and began following the steps it outlined, including what to do with the real estate.

Although Parker was satisfied with her decision and happily executing her plan, she says there was one moment of emotion that took her by surprise.

“You get so caught up in the steps and doing things,” she said. “One day, I had to go to the courthouse and tell the city I was going out of business. I filled out the form, and the lady left the counter, and tears came to my eyes. I was thinking of my great-grandfather who started the business and there was some sentimentality.”

Philip Gutsell of Gutsell & Associates is a consultant who helps furniture retailers/store owners exit the business. He says that the first step is to have a plan, and “everything hinges on the real estate.

Liquidating inventory and closing the business is relatively easy in comparison to dealing with Since so many owners have such deep, emotional connections to their stores, they often want to the real estate.” consider marketing the whole business, rather Karen Hall Parker of Cedar Rapids, Iowa, closed than selling or renting the real estate and liquiHalls Home Furnishings, and agrees that having dating the inventory. Selling the entire operation a plan and figuring out what to do with real es- at a profit is tricky, though. Sometimes, a key tate are both important. Before getting to those employee may be able to acquire financing and important things, though, Parker says there was make the purchase, which is a great outcome as long as they are able to purchase the inventory. another difficult hurdle to overcome.

More rarely, a national chain will be willing to “It took me about two years to be able to make buy out an independent operation. the decision,” she said. “It’s always in the back of your mind, and you know you have to face it In both cases, a number of circumstances must sometime: I don’t have anybody to carry on.” For converge at the same time. The owner must be many, just dealing with that emotional reality can ready, or close to ready, to retire. There must be be difficult. Parker continues, “You get to a point an employee who is interested in and financially where you just know it’s the logical thing to do.” able to make the purchase. The location must be desirable, and the building acceptable to, a Most people, regardless of industry or job title, national chain. While these things do happen, have a tenuous idea of when they will retire. Store Gutsell cautions that in 40 years of doing busiowners often face planning retirement with a ness he has only seen it work out so neatly once. combination of optimism and regret. The idea of having more freedom and fewer demands Every situation is unique. Every town has a paron your time is certainly appealing, but as both ticular set of demographics, market statistics and Gutsell and Parker noted, store owners often feel possibilities. In one way, all retiring store owners that they are as connected to their stores as they are the same, regardless of location: They want to are to their families. Dissolving a connection that get as much as possible for their inventories, their close requires more than good financial planning. buildings and their businesses.

Parker says that after letting the idea settle for a “You want to know that by the time you are 60-66 couple of years, one day she knew that the time years old, you have critical mass,” Gutsell said.

“That is, that you have accumulated enough assets was right.

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The Family Business

that you can live off them. In a furniture store the goal is to have everything paid for, the building, the inventory, everything.”

Although each situation is unique, the desired outcome is the same.

If a building is leased, planning is easier, but should still be done well in advance. Gutsell recommends being ready a full year before the lease expires.

“Liquidating inventory will take at least 90 days,” he said, “and you will need a month to prepare for that. That’s already four months—and eight months to plan is not that much.”

Having an exit plan is essential. businesses all around, or in an area of concentrated shopping, the problems will be different than if the store is in a mostly vacant shopping center, or a rapidly declining downtown. There will be hurdles either way, but every situation demands a unique analysis.

Gutsell says it’s best to “look at all of the variables. Do a costbenefit analysis on all the different pieces and parts. Figure out what’s best.”

Regardless of whether an owner leases or owns the property, keeping the exit plan secret is essential.

One of the best routes for business owners planning to sell real estate is to quietly seek the advice of a real estate agent. However, be aware of what the agent has to gain by offering that advice.

No one is a totally disinterested party, and a major part of making a good plan work is keeping it quiet. Luckily, business owners who have spent years cultivating relationships should have solid, trustworthy networks to call upon.

“You go through the motions of tying things up and planning and the hardest part is not telling anyone,” Parker said. There are real and serious risks to letting people know your plans.

Gutsell shared the story of a client who learned that a big chain was coming to his town.

Although he wasn’t quite ready to retire, the client decided the possibility of selling his entire operation and achieving what is called “blue sky” (selling for more than the net worth of the business) was too good to pass.

He met with representatives from the chain and went so far as to open his books to them. Later, he learned that the chain had approached several successful retailers in the area. They were quietly doing market research, and eventually rented a space and became a competitor.

For retailers who must decide what to do with real estate, the need for secrecy complicates matters. Putting the building on the open market is not an option, and there is risk in waiting until the store closes. Parker closed her business just before the recession began.

“I had no idea what was coming, and feel very fortunate that I was able to sell the property within a year,” she said.

Location is the key issue when it comes to real estate. If the store happens to be located in a recently revived city center with new

Ideally, the property should be separate from the business.

Getting them separated removes a layer of complexity. Gutsell recommends making that change (if it’s necessary) well before a retailer is ready to begin implementing an exit strategy. Taking care of smaller steps before the process begins can ease the transition.

Gutsell offers this advice: “Start letting your kids and grandkids know about the fun in the business early on—let them know about the fun as much as you let them know about headaches. Groom them so they like it! Don’t scare them away before they even have a chance to like it.”

Of course, sometimes there are no children or grandchildren to show how much fun the business can be. Or they have chosen to become doctors, or teachers, or to follow some other path. When that is the case, creating a solid exit plan, figuring out what to do with your real estate and not telling the whole town your plans will help you transition successfully from busy retail establishment owner to retiree.

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The Family Business

TIPS FROM THE KIDS: SURVIVING IN THE FAMILY BUSINESS

by Brooke Feldman

A

s the saying goes, things come in threes. Well, it does in my family at least. I’m the youngest of three kids (girl, boy, girl). We each played instruments, but different ones; we each were involved in the arts, but in different media; we each love dogs, but different breeds. Our parents never encouraged us to go into college with big expectations. My dad always said to learn what you love and the rest will come into place. What my dad didn’t expect, however, was that two out of three kids would go into the family business.

That’s right. I’m the black sheep of the family, or at least that is what friends and family jokingly say (it gets old after awhile). My dad opened his own law firm when I was 14 years old with the help of my brother, and eventually my sister joined in as well. Oh, I should also mention my mom helps out in the office too. But while watching Law & Order is a pastime of mine, being a lawyer was never a passion.

To this day, I’m still mesmerized by how my family can work with one another. Sure, there are family events with occasional arguing and eye rolling, and everyone gets that “I desperately need space” feeling. But they see each other every day, and I don’t know how they do it.

When I entered the home furnishings industry, I came into a family business. I’ve had the pleasure of conversing with other young, aspiring storeowners who come from family businesses. I listened to how each interacted with their parents, got a glimpse of what they have learned and have seen parents open enough to learn from their kids. I’ve seen firsthand a new kind of interaction between children and parents. With my own family’s business, I see from the outside looking in. Working in a family business, I wondered how to make coming to work with parents and siblings more exciting.

Does working in a family business become more like a chore you had as a kid rather than an opportunity to grow professionally?

Learn and teach at the same time. A lot of my best work habits come from my dad. He taught me how to be a presentable professional and how to converse appropriately with different kinds of people. While he’s my favorite teacher, he is also very open to hearing about what I do and how it could potentially help his business.

It’s one of the best moments that could happen: you teach your parents something new. Even though you were young when they started the business, you’ve seen it in the best and worst of times, which makes you the greatest free consultant they could ask for.

Don’t be afraid to suggest an idea or ask to take on a responsibility like redecorating the floor or starting social media channels to help boost business.

Make sure it’s not always about work. Last year, my family had a company dinner to celebrate some of their latest successes together. It sounds a little redundant, but a company dinner is different from a family dinner. Family dinners involve unwinding, a chance to not talk about anything that happened during the 9-to-5.

Commemorating business events with your parents is important.

Many companies do bagel breakfasts or special lunches, so why not do the same? Pick an evening out of the week, or the last Friday of every month, and do something together as coworkers. It allows each of you to reflect on the past month and discuss in a casual setting, but you are able to focus on the business—and then have a family dinner.

Great mentors are hard to find, but family will always be there. I take all the knowledge and past experiences from each of my family members and apply them to myself. Never think you cannot grow to be a prosperous businessman or woman if you work in Mom and Dad’s store.

Still thinking in threes, I’ve thought of three ways a young professional can make the most out of working in his or her family business.

Take advantage of how well your family knows you. There’s a

big age difference between my siblings and me. Even though music and fashion make us each unique, my sister and brother know me better than I know myself. From inner struggles to big life decisions, they have provided excellent guidance from a distance. My family knows my skillset and what gets my creative juices going. Get advice from your family’s familiar faces. If you’re not sure where you could help in the store, ask your experts. They might challenge you to create a new business plan, or put you on the floor to see how well you work with customers.

Brooke Feldman, Contributing Editor

Brooke Feldman operates the blog ArtSeed (artseed.typepad.com); she also works for Nourison Industries and is on the Sustainable Furniture Council's board of directors.

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The Family Business

by Megy Karydes

I

How NOT to handle transitioning the family business

There are many important questions to be answered when a family business owner begins to consider who will take over the business.

Experts agree that planning in advance is key and the best exit strategies are put in place well before the decision to leave is made.

It’s just as important for the owner to accept the fact that it’s time to turn over the reins as it is for them to find the best replacement—and that’s sometimes easier said than done.

David Wimer, author of INSIGHT: Business Advice in an Age of Complexity, is founder and managing principal of David Wimer Advisors, LLC, where he works with privately held family businesses to navigate business transitions and prevent financial crisis. We asked him what family business owners should not do when it comes to transitioning the business from the current owner to the next generation.

t’s going to happen eventually: the family business owner will have to transition the business to someone else. When is the right time to lay the foundation? How does the owner decide who will assume the leadership position and what steps can be taken to ensure a smooth transition? Is learning on the job the best education or should the next leader get an MBA?

“The first step is to acknowledge the importance of preparing interested family members well in advance, and that this transition will have an impact on all family members who may have a stake in the company without necessarily working there,” said Emily Bouchard, co-author of Estate Planning for the Blended Family. “The parent currently in charge also needs to prepare for incrementally letting go of control, while remaining available as a mentor and experienced advisor, as they allow their younger generation to take initiative, make mistakes and seek out their recommendations and support as they learn and grow together.”

Bouchard also feels that having clearly defined roles and responsibilities that the next generation can build skills to prepare for is essential. “They need to know the qualifications for the role they are interested in pursuing, and also performance standards,” she said.

Carmen Bianchi is a family business consultant, president of Carmen Bianchi Family Business Associates and founder and director of the EMC Business Forum at San Diego State University. She agrees that in order for the transition in leadership to go well, it’s best to have everyone on the same page from the get-go. She often recommends and serves as a facilitator for family business retreats where the whole family participates and feels part of the process.

In cases where more than one child might be interested in the leading role, Bianchi recommends the owner insist each gets formal training, which could include completing an MBA, and then seeing who rises to the challenge. In the meantime, an interim CEO could be placed at the helm.

1. Ignore the transition. There’s always the potential risk of a crisis-triggering event (untimely death, incapacitation, accident or illness) that would capsize the potential succession.

2. Go it alone. Have professionals on your team to facilitate the process and bring their skills and experience to the table.

3. Wait too long. Business owners immersed in the day-to-day have a tendency to put off strategic matters such as succession, figuring it will resolve on its own. Remember that time and chances are the allies of crisis.

4. Be closed-minded. Having an open mind to creative solutions from professionals can help architect a successful succession plan unique to your business and desires. There’s also a hidden benefit of a plan: it helps you reduce the fears you may have in letting go.

“I recommend honest and open communication upfront with one another to help understand the anxieties, fears and risks of moving forward with the plan,” said Wimer.

“Get these on the table first to identify risks to mitigate, and then the benefits and value to executing the succession plan will become clear. I recommend using a business advisor to facilitate these discussions early on, before engaging the other professionals, so that a solid foundation is built for the succession plan to be crafted.”

“When they go through the education, often they learn their own limits and interests,” said Bianchi. The person who thought he would be interested in the CEO role may realize his skill sets are better suited to head up another division of the company.

Continued on page 38 

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The Family Business

Having said that, she’s quick to point out that if the child wants to lead the company and doesn’t have the skill sets needed but a desire to learn, it is possible to learn the skills through proper education and training.

Also, the owner could be on the board of directors, which would allow him a vote in how the company operates—but not the only vote. She also advises the formation of a board of advisors, which would include the company’s lawyer, CPA and banker.

Bianchi also recommends the next generation CEO work for another company for a couple of years before taking over the family business for one major reason: it creates an aura of credibility among the staff.

Another reason to form an advisory board, according to Janet Johnson, founder of Focused Business Plan, is that it helps the younger generation understand the business from a strategic standpoint and it helps the accountant and lawyer get to know the younger generation. She recommends involving the younger generation in quarterly meetings with the accountant and lawyer early in the transition process so questions can be answered while the current owner is still running the business.

“You don’t want members of your staff to think the only reason your child became the CEO is simply because he’s your son,” she said.

Just as important as deciding who will succeed the owner is figuring out if any family member is truly interested in leading the business. It may come as a shock to some owners that none of their family members want to assume the role; in those cases Bianchi recommends making them owners and bringing in a board of directors while hiring another person to lead the company.

“Although the owner knows it is in the best interest of the company to go through the process of finding a new leader and that he will no longer be at the helm, some owners also fear leaving,” said Bianchi. “They fear they will die or that they aren’t needed anymore.”

By keeping them on as a member of the board, the owner can transition from working in the business to on the business.

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The Family Business

HANDING OVER THE REINS

Father and Son Make it Work

Sharing a passion for the family business is an integral part of the success.

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By Sheryl DeVore

W

hen he was eight, Jeff Selik sold his first mattress at his father, Bruce Selik’s, furniture store in the Detroit area. Jeff remembers the pride he felt when “closing the sale.” But he doesn’t remember, he says, that his mother used to tell him, “Look around young man, this could be yours one day.”

Now, the business is close to being Jeff’s. In 2005, after undergoing heart surgery, Bruce named Jeff president of the company, a job for which he’s more than prepared since he’s spent the last 20 years working from the bottom up.

In 1974, Bruce opened a 7,500-square-foot furniture store. A year later, he decided to focus solely on contemporary furniture, and today Hillside Contemporary Furniture Store in Bloomfield Hills, Mich., covers 50,000 square feet, employs 25 people and earns nearly $5 million in annual sales. www.retailerNOWmag.com

The Family Business

Father and son say the key to the successful transition is based on the lucky happenstance that both are so alike and passionate about their work. But more than that, Bruce says he taught his son from the start that a worker, no matter what his relationship to the owner, has to prove himself. For his part, Jeff says, even though he has full reins, Bruce, now the CEO, is still the boss.

Jeff admits it was “a scary time” when his father was recuperating. “I was told by the doctors, your dad is not going to be able to do anything business-related for 90 days. You cannot bother him with anything.” Jeff says he was nervous, but confident. He didn’t want to let his dad down, he says.

He obviously didn’t, because when Bruce returned to work, he named his son president, a title Bruce had held for two decades.

Bruce says he never pushed his son to follow “I can admit that it’s hard sometimes to be the president of in his footsteps. When Jeff graduated from the a company, but to still keep yourself in check, that you still University of Michigan 20 years ago, he called work for someone else. We do see eye to eye 90 percent of his dad to ask for a job. Bruce said he did not the time,” Jeff says of his father. expect the call and told his son he would have to be interviewed like everyone else. Bruce brought Jeff and Bruce agree that when asked which piece of furniture application paperwork to his interview with Jeff they like best, they nearly always have the same answer. Once and said, “I’m not your dad right now. I’m your when asked what they didn’t like about a bar stool, both said potential employer.” independently, the legs were too skinny.

Jeff started out as a merchandise assistant. Since then, Jeff has worked at nearly every job in the company except for fixing the truck. He ordered merchandise, sold product on the floor and worked in the service department.

“I’m still at the point that I defer to my father,” Jeff says. That doesn’t happen often, but it does happen. There’s that matter of the color blue. Bruce says blue furniture does not sell. Jeff disagrees, so Bruce let Jeff order something blue. According to Bruce, the blue item ended up in clearance.

“Everything he’s gotten, he has earned,” Bruce says.

Today Jeff respects as well as finds humor in what he calls “the blue rule.” During a recent meeting, Jeff’s presentation to his In all their years of working together, father employees included an image of a room with blue walls and and son got into a fight only once. Jeff quit. blue furniture, with his dad standing in front of the furniture.

Later, he asked Bruce for his job back. Bruce “Here’s Bruce in the blue room,” he told the employees, who said yes, adding he would have done the same got a chuckle out of the joke. for any other young employee who needed a second chance.

“Dad knows I’m not going to buy anything blue,” Jeff says, adding “well maybe occasionally a turquoise bright blue, but Though Jeff did expect to become company not navy or royal blue.” president one day, it happened much earlier than anticipated when he learned in 2005 his Jeff recently received another sign from his father that he father needed bypass surgery. trusts his son to run the company. For the first time since he started the business, Bruce took a two-week vacation. Before At the hospital, Jeff told his father not to worry, that, he rarely, if ever, even took a one-week vacation. that he would step in and take over.

Jeff says he has seen other family businesses fail. He thinks it’s “It was kind of scary, but I wasn’t worried, be- because the two generations did not share a passion about the cause I had a good team with Jeff leading it,” business. He and his father, he says, have always had the pasBruce says. “It all just kind of worked out fine. sion to succeed and the belief that honesty is the best policy.

More and more, Jeff took over the responsibilities, and today, he’s really totally responsible. He “When it comes to business, my dad has such an amazing still runs things by me, but doesn’t need my character and integrity,” Jeff says. “When it comes to business, permission to spend something or do some- my father is a man of his word, and he’s trained and raised thing. He’s very smart. His goal is to build the me to be just as ethical. I hope that when people look at me company stronger than it is today.” they think, ‘I’m just like my dad.’”

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The Lifecycle of a Family Business

by Mona Nigam

W

study, 85 percent of these businesses do not make it past the first generation. Lack of succession planning and knowledge transfer are among the main reasons for these failures. These and other economic and management factors have certainly taken their toll on the survival of the family furniture business.

us, the two most important things in our lives

To avoid becoming a statistic, businesses must recognize the importance of family dynamics. In addition to getting along with each other, the family must share their individual strengths and knowledge. Being open and honest and treating each other with respect is essential to lasting success. Effective family businesses can regularly examine and adjust their strategies for sustaining and driving the business forward.

hen Freud was asked what he considered to be the secret of a full life, he

answered, “To love and to work.” For most of are families and work. With this in mind, it is easy to understand the potential power of organizations that combine both family and work into one enterprise: a family business.

Following the great recession, many furniture companies had hoped that they could simply return to the strategies that brought them success in the past and enjoy a nice recovery. Instead, consumers are demanding more innovative products, faster response times and a seamless omnichannel shopping experience. Of course, these are but a few of the many fast-changing trends sweeping our industry. These and other massive changes are pressuring manufacturers and retailers alike to take risks and adopt innovative strategies for making and selling their furniture.

Family businesses are the oldest and most widespread form of business structure. They are also potentially the most powerful businesses in our economy. They come in all shapes and sizes and range from multinational giants such as the Ford Motor Company and Wal-Mart, to the individual corner store. Many of the largest companies in the world developed from, and still are, family businesses. In fact, they comprise one-third of all companies in the S&P 500. With e-commerce outpacing traditional retail growth, mobile devices serving as shopping carts and social media becoming the new word-ofFamily businesses control a huge part of the U.S. economy. mouth marketing, the importance of business technology investment While some of these companies have corporate structures creates something of a generation gap in SME and family-run businesses. with family members acting as shareholders and directors, millions are entrepreneurial in nature with family actively In a recent Microsoft survey of more than 250 small business owners, six managing the business. As is the case in the home furnish- in 10 admitted to having disagreements with younger family members ings industry, the vast majority of entrepreneurial compa- over technology issues. According to the respondents, older business owners are generally less interested in adopting the latest technology nies are small and medium enterprises (SME). solutions unless they directly impact the bottom line, and their chilFor those of us who participate in this industry, it comes dren constantly worry about falling behind competitors. Despite the as no surprise that family-owned businesses generally out- occasional squabbles though, more than 75 percent of business owners perform their competitors. Multiple studies have shown that agreed that technology is important to sustaining their business today, family businesses beat other firms in productivity, revenue while half said it is very or extremely important for growth. and employment growth. Across all industries, the average profit margin of a family business is typically two points While the issue of technology investment serves as a great example of higher than a non-family firm. This possibly comes from the how a family business can struggle determining the best way to grow, family’s long-term view of investment, greater stability and the business can and must leverage both the experience and vision that the trust and commitment they inspire in their employees. comes from the management team to rethink strategies in a constantly changing environment.

Unfortunately, the vast majority of companies that start out as a family-run business do not last long. According to While family businesses face tough challenges, those that plan and colthe U.S. Trust/Campden “Protecting the Family Fortune” laborate effectively can come out on top.

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The Family Business

Keeping Home and Business Separate Can Work—

By Sheryl DeVore

You’re excited about a new product and want to share it with “Everyone needs to be independent away from the office,” Winters your parents who work with you at the family’s furniture business. says. It’s not a good idea to vacation together all the time if you’re Mom and Dad were on sales calls during the day, so the first thing also working together, he says. “It’s too much.” you do when you stop by for dinner after work is tell them about the new products.

When you return to work, you can agree not to talk about family issues in front of employees. Again, use the phrase, “Remember They seem interested at first. But then an hour-long conversation the rule.” occurs, which includes disagreements on what’s best for the business. Dinner becomes a nightmare. What could you have done If it’s something that’s urgent, go into an office and close the door to prevent the argument? to talk.

Perhaps you should not have even introduced the subject and waited until you were all at work. But that’s not realistic, say family-owned business experts.

“It’s very difficult to keep business out of family gatherings,” says Wayne Rivers, founder and president of The Family Business Institute, Inc., in Raleigh, North Carolina. The same holds true for the opposite scenario, when family issues get brought up while at the office, for example Mom wanting to discuss with Dad a speeding ticket their son just got.

You can, however, avoid an ensuing argument or bad feelings, if you and your family set up rules and then follow them.

Rivers suggests when a business topic comes up at a family outing, agree to only discuss positive aspects of the issue or change the subject. Someone in the family can say, “Remember our rule.”

Here’s an example: If someone says at the family barbecue, we are having problems on the production line, another family member can say, “Remember our rule.” The talk could shift to another topic or to a positive aspect of the business, for example, memories of when dad set up the first successful production line.

Keep in mind that family politics and family discussions at the office can make non-family members feel uncomfortable. Families can take on the mindset “that this is a family business, yes, but it’s a serious business and has to be run as such,” says Gina Weathersby, executive director for the Institute for Family-Owned Business in Brunswick, Maine. The goal is to keep both family members and non-family member employees happy. Family-owned businesses that make concerted efforts in that direction have a better chance at seeing their businesses prosper, says Chicago-based Gaebler Ventures, which sponsors Gaebler.com, a website with resources for entrepreneurs. Interacting with family members at work needs to be more professional than the way you interact with them at the summer party.

Winters says families can try another technique to keep business and family relationships as separate as possible. Instead of discussing a business decision off hours, schedule a family council meeting with an agenda. That way, every member will know that their voice will be heard. You might also want to seek an outside source to moderate the meeting.

You might even want to take this article to your family meeting and read it together.

Another suggestion is to restrict smartphone usage at family outings, perhaps even having everyone leave their phones behind. Keep the phones home when going out to dinner or a movie with the family.

Quick Tips for Creating Balance:

Putting the rules down in writing can also help. You can schedule family time on a calendar and mark it as sacred. No one brings up business during those times.

• Write down the rules and pass them around to family members.

Business and family issues do intermingle, but there are ways to combat this issue.

Cultivating interests outside of the business both as a family and as an individual also helps. It gives family members something to talk about besides the business.

Maybe Mom can take art lessons and show her family her latest work, or siblings can take tennis lessons together and talk about improving their backhands.

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• Set up rules for what can and cannot be discussed in the workplace or at home regarding the business and family.

• Designate someone to say, “Remember the rule,” when it’s being violated.

• Cultivate interests outside the business, both as individuals and as a family. Discuss those interests when away from the office, instead of talking about work.

• If a family emergency occurs at the workplace, take the discussion behind closed doors in an office. If not an emergency, agree to discuss it after hours.

• Set up periodic family council meetings to discuss issues. Have an agenda, and ask a non-biased person to moderate the discussion.

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10:00 - 11:00am

NAHFA is Looking Out for Retailers, is the Government?

NAHFA’s lobbyist will outline the legislative and regulatory issues facing the furniture industry today. Find out how recent budget negotiations and pending environmental and labor regulations—like formaldehyde and flammability regulations in furniture and hours of service and proposed labor rules—can make or break your stores. Whether you have 1 or 100 stores, issues like health care, immigration, tax reform, and the 2014 midterm elections will influence how you do business this year.

Presented by: Bill Simmons, Managing Principal, Grayling

11:30am - 12:30pm

5 Steps to Profitable Mobile Marketing

You’ve been asked hundreds of times, “Is your website mobile-friendly?” One of every three clicks to retailer websites now come from mobile devices. This session offers you the rundown on mobile marketing in five steps that cover everything from strategy and concepts (like geo-targeting) to effective placement and writing mobile-friendly copy. Stop living in fear of the mobile shopper—this market you will come away with all the necessities for converting local buyer spontaneity into $$$$ Presented by: Tim McLain, Netsertive, Inc., tradeshows@netsertive.com

1:00 - 2:00pm

Business Intelligence Tools and Key Performance Indicators (KPIs) in the New Era of Big Data

The future of data analytics brings predictive analysis and simpler, more user-friendly interfaces. This session will teach you how to leverage data that already exists in your organization and suggests new tools that allow you to gather more of it.

You’ll also learn how evolving data analytics tools can empower your most valuable resource, your employees, with new formats and customizable views. KPIs can make your organization more agile – the value of knowing who your customers are, what they buy, where they buy and how much they spend.

Presented by: Donnie Surdoval, STORIS

2:30 - 3:30pm

Reap the Rewards of Advertising with Online Video

Never underestimate the power of video! Sight, sound, and emotion have been proven to resonate best with your potential customers. In this seminar you will learn how digital video presents increasingly more opportunities for using crossplatform campaigns, maximizing online budget, and attaining meaningful consumer engagement.

Presented by: Jim Knutt, Sheila Duffy-Lehrman and Delaun Petersen, Tropic Survival/CometAds, jim@tropicsurvival.com

4:00 - 5:00pm

Think Like a Marketer, Not an Advertiser, and Grow!

New research and case studies will defend and define what today’s retailers must integrate into their advertising program to enjoy stronger results with their advertising investment. Attendees will learn how to reach the changing consumer, conquer the dynamic advertising landscape, increase the effectiveness of their advertising, and increase advertising ROI.

First Look Exhibit Building B

Presented by: Doug Knorr, Knorr Marketing 46

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NAHFA MARKET SEMINARS SERIES

1st Floor of Plaza Suites - 222 South Main St.

8:30 - 9:30am

SUNDAY, APRIL 6

Retailer Resource Center at High Point Market

The Outlook For The Furniture Industry

Furniture industry guru Jerry Epperson will once again enlighten us with his furniture research expertise on the current state, and future, of the furniture industry and how it affects your business.

Presented by: W.W. “Jerry” Epperson, Jr., Mann, Armistead & Epperson, Ltd., wwe@maeltd.com

10:00 - 11:00am

Back to Basics: Retail Store Design 101

Learn why store design and layout are important. Starting with the basics and including the latest trends, Martin will share his vast experience in the world of retail furniture store design. Highlighting successful tricks of the trade and today’s latest trends, he will also share his thoughts on the future of the industry. This informative presentation will be followed by a Q&A session.

Presented by: Martin Roberts, M Roberts Design, martin@mrobertsdesign.com

11:30am - 12:30pm

Making Traditional Media & Online Advertising Work Together

This seminar will examine ways that furniture retailers are maximizing their promotional and branding messages by integrating online advertising with traditional media. Charlie and his team will present an innovative online strategy that targets consumers who have demonstrated an interest in buying furniture, including case studies for both small and large retailers. In addition, they’ll look at creative executions that drive traffic to your website as well as through your front door.

Presented by: Charlie Horich, Brad Lebow, Chip Hector, David Weinstein, Horich Hector Lebow Advertising, tproper@hhladv.com

1:00 - 2:00pm

E-Commerce: The Truth About Selling Furniture Online

We’ve all heard the astounding online shopping sales numbers reported for 2013 from online giants such as Amazon, Wayfair, and Overstock. But, what does it take for a smaller furniture dealer to start an online store in today’s world? This seminar examines the ups and downs of starting an online store, how much time and money it takes, and the likelihood of success.

Presented by: Denise Keniston, Web4Retail, denise@web4retail.com

2:30 - 3:30pm

Omni-Channel Marketing: Strategy or Struggle?

Today’s consumer expects to engage a brand whenever, wherever and on whatever device or medium they choose.

Today’s marketing professional is struggling to supply engaging content for print, TV, radio, web, tablet/mobile and social media channels. Building a sound strategy to create and deploy your brand content in the appropriate venue is more important than ever before. Jeremy and his Kreber colleagues will provide insight on today’s consumer and what you can do to rebalance your marketing portfolio so it supports your omni-channel plan. He will also share success stories from key retail clients including Sears, Bed Bath & Beyond and Macy’s.

Presented by: Jeremy Gufstason, Sr. VP of Retail & Digital Strategy, Kreber

2:30 - 3:30pm

The Affordable Care Act and Your Business

The North American Home Furnishings Association invites business retailers to attend this important seminar on how the Affordable Care Act Updates will affect you, your employees, and your business. Even if you think you’re ready for the roll out, this webinar provides a clear, concise breakdown of the rules and regulations, some of which you might not be aware of. This seminar will answer questions such as: What cost increases should my company expect? How do Healthcare Exchanges work? How do I know if my company will be penalized? What are my options?

Presented by: Greg Stancil RHU, ChHC; Director of Healthcare Reform, Scott Benefit Services

www.retailerNOWmag.com

APRIL | 2014

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NAHFA MARKET SEMINARS SERIES

MONDAY, APRIL 7

1st Floor of Plaza Suites - 222 South Main St.

Retailer Resource Center at High Point Market

8:30 - 9:30am

The Ultimate Guide to Instagram Marketing

Everyday, 55 million photos are uploaded, 86.4 million comments are posted, and 691.2 million users like various photos in their feeds on Instagram. If your marketing strategy includes marketing to Generation Y and Millennials, Instagram is kind of a big deal. Learn how best to utilize Instagram in your marketing and website to effectively showcase your store, your business, and your message.

Presented by: Kevin Doran, R&A Marketing, kevin@ramarketing.com

10:00 - 11:00am

Adapting to Maximize the Evolving eCommerce and Digital Landscape

An industry panel will discuss recent trends of how marketing expenditures on home furnishings are significantly shifting to digital channels that focus on the consumer, their wants, needs, and expectations. Through a synergistic collaboration between manufacturers and retailers, panelists will outline their experiences in fulfilling these new consumer expectations. #eCommerce #ConsumerTrends #MicroDSeminar #HPMkt Presented by: MicroD, Inc., monanigam@microdinc.com

11:30am - 12:30pm

Key Performance Indicators: Knowing What Counts

Key Performance Indicators (KPIs) are used for two main purposes: defining what’s important to your business and measuring progress toward your company’s strategic goals. There are a thousand things that can be measured, so how do you know which are the most important? This interactive session will provide a practical approach to managing your KPIs. Discover the top 10 KPIs that will help improve your company’s productivity and profitability, and how to manage them in your business. Lee Rychel and Shelley Parlin have spent their careers studying the furniture industry KPIs and how to use them to create a competitive advantage.

Presented by: Lee Rychel & Shelley Parlin, PROFITsystems, an Accellos Product, shelleyp@profitsystems.com

1:00 - 2:00pm

The Pros and Cons of Different Sales Compensation Plans

Every retail outfit is unique. There is no one-size-fits-all model for sales compensation. During this seminar, we will cover: the different ways of compensating; the pros and cons of each system; how to determine if your method is effective; how to determine the amount a salesperson should earn and stress-free ways to change the way you compensate.

Presented by: Presented by: Joe Milevsky, JRM Sales & Management, Inc., Joe@jrmsales-mgmt.com

2:30 - 3:30pm

Safe-t-y Window Treatments & Design (.01 CEU)

Attendees will have an in-depth look at how to update old blinds/shades and make them safe. The world of window coverings is changing to protect our children. We lose at least one child a month to infant cord strangulation. The laws have changed and designers, store owners, retailers and parents need to learn them and make sure their children and businesses are protected. Margi discusses how to design safe window treatments that will finish the space through color, style, light and function. Also learn the business side of windows—how to brand your company in new and exciting ways.

Presented by: Margi Kyle, The Designing Doctor, designingdr@gmail.com

4:00 - 5:00pm

Targeted Advertising

Driving traffic--and more importantly buyers--into your store is what great advertising is supposed to do, right? You know who your best customers are, but your advertising doesn’t seem to reach them.

What can you do to stack the odds in your favor? In this seminar you’ll learn best practices for reaching your target audience.

Presented by: Bob George, FurnitureCore/Impact Consulting, robin@furniturecore.com 48

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NAHFA MARKET SEMINARS SERIES

1st Floor of Plaza Suites - 222 South Main St.

8:30 - 9:30am

TUESDAY, APRIL 8

Retailer Resource Center at High Point Market

The Essence of Retail: Every Dollar You Earn Passes Through the Hands of Your RSA

There is a moment in time, where all the efforts of manufacturers and retailers come down to a single conversation between Retail Sales Associate (RSA) and shopper. This is where the ownership of goods is transferred from the supply side to the demand side of the equation. Until that happens nothing else matters! RSAs must be prepared and given every opportunity to make the sale. This seminar will teach retailers five steps to increased sales.

Presented by: Gerry Morris, Inner Spring, gmorris@innerspring.net

10:00 - 11:00am

How to Keep and Add Customers in a Tough Economy

This seminar will review several tried and true methods to maintain your current customers’ loyalties while increasing your customer base. Attendees will leave with ideas they can put into practice as soon as they return to their stores, such as: dealing with competition that is offering a high perceived value for a low price; identifying the “value driven” customer and knowing how to sell to them; understanding the buying motive in a savvy shopper and building a long lasting relationship with your consumer.

Presented by: John Egger, Profitability Consulting Group, johne@profitabilityconsulting.com

11:30am - 12:30pm

How To Create, Capture & Convert Prospects Into Paying Customers 24/7

What is your website missing? Jeff will cover three key critical elements every retail website is missing, and why no amount of added effort to drive more traffic to your website will pay off until these three elements are in place. Learn how to set up your business to attract your ideal clients and begin a relationship with them before they even step foot in your store. Retail store owners will learn how to re-evaluate where client relationships actually begin, and to understand that the goal is not to get more traffic, but to begin real relationships with new prospects that are valueadded.

Presented by: Jeff Giagnocavo, Mega Mattress Info Systems LLC

1:00 - 2:00pm

Use Deep Social Media Engagement to Drive Sales

Are all your likes and followers really translating into sales? To keep your business top of mind with today’s social mediasavvy customers, you need to truly connect with them in a context that supports your brand. Autodesk gives you the cutting-edge social media tools and engaging interactive visualization content you need to find, target, connect with, and track millions of engaged home-design consumers, enthusiasts, and interior designers.

Presented by: Anna Shkolnikov, Resident Marketing and Social Media Expert, Autodesk

2:30 - 3:30pm

Turning Demanding Consumers into Satisfied Customers

A relentless wave of new technologies is empowering consumers to be more expressive and expect greater participation.

These changes are beginning to shape furniture and furnishings markets, just as they have impacted so many other industries. Now the consumer directs the experience. What does this mean to you? What does this empowered population do with the technology and media that are now under their control? And how should you respond?

Learn how you can take advantage of advanced, yet easy-to-implement visualization solutions to drive customer engagement and increase sales. From photo-realistic product configuration to 360° product viewing, and floor planning to 3D room design, you can help your customers integrate your products into the story of their lives and homes.

Presented by: Tom Connard, Content Services & Technical Sales Manager, Autodesk

www.retailerNOWmag.com

APRIL | 2014

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NOW Market Highlights

50

See us at RRC booth 39

See us at RRC booth 4

See us at RRC booth 5

See us at RRC booth 36

APRIL | 2014

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Market Highlights

See us at RRC booth 13

See us at RRC booth 42

See us at RRC booth 37

See us at RRC booth 3

www.retailerNOWmag.com

APRIL | 2014

NOW

51

NOW Market Highlights

52

See us at RRC booth 5

See us at RRC booth 11

See us at RRC booths 6 & 7

See us at RRC booth 15

APRIL | 2014

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Market Highlights

See us at RRC booths 20 & 21

NOW

See us at RRC booth 9 Retail Displays & Point Of Purchase Signage For The Furniture & Mattress Industry

soGraphics.c .MOSO | Shop.Mo

77.770 503.719.6867 | 1.8

See us at RRC booths 40 & 41

See us at RRC booths 1 & 2

1993 - 2013

om

THINK MOBILE

2

YEARS

+ web design & hosting. + mobile iPad app. + ecommerce solution. solutions@microdinc.com www.microdinc.com 800-964-3876 1-800-676-4243 • sales@myriadsoftware.com • www.myriadsoftware.com

www.retailerNOWmag.com

APRIL | 2014

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NOW Market Highlights See us at RRC booth 12

See us at RRC booths 35 & 36

Sales are up

30%

* Sofa Select, Google Case Study (8.13)

Our online ads work.

800.940.4351 netsertive.com/furniture

See us at RRC booth 8

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APRIL | 2014

See us at RRC booth 17

www.retailerNOWmag.com

Market Highlights

See us at RRC booths 22 & 23

See us at RRC booth 24, 25

See us at RRC booth 12

See us at RRC booth 18

NOW

Your complete lighting source

We bring life to your showroom through experience and innovation.

We provide lighting design, fixtures and lamps from the world’s best manufacturers. Service Lamp is your complete lighting source for new construction, remodeling, maintenance and operations.

LEDs in stock for immediate shipment!

Call us today at 800-222-LAMP

www.retailerNOWmag.com

APRIL | 2014

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NOW Market Highlights See us at RRC booth 10

See us at RRC booth 32

HIGH POINT MARKET

FEATURED VENDOR for Merchant Services

Please contact the (NHFA) National Home Furniture Association or the representative below for more information.

Trekstone Financial Corporation Rob Oliver PH: (480) 385-7513 CELL: (480) 203-9934 FAX: (888) 488-8842

Endorsed by

www.trekstonefinancial.com See us at RRC booth 14

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APRIL | 2014

See us at RRC booths 19 & 28

www.retailerNOWmag.com

At the RETAILER RESOURCE CENTER you’ll find benefits & business solutions from industry service providers to help SELL MORE - MAKE MORE - KEEP MORE! RETAILER LOUNGE

Plaza Suites | 1st Floor | 222 S. Main Street

STAIRS

ADVERTISING/MARKETING/WEBSITES

TO RESTROOMS 15

14

16

31

17

30

12

SEMINAR ROOM

11

STORAGE

13

CONF A

10

Advertising Concepts of America . . . . . . . . . . . . 39 Fisher Printing, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 13 FurnitureDealer.net . . . . . . . . . . . . . . . . . . . . . . . . 37 LS Direct Marketing . . . . . . . . . . . . . . . . . . . . . . . . 26 Mail America . . . . . . . . . . . . . . . . . . . . . . . . . . 20, 21 Moso Graphics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Netsertive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Practical Promotions . . . . . . . . . . . . . . . . . . . . 33, 34 Tropic Survival Advertising & Marketing . . . . . . . 14

BUSINESS CONSULTING FurnitureCore/Impact . . . . . . . . . . . . . . . . . . . . . . . 6 JRM Sales & Management, Inc.. . . . . . . . . . . . . . 11 Impact Consulting Services . . . . . . . . . . . . . . . . . . 7 Profitability Consulting Group . . . . . . . . . . . . . . . 17

FINANCIAL SERVICES

9

18

29

32

GE Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 NewComLink . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Trekstone Financial. . . . . . . . . . . . . . . . . . . . . . . . . 10

8

19

28

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PRODUCTS & SERVICES

7

20

27

34

6

21

26

35

5

22

25

36

4

23

24

37

3

2

40

1

39

41

Knorr Marketing. . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 North American Home Furnishings Assoc. . . 16, 31 Service Lamp Corporation . . . . . . . . . . . . . . . . . . 30

SOFTWARE AutoDesk, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Dispatch Track . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Furniture Wizard . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 iConnect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 MicroD, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 2 Myriad Software . . . . . . . . . . . . . . . . . . . . . . . . 40, 41 PROFITsystems, Inc. . . . . . . . . . . . . . . . . . . . . . 22, 23 STORIS Management Systems . . . . . . . . . . . . 24, 25 The Smart Designer . . . . . . . . . . . . . . . . . . . . . . . . 18 VividWorks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19, 28

WAREHOUSE & DELIVERY Cory 1st Choice Home Delivery. . . . . . . . . . . . . . . 4 Diakon Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 United Steel Storage, Inc. . . . . . . . . . . . . . . . . . . . 32

42

Brought to you by 43

ENTRANCE

www.retailerNOWmag.com

APRIL | 2014

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Special Advertising Section

HIGH POINT MARKET PREVIEW

The Stetson design shows true personalized comfort with the application of Designer Leather in numerous areas. This timeless design will be the focal point of any room.

Personalizing Comfort is what we do at Omnia.

Omnia Phone: (909) 393-4400 Fax (909) 393-4401 Website: omnialeather.com Website: americanelegancefurniture.com NEW High Point Showrooms: IHFC Main Bldg D1102 & D1141

From transitional to contemporary we’ve got you covered in solid wood.

HUDSON LINE

Cresent Fine Furniture Hudson is an urban contemporary design in solid wire-brushed oak featuring a cantilevered platform bed with floating pier nightstands. Paired with sleek cases on inset plinth bases, Hudson is available in two textured finishes, a light cerused Sand and a Black Tea with graphite cerusing.

Custom T-bar pulls in a white bronze finish complete the look.

Cresent Fine Furniture Phone: (615) 975-4862 Fax (615) 452-0098 Website: cresent.com info@cresent.com @cresentfurn Showroom: #HPMKT - 220 ELM #201

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X X How to grow your business X X Utilizing technology in business X X Connect with and learn from successful retailers

GET INVOLVED

Next Generation NOW is a community of young and engaged home furnishings professionals that are the future of the home furnishings industry.

FUN EVENTS

Working together, this community will develop the next group of industry leaders through educational events and social networking, giving a voice to the unique needs of future generations in the furniture industry.

JOIN THE NEXT GENERATION AT THE INDUSTRY’S SIGNATURE NETWORKING EVENT.

HOME FURNISHINGS June 1-3, 2014 • Phoenix

Join or update your member information at ngNOW.org by April 15th and be entered in a drawing to WIN A FREE TRIP to the HFNC!

Visit www.ngNOW.org or www.theHFNC.com to see the Next Generation NOW endorsed sessions and social events and view the entire agenda.

Next Generation NOW is a hosted community of

NAHFA.ORG • (800) 422-3778 • 500 GIUSEPPE COURT, SUITE SIX, ROSEVILLE, CA 95678 www.retailerNOWmag.com

APRIL | 2014

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MemberMARKETPLACE MORE Programs – MORE Benefits – MORE Savings

IN-STORE FINANCING

Every Day, Every Dollar

Why go it alone? You have access to the lowest EVERY DAY financing rates in the industry.

Our EVERY DAY financing rates are based on over $400 million in annual volume.

Program Benefits:

 Members only prefered rates.

Call (800) 422-3778 today

 Open-to-buy reports & consumer sweepstakes.

to take advantage of these programs

Sponsored by GE Capital

The NEW North American Home Furnishings Association Now offering you MORE than ever.

 Furniture industry insights and case studies.  Consumer spending statistical data.  Members-only holiday specials.

A simple one-page dealer application will have you transacting in less than 7 days!

SECONDARY FINANCING

Don’t Let Opportunity Walk Out Your Door

Capture up to 80% of the of your Primary lenders declined applications with the NewComLink Secondary Financing Platform.

Program Benefits:

`` Multiple Lenders- Access NCL’s marketplace of lenders to provide financing to a broader spectrum of your customers. `` Multiple Products- offer your customers a variety of second- look products including revolving credit, loans and lease purchase. `` Single Integration- Set up the NCL financing platform once then easily change lenders and products.

NewComLink has partnered with NAHFA to offer an exclusive program at preferred member-only rates.

COME VISIT THESE VENDORS AT HIGH POINT MARKET

in the Retailer Resource Center Plaza Suites – 1st floor 60

APRIL | 2014

NAHFA Products Program Helps you with “Touchy” Situations We want you to have the right tools for the job.

With our extensive product offering we are sure you will find just what you are looking for to help your business and boost your level of customer service.

Look no further than your association to help you

SELL MORE - MAKE MORE - KEEP MORE

PRODUCT SPOTLIGHT Mohawk Touch Up Kits

Keeping merchandise looking its best and making sure your customers are happy has never been easier.

The NICK KIT™ Repair Kit Item# M880-0017 1 Kit (32 Pieces) $99.99 (member price)

Standard Wood Touch-Up Kit Item# M881-3300 1 Kit (106 Pieces) $347.09 (member price)

Buff-N-Polish Kit Item# M905-0700 1 Kit (9 Pieces) $55.99 (member price)

Professional Wood Touch-Up Kit Item# M881-3100 1 Kit + Bag (237 Pieces) $920.95 (member price)

Professional Aerosol Kit

Item# M881-2140 $117.04 (member price)

This kit contains a total of 24 cans of a professionally assembled color and finish assortment.

Leather Rescue Kit Item# M850-9002 $508.30 (member price)

The Rescue Kit covers a multitude of leather types.

Products are packaged in an easy to use tool box ideal for any repair technician.

CALL TODAY TO PLACE YOUR ORDER!

Exclusive pricing for association members! Non-members add 25%.

Phone: (800) 422-3778 or (916) 784-7677 Fax: (916) 784-7697 Website: www.nahfa.org Email: orders@nahfa.org Address: 500 Giuseppe Ct, Ste 6, Roseville, CA 95678

www.retailerNOWmag.com

JANUARY | 2014

1

A P RI L

Learn

Networking News is a new feature of RetailerNOW geared toward keeping NAHFA members informed of local Association educational and networking opportunities.

Take Me Out to the Ball Game ballparks in Major League Baseball.

Inland Empire Furniture Dealers Golf Tournament

The Colorado Rockies game offers a great

Wednesday, August 20th 1:30 p.m. scramble Circling Raven Golf Club, Coeur d’Alene, Idaho

backdrop for a casual night of conversation and talking shop with other area retailers. Expand your circle right in your own backyard.

Northwest Regional Summer Education Day

Space is limited; members interested in attending can visit www.NAHFA.org for event details and registration, or call us at (800) 422-3778.

APRIL | 2014

Dallas Region Lunch & Learn

Friday, April 18th 6:40 p.m. game time Coors Field, Denver

in Denver at Coors Field, one of the premier

Thursday, August 21st 8:00 a.m. – 2:30 p.m.

Coeur d’Alene Casino, Coeur d’Alene, Idaho

www.retailerNOWmag.com

Network

Thursday, March 27th 11:30 a.m. – 1:30 p.m.

Dallas World Trade Center Atrium

Colorado Rockies vs. Phillies

Network after work and enjoy a spring night

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Achieve

Ultimate Point of Sale

APRIL 5th to 9th 2014

A truly remarkable

Touch Screen Point of Sale Kiosk

Provide your customers a unique experience that will increase sales and profit.

Our Kiosk will intelligently suggest the accessories and add-on items you designate.

Announcing version15

FURNITURE Packed with SOFTWARE

New features!

New update available NOW!

Enhanced Inventory Control and Special Order features.

Using our iFurniture Point-of-Sale iPad App on the showroom floor lets your sales associates work faster, more efficiently and handle multiple cutomers while closing mores sales.

New Vision Information Systems, Inc. 820 Starboard St. Chula Vista, CA 91914

FURNITURE

Phone: 619 869 7200 Email: info@furniturewizard.com W

furniturewizard.com

Copyright@ 2014 New Vision Information Systems, Inc.

SOFTWARE

The Family Business

Do Your Sales Managers Really Know How to Coach?

by Hal McClamma and Tommy Miskelly

S

ales managers are leaders in a retail home furnishings organization and can have the greatest impact upon sales volume.

However, most sales managers are tagging merchandise, answering phones, opening and closing the store, handling customer service problems, setting the floor and cashiering in addition to taking care of their own personal customers. Most sales managers do very little one-on-one coaching.

If this describes your operation, shame on you!

Before we get involved in training sales managers how to become REAL sales coaches, we require they take an in-depth sales manager quiz. Unbelievably, 81 percent fail the quiz.

And worse yet, most verbalize four incredibly revealing things to their sales staff—four statements that prove they have NO CLUE how to coach a professional sales staff.

At the same time, many stores have salesperson rankings that remain unchanged over time. They have a few salespeople at the top, a bunch in the middle and a few at the bottom, and the bottom sales numbers don’t change—but the salesperson's names do. There is a churn at the bottom that looks like this: hire them, half-heartedly train them, unleash them on incredibly valuable customers, review their poor sales performance, say the stupid four things, fire them and repeat the process all over again.

A sales manager who says these four things is focused on dependent sales performance metrics rather than precedent performance metrics. They will be unable to coach longterm performance improvement. The four statements a sales manager should never say to a struggling salesperson are:

1. You need to increase your sales.

2. You need to increase your close percent.

3. You need to increase your average sale.

4. You need to increase your margin.

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The Family Business

Reviewing performance numbers is NOT coaching.

Passing out reports is NOT coaching.

Yelling and telling is NOT coaching.

These seemingly insignificant and reasonable statements indicate a complete misunderstanding of how to coach performance improvement. These sales managers will fail—and so will many of their salespeople.

There are two facets to the salesperson review process. First is a review of the sales performance metrics or numbers. Second is a review or observation of the salesperson’s interaction with customers.

Performance metrics themselves are split into two very distinct categories, precedent and dependent metrics. Dependent metrics are called “dependent” because they “depend” upon something happening.

The most recognized category in retail performance measurement is dependent sales performance metrics such as sales volume, traffic, average sale, close percent, hours worked, sales per hour, items sold, average items per ticket, average item retail, etc. Most retailers capture some if not all of this data, but on its own, it is not very useful in coaching performance improvement.

Consider a baseball pitching coach that solely focuses on Jimmy and his high ERA, low strike count and unacceptable losses, rather than the skills that cause these undesirable numbers. These dependent metrics may tell the coach what to look for when observing his pitchers, but they don’t help Jimmy at all. “Yelling and telling” the stats only tells someone what they already know.

But Jimmy really wants to hear how to decrease his ERA and increase his strikes.

Unfortunately, like Jimmy’s coach, most retail sales managers attempt to coach based upon the readings, reports or dependent metrics. But precedent performance metrics are the most important metrics utilized for coaching sales performance improvement (or baseball pitching performance!).

A pitching coach should observe or look at all key facets of a pitcher's delivery, things like release point, stance, wind-up, foot alignment, shoulder alignment, etc. All of these little nuances will change where the ball passes over home plate. Each little change at the release will make a big change over the plate.

It is very difficult to coach from dependent metrics alone (such as total sales, average A pitcher’s precedent metrics might include sale, close ratio and dollars per customer). a percentage of early releases. If the pitcher These dependent metrics certainly provide releases the ball too early 45 percent of the insight on what to look for when observing time, the ball will not hit the target. Lower a salesperson’s interaction with customers, the precedent early-release metric to about but the coaching of precedent metrics will 25 percent and the ball will hit the strike zone and the strike count will rise. create real performance improvement.

When sales managers say they are coaching the staff, many are actually just reviewing dependent sales reports with the sales staff. Reviewing performance numbers is NOT coaching. Passing out reports is NOT coaching. Yelling and telling is NOT coaching. Coaching with dependent performance metrics is frustrating for both the coach and salesperson and creates no long-lasting performance increases.

precedent steps are performed well by a person, they will see a very nice increase in their dependent performance metrics like sales volume, average sale and close percent. The secret to coaching is to track and measure the precedent skills—the steps in the selling process.

Hal McClamma, owner of Integrity Business Coaching (IBC), has more than 30 years' experience in the home furnishings industry, focusing on coaching, training and analyzing stores. Tommy Miskelly, business development director at IBC, owns Miskelly Furniture, one of the top 100 stores.

WANT TO BE BLOWN AWAY? Take the FREE RetailerNOW Sales Management Effectiveness Quiz.

Through this quiz, you will clearly ascertain whether your salespeople and sales managers are really set up for success. Most sales managers and coaches are great people, but woefully ill-equipped. You will also receive an in-depth report showing opportunities for improvement or validating the fact you are doing it right. Check out this story online for the link!

Remember, precedent equals skill, and dependent equals results. Coaches and sales managers are to coach precedent skills to change dependent results. Just like there is real science in pitching, there is real science in selling.

In sales, precedent metrics are the identification and quantification of performance of the key skills in the selling system. If these

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Next Gen NOW Member Spotlight

: Tell me about your industry history.

Joey: I started working in the warehouse at 14 years old. It’s a

family business so I came to work and saw my grandfather and my dad. I went from there to delivery and worked on the trucks. I did that through the summertime in high school, and then I moved away for college. But I would come back on breaks and still help out in the warehouse and with delivery. After graduating college, I rejoined Knight Furniture in the front office where I quickly became a credit manager. A few years later, I was promoted to our Gainesville store manager. It’s our second store. Then about two years ago, we were presented with the opportunity to open the Ashley Furniture HomeStore in our market, so I left the Gainesville store and opened the Ashley store from the ground up. I’ve spent the last year and a half helping that move along while still running the Knight Furniture website.

The Knight Legacy—Four generations of history spanning more than a century.

: What challenges do you face working with your family?

Joey: : [Laughs] I’m pausing because I know my dad will read this.

Next Generation NOW (NGN or Next Gen NOW) is a community of young, passionate and engaged home furnishings professionals. Next Gen NOW seeks to give a voice to the unique needs of future generations entering the workforce to educate the industry on how to attract and keep young talent. Connect with members online at ngnow.org or on twitter @ngnow.

: What things do you do to keep business and personal life separate?

T

he furniture industry gets younger every year. In order to embrace the new generation of retailers and welcome them into the business, RetailerNOW features a different member of the Next Generation NOW social network in every issue. Next Generation NOW is the premiere social scene for the new era of furniture professionals. Join the conversation at social.ngnow.org!

For this month’s spotlight, we introduce 30-year-old Joey Gunn of Knight Furniture in Sherman, Texas.

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When I started working for Knight Furniture, I was sat down very quickly and told that it was much easier to fire family than it was to fire anybody else. The reason being is that more was expected of me and if I was going to accept any position within our company, I was going to be held to a higher standard—and help set the standards. When you’re the family and it’s your family business, you’re setting the standard. Some of the other challenges are that there’s almost too much of a good thing. You love your family, but there are some days you come home and, man, you think that he just doesn’t see it your way, or if they’d only think of it this way.

And at the same time, the shoe is on the other foot too. Growing up in a family business, I’ve seen some Thanksgivings that got uncomfortable because of other family members that were working in the business. Maybe I have the benefit of learning from their mistakes. Right now, it’s just my dad and me working together and, I’m not just saying this because he’ll read it, but we do have a really good working relationship.

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Joey: We don’t really get in big fights at the store so there are not

really big fights at home, either. We tell a joke around the store.

When I was hired, my dad looked at me and very bluntly told me that he did not want to hire a yes-man. To which I promptly responded, “Yes, sir!” But it’s true. He has never expected me to be a yes-man for him, and I’ve never considered it my job to be that for him. I benefit from his experience and his ideas and he benefits from my fresh view and my ideas. It’s interesting because we have networked different crowds. And that’s really cool; that’s a larger pool of stores for us to learn from their successes and mistakes. I think my dad and I complement each other very well.

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Next Gen NOW Member Spotlight

: How have you seen the industry change throughout your life?

Joey: When I was working the warehouse, everything from the

way the salesperson wrote up the order to how we pulled the merchandise to how we delivered it was all on paper. It was all handwritten. We’re a company that’s 102 years old. Our credit books were even handwritten. So in the late 80s, we made the move and went to a computer system, oh my god! Now, thinking about opening up without the computer system or having the trucks on GPS would be crazy. We’re really working right now on being omnidirectional. We want the same experience on our website that you would get in our store. Another issue is e-commerce. There are some people we have to worry about now that we didn’t have to worry about back when I was working the warehouse. We didn’t have to worry about Amazon. We only had to worry about our local competitors, and now the game’s changed because the way people are buying furniture has changed.

Before, we were worried about what our competitors were doing.

Now, we worry about what the rest of the world is doing.

: What do you think the industry needs to do to adapt to the changing consumer?

Joey: Be omnidirectional. You’ll get a website and it’ll look really

It seems like this generation runs to the information they want instead of waiting for the information to run to them. Trying to figure out the best platform to get your message out is really challenging because there’s way more platforms than there’s ever been.

Where do we need to run to get our message to the right people?

: What challenges have you personally faced in the industry as part of the younger generation?

Joey: I’m generation number four. There are a lot of statistics on

going from generation one to two and two to three, but there’s not a whole lot of three to four yet. I feel very fortunate to be a part of a 102-year-old company. This is more than a job to me. It’s actually more than a career to me. This is pride, this is my family’s name, so making this thing successful means a lot to me. More than I can put into words. You want to be able to prove, as the president’s son or as the next generation, that you’re not just doing this because you’re the unemployed loser of the family that couldn’t get a job somewhere else. This is not a family charity. This is passion.

When I took this job, my dad told me that as I got closer to him and his work style, I would probably start to lose respect for how he does his job. What actually ended up happening was that I gained respect. We have standards set for hiring family that are different from just hiring otherwise. We expect family here to set the standard. We’re going to hire them if it’s the best thing for Knight Furniture; if they’re the best candidate. If there was any family member that wasn’t going to work out, we typically just don’t get in that boat to begin with. That’s tough sometimes because they’re still your family and you want to help, but luckily we haven’t had that problem recently. My generation has not had to deal with that.

good online, but when you go into the store, you need to have the same experience. Even something as simple as having the same images from the web in the store, or being able to quickly get customer information, has really been challenging for this industry. People want to track their delivery online. People want to be able to buy online at 3 a.m. And that’s awesome, that’s really cool, but where does your salesperson fit in all that? We : What advice do you have for new retailers? think we have the answer at Knight Furniture. We still contact them and make it a personal experience. We’re not trying to be an e-tailer. We’re trying to have the website be part of our in-store Joey: It’s interesting that you ask that because we just opened the experience. You should be able to come into my store and fill up Ashley store. I think one of the better things we did is that we your shopping cart, then go home and click a button to order it recruited for it and found the staff we wanted. We didn’t go out after you show your husband. Or you should be able to do it the and hire everybody else’s problems. “Hire for attitude and train other way, you picking it all out, then come in the next day and for skill.” That’s an Ashley line. I didn’t go out and try to find print out your shopping cart and check out. It’s free-flowing. It a bunch of people that had sold furniture before. I tried to go works in all directions. It’s definitely what the customer expects. out and find a bunch of people that could have relationships. I can train the furniture knowledge. I can’t train relationships. It’s : What are the biggest challenges facing retail- either there or it’s not. Relationship building, people skills, it all starts right there. If your front line is broken, you’ll never make ers today, aside from technology? it to your back line.

Joey: It’s still a technical challenge, but we keep hearing about : What advice do you have for seasoned showrooming. We’re currently trying to make it easier on our customers to showroom us with us. If you’re looking at a sofa on retailers? my floor and you’re tempted to showroom me, I want to have the QR code there for you to easily access the item on my website Joey: The customer has changed. Brick and mortar is more imporas you’re standing in my store. I don’t want to be afraid of show- tant to you than it is to the customer right now. rooming. I just don’t want you to showroom me with Amazon.

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Product Focus

STAYING ON TOP-OF-BED TREND

by Mike Douglas

I

n today’s retail environment defined by shrinking margins, increased competition and decreased customer loyalty, maximizing every sales opportunity is vital. When it comes to furniture or mattress stores, the days of looking at top-of-bed accessories as a necessary evil—or not looking at accessories at all—are over.

Top-of-bed is an emerging industry that provides a great source of supplemental revenue to retailers. A growing number of retailers shore up their margins and increase customer loyalty by broadening their product selection to include a wider variety of bedding accessories. This allows retailers to sell the complete sleep experience instead of just selling a mattress.

When customers buy new mattresses, they often need to buy new sheets, pillows, mattress protectors, comforters and other accessories at the same time. If furniture and mattress retailers aren’t able to offer those natural add-on products, they are essentially sending all those guaranteed sales dollars to big-box or online retailers. Capturing those sales by matching customers with the right products not only strengthens sales and margins, but it also increases repeat transactions.

In order to sell your customers the right accessories, you need to carry the right accessories. But how can you be sure what accessories are right for you? Here are a few trends in the top-of-bed category that will put you on the cutting edge and keep your customers coming back for more: XX Temperature Regulation: Whether you’re too hot or too cold when you sleep, temperature is a problem for many and few take proper steps to address the problem. Liquid-gelcoated and gel-infused foams have been around for years, and improved formulations and technologies have kept gel relevant in the temperature regulation category. These innovations have increasingly spread from mattresses to pillows and other accessories. A newer trend in top-of-bed temperature regulation is phase-changing material. Phase-changing materials absorb, store and release heat as needed to create a comfortable sleeping climate in hot or cold conditions.

XX Performance Fabric: Performance fabrics wick moisture away from the body, allowing for a dryer, more comfortable sleep. When used in sheets, pillowcases or protectors, fabrics like Tencel and rayon from bamboo combine moisturewicking properties and a soft hand to provide ultimate comfort.

XX Sustainable and Natural Products: The demand for products made with natural or sustainable components continues to increase. Materials like wool, cotton, bamboo, latex and eucalyptus can be utilized to create luxurious bedding products that appeal to the more environmentally conscious consumer.

XX Creating a Sleep Shop: While this trend isn’t driven by technology like the others, it is equally important. Creating a sleep shop—a store within the store that combines a cohesive blend of product selection, visual presentation and product knowledge—lends credibility and legitimacy to your sales team and their subsequent product recommendations. This takes a little extra training and effort but the payoff is well worth it.

Take time to evaluate your current situation. Are you maximizing every opportunity? Do the accessories you offer match up well—both in style and price—with your mattress selection?

If you spend time educating your customers on why latex or memory foam is the best mattress material for their needs, are you capitalizing on the opportunity by selling that customer a latex or memory foam pillow as well? If someone wants a gel bed for temperature regulation, you should suggest a moisture-wicking or phase-changing material for sheets and mattress protectors. If you focus on natural or renewable bedding, make sure you have sheets, protectors, pillows and other accessories that complement your mattress selection. Do you have a sleep shop or just a shelf in the back of the store that is collecting dust? Once again, the key is to make sure you aren’t sending those easy add-on dollars out the door; broadening or focusing your top-of-bed assortment to include the right products is the best way to do that.

While this may seem overwhelming or intimidating, there are experts that can help you make the decision on what to carry and how to sell it. If you’re new to bedding accessories, start small with a few SKUs per category (pillows, sheets, protectors, etc.) to test the waters. From there you’ll see what resonates with your customer base and you can expand on what works well for you. Before long you’ll see your revenues, margins and customer satisfaction trending in the right direction.

Mike Douglas is the director of marketing at Malouf.

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Community Today

James Prutilpac, Jr., is the sales manager for Chuck’s Furniture and Mattress, a retail store in Morgantown, West Virginia. His family opened the store in 1967 with low-end to medium furniture. Over the years it’s moved to a more customized designer store but still offers lower-priced starter sets to appeal to the entire community, including students who are part of their college town. His grandfather, Chuck Prutilpac, founded the company and now his father, Jim, and stepmother, Christy, are the current owners. His grandfather still maintains a presence and can be found in the building on a daily basis. His sister Elizabeth runs their mattress store, America’s Mattress.

He began working at the store during the summers when he was 11.

Charlie Wienberg owns Blanchet Canadian Rocker & Furniture, a small retail furniture store specializing in Canadian glider rockers, recliners, accent chairs, occasional tables, clocks and framed wall prints. Wienberg purchased the store, first established in 1982, from its original owners 21 years ago and is based in Manchester, New Hampshire. He decided to keep the business name since it was already established and had a respectable reputation in the area.

Robert Naboicheck is president of Gold Bond Mattress, an independent mattress and futon manufacturer that offers high-quality mattresses (crafted from US-made materials) at affordable price points. The company also runs a retail operation. Gold Bond has always been family-owned and operated; it was founded by Robert’s grandfather, Isador Naboicheck, in 1899 in Hartford, Conn., where it is still based today.

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By Megy Karydes

I

t’s a scenario often played out at the kitchen table: do you go into business with your family or not? After all, the bond that is the foundation of a thriving family business can also create blind spots. From unclear responsibilities to how to handle the future of the business, it can become one muddy pot of pressure.

For others, being in business with their family members has reaped greater rewards than just financial. From the camaraderie they feel working toward a common goal to being proud to be part of a legacy, our three experts say being part of a family business is important to them, their families and their communities. They shared with us some of the ways they keep their relationships and businesses strong.

members?

: What are some of the benefits of working with family

Charlie: The biggest benefit of working with my family is we all

know what the stakes are and everyone is equally concerned with how things go. Another benefit is that our family understands the intricacies of running a small business and the responsibilities that come with it—running late to dinner because a customer was in the store is definitely something my whole family understands can happen at any time.

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Community Today

James: When working with family, there is a greater level of com-

needs—this is our legacy and we have to preserve it. It is also beneficial for our consumers because, with recent trends indicating more and more buying from small businesses, they like to see that we are hands-on, own our company 100 percent and have a rich family history behind each product.

Robert: The benefit of working directly with family members is

: Do you feel you can be more candid with direction or criticism with family members because they are family or do you feel you need to be more cautious because you know you’ll be eating dinner with them soon?

mitment, in my opinion. This isn’t just a job for most of us. We want the business to succeed because we care about the legacy our family has. We care about this community. We are also able to trust each other whole-heartedly. We are in this together.

there is a sense of camaraderie and a duty to uphold the family history. My grandfather started this company with the intent of the business continuing long term and being passed down through the family. When that is your goal there is a different motivation to grow and thrive.

business?

: Do you promote the fact that you’re a family-owned

Charlie: We are very open about being a family-owned and

operated business. There are very few mom-and-pop businesses left, especially in our area, and many customers mention how they prefer to do business with a locally-owned and operated family-run business. I firmly believe we are still in business today because we are a family-run business that cares about and supports our community as much as possible.

Regarding our advertising efforts, our entire family has been involved with promoting the store since we purchased it in 1992. We take regular family photos in the store for the local newspaper and my daughters, Emily and Molly, have been recording radio commercials since they were toddlers. Customers come in on a daily basis mentioning the pictures or the newest radio commercial—a great sign that my family-focused advertising strategy must be working!

James: We definitely advertise the fact that we are family-owned

and operated. I think it is extremely beneficial. Many people have been purchasing their furniture from us for generations and people like to know that it is still the same family they’ve been dealing with for years. We live in a fairly small community, many people know us personally. People respond well to that. We try to focus on quality and American-made products when we can.

It is much more believable, and genuine, to say we want to keep jobs and money local when we live down the street. People who know us also know that we try to do that in our daily lives. We eat at local restaurants. My dress clothes come from Daniel’s Men’s Store, which has been a Morgantown staple for decades. We support those around us and believe they want to support us as well.

Robert: We do tout our business as being family-operated and it

does resonate on two levels. For our retailers, it has proven to be beneficial because many of them are also family-operated and they appreciate that they can call us at anytime and there will always be someone to respond. They appreciate the hands-on approach and extra care we have for both our product and our customers’

Charlie: We are candid with each other and, as a matter of

fact, most of our discussions take place at the dinner table. My daughters have been recording radio commercials for the store for almost 20 years, and some of our best lines for our commercials have been created over a plate of pasta or while enjoying some Sunday morning cinnamon rolls!

James: I think it falls more to the candid side. My father and I

can have long debates but it doesn’t become anything more than that. We like to discuss and analyze things. That doesn’t mean we ever go home mad at each other. We just have strong opinions.

I think that helps in many ways. We can speak our minds and being able to voice opinions leads to success. If I think I have a good idea or think someone else has a bad idea I’m not afraid to tell someone. I may or may not be right but the idea at least gets out to be discussed.

Robert: It’s a double-edged sword. There are times when you

have to be cautious and other times where you can be much more candid when working with family members. The important thing to remember is to keep a balance between work and family and not bring work into family time and vice versa even though it is sometimes challenging to not cross that line.

: How do you resolve differences or disagreements?

Do you have a policy in place to handle them?

Charlie: Since I truly run all aspects of the business, disagreements hardly exist. If there is a decision I need guidance on, I will consult my family and listen to their opinions.

James: Between family members, there is no policy. We generally just discuss things until we hash it out. Because we are more candid and less formal with each other it can appear unprofessional to our staff so we try to do these things in private. From the outside, it may not appear as civil as it is. It’s also good to have a united front. If we all stand together, our employees and customers are more likely to stand behind us as well.

Robert: We do have a legal buy and sell agreement in place, but in general we listen to each other and can usually come to compromise.

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Community Today

: Does everyone have a clear role within the company to handle specific tasks or does everyone do whatever needs to be done?

helps. Whatever needs to get done will get done, and everyone will step in when necessary.

Charlie: I am the full-time owner and operator and manage all

: What advice would you give someone who’s consider-

Robert: Everyone has a clear role in the company but if something

Robert: First I would say it is crucial to work somewhere else just

aspects of the business, looking to my wife, Ellen (an elementary ing going into business with a family member? school teacher), to assist in decisions about what products to sell, operating hours, advertising and marketing. My daughters, have become much more involved through the years helping out at the Charlie: The most important thing to remember before going into store with sales, merchandising, new media marketing and even a family business is that it is a business that happens to be run by a family. I know the old saying is family comes first, but everyone painting the store during one summer vacation. needs to be on the same page when looking to start a business to James: Most of our family members fill many roles and often ensure as smooth an operation as possible. I have often said to fill in where needed. Because we have all been in the business for people that I don’t own a business, but that the business owns me. many years, we can give insight into different aspects of the business. My sister, Elizabeth, has the closest thing to a role. She runs James: One of the biggest issues people need to think about when our stand-alone mattress store, which is an America’s Mattress working with family or friends is how it will affect their relationfranchise. Because she is located in her own building, she doesn’t ship. Just because you love your brother doesn’t mean you’ll work interact directly with us as much. In the main store, managing is well together. Some of our family members just cannot work well shared between my father, stepmother, our office manager Tara together and it certainly strains the relationship. There is no way and myself. Like many people who have worked with us, she has to be certain before you go into business but with enough thought become like family. and planning you can minimize the risks. has to get done, whether it’s driving the truck to make a delivery because someone is out or covering for a sales associate, everyone

to get an outside view of things and gain some external experience.

The second is to understand that you will probably be held to a Continued on p.74

Wienburg Family Photo

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higher standard working for a family member than anywhere else; the expectation level is definitely higher.

:: What would surprise outsiders about working in a family business?

Charlie: Being a small family business and having my wife and

daughters involved to some extent has a major effect on how I view what I do. I never look at it as a job; it is truly who I am and what our family does. Former customers say hello when I’m at the grocery store and mention how much the girls have grown over the years through the newspaper pictures.

But what people probably don’t know about working in a family furniture business is that everyone always seems to know what’s going on and is very involved. “A good day at the store” typically turns into a lengthy conversation about who came in and what products were sold. Our whole family has an interest in the store and hearing about how things are going, which I’m sure is different for many families where the parents have different jobs.

James: Most people don’t know what it’s like to live your career.

We take our work home with us. We think about it while going to sleep. We wake up in the middle of the night worrying about this

sale or that product. That isn’t to say that others don’t do this but I think working with family members magnifies it. When an idea pops into your head at Thanksgiving dinner, you don’t hesitate to bring it up. To us that’s normal. My wife doesn’t entirely get it. When she is off work, she doesn’t want to be thinking about it. I love what I do so I don’t consider it work. As the cliché goes, furniture is in our blood.

Robert: Most people probably wouldn’t know that there is an

extreme level of pride in working with family members and knowing that they are there for you professionally and personally.

There is also unconditional trust and support which you might not always find working with non-family members. There is a great level of satisfaction and self-worth knowing you are continuing something that was started three generations ago.

: What was the funniest or strangest thing that has ever happened while working with your family members?

Charlie: I always get a kick out of customers who come in the

store and ask for “the girls” because they’ve heard them on the radio; they even quote lines from our commercials. It is also funny when a customer asks if the girls in the radio commercials are “really” my daughters.

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James: I was in our commercials for numerous years when I was

on fabrics and pillows for a sofa to put on our floor. My father, stepmother, Tara and myself all go to market. As we look through product, we all give our opinions on what we think can sell in our area. We look at what we might be missing on our floor and find product to fill those gaps. When it comes to upholstery, I look at the big picture for what we can sell and let others pick the details.

Those commercials also tie into the family-owned brand we try to portray. It’s been almost 15 years since I’ve done an ad and there are customers that recognize me from those commercials. Many of our customers who have been shopping with us for years tell me they watched us grow up through our commercials. We became a part of their family.

When it comes to case goods, I’m much more interested. I am a hobbyist woodworker so I pay more attention to the nuts and bolts of the furniture. I look for dovetailing, mortise and tenon joinery, and craftsmanship. We all bring something different to the table and make it work together. Just like a family.

younger. Looking back, they were extremely corny. There was a set of commercials where I dressed up in a matador’s outfit and spoke Spanish. I also did a Halloween commercial where I was dressed as a vampire and my stepmother was a witch. Once I went to high school, I never heard the end of that.

Robert: There is no board or committee at Gold Bond; we incor-

: How do you handle buying, sales or marketing deci- porate advice from our manufacturing department on the product side and from our sales associates and customers on the sales and sions? Who attends markets?

Charlie: I handle most aspects of the business, with Ellen and the

girls contributing how and when they can. I have not attended a market in many years because of how niche my product line is.

marketing side and create the best products and marketing strategies we can. At the end of the day, my son and I work together closely to get things done. We both attend High Point Market and ISPA market, as well as regional markets across the country.

James: I would say that buying is largely handled by commit- Megy Karydes is president of Karydes Consulting, a boutique marketing and tee. Some of us are better at some things than others. I’m not a great designer so I will definitely not be making the final decision

communications firm. Her work has appeared in national and local consumer and trade magazines including USA Today, Natural Awakenings and Chicago Health magazines.

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Fresh Perspectives

By Jeff Giagnocavo and Ben McClure

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ith no hope of the “good old days” returning, isn’t it time you considered a new selling approach in your store? Retail as we know it is dead. There are no more hopes that the good old days are coming back, at least in my mind.

Sorry if that bursts your bubble, but the truth hurts sometimes.

Retail IS dead. To combat this change in our store, we created a process where first we engage our customer by educating them about their purchase, then we deliver media via automated systems so the consumer can acquire information about the purchase at their pace. Plant a seed, cultivate it and harvest it systematically and automatically. We call this process “infotailing.” It has helped to transform our business from a “me too” retail establishment to a thriving, competition-crushing, market-leading, undeniable choice for a consumer. And you can do it, too.

Step 1: Create a Unique Information Position (UIP)

Pull back the curtain on your entire buying process. This productdriven information is typically given away via an opt-in box on your website, and should be your best stuff. Imagine a customer saying to themselves, “If they are giving me this before I even visit the store, what else awaits me when I am there?”

Having unique information to offer a customer lowers fear, gives them an education about their forthcoming purchase and ultimately positions you as the leader in the marketplace.

One of the most common themes we hear in our testimonials is that we made the process easy and eliminated their fears in making the purchase. You can see an example of our UIP sleep guide, “What’s Keeping You Up at Night,” on our website, GardnersMattressAndMore.com.

Step 2: Create an Interesting Customer Experience This should be something customers can get only from you, the defining “thing” that only you can offer, and is not easily copied.

Our Dream Room is a private mattress testing room. Customers can get comfy, read a book, watch TV or even nap. Customers that use this room always end up purchasing from us—we have a 100 percent success rate.

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Fresh Perspectives

Step 3: Offer an Incredible Guarantee

Step 6: Do Not Offer Price Cuts or Deep Discounts

Try to eliminate all the risk swirling around in your customer’s mind. We tie our “Love Your Mattress” comfort guarantee to use of the Dream Room and Our Sleep Guide. When our Dream Room is used to purchase a mattress, we extend a one-year comfort guarantee. The customer’s time investment with us underwrites our risk. We have a .5-percent return rate doing this, but consider the dollars made as result of having this in place.

Instead, offer value-added items that can be bonuses as part of the purchase. Look for low-cost, high-value products. If you must discount, have a procedure. There is more perceived value in a system of discounting (like holiday promotions and coupons) than there is for simply saying, “Sure, I’ll take X% off if you pull the trigger now.”

Step 4: Develop Your Sales Choreography

Even the best actors use scripts. Develop a script for everything.

Consider all touch points and make sure the script always answers “WIIFM?”—What’s in it for me, as the consumer? How does the customer benefit?

In our sleep assessments (really a nice way of saying sales choreography), we engage in a sit-down conversation with a clear goal that we state when we introduce the sleep assessment. Our choreography begins like this: “Rather than us tell you all about what we would like to sell you, we feel it makes sense to have a seat in our customer lounge and discuss your individual sleep needs. What would tomorrow morning feel like if you found the right mattress today and could sleep on it tonight? Would you be open to that?”

Rarely, if ever, are we turned down, and when we get resistance we simply conduct the assessment with the customer as we navigate the showroom.

If you think customers are blind to the usual used-car tactics, think again. We actually attract more customers because we don’t promote or sell in this fashion. Our customers choose to buy from us because of us—and because of our testimonials, our commitment to community and their earned trust.

Step 7: Get Money Moving Forward

Always have an upsell offer and premium package/service for your best customers and don’t be afraid to show it off. This makes your other mattresses look like a value.

We properly fit pillows first, so customers often leave with pillows and come back later to buy the mattress. This gets the customer doing business with us and makes it much easier to get them back in the store later. Plus, at times we will offer a chance for customers to get their pillows discounted or free if they come back to buy the bed within a certain period of time.

Step 5: Systemize Lead Flow

Capture leads via opt-in boxes on your website, emails and other marketing efforts, plus have an auto-response sequence in place for follow-up marketing. An opt-in box collects customer information in exchange for something of value, typically an information piece like a free report. Think of what information you have that is unique and that you are willing to give away in order to begin a dialogue with your customers.

In the store, offer a summary sheet when a sale is not made—a price quote and summary of your conversation— in exchange for contact information. Getting these details becomes very easy when proper sales choreography is followed.

Jeff Giagnocavo and Ben McClure are co-owners of Gardner’s Mattress & More and founders of Mega Mattress Margins.

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Government Relations

Government Relations

Posted for All to See: Labor Law Posters

By Lisa Casinger

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following states, since the agencies in these 32 states publish bilingual postings: Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Maine, Michigan, Minnesota, Missouri, North Carolina, Nebraska, New Hampshire, Nevada, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, South The posters inform employees and employ- Carolina, Tennessee, Texas, Utah and ers about their rights, as formulated by the Washington. It is an employer’s responfederal and state governing bodies. Clearly sibility to inform their employees, either employers must adhere to the laws outlined English- or Spanish-speaking, of their rights on the posters, and employees should be under employment law. Some employaware of their rights, but the displaying of ment law posters are available in languages the posters is also critical. Neglecting to dis- other than English or Spanish. The federal play the proper posters could result in fines FMLA regulations indicate that “[w]here up to $17,000, even worse if an issue de- an employer’s workforce is comprised of veloped with an employee who could claim a significant portion of workers who are ignorance because of improper posting. not literate in English, the employer shall Most fines are determined on a case-by-case provide the general notice in a language in basis and vary by agency; maximum fines which the employees are literate.” would be incurred for repeated violations.

Updating —Periodically these posters are updated, and as an employer you are POSTING GUIDELINES Accessibility —The posters must be ac- required to keep up with and post these cessible to all employees, which means changes. Each state may also have its own post them in places employees frequent set of required labor law posters; these daily (break rooms/cafeterias, copy rooms, also must be kept current and displayed near time-clocks, etc.). If your company prominently. occupies multiple floors or buildings, it’s mandated by the U.S. Department of WHAT TO POST Labor that the posters are available on each There are a handful of posters employers floor and/or in each building. Obviously are mandated to display. All posters are each separate physical location would be listed and available to download on the required to display its own set of posters. U.S. Department of Labor website (dol.

If your company has an intranet you could gov). Each poster has specifications to be also (not instead of ) post copies of the post- compliant—for example the Occupational Safety and Health Administration requires ers on the home page. the OSHA Job Safety and Health: It’s the Legibility —Employees must be able Law poster to be at least 8.5” x 14” with to decipher and understand the copy on 10 point type. the posters (readable font, large enough print); you should also have posters The following must be posted in your place in English and Spanish, (or any other of business (per the U.S. DOL): language that is common among your employees). Spanish version postings are Equal Employment Opportunity is highly recommended for employers with the Law —Provides information conSpanish speaking/reading employees in the cerning the laws and procedures for filing hen you consider all of the rules and regulations that accompany owning and running a business, displaying labor law posters may seem insignificant; but it’s not. You are required as an employer (even if you have only one employee) to post state and federal labor law posters—AND keep them current.

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HOT Issues The NAHFA is monitoring these issues for its members:

• EPA regs regarding formaldehyde and CPSC regs regarding flammability in furniture • Marketplace Fairness Act (online sales tax) • Interchange fees (debit card; swipe fees) • Tax reform • Healthcare reform • Employee/labor regulations • Hours of Service • Prop 65 • Immigration reform complaints of violations of the laws with the Office of Federal Contract Compliance Programs.

Fair Labor Standards Act (FLSA)—

Establishes minimum wages, overtime pay, recordkeeping and child labor standards for private sector and government workers.

The FLSA is administered and enforced by the Wage and Hour Division.

Family and Medical Leave Act (FMLA) —Provides an entitlement of

up to 12 weeks of job-protected, unpaid leave during any 12-month period to eligible, covered employees for the following reasons: 1) birth and care of the eligible employee’s child, or placement for adoption or foster care of a child with the employee; 2) care of an immediate family member (spouse, child, parent) who has a serious health condition; or 3) when the employee is unable to work due to his or her own serious health condition. The FMLA is administered and enforced by the Wage and Hour Division.

Government Relations

Space Saver 1

Equal Employment Opportunity is

TM

THE LAW

EMPLOYEE NOTICE – Your Rights Are Protected The State of California and the Federal Government have established laws and regulations that protect the rights of employees. As your employer we are conspicuously posting the information that is required by the State of California and the Federal Government to better inform you of your rights as an employee of our company. If you should have any questions regarding these postings, please contact the personnel office or your immediate supervisor.

U.S. DEPARTMENT OF LABOR EMPLOYMENT STANDARDS ADMINISTRATION Wage and Hour Division Washington, D.C. 20210

NOTICE

EMPLOYEE POLYGRAPH PROTECTION ACT

The Employee Polygraph Protection Act prohibits most private employers from using lie detector tests either for pre-employment screening or during the course of employment.

PROHIBITIONS

Employers are generally prohibited from requiring or requesting any employee or job applicant to take a lie detector test, and from discharging, disciplining, or discriminating against an employee or prospective employee for refusing to take a test or for exercising other rights under the Act.

EXEMPTIONS*

Federal, State and local governments are not affected by the law. Also, the law does not apply to tests given by the Federal Government to certain private individuals engaged in national security-related activities.

Applicants to and employees of most private employers, state and local governments, educational institutions, employment agencies and labor organizations are protected under Federal law from discrimination on the following bases:

RACE, COLOR, RELIGION, SEX, NATIONAL ORIGIN Title VII of the Civil Rights Act of 1964, as amended, protects applicants and employees from discrimination in hiring, promotion, discharge, pay, fringe benefits, job training, classification, referral, and other aspects of employment, on the basis of race, color, religion, sex (including pregnancy), or national origin. Religious discrimination includes failing to reasonably accommodate an employee’s religious practices where the accommodation does not impose undue hardship.

DISABILITY Title I and Title V of the Americans with Disabilities Act of 1990, as amended, protect qualified individuals from discrimination on the basis of disability in hiring, promotion, discharge, pay, fringe benefits, job training, classification, referral, and other aspects of employment. Disability discrimination includes not making reasonable accommodation to the known physical or mental limitations of an otherwise qualified individual with a disability who is an applicant or employee, barring undue hardship.

AGE The Age Discrimination in Employment Act of 1967, as amended, protects applicants and employees 40 years of age or older from discrimination based on age in hiring, promotion, discharge, pay, fringe benefits, job training, classification, referral, and other aspects of employment.

SEX (WAGES) In addition to sex discrimination prohibited by Title VII of the Civil Rights Act, as amended, the Equal Pay Act of 1963, as amended, prohibits sex discrimination in the payment of wages to women and men performing substantially equal work, in jobs that require equal skill, effort, and responsibility, under similar working conditions, in the same establishment.

EXAMINEE RIGHTS

Where polygraph tests are permitted, they are subject to numerous strict standards concerning the conduct and length of the test. Examinees have a number of specific rights, including the right to a written notice before testing, the right to refuse or discontinue a test, and the right not to have test results disclosed to unauthorized persons.

ENFORCEMENT

The Secretary of Labor may bring court actions to restrain violations and assess civil penalties up to $10,000 against violators. Employees or job applicants may also bring their own court actions.

ADDITIONAL INFORMATION

Additional information may be obtained, and complaints of violations may be filed at the local offices of the Wage and Hour Division. To locate your nearest Wage-Hour office, telephone our toll-free information and help line at 1-866-4USWAGE (1-866-487-9243). A customer service representative is available to assist you with referral information from 8am to 5pm in your time zone; or if you have access to the Internet, you may log onto our Home Page at www.wagehour.dol.gov.

THE LAW REQUIRES EMPLOYERS TO DISPLAY THIS POSTER WHERE EMPLOYEES AND JOB APPLICANTS CAN READILY SEE IT. *The

law does not preempt any provision of any State or local law or any collective bargaining agreement which is more restrictive with respect to lie detector tests.

U.S. DEPARTMENT OF LABOR

WH Publication 1462 June 2003

EMPLOYMENT STANDARDS ADMINISTRATION Wage and Hour Division Washington, D.C. 20210

(AIO Rev. 12/04)

SAFETY AND HEALTH PROTECTION ON THE JOB

State of California Department of Industrial Relations

California law provides job safety and health protection for workers under the Cal/OSHA program. This poster explains the basic requirements and procedures for compliance with the state’s job safety and health laws and regulations. The law requires that this poster be displayed. (Failure to do so could result in a penalty of up to $7,000.)

WHAT AN EMPLOYER MUST DO: All employers must provide work and workplaces that are safe and healthful. In other words, as an employer, you must follow state laws governing job safety and health. Failure to do so can result in a threat to the life or health of workers, and substantial monetary penalties.

You must display this poster so everyone on the job can be aware of basic rights and responsibilities.

You must have a written and effective injury and illness prevention program for your employees to follow.

You must be aware of hazards your employees face on the job and keep records showing that each employee has been trained in the hazards unique to each job assignment.

You must correct any hazardous condition that you know may result in serious injury to employees. Failure to do so could result in criminal charges, monetary penalties, and even incarceration.

You must notify the nearest Cal/OSHA office of any serious injury or fatality occurring on the job. Be sure to do this immediately after calling for emergency help to assist the injured employee. Failure to report a serious injury or fatality within 8 hours can result in a minimum civil penalty of $5,000.

WHAT AN EMPLOYER MUST NEVER DO: Never permit an employee to do work that violates Cal/OSHA law.

Never permit an employee to be exposed to harmful substances without providing adequate protection.

Never allow an untrained employee to perform hazardous work.

EMPLOYEES HAVE CERTAIN RIGHTS IN WORKPLACE SAFETY & HEALTH: As an employee, you (or someone acting for you) have the right to file a complaint and request an inspection of your workplace if conditions there are unsafe or unhealthful. This is done by contacting the local district office of the Division of Occupational Safety and Health (see list of offices). Your name is not revealed by Cal/OSHA, unless you request otherwise.

You also have the right to bring unsafe or unhealthful conditions to the attention of the Cal/OSHA investigator making an inspection of your workplace. Upon request, Cal/OSHA will withhold the names of employees who submit or make statements during an inspection or investigation.

Any employee has the right to refuse to perform work that would violate a Cal/OSHA or any occupational safety or health standard or order where such violation would create a real and apparent hazard to the employee or other employees.

You may not be fired or punished in any way for filing a complaint about unsafe or unhealthful working conditions, or using any other right given to you by Cal/OSHA law.

If you feel that you have been fired or punished for exercising your rights, you may file a complaint about this type of discrimination by contacting the nearest office of the Department of Industrial Relations, Division of Labor Standards Enforcement (State Labor Commissioner) or the San Francisco office of the U.S. Department of Labor, Occupational Safety and Health Administration. (Employees of state or local government agencies may only file these complaints with the State Labor Commissioner.) Consult your local telephone directory for the office nearest you.

EMPLOYEES ALSO HAVE RESPONSIBILITIES: To keep the workplace and your coworkers safe, you should tell your employer about any hazard that could result in an injury or illness to people on the job.

While working, you must always obey state job safety and health laws.

SPECIAL RULES APPLY IN WORK AROUND HAZARDOUS SUBSTANCES: Employers who use any substance listed as a hazardous substance in Section 339 of Title 8 of the California Code of Regulations, or subject to the Federal Hazard Communications Standard (29 CFR 1910.1200), must provide employees with information on the contents on Material Safety Data Sheets (MSDS), or equivalent information about the substance that trains employees to use the substance safely.

Employers shall make available on a timely and reasonable basis a Material Safety Data Sheet on each hazardous substance in the workplace upon request of an employee, an employee collective bargaining representative, or an employee’s physician.

Employees have the right to see and copy their medical records and records of exposure to potentially toxic materials or harmful physical agents.

Employers must allow access by employees or their representatives to accurate records of employee exposures to potentially toxic materials or harmful physical agents, and notify employees of any exposures in concentration or levels exceeding the exposure limits allowed by Cal/OSHA standards.

Any employee has the right to observe monitoring or measuring of employee exposure to hazards conducted pursuant to Cal/OSHA regulations.

WHEN CAL/OSHA COMES TO THE WORKPLACE: A trained Cal/OSHA safety engineer or industrial hygienist may periodically visit the workplace to make sure your company is obeying job safety and health laws.

An inspection will also be conducted when a legitimate complaint is filed by an employee with the Division of Occupational Safety and Health.

Cal/OSHA also goes to the workplace to investigate a serious injury or fatality.

When an inspection begins, the Cal/OSHA investigator will show official identification from the Division of Occupational Safety and Health.

The employer, or someone the employer chooses, will be given an opportunity to accompany the investigator during the inspection. A representative of the employees will be given the same opportunity. Where there is no authorized employee representative, the investigator will talk to a reasonable number of employees about safety and health conditions at the workplace.

VIOLATIONS, CITATIONS & PENALTIES: If the investigation shows that the employer has violated a safety and health standard or order, then the Division of Occupational Safety and Health issues a citation. Each citation specifies a date by which the violation must be abated.

A notice, which carries no monetary penalty, may be issued in lieu of a citation for certain non-serious violations.

Citations carry penalties of up to $7,000 for each regulatory or general violation and up to $25,000 for each serious violation. Additional penalties of up to $7,000 per day for regulatory or general violations and up to $15,000 per day for serious violations may be proposed for each failure to correct a violation by the abatement date shown on the citation. A penalty of not less than $5,000 nor more than $70,000 may be assessed an employer who willfully violates any occupational safety and health standard or order. The maximum civil penalty that can be assessed for each repeat violation is $70,000. A willful violation that causes death or permanent impairment of the body of any employee results, upon conviction, in a fine of not more than $250,000, or imprisonment up to three years, or both and if the employer is a corporation or limited liability company the fine may not exceed $1.5 million.

The law provides that employers may appeal citations within 15 working days of receipt to the Occupational Safety and Health Appeals Board.

An employer who receives a citation, Order to Take Special Action, or Special Order must post it prominently at or near the place of the violation for three working days, or until the unsafe condition is corrected, whichever is longer, to warn employees of danger that may exist there. Any employee may protest the time allowed for correction of the violation to the Division of Occupational Safety and Health or the Occupational Safety and Health Appeals Board.

INDIVIDUALS WITH DISABILITIES Section 503 of the Rehabilitation Act of 1973, as amended, protects qualified individuals from discrimination on the basis of disability in hiring, promotion, discharge, pay, fringe benefits, job training, classification, referral, and other aspects of employment. Disability discrimination includes not making reasonable accommodation to the known physical or mental limitations of an otherwise qualified individual with a disability who is an applicant or employee, barring undue hardship. Section 503 also requires that Federal contractors take affirmative action to employ and advance in employment qualified individuals with disabilities at all levels of employment, including the executive level.

DISABLED, RECENTLY SEPARATED, OTHER PROTECTED, AND ARMED FORCES SERVICE MEDAL VETERANS The Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as amended, 38 U.S.C. 4212, prohibits job discrimination and requires affirmative action to employ and

OFFICES OF THE DIVISION OF OCCUPATIONAL SAFETY AND HEALTH HEADQUARTERS: 1515 Clay Street, Ste. 1901, Oakland, CA 94612 — Telephone (510) 286-7000 CAL/OSHA CONSULTATION SERVICE (925) 602-6517 (650) 573-3812 (510) 794-2521 (559) 445-5302 (213) 576-7451 (209) 545-7310 (510) 622-2916 (626) 256-7913 (916) 263-2800 (909) 383-4321 (619) 767-2280 (415) 972-8670 (714) 558-4451 (707) 576-2388 (310) 516-3734 (818) 901-5403 (805) 654-4581 (626) 472-0046 (916) 263-2803 (707) 576-2419 (714) 558-4300 (626) 472-0046

Headquarters: 2000 E. McFadden Ave. #214, Santa Ana, CA 92705 Area & Field Offices: • Fresno/Central Valley 1901 North Gateway Blvd.

Suite 102, Fresno 93727 • Oakland/ 1515 Clay St.-Suite 1103 Bay Area Oakland 94612 • Sacramento/ 2424 Arden Way-Suite 410 Northern CA Sacramento 95825 • San Bernardino 464 West Fourth St.Suite 339 San Bernardino 92401 • San Diego/ 7575 Metropolitan Dr.Imperial Counties Suite 204 San Diego 92108 • San Fernando Valley 6150 Van Nuys Blvd.Suite 307 Van Nuys 91401 • Santa Fe Springs/ 10350 Heritage Park Dr.Los Angeles/ Suite 201 Orange County Santa Fe Springs 90670 Regional Office Sacramento

2424 Arden Way-Suite 485, Sacramento 95825

(714) 558-4411 (559) 454-1295 (510) 622-2891 (916) 263-0704 (909) 383-4567 (619) 767-2060 (818) 901-5754 (562) 944-9366

(916) 263-5750

Tobacco smoking is allowed in designated break areas that have been ventilated as required by law and are considered non-work areas. Separate Non-Smoking break rooms are available to employees who do not smoke.

These smoking areas are designated with entrance signs that state “Smoking Allowed”.

WHAT TO DO IF YOU BELIEVE DISCRIMINATION HAS OCCURRED There are strict time limits for filing charges of employment discrimination. To preserve the ability of EEOC to act on your behalf and to protect your right to file a private lawsuit, should you ultimately need to, you should contact EEOC promptly when discrimination is suspected: The U.S. Equal Employment Opportunity Commission (EEOC), 1-800-669-4000 (toll-free) or 1-800-669-6820 (toll-free TTY number for individuals with hearing impairments). EEOC field office information is available at www.eeoc.gov or in most telephone directories in the U.S. Government or Federal Government section.

Additional information about EEOC, including information about charge filing, is available at www.eeoc.gov.

To receive a copy of California Labor Code Section 6404.5, please contact your designated employee representative or the local county health department.

Tobacco smoke contains chemicals known to the State to cause cancer.

STATE OF CALIFORNIA - DEPARTMENT OF INDUSTRIAL RELATIONS Division of Workers’ Compensation

Notice to Employees—Injuries Caused By Work

You may be entitled to workers' compensation benefits if you are injured or become ill because of your job. Workers' compensation covers most work-related physical or mental injuries and illnesses. An injury or illness can be caused by one event (such as hurting your back in a fall) or by repeated exposures (such as hurting your wrist from doing the same motion over and over).

Benefits. Workers' compensation benefits include: •

advance in employment disabled veterans, recently separated veterans (within three years of discharge or release from active duty), other protected veterans (veterans who served during a war or in a campaign or expedition for which a campaign badge has been authorized), and Armed Forces service medal veterans (veterans who, while on active duty, participated in a U.S. military operation for which an Armed Forces service medal was awarded).

RETALIATION Retaliation is prohibited against a person who files a complaint of discrimination, participates in an OFCCP proceeding, or otherwise opposes discrimination under these Federal laws.

Any person who believes a contractor has violated its nondiscrimination or affirmative action obligations under the authorities above should contact immediately: The Office of Federal Contract Compliance Programs (OFCCP), U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210, 1-800-397-6251 (toll-free) or (202) 693-1337 (TTY). OFCCP may also be contacted by e-mail at OFCCP-Public@dol.gov, or by calling an OFCCP regional or district office, listed in most telephone directories under U.S. Government, Department of Labor.

INDIVIDUALS WITH DISABILITIES Section 504 of the Rehabilitation Act of 1973, as amended, prohibits employment discrimination on the basis of disability in any program or activity which receives Federal financial assistance. Discrimination is prohibited in all aspects of employment against persons with disabilities who, with or without reasonable accommodation, can perform the essential functions of the job.

If you believe you have been discriminated against in a program of any institution which receives Federal financial assistance, you should immediately contact the Federal agency providing such assistance.

EEOC-P/E-1 (Revised 11/09)

“Smoking Allowed”—This facility employs less than 5 employees who have all consented to smoking and has complied with all provisions of California Labor Code Section 6404.5 sec. (14).

❑

Smoking is prohibited in all restrooms, elevators or first aid stations or similar facilities for the treatment of employees. No employee as part of his or her work responsibilities shall be required to work in an area where smoking is permitted.

RETALIATION All of these Federal laws prohibit covered entities from retaliating against a person who files a charge of discrimination, participates in a discrimination proceeding, or otherwise opposes an unlawful employment practice.

Programs or Activities Receiving Federal Financial Assistance RACE, COLOR, NATIONAL ORIGIN, SEX In addition to the protections of Title VII of the Civil Rights Act of 1964, as amended, Title VI of the Civil Rights Act of 1964, as amended, prohibits discrimination on the basis of race, color or national origin in programs or activities receiving Federal financial assistance. Employment discrimination is covered by Title VI if the primary objective of the financial assistance is provision of employment, or where employment discrimination causes or may cause discrimination in providing services under such programs. Title IX of the Education Amendments of 1972 prohibits employment discrimination on the basis of sex in educational programs or activities which receive Federal financial assistance.

• • • •

Medical Care: Doctor visits, hospital services, physical therapy, lab tests, x-rays, and medicines that are reasonably necessary to treat your injury. You should never see a bill. There is a limit on some medical services.

Temporary Disability (TD) Benefits: Payments if you lose wages while recovering. For most injuries, TD benefits may not be paid for more than 104 weeks within five years from the date of injury.

Permanent Disability (PD) Benefits: Payments if your injury causes a permanent disability.

Supplemental Job Displacement Benefit: A nontransferable voucher payable to a state approved school if your injury arises on or after 1/1/04 and results in a permanent disability that prevents you from returning to work within 60 days after TD ends, and your employer does not offer you modified or alternative work.

Death Benefits: Paid to dependents of a worker who dies from a work-related injury or illness.

Naming Your Own Physician Before Injury or Illness (Predesignation). You may be able to choose the doctor who will treat you for a job injury or illness. If eligible, you must tell your employer, in writing, the name and address of your personal physician before you are injured and your physician must agree to treat you for your work injury. For instructions, see the written information about workers' compensation that your employer is now required to give to new employees.

If You Get Hurt:

1. Get Medical Care. If you need emergency care, call 911 for help immediately from the hospital, ambulance, fire department or police department. If you need first aid, contact your employer.

2. Report Your Injury. Report the injury immediately to your supervisor or to an employer representative. Don’t delay. There are time limits. If you wait too long, you may lose your right to benefits. Your employer is required to provide you a claim form with in one working day after learning about your injury. Within one working day after you file a claim form, your employer shall authorize the provision of all treatment, consistent with the applicable treating guidelines, for your alleged injury and shall be liable for up to ten thousand dollars ($10,000) in treatment until the claim is accepted or rejected.

3. See Your Primary Treating Physician (PTP). This is the doctor with overall responsibility for treating your injury or illness. If you predesignated by naming your personal physician or medical group before injury (see above), you may see him or her for treatment in certain circumstances. Otherwise, your employer has the right to select the physician who will treat your for the first 30 days. You may be able to switch to a doctor of your choice after 30 days. Different rules apply if your employer offers a Health Care Organization (HCO) or has a Medical Provider Network (MPN). You should receive information from your employer if you are covered by an HCO or a MPN. Contact your employer for more information.

4. Medical Provider Networks. Your employer may be using a MPN, which is a selected network of health care providers to provide treatment to workers injured on the job. If your employer is using a MPN, a MPN notice should be posted next to this poster to explain how to use the MPN. You can request a copy of this notice by calling the MPN number below. If you have predesignate a personal physician prior to your work injury, then you may receive treatment from your predesignated doctor. If you have not predesignated and your employer is using a MPN, you are free to choose an appropriate provider from the MPN list after the first medical visit directed by you employer. If you are treating with a non-MPN doctor for an existing injury, you may be required to change to a doctor within the MPN. For more information, see the MPN Contact information below: Current MPN’s toll free number: ____________________________________________ MPN website: __________________________________________________ MPN Effective Date: ____________________________ Current MPN’s Address:

__________________________________________________________________

Discrimination: It is illegal for your employer to punish or fire you for having a work injury or illness, for filing a claim, or testifying in another person's workers' compensation case. If proven, you may receive lost wages, job reinstatement, increased benefits, and costs and expenses up to limits set by the state.

Questions? Learn more about workers' compensation by reading the information that your employer is required to give you at time of hire. If you have questions, see your employer or the claims administrator (who handles workers' compensation claims for your employer): Claims Administrator ________________________________________________________ Phone ____________________________________________________________________________________________ Workers’ compensation insurer _____________________________ (Enter “self-insured” if appropriate)

THE AMERICAN POLICY IS OUR POLICY. Anti-Discrimination Notice. It is illegal to discriminate against any individual (other than an alien not authorized to work in the U.S.) in hiring, discharging, or recruiting or referring for a fee because of that individual’s national origin or citizenship status. It is illegal to discriminate against work eligible individuals. Employers CANNOT specify which document(s) they will accept from an employee. The refusal to hire an individual because of a future expiration date may also constitute illegal discrimination.

If you think discrimination has occurred, call the Office of Special Counsel for Immigration Related Unfair Employment Practices at 1-800-255-7688.

Policy Expiration Date _____________________________

If the workers’ compensation policy has expired, contact a Labor Commissioner at the Division of Labor Standards Enforcement (DLSE).

You can get free information from a State Division of Workers' Compensation Information & Assistance Officer. The nearest Information & Assistance Officer can be found at location: ________________________ or by calling toll-free (800) 736-7401. Learn more information about DWC and DLSE online: www.dwc.ca.gov or www.dir.ca.gov/dlse.

False claims and false denials. Any person who makes or causes to be made any knowingly false or fraudulent material statement or material representation for the purpose of obtaining or denying workers' compensation benefits or payments is guilty of a felony and may be fined and imprisoned.

Your employer may not be liable for the payment of workers’ compensation benefits for any injury that arises from your voluntary participation in any off-duty, recreational, social, or athletic activity that is not part of your work-related duties.

DWC 7 (6/10)

EMPLOYEE RIGHTS

UNDER THE FAIR LABOR STANDARDS ACT

Please Post Next to Your IWC Industry or Occupation Order — OFFICIAL NOTICE

California Minimum Wage

Amends General Minimum Wage Order and IWC Industry and Occupation Orders

THE UNITED STATES DEPARTMENT OF LABOR WAGE AND HOUR DIVISION

$7.50

$7.25

PER HOUR

per hour beginning January 1, 2007 To employers and representatives of persons working in industries and occupations in the State of California:

BEGINNING JULY 24, 2009

OVERTIME PAY CHILD LABOR

TIP CREDIT ENFORCEMENT

ADDITIONAL INFORMATION

At least 1 1/2 times your regular rate of pay for all hours worked over 40 in a workweek.

An employee must be at least 16 years old to work in most non-farm jobs and at least 18 to work in non-farm jobs declared hazardous by the Secretary of Labor.

Youths 14 and 15 years old may work outside school hours in various non-manufacturing, non-mining, non-hazardous jobs under the following conditions: No more than • 3 hours on a school day or 18 hours in a school week; • 8 hours on a non-school day or 40 hours in a non-school week.

Also, work may not begin before 7 a.m. or end after 7 p.m., except from June 1 through Labor Day, when evening hours are extended to 9 p.m. Different rules apply in agricultural employment.

Employers of “tipped employees” must pay a cash wage of at least $2.13 per hour if they claim a tip credit against their minimum wage obligation. If an employee's tips combined with the employer's cash wage of at least $2.13 per hour do not equal the minimum hourly wage, the employer must make up the difference.

Certain other conditions must also be met.

The Department of Labor may recover back wages either administratively or through court action, for the employees that have been underpaid in violation of the law. Violations may result in civil or criminal action.

Employers may be assessed civil money penalties of up to $1,100 for each willful or repeated violation of the minimum wage or overtime pay provisions of the law and up to $11,000 for each employee who is the subject of a violation of the Act’s child labor provisions. In addition, a civil money penalty of up to $50,000 may be assessed for each child labor violation that causes the death or serious injury of any minor employee, and such assessments may be doubled, up to $100,000, when the violations are determined to be willful or repeated. The law also prohibits discriminating against or discharging workers who file a complaint or participate in any proceeding under the Act.

• Certain occupations and establishments are exempt from the minimum wage and/or overtime pay provisions.

• Special provisions apply to workers in American Samoa and the Commonwealth of the Northern Mariana Islands.

• Some state laws provide greater employee protections; employers must comply with both.

• The law requires employers to display this poster where employees can readily see it.

• Employees under 20 years of age may be paid $4.25 per hour during their first 90 consecutive calendar days of employment with an employer.

• Certain full-time students, student learners, apprentices, and workers with disabilities may be paid less than the minimum wage under special certificates issued by the Department of Labor.

For additional information:

1-866-4-USWAGE WHD WWW.WAGEHOUR.DOL.GOV

Enforcement of Cal/OSHA job safety and health standards is carried out by the Division of Occupational Safety and Health, under the California Department of Industrial Relations, which has primary responsibility for administering the Cal/OSHA program. Safety and health standards are promulgated by the Occupational Safety and Health Standards Board. Anyone desiring to register a complaint alleging inadequacy in the administration of the California Occupational Safety and Health Plan may do so by contacting the San Francisco Regional Office of the Occupational Safety FEBRUARY 2010 and Health Administration (OSHA), U.S. Department of Labor (Tel: 415-975-4310). OSHA monitors the operation of state plans to assure that continued approval is merited.

★

(1-866-487-9243)

MW-2007

TTY 1-877-889-5627

U.S. Department of Labor | Wage and Hour Division

U.S. Wage and Hour Division

WHD 2007) WHD Publication Publication 1088 1088 (Revised (Revised June July 2009)

$8.00

Minimum Wage - Every employer shall pay to each employee wages not less than the following:

FEDERAL MINIMUM WAGE

Call the FREE Worker Information Hotline - 1-866-924-9757

Concord 1465 Enea Circle-Bldg. E, Suite 900, Concord 94520 Foster City 1065 East Hillsdale Blvd.-Suite 110, Foster City 94404 Fremont/ San Jose 39141 Civic Center Dr.-Suite 310, Fremont 94538 Fresno 2550 Mariposa St.-Room 4000, Fresno 93721 Los Angeles 320 West Fourth St.-Room 850, Los Angeles 90013 Modesto 4206 Technology Dr–Suite 3, Modesto 95356 Oakland 1515 Clay St.-Suite 1301, Oakland 94612 Monrovia/ Pico Rivera 750 Royal Oaks Dr.-Suite 104, Monrovia 91016 Sacramento 2424 Arden Way-Suite 165, Sacramento 95825 San Bernardino 464 West Fourth St.-Suite 332, San Bernardino 92401 San Diego 7575 Metropolitan Dr.-Suite 207, San Diego 92108 San Francisco 121 Spear Street, Ste 430, San Francisco 94105 Santa Ana 2000 E. McFadden Ave, Ste. 122, Santa Ana 92705 Santa Rosa 1221 Farmers Lane-Suite 300, Santa Rosa 95405 Torrance 680 Knox St.-Suite 100, Torrance 90502 Van Nuys 6150 Van Nuys Blvd.-Suite 405, Van Nuys 91401 Ventura 1655 Mesa Verde Ave.-Room 150, Ventura 93003 West Covina 1906 West Garvey Ave. S.-Suite 200, West Covina 91790 Regional Offices Sacramento 2424 Arden Way-Suite 125, Sacramento 95825 Santa Rosa 1221 Farmers Lane-Suite E, Santa Rosa 95405 Santa Ana 2000 E. McFadden Ave, Ste 119, Santa Ana 92705 West Covina 1906 West Garvey Ave. S.-Suite 200, West Covina 91790

Discrimination and Harassment in Employment are Prohibited by Law

Employers Holding Federal Contracts or Subcontracts

RACE, COLOR, RELIGION, SEX, NATIONAL ORIGIN Executive Order 11246, as amended, prohibits job discrimination on the basis of race, color, religion, sex or national origin, and requires affirmative action to ensure equality of opportunity in all aspects of employment.

Smoking of tobacco products is prohibited in all areas of this facility.

❑

Applicants to and employees of companies with a Federal government contract or subcontract are protected under Federal law from discrimination on the following bases:

HELP IS AVAILABLE: To learn more about job safety rules, you may contact the Cal/OSHA Consultation Service for free information, required forms and publications. You can also contact a local district office of the Division of Occupational Safety and Health. If you prefer, you may retain a competent private consultant, or ask your workers’ compensation insurance carrier for guidance in obtaining information.

District Offices

GENETICS Title II of the Genetic Information Nondiscrimination Act of 2008 protects applicants and employees from discrimination based on genetic information in hiring, promotion, discharge, pay, fringe benefits, job training, classification, referral, and other aspects of employment. GINA also restricts employers’ acquisition of genetic information and strictly limits disclosure of genetic information. Genetic information includes information about genetic tests of applicants, employees, or their family members; the manifestation of diseases or disorders in family members (family medical history); and requests for or receipt of genetic services by applicants, employees, or their family members.

Tobacco Smoking

This Facility complies with the tobacco smoking provisions of California Labor Code Section 6404.5. We have adopted the following smoking policy as required by law. ❑

Private Employers, State and Local Governments, Educational Institutions, Employment Agencies and Labor Organizations

The Act permits polygraph (a kind of lie detector) tests to be administered in the private sector, subject to restrictions, to certain prospective employees of security service firms (armored car, alarm, and guard), and of pharmaceutical manufacturers, distributors and dispensers.

The Act also permits polygraph testing, subject to restrictions, of certain employees of private firms who are reasonably suspected of involvement in a workplace incident (theft, embezzlement, etc.) that resulted in economic loss to the employer.

TIME OFF TO VOTE

Department of Fair Employment and Housing

SUMMARY OF ACTIONS TAKE NOTICE that on September 12, 2006, the California Legislature enacted legislation signed by the Governor of California, raising the minimum wage for all industries. (AB 1835, Ch. 230, Stats of 2006, adding sections 1182.12 and 1182.13 to the California Labor Code.) Pursuant to its authority under Labor Code section 1182.13, the Department of Industrial Relations amends and republishes Sections 1, 2, 3, and 5 of the General Minimum Wage Order. MW-2001, Section 4, Separability, has not been changed. Consistent with this enactment, amendments are made to the minimum wage, and the meals and lodging credits sections of all of the IWC's industry and occupation orders.

This summary must be made available to employees in accordance with the IWC's wage orders. Copies of the full text of the amended wage orders may be obtained by ordering on-line at www.dir.ca.gov/WP.asp, or by contacting your local Division of Labor Standards Enforcement office.

1. APPLICABILITY The provisions of this Order shall not apply to outside salespersons and individuals who are the parent, spouse, or children of the employer previously contained in this Order and the IWC's industry and occupation orders. Exceptions and modifications provided by statute or in Section 1, Applicability, and in other sections of the IWC's industry and occupation orders may be used where any such provisions are enforceable and applicable to the employer.

2. MINIMUM WAGES Every employer shall pay to each employee wages not less than seven dollars and fifty cents ($7.50) per hour for all hours worked, effective January 1, 2007, and not less than eight dollars ($8.00) per hour for all hours worked, effective January 1, 2008.

3. MEALS AND LODGING Meals or lodging may not be credited against the minimum wage without a voluntary written agreement between the employer and the employee. When credit for meals or lodging is used to meet part of the employer’s minimum wage obligation, the amounts so credited may not be more than the following:

per hour beginning January 1, 2008

Effective January 1, 2007 LODGING Room occupied alone . . . . . . . . . . . . . . . $35.27 per week Room shared . . . . . . . . . . . . . . . . . . . . . . $29.11 per week Apartment—two-thirds (2/3) of the ordinary rental value, and in no event more than: . . . . . . . . . . . . . . . . . . $423.51 per month Where a couple are both employed by the employer, two-thirds (2/3) of the ordinary rental value, and in no event more than: . . . . . . . . . . . . . . . . . . . $626.49 per month MEALS Breakfast . . . . . . . . . . . . . . . . . . . . . . . . . $2.72 Lunch . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3.72 Dinner . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.00

Effective January 1, 2008 $37.63 per week $31.06 per week $451.89 per month

$668.46 per month $2.90 $3.97 $5.34

4. SEPARABILITY If the application of any provision of this Order, or any section, subsection, subdivision, sentence, clause, phrase, word or portion of this Order should be held invalid, unconstitutional, unauthorized, or prohibited by statute, the remaining provisions thereof shall not be affected thereby, but shall continue to be given full force and effect as if the part so held invalid or unconstitutional had not been included herein.

5. AMENDED PROVISIONS This Order amends the minimum wage and meals and lodging credits in MW-2001, as well as in the IWC's industry and occupation orders. (See Orders 1-15, Secs. 4 and 10; and Order 16, Secs. 4 and 9.) This Order makes no other changes to the IWC's industry and occupation orders.

These Amendments to the Wage Orders shall be in effect as of January 1, 2007.

Questions about enforcement should be directed to the Division of Labor Standards Enforcement. Consult the white pages of your telephone directory under CALIFORNIA, State of, Industrial Relations for the address and telephone number of the office nearest you. The Division has offices in the following cities: Bakersfield, El Centro, Eureka, Fresno, Long Beach, Los Angeles, Oakland, Redding, Sacramento, Salinas, San Bernardino, San Diego, San Francisco, San Jose, Santa Ana, Santa Barbara, Santa Rosa, Stockton, and Van Nuys.

PAYDAY NOTICE

CA

STATE AND FEDERAL LABOR LAW POSTER

State of California • Department of Industrial Relations • Division of Labor Standards Enforcement

Regular Paydays for Employees of:

Do Not Remove This Posting (firm name)

shall be as follows:

❏ Weekly ❏ Bi-weekly ❏ Monthly ❏ Other THIS IS IN ACCORDANCE WITH CALIFORNIA LABOR CODE

SECTIONS

TM

_______________

204, 204A, 204B, 205 AND 205.5

OF THE

By __________________________________________________________________ Title _________________________________________________________________ Location ________________________________ Day/Time ____________________ DLSE 8 (REV. 06-02)

PLEASE POST

This Space Saver 1 Combined Labor Law Poster must be posted in an area frequented by applicants and employees during the normal course of the workday.

This poster is guaranteed to be accurate and up to date as of the date sold.

Distributed by Personnel Concepts

Please call your distributor at least once a year to ensure you have the latest legally required poster and are in full compliance with State and Federal labor law posting requirements including industry specific OSHA notices that may be required.

To reorder, call 800-333-3795 or www.personnelconcepts.com

Space Saver 1 ITEM# Y887404-U-Y887551-L CA22763H-0910 This poster is registered with the Library of Congress and may not be duplicated. ©1991-2010 AIO Acquisition, Inc. All rights reserved.

Occupational Safety and Health benefits and obligations under USERRA. (OSH) Act—Requires employers to com- Employers may provide the required noply with occupational safety and health standards issued by the Occupational Safety and Health Administration (OSHA) and to provide employees with a workplace that is free from recognized hazards that are causing or likely to cause death or serious physical harm. The OSH Act is administered and enforced by OSHA.

Employee Polygraph Protection Act (EPPA)—Prohibits most private employ-

ers from using lie detector tests, either for pre-employment screening or during the course of employment. The EPPA is administered and enforced by the Wage and Hour Division.

The Uniformed Services Employment a n d Reem p loy m ent Rights Act (USERRA) —Requires employers to

provide to employees notice of their rights,

tice by distributing it or posting it where employee notices are customarily placed.

USERRA is administered by the Veterans Employment and Training Service (VETS).

NAHFA CAN HELP

You can visit the dol.gov website and download free versions of the required posters and visit your state department of labor site for its posters. You will then have to remember to check for updates and be aware of any changes made to any posters.

All posters also have to be laminated so they cannot be altered once displayed.

Lisa Casinger is NAHFA’s government relations liaison. You can reach her at lcasinger@nahfa.org or (800) 422-3778 x305.

Members of the North American Home Furnishings Association can take advantage of a discounted all-in-one poster that includes state and federal information, which comes with a 12-month subscription for automatic updates. www.retailerNOWmag.com

APRIL | 2014

81

THANK YOU

Our Association gratefully recognizes all of our supporters whose dedication and committment has strengthened our industry.

ACA/Advertising Concepts of America AICO/Amini Innovation Corp.

American Express American Leather Ashley Furniture Industries, Inc. Aspenhome Associated Volume Buyers Becker Designed, Inc. Bernards, Inc. Best Buy for Business Best Home Furnishings Braxton Culler, Inc. Cargo Consolidation Services Century Furniture Coaster Company of America Cory Home Delivery Service DĂŠcor-Rest Furniture Ltd. Diakon Logistics DSI Companies Ekornes Elements International Elite Leather Emerald Home Furnishings Fairmont Designs Flexsteel Furniture of America Furniture Wizard FurnitureDealer.net GE Capital Great American Furniture Services Guardian Products Guardsman/The Valspar Corp.

Harden Furniture Company High Point Market Authority Holland House Homelegance USA HFB Magazine Horich Hector Lebow Advertising Consulting Services, Inc. Innovative Delivery Systems Jofran Sales, Inc. Julius M. Feinblum Real Estate, Inc. Kincaid King Hickory Furniture Co Lane Home Furnishings Lazar Industries Lea Leggett & Platt Liberty Furniture Lifestyle Enterprises Linon Home DĂŠcor Products Magnussen Home Mail America Massood Logistics Med-Lift Mobility MicroD, Inc. Mohawk Finishing Products, Inc. Myriad Software Natuzzi Americas, Inc. NetSertive Nourison Industries Okinus Credit Solutions Pacific Furniture Dealers

Phoenix A.M.D. International, Inc. PROFITsystems Protect-A-Bed Restonic Mattress Corp.

Sandberg Furniture SAP Retail Serta Mattress Companies Simmons Shock Watch Sleep-Ezz Source International, Inc./4 Sales Finance Sphinx by Oriental Weavers Standard Furniture Steve Silver Co. STORIS Surya The TV Shield The Uttermost Company Tidewater Finance Company Trendwood, Inc. Tropic Survival Advertising & Marketing TruckSkin, LLC Twin Star/Classic Flame United Furniture Industries Valassis, Inc. Vaughan Furniture Co. Versatile Systems Wahlquist Management Corporation World Market Center Zenith Global

To become an industry partner contact: North American Home Furnishings Association 800.422.3778 or email: cwilliams@nahfa.org

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the sofa ly used t's We on l- Wha erbow ht g for Sup u o th deal I the big s y a 0d I had 9

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ke ry suc

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Got a Bad Review Online? Here’s What to Do.

G

o back a couple years and you would find most people found small businesses by opening up a phone book.

Even more so, Ms. Jones would get her shopping referral from word of mouth. While referrals are still a big deal, today those referrals come from an online environment in the form of reviews.

Thanks to online review sites and social media, these reviews are accessible to a large number of consumers. Those reviews, just like word-of-mouth referrals, carry a lot of influence online and offline.

But more importantly, the response of your business is the one thing that will convey the most influence to Ms. Jones.

For many business owners, the common reaction to bad online reviews is to either ignore or protect the business. Both actions are wrong. Every review you get, both positive and negative, needs to be responded to productively. Keep away from the quick-tempered comments back to Ms. Jones. Remember, dissatisfied people speak a whole lot louder and a whole lot more than people who are happy.

If the complaint is something that can be fixed by giving a refund or a discounted rate (I know we hate those words), do it! If it’s a case where the customer is truly wrong, explain everything in detail that you did to correct the situation. However, make sure you recognize the unhappiness and express some sort of understanding over the complaint. You know the saying “think before you speak”? When responding to reviews, it’s best to always “think before you type.”

Your quick and timely response to whatever the person said is going to have more of an impact than the positive review.

THERE ARE SOME SIMPLE WAYS TO MONITOR YOUR ONLINE REVIEWS. Google Alerts Simply enter a search query you wish to monitor (your business name, furniture, etc). You can pick the result type, how often you get alerted, how many results you wish to receive and where you want the alert to be delivered (email, for example). Visit www. google.com/alerts for more information!

Hyper Alerts Hyper Alerts is an easy-to-use email notification service for Facebook and Twitter. Subscribe to as many Facebook pages, Twitter accounts and search phrases as you like. Choose to get alerts within minutes, or a digest every hour, day, week or month. Visit www.hyperalerts.no.

Online reviews are all about damage control and making sure the review doesn’t spread further. With a consistent response strategy, you can turn a bad online review into a positive outlook for your business.

Quick-Fire Marketing is brought to you by R&A Marketing. Armed with more than 25 years of furniture retail marketing experience as a full-service traditional and digital marketing company, R&A is the industry’s premier agency for retailers in the home furnishings and appliances/electronics industries. Visit us on the web at www.ramarketing.com or email us at info@ramarketing.com.

www.retailerNOWmag.com

APRIL | 2014

83

The Scoop

the scoop What’s going on with our retailers across the country

vv Dallas Market Center Wins ASID Designers’ Choice Award

vv NAHFA Member Badcock Home Furniture Awards Three Customers

Three customers from Tennessee and the Carolinas were awarded The Dallas Market Center celebrated its second American Society prizes as winners in Badcock Home Furniture’s “Cheer and Steer” of Interior Designers (ASID) Designer’s Choice Award on January sweepstakes. The contest was a way to reward frequent loyal cus- 23 at Park Place Volvo in Dallas. The Market Center took home tomers shopping both online and in-store and ran from August the prize for Best Business Services/Design Center. ASID board members determined the winners.

27 to December 2.

The grand prize winner was Christopher Stacy. He won a 2013 Ford Mustang for his continued patronage of the Concord, North Carolina, store.

ASID is the leading interior designer professional organization and works to advance the profession with community outreach, education and advocacy. Group members range from educators and students to designers and industry representatives.

Jessica Smith took home first prize, which was a trip see the Super Bowl and visit New York City. Smith shops in the Greer, South Carolina, store.

vv WithIt Hosts 2014 Professional Conference in Atlanta

The second place prize went to April Smith, who received a $1,000 gift card to the store. She is a frequent customer at the store in Murfreesboro, Tennessee. Congratulations to the winners!

Women in the Home Industries Today (WithIt) has announced the focus and location for its 2014 Professional Conference. The event will be held August 11-13 in Atlanta at the Atlanta Marriott

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Buckhead Hotel & Conference Center. A two-day agenda will focus on the topic “The Art and Science of Leadership.”

“Our program will help attendees identify and cultivate leadership attributes that are more of an art,” said Carol Gregg, 2014 Professional Conference Chair and president of Red Egg, “like building rapport, influencing others and learning to listen to your gut—as well as those leadership attributes that are more of a science, such as learning effective techniques for networking, managing time and priorities, and negotiating effectively.”

Registration is $300 for WithIt members and $425 for nonmembers. The student rate is $150. The hotel is offering a discounted group rate of $159 a night (single or double). For more information, registration and a link to the hotel, go to the WithIt website, www.withit.org.

vv NAHFA Member Baer’s Furniture Received Spirit of Life Award Association member store Baer’s Furniture and Alan Cole of Hooker Furniture have been announced as winners of the City of Hope Spirit of Life Award. Jerry Bear was a past president of the National Home Furnishings Association and is currently a member of the Retail Furniture Foundation.

The Spirit of Life award recognizes philanthropists and partners who have provided outstanding contributions to the industry. The award dinner will be held on Sunday, April 6, at the Grandover Resort in Greensboro, North Carolina. For more information, contact Brittany De La Torre at (800) 272-2310 or email furniture@coh.org.

vv Dan Thigpen Named New Vice President of Dreams LLC Ten-year bedding industry veteran Dan Thigpen is the new vice president at Dreams LLC. Thigpen’s career has taken him from Kingsdown’s western regional sales manager to King Koil Licensing Company’s vice president of training and sales technologies, followed by a move to Southerland, Inc., as the western regional vice president of sales.

“Dan will be a true asset to Dreams LLC as we finalize the HGTV HOME Sleep Collection and begin distribution throughout the United States and Canada,” said co-founder Scott Miller. “He has a proven track record of sales leadership, marketing, product development and sales technology designs, and we are thrilled to welcome him to the Dreams LLC family.”

Dreams LLC was formed by Miller and NAHFA member Art Van Elslander in 2013, in Rochester, Michigan. The company’s recent partnership with HGTV HOME will offer sleep products for adults, kids and pets throughout the U.S. and Canada.

Calendar

Calendar High Point Market April 5-10, 2014 High Point, North Carolina www.highpointmarket.org

KEM Furniture & Accessory Market May 21-22, 2014 Long Beach, California www.kemexpo.com

MARK YOUR CALENDAR FOR THESE INDUSTRY EVENTS

Dallas Total Home & Gift Market June 18-24, 2014 Dallas, Texas www.dallasmarketcenter.com

Atlanta Spring Gift, Home Furnishings & Holiday Market July 8-15, 2014 Atlanta, Georgia www.americasmart.com

NY NOW August 16-20, 2014 New York, New York www.nynow.com

KEM Furniture & Accessory Mart September 7-8, 2014 Kissimmee, Florida www.kemexpo.com

Las Vegas Market June 1-3, 2014

July 27-21, 2014

Phoenix, Arizona www.thehfnc.com

Las Vegas, Nevada www.lasvegasmarket.com

Showtime

Tupelo Furniture Market

June 1-4, 2014

August 14-17, 2014

High Point, North Carolina www.showtime-market.com

Tupelo, Mississippi www.tupelofurnituremarket.com

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TAP ON EVENTS DOWNLOAD THE FREE NAHFA APP TO YOUR MOBILE DEVICE FROM THE APP STORE OR GOOGLE PLAY

Ad Index

ArteriorsHome.com Jordan Vase

ADVERTISER

PHONE

WEBSITE

FACEBOOK 220elm

TWITTER @220elm

PAGE#

220 Elm

(336) 884-8220

220elm.com

Cargo Consolidation Services

(828) 459-3160

cargoconsolidation.com

68

Connie Post

(304) 736-7283

conniepost.com

Cresent Fine Furniture

(615) 975-4862

cresent.com

Cresent.furniture

Emerald Home Furnishings

(253) 922-1400

emeraldhome.com

pages/Emerald-Home-Furnishings/136299689779731

25

Furniture Wizard

(619) 869-7200

furniturewizard.com

FurnitureWizard

63

GE Capital

(800) 422-3778

nahfa.org

Horic Hector Lebow

(800) 878-8989

hhladv.com

Home Furnishings Networking Conf.

(800) 422-3778

theHFNC.com

HomeFurnishingsConference

@HFNC2014

11,12

Jaipur Rugs

(404) 351-2360

jaipurrugs.com

JaipurLifestyle

@jaipurlifestyle

Inside Back

Kincaid Furniture

(800) 438-8207

kincaidfurniture.com

KincaidFurnitureCompany

@KincaidFurn46

5

Lynch Sales

(616) 458-6662

lynchsales.com

LynchSales

@lynchsales

74

MicroD

(800) 964-3876

microdinc.com

MicroDinc

@microdinc

Back Cover

Myriad

(800) 676-4243

myriadsoftware.com

http://tinyurl.com/myriadFB

NellyMoser

(781) 645-1515

nellymoser.com

Nellymoser

@nellymoser

27

NewComLink

(855) 229-3713

NewComLink.com

NewComLink

@NewComLink

34

Next Generation-NOW

(800) 422-3778

ngnow.org

NextGenNow

@ngnow

59

North American HFA Sponsors

(800) 422-3778

retailerNOWmag.com

RetailerNOW

@retailerNOW

82

Northwest Furniture Xpress

(828) 475-6377

nwfxpress.com

NWFXpress

Nourison

(201) 368-6900

nourison.com

Nourison

@nourison

Okinus

(855) 330-3958

okinus.com

Omnia

(909) 393-4400

omnialeather.com

http://tinyurl.com/omnialeather

@OmniaLeather

58

PROFITsystems

(800) 888-5565

profitsystems.com

PROFITsystems

@PROFITsystems

9

R&A Marketing

(888) 225-0776

RAmarketing.com

RAMarketing

@RAMarketing

78

Serta

(888) 557-3782

serta.com

SertaMattress

@SertaMattresses

7

Simple Finance

(800) 742-1789

gosimplefin.com

Gosimplefinance

@gosimplefinance

84

STORIS

(888) 4-STORIS

storis.com

STORIS.solutions

@STORIS

29

Surya

(877) 275-7847

surya.com

SuryaSocial

@SuryaSocial

Inside Cover

Tidewater Financial

(800) 535-4087 x6553

tidewaterfinance.com

Truckskin

(877) 866-7546

truckskin.com

TruckSkin

@TruckSkin

38

TwinStar

(615) 975-4862

twinstarhome.com

TwinStarInternational

@TwinStarHome

73

39 28 @cresentfurn @furniturewiz

58

3 79

73

42 36 75

85

www.retailerNOWmag.com

APRIL | 2014

87

A quick dose of fun facts, random trivia and useful (or useless) bits of info

The Now List THE FAMILY BUSINESS

Only 1 in 30,000 furniture businesses stay open for more than 100 years.

Young family businesses and old family businesses outperform non-family businesses.

Women are the CEOs or presidents of 24 percent of family businesses.

Knight Furniture is 102!

Almost half of all family businesses have a full-time employee responsible for human resource management matters such as recruiting, performance appraisals and benefits administration.

78 YEARS

Families own a business for an average of 78 years.

PERCENTAGE OF SURVIVAL

More than 30 percent of all familyowned businesses survive into the second generation. Twelve percent will still be viable into the third generation, with 3 percent of all family businesses operating at the fourth-generation level and beyond.

When it comes to stock options, 37.4 percent of family businesses have buysell agreements or other arrangements defining who can own stock and how it is transferred.

ENGAGE IN PHILANTHROPHY Family businesses are less likely to lay off employees regardless of financial performance.

The mean age of a family business owner is 60.2 years.

Family business CEOs earn on average nearly 10 percent less than their non-family counterparts.

85 percent of family-owned firms that have identified a successor say it will be a family member.

95% of family businesses

Business owners rate their spouse as the most trusted advisor, followed by an accountant and a business peer.

The environment for innovation in family businesses improves when more generations of the owning family are actively involved in the business.

The largest family-owned business in the U.S. is Wal-Mart.

5.5 MILLION

There are 5.5 million family-owned businesses in the United States.

75 percent

of all new jobs are generated by family businesses.

60 percent

of all publicly held U.S. companies are family-controlled.

PREPARED TO RETIRE

By 2017, it is estimated that 40.3 percent of family business owners expect to retire. Less than half of those expecting to retire in five years have selected a successor.

A majority of family businesses believe that their ethical standards are more stringent than those of competing firms.

Sources: University of North Dakota, Concordia University, Boston College, Point Park University, Sustainable Braintree, randomhistory.com 88

APRIL | 2014

www.retailerNOWmag.com

JAIPUR INSIDE FOLD BACK 7.8125” x 10.875 will fold in and be the single

JAIPUR INSIDE BACK 8.1875” x 10.875

This will be the ba

ack spread

JAIPUR INSIDE FOLD BACK 7.8125” x 10.875

Discover us.

www.MicroDinc.com High Point Market Panel Discussion ADAPTING TO MAXIMIZE THE EVOLVING ECOMMERCE & DIGITAL LANDSCAPES Monday, April 7 @ 10 AM | Retailer Resource Center - Plaza Suites

MicroD will host an industry panel to discuss winning ways to navigate the ever-changing digital landscape. Marketing expenditures on home furnishings are significantly shifting to digital channels that focus on the consumer, their wants, needs, and expectations. Through a synergistic collaboration between manufacturers and retailers, panelists will outline their experiences in fulfilling these new consumer expectations. Join MicroD and our expert panel as we discuss the industry shift, understand challenges, highlight effective online strategies, and answer audience questions. #eCommerce #ConsumerTrends #MicroDinc #HPMkt

NEW Retailer Website Packages Tailored to Meet your Business Needs COMPREHENSIVE SERVICES TO ENHANCE AND GROW YOUR BUSINESS

Streamline and simplify the online marketing process with a variety of website options The MicroD website solution unifies retailers, brands, and consumers and redefines the furniture buying and selling process. With the creation of our new Retailer Website Packages, we are better able to help you maximize your online presence, equip you with a content-rich digital showroom, and adhere to your specific marketing budgets.  PLATINUM PACKAGE: This full-service solution includes all the standard website features, with the addition of extra service hours, more content pages, larger drapable catalog assortments, SKU and pricing modules, and expert assistance with SEO Jumpstart and management.  GOLD PACKAGE: The most popular package includes all the standard website features, with the additional features of optimizing your site with a mobile-friendly display, search engine optimization, social media tools, extra service hours, more content pages, and larger drapable catalog assortments.  SILVER PACKAGE: For retailers who are new to the online environment, but are interested in expanding their online presence, this package includes all the standard assortment of website utilities with essential website features. This package is the perfect option for retailers assessing their online marketing initiatives.

For more information email: Solutions@MicroDinc.com or call: 800-964-3876