April/May 2009 Western Reporter by Western Retailer Magazine

advertising & marketing

Journal of the Western Home Furnishings association

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www.WHFA.org

ChaNGE SERVICE REQUESTED western home furnishings association 500 Giuseppe Court, #6 Roseville, Ca 95678 est.1944

April/May 2009

Journal of the Western Home Furnishings association

westernreporter

EDITORIAL STAFF MANAGING EDITOR: Melissa Dressler ............................... mdressler@whfa.org PUBLISHER: Melissa Robinson ........................................... mrobinson@whfa.org

table of contents featured articles

ADVERTISING MANAGER: Cindi Williams.............................cwilliams@whfa.org 2009 WHFA OFFICERS AND EXECUTIVE COMMITTEE

Turning the Recession into a Marketing Opportunity . . . . . . 12

WHFA PRESIDENT Marty Cramer - Cramer’s Home Furnishings, Ellensburg, WA ..........(509) 933-2172 PRESIDENT ELECT Claudia LeClair - Fiesta Home Furnishings, Scottsdale, AZ..............(480) 951-3239

Bring in Repeat Business with Your Customer Open-to-Buy List . . 15

VICE PRESIDENT Angel Lopez - Dearden’s, Los Angeles, CA.......................................(213) 362-9600 TREASURER Chris Sanders - Everton Mattress Factory, Inc., Twin Falls, ID .........(208) 326-3407

Is there Opportunity in a Recession? . . . . . . . . . . . . . . . . 18

SECRETARY Valerie Watters - Valerie’s Furniture and Accents, Cave Creek, AZ...(480) 483-3327 EXECUTIVE COMMITTEE CHAIR Keith Koplan - Koplan’s Furniture, Vancouver, WA............................(360) 695-3388 PAST PRESIDENTS

Las Vegas Market Wrap Up . . . . 22

George Nader - Nader’s La Popular, Gardena, CA ...........................(310) 327-8585 Cherie Rose - The Rose Collection, Los Gatos, CA..........................(408) 395-7773

Events Made Easy . . . . . . . . . . . . 24

EXECUTIVE DIRECTOR Sharron Bradley - WHFA, Roseville, CA............................................(916) 784-7677

Understanding the Power of the Mobile Web . . . . . . . . . . . 28

AT LARGE EXECUTIVE COMMITTEE MEMBERS Gary Absalonson - Walker’s Furniture Inc., Spokane, WA.................(509) 533-5500 Howard Haimsohn - Lawrance Contemporary, San Diego, CA ......... (619) 291-1911 Marvin Kerby - Kerby’s Furniture, Mesa, AZ ......................................(480) 834-3888 Lael Thompson - Broyhill Home Collections, Aurora, CO ..................(303) 360-9653 WHFA/NHFA LIAISON David Harkness - Harkness Furniture, Tacoma, WA..........................(253) 473-1234 WHFA BOARD MEMBERS Gene DeMeerleer - Furniture West, LaGrande, OR ..........................(541) 963-5440 Patti Evans - Consignment Plus, Walnut Creek, CA..........................(925) 927-6600

in every issue

Greg Follett - Follett’s Furniture, Lewiston, ID ...................................(208) 743-0177 Eric Foucrier - Linder’s Furniture Mart, Garden Grove, CA ...............(714) 210-4848 Giff Gates - Gates Furniture, Grants Pass, OR .................................(541) 476-4627

Industry Beat . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Eric Harms - Black’s Home Furnishings, Yreka, CA ..........................(530) 842-3876 Ron Hoesterey - Royal Mattress Company, Inc., Orange, CA...........(800) 987-6925

Board Member Q&A with Valerie Watters . . . . 8

Jerome James - Hafer’s Home Furnishings, Manteca, CA................(209) 823-2122

Retailer Notes: Creating In-store Traffic . . . . . 10

Julian Jeppe - Reeds Furniture, Agoura Hills, CA .............................(818) 597-7800 Doug Kays - Premiere Home Furnishings, Los Angeles, CA............. (310) 268-0811

Member Profile with Muebleria Del Sol, Phoenix, AZ . . . . . 16

Chuck Kill - Bedmart, Tucson, AZ ......................................................(520) 887-7039 Tim Koerner - Koerner Furniture, Coeur D’Alene, ID.........................(208) 666-1525 Karen Kohlman - West Harvard Furniture, Roseburg. OR ................(541) 673-4221

Program of the Month: Retail Radio . . . . . . . . 21

Don Lemieux - Naturwood, Rancho Cordova, CA .............................(916) 638-2424 Jeff Lindsley - Lindsley’s Home Furnishings, Grangeville, ID ............(208) 983-1040 Sandy Lundgren - Ideal Home Furnishings, Olympia, WA ................(360) 790-3955 Robert Myers - Ashley Furniture HomeStore, Chico, CA...................(530) 345-2616

contact

Mark Navarra - Jerome’s, San Diego, CA..........................................(858) 753-1549 Michael Nermon - Ergo Customized Comfort, Irvine, CA ..................(949) 833-0338 Scott Selden - Selden’s - Tacoma, WA ..............................................(253) 922-5700 Sally Servidio - Silverado Home & Design, Napa, CA .......................(707) 251-0888 Mike Shuel - Meredith Furniture, Yakima, WA ...................................(509) 452-6221 Tom Slater - Slater’s Home Furnishings, Modesto, CA .....................(209) 522-9097 Pam Wright - Davis Furniture, Wenatchee, WA................................. (509) 662-4511

WESTERN HOME FURNISHINGS ASSOCIATION STAFF Executive Director: Sharron Bradley ...............................................(916) 960-0345 Asst. Exec./Marketing Director: Kaprice Crawford.........................(916) 960-0346

est.1944

Phone: (800) 422-3778 (12 western states) (916) 784-7677 Online: www.WHFA.org Fax:

(916) 784-7697

Mail:

500 Giuseppe Court, Suite 6 Roseville, CA 95678

Business Manager: Janice Carlson .................................................(916) 960-0347 Events Manager: Cindi Williams ......................................................(916) 960-0277 Operations/Warehouse Manager: Jef Spencer ..............................(916) 960-0386 Communications Planning Manager: Melissa Robinson ...............(916) 960-0349

Western Home Furnishings Association is the western affiliate of National Home Furnishings Association

Managing Editor & Webmaster: Melissa Dressler ..........................(916) 960-0385 Membership Manager: Michael Hill .................................................(916) 960-0263 Member Services Specialist: Margie Jacobs..................................(916) 960-0199 Member Services Rep: Adam Gardner ...........................................(916) 960-0291 Accounting Assistant: Melody King ................................................(916) 960-2476

Contact WHFa at www.WHFa.org or (800) 422-3778.

westernreporter

april/may 2009

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president’s message It seems there are as many different philosophies on advertising and marketing as there are people. In one way or another, I have been involved in advertising most of my life. For years I considered advertising and marketing to be basically the same thing. Then some years ago, for my own sanity I decided that advertising was trying to entice people to buy a particular product and marketing was trying to get them to buy the product from our stores. That decision alone has helped me to become a more organized marketer. Now I make sure I spend some of my budget “branding” our stores. I think one of the most important lessons I have learned over the years came from a dinner I attended at the WHFA conference at the Wild Horse resort in Chandler, AZ. By chance, I was sitting next to an advertising agency owner. We were talking about all the different aspects of advertising. I asked him what he thought the biggest mistake most of us make. His response was quick and to the point, “Most advertisers have no idea of the results of their efforts.” He asked me about the last campaign I put together. How did we do? I said we had a good month up from the previous year (this was sometime ago), but that was really all the specific information I had. This was exactly what he was talking about. He went on during the dinner to talk with me about how to evaluate our advertising and marketing efforts. As a result of this dinner, I can now tell you exactly how we did on each campaign. We tally the sales of every item in the ad for the duration of the campaign. How many we sold, when they sold, was the focus print, TV or radio and the traffic numbers generated. We have created a tally sheet where we record all the numbers. At the end of the campaign, we look it over, make notes on it and file it by the month and year. I will give an example of how this has helped us to refine our advertising. Three years ago we took an aggressive position on the Oscars broadcast. We spent 20 percent of our monthly budget in one night. The results were excellent. The following week was strong for traffic and sales, but we did not sell much of the advertised product, still a very successful campaign for us. The following year when we reviewed the tally sheet, we decided to change our focus. Instead of purchasing the traditional 30-second spots, we bought a sponsorship package. These were five to seven second mentions: Cramer’s Home Furnishings are bringing the Oscars to you. We were able to have our name mentioned during the broadcast 16 times instead of two or three for just over half the money spent the previous year. The following week was one of our best ever in March. This year we spent more money and were mentioned 20 times. I am excited to see what happens. Not all of the things we try work as well as this did. As much as we spend and all the efforts we put into marketing, the results are all that matter. The more information you have the better job you will do next time. I don’t even know the name of the person I had dinner with that evening in Chandler, but I can tell you that it was one of the most valuable conversations I have ever had. It is this type of thing that makes our association and the conference in particular so valuable. I don’t know what it would cost if I hired that person as a consultant, but I am certain it would be more than I spent attending the WHFA conference. If you have never been to conference, spend a little to make a lot. If you have been to conference, then I am sure I will see you in Maui this May. Aloha, Marty Cramer

Marty Cramer 2009 WHFA president Cramer’s Home Furnishings Ellensburg, WA marty@cramershomefurnishings.com

ON THE COVER Portofino by Brown Jordan. For more information, please visit www.brownjordan.com.

Contact WHFa at www.WHFa.org or (800) 422-3778.

westernreporter

april/may 2009

editor’s message Twitter-aholic Hi my name is Melissa, and I am a Twitter-aholic. I have a hard time writing in full sentences and want to constantly update my status only using 140 words or less — which makes my job as a writer a little difficult! I was initially reluctant about using this social media machine (I really don’t have time — I am already addicted to Facebook and use LinkedIn and I just cancelled my Myspace account to make more time for the others!) but decided to try it for the first time during the Winter Las Vegas Market. And now I am hooked. Granted, I do not tweet as much as other fellow Twitter-aholics, but I enjoy reading what others have posted and leaving an occasional tweet update (I have tweeted four times while writing this letter). I have also realized the sheer power of this site. I started to follow Jet Blue Airlines, and they quickly began following me and noticed their current tweet was a response to a customer who complained about being stuck on a tarmac in a Jet Blue airplane on her Twitter account. Within minutes, Jet Blue tweeted a response and informed her that weather was causing delays in the area and her plane would be taking off in 10 minutes. Talk about connecting with your customer! I have also come across numerous businesses that are using the site to inform customers about upcoming sales, answer customer product questions and much more. Now, I know many of you are thinking, “When am I going to have time to Twitter?!?” Many owners may not have the time — but your marketing, sales, office or customer service staff may. Ask for volunteers to help you create and maintain a Twitter account (and make sure there are a few set guidelines so that they do not Twitter about what they did last night). Begin following people, and they will start to follow you. Occasionally visit and see what people are talking about and join in. Also, don’t just limit yourself to one site — if you feel Twitter isn’t the right place to find your customers, try LinkedIn. If that doesn’t work, try another. There are hundreds of social networking sites out their available for you to use — you just need the manpower to use them. This issue of Western Reporter focuses on advertising and marketing and the importance of it during a slow economy. There are many great articles that will help you reassess your advertising, create in-store events and continue to understand the power of social media. Enjoy!

Melissa “Mel” Dressler Western Reporter managing editor MDressler@whfa.org

Fun Things to check out on Twitter TweetDeck - allows you to manage your account and tweet from your desktop TweetBeep - notifies you when someone tweets about your company TweetPics - upload photos from store events and sales

Follow Melissa on Twitter: @meldressler www.twitter.com/ meldressler Follow Western Reporter magazine on Twitter: @WesternReporter www.twitter.com/ WesternReporter WHFA 2009 Conference & Expo: @WHFAMaui09 www.twitter.com/ WHFAMaui09

Last month’s feature articles are available online at www.WHFA.org.

april/may 2009

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Contact WHFA at www.WHFA.org or (800) 422-3778.

MicroD has a basket full of them to boost sales, reduce costs and improve productivity. ePreVue - to stand out on-line and sell more custom furniture Easy Order - to streamline order entry and eliminate errors EasyPlan - to create room plans that help close sales EasySwatch â&#x20AC;&#x201C; to simplify tracking and updating fabric samples Exim â&#x20AC;&#x201C; to communicate electronically and economically via EDI

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in the

Retail Resource Center at High Point Market, April 25 - April 30th.

industry

beat

Gates Furniture Recognized for Safety Achievement Oregon OSHA welcomed Gates Furniture in Grants Pass last February as the latest employer in the Safety and Health Achievement Recognition Program (SHARP). SHARP provides an incentive for Oregon employers to work with their employees to find and correct hazards, develop and implement effective safety and health programs, and continuously improve. Currently, 62 employer locations in Oregon participate in SHARP, in addition to 83 facilities that have graduated from the program. Gates Furniture is a family-owned business that was established in 1946 by George and Lois Gates. With both a store and a warehouse, the company employs 33 people. They sell and deliver a variety of home furnishings and accessories.

Fort Collins La-Z-Boy recognized La-Z-Boy furniture CEO Kurt Darrow made a special visit to the Fort Collins, CO La-Z-Boy store in February to congratulate them on a successful year despite the current economic conditions.

board

Q What is your biggest challenge in furniture retailing? A Staying true to who I am and what I stand for. I usually never “discount” or wheel

member

Q&A

with Valerie

une onth t mber m y r e Eve oard M re into B o learn mo t Q&A your WHFA u o ab t members. board Valerie Watters Owner Valerie’s Furniture & Accents 6070 E. Cave Creek Rd. Cave Creek, AZ 85331 (480) 483-3327 vwatters@qwestoffice.net 8

april/may 2009

Sales at the Fort Collins’ La-Z-Boy store were up 10 percent in November and December and 24 percent in January at a time when few people are building new homes. During the recent President’s Day weekend, sales were up 30 percent from the year before. With 334 other stores in the chain, all with the same products and same advertising, Fort Collins ranks in the top four nationally. Owner Jason Johnston said the store is poised to grow this year even as housing permits plunge to a 17-year low and people aren’t furnishings new homes. With a good balance of well-made products without a high price tag, the success can be credited to Johnston’s staff of seven saleswomen who are the lifeblood of the store. “We focused on selling with confidence,” he said. “We were the one place in Northern Colorado where people could go and not hear how awful it was.” That resulted in double-digit growth that carried through the end of 2008 and into 2009.

and deal and rarely have a sale — the store is more specialty, custom order, higher end products. Consumers are looking for deals and maybe not spending if a sale is not in progress. This is VERY challenging! I need the revenue, cash flow and product movement but I don’t want to open a can of worms for the future. Q What cartoon character best describes your personality? A I’d bet my employees would say Tasmanian Devil, but I’d have to say Wile E. Coyote because I never give up! Q What do you value most in an employee? A Definitely loyalty — with loyalty comes the desire to be the best and aspire for success out of admiration. Q What’s your secret indulgence? A OK here’s my secret... About every three months or so I take a whole day and keep my pj’s on, turn off the phone, close the curtains and watch Doris Day movies! Q I earned my first paycheck: A Legally when I was 12 years old. In 1971, I made a whopping $1.60 an hour peeling potatoes and washing dishes at my hometown cafe. I would stare at the tips on the tables and think to myself, “Someday, I’m going to be a waitress!” Q What do you enjoy most about being a WHFA member? A Seeing my picture in the Western Reporter! Ha — seriously, the networking for sure. I love being a member and being on the board of directors — what a great group of people! I don’t feel so alone out here in the big, bad world of retail. I truly feel I could call ANY person with any question, anytime and get so much support and excellent advice. westernreporter

Contact WHFA at www.WHFA.org or (800) 422-3778.

It’s Never Too Late To . . . • Learn something new and powerful. • Exchange ideas and “a-ha” moments. • Upload information and download stress.

This is the year to learn, share and disco ver. See who is join ing us for a bizcation in Ma ui at www.WHFAconfe rence.com.

• See what is new in the industry. • Share your struggles and successes with people who get it. • Get away and work on the business not just in it. • Understand the value of renewal and rejuvenation.

It’s never too late to join us. www.WHFAconference.com Great airfares and great l room rates stil available.

est.1944

May 17-19, 2009 The Westin Maui Resort & Spa Maui, Hawaii

Western Home Furnishings Association • 800.422.3778 • www.WHFA.org

retailer

notes

These responses were provided by home furnishings retailers on the WHFA Discussion Forum. To post your own question or answer another retailer’s, visit www.WHFA.org, click on “Community” and then select “Join the Discussion.”

What have you done to create in-store traffic? Idea No.1

Idea No. 3

We’re having in-store functions. In February, we hosted a charity fundraiser and drew almost 300 people! (One attendee called today and said she wanted to support us because of that, and we’ll be doing work for her). In March, we’re hosting a Designer Seminar for the Susan G. Komen for the Cure of breast cancer, asking attendees to donate $15 or more for the cause. For April, we’re planning a Ladies Night Out, with our designers inviting their friends in for Pampered Chef and other Home Party companies, hoping to generate interest from people who don’t necessarily know about us. Then two times this year, we’re having a guest chef come in and teach classes. We’re also going to try to do a multi-store promotion encouraging customers to visit all our stores and register for a prize. We don’t sell a lot of small items any more, so I don’t know how many people will come see us, but we’ll donate a room makeover (design time) or something big.

As far as advertising, mailing postcards directly to our current customer database seems to have the best rate of return. We are located in a military town and there are a large number of troops coming in, so we are thinking about trying the local military newspaper for the first time.

Idea No. 2 If sales pick up, we will go back to television for more of a public awareness campaign to remind people we are here and hopefully get some new people in. We usually put all of our TV eggs in one basket to increase frequency. So we will pick one news time or one TV show and run three to five ads a week only on that particular show for about three to four months and then switch it to another show.

april/may 2009

westernreporter

Idea No. 4 Rearranging the showroom has helped in getting customers to think new shipments have come in and see furniture and accessories that have sat for a while in a new light just by simply rearranging the showroom layout.

Idea No. 5 I have found professionally printed “sandwich” signs (often with balloons) placed at the edge of the driveways to be the most effective way to immediately increase traffic. The signs say: Just Arrived...Showroom Samples (or Model Home Furniture, etc.) or SALE Today! Hurry in for Best Selection! Simple and inexpensive!

Idea No. 6 We have started a consistent direct mail postcard campaign that has been very effective so far. We had a printing company create one-sided postcards for us and then we print the backside with that month’s offer. We are in a secondary market and direct mail postcards seem to be the most effective. We use a 6x11 postcard for maximum effect.

Contact WHFA at www.WHFA.org or (800) 422-3778.

Employee Benefits Specialist

Medical Benefits Advertorial

What you need to know about the COBRA premium subsidy

he bulk of responsibility for compliance of Federal COBRA law was unnecessarily put on employers. COBRA is the continuation of employer sponsored medical, dental and vision coverage. Now, with the passage of the American Recovery and Reinvestment Act of 2009 (ARRA) that responsibility has been compounded. In an effort to assist the vast numbers of folks losing their jobs, and therefore their workplace coverage, Congress is requiring some employers to subsidize payments of their premiums. Instead of COBRA eligible employees paying 100% for their COBRA coverage, subject employers are required to front 65% of the COBRA premiums on behalf of “involuntarily terminated employees”. Not that you didn’t have a difficult enough time paying ever increasing premiums for actively employed, productive employees, now you may have to pay 65% of premiums for those you no longer employ.

Bob Aita Consultant & Broker Aita and Associates

Call me for additional information and guidance.

The following is a brief summary of a few key points of this legislation and its impact on employers: Who is affected: Employers with 20, or more employees, for 50% the prior work year. Employees who were/will be, involuntarily terminated by those employers after 9-1-08 and through 12-31-09, as well as their eligible dependents, whether they opted for COBRA coverage prior to 3-1-09 or not. How are eligible employees / dependents to be notified of this law: Employers are responsible for notifying all eligible employees and eligible dependents, in writing. Agents and brokers may provide this service on behalf of their clients, as we will. Note: Employers are not required to pay the subsidy if the eligible party does not pay their 35% of premiums. What about employers not subject to Federal COBRA: Employers subject to State mandated coverage continuation, as in California, are also subject to this legislation. However, for these employers the insurance carrier is required to pay the premium subsidy and provide the required notifications, not the employer (yes!).

707.829.8606 phone license# OE22529

How are these subsidies paid: As part of a company’s regular premium payments to their carrier. How are employers reimbursed for these payments: Affected employers can either subtract the amount of subsidized premiums from their federal payroll taxes or, as a credit on quarterly 941 filings. How long will this subsidy be required: Beginning 3-1-09 through 12-31-09, the maximum duration is 9 months from application by the employee/dependent or, until those affected are eligible for other group coverage, regardless of whether they accept the other coverage or not. Are the subsidies taxable income to the employee: Not unless an individual makes more than $125,000 or, more than $250,000 for those filing joint returns. Is this all I need to know about ARRA?: The purpose of this article is to alert you to this Act and to encourage you to seek qualified professional guidance regarding your responsibilities. Remember, the Devil is in the details.

888.829.8606 toll-free www.aitaandassociates.com

est.1944

feature article

Turning the Recession into a Marketing Opportunity

John R. Graham president Graham Communications

ith mounting layoffs, public pessimism and fear, and with more bad economic news by the day, who wouldn’t panic? The normal reaction is to hunker down and wait it out. That’s what we’ve done in the past –– and it worked. That was then and this is now. The dark tunnel is longer than in the past and the light is there somewhere but it’s difficult to see it. So, what do we do? We layoff workers or reduce their hours, cut benefits and pay and slash budgets –– including marketing. But not every company capitulates in the face of an economic storm. Take these, for example. Wal-Mart, Hewlett-Packard, Proctor & Gamble and Apple all have one quality in common: they are unrelenting marketers––and they lead the competition in their categories. In other words, they refuse to hunker down. Sure, they’re big but small businesses can learn from them. Here are principles that will help make sure your business makes it through the recession:

april/may 2009

westernreporter

Contact WHFA at www.WHFA.org or (800) 422-3778.

1. View your business as a marketing organization. Whatever else this recession may prove, it will dramatize the difference between companies that see themselves as marketing organizations and those that don’t. Two retailers make the point. One is a somewhat upscale men and women’s shop in Newport, RI, where the experienced owner takes a personal interest in serving his customers. Unfortunately, he does no marketing. Although there are appealing twice-a-year sales, they aren’t promoted. As might be expected, same month revenues have plummeted compared to previous years. Then, there is an upscale women’s clothing shop in tiny Hingham, MA. The owner, a marketingdriven retailer, constantly gathers contact information including email addresses from her customers and keeps them informed by email and direct mail. She didn’t just start when economic conditions changed. This shop is busy and doing business. One sells clothes and the other creates customers. In the same way, the owner of a regional business reported that sales for a group of peer operators in his industry were down 10 percent, his company was up 1.3 percent. That spread is no accident, since he maintains a consistent, effective marketing effort, year in and year out. Here’s the point: If you’re not creating customers, those who want to do business with you, you’re not going to make it.

2. Give customers a reason to buy from you. Based on the recent performance of the top officials of the three U.S. auto manufacturers, only one seems to receive public support. While the other two presidents whine, plead and threaten, Ford admitted to having issues, but put on a positive face. The company turned down a government loan and said it had significant plans to increase vehicle fuel efficiency and speed production of electric cars. Chrysler and GM have viewed Congress as their “customers,” while Ford looked beyond the hearings, recognizing they had an opportunity to communicate directly with the public. They know what their customers want, and they are prepared to deliver the right results. Ford stood out from the competition and gave consumers a reason to put a Ford in their future. This is exactly what customers are looking for from every business. Here’s the point: If customers don’t have a reason to buy from you that makes sense, they won’t.

3. Don’t try to outsmart customers. Last November’s “Black Friday” turned out to be “Bleak Friday.” Customers actually “raided” retailers,

Contact WHFA at www.WHFA.org or (800) 422-3778.

cleaning out the lowest priced merchandise and then went home –– not to return. The next day, Saturday, was a disaster, indicating that the big shopping was finished. Macy’s, the nation’s department store behemoth, flooded its customers with email and direct mail with all types of dollar-off cards and coupons. Its print and TV ads told the same story. Yet, the cards and coupons were fraught with so many exceptions, it was clear Macy’s was doing a con job on its customers. They sent a powerful message, “You can’t trust us. All we want is to get you in the door and maybe you’ll buy something.” In effect, Macy’s became irrelevant. Here’s the point: Don’t try to outsmart customers; it only drives them away and they won’t come back.

4. Think inside the box. Innovative thinking isn’t about something new and clever that has everyone saying, “Oh, yeah!” Sure, there are a few “wow” moments, but to spend time looking for them is to miss what’s right in front of us. When a San Diego high school calculus teacher had his supplies budget cut, he thought inside the box. With so many quizzes, he uses a lot of paper. To pay for producing his tests, he contacted businesses that might he be interested in a one-line sponsorship at the bottom of a test. He only needed about $300, but is on course to collect about $1,000, which he’s using to help colleagues with their supplies. Here’s the point: Inside the box thinking focuses on how to capitalize on what’s in front of us.

5. Build customer relationships. An interesting offer of a free report came from a well-known research firm. The subject, “Consumer Interests Drive Email Opens,” was of interest, so I filled out the email form and downloaded the document. In less than four hours, the phone rang. It was a telemarketer from the research firm. In that instant, the picture became clear. Before I even had time to read it, the report was simply a gimmick, a hook to sell something. A far more productive marketing strategy, for example, is The Wharton School’s “Knowledge@ Wharton” eBulletins that contain valuable information. On occasion, Wharton presents opportunities to purchase books and other materials, but they create so much credibility by sharing knowledge that there is no conflict with what they are selling. Whether business buyers or consumers, everyone wants to be treated with respect and that comes from being offered value. Everyone talks about building customer relationships, but few are serious about doing it. Here’s the point: Provide a flow of helpful information to your customers so they get the idea that you are a resource for them. westernreporter

april/may 2009

6. Have the right marketing message and stick with it. The most efficient way to kill marketing is to put it in the hands of salespeople. Their rightful interest is in the next sale, not in the next customer. Their job is to see the trees, while marketers see the forest filled with customers who can become prospects for the sales force. This is why companies with a sales mindset tend to falter and even fail in a recession: they run out of leads because they have never made a consistent effort to cultivate customers. Not so with Wal-Mart. Its fortunes are soaring, while its peer group is not doing nearly as well. WalMart sends customers a consistent, clear message, one that resonates with stressed, cash short consumers: Save money. Live better. In effect, this is the Wal-Mart customer commitment and it offers far more than just lower prices and a cash register receipt. Wal-Mart promises its customers what they really want when they spend their money: the possibility of a better life. That’s what Wal-Mart is selling. And behind its growth is a marketing strategy that attracts and holds customers. Here’s the point: Understand what the customer really wants and then make it your promise to them.

These six concepts lead to one conclusion: while most hunker down to ride out the storm, others see opportunity to build market share. Ironically, it’s so much easier to gain attention and make your case with customers while others sleep. When the storm inevitably passes, those that market will be ahead of the pack. What does all this mean? In a recent article, Jake Swearingen tells of a conversation with Dr. Gary Lilien of Penn State’s Smeal College of Business about marketing in a recession. Lilien’s study showed that those who do marketing have an advantage. He says, “Companies that have been looking at marketing as an investment, and not an expense, and have been running their business through customer knowledge are the ones that are going to come out of this [recession] really, really well.” Now you know how to beat the recession: turn it into a marketing advantage.

John R. Graham is president of Graham Communications, a marketing services and sales consulting firm. He writes for a variety of business publications and speaks on business, marketing and sales issues. Contact him at 40 Oval Road, Quincy, MA 02170; (617) 328-0069; jgraham@grahamcomm.com. The company’s website is www.grahamcomm.com.

15% off Protected Floors

est.1944

Tap-In Safeglides and Felt Floor Protectors

Keep your Floors Scratch Free and Save 15% Call today for details (800) 422-3778.

Safeglides are the only felt glides recommended by flooring manufacturer and installers. These Tap-In glides provide maximum protection against marring, scratching or denting wood, cushioned vinyl, tile and marble floors. The wool felt and plastic are skillfully and permanently bonded. They won’t rust or corrode like metal glides. They are quiet and glide easily and safely across smooth, clean surfaces. All glides are heavy duty. Available in three sizes to meet most needs, Safeglides install with no need for drilling. Simply install with the tap of a hammer into end grain. The very thin tubular rivet holds fast and prevents the furniture leg from splitting.

Western Home Furnishings Association Call Jef Spencer, WHFA warehouse manager, today to place an order. (916) 960-0386 • (800) 422-3778 • www.WHFA.org

april/may 2009

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Contact WHFA at www.WHFA.org or (800) 422-3778.

Bring in Repeat Business with Your Customer Open-to-Buy List S

he’s your best friend — The Repeat Customer. Repeat customers can generate up to 20 percent annual incremental growth for a retailer, according to Paul Lemberg, president of Quantum Growth Coaching. They buy a wider range of merchandise, shop more often, and it costs less to market to current customers than it does to source new customers. So, how do you entice her to return after the initial purchase? A planned current customer marketing program using open-to-buy data available through your in-store financing partner can be a strong contributor to your total advertising effort. The term “open-to-buy” refers to customers with credit available on a revolving account. Thus, a customer approved for $5,000 with an account balance of $2,000 has $3,000 available to spend on additional home furnishings on the same account. American General Financial Services provides both turn-key open-to-buy mailings and data files for merchants who prefer to process the mailings themselves or use other media. In addition to name, address and credit information, the files include the account opening date, date of first and last purchases and the primary account holder’s date of birth. The best marketing plans include a mix of “image” and “product/event” oriented messages. Here are a few ideas on how the information can be used. straight oﬀer — Thank your customer for past business and remind her of the dollar amount of credit available on her store account. sale or Promotion — Reward your customers with an early notice of a sale or promotional event. Consider advance sale hours or a day just for them and show their available credit so they know they are approved to purchase that day. Private sale — Position your letter or postcard as an “exclusive invitation” and ask customers to present it for admission. Birthdays and Holidays — Many consumers like to treat themselves on their birthday and a letter or card of congratulations from you could Contact WHFa at www.WHFa.org or (800) 422-3778.

be just the nudge she needs to visit your store. Holiday cards are another good way to stay in touch and build “top of mind” awareness. Many consumers appreciate receiving “friendship” messages along with commercial offerings. news — Use your list to announce new lines, store openings, additions to your sales staff or any newsworthy event. reactivation — American General Financial Services can identify customers with a low balance that are nearing pay-off, zero-balance accounts, customers who have not made a purchase for a specified time period, approved customers who did not activate their credit accounts and accounts that have been closed due to inactivity. Tell her that you value her business and want her back. People like to be appreciated. customer referrals — “Word of mouth” advertising is some of the best that you can get. Offer a reward to your customer when she refers a friend. (Check your local and state laws regarding customer giveaways and incentives.)

Gregory Thomas marketing manager American General Financial Services

Incentives Incentives often increase response to opento-buy offers. Consider offering a free gift just for visiting your store or free delivery with a minimum dollar purchase. Use dollar or percent discounts, and/or promotional financing such as “same as cash” or “deferred payment.” American General Financial Services offers its business partners limited design and production services for letters and postcards with no add-on charges beyond the actual cost of production and postage. The company provides open-to-buy lists on a monthly, quarterly or “as needed” basis to merchants who prefer to use their own design and mailing services or social media. Call your WHFA member representative today for more information on financing programs by American General Financial Services and their free open-to-buy offerings. Gregory Thomas, marketing manager with American General Financial Services. Greg can be reached at (812) 468-5638 or gthomas@agfinance.com.

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april/may 2009

member profile

Muebleria Del Sol Phoenix, AZ

Melissa Dressler Western Reporter managing editor

hen you walk into Muebleria Del Sol in Phoenix, AZ, you are immediately greeted by a warm, inviting atmosphere and familiar music. This family-operated business has been furnishing the homes of the local Hispanic community since 1997. Owned by Venancio and Rosa Macias, Muebleria Del Sol has six locations in the metropolitan Phoenix area and each of them is operated with a focus on family. Venancio and Rosa’s two children, Minerva and Alejandro, work in the business as well as many other cousins, nieces and nephews. Their customers are also treated as part of the family and often develop personal relationships with Muebleria Del Sol’s employees. “Often customers will come in and will ask to talk to ‘my friend Rosa,’” said Rosa. “We pay very close attention to our customers,” said Minerva. “I think our customer is very used to the feeling that our store is family. They know everyone here, and they feel comfortable in any situation. They are very loyal customers.” By developing personal relationships with their customers, Muebleria Del Sol has created a loyal following with three generations of families now shopping in the store. Muebleria Del Sol offers its customers a wide assortment of products, including furniture,

april/may 2009

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appliances and electronics. Minerva, who purchases the furniture, looks for pieces that are unique, even if it is from a familiar brand name. They also offer customers financing through their in-house program.

Dealing with Economic Uncertainty While the economy has made Muebleria Del Sol cut back in some areas of business, it has also made them think more creatively about their promotions. One promotion that has been quite successful is selling packages of furniture and electronics or appliances. “We are creating packages where customers can redo their entire living room and receive a free plasma TV,” Minerva said. “We have had pretty good success with the packages and started creating them for kitchens as well.” Muebleria Del Sol has also started promoting their store as Del Sol Furniture to non-Hispanic markets in the area. “We have started advertising as Del Sol Furniture in order to grab a little more market share.” This slight name change has been successful in bringing in new customers that might not have been familiar with their store.

Contact WHFA at www.WHFA.org or (800) 422-3778.

Advertising and Marketing Even though the economy is slow, Muebleria Del Sol has continued to see the importance in advertising. Minerva’s cousin, Jose Luis Gonzales, has been with the company since the beginning and develops all of the store’s advertising and marketing campaigns. The store works closely with the local Univision station for all promotions. Since the store sells electronics, their recent promotions have focused on the national digital TV conversion. Muebleria Del Sol has been working with Univision to educate their customers about the change and the possible need for DTV converters. Once a year, the store holds a weekend-long celebration for their annual sale. “After we close the store down, we have Back row (l-r) Jose Luis Gonzalez, marketing director, Minerva Maestas, furniture purchasing director, Alejandro Macias, electronics purchasing director the event until about 2 a.m.,” said Minerva. “During the Front row (l-r) Venancio Macias, president, Rosa Macias, vice president event we have music and food. We also give away gifts to our customers. We have a tent outside of the stores and it is a very large celebration.”

Working in the Local Community Since the local Hispanic community is such an important part of Muebleria Del Sol’s success, they feel that it is important to give back to it. The company partners with Univision and assists the station in feeding the homeless and remodeling homes for locals in need. They also sponsor a local woman’s group that dedicates itself to helping women in need. Recently, Muebleria Del Sol has offered the community educational seminars on current events, such as the economy and the digital TV transition. “We have done a lot of community service with schools and churches, especially with the new digital television conversion. We are trying to encourage the Hispanic community to get their boxes and understand the process because it can be very difficult for them to understand. We have also been holding seminars in our store for people who have lost their homes due to foreclosure. We have been trying to guide them to where they can receive help in Spanish.”

The Future With the successful growth of the company over the last 12 years, the thing that makes Rosa the happiest is, “I don’t have to deliver the furniture any more. In the beginning my husband and I would do the deliveries. Now that we have grown, I don’t do it and it is the best,” she said. In the near future, Rosa hopes to remain stable during this volatile economy. Once the economy stabilizes they would like to add more store locations. “We would like to open new businesses in New Mexico and Denver,” said Minerva. With new locations in the future and the constant strive to help their customers, Muebleria Del Sol is sure to be furnishing homes for generations to come. One thing is very apparent in this company, they all love coming to work, and Muebleria Del Sol’s customers can feel that love immediately when they walk through the doors. Contact WHFA at www.WHFA.org or (800) 422-3778.

At a Glance Store Location: Phoenix, AZ Type of Store: Full-line Year Founded: 1997 Number of Employees: 45 Number of Store Locations: 6 Annual Sales Volume: $9 million Website: www.muebleriadelsol.com Top Manufacturers: Samsung, Whirlpool, Serta, LG and Ashley WHFA Member Since: 2004

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april/may 2009

Is there Opportunity in a Recession?

S Douglas Knorr president Knorr Marketing

Hear Doug speak during WHFA’s 2009 Conference and Expo in Maui, HI, May 17 – 19, 2009. Visit www.WHFAconference.com for more details.

april/may 2009

ince last year, the American economy has been experiencing tough business conditions. The Dow index has ranged from a high of over 14,000 in October 2007 to under 7,000 as I write this article. News coverage about employee layoffs, housing foreclosures and plant closings continue to erode consumer confidence. In fact, Consumer Confidence Survey numbers keep setting new “low” records. The result? Even people that can afford new items are often postponing purchases. However, in the midst of this recession, you will find that you have the opportunity to grab market share by re-assessing your marketing strategies, negotiating lower media rates and producing stronger merchandising promotions with the help of your media vendors. Are you re-assessing your entire media plan? You should be. Are you beginning to recognize that today’s changing consumer must now be reached across multiple communication channels? When was the last time you priced outdoor (billboard or bus transit) advertising? Take note: outdoor is the “least cluttered” of all advertising mediums today. Have you seen how the flexibility of digital billboards can accommodate fast changes and support weekly sales promotions? Are you updating your website (you have one, don’t you?) at least every two weeks to talk about new promotions, new merchandise arrivals or new ideas people can use to decorate their home? Are you testing social media like Facebook, Linked-In or YouTube? With any of the advertising communication mediums you buy, are you conducting a post-buy analysis to ensure the viewers, listeners or readers you were promised were truly delivered? Although there isn’t enough space to explore all media in this article in detail, let’s at least take a closer look at what you may be doing with

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traditional broadcast (TV/radio) and newspapers. For example, are your TV buy TRPs high and your CPPs low in your DMA? Have you only been buying TV based on GRPs? If this acronym-talk is foreign to you or you haven’t analyzed your TV buy in such terms recently, you’ll find this article helpful. Knowing how to analyze media data is the only way to ensure that you are receiving the best return on your advertising investment. It could save you thousands of dollars.

Re-Assessing Broadcast Medium Buys Are you making an annual commitment with your TV and radio station buys? This negotiation strategy could be saving you at least 20 percent. In these difficult economic times we are even seeing savings up to 40 percent with an annual commitment. Are the television stations you’re buying offering you value-added offers based on your annual commitment? They should be. Ask about opportunities for free sponsorships, free station promotions, as well as extra free spot runs when available. With radio, are you requesting opportunities like free remotes or free spot placement during 7 p.m. – 6 a.m. or during light listening day-parts? When you look at consumer listening/viewing reports from Arbitron (radio) and Nielsen (TV), are you requesting at least three books (three quarters) to review? That is the best way to identify changes or trends in the market. With so many broadcast stations available via network, cable and satellite, are you reassessing whether it will be better to invest in more frequent, lower-cost spot time versus higher network rates? Are you asking your TV and radio sales reps to break down day-parts by gender and by age? Are you looking at every TV program or radio day-part in three age groups: 18–34, 25–54 and 35–64? Doing so will give you a better idea if the Contact WHFa at www.WHFa.org or (800) 422-3778.

Re-Assessing Newspaper Medium Buys Are you advertising in newspapers that sell subscriptions or newspapers that are distributed “free”? Remember, a subscription signals the newspaper is “invited” into the home. That’s a big advantage over the many free newspapers that you can only measure by distribution quantities. With the newspapers you buy, are you requesting distribution by zip code? This will enable you to analyze how well newspaper distribution penetrates your market. Second, are you looking closely at newspaper circulation to learn how many copies are actually being delivered to the home (subscribers) versus sitting on a rack or shelf (single copy sales)?

Re-Assessing PR Strategies Are you leveraging your investment in advertising to explore how the communication mediums you use could help build your brand and actually increase store traffic with public relations? Face it. The sheer number and sameness of many advertising claims (50 percent off the entire store!) are frequently not accepted by today’s skeptical consumer.

Contact WHFA at www.WHFA.org or (800) 422-3778.

In their book, The Fall of Advertising and The Rise of PR (HarperCollins Publishers, Inc. 2002), Al and Laura Ries convincingly argue that thirdparty editorial resources are necessary to validate the claims of advertising. Today’s savvy viewer, listener or reader understands that advertising space or time is “sold” and the advertiser controls the message. In other words, third-party credibility gained from your newsprint, magazines or broadcast exposure can help you stand out from your competitors, verify your value and support your advertising claims. A key advantage of PR is that it will also reach the potential customer who is not currently shopping for home furnishings.

“

Knowing how to analyze media data is the only way to ensure that you are receiving the best return on your advertising investment. It could save you thousands of dollars.

“

TV program or radio day-part is relevant to your targeted consumer. Are you just focusing on females 35–54? While that’s usually the primary target in the home furnishings industry, if you’re also selling TV electronics and appliances, are you looking at total adults as well as females by age group? Last time I looked, men often initiated the new widescreen TV purchase. When buying TV or radio, are you focusing on Targeted Rating Points? You should be. As you may know, a Target Rating Point (TRP) is 1 percent of the specifically targeted audience demographic, not the total audience, being reached by your advertisement at any one point in time. Once you know the TRP, you can derive your cost for your advertising per person or derive a cost per point. The TRP is measured as the ratio of total targeted viewers (say, females 35–54) divided by 1 percent of the entire audience universe for that particular program or day-part. Cost per point is your advertising cost/spot divided by the targeted rating point. So, the higher your TRP and the lower your CPP, the better the buy. Go deeper than gross rating points because GRPs refer to the overall exposure of your commercial. A GRP doesn’t distinguish the gender or age groups you may be targeting and generally won’t provide the data you need for your best advertising investment. In other words, beware of “cheap” spots. They may really be the most expensive investment you make.

Even if someone is not looking at retail circulars or paying attention to your advertising just yet, that same person might be quite interested in a local media story about interior designers that buy from you, hearing you discuss interior design trends or offering your perspective on the recent furniture market you attended. Yes, PR is much more than news releases. It should encompass making someone on your staff a media resource for comments about the home furnishings industry or retail in general. PR should also help you reach out to consumers with helpful seminars conducted in your store and sponsorships of popular events or causes.

Re-Assessing the Internet Finally, are you capitalizing on the Internet and email communications? They have taken center stage in today’s arsenal of communication tools. The Internet will enhance your sales opportunities 24/7 and, at the same time, build a stronger relationship with your customers. It can also save you money. After all, if you have captured someone’s email address, you can westernreporter

april/may 2009

email that person personalized offers (built around their purchase history), advance sale notices or seminar invitations. You incur no fees like traditional snail-mail lists, printing, and postage or mail fulfillment. Yet, your email communication is extremely targeted, personalized and convenient for your customer. We do not have time to elaborate on the Internet and email techniques further as we have come to the end of space in this article. However, understand that the Internet does not compete with your business; it can enhance every part of it.

The answer to the original question of this article is clear... Opportunity abounds in a recessionary time! If you are willing to plan your media allocation for the year you will save an extra 20 percent to 40 percent off media costs.

“

Understanding how to hold the media representatives accountable will assure that you are investing in those medias that are generating the greatest amount of viewers, listeners and readers for every dollar you invest. Finally, work hard at public relations and cause marketing (free advertising on page one instead of an ad on page five). And work with a firm that understands how to make your website really work for you; by creating content that draws prospective customers to your site and builds greater connectivity with your existing customers. Remember... During a recessionary time you have the opportunity to really gain market share over the competition which will benefit you for years to come. Here is to a successful 2009!

© Copyright 2009, Knorr Marketing. Douglas Knorr, known as a “retail marketing activist” is president of Knorr Marketing (www.knorrmarketing.com), a full-service marketing and advertising agency specializing in the home furnishings industry. The agency provides strategic planning, creative production, public relations, sales promotions, website development and media buying services. Headquartered in Traverse City, MI, the firm serves clients throughout the United States.

I have to say that if there was one word that would sum up why I am

networking. Where else can you pick the brains of some of the best people in the industry? People part of WHFA it would be

in the WHFA — from the staff, all the way to the newest members — always seem to offer some sort of input or suggestions that really

help in our day-to-day operations. And, the best place to really experience the networking is at the conference!

”

Throughout the year I use the ideas I picked up from just a few short days at conference.

Simplify Your Business Life 20

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Greg Follett, president, Follett’s Furniture WHFA Member Since 1987

est.1944

Western Home Furnishings Association 800.422.3778 • www.WHFA.org

Contact WHFa at www.WHFa.org or (800) 422-3778.

whfa program of the month In-Store Music and Messaging Program Create Your Own In-Store Radio Station In-Store Music Imagine your own radio station... Radio with the best music and power to make people smile. Radio passing your own created messages to your customers. A positive response from your radio station making your business grow!

Now, welcome to Retail Radio! Retail Radio delivers a blend of music and messages through your store’s sound system — it sounds just like your own radio station. It works by using the Internet Kaprice Crawford and their very own plug and play box. WHFA Did you know that over 80 percent of purchase decisions are made while marketing director customers are in your store? So having the choice to play your own audio messages lets you direct customers to your great deals and special offerings to maximize purchases. A professional audio system makes customers spend Program Highlights: more per item in your store because they feel more comfortable in a relaxing musical atmosphere. As • Holiday music and announcement updates. a reflection of your brand, you will have a great • Free insertion of up to two announcements a sounding store helping to ensure repeat visits. month if you have pre-recorded ads. • Use your own voice — no extra charge Let’s Get Started • Professionally programmed with daily updates. Retail Radio will perform a detailed music • Manufacturer invoicing if required analysis for your store’s target consumer and creates (co-op dollars used). a music format designed to enhance shoppers’ • 90-day trial guarantee. time inside your store. Once the music format is • 3 year contract. determined, Retail Radio goes to work creating in-store messages focused on highlighting your Program Details: store’s different services. Branding, sale products, upcoming events, charity affiliations and even job Custom designed music formats with your specific target recruiting can be included in your programming. in mind. With a Retail Radio created station, your • 10 custom commercial announcements produced business is able to talk to the shoppers at the at any length (10, 15, 30 or 60 seconds). point of purchase. It’s like having an additional employee conveying your message without having PLUS: to constantly remind them. • 3 new commercial announcements each quarter. Let WHFA and Retail Radio help you increase your sales, solidify your company image, and help you gain a competitive advantage in your marketplace. Call WHFA today at (800) 422-3778 through WHFA’s partner and receive a link to a free demo and you can listen to how it works.

Contact WHFA at www.WHFA.org or (800) 422-3778.

westernreporter

april/may 2009

WHFA Retailer Resource Center Traffic Up 50 Percent Over July Market

RRC RETAILER

RESOURCE CENTER

National Home Furnishings Association Western Home Furnishings Association

Buyers Find Value in Education, Business Services Tradeshow, Free Breakfast and More

Buyers took a few minutes out of their hectic market schedules to smile for the Western Reporter camera. 22

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uyers attending the Winter Las Vegas Market last February were looking to escape the doom and gloom economic headlines and optimistically look at the future. Numerous retailers could be heard sharing hopefully stories as they looked for new products that would energize their showrooms. The must-see stop for buyers during the Winter Market was the WHFA Retailer Resource Center in B-1630 and C-412. Offering retailers top-notch education, a business services tradeshow, a scrumptious buyers breakfast, free Internet stations, hot coffee and more, the RRC saw a 50 percent increase in traffic compared to the previous July Market. Thirty percent of the complementary educational seminars during the week exceeded the capacity of the RRC. Buyers continued to visit the space throughout the week to attend the relevant seminars in hopes to learn new business saving ideas. “This was my first visit to the RRC and after attending one seminar, I rearranged my schedule so I could attend more during the week,” said Ashley Brooks a designer from AZ. “The speakers and level of education are excellent. I am very particular when watching seminars, and the ones I have seen

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Contact WHFa at www.WHFa.org or (800) 422-3778.

in the RRC are some of the best. The RRC will be my first stop at Market from now on.” WHFA partnered with the World Market Center to create an education concierge in the lobby of Building B. The goal of the education concierge was to streamline education information, eliminate confusion and elevate the market attendee’s experience with world-class customer service. Another highlight for buyers during the week was the complimentary buyers’ breakfast, sponsored by Guardian Protection Products and Crypton, each morning from 7:30 – 9:00 a.m. The breakfast drew in large crowds of retailers with many of them returning each morning. “The Buyers’ Breakfast far exceeded our expectations,” said Eric Mawyer, VP of Training for Guardian Protection Products. “It allowed Guardian and Crypton to be in front of 125 people every morning and serve them the most important meal of the day. My favorite part of the breakfast was that we actually got behind the counter and served the buyers their breakfast — which put a smile on all of their faces.” The increased traffic in the Retailer Resource Center also pleased the 40 business service providers that were showing. Each day saw strong traffic with buyers looking for new tools to help them become more efficient and save money in their business. Complimentary Internet stations and complimentary coffee, sponsored by STORIS Management Systems, kept attendees wired throughout the week. Many retailers visited the space multiple times to check in on their store and grab a cup of coffee. The daily Power Hour allowed buyers to relax in the space and network with each other. Held daily from 4:00 – 5:00 p.m. retailers were able to enjoy wine and beer, small bites and great conversation. Attendees continue to see value in the Retailer Resource Center and enjoy it as a place to learn, meet new service providers, network with other retailers and take a little break from the hectic Market. The Retailer Resource Center will be open during the Fall Las Vegas Market, September 14-17, 2009.

Many companies held drawings and rafﬂed off some amazing prizes. Here are the winners: • First Class Airfare to Hawaii and Free WHFA Conference Registration – Sponsored by WHFA • Jennifer Miller, Brymons Home Furnishings, Atlantic, IA • Free Set of Luggage – Sponsored by Crypton and Guardian Protection Products • Anna Vu, Anna’s Home Furnishings, Lynwood, WA • David Pontius, The Furniture Store, Lake Isabella, CA • George Nader, Naders La Popular Furniture, Gardena, CA • Dean Elliot, Savvylux Furniture, Las Vegas, NV • VISIO 32” LCD HDTV – Sponsored by International Storage Systems, Inc. • Hector Padilla, Lacks Valley Stores, Pharr, TX

More photos from the Retailer Resource Center can be viewed at www.ﬂickr.com/photos/whfa. Contact WHFa at www.WHFa.org or (800) 422-3778.

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april/may 2009

Events

Made Easy

Mary Liz Curtin owner Leon & Lulu

raffic is down in most furniture stores (and every other kind of store) this season. Even with many promotions, sales and discounts, it is hard to make the numbers when there is nobody in the store. Marketing a store gets more and more difficult in tough times, so we have to give our customers a little more than they expectâ&#x20AC;Ś or perhaps a lot more, and special events of all kinds are a terrific way to make your store a destination. Events, seminars and fundraisers are excellent traffic generators and furniture stores are uniquely able to hold them. We have the space, we have chairs and sofas â&#x20AC;&#x201D; our stores are like homes just waiting for guests. Everybody loves a party, (except my husband, who absolutely hates most forms of merrymaking) and we especially love gatherings at our store because they are fun, lucrative and people go home at a reasonable hour. These events, large and small, have been the key to our success. When people come to a party in the store, and especially if there is a charity tie-in, they are just naturally disposed to like the business. The crowd adds a buzz to the shop, makes people want to buy things and, even better, sends them home ready to tell their friends what a great time they had and how terrific the shop is. When we talk about EVENTS many people think they have to call in the caterers, erect a tent and rent little golden chairs. Not so! An event can be a simple coffee, a little treat or just wine and cheese. The whole trick is to make your shoppers

april/may 2009

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feel special and treasured and to host a party that will work in your space. Many marketers and retail experts are extolling the virtues of in-store events these days, but some shop owners are still nervous about hosting parties and special events. They worry about damage, shoplifting and liability. With careful planning and a solid plan, you can allay these fears. We have had very few spills and only a few scratches on table tops, minor inconveniences when you consider the hundreds of people we have hosted â&#x20AC;&#x201D; as many as 350 in one evening.

Set Goals Why are you having this party? Are you hoping to attract new customers? Showcase new product? Raise money for a charity? Often, you are trying to build your brand and the actual sales may come later. Other events really bring in the cash (which is a good thing). If you know what you are trying to accomplish you are better able to judge the results. The primary goal with any event is making sure the guests have a great time. The money may come at the event, later, or, very occasionally, not at all, but the stories the partygoers tell their friends will be worth the effort.

Choose a Time and Date The right time is crucial for attendance, so consider your audience and their schedules as you plan. Some events are better after store hours, but many can be held while the store is open. Will it

Contact WHFA at www.WHFA.org or (800) 422-3778.

be private or open to the public? Be sure to leave enough time to promote the event and get the word out.

is impolite for us to be serving ourselves, after they eat we are selling things and too busy. If we have not eaten the longing looks and growling stomachs are bad for the ambiance.

Analyze Your Space

Invitations

Where will you serve the food and drinks? Try not to use the cash wrap for a buffet or bar if you will be selling things during the event, since that is a recipe for disaster. You may have to clear an area or bring in a table (or two) to make the refreshments accessible to the guests. The space you have will dictate the number of people you can accommodate and the type of food you can serve. You always want it to look glamorous and generous, and it can be done in a very small space.

How will you get the people to your party? The least expensive way to invite them is by email. If you are working with a charity, be sure they invite everyone on their list so you make new friends…and customers. If it is a public event, press releases are a must.

Parking When you are expecting a crowd, you may also expect a traffic jam. Put parking instructions on the invitation or provide valets if

Menu You are always wise to serve more of fewer things, rather than small amounts of lots of foods. A bountiful array will look more glamorous and be easier to keep looking fresh. For an evening event, wine and cheese is a classic that always works, as does coffee and pastries. During the day, coffee and cookies or donuts are great. I always add a big pile of grapes or strawberries regardless of the time of day because the bright color really makes the buffet look great. If you plan to entertain in the store frequently, invest in the equipment you will need. We have a restaurant coffee pot, which is fabulous. It brews quickly and the coffee is not only very good but quite inexpensive. Because we serve “traditional roller rink food” often, and have a snack bar, we also have a hot dog steamer, popcorn popper and Otis Spunkmeyer cookie oven as well as the luxury of a dishwasher and a big freezer in the warehouse. You probably don’t need all these items, but a good ice chest and coffee pot are essential. Popcorn also gives you a lot of bang for your buck and it smells terrific. Catered affairs are another situation entirely. For a fancy event, having someone else do the cooking and serving is a grand idea. Always have a walk-through with the caterer and/or party planner before you order the food so you can decide how and where you will serve it. Ask them to avoid drippy foods, like dips and chili.

Don’t Forget to Feed The Staff. We feed the staff first at every gathering. When the guests are eating it

Contact WHFA at www.WHFA.org or (800) 422-3778.

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april/may 2009

Personnel Policy Manual Software Write Your Own Personnel Handbook in Just Minutes Policies Now® — Employee handbooks are crucial to the success of all businesses. Create a customized personnel policy manual in a cost-effective manner by utilizing the expertise of the Policies Now® software. Simply choose from a list of policy topics and answer a few questions. Policies Now® writes a custom personnel policy manual based on your responses. Included is the Handbook Designer which helps you to publish a professional-looking manual. ONLY $155. Ultimate Employer® — Streamline all your HR-related tasks and responsibilities with the Ultimate Employer® which includes Policies Now® and three other modules. All four programs for only $419!

est.1944

For more information on the Policy Manual program, contact your WHFA membership representative at (800) 422-3778.

the budget allows. We often have parking directors, who greet drivers and tell them where to look for available parking spots, a cheaper alternative to regular valets.

Hours Always put an ending time on your invitations, but expect to be in the store for another hour as some people will linger, even while you are cleaning up. At charity functions, the actual shopping for small items usually happens in a big rush at the very end (usually right after I have let my son escape for the evening) in a chaotic rush. Plan your staffing accordingly.

Liquor If you serve wine or other alcohol, check your local laws carefully to see if you need permits or licenses. Always watch your guests carefully for signs of inebriation. We recently decided that if we hear one straight man say to another, “I love you dude, I really do. I mean it, man,” we close the bar. If you do not serve alcohol, consider one of the many nonalcoholic “designer drinks” to add a festive atmosphere. By the way, we find that iced cans of soft drinks with straws work much better than large bottles — less mess.

Don’t Forget Always buy extra ice, wine, napkins and cheese. It couldn’t hurt.

Limitations Don’t try to overdo it. Learn what works for your space, budget and customers. A fabulous small party is a better bet than a poorly executed large event.

Clean Up Planning a party includes dealing with the aftermath. Have plenty of garbage bags, cleaning supplies and helpers on hand to make the clean up quick.

Take Notes After the event or even during the event write a few notes about what worked and what did not. If the event is good, DO IT AGAIN. My theory is that the first time is just a party, the second time is better and the third time you hold an event it becomes a tradition.

You Are In Charge These events get better and easier as you do more and more of them. You will also learn what works well in your store, so don’t let any party planner try to make you do something you don’t want to do. Always remember that it is a privilege to have a party in your store and an honor to attend. Benefits, parties and special events have put our store on the map. We have made new friends, increased our customer base exponentially and built a reputation as a store that gives back to the community. You can do it, too, and it is really fun to see your shop filled with people having a great time. It is even more fun to see your register filling with money as the guests check out.

Mary Liz Curtin and her husband own Leon & Lulu, a furniture, gift and accessory store located in a historic roller rink. They have held lots of parties and enjoyed most of them. Mary Liz is a popular speaker, specializing in independent retail, and the author of A Shopkeeper’s Manual. Visit her at www.marylizcurtin.com. 26

april/may 2009

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Contact WHFA at www.WHFA.org or (800) 422-3778.

industry

dates

2009 April

June

September

April 27 – May 3

June 24 – 30

September 14 – 17

High Point Market High Point, NC www.HighPointMarket.org (336) 869-1000 Future dates: October 17 – 22, 2009 April 17 – 22, 2010

Total Home & Gift Market Dallas Market Center, Dallas, TX www.dallasmarketcenter.com (800) DAL-MKTS Future dates: September 12 – 14, 2009

Las Vegas Market World Market Center www.lasvegasmarket.com (866) 229-3574

April 27 – May 3 NHFA Educational Event High Point Market — Free Business Seminars Retailer Resource Center Plaza Suites, 1st Floor 210 S. Main Street RETAILER RESOURCE CENTER High Point, NC www.NHFA.org (800) 888-9590

RRC

May May 17 – 19 WHFA Educational Event 2009 WHFA Conference W HFA & Expo maui Westin Maui 2009

C ON F E R E N C E & E X P O

www.WHFAconference.com

(800) 422-3778

June 25 – 28 International Lighting & Accessories Dallas Market Center, Dallas, TX www.dallasmarketcenter.com (800) DAL-MKTS

July

September 14 – 17 WHFA Educational Event Las Vegas Market — Free Business Seminars Retailer Resource Center WMC Building B, 16th Floor WMC Building C, 4th Floor RETAILER RESOURCE CENTER www.WHFA.org (800) 422-3778

RRC

October 2009

July 17 – 20 California Gift Show Los Angeles Convention Center www.californiagiftshow.com (213) 362-5640 ®

August August 8 – 11 San Francisco International Gift Fair® The Moscone Center, San Francisco www.sfigf.com (800) 272-7469

August 22 – 25 The Seattle Gift Show® Washington State Convention & Trade Center www.seattlegift.com (213) 362-5640

October 17 – 22 High Point Market International Home Furnishings Center www.highpointmarket.org (800) 874-6492

October 17 – 22 NHFA Educational Event High Point Market — Free Business Seminars Retailer Resource Center Plaza Suites, 1st Floor 210 S. Main Street RETAILER RESOURCE CENTER High Point, NC www.NHFA.org (800) 888-9590

RRC

For more industry dates, visit www.WHFA.org and click on EVENTS & EDUCATION.

Understanding the

Power of the Mobile Web to Connect with Your Customers

I Leslie Carothers principal The Kaleidoscope Partnership

Hear Leslie speak during WHFA’s 2009 Conference and Expo in Maui, HI, May 17 – 19, 2009. Visit www.WHFAconference.com for more details.

april/may 2009

t’s true. There is a lot to learn, it can be confusing and there is never enough time in anyone’s day to learn it all, see it all, do it all and that causes stress. As all of you know, though, the world of marketing is changing at the most rapid rate many of you have ever witnessed and, it is imperative to make sense of it and use it to your advantage as the new technologies are so much less expensive to implement and execute with when it comes to attracting new customers — both in the short and long-term. The biggest opportunity lies in using web enabled cell phones (not just iPhones which, in the industry, are known as “smartphones” but any phone where the consumer has access to the web) to reach your customers. Let’s take a look at the hard facts first: As of January 2009 there were over 4 billion overall cell phone subscribers in the world according to data published by Tomi T. Ahonen, the world authority on mobile telecom. For comparison, there are 1.5 billion TV sets and 1 billion personal computers. Of these cellphone subscribers, 1.05 billion are active users of the mobile web and, of these, 400 million or 29 percent, access the web only through their mobile phones! According to a May 2008 Nielsen Mobile report, in the U.S. alone there were 40 million mobile subscribers — out of the overall population of 254 million U.S. mobile subscribers — who actively used mobile web services at least once a month! Demographically, 73.5 percent of this group is between the ages of 25-64 with 46 percent of them being between 35-64 years old — the furniture industry’s demographic sweet spot. How do you use your mobile phone? Do you text? Did you know that SMS (short message service) text messaging is the most widely used data application on the planet with over 3 billion users? Do you check email? Do you get onto Google Maps or MapQuest to find a location? westernreporter

Do you check in with any of your friends or your kids/grandkids through a social networking site? Do you search for other kinds of websites on your mobile phone? Which kinds? Where are you when you search? In your car, on your OTHER phone, in the bathroom, lying in your bed, on an airplane, watching TV? The answer to these questions is the power of the mobile web — it gives you the opportunity to be wherever your potential customers are whenever they are there and communicate with them! What can you do to capitalize on the mobile web? Find out from your local mobile carriers how many people in your market area are subscribed to web enabled services. Make sure your website is: 1.) Optimized for the search engines 2.) Loaded with great pictures with fast download speeds and lots of educational information. Make sure maps/ store hours and phone numbers are on your homepage. Don’t make mobile customers wait to download information. Hold a focus group with your friends, your kids, your kid’s friends and your customers. Find out how they currently use the mobile web. Have someone who knows the mobile web facilitate this group — via a WebEx or GoToMeeting format who can listen and then educate (not sell) about how they could use the web and then ask them afterwards if they would use it that way if you were to connect with them in those ways. Always ask for their opinions and just listen. Take that information and map out a mobile advertising strategy. What did your customers tell you? Would they be open to receiving text messages from you? Would they like it if a coupon appeared for your store if they were out on a Saturday and entering in Contact WHFa at www.WHFa.org or (800) 422-3778.

a map query to find you? What about if they were on Facebook and were talking about how they were going out to buy furniture. Would they click on an ad for your store if it came up right after they made this comment? The key is to find out what kinds of advertising messages YOUR customers would be open to receiving on the mobile web and then deliver on it. In our industry, a leader in using text messaging VERY successfully to drive sales has been a group of AshleyHomeStores run by chief operating officer and managing partner, Charlie Malouf at cmalouf@ ShopAshley.com. Charlie runs 10 stores in the Carolinas and recommends a company out of Los Angeles called www.mobilestorm.com. Neither company is related to me financially in any way, but I have communicated with Charlie via Twitter and he has given me explicit permission to invite you to contact him for further details on his experience. Two more services that I recommend looking at for your mobile strategy are: • www.tatango.com which allows a company to send text messages to a large group-all at once. They are a successful, young company headquartered in Seattle, WA with a 23-yearold CEO, Derek Johnson. • www.kwingo.net which allows any web enabled phone (not just smartphones) to display your website at the proper screen resolution for that phone. This is a huge problem for all retailers and this company has solved the problem. They have many other functionalities that are critical to your mobile success too, but bottom line, they enable your customers to see your website live with your products and your information at the correct screen resolution for their phone. Kwingo is headquartered in Minneapolis and Lisa Foote is the CEO/founder. Once you explore the mobile web further, you will find that the huge growth area for the

NEW!

mobile web is in social networking. Companies like www. brightkite.com allow their users to answer the question, “Where are you?” Friends can text in where they are physically and connect instantaneously with others in the same area for joint activities (like furniture shopping!) Think about the implications this has for advertising your business. As of this writing, Brightkite is not able to serve their mobile users with ads, but that integration is coming soon. However, right now, if you advertise with them online via PC access, you can reach your potential customers exactly where they are at any given point in time because Brightkite’s analytics know this information. That’s how they make money. And, by taking advantage of all the opportunities for inexpensive communication with opted in mobile web consumers, so will you!

The Kaleidoscope Partnership is a new media consulting firm specializing in providing retailers, manufacturers and suppliers in the home industries with the tools they need to execute social networking, online reputation management, e-conversion and analytics sales and marketing strategies. Principal Leslie Carothers has been in the home furnishings business for 26 years and has a deep knowledge of all stakeholders-especially the furniture consumer. Her goal is to show home industries executives how to grow top line revenue and cut, permanently, bottom line operating expenses through effectively engaging the online consumer. For more information, please see her profile on www.linkedin/in/lesliecarothers, visit her company page on Facebook at The Kaleidoscope Partnership, follow her on twitter @ tkpleslie, visit her website at www. tkpartnership.com or call her at (713) 705-2482.

interactive marketing services EMAIL MARKETING including custom templates, list acquisition & targeted mailings WEB SITE DEVELOPMENT including design, programming, hosting & optimization SEARCH ENGINE MARKETING & ONLINE MEDIA to drive more traffic to your store

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Banker & Brisebois ADVERTISING call to find out more 800.456.0210 Contact WHFA at www.WHFA.org or (800) 422-3778.

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april/may 2009

Tour the WHFA website at www.WHFA.org > This month’s stop . . . Resources Western Home Furnishings Association

About WHFA

Membership

HOME

Education & Events

Community

Store

MEMBER LOGIN

Resources

DEALER LOCATOR

Advocacy

SITE SEARCH

Get Involved

Business Resources

simplify your business life

Furniture Business Briefing eNewsletter Industry Career Brochure Industry Links

Locate Valuable Resources Online

Industry News

On your next visit to the WHFA website, visit the Resources tab to ﬁnd numerous resources to help your business. From an assortment of Industry Links, to additional Western Reporter articles and information on becoming a sustainable store, the Resources tab has anything you could ever ask for. Share this link with your sales, warehouse, advertising, customer service and ofﬁce staff — the Resources section contains useful information for every person in your store.

Publications and Manuals Safety Spot Sustainable Business Practices Western Reporter magazine articles

To visit the Res ources section, visit www.WHFA .org and select Resou rces.

Western Home Furnishings Association • www.WHFA.org • (800) 422-3778

advertisers

index

Please sup port the ad ver tis ers that support your magazine. Advertiser

Page

Phone

Aita and Associates.......................................11 .................... (800) 422-3778 American General Finance ................... Back Cover ............. (800) 422-3778 B&B Banker & Brisebois Advertising ...........29 .................... (800) 456-0210 Emerald Home Furnishings ...........................2 ..................... (800) 685-6646 Furniture Wizard............................................25 .................... (619) 869-7200

advertising inquiries & rates Contact: Cindi Williams, WHFA Events Manager, 500 Giuseppe Court, Ste. 6, Roseville, CA 95678. (916) 960-0277 E-mail: cwilliams@whfa.org. Subscriptions: $35.00/year, USA. Published by Western Home Furnishings Association, a National Home Furnishings Association affiliate, in the interests of retail home furnishings dealers, manufacturers, distributors and sales people. Distributed to retail merchants handling furniture, accessories, bedding, floor coverings, and specialty home furnishings in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington and Wyoming. Mailing list compiled by WHFA. Official publication of Western Home Furnishings Association, which is responsible for editorial content and advertising policy. The views expressed in articles appearing in Western Reporter are not necessarily those of Western Home Furnishings Association. Western Reporter magazine is copyrighted by Western Home Furnishings Association. April/May 2009, all rights reserved.

Western Reporter:

Read by Retailers in the West

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distribution:

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Western Reporter is read by more than 10,000 home furnishing retail store personnel handling furniture, accessories, bedding, ﬂoorcovering and specialty home furnishings in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington and Wyoming.

ServerLogic ....................................................26 .................... (866) 835-6932 WHFA 2009 Conference & Expo ..................9 ..................... (800) 422-3778 WHFA Membership ......................................20 .................... (800) 422-3778 WHFA Warehouse Products ........................14 .................... (800) 422-3778 WHFA Website..............................................30 .................... (800) 422-3778

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marketing philosophy: Western Reporter focuses on western market trends in the furniture, bedding, ﬂooring and accessories industry. It highlights industry ﬁnance, state legislation, retail store layout and design, transportation, retail advertising trends, retail store computerization, insurance, succession planning and industry social events.

Contact WHFa at www.WHFa.org or (800) 422-3778.

ELIMINATING THE

Overstockification of the inventory items. As you know, inventory is what makes you money. It starts with recognizing your best sellers, not just by volume or turns, but by individual GMROI and keeping those best sellers in stock. This is a great way to start controlling your inventory. Now pair that with identifying your dogs and move them out as quickly as possible at the highest gross margin attainable. Together, these are key tools that help you manage your inventory and improve your bottom-line.

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