JULY 2015
INSPIRATION+EDUCATION
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TAKE 5! Five takeaways you can implement this month:
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Avoid employee litigation. 24 Determine your store’s liquidity. 38 When to seek help. 20 Protect your customers’ data. 40 Increase sales with accent furniture. 32
10 WHAT’S INSIDE 2. 4. 14. 16. 28. 32. 42. 40. 45.
NAHFA President’s Letter Editor's Note Retail Voice Member Portrait: Julian Mutter NAHFA 2015 Conference Highlights Product Focus: Accent Furniture Next Gen—6 Answers with Corey Faust NAHFA Member Benefit Of Note
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DEPARTMENTS Cover Story 10. Can Rich Content Make You Rich and Content? Operations 20. Why Are You Flying Solo? Tap into the Expertise of Others 24. Secrets of a Plaintiffs’ Attorney: 14 Ways to Make Her Day 36. Are You Sending Your Mattress Shoppers to Your Competitor Without Realizing it? 38. How Liquid is Your Store?
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President Marty Cramer Cramer’s Home Furnishings
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Tell me and I forget, teach me and I may remember, involve me and I learn.
President-Elect Jeff Child RC Willey
—Benjamin Franklin
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It's Time to Share Your Wisdom
Vice President Steve Kidder Vermont Furniture Galleries Secretary/Treasurer Jim Fee Stoney Creek Furniture
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Chairman Rick Howard Sklar Furnishings Executive Staff Sharron Bradley Chief Executive Officer sbradley@NAHFA.org Mary Frye Executive Vice President mfrye@NAHFA.org Membership Staff Kaprice Crawford Membership Team Leader kcrawford@NAHFA.org Jordan Boyst jboyst@NAHFA.org Sherry Hansen shansen@NAHFA.org Michael Hill mhill@NAHFA.org Jana Sutherland jsutherland@NAHFA.org Dianne Therry dtherry@NAHFA.org Please call 800.422.3778 for membership inquires. Contact Us RetailerNOW 3910 Tinsley Dr., Suite 101 High Point, NC 27265
Marty Cramer NAHFA President
turn 60 in October and although I’ve been thinking about retirement since my early 30s, I’m starting to get serious about it. I don’t have children who want to take over our business, but we are very fortunate to have two long-term employees who want to carry on when I’m done. They are smart, enthusiastic and hard-working Millennials. I do worry that the only real exposure they have in the furniture business is from my perspective. Seeing things through only one set of glasses is not enough to prepare them for what’s coming next. That’s why I’m so excited about a new NAHFA mentoring program that will be up and running in the next few months. This spring, Jeff Child and his staff at RC Wiley volunteered to host a small group of Next Generation Now retailers at their headquarters in Salt Lake City. This was a test run of the program your association will offer. Anyone who has ever sold an end table is aware of the world-class operation Jeff and his staff operate. Imagine your son, daughter or associate having the opportunity to spend a few days immersed in that company and receiving such an exciting perspective of our business. The list of young people wanting to take advantage of this new program is growing quickly. We’re going to need your help. We’ll need your willingness to share what you know. We’ll also need retailers of all sizes to get involved for this program to work. I hope you’ll consider volunteering your time and knowledge to prepare the next generation. There are so many of you who have so much to offer. I know Jeff and his staff would agree that the experience of sharing in this way was as rewarding and fulfilling an experience for them as it was for the participants. Over the next few months, as this program begins to roll out, you will receive information on how to join the mentoring program and on how to get your future leader involved. You have spent years preparing for this; I hope you’ll decide to join us in preparing tomorrow’s industry leaders.
RetailerNOWmag.com 800.422.3778
Twitter.com/retailerNOW Facebook.com/retailerNOW Pinterest.com/retailerNOW
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RETAILERNOW STAFF
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Lisa Casinger Editorial Director lisac@retailernowmag.com Robert Bell Editor robert@retailernowmag.com
Michelle Nygaard Sales Executive michelle@retailernowmag.com Sydnee Seites Webmaster sseites@retailermag.com RETAIL ADVISORY TEAM Carol Bell Contents Interiors Tucson, Ariz. Travis Garrish Forma Furniture Fort Collins, Colo. Rick Howard Sklar Furnishings Boca Raton, Fla. Mike Luna Pedigo’s Furniture Livingston, Texas Andrew Tepperman Tepperman's Windsor, Ontario Contributors
Stephen D. Bruce, Jeff Giagnocavo, Karen Hornfeck, Sue Masaracchia-Roberts, David McMahon, Gary Morris, Tom Shay and Amanda Wall.
Subscription: $70/year
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Recharge Your Battery by Pulling the Plug
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Tim Timmons Creative Designer ttimmons@nahfa.org
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Spanish Proverb
eaven is closer than you think. Four hours by car to be exact— five if you stop for lunch. Nestled in the North Carolina mountains is a tiny cropping of moss-covered granite that juts out over scraggly pines and spruces. From there it’s a 30-foot plunge into Bear Lake’s impossibly blue waters. I highly recommend a flying leap. For a second, maybe two, you are free. No deadlines for Marcia and me, no solving for x for Riley and Kate. Just freedom. I’ve been thinking about my family’s slice of heaven the past few weeks. In a world where we always seem plugged into our work, time away is perfect for doing something as unproductive as the experience of living. Time off, I’m convinced, is medicine. That’s not just me, that’s countless studies showing that vacations are as important as watching your cholesterol Robert Bell or getting exercise. Vacations are the perfect tonic to burnout, the last stage of Editor, RetailerNOW chronic stress, epidemic in today’s plugged-in world where the line between business and home seems almost non-existent. The recharge from vacation also recharges your work. I’ve seen it first-hand myself, but a Portland State University study shows how vacations boost energy reserves so that you need less effort to get work done when you return. I know many of you are running your store 24/7, maybe even 25/8. I know it’s extremely difficult to pull yourself away. After all, you might think, how can my store possibly survive without me? But what if you came back after a week and your store was not only still standing, but still selling? And what if you come back after a week feeling refreshed and ready to tackle that project you’ve been putting off the past six months? Vacations help me see through the time-is-money hoax that keeps life on hold by placing your selfworth on always producing and never living. Summer is fading fast. Do yourself and your business a favor. Riley Bell, breaking away. Find your slice of heaven.
Lisa Tilley Creative Director lisa@retailernowmag.com
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: Address changes to: RetailerNOW, 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.
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How beautiful it is to do nothing, and then rest afterward.
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• © 2015 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.
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6/17/2015 10:47:02 AM
Las Vegas Market
BIGGER. BETTER. BEYOND EXPECTATIONS. Furniture | Home Décor | Gift
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AUGUST 2-6, 2015 REGISTER FOR MARKET TODAY! editor's note_JULYLC.indd 5
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RETAILER2.0
@RetailerNOW
facebook.com/RetailerNOW
pinterest.com/RetailerNOW
GOOD TO KNOW
Yelp vs. Google: Reviewing the Reviewers Retailers rely on referrals. It makes no difference whether those referrals come via word-of-mouth or the Internet. The two biggest local business review sites, Yelp and Google, both come with pros and cons. While Yelp has built credibility over time to establish itself as a local business and consumer review powerhouse, recent lawsuits and reports of questionable and aggressive behavior with local businesses over advertising are helping Google edge Yelp out of the top spot. Also, since its introduction last year, Google My Business is making it easier for local businesses to manage a significant chunk of their digital marketing through Google. Retailer2.0 offers pros and cons to each review platform to help you maximize your store’s potential.
Pros
Cons
The search engine giant’s local business review arm consists of a solution called Google My Business, which combines management of local business data & business social content into one easy-to-use dashboard.
• Ability to manage your listing, location, reviews and content from one place. • SEO power: Completing a Google My Business account will show your listing higher in qualified searches. • Access to Maps, Google+ and Hangouts. • Gmail & YouTube integration.
• Google+ content shows up differently for anonymous users or users who aren’t in your “circle” (people you have connected with). • Lack of audience on the platform means lack of audience for your Google+ content. • Not as easy to search and navigate for a local business as Yelp.
The business review website boasts 135 million unique monthly visitors and more than 71 million local reviews. You can also find events and lists of local businesses. Any business can set up a free Yelp for Business account.
• Top site for local business reviews and recommendations. • Listings provide SEO advantages for local searches (show up higher for qualified searches in your area). • High traffic. • Easy accessibility. You don’t need an account to search or read reviews.
• Legitimate business reviews might get “caught” in the Yelp review filter and fail to show on your listing. • Known for pressuring businesses to purchase ads on Yelp. • Accused by users of lying about review policies. • Terms of Service state it can suspend your account at any time.
COOL APPS Toolset.co (http://toolset.co)
Docady (http://docady.com)
A bunch of tools to easily manage and grow your Twitter account.
Keep tabs on every important piece of paperwork in your life.
Copy Follow
Docady automatically finds, organizes, and helps manage contracts, certificates, financial records and more. Best of all, you’ll have secure, easy access to all of your stored info.
Easily copy the followers of a specific user. This could be your competitors, a big brand or your best friend.
Keyword Follow
Search for users using a keyword or phrase. Filter users using the source (iPhone, Instagram, Facebook, etc.) of their last tweet. Perfect for any retailer wanting to target their niche.
Auto Favorite
Automatically favorite tweets based on a keyword or phrase. Generates new leads, followers, interactions and traffic 24/7 without lifting a finger. Web-based; free.
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Features include:
Integration—Docady automatically finds relevant documents by searching the services you already use. Smart Scan—Simply snap a photo of your documents and Docady will do the rest. Organization—Docady arranges files by family member, category, and document type. Security—Your data and information are secured with military-, government- and bank-grade encryption standards. Free; iOS. Web app and Android coming soon. Want to share cool apps? Drop us a line at Robert@RetailerNOWmag.com
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CONVERSATIONS
TOPSHELF
your philosophy on good Q.What’s customer service?
Your Store’s Brand isn’t Earned, it’s Created
April White Fox Den Ltd. Camden, S.C.
“It really takes an interest in your customer base to provide quality service and meet their needs. You can’t just turn it on and then turn it off. Good customer service has to always be there. If you don’t have that interest, don’t even bother because good customer service isn’t something you can turn on.”
Fred Karam
Buy Area Rugs Fort Lauderdale, Fla.
“Going above and beyond expectations, which could mean even suggesting a product or line you don’t carry, and sending your customer to a competitor. I’ve done this several times. They’re so surprised and shocked that they come back a second time because they know you’re going to look out for them.”
Gia Orzdemiv “It’s all about listening. Listening to the objectives of the client and helping to meet those needs without being pushy. I think the most successful sales come after the sales associate establishes a connection and that connection comes only after the buyer knows that you’re sincere and looking out for them.”
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Most retailers have a limited definition of a brand as marketing asset—a tool for communicating with people outside your company. For Denise Lee Yohn, a brand is much more than your store’s name, logo, and image or even its personality, attitude or reputation. “Your brand is what your company does and how you do it,” she writes in her book, What Great Brands Do. Branding isn’t about showcasing a business through logos or marketing campaigns. Instead, Yohn explains, “The brand is the central organizing and operating idea of the business.” This is what Yohn calls “brand as business.” It is the brand that guides every strategic decision and drives your store’s culture, its operations, and its customer experiences. Yohn urges brands to be used “as management tools to fuel, align and guide every person in the organization and every task they undertake.” Companies, she writes, must “operationalize” the brand. For example, the REI outdoor sporting goods chain has a clear brand identity built on outdoor excitement and adventure. This brand identity guides every process and decision involving the company, including the design of its retail stores. No matter where the store is located, customers are surrounded by adventure as soon as they walk in—and even before (check out the ice pick handles on the front doors). Climbing walls and faux mountainsides rise up to help customers test out their outdoor footwear. Every graphic, signage and fixture expresses and reinforces the REI brand of outdoors and adventure. Can you say as much about your store? Yohn offers seven branding philosophies in the book. Among them: • Great Brands Start Inside. For Yohn, creating a brand building culture is the first step in putting the brand at the heart of the company’s strategy and operations. Every stakeholder—not just employees, but also external stakeholders such as vendors, distributors and strategic partners—must embrace the notion that everything they do needs to align with and express the brand. • Great Brands Avoid Selling Products. Companies must not depend solely on products, even great products with superior attributes. They must find ways to connect emotionally with customers. This is never truer than with home furnishings. • Great Brands Don’t Chase Customers. A brand that tries to please everyone inevitably loses its brand identity, according to Yohn. Focus on your best customers and the unique value you bring to them.
KNOW
Restore Décor Philadelphia, Pa.
What Great Brands Do: The Seven Brand Building Principles
NOW
What Great Brands Do is a revealing how-to guide for any retailer that covets the success of the great brands in our world today, and has been wondering if they can bring that success to their store.
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2015 RNO
DISCOVER NOW
Looking for new buyers? Check us out. RetailerNOW is the only association print and digital media focused entirely on your target audience—retailers. Discover how reaching qualified decision makers—the CEOs, owners, buyers—versus just reaching, can grow your business. Advertise now. Call Michelle Nygaard at 916.757.1160.
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Can Rich Content Make You Rich and Content?
HIGHER TRAFFIC Michael Grossman's website for Kensington
Furniture & Mattress is packed with rich, engaging content. The result? More shoppers are showing up at his brick-and-mortar store.
Your website should be an extension of your brand. Here’s how to use it to drive customers to your store. By Sue Masaracchia-Roberts Five years ago Michael Grossman stared out into the future and didn’t like what was staring back: More and more companies were getting into the furniture business both online and off, including national chains. How was Kensington Furniture & Mattress, his family-owned store in Northfield, N.J., supposed to compete with the likes of Restoration Hardware on the ground and Wayfair in the cloud?
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“I knew if I wanted to compete with these big guys I had to change the way I was thinking about my business,” Grossman recalls. “That meant everything—from media to marketing to our website.” Especially the website. Grossman attended a conference sponsored by FurnitureDealer.net, a full-service Internet marketing company, and realized just how far his store had fallen behind. “It opened my eyes to what was happening in our industry and what was going to keep on happening,” he says. “I knew we needed to change if we wanted to survive.” Today Grossman’s store is thriving. Each year brings a new record in sales. Foot traffic to his store continues to increase and Grossman gives much of the credit to … his website. “There’s no doubt in my mind a large portion of (my foot traffic) can be traced back to what we’ve done and are doing online,” he says. “The Internet has been a complete turnaround for us.” And that’s what Grossman and others want you to know. Sure it’s easy to blame the Internet for lost sales in your brick-and mortar store. After all, with just a few clicks, shoppers can find price and product comparisons, reviews from fellow shoppers and more product information than they care to read. By comparison, the old method of furniture shopping involves spending most of the weekend fighting traffic and roaming one store after another in pursuit of the perfect sofa. Even then what’s to keep showroomers from buying online once they’ve found what they’re looking for? But Grossman thinks many home furnishings retailers are looking at the Internet all wrong. What if, says Grossman, the Internet lured shoppers to your store rather than repelled them? And what if those shoppers, when they left your store, left with the sofa they were looking for—all because of your store’s website? NAHFA member David Lively believes many home furnishings retailers are missing out on in-store sales because they fail to leverage their websites. He is not alone in this thinking. Research from Internet technology company Comscore shows that 82 percent of today’s consumers would not even know a business exists without their online presence. The same research shows that 71 percent of customers expect to be able to view your store’s inventory online. “Those two statistics alone should be enough to get store owners jumping to increase the quality and quantity of their content,” says Lively, whose company, TheLivelyMerchant.com, helps home furnishings stores boost Internet sales by strengthening that relationship. “Retailers only get one chance to make a great first impression, whether it is online or in store. Why risk blowing it?” he says. Indeed, with computers, tablets and smartphones, consumers are always on the go, but are rarely disconnected. As a result of the barrage of information with which they are exposed, Fred Starr
believes it’s harder for shoppers to maintain focus for more than a short period of time. Everything needs to be immediate, as personalized as possible and must be available 24/7. To attract and retain customers, retailers must be prudent and agile as they determine the strategies they use to communicate their messages. "The best websites are the ones that help customers get their questions answered," says Alex Kirsch, of FurnitureDealer.net. We know people are going online and doing their homework first, but eventually they want to HELP WANTED Alex Kirsch says the best websites are those that find a store to see things answer shoppers questions -up close. You want to be and do so quickly. that store, but ut starts online." Lively says many retailers fall short in their attempts to engage consumers online. “Clear information about the business and anything that can bring the technology aspect of online into a softer, more personal realm like stories about the company, who makes up the business and stories about where they came from” makes for dynamic copy on retail websites. Current research predicts that, by 2020, more than one-third of all home furnishings will be sold via ecommerce. If retailers don’t sell online, Lively and others argue, they will lose at least 10 percent of their volume to a different channel. These days, retailers can control their sales processes, but not product destinations. “The more you show, the more you sell,” has become a commonly used concept in the ecommerce world. Lively says shoppers often do advanced research to narrow brands, read fellow shoppers’ reviews, do price comparisons and walk into your store knowing the prices they should be seeing and what they want. Today, he says, “the purchase journey is about customer convenience.” That means to most effectively support brick-and-mortar businesses, the essentials on websites can no longer be overlooked. Some of these are obvious such as the store’s name, contact information, address and store hours. However, Lively believes those basics aren’t enough. A store’s products should be displayed in vast number with prices. They should also be easily sorted by topics like recently viewed, popular and best sellers. “Your site must include, at the least, a shopping cart or wish list, so the consumer can keep track of what she’s viewed,” says Lively. “Following up on those wish lists via phone, email or chat is also essential. A good online experience is essential to create a strong presence.” Keeping a fresh online presence with an in-the-know feel is invaluable to engaging potential customers and luring the return of current ones. Markewting strategist Fred Starr suggests retailers need to determine what customers want in order to establish a great relationship with them through knowledge. He asserts that all the retailer’s marketing tools must provide customer support to create a helpful relationship. It’s all about social marketing opportunities to balance selling and building relationships to establish trust, increasing sales and gaining loyal customers.
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Starr, the former president/CEO of Thomasville Furniture and Natuzzi Americas, said your store’s website is a large expression of your brand image and your company’s strategy. “If a retailer just shows furniture in categories, but doesn’t list any other services that are offered, a visitor is going to assume the [store] wants to just move furniture and not build relationships. Everyone is trying to sell furniture, but if you help the customer become more confident and help them make better buying decisions, you [begin to] establish trust,” Starr says. Lively and Starr insist consumers today don’t want to be sold, but engaged and empowered. “They want to trust the retailers they buy from,” Starr says. “The shopping process is about more than product and price. “Retailers need to move beyond cookie-cutter content on websites and educate potential shoppers about the decorating process. They need to position themselves as the retail authority in their marketplace.” Experts say the most successful websites keep the customer and her needs top of mind. A successful home furnishings site contains concise, relevant content that is updated frequently, along with photos, videos, blogs, testimonials, hot links to related information and sites like the company’s Facebook page. Changing the content and visuals (along with search engine-friendly tags) frequently helps search engine rankings. Most of all, each page should contain information on how to contact the store or company. It is also imperative, says Lively, to obtain an instant reporting of all statistical information—number of visits, time of visits,
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products viewed, and the path a consumer takes when searching the website. In addition, it is important to keep in mind that sites must be easy to find through local online searches. This is best accomplished when email marketing, social media and blogging all work together. What does a content-rich, engaging home furnishings website look like? Click over to kensingtonfurniture.com where Grossman and his store have been successfully engaging customers for years. Shoppers can learn from the home page that Kensington offers of a friendly, knowledgeable sales staff, design services, an online personal shopping assistant, a live-chat option, a Facebook page and a section that shows trending products. The site also offers viewers an opportunity to sign up for exclusive updates, new arrivals and insider-only discounts. Kirsch says the difference between a good website and a great one is the assistance a shopper is offered. "Live chats and returning calls from knowledgable staff is what separates the pack," he says. Grossman says the push for a relevant website has been “the greatest challenge to our business model since TV, but as an independent retailer, we need to change and adapt or we’ll be in trouble. As we’ve been retailing a certain way successfully for a long time, changing the way we do things is hard. There is no simple turnkey solution.” To help Grossman make these changes, his son, Jack, manages the web component, along with an external and three internal employees. Their responsibilities include weekly strategic planning for web content and Facebook posts, as well as daily analysis of web analytics, along with writing content, producing videos and traditional commercials and advertisements. “The web content and catalog, which Jack oversees, are the slowest build, but we wanted to do the web content on our own so we could customize it to us,” Grossman says. “Our website is like a store, so as a customer browses, we want it to be as a salesperson would describe it.” To create the site, the Grossmans say they separated buyers into different personas that modeled customers in terms of personalities and then tried to develop content to speak to each of these personas. “We use analytics to match with common search terms so we are not just throwing spaghetti against a wall, but are creating something [a customer] wants to click on,” Grossman says. “A 40 year old with four kids has different needs and wants different [furniture] than does an empty nester or a couple of newlyweds who move into their first home. We gear content as best as possible to each persona and match them to product concepts we offer.” Grossman says his store’s strongest tool is YouTube. One of his store's videos has more than 35,000 views. “The feedback we get is very good and our business is growing off it,” he says. “We recognize that, to be really good and relevant, it is a process that is not for the faint of heart. The process is way more intricate and involved and takes longer.”
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The Grossmans have left little to chance. Every shred of data is analyzed. “We try to fit how each customer shops and understand that she doesn’t just go online, but lives online,” Jack Grossman says. “We also analyze not just our video success but also our analytics, ads, Facebook posts, both our paid and organic YouTube videos, and the campaigns we create. We measure the success and click-through rates for each impression and different forum, noting what interests people on the Internet weekly.” Analytics show their web traffic, but measurement is more than that. They look at store traffic, web traffic and sales as a linear situation, comparing the traffic patterns from week to week and year to year to measure not just the way users click through their site or use Facebook, but also as that translates to store traffic and volume. “There is no guesswork, as Jack measures everything daily,” Michael Grossman says. “We put offers online that are not offered in the store, like free delivery, then break down the overall spend, the FRESH PRODUCE Seth ad spend, the locaWeisblatt's Sam’s Furniture tion spend, sales, website is updated a few times a website visits, and week. The new content utimately attracts consumers to his store. the store traffic generated. We see a significant increase in traffic since we changed to the site we constructed ourselves. Individuality is key. You must make a website your own.” Grossman says he has shifted “a fair amount of dollars” from traditional to digital media and adjusts that allotment weekly. “Our website today is the worst it will be, and each day it will get better due to what we are doing to make it better,” he says. “It’s an important part of our business growth.” Grossman says the biggest challenge retailers face when building an interesting and engaging website is creating content or information consumers care about. Grossman adds that it’s a constant battle to find the right staff who can not only create that information, but also engage others to drive business and secure the right return on investment. As chief marketing officer for Sam’s Furniture in Fort Worth, Texas, Seth Weisblatt has used FurnitureDealer.net as his content curator since 2009. “They have a process that decides how products are added to the catalog and we use data integration before it goes live,” Weisblatt says. To do this integration, the website provides a method to compare SKU numbers; this allows him to link his pricing and his product availability and match it to the price on the web so customers can see how much of that product is available at what store or how long it will take for them to order it. The website catalog is synchronized with the POS system to benefit the customer and help build trust. “Part of the service we pay for is to keep our content fresh and customize each product description before adding it to my cataloging process,” says Weisblatt. “I am a strong believer in cus-
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tomizing as much content as possible. Videos, images, text descriptions—anything you can do to bring your store experience online to the customer shopping at home will separate your business from the competition.” Weisblatt uses every possible element to help build consumer confidence in his store, but first and foremost he leverages the image and beauty of what he’s selling. He is, after all, in the home furnishings business. “Images and videos are the strongest elements to use, while words will educate the customer once she is interested enough in the images,” says Weisblatt. “We also use blogs to help tell our story.” The initial versions of these blogs are ghostwritten by an outside firm. “We tell them what we want them to write about and they write it,” he says, “Then we put personal touches on them that relate to the community and the store.” The Sam’s Furniture website is updated a few times a week. The fresh content is what attracts consumers to his website and, ultimately, his store. “People shop online and look at the stores they want to [visit] locally. The more you can build trust with the customer about your store being one of the places they need to shop, the better your success will be in growing your revenue,” Weisblatt says. “To build this trust, you need to display the same pricing, the same financing and message consistantly. Integrating and sending all these messages, reinforces the idea that you are the store that serves the community and builds trust.” His site includes all of these elements. Weisblatt, who also uses analytics to track item successes, adds, “Our industry is a visual one. The products we sell are fashion, but tell a lifestyle story to the friends and family you welcome into your home. When you present your business to customers online, they should be able to visualize the products they see as representing your beliefs and values. Analytics empower my [purchasing] decisions as a retailer. We absolutely see a direct correlation between website and store traffic.” Weisblatt used a targeted print circular last fall; he attributes a reported 30 percent increase in both website traffic and store sales to this campaign. He is amazed by the disruptive technologies available today and loves to take advantage of opportunities he sees to solve problems as he perceives them. “Customers have more knowledge of what they want,” says Starr, “and what they want is faster, easier and fun, along with better results. Everyone is trying to sell furniture.” If you help the consumer by providing rich content that engages them and gives them the information they need and you create a great buying experience, you may get not only the sale, but also a loyal customer.”
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Sue Masaracchia-Roberts is a freelance writer, editor and public relations consultant in Chicago. Her specialties are the fields of manufacturing and small business. She can be reached at suemas@copmcast.net.
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FIRST Prospects are the most overlooked population in your business. Make your first exchange with them grow into something more than just a visit. By Jeff Giagnocavo
I
t’s safe to say we are squarely in a new economy. Whatever “new economy” means. For the record I despise the phrase. I prefer the “economy in which we must conduct business.” Considering all the different places your customers can learn about your business, when do you actually make the first exchange? More importantly when do your customers think they have made the first exchange with you? Before I go too much further in this article I want to be very clear about who the people are who pay you for your for merchandise. Every business has three levels of people who make an exchange or pay you for what you offer. • Leads—those people who have indicated interest in your business. They
have yet to visit or call your store but have taken the time to learn more about what you do and offer.
• Prospects—those people who have made a visit or had a lengthy phone
call but have yet to purchase. • Customers—those who have completed a purchase.
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It’s likely you are familiar with both leads and customers as a definition of those you sell to, but prospects not so much. Prospects are the most overlooked population in your business. Often you think about traffic or leads as the sole way to create customers. Yet, there is an entire other population of selling opportunities that exists in your business. Prospects are the people who have made the first exchange with your business. Be it time on the phone inquiring about products or a store visit, prospects have invested with you the most valuable thing known to man, time. You and your staff have invested time, too. Yet, most don’t often respect or complete their part of the exchange. They give great advice, input, and education on their prospects’ forthcoming purchase. The prospect is grateful and maybe today simply is not the day to make the final decision. No amount of selling, closing, or discounting will change that. So what to do? Complete your part of the exchange. Put all of your prospects onto a pathway, or as I call it a system for follow up. Consider for a minute the value of this and when done right the possibility of increasing business by as much as 40-50 percent! If you close at 40 percent, there are 60 percent of prospects who invested their time into your business, did you get the payoff? Will you see a return on your time investment? What happens when a prospect completes an interactive chat via your website? Or when they call your business? And of course when they leave your business? All prospects have invested their time and made their first exchange with you at this point. You must have a system that moves the prospect to customer quickly, efficiently, and respectfully all while delivering timely, relevant, and most importantly personalized communications. True success and maximum results will require more than just email follow up. When you combine email, direct mail, phone (outbound and voice broadcast) you create a knock out punch combination that will increase sales and put more money into your bank account.
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This type of follow up system is no different than aligning your front-end lead generation media to complement one another. Your mass media efforts always align with and drive your internal offers. Why not align and embrace the same concept for those prospects who are no longer a faceless name on a list, a click, an impression, or a like? Why not treat prospects with the respect and investment they deserve and get them to come back? After all they are likely at least 50 percent of your available traffic and overall lead flow. Would you accept an advertiser telling you “we tossed out 50 percent of your inserts, you weren’t going to sell to those homes anyway!” Not a chance! So why do you continue to accept the same with the prospects who have made an exchange, are a real person, someone who you or staff knows by name, understands their needs, and who, when given a proper sales presentation, you can follow up with after their visit when they have yet to buy. As a side note, I am in no way instructing you not to close sales. I am suggesting that a first-visit system to follow up with prospects you don’t close on the first visit will move the needle with increased sales and profits. Given the day and age we are in there are endless technology options that will help fill out your follow up system. When considering various technologies that will help you build this system look for customer relationship management (CRM) software that can be automated so the communications are sent for you once you input a new prospect. Any CRM you consider should include the following: • Capture and use of email, address, phone. • Ability to look up a prospect using any piece of contact information you have. • Ability to track offers, discounts and specials that interest prospects. • Tag or mark prospects based on what communications have been sent to them and what they have engaged with. • Ability to move a prospect from one part of the system to the next simply based on the prospects level of engagement with your communications.
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• Metrics of how many leads, prospects, and customers you have at any time, with on-demand reporting without calling customer support or entering a service ticket. • A real-time dashboard or snapshot of how your leads, prospects and customers are moving through your various systems.
If you close at 40 percent, there are 60 percent of prospects who invested their time into your business, did you get the payoff? Will you see a return on your time investment? While this may seem like a daunting task it isn’t. Simply get in front of a whiteboard and map out how you see prospects being followed up with in your business. What happens once they leave and when? You could send a postcard, an email, or make a thank you phone call. In a couple days, another email asking for feedback that includes a gift with purchase offer if their order is placed within a week of the email being sent. Then a phone call, to see if there are any other questions that need answered or insights you can offer. The possibilities are endless. Just remember, prospects have invested in you, they exchanged their time for your information. Are you re-investing in them? Install a follow up system in your business and your investment in prospects will pay huge dividends. Jeff Giagnocavo is co-owner of of Infotail, a sales and marketing agency. He can be reached at jeff@infotail.com
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Karen L. Hornfeck
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ew Orleans,” author Tom Robbins once observed, “listens eagerly to the seductive promises of the future, but keeps one foot firmly planted in its history.” Robbins was describing the historic Louisiana city but he could easily be describing one of its residents, Julian Mutter. Mutter is the president emeritus of Doerr Furniture, a store that for 77 years has stood on Burgundy Street and Elysian Fields in the heart of historic New Orleans. Mutter has carefully
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preserved Doerr Furniture’s long-tradition of offering quality furniture and service while also skillfully helping the company navigate challenges to ensure that it is well-positioned to thrive in the future. Charles Doerr, Sr., Mutter’s grandfather, started making rocking chairs to help alleviate health problems as a result of working in a local insulation plant. He started selling the rockers to local furniture retailers and expanded his business by opening Doerr Furniture in 1938. When Doerr’s youngest child, Marilyn, married Lloyd Mutter, a succession plan organically came together and Lloyd Mutter eventually took over the store. Together, Lloyd and Marilyn Mutter raised five
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Grounded in the Past
Embracing the Future ________________
A New Orleans blend of quality, service and strategic vision has paid off for Julian Mutter.
“
What really got me interested in the business was design. I am intrigued by anything that is designed well. — Julian Mutter
”
graduation, his father offered him a job. “At the time, I was tired of being in school and didn’t want to go another two years to be a certified teacher,” explains Mutter, so he took the job. As he worked in the store, Mutter was surprised to find his passion. “What really got me interested in the business was design,” he explains. “I am intrigued by anything that is designed well.” As big box stores started carrying mass-produced furniture lines, Mutter decided to hone Doerr Furniture’s focus on offering well-crafted furniture lines and pieces designed to fit the smaller scale of the local historic homes and expanding the store’s design services. Mutter’s strategic decision paid off and business thrived. By the mid-eighties, Mutter was appointed president of Doerr Furniture. He has never regretted his decision to join the family business even though there have been some sizable challenges to navigate. Perhaps the most daunting challenge came in 2005 when Hurricane Katrina, a category 3 storm, slammed into New Orleans. The city’s levy system failed and 80 percent of New Orleans was underwater. Flood waters lingered for weeks. Seventy percent of the city’s occupied housing was damaged. More than 1,400 people died. The devastation to the city was overwhelming. “Katrina is a timeline to everyone in New Orleans,” Mutter says. “Everyone defines time by that event, before Katrina and after.” After being evacuated, Mutter couldn’t return to New Orleans for seven weeks. Fortunately the store is located on
STAYING POWER It was never assumed Julian Mutter, left, would take over the family businesses, but once he did, Doerr Furniture was never the same. Right, a banner outside Doerr Furniture celebrates the store's longevity. children and grew a successful furniture business that soon had a reputation for personalized service and discounted pricing in New Orleans. Julian Mutter, the oldest of Lloyd and Marilyn’s children, started working in the store when he was eight years old, dusting furniture on the weekends. By his teens, he had taken over managing inventory. “It was the late 50s,” Doerr recalls, “and my brother and I were making 25 cents an hour.” But Julian Mutter didn’t grow up assuming he would stay in the family furniture business. He majored in English literature at Tulane University and thought he would one day teach. But after RetailerNOWmag.com
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FAMILY HISTORY: A wall in Doerr Furniture pays homage to the store's lineage through two ink drawings of Julian's father, Lloyd Mutter and grandfather, Charles Doerr Sr.
“
Part of our job is to educate the consumer about what they are buying and to teach them that in the long-run, it’s better to invest in good quality furniture that will last. — Julian Mutter
”
But, good quality furniture can be more expensive. Consumers with disposable income might be tempted to head to a big box store that, at first glance, offers a better price. That’s where education becomes important, says higher ground and suffered minimal damMutter. age. It re-opened two months after the catas“Furniture purchases are always vying for trophe, ready to help the city re-build. And disposable income that also goes towards enbusiness was booming as residents sought to tertainment, travel, dining,” he says. “Part of put their lives back in order. our job is to educate the consumer about what “Business tripled overnight,” Mutter they are buying and to teach them that in the says. The company re-invested much of the long-run, it’s better to invest in good quality profits into updating and redesigning the furniture that will last.” Mutter credits a big original store. As the store was updated, part of Doerr Furniture’s success to a wellthough, Mutter made sure to maintain trained and committed sales staff who work Doerr Furniture’s identity as an integral hard to instruct customers about the qualities part of the rich history of New Orleans. In of well-made furniture and who take the time the 1920s, the store had been a Ford Motor to get to know customers so they can offer dealership. Mutter kept the original elevator personalized service. that transported Model Ts and Model As to Mutter says his staff staff makes sure that the top floor showroom when updating the every customer is greeted at the door and is store. The pulley-style motor that operates it STRATEGY Mutter takes a backseat to made to feel welcome. “We had an older man is the last of its kind working in the city. An who was a bit disheveled come in one day,” daily operations in favor of strategizing for the future. original neon sign still marks the location he says “and he asked us to show him our best of the store as well. As residents returned to mattress.” Somewhat dubious, the salesperson the city and began refurbishing homes that had been destroyed by showed the man a king-sized mattress that cost more than $1,000. the flood, they turned to a trusted local business to help them and The customer promptly purchased it. Mutter later found out that Doerr Furniture continued to grow. he was a musician who’d been out late playing a show and wanted And then came the financial crash of 2008. “I’ve been through a good mattress because he was tired. Mutter says he and his staff every recession,” Mutter says, “but 2008-09 was the longest lasting learned a valuable lesson that day: “Never judge a book or a cusand most profound.” The store cut staff and rode out the recession tomer by its cover.” to come out healthier on the other side. Mutter credits Doerr FurDoerr Furniture’s website shows that the company is serious about niture’s survival to a simple philosophy. “Stay relevant—know who staying relevant in a world where technology has changed the way you are, who you want to serve and do it well,” he explains. consumers shop. With a far-reaching social media presence that “We provide good quality and good service,” says Mutter. The includes a blog, Facebook, Instagram, Pinterest, Youtube, and Yelp, store offers well-made, solid wood pieces that were built to last from Doerr Furniture is reaching out to customers in new ways. Mutter well-respected brands like Stickley, King Hickory and Flexsteel. credits his nephew, Shane Mutter, for developing their extensive
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social media marketing plan. Shane Mutter took over as president and chief executive officer in January and began the fourth generation of family to work at the store. Julian Mutter became president emeritus at the same time. Now that Mutter has taken on a new role, he plans to step back somewhat, focusing his efforts on maintaining a strategic vision for the store versus managing day-to-day operations. Remember that passion for design? Mutter has turned his interest to the historic buildings of the Faubourg Marigny neighborhood, the second oldest in New Orleans and where Doerr Furniture is located. Mutter has four renovation projects in operation throughout the area. The buildings are vastly different—an apartment building, a mill, a funeral parlor and a former church—but all offer Mutter a chance to take an historic building and re-configure it in a sustainable way. “These buildings are all well-built, but neglected and they deserve to be brought back,” he says. Mutter respectfully preserves
the historic aspects of the buildings while re-designing them to be useful for today’s world. An avid cyclist, Mutter also wants to add a bicycle parking area and interior bicycle storage space in one apartment building that he is restoring, as well as a roof garden. Mutter smiles, his eyes twinkling and says “My favorite game when I was growing up was Monopoly.” With projects and properties scattered throughout his beloved city, it seems that Mutter has learned to play the game well, and New Orleans is all the better for it. Karen L. Hornfeck is a freelance writer and marketing consultant based in Greensboro, N.C. She has more than 20 years of experience in marketing, public relations and journalism. She can be reached at dkhornfeck@gmail.com
AT HOME Mutter makes sure his sales staff, which
includes, Jennifer Braud, make sure that every customer is greeted at the door nd made to feel welcome.
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s
Tap into the expertise of others
T
By Tom Shay
here are few things a person can do entirely by themselves. Those who participate in professional sports such as golf, tennis or bicycling have others who are coaching them to improve their performance. Even someone who writes columns such as this one has people who are proofreading and editing their work. Yet, most small business owners seem to attempt to fly solo. It may be a bit harsh; there is an old saying. “With all the creatures on earth, the human is the only one who has the ability to learn from past experiences and experiences of others like it. Yet, they continually refuse to do so.” Any experience you are going to have in your business has surely been experienced by someone else. Whether they successfully navigated the experience or failed the experience, there was a lesson to be learned. Networking and being involved in your industry will give you the opportunity to meet and learn from your peers who’ve been there and done that, but there are also other experts you can tap into to help your business grow. The first person you need is an accountant. Unfortunately, too many business owners simply settle for someone who completes the necessary tax forms. Whether this person is an accountant, certified public accountant (CPA) or enrolled agent (EA), this person needs to have the unofficial title of ‘trusted advisor’. This relationship must be a two-way street; you have to state your shortcomings of financial knowledge and ask for help. The accountant has to help you get that knowledge, and it’s more than just
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telling you to take an accounting course at a local college. Finding the right accountant takes effort. Ask other independent retailers about their accountants. While it is an added benefit, it’s not a requirement that your accountant be in the same town as your business. Choosing the second person will depend on the number of years you’ve been in business. This relationship is referred to as mentor/ mentee. If you are new to the business you will be the mentee. With many profitable years in the business you are the mentor. Note that this says profitable years, not just years, as some business owners have 20 years of experience and others have 20 of the first-year experiences. If you’re new to the business or the industry, for that matter, wouldn’t you like to have access to someone who’s already successfully navigated the challenges you’re facing? Finding a mentor who is willing to share, by phone, email or in person, can help you avoid some of those expensive mistakes you’re likely to make in the beginning. As a mentor you gain the benefit of being exposed (most likely) to someone who’s ambitious and wants to try a lot of new things. This energy could breathe new life into your own operation and remind you how excited you were when you first started your business. The second benefit is the opportunity to give back to the industry. You probably didn’t decide when you were a child that you wanted to open a home furnishings store. Yet, you found this industry and the industry has been very good to you and working with a mentee is an opportunity to give something back. Another place to look for business experts is in your own backyard, so to speak. Look to the other small businesses in your town. Who runs the best hardware store or pharmacy? What about an independent grocery store, sporting goods store, pet shop, clothing store, restaurant and auto parts store. Look for individuals whose business is more service oriented than product oriented. These businesses have to give a lot more attention to how they take care of their customers and a lot can be learned from them. Create a group of like-minded local businesses; the group needs
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to have at least six members and should not be more than twelve, including you. You could even open your group to staff who work at a chain store. There may be areas where this individual does not have experience, such as negotiating a lease, but there are a lot of fine details to retailing that their company teaches them that most independent retailers don’t think about. Another option is to engage a college professor, whose expertise is business management, to participate as a moderator. Morning breakfast meetings work the best as you are getting everyone together before they are exposed to any interruptions within their business for the day. Including the meal, you should plan on this meeting lasting no longer than 90 minutes. A monthly meeting works best—having too many meetings will likely drive people away. You’ll need an attandance policy, something to the effect of missing two consecutive meetings means you will be removed from the group and someone else will be invited to take your place. Having a restaurant owner participate has benefits. One is that they’re a service-driven business and their product is unique in that it can spoil. You can sell a sofa that has sat on the floor for a month, but you can’t sell anything from a restaurant that has sat that long. The third reason for inclusion is that their restaurant is the ideal place for the group to meet. As you select candidates for the group, undoubtedly, you’ll find individuals who can’t find the time, make the commitment, or just don’t see a benefit in learning from others. Some independent owners believe they have trade secrets that should not be shared with anyone. Before the first meeting, members should write down what they expect to gain from their membership in the group and what areas of their business they would like to address. This is important. Use this information to create a schedule of topics to be discussed at each breakfast. Initially your meetings will likely just be discussions. As the members become more comfortable with each other, you’ll be able to have individuals prepare information to share. Articles and columns from trade magazines such as RetailerNow are excellent sources of information. Members will find they share many common traits. As an example, a pharmacist knows when a customer comes in to get a presecription filled, they aren’t necessarily there to shop. However, once they’ve dropped off their prescription and are waiting they will browse and possibly make a purchase. A group member who cuts keys, repairs vacuum cleaners, or offers a similar service could learn from the pharmacist about product merchandising or displays or even get tips on giving good customer service to those who wait. This give and take and sharing of ideas is the whole purpose of the group. You could fly solo, or you could take advantage of an advisory board, an accountant, and the mentor/mentee relationship to develop a great team for your business. Tom Shay is a former retailer who now helps other retailers grow their business. Subscribe to Tom Shay’s e-ret@iler, a monthly newsletter packed with tips for growing your business, at proftsplus.org.
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WHEN TO LOOK FOR HELP There's nothing wrong with seeking outside help to run your store. In fact, outsourcing can be a strategic tool for making your store more productive and profitable—if you know when to take advantage of it. Consider the following criteria when deciding whether to outsource: • The activity isn't central to generating profits or competitive success. • The job is a routine one that wastes valuable time and energy. • The task is a need that's only temporary or that recurs in cycles. • It's less expensive to have someone else do it than to do it in-house. • The activity can be done cheaper in-house, but drains resources that could be better used elsewhere. • The skill required is so specialized that it's impractical to have a regular employee do it. • The activity isn’t one that people enjoy doing. • Outsourcing is a viable option for everything from payroll, accounting, manufacturing and delivery to customer service, employee training, property management and computer services. The key advantage of outsourcing is that it enables you to invest your resources into more profitable activities. Companies, however, should be careful not to outsource functions that appear negligible, but that are actually essential, such as customer service operations in a small business that relies on building rapport with a loyal customer base.
Do your homework. Ask other retailers in your area for recommendations on good outsourcing firms, and search the Internet for a more comprehensive list of services available. Ask the companies you research to give you client references, and interview these clients to find out how reliable and flexible their services are. Select a compatible company. Choose a company that understands your needs and can accommodate them. Create a contract that allows you to adjust the terms of the agreement to suit unforeseen changes. An arrangement that's satisfactory now may not work in the future if your store expands or competition increases. Establish the standards you expect. Outsourcing will mean the loss of direct control and supervision, so communicating the standards of performance you expect is a must. Outline these standards in the contract in detail, and check up on the company periodically to make sure that it's doing its job correctly. Arrange for constant communication. Schedule regular meetings with your outsourcing people to stay informed and discuss the day-to-day problems they've encountered. By staying aware of what's going on, you can prevent potential problems and improve how your business operates.
JULY | 2015
6/17/2015 12:09:29 PM
Grant Laidlaw VP of Sales Eric Clarke President
Locations: Puyallup, WA Mira Loma, CA • Morganton, NC Fax: 828-764-4461 • Phone: 855-208-6377 Email: sales@NWFXpress.com Please contact Grant Laidlaw VP Sales at 778-549-3188 or glaidlaw@nwfxpress.com to review your transportation needs.
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The Northwest Furniture Transportation Leader
www.NWFXpress.com
6/17/2015 12:09:57 PM
Secrets of a Plaintiffs’ Attorney: 14 Ways to Make Her Day Being taken to court for an employee claim can be costly … so don’t help the opposing attorneys build their case.
By Stephen D. Bruce
“Because I am a plaintiffs’ attorney, people want me to fail and die,” says attorney Whitney Warner. Instead, Warner turns the other cheek and tells human resource managers and business owners what they can do to avoid lawsuits. Warner, who is a founding partner with the labor and employment law firm of Moody & Warner, P.C., in Albuquerque, N.M., says that “almost every type of employment law case is preventable.” Unfortunately in many instances, says Warner, employers unwittingly help build the case for her and her client.
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“For me to take a case,” says Warner, “there first has to be tolerable merit to the employee’s claim; it has to have the ring of truth to it.” Then, there is a laundry list of things employers do to help her strengthen the case. Here are 14 things to avoid (unless you want to make the plaintiffs’ attorney’s day).
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“
”
Almost every type of employment law case is preventable. Whitney Warner - Attorney, Moody & Warner
1. Give No Reason for Termination.
5. Superficial Internal Investigations.
Don’t rely on at-will—an employee will say, “They’re firing me for an illegal reason that they are covering up.” Giving the reason after the claim is asserted can look fabricated, says Warner. Even worse: The reason offered by the employer changes over time. Even worse than that: The reason is contradicted by objective evidence. Note, says Warner, that unemployment hearing testimony is a powerful part of her arsenal. She likes it when supervisors testify. They are often not prepped. She will ask, “Is there anything else?” and they will say “No,” because they are always in a hurry. Now she has limited the employer’s response to what that supervisor said.
This manifests itself in several ways, says Warner: • You asked the harasser what happened and called it a day. • The investigation took too long. • The investigation was not documented. • Relevant witnesses were not interviewed. • No corrective action was taken. • The company responded to other complaints more earnestly. • The company failed to act because there was “nothing concrete.” Your job is to reach a conclusion, says Warner. Even worse: Further offending the employee by the questions asked. In one situation, the employee complained about being referred to by the N word. An investigator asked, “Do you use the N word at home?” The investigation is focused on the complainant. Even worse than that: There was no investigation at all. The company responded: “That’s just the way he is.”
2. Fire because of Performance, but Give a Good Evaluation. People believe what they see in writing, so the reason for termination will look like pretext, says Warner. Even worse: Nothing negative in the file ever. Even worse than that: Employer got a bonus or raise, too. In one case, the employer said the employee was a “complete failure,” but they gave the employee a $25,000 bonus. Even WORSE than that: Employee got a glowing letter of recommendation. In one case, the employee was fired for supposed detail mistakes, but the VP had written “great with details.”
3. Bad Timing. That is, there was an internal protected complaint followed closely in time by termination. How long is closely? At one year, I’m not interested, says Warner. She is looking for weeks or same day.
6. Believe the Employee Was Just Trying to Get in the Retaliation Bubble. “She’s only bringing up her complaint because she just got written up.” Why do employees wait to make a complaint? People will put up with a lot until it starts affecting their income and job security.
7. EEOC Response Is Not Well Done. Warner reminds employers that she gets the employer’s Equal Employment Opportunity Commission (EEOC) response before she takes the case. Typical problems she encounters are: the charge was not investigated; statements turn out to be wrong; the investigation was too cursory; or the response insults the charging party (even worse, the response insults the EEOC).
4. Ignore Prior Notice of Legal Issues. If the company had had prior complaints about the same issue or person, then they knew, says Warner, and should have taken action. Even worse: Ignored legal information in exit interviews, such as in the following— Q: Do you feel you were subjected to discrimination or hostile working conditions here? A: Yes Should this happen, you have to investigate it as an internal complaint, says Warner.
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8. Don’t Follow Your Own Company Policies. When the company ignores its policies, it looks like: • Utter indifference, which can lead to punitive damages. • Discrimination. • Something that has to be explained. • Something that is not fair. If it doesn’t feel fair, it feels illegal, Warner says.
9. Issue a Gag Order. “Jane has filed an EEOC charge and you are not to talk to her or her attorney. You must report any contact to management.” Or else, what? asks Warner. This looks like: • Witness intimidation. • Interference with an investigation.
10. Ignore a Pre-suit Letter from a Lawyer. Give the lawyer a reason to go away instead of a reason to pursue, says Warner. For example: • Provide the employee’s personnel file. If the termination is well-grounded, it will show in the file. • Provide the relevant company policies. • Explain your side.
11. Present Management/HR Witnesses Who Seem Clueless When Testifying. Warner finds managers guilty of: • Not knowing the policies. • Not knowing if or when training or corrective action took place. • Not knowing how complaints are “supposed” to be handled. • Answering “I don’t know” to questions like “What is this case about?” “When was the employee trained?” “When were you trained?”
THE TOP 5 CLAIM REPELLENTS Want to stop making a plaintiffs’ attorney’s day and start ruining it? Whitney Warner suggests these five keys to avoiding claims and other costly legal entanglements—she calls them “claim repellent.”
1. Be Responsive to Employee Complaints When employees complain, they want the situation fixed. So be responsive, says Warner. Act quickly, within 24 hours if possible. Treat the complaint as if it has merit instead of dismissing it as inconsequential. Ask yourself, “What would I do if everything the employee complains about is true?” Also, she says, be skeptical about the supervisor’s explanations. The supervisor will never say, “I fired them because they are over 40.” Verify with paper, says Warner.
2. Discipline the Manager Who Dropped the Ball and Disown the Bad Conduct For example, says Warner, you might discipline a manager who: • Observed unacceptable conduct/language/jokes but did not intervene. • Sat on a complaint. • Made a decision without using correct procedures. Discipline those about whom the allegations were made as well, especially high-ranking managers. At a minimum, have a conversation and document it, says Warner. Once this is done, disown the unpleasant conduct by communicating to the employee that “X is against the policy and values of our organization. Thank you for reporting it.” Also, Warner says, be sure that no retaliation against the complaining employee occurs.
3. Maintain Great Documentation
For example, says Warner, avoid being overly aggressive during EEOC mediation or bullying the employee at a deposition or at trial.
Keep your paperwork airtight when it comes to conduct, complaints, and how they were handled. For example, says Warner, have progressive discipline documentation that shows any employee agreements to try harder. Maintain notes of complaints and meetings. Be sure documents are detailed with the employee’s actual mistakes. Email, Facebook, and Twitter accounts may show that the employee didn’t care about the job or even knew he was doing a bad job. Records of Internet, email, and text usage may help show an employee’s proclivity to wasting time.
14. Documents Are Missing or Suspect.
4. Offer Something to Make It Better
For example, if the employer can’t find the employee’s performance evaluation or any other applicants’ resumes, it’s good news for a plaintiffs’ attorney. It’s also highly suspicious when an employer has just discovered “new” documents or unsigned disciplinary forms.
For example, says Warner, offer time off, counseling expenses, a new location, a different supervisor, or repayment of lost wages. Or simply ask the complaining employee, “What can we do that would work this out?”
12. Try to Be Clever with Testimony. Clever testimony will backfire, Warner says. A court won’t find you as savvy as you might think you are.
13. Demonize or Humiliate the Employee.
Stephen D. Bruce is the managing editor of HR Decisions. He can be reached at sbruce@blr.com.
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5. Show Candor and Empathy Be clear, says Warner: We messed up. We feel terrible. This is how we fixed it. “This KILLS!” Warner says. Honesty, transparency, and empathy are some of the best tools an organization can use to head off any possibility of a future claim.
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866.325.0015
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A
e B D
ALL WET Disney’s favorite mouse made quite an entrance
BIG SPLASH!
during HFNC's final night celebration at Epcot Center.
Nearly 400 people attended the North American Home Furnishings Association’s annual Home Furnishings Networking Conference at Disney World’s Coronado Springs Resort in Orlando this spring to celebrate the Retailers of the Year winners (congrats, Shane Spiller and Chris Cooley!), to learn how to grow their business from their peers and experts in the industry and, of course, to relax. On all accounts, mission accomplished.
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sss LE
of eve
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ALL IN THE FAMILY Chris Cooley and her husband Aaron celebrate Cooley winning the NAHFA’s Retailer of the Year award. Behind them, from left to right, are Cooley's staff and family: Dave Williams, Vanessa Liesen and Bob and Carrie Hemme.
THUMBS UP Shane Spiller, you just
won NAHFA's Retailer of the Year award, what are you going to do? Disney World, of course, with his wife Emily.
ssss LET’S DANCE
Dennis Novosel and Jill Bartfai of Stoney Creek Furniture spend an enchanted evening at Disney’s Boardwalk.
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WORDS OF WISDOM NAHFA member Keith Koenig of City Furniture implored fellow retailers not to get discouraged in their business. “Nothing great ever comes easy,” he said. “If it did, everyone would be selling furniture.” DISNEY’S OTHER SIDE Attendees roamed secret tunnels beneath the Magic Kingdom during an exclusive behind-the-scenes tour.
READY TO LEARN Nearly 400 attendees flocked to Disney’s Coronado Springs Resort to hear and learn from some of the industry’s brightest leaders on how to take their businesses to the next level.
ALL EARS Serta's Marty MEET AND GREET Tom Olinde, right , of Olinde's
Melcher speaks to NAHFA members.
Furniture, listens to one of the more than 40 vendors who attended the networking conference.
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APP HAPPY Daniel Capo, left and Andres Capo,
center, and Serta's William Lacayo relied on the HFNC's app for all of their conference information.
NICE TO SEA YOU Desi Miller of Moso Graphics and HIllside Furnitiure's Jeff Selik hang out at Disney's Epcot Center with a Sea Witch.
Furniture Retail Software Partnership
“STORIS is a valuable partner because of their industry insight. The thriving network of furniture retailers they support is clearly seen in the design of the STORIS software and expertise of their team.” Ashley Snikeris - Retail Operations Manager
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Accent furniture allows retailers to pique consumers who might not be willing to make a huge investment in home dĂŠcor. By Robert Bell
MIXED MEDIA DwellStudio for Magnussen likes mixing things up with its accent furniture. This Bennett coffee table delivers with a hand-applied gold leaf finish and luxe creamy travertine top.
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MID-CENTURY MODERN One of the more popular pieces of accent furniture is the media cabinet. DwellStudio for Magnussen’s version features a textured walnut facade on a mid-century inspired frame.
N
obody was the least bit surprised late last year when DwellStudio announced its partnership with Klaussner and Magnussen—two of the most respected manufacturers in the home furnishings industry—to showcase the design house’s fashion-forward modern furnishings. Except maybe those who wondered what took so long for such a union in the first place.
After all, Wayfair-owned DwellStudio has a massive following of fans who have fallen hard for the company’s modern and eclectic home furnishings, its accent furniture in particular. At the High Point Furniture Market in April, Magnussen debuted several of DwellStudio’s accent pieces to glowing reviews from retailers. “We were very pleased with the response,” says Nathan Cressman, president of Magnussen Home Furnishings. “Accent furniture continues to grow and Magnussen very much wants to be part of that growth.” Indeed, think of accent furniture as the home furnishings piece whose time has come. After years in the supporting role, the oftmisunderstood category has taken center stage for many in home décor with manufacturers scrambling to fill consumers’ demands. For Coast to Coast Accents, which produces roughly 550 pieces of accent furniture and accessories, business has been good. Very good. The Tennessee manufacturer has enjoyed an exponential growth of 30 percent over each of the past six years, according to Dave McIntosh, the company’s president. “Obviously to see that kind of growth the first year or two is not going to be surprising, but to continue with that momentum six years later shows just how popular accent furniture is for us and the industry.” And yet for all its popularity, accent furniture still has an image problem, namely some retailers still confuse the category with accessories. Accent furniture can be any one of several pieces of furniture—chest of drawers, media cabinet, loveseat, small table and more—that steps out of the traditional grouping a consumer has in her home. It draws the eye in and creates a bit of excitement to a room, much like an accent color. “Think of accent furniture as that piece in the room that everyone is staring at or talking about,” says McIntosh. “It’s the one piece that stands out against all the sameness in the room.” It wasn’t long ago—maybe 15 years or so—that consumers were locked in to that sameness, buying an entire matching group from a manufacturer. “If a customer bought a dining room table they, in turn had to buy the matching cabinet,” says McIntosh. “And, in turn they felt compelled to buy the matching living room and in turn the kitchen and bedroom. Thankfully that’s not the
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ACCENT ON STYLE Coast To Coast's sleek bench
adds modern sophistication to a dining room table or any space. Right, the company's media credenza is a nice way to add storage with style to any room.
n way people are thinking or buying these days. They want that splash in the living room, that piece that makes their friends stop and say, “Wow!” They want that cabinet with a splash of color. It doesn’t take over the room, it compliments it.” Increasingly consumers and designers are using accent furniture for all their home furnishings needs—from the living room to the bedroom and every room in between. McIntosh and Cressman said retailers can find intriguing designs in a wide range of prices, making accent furniture the perfect choice for consumers wanting to make a quick change to a room without having to become heavily invested. Almost all of Coast to Coast’s line is priced under $1,000. “When it comes to making a buying decision,” says McIntosh, “there’s a lot more discussion going on over a $5,000 purchase for an entire room versus a $599 to $999 purchase of a nice credenza or another piece of accent furniture.” Another perk to accent furniture: Millennials, who pride themselves on being different, are drawn to its uniqueness. “Millennials definitely want to express their individual style, and buying piece-by-piece is a great way to do that,” Cressman says. “DwellStudio makes it easy because we
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build that eclectic aspect into our design approach.” Jack Johnson, vice president of sales and marketing at The Bramble Company said his company’s accent furniture resonates with younger consumers wanting to carve out an identity of their own. In response to the search for the eclectic, McIntosh says Coast to Coast Accents goes to great lengths to keep its product line fresh. With the exception of a few best-sellers, the company creates new products and gets rid of the old every 18 months or so. “We have to keep it fresh,” says McIntosh. “Consumers want something unique they can claim as their own. Keeping something out there longer than 18 months runs against that.” “You hear these studies about Millennials running in herds, but they also want their own flair,” says Johnson. “They want to make their home unique without the matchy-matchy their parents have. Millennials want one or two pieces specific to them. That’s why they’re drawn to accent furniture—because it gives them that indi-
viduality they’re looking for.” Few other home accent manufacturers offer individuality the way Bramble does. Johnson estimates roughly one-third of the 800 pieces of furniture the company produces is accent furniture. Each piece is available in more than 60 finishes, with 100 pieces of art, six levels of distressing and six premium finishes. Johnson says consumers are drawn to heavily distressed white and black pieces as well as driftwood finishes. “We’re seeing a lot of demand for an accent piece that has the look and feel of an antique,” says Johnson. “People want that mainstream look with a piece that looks older, that’s been part of the family, to complete the room.” Cressman says customers of Magnussen, which is still in the infancy of carrying accent furniture, are demanding more color, especially in high-gloss lacquer as well as copper as an accent metal. “We are also see-
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ing a lot of designs that are geared toward smaller spaces for the urban customer,” he says. At Coast to Coast Accents, McIntosh says it’s all about the finish with accent furniture. Greys are important followed closely by blues and sand finishes. Wood is the medium of choice, he says, particularly exotic woods like sheesham with a bold grain running throughout. “It absolutely finishes out beautifully,” McIntosh says. “Customers really want to take advantage of what nature gives and those exotic woods fulfill that.” Of course, display is everything with accent furniture. Retailers need to be more strategic in setting up vignettes, says McIntosh. Accent furniture, he says, shouldn’t steal attention away from a grouping, but rather compliment it. Coast to Coast Accent’s catalog offers consumers and retailers page after page of visual ideas. “Retailers are able to see so many room settings with our (furniture),” McIntosh says. “It helps give them the vision for their store, plus they can refer back to this with their customers.”
KNOW
D
NOW
Our industry is always changing. The minute you think you know it all, that’s when you’re in trouble. Fortunately there’s RetailerNOW to keep you informed and on track. We’re the only association magazine dedicated to educating and inspiring retailers just like you to stay in the know. Subscribe now. Visit Retailernowmag.com.
VARIETY OF FINISHES The Bramble Company's accent pieces, like this cabinet, are available in more than 60 finishes.
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Are You Sending Your Mattress Shoppers to Your Competitor Without Realizing it? By Gerry Morris
“No thanks, I’m just looking.” “I need to think about it, but I’ll be back.” Uh oh. These dreaded statements are uttered countless times everyday in home furnishings stores. Unfortunately just lookers and be backers are part and parcel of not only our chosen industry but also of retail in general. There is a culprit you may not have considered that can send shoppers to your competitor. In this article, I’ll reveal what that is and give you specific suggestions on what you can do. While we’re all concerned when potential customers leave without purchasing, it’s important to note the difference between these uncertain shoppers based on their shopping mission. Furniture and accessories versus mattresses. I suggest there is more cause for alarm with mattress shoppers than home furnishing shoppers. My wife and I, like many couples, enjoy browsing through home furnishing stores even when we have no intention of buying anything. It’s just fun to look and get a vicarious taste of luxury. When we say we are just looking, we mean it. Many of your customers were likely browsers that decided to come back because they saw things that inspired them, and made them want to improve their lifestyles at home. 36
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But rare is the bird who will browse for an unneeded mattress. “Just looking?” I don’t think so. “Be back?” “We’ll leave the light on for you...NOT!” One of the most important concepts to understand is that the very same inspired, loyal furniture customer may likely buy a mattress from a competing retailer. The manufacturer I represented researched one of its biggest customers and discovered 40 percent of their case good buyers bought a mattress from another retailer within a day or two of their purchase. The fact is, consumers view the purpose of mattress shopping as replacing a worn-out, high-use, utilitarian item, much like tires. Fixing a problem. For them, it is a one-time purchase with bang for the buck as a primary determinant in their decision making. Hopefully your store is one of the names on their list. So, if you are in the mattress business, more than likely you have a good selection, competitive prices and a decent track record of customer service. In reality, most shoppers could very likely find several models on your floor they would be satisfied with. In this most competitive environment, you would not be in busi-
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ness otherwise. But like most, you probably have lots of room for improvement to reduce your “just looking”, “be-back” rate. The obvious reason shoppers leave without buying is that they are chasing an elusive best value, or seeking a phantom perfect mattress. Everybody knows that. I’ve written extensively on that topic.
Below the Radar But let’s consider a less obvious reason. Many “just lookers” saw or experienced something they didn’t like. The same goes for “be backers.” The reason it’s not so apparent is that few if any ever let you know. In fact, many don’t know themselves. It is often manifested as a negative feeling based on subliminal perceptions. Something just didn’t seem right. But too often the real reason is simply a failure of the retailer to cover the basics. Most often the culprits are an untidy store, worn or damaged floor models, incorrect or missing signage, unkempt or underprepared sales associates. As they say, the devil is in the details, so something as seemingly innocuous as too much cologne, or an upturned collar, loose threads on a mattress quilt or a cluttered floor can send shoppers packing. The cumulative effect of multiple issues is obviously the most damaging. Things just naturally go through a gradual incremental deterioration. Because you see the same setting every day, things your shoppers might notice can fly below your conscious radar.
Any Easy Fix The good news is that two things can fix most every issue. Becoming aware and forming good habits are the keys to success. A quick way to increase awareness is to imagine you are a shopper visiting your store for the first time. Seeing through that lens reveals much. Then try these suggestions: • Don’t wait until something needs cleaning or tidying. By then it’s often too late. • Create detailed checklists that cover everything from the parking lot to the bathroom. Use preventative rather than
reactive cleaning and maintenance practices. • In the mattress department, check every floor model and every sign every day. Make sure selling and point-of-purchase materials are neatly placed. A good rule of thumb is: A place for everything and everything in its place. • Rotate floor models at regularly scheduled intervals to keep them fresh and to help insure delivered models don’t feel different from worn demo models. • Sales associates must arrive to work early enough to be prepared for the first shopper. That includes a thorough check of attire and grooming. • Schedule daily meetings and reminders to make sure employees are up to date on important issues and are mentally and emotionally ready to serve. • Employees should have checklists to make sure they are prepared with pricing changes, promotions, stock levels and availability, delivery schedules, etc., as well as any pertinent information about competitors. • Sales associates must focus on each and every shopper with full confidence that they have the products, the service and the know how to satisfy their needs. Selling mattresses is challenging enough without the additional burden of having shoppers turned off by the lack of attention to details or preparedness. By paying attention to details, forming good habits and being prepared you can turn just-lookers and be-backers into satisfied customers. Gerry Morris has more than 20 years experience in the mattress industry. In partnership with the Furniture Training Co., Morris offers a premium online training course, “Sell More Mattresses with Gerry Morris.” To view the course, visit furnituretrainingcompany.com
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• This is how you do it.
How Liquid is Your Store?
Make sure you have the cash or resources to pay the bills. By David McMahon Do you believe having $1 million in operating cash available is an acceptable level to run the daily operations of a retail organization? The truth is you have no idea whether this is enough cash or not without knowing the debt obligations, the size of the business and its operating structure. Businesses have different sales volumes, operating expenses and debt levels. As a result, they require different degrees of liquidity to continue operations and remain solvent. To put it a different way, some businesses would be quite comfortable with $1 million in operating cash, some would be carrying too much cash and still others would very quickly find themselves out of business very soon. In my previous articles in this series, I’ve written about important performance measures including sales metrics, gross margin, operational indicators, net income and GMROI. Improving these metrics leads to increasing your liquidity or cash position. This column is about measuring your liquidity so you can determine the results of your various improvement actions. The amount of cash a business generates and the organization’s ability to cover its debt obligations allow its stakeholders to rate and improve its financial position. There are three liquidity measures I want to illustrate to help you measure and improve your business. Current Ratio is a measure of your ability to cover your short-
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term debt with cash and your assets that can be converted to cash in under a year. You can determine your store’s Current Ratio by adding your cash accounts, accounts receivable plus your inventory and dividing that amount by your accounts payable, salaries payable, taxes payable, customer deposits plus any portion of loans due under one year. Quick Ratio (also known as the Acid Test) is a measure of your ability to cover your short-term debt with cash and your most quickly convertible assets. Your store’s Quick Ratio can be determined by adding your cash accounts and accounts receivable and dividing that amount by the sum of your accounts payable, salaries payable, taxes payable, customer deposits and any portion of loans due within a year. Your store’s Cash Ratio measures your ability to cover your short-term debt with cash only. To determine your store’s Cash Ratio, take your cash accounts and divide that figure by the sum of your accounts payable, salaries payable, taxes payable, customer deposits and those portion of loans due within a year.
What does this mean? Take a look at our two companies in the chart on the next page. Suppose we have two companies. From a top-line point of view, Company A is more successful than Company B in generating sales dollars. Company A produces $500,000 more in sales
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PUTTING YOUR NUMBERS TO WORK Q: How can I use this information to improve my A:
business? Start with three steps: 1. Track these liquidity metrics. 2. Create a standard for your store by knowing where you currently are, where you came from and how others in the industry are performing. (See the NAHFA 2015 Retail Performance Report for industry data). 3. Decide where you want to go. Continually develop and improve on operating practices that can take you there.
Q: What if my store is upside down or, worse, verging on insolvency?
A: You need to find out why—and fast, then, take correct, quick, decisive and consistent actions. The ship can often be turned around with a good leader with a good team of advisors and producers.
than Company B. You will notice that the other performance results will differ after sales volume. So which company is really successful? Judging success is a matter of educated opinion. Company A produces 10 percent greater volume than Company B. This would be commendable on A’s part if both businesses had similar customer traffic, square footage and number of sales people. Company A continues to outperform B when looking at the first liquidity measure: Current Ratio. Company A can cover its current liabilities with its current assets 2.26 times, while B can cover them only 1.61 times. That is a pretty sizable difference. When looking at the next liquidity ratio, the Quick Ratio, both A and B, are identical. They both hold .56 more cash and Accounts Receivable than their respective current debt loads. Now, when looking at the final liquidity ratio, the Cash Ratio, Company B outpaces A. Company B carries .53 times more cold hard cash than its debt than B who only carries .28. The result is Company B has 100 percent more cash than Company A even though A has $500,000 more in sales dollars than Company B. Here are the primary reasons for the different results: Company B operates with less inventory as a percent of sales (20 percent versus 27 percent). They are more efficient with their merchandise practices. Company A has a higher dollar amount of accounts payable because of the greater inventory carried. Company B carries less accounts receivable and greater customer deposits on average. With this data only, from a perspective of under one year, Company B is the winner in my opinion.
Q: It is a bad thing to take a loan when we have decent cash flow to fund a project?
A: Not necessarily. Interest on loans are tax deductible. Depending on current debt loads, taking a loan to build infrastructure may be a better choice.
Q: Why would my store having too much cash be considered unproductive?
A: I do see companies with an overweight of cash.
Cash does not appreciate unless invested due to little interest and inflation. Investing funds into business development projects, expansion, market securities, or other appreciating assets, once a healthy operating cash position is achieved, can prove to be fruitful.
David McMahon is an industry business consultant and certified management accountant. He is director of consulting and performance groups for PROFITsystems, a HighJump Product. He can be reached for questions or comments at david.mcmahon@ highjump.com.
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BENEFITFOCUS
Your customers worry about loss of personal data You should worry about business fallout. SAFE AND SECURE Members have access to Payment
D
Card Industry-compliant equipment that helps protect your customers' personal data during a transaction.
By Kaprice Crawford
on’t let those credit card security breaches at big businesses such as Target and Home Depot lead you to believe your small store is safe. Criminals have always had their sights on small merchants because many have lax security for cardholder data. In fact, while the big breaches often grab our attention, the fact is more than 70 percent of attacks zero in on small retailers. If you are at fault for a security breach, business fallout can be severe: • Fines and penalties • Termination of ability to accept payment cards • Lost confidence, so customers go to other merchants • Lost sales • Cost of reissuing new payment cards • Legal costs, settlements and judgments • Fraud losses • Higher subsequent costs of compliance • Going out of business
What can you do? First, talk to your bank and technology providers today to make sure they are following the Payment Card Industry Data Security Standards (PCI DSS) and that you have the proper security safeguards in place to protect your customers’ payment information and your business. For more information on the PCI DSS and other resources for payment security, visit the PCI Security Standards Council website, Pcisecuritystandsards.org. Rest assured, if you participate in NAHFA’s bankcard processing programs, you are covered. The equipment the association supplies you with is PCI compliant and updated regularly for you and your customers’ protection. Plus, you have access to terminals that are EMV-chip encrypted and Apple Pay compatible. Of course, if you want to know more about the NAHFA bankcard processing program please don’t hesitate to contact me. Kaprice Crawford is NAHFA’s membership director. If you have any questions about your NAHFA membership or are interested in learning more about the association, she can be reached at 800.422.3778 or kcrawford@nahfa.org.
What data thieves want The object of desire is cardholder data. By obtaining the Primary Account Number (PAN) and sensitive authentication data, a thief can impersonate the cardholder, use the card, and steal the cardholder’s identity. Some retailers are under the false belief that there are only a few ways sensitive cardholder data can be stolen In fact, data can be stolen from many places: • Compromised card reader • Paper stored in a filing cabinet • Data in a payment system database • Hidden camera recording entry of authentication data • Secret tap into your store’s wireless or wired network
Protecting yourself Did you know that “password” is still one of the most common passwords used by businesses today? Using a stored password is key in securing access to computers and your point-of-sale environment. Not changing passwords on a regular basis is like leaving your store’s cash register open—and it’s one of the easiest ways for criminals to sneak into your system and access valuable customer payment information. 40
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What is PCI Compliance? Payment Card Industry (PCI) security standards are minimum requirements for protecting your customers’ payment card information. Adopted by Visa, MasterCard, American Express, Discover Card, and JCP, PCI compliance is required for all merchants that store, transmit, or process payment card information. It’s been estimated that 70 percent of all data breaches are on small businesses and that more than 40 percent of customers who have been victims of fraud stop doing business with the merchant where the fraud occurred. Sixty percent of small businesses breached close within six months.
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NEXTGENPROFILE
Six Answers with Corey Faust
Corey Faust
O
Owner, The Furniture House Carrollton, Ga.
Selling furniture was the last thing I thought I’d ever be doing after college. When I was going to school (University of West Georgia), I needed money and a friend told me about this store. I was hired on the spot to make deliveries. After about three and a half years, I asked the owner (Scottie Jennings) if she would hire me to work out front in sales. Eventually I painted the vision for her that I could help her retire by buying the store from her and that’s what happened.
You can look at the numbers and I did. I showed them to Leah, my wife, and we were both a little nervous, maybe even a lot nervous because we knew we had a baby coming. But eventually it comes down to you have to be a little crazy to make the jump. I guess I was just crazy enough to buy a furniture store.
I signed the deal to buy the store on a Tuesday in February and Ana Claire was born on Friday. I was back at work Sunday night. A baby changes everything. They make you work harder and value your time a lot more. I used to waste a lot of time in the store talking to the other workers, but I don’t have time for that anymore. When I’m there I need to get things done because I know I’ve got two people at home who need me.
I can’t put a room together. I guess I just don’t have that vision to see things the way the customer does. But I can sell mattresses all day, every day. I can remember facts and if a customer has a question about one particular mattress, I can probably give them the answer off the top of my head.
No question it’s the people. I like the fashion and design part of it even though I’m not really good at it. I don’t have the warmest touch so I leave that to Leah. But I absolutely love the people side to it and getting to know folks and what their needs are and helping them find what they want. That’s the best part of this business. I get pulled a lot of different ways throughout the day, but I could meet and sell to folks all day. There’s just something about helping others find what they need that I like.
"A baby changes everything. They make you work harder and value your time a lot more."
College taught me how to memorize things. If I could make a business class it would be how to interact with people versus how to make a sale. If you first build that relationship the sale will come. The real world is all about relationships and making connections. A textbook can help you with sales and marketing, but it’s not going to teach you how to relate to someone when they walk through your doors. That one’s on you to learn.
Six Answers is a monthly profile of a Next Generation Now member. Next Gen Now is an NAHFA-hosted community of young industry professionals whose mission is to give voice to the needs and goals of the industry’s next wave of leaders. Connect with members at nextgenerationnow.net or Twitter @ngnow. 42
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SponsorTh
Our Association gratefully recognizes all of our sponsors whose dedication and commitment have strengthened our industry. Signature Sponsor
Premier Sponsor
Coaster Company of America Furniture Today North American Retail Service Corp Titanium Sponsors Ashley Furniture Industries Emerald Home Furnishings FurnitureDealer.net Furniture Wizard MicroD, Inc. Myriad Software Nourison STORIS Synchrony Financial
Platinum Sponsors ACA Advertising Concepts of America • Best Buy for Business • DataMentors • Diakon Logistics Furniture of America • High Point Market Authority • Leggett & Platt • Mail America Northwest Furniture Express • Profitability Consulting Group • PROFITsystems, Inc. R & A Marketing • Simmons USA
Gold/Silver Sponsors Jaipur • Phoenix A.M.D. • Horich Hector Lebow Advertising • Restonic Mattress Corp Steve Silver Co. • Why Not Lease It
Bronze Sponsors BrandSource AVB • Ekornes • Moso Graphics • Wahlquist Management
To become an industry sponsor contact:
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North American Home Furnishings Association 800.422.3778 or email: cwilliams@nahfa.org RetailerNOWmag.com
JULY | 2015 *List as of May 6, 2015
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CONNECTIUT DEBUTS FIRST MATTRESS RECYCLING EFFORT With California and Rhode Island to Follow in 2016, Here’s What Retailers Need to Know Now By Amanda Wall
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onnecticut rolled out the nation’s first statewide recycling program for used mattresses and box springs. Known as Bye Bye Mattress, the program is administered by the Mattress Recycling Council, a nonprofit organization created by the mattress industry to develop and manage the state’s mattress recycling program mandated by law in 2013. Connecticut’s Department of Energy and Environmental Protection (DEEP), city leaders and representatives from the solid waste and recycling industry gathered at the City of Hartford’s Bulky Waste & Recycling Center to commemorate the inaugural truckload of mattresses bound for the recycling facility. Similar programs will be implemented in California and Rhode Island in 2016. As these new Bye Bye Mattress programs roll out, retailers have been wondering what it means for them, what to say to their customers and how they can benefit. Here are some common questions and concerns we’ve been addressing since our Connecticut launch. What do these new recycling laws mean for retailers? Each state’s program is funded by a recycling fee that’s collected from consumers when a new mattress or box spring is sold. In Connecticut that fee is $9 for each piece so a mattress and box spring—regardless of size—costs $18. The fee is largely based on what transportation and recycling costs are for each state and the MRC proposes the fee in its plan; fees for other states may vary. Retailers are required to collect this fee and list it visibly on every customer receipt. Each month, retailers must remit the collected fees and report to the Mattress Recycling Council via the online, secure portal at Mrcreporting.org. Retailers now have access to no-cost
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recycling services for the mattresses they collect from their customers. How do I use mrcreporting.org? In the resources area of the website you can find guidelines as well as a video series that explains the registration, reporting and fee remittance processes. Assistance is also provided via 1-888-6466815 or support@mattressrecyclingcouncil.org. What is MRC doing to make the public aware of Bye Bye Mattress? MRC created Byebyemattress. com as the consumer-facing brand of the program. Outside of retailer-customer communications, MRC will advertise online and place public service announcements in print, radio and outdoor media. We are also working with our municipal collection sites to be present at local events so we can communicate our message to their residents. What does MRC do with the recycling fees it collects from retailers? The collected fees fund the recycling of the mattresses and box springs collected by retailers, solid waste facilities, hotels, universities, hospitals and other sources. MRC will provide no-cost recycling services for retailers regardless of their business’ size in states that have recycling legislation on the books. How are the mattresses and box springs recycled? More than 80 percent of a used mattress’ components can be recycled—the metal springs, foam, wood and fibers—and made into new useful products. I want to use MRC to recycle my store’s mattresses. How do I start? If your store
is located in California, Connecticut, or Rhode Island, contact MRC at 1-855-2291691 or info@mattressrecyclingcouncil. org and be ready to discuss your discarded mattress volumes and logistical needs. I’m not in a state with a mattress recycling law, but I want to recycle my mattresses. Can MRC still help me? Yes. As a public service, MRC has compiled a summary of mattress recyclers operating in the United States and Canada. This listing is available at Mattressrecyclingcouncil.org. MRC has no financial or other interest in any of the businesses located in these nonprogram states and does not endorse them in any manner. These locations will charge for recycling services. Amanda Wall is marketing and communications coordinator for the Mattress Recycling Council and can be reached at awall@ mattressrecyclingcouncil.org
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OFNOTE Gallery Furniture Sponsors Walk Aiding OCD Research A recent fund-raising walk sponsored by NAHFA member Gallery Furniture helped raised more than $10,000 to support research into Obsessive Compulsive Disorder. More than 150 walkers showed up at Gallery Furniture on June 6 for the 1 Million Steps for OCD Walk, which was the inspiration of Elizabeth McIngvale, who was diagnosed with OCD at the age of 12. Elizabeth is the daughter of Gallery Furniture owner Jim McIngvale. “This is something that is very close to my dad’s heart,” Elizabeth says. “When we were talking about what I wanted to do, it became very obvious that the furniture store was the perfect location for the walk.” Walkers met outside the Houston store and walked the perimeter of Gallery’s parking lot—about a half-mile. Afterwards walkers were invited into the store for brunch. Obsessive Compulsive Disorder, as defined by the National Institute for Mental Health, is
FAMILY MATTERS Gallery Furniture’s 1 Million Steps for OCD Walk raised more than $10,000 to help fight the disorder. Among the 150 walkers who participated were, back row from left to right, Ashley Rule, Ashley Danielson, Shelby Thomas, Linda McIngvale and Liz McIngvale. Front row, Sydney and James McIngvale. an anxiety disorder characterized by recurrent, unwanted thoughts (obsessions) and/or repetitive behaviors (compulsions). It is estimated that between 2 and 3 million adults in the United States have OCD.
“For having only three weeks to put this together, we created something wonderful,” Elizabeth says. “We’re really making a difference with OCD and events like these. Next year will be even better.”
AHFA Launching October Manufacturing Jobs Initiative The Solutions Partner division of the American Home Furnishings Alliance will launch an industry-wide jobs initiative this fall through its volunteer task force. The campaign to fill immediate skilled labor positions, and to encourage young people to consider careers in furniture manufacturing, is scheduled to begin October 2, which is a nationwide Manufacturing Day sponsored by the Manufacturing Institute of the National Association of Manufacturers. “Manufacturing Day was created to address common misperceptions about manufacturing and to educate the public about the rewarding careers that U.S. manufacturing offers,” explains Dwayne Welch, executive vice president and chief sales and marketing officer for HSM, a North Carolina company that helps furniture and bedding manufactur-
ers. “That made it an ideal launch pad for our home furnishings industry initiative.” Welch heads the task force that will oversee the jobs initiative, of which the first objective will be creating a furniture industry jobs website. “Within the home furnishings industry there is a significant shortage of skilled labor that is only projected to grow over the next decade as thousands of experienced workers reach retirement,” Welch says. “It’s our goal to connect qualified workers with the hundreds of jobs available today through this online initiative.” The online jobs center will also inform and inspire students as they are planning their future. This type of outreach is necessary if the home furnishings industry is to regain its public image as a reliable employer, Welch says.
Emerald Announces First U.S. Manufacturing Plant NAHFA member Emerald Home Furnishings will open its first upholstery manufacturing plant in the United States, a $2 million investment that company officials expect to create 150 jobs. The facility will be located in New Albany, Miss. Emerald Home Furnishings is a full-line supplier to home furnishing retailers through
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out the U.S. and Canada as well as other countries. Founded in 1962, the company’s product lineup includes fabric and leather upholstery, motion furniture, casual and formal dining room furniture, bedroom suites, occasional tables, as well as entertainment, home office, accent chairs and mattresses. RetailerNOWmag.com
Inland Empire Furniture Dealers’ Golf Tournament Circling Raven Golf Club Worley, Idaho August 19 The Inland Empire Furniture Dealers’ Golf Tournament is a great excuse to get out of the office and meet other home furnishings retailers on the golf course.
11th Annual Pilgrim Furniture City Golf Tournament Lake of Isles North Stonington, Conn. September 29 A longstanding tradition, the annual Pilgrim Furniture City Golf Tournament is New England's premiere golf outing for the home furnishings industry.
Got an item for Of Note? Send your information and hi-res photos to Robert Bell, Robert@RetailerNowmag.com. JULY | 2015
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INDUSTRYCALENDAR Summer Las Vegas Market August 2-6 Las Vegas, Nev. lasvegasmarket.com
Inland Empire Furniture Dealers Golf Tournament
Casual Market Chicago September 16-19 Chicago, Ill. casualmarket.com
October 17-22 High Point, N.C. highpointmarket.org
11th Annual Pilgrim City Golf Tournament
August 19 Worley, Idaho nahfa.org
September 29 North Stonington, Conn. nahfa.org
Tupelo Fall Furniture Market
AHFA Solution Partners Education Golf Tournament
August 20-23 Tupelo, Miss. tupelofurnituremarket.com
Midwest Furniture Show September 2-3 Arlington Heights, Ill. midwestfurnitureshow.com
Fall High Point Market
Showtime
December 6-9 High Point, N.C. showtime-market.com
September 30 Hickory, N.C. ahfa.us
AHFA Solution Partners Regulatory Summit October 1 Hickory, N.C. ahfa.us
Las Vegas Market runs from August 2-6
NAHFA-hosted regional events are highlighted in red.
ADINDEX Furniture Wizard (619) 869-7200 furniturewizard.com furniturewizard @furniturewiz Page 3
Lynch Sales (616) 458-6662 lynchsales.com lynchsales @lynchsales Page 37
ProfitSystems (800) 888-5565 profitsystems.com PROFITsystems @PROFITsystems Page 27
High Point Market (336) 869-1000 highpointmarket.org http://tinyurl.com/ HighPtMarket @hpmarketnews Page 7
NAHFA Sponsors (800) 422-3778 retailerNOWmag.com retailernow @retailerNow Page 43
STORIS (888) 4-STORIS storis.com STORIS.solutions @STORIS Page 31
Northwest Furniture Xpress (828) 475-6377 nwfxpress.com Page 23
Simple Finance gosimplefinance.com simplerto @simplerto Page 35
Las Vegas Market (888) 962-7469 lasvegasmarket.com las vegas market @worldmarketctr Page 5
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Surya (877) 275-7847 surya.com SuryaSocial @SuryaSocial Inside Cover
For information on how to advertise in RetailerNow, contact Michelle Nygaard at (916) 757-1160.
RetailerNOWmag.com
6/17/2015 12:26:14 PM
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New Take on Dusting Furniture Design student Matilda Beckman used dust as the base ingredient for her eco-friendly furniture. The horizontal elements are made from the dustbased material and the vertical supports are an engineered colored wood.
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Source: Core77.com, Woodworkingnetwork.com , Matildabeckman.com, American Gaming Association, Federal Communications Commission
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THE WAY WE WERE
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our parking lot, have one of his employees take a picture of the blaze and send the photo to the factory. I’m not sure how effective it was, but it made for good stories around our dining room table. Del-Teet has been fortunate to weather wars, recessions and changing tastes in design for more than 86 years. We’ve done so by listening to our customers and understanding that everything we do starts with the customer. We look forward to many more years of listening.
ho knew that when Dr. Richard Delaney and sheep herder Cyrus Teeter decided to open a furniture store in 1908, Del-Teet would be such a success? The original Del-Teet opened in 1908 in Denver. By 1929, a second store, the photo above, was built by Cyrus, my grandfather, on Seattle’s Capitol Hill. Cyrus, the fellow on the left, was quite a character. When he received defective furniture that the manufacturer would not warranty, he would light it on fire in
Polly Teet, third-generation owner of Del-Teet Furniture, Belleview, Wash.
Share your old photograph and memory by contacting Robert Bell at 916.757.1169 or Robert@RetailerNOWmag.com
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MORE Programs – MORE Benefits – MORE Savings
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What are you really paying for merchant card processing? Put your membership to work and receive a free, no-obligation statement analysis that shows exactly how much you are paying for your current processing. This analysis will uncover any hidden fees and costs that interfere with your potential profits. These savings can more than pay for your membership!
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The North American Home Furnishings Association is committed to helping you Sell More, Make More and Keep More
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Vol. 4 Issue 6 Rich Web Content JULY Issue
GROW NOW
You’re passionate about growing your business. Guess what? So are we.
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RetailerNOW is the only association publication dedicated to helping retailers like you grow and prosper. Each month we bring you expert analysis, industry insight and interesting stories to help you succeed. Subscribe now. Visit Retailernowmag.com.
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