December 2009 Western Retailer by Western Retailer Magazine

J o u r n a l o f t h e We s t e r n H o m e F u r n i s h i n g s A s s o c i a t i o n

western retailer

December 2009

www.WHFA.org

Member Profile: Ethan Allen Interior Design Center People Improve What You Inspect CHANGE SERVICE REQUESTED Western Home Furnishings Association 500 Giuseppe Court, #6 Roseville, CA 95678 est.1944

Sit in Style With

Emerald HOme FUrNiShiNGS visit our entire line at www.emeraldhome.com or call 253-922-1400 3025 Pioneer Way e tacoma, Wa 98443

J o u r n a l o f t h e We s t e r n H o m e F u r n i s h i n g s A s s o c i a t i o n

western retailer

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

It’s All About Sales & Marketing People Will Improve What You Inspect, Not Necessarily What You Expect!.......................... 10

2009 WHFA OFFICERS AND EXECUTIVE COMMITTEE 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 VICE PRESIDENT

The World around us

Angel Lopez - Dearden’s, Los Angeles, CA........................................(213) 362-9600 TREASURER

How to Deal with Low Morale During a Recession................................. 14

Chris Sanders - Everton Mattress Factory, Inc., Twin Falls, ID..........(208) 326-3407 SECRETARY Valerie Watters - Valerie’s Furniture and Accents, Cave Creek, AZ....(480) 483-3327 EXECUTIVE COMMITTEE CHAIR

Showroom Style

Keith Koplan - Koplan’s Furniture, Vancouver, WA.............................(360) 695-3388 PAST PRESIDENTS

Creating Impact In A Tough Economy... 22

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

Safety Corner

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

How to Effectively Prepare for a Cal/OSHA Visit....................................... 25

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

Operational Excellence

Lael Thompson - Broyhill Home Collections, Aurora, CO...................(303) 360-9653

So You Made It — Now What?........... 27

WHFA/NHFA Liaison David Harkness - Harkness Furniture, Tacoma, WA...........................(253) 473-1234 WHFA Board Members

in every issue

Gene DeMeerleer - Furniture West, LaGrande, OR...........................(541) 963-5440 Patti Evans - Consignment Plus, Walnut Creek, CA...........................(925) 927-6600 Greg Follett - Follett’s Furniture, Lewiston, ID....................................(208) 743-0177

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

Eric Foucrier - Linder’s Furniture Mart, Garden Grove, CA................(714) 210-4848

Board Member Q&A with Patti Evans . . . . . . . . . . . . . . . . . . . . . . 8

Giff Gates - Gates Furniture, Grants Pass, OR..................................(541) 476-4627 Eric Harms - Black’s Home Furnishings, Yreka, CA...........................(530) 842-3876 Ron Hoesterey - Royal Mattress Company, Inc., Orange, CA............(800) 987-6925

Member Profile Ethan Allen Interior Design Center. . . . . . 18

Jerome James - Hafer’s Home Furnishings, Manteca, CA.................(209) 823-2122 Julian Jeppe - Reeds Furniture, Agoura Hills, CA..............................(818) 597-7800 Doug Kays - Premiere Home Furnishings, Los Angeles, CA.............. (310) 268-0811

Program of the Month: Business Insurance. . . . 21

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 Don Lemieux - Naturwood, Rancho Cordova, CA..............................(916) 638-2424

contact

Jeff Lindsley - Lindsley’s Home Furnishings, Grangeville, ID.............(208) 983-1040 Sandy Lundgren - Ideal Home Furnishings, Olympia, WA.................(360) 790-3955

Phone:

Robert Myers - Ashley Furniture HomeStore, Chico, CA....................(530) 345-2616 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

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Mike Shuel - Meredith Furniture, Yakima, WA....................................(509) 452-6221 Tom Slater - Slater’s Home Furnishings, Modesto, CA......................(209) 522-9097

WESTERN HOME FURNISHINGS ASSOCIATION STAFF Executive Director: Sharron Bradley................................................(916) 960-0345 Asst. Exec./Marketing Director: Kaprice Crawford..........................(916) 960-0346 Business Manager: Janice Carlson..................................................(916) 960-0347

(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 Twitter: www.twitter.com/WesternRetailer Facebook: www.facebook.com Keyword: Western Retailer

Events Manager: Cindi Williams.......................................................(916) 960-0277

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

Operations/Warehouse Manager: Jef Spencer...............................(916) 960-0386 Communications Planning Manager: Melissa Robinson................(916) 960-0349 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.

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WHFA

ACADEMY

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RESOURCE CENTER

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December 2009

forward

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President’s Message My year as your President is almost over and this is my last President’s letter (halleluiah). I wanted to let all of you know that as tough as the business climate has been over the past year, your association is in a very strong position. Financially, the past year has been a struggle to make ends meet. Thankfully due to the strong leadership of Sharron Bradley, the staff and the Board of Directors during the good years, we have a reserve fund that will see us through for many years. I think it is important that those of you who are not involved in the day-to-day operations of your Association know that all of us who are, take our responsibilities seriously and with you, the member, top of mind at all times. From programs to market seminars, things are always considered with the membership in mind. I can’t tell you how many times I have heard a board member say, “Well if it helps even one of our members, we should consider the program.” We know that the members are the reason for the WHFA, and we never lose sight of that. I wish there was some way I could convince more of you to get involved. It has been one of the most rewarding experiences of my life. The quality and genuinely kind people that make up the board are amazing. Next year, your President will be Claudia LeClair from Scottsdale, AZ. Claudia is a thinker. She has a great sense of fairness and is very well respected by her peers. She is willing to listen and even change her mind if she thinks someone else has a better idea. That is truly a great attribute in a leader. Your organization will be in very good hands with Claudia. During the past year there have been several issues that came up due to the economics of 2009. One of those was the announcement of American General exiting the furniture financing business. This program was No. 1 in importance and use to our members. This and several other issues caused all of us to scramble and have many anxious moments. We can all be thankful that we have Sharron and her team with us. Leadership in good times is not really leadership but management. Only when things go south do you find out what real leadership is. We are all so fortunate to have had the strong capable leadership that Sharron brought to the table during the past year. Not only did she see us through many different trials but in almost every case, I believe when all is said and done, we will realize we are better off than when we started. Sharron and the remarkable team she has assembled have been truly amazing. Last, I want to thank some people who have made things special for me. Thank you to Howard, George and Doug for putting me in my place when I needed it. To Gary for never forgetting to bring the cigars and to Chris for bringing a winter coat to Hawaii, man did I get a lot of mileage out of that one. To my buddy Lael, I look forward to your time in this seat. To Dave and Angel for being the voice of reason so often and to Valerie and her spoons — man can she play! To Mike and Ralph, thanks for missing all those three-foot putts. Lastly to Keith, we miss you and hope you will drop by sometime.

Marty Cramer 2009 WHFA president Cramer’s Home Furnishings Ellensburg, WA (509) 933-2172 marty@cramershomefurnishings.com

ON THE COVER Interior shot of this month’s Member Profile, Ethan Allen Interior Design Center of Reno, NV. For the complete story, see page 18.

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

western retailer

December 2009

Editor’s Message Customer Service When It Counts I think I am jinxed. For the last year, any time I have gone to a restaurant or been helped in a store, I have received horrible customer service! It isn’t just in my local area either. A few months ago, I took a trip to San Diego and experienced horrible service down there as well! I started joking with my friends that I must be jinxed, because no one could possibly have that much bad luck when it comes to service. After talking to others, I realized that it wasn’t just me receiving bad service — there has just been a lot of it going around this year. Many employees are feeling the pressure of the current economy and letting it affect their job performance. People are constantly worried about their own financial situation and job security. With everything occurring in our world though, your employees should actually be providing even greater customer service. There are fewer customers spending money, so you should have more time and energy to focus on those customers. Do you know the level of service your employees are providing? Walk your floor or hire a mystery shopper to shop your store and see for yourself what is happening. If you never take the time to inspect, you will never know. Another issue that I believe is contributing to my “bad luck” with customer service is the morale of our country is very low. People are still absorbing the “doom and gloom” headlines and many are fearful of losing their jobs. Low morale can be horrible for a workplace — suddenly your employees have no motivation to help your customers because they are either too depressed or aren’t sure of what is in it for them any more. Check in with your employees and see how they are feeling about their job and life. Many times, just a simple pat on the back or a new challenge will recharge an employee. Or have a store potluck one day to get everyone together. For more information on identifying and overcoming low office morale, read the article on page 14 of this issue. This issue of Western Retailer also looks at inspecting your salespeople in order to see results and creating an impact on your showroom floor. I hope you enjoy it and take a good look at your company to make sure you are providing excellent customer service.

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

looking forward to January/February 2010 • The Silent Salesperson • Calculating Open to Buy • Member Profile: Fiesta Furnishings/Brix Home, Scottsdale, AZ

Last month’s magazine is available online at www.WHFA.org.

December 2009

... and much more

western retailer

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

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industry beat Hansen’s Furniture wins Therapedic award Long-time WHFA member, Hansen’s Furniture was recently awarded the Therapedic International Distinguished Retailer Award by the Therapedic — Northwest licensee. Laurie Simpson, president of Therapedic — Northwest, made the presentation in the Mount Vernon store to Don Gerrior, owner of Hansen’s. Hansen’s is an independent furniture store that has been in business in Washington since 1941 and has carried the Therapedic brand for more than 40 years. Gerrior, who started working at Hansen’s as a truck driver, eventually bought the business, and he and his wife, Cindy, have operated it since 1995. “I attribute our success with Therapedic to their reliability and flexibility, their willingness to make special products, and the fact that they are a local manufacturer who delivers complete and on time” said Gerrior. Cindy Gerrior runs Hansen’s For Kids, which carries an array of children's beds and sleep sets

and is across the street from the main store. “Hansen’s is one of our best and longestrunning customers,” said Simpson. “This is the type of account that epitomizes what we are about — servicing local family businesses with quality sleep products in a timely fashion.”

CFMA & CFSA Hold Successful Oktoberfest Event CFMA (California Furniture Manufacturers Association) and its new chapter, the Cabinet and Furnishings Suppliers Association (CFSA), held its first chapter event on Saturday, October 17. Suppliers and manufacturers came to celebrate Oktoberfest and had a fantastic time. With more than 100 people in attendance, the room was at maximum capacity and the event was a huge success. Many CFMA members and other manufacturers provided more than 100 donation items for the silent auction and drawing. The event raised $12,000 — much of which will be donated to CHOC and the CFSA Scholarship Fund.

board

member

Q&A

Q: What is your biggest challenge in furniture

retailing? A: It’s an ongoing challenge to find creative ways to reduce expenses while continuing to evolve.

Q: How do you describe yourself? A Inquisitive, optimistic and honorable. Q: What is your most prized possession? A: My home — it’s my refuge. Q: What do you do for fun? A: Music is one of my passions. I enjoy listening to music,

with Patti

ne onth tu ber m y r e v E m ard Me into Bo learn more Q&A to ur WHFA o about y embers. m d boar

discovering new artists and attending concerts.

Patti Evans Consignment Plus Home Furnishings President 1299 Parkside Drive Walnut Creek, CA 94596 (925) 927-6600 www.consignmentplus.com patti-consignmentplus@hotmail.com

December 2009

Q: When I retire, I want to: A: Teach Kindergarten... I love that age! The kids are so cute, funny and unfiltered — before the peer pressure sets in!

Q: What do you enjoy most about being a WHFA

member? A: Attending the conferences. I learn so much! I return to the store invigorated and recharged!

western retailer

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

Behold New. Experience Next.

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Itâ&#x20AC;&#x2122;s All About Sales and Marketing

People Will Improve What You Inspect, Not Necessarily What You Expect!

Brad Huisken IAS Training owner

he No. 1 thing that salespeople want out of their jobs is the ability to be and/or feel successful. As a sales manager or furniture store owner, it is essential to provide salespeople with all the tools necessary to enable them to reach their maximum potential. The single biggest reason that salespeople and a business fails is because they are managed based on opinions, as opposed to statistics. Statistics are an objective way for owners and managers to guide salepeople to success. Without statistics, the best a manager can do is to base their decisions on their opinion of what needs to be done to reach the next level. Far too often, opinions turn out to be wrong. A store owner or manager cannot afford to be wrong; they have to know specifically what needs to be done in order to help grow the business and the skills of the individuals working within the business. Additionally, statistics enable the supervisors to give positive reinforcement to things that salespeople are doing well and to train

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and coach them on areas that need improvement. In order to fulfill your responsibilities as a store owner or as a sales manager you must: Provide the leadership, knowledge, training, consequences and incentives to recruit, hire, develop and maintain successful salespeople. In looking a little deeper at these words, leaders must be great communicators, have vision for the future, lead by example, provide positive feedback, coach areas of weakness and offer praise. In order to be effective, supervisors must possess a tremendous amount of knowledge in order to lead a team. Supervisors must have factual information to make decisions, and these facts come through statistics. Effective supervisors have to be able to listen in on sales presentations and offer help and not create more problems, properly accumulate, track and analyze statistics, in other words the best sales leaders are great coaches. Contact WHFA at www.WHFA.org or (800) 422-3778.

A great coach or sales manager knows that there are only three primary ways that an individual salesperson can increase and/or maximize sales. First, the sales manager has to get more people into the store so the salespeople can sell. Then they need to measure, train and coach their salespeople in these areas: 1. Selling to more of the people that are coming into the store. 2. Selling more to the people they are already selling. Salespeople Profiles In sales management, you will encounter three types of salespeople. Each type is uniquely different and requires uniquely different sales management strategies and techniques. The three types of salespeople are: 1. Under-achievers 2. Safe-zoners 3. Over-achievers Of these three types of salespeople: • 10 percent are under-achievers • 80 percent are safe-zoners • 10 percent are over-achievers Your responsibility as a sales manager is: 1. To move the under-achievers to the next level or replace them. 2. To increase the productivity of the safe-zoner. 3. To keep the over-achiever operating at a high level of peak performance. Your success as a sales manager is measured by the percentage of your salespeople that reach their individual sales goals. If 100 percent of your salespeople reach their goals, you are an effective sales manager. If only 50 percent of your salespeople reach their goals and yet your store reaches its goal, you are missing a tremendous opportunity to be a quota buster. Get all your people hitting and/or exceeding their individual goals and the store’s goals or quotas will be shattered. Your company and your people are looking to you to be the leader in your workplace. The only way to successfully answer questions is to have the knowledge yourself and to have walked in their shoes. It is not that knowledge is power… It is the use of knowledge that is power! In addition, you have to provide the vision of the big picture to your staff and be the person that is the progressive thinker. You have to have the new ideas, be aware of the competition and be willing to take risks for what you know and believe. The furniture business is in a constant state of change — if you stand still and wait for things to happen, the competition will pass you by. I have been asked numerous times in setting-up a productivity improvement program: What comes first, sales training or accountability? They both have

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

to occur at the same time. If you hold people accountable without providing a means by which people can improve, your efforts are fruitless. If you are providing training and not measuring improvement, and offering positive reinforcement, the training is meaningless to the people and will have a short-term effect at best. People will improve what you inspect, not necessarily what you expect! If you measure something, offer training, justification and rewards, it will improve. If you don’t measure something, it is likely to remain the same. Training does not work if it’s only an event. Training has to be an ongoing process. You cannot learn to ride a bike at a seminar. You cannot learn how to increase sales by just talking about it or through attending a training session. Training must be an ongoing process in the store! There are four primary areas in which salespeople need training: 1. Sales Techniques 2. Operations 3. Product Knowledge 4. Customer Service A successful sales staff is: completely trained, working toward objectives, held accountable for performance and rewarded based on results. In order for salespeople to retain and apply information that is taught, the salesperson must: • Hear the information • Read the information • Write the information — through testing or written essays • Role-play understanding of the information • Be observed doing it in real, live situations

The keys to effective training are: 1. Training must be done from the beginning of employment. 2. Your training must be consistent. 3. Your training must be done in a specific order. 4. You must provide a checklist of all items in which they need training. 5. Your training must be fun and not boring. 6. Training must be completed in phases. 7. The trainee must understand the philosophy behind the information that is taught. 8. The trainee must complete written understanding of what is taught. western retailer

December 2009

9. The trainee must role-play his/her understanding of what is taught. 10. The sales manager must observe and give coaching on live demonstrations. 11. You cannot with certainty hold your people accountable until you have provided the training they need to complete their job responsibilities. 12. After training, you at least know that they possess the knowledge necessary to complete their job responsibilities. 13. Once you have a complete training checklist done, it then becomes the salesperson’s job evaluation form. 14. Your consistent coaching after training will insure that the information taught will become their standard operating procedure. 15. Re-training on weaknesses and new information will be always and forever. 16. The job of training your salespeople is never done. In today’s economic climate, companies are looking to make changes in their organizations. I agree that change is essential. The times of companies getting by with retail sales clerks are long gone. Companies need to develop a completely new and higher level of furniture retail sales professionals. If companies continue to do the same thing over and over again, how could they possibly expect any different results? Companies must change, the change comes in providing people with the information that they don’t know that they don’t know! In order to instill change in an organization three things must happen: 1. Policy 2. Training 3. Incentives One of the areas that companies must change is in establishing non-negotiable sales and customer 12

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service standards. All great companies have nonnegotiable standards that cannot and would not be violated, or the people would no longer be employed by that company. For example, could you imagine your FedEx person showing up with a delivery wearing brown pants and shirt? It wouldn’t happen. I know that at the Ritz Carlton Hotel all employees are required by policy to say the word “certainly” rather than a simple “yes” or “uh huh.” Even at McDonald’s, the counter people have to ask, “Would you like to super size your order?” In far too many industries and companies, customer service and salesmanship has gotten so bad, that many customers actually expect average, poor, even lousy customer service. To survive and thrive today, furniture retailers have to be head and shoulders above the norm.

Setting your Sales and Customer Service Standards As an effective sales manager, you must have standards for both sales and customer service. You must not allow these standards to be compromised. One reason you may not be as effective as you could be is that you allow your people to strike or boycott against what you know must be done. Sales Standards As an effective sales manager, you must have minimum levels of sales performance that your salespeople must live up to. In every sales position, there are certain areas that each and every member of your sales staff has to perform at least the minimum in order to remain employed. You have to establish and instill these standards in your salespeople. Here are a few sales standards to consider: • Salespeople must attempt to close once merchandise has been shown. • Salespeople must attempt to sell additional merchandise. • Salespeople must offer to sketch the room and/or home. • Salespeople must attempt to capture contact information with permission for follow-up. Customer Service Standards As with sales standards, you must have a set of customer service standards that cannot be compromised. Customer service standards are those things which you provide to your customers that will ensure that they will become personal trade and repeat customers and will sing your praises in recommending you to their friends and acquaintances. Customer service standards will determine the first and last impressions that a customer has of the company. Contact WHFA at www.WHFA.org or (800) 422-3778.

Here are a few customer service standards to consider: • Salespeople must sincerely thank and invite back all customers, whether or not they have made a purchase. • Salespeople must acknowledge every customer with a warm welcome. • Salespeople must never point the customer toward an area; they must take the customer to the area. • Salespeople must come out from behind the counter and shake the customer’s hand at the end of a transaction. • Salespeople must look for opportunities to provide heroic customer service. Here are a few other bullet points on sales and customer service standards: • Sales and customer service standards are those things that will have a direct effect on sales. • Your salespeople must understand the philosophy behind the standards you have set. • Your standards must be written and posted. • Sales and customer service standards will take constant reinforcement on your part. • You must be willing to writeup and eventually terminate people for violations of the standards. • Install a few of each, sales and customer service, drive them in, and then install a few more. • Don’t give up on your standards — you have the right to have things done your way. As a furniture store owner or sales manager if you can create an environment of personal growth and development; your people, and thus your store(s), will be successful.

Can Sink Your Teeth Into.” In addition, he has developed the PMSA Relationship Selling Program, the Train The Sales Trainer Course, the Professional Sales Management Course, The Mystery Shoppers Kit, The Weekly Sales Meeting Training Series, along with Aptitude Tests and Proficiency Exams for new hires, current sales staff and sales managers the Employee Handbook and Policy & Procedures Manual Kit and his new Weekly Internet Sales Training Series. In addition he published a free weekly newsletter called Sales Insight. To contact IAS Training call (800) 248-7703, info@iastraining.com or www.iastraining.com.

Mr. Brad Huisken has been in sales since 1971. Since the early seventies he has been directly involved in all aspects of sales. His experience and knowledge have enabled him to author the highly acclaimed book “I’m A Salesman! Not A Ph.D.” and his new book “Munchies For Salespeople! Sales Tips You

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

western retailer

December 2009

The World Around Us

How to Deal with Low Morale During a Recession Ann Andrews entrepreneur The Corporate Toolbox

was recently asked by a national newspaper to give their readers some ways to recognize the signs of low morale and employee stress and to offer some tips for dealing with both challenges. Worry causes stress and right now job insecurity is every employee’s biggest worry. No one can guarantee that people won’t lose jobs — who knows how much longer the recession will last but what you can do, as a team leader, manager or business owner, is be aware of the signs of low morale and stress, and step in as quickly as possible to do something about it. If you are a “sensory” manager or business owner, you will actually “feel” low morale. You will sense a deadness or an apathy in your people. And being sensory you will pick up that lack of energy very quickly. However, for non-sensory managers or owners, there are some very clear signs that morale is dipping in your team or business. The signs are: • Sickness levels will increase as people start to succumb to various bodily symptoms — headaches; insomnia; an increased susceptibility to colds and flu because they are feeling low. • Accidents will increase as a result of low attention to detail. • Productivity will be affected and no amount of whip-cracking will help. So here are my 10 tips for dealing with low morale and worker stress during a recession — or during ANY turbulent times...

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1. Communicate — in the absence of real information (even bad news) employees will speculate; the gossip mill will be rife and stories become embellished with the telling. Be honest and be honest frequently. Keep people informed. 2. Celebrate the good stuff, even if there isn’t much to celebrate right now, find some things, and do this also on a frequent basis, for example, “Today we salvaged a customer who was going elsewhere, and we did it by offering them the very best customer service and care.” 3. Involve your staff — have regular brainstorming sessions about ways to create efficiencies and reward the best ideas with two movie tickets ($20 won’t break the bank) 4. Have a “theme” of the week, like this week we are going to have a “quality” drive — anyone who can improve the quality of any system or process can have Friday afternoon off. 5. Hold an employee drawing and let the winner spend a morning in a different department — it’s amazing what people see in another area. 6. If the store is fairly quiet — ask everyone to write down one thing I would like to learn on a Post-It note and one thing I'd like to teach. Let people pair up for a couple of hours a week. 7. Offer a mystery weekend for the very best idea anyone can come up with for a new product or service. continued on page 16 Contact WHFA at www.WHFA.org or (800) 422-3778.

Experienc

e the Business Behind the Magic

Book your room early for your free gift and a chance to win a FREE Trip to WHFA’s 2010 Conference* Our host hotel, Disney’s Grand Californian Hotel® & Spa in Anaheim, CA, is the premier property at Disneyland® Resort and rooms sell out fast! Don’t miss a once-in-a-lifetime conference experience at a once-in-alifetime rate (starting at $189/night). *Book your room before February 5, 2010 and receive these EXTRA benefits: • FREE Disney Commemorative Gift • Entry into a weekly drawing for a FREE Disney DVD • Entry into a grand prize drawing for a FREE trip to the Conference, including air and hotel accommodations** ** Restrictions apply, see www.wHfa.org for details. No purchase necessary.

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2010 WHFA Conference May 2–4, 2010 Expo

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Western Home Furnishings Association

(800) 422–3778

www.WHFAconference.com

What Members Are Saying ...About Whfa Membership...

“

I am a member of WHFA because of their great business programs and services that we use.

” “ ”

We save so much money on these programs. Mike Shuel, Meredith Furniture, Yakima, WA

risk and guess work out of running a business.

WHFA takes all the

It´s like being involved in a large consulting group specific to our industry.

Robert & Vera Myers, owner, Ashley Furniture HomeStore

“

I have to say that if there was one

word that sums up why I am part of

WHFA it would be

Networking.

”

Where else can you pick the brains of some of the best people in the industry?

Greg Follett, president, Follett´s Furniture

“

My membership in WHFA gives me

strength

in numbers. It is an opportunity to learn

”

from my peers. We can learn from each others

successes and learn from each others mistakes. Chuck Hill, CEO, Bedmart, Inc

Simplify Your Business Life est.1944

Western Home Furnishings Association 800.422.3778 • www.WHFA.org December 2009

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continued from page 14

8. Organize a few impromptu things, like ask everyone to bring in a plate and have a joint breakfast. Use this opportunity to let your people know how much you value them. 9. Have a weekly employee drawing and let the winner go out and visit a client or a supplier — getting to know your customers and suppliers face-to-face is a huge energy boost for both parties — they may even come back with an order or reduced supply cost! 10. Instead of an “employee of the week” which has become a bit “yawn, yawn,” have a competition one Friday afternoon for joke of the week, or song of the week, or story of the week... the prize can be as simple as a bar of chocolate. When I sent the tips over to the journalist she commented that what I seemed to be saying was have more fun at work. Yes and no. Fun is great — I have no problem with creating a fun place to work. But this is about more than fun — it is about re-energizing people; which is very different from just having a fun day. After all, who will appreciate a fun theme when their job is at risk — it is almost insulting. So the theme to my tips is more about finding cheap ways to keep people energized and interested — there is nothing that affects productivity so much as lack of energy. My belief is that if you keep finding ways to keep the energy levels high, even though sales might be low, people will be motivated to come to work; they will be motivated to get involved in all the productivity improvement ideas, because involvement has been fun and creative rather than a whip across their shoulders. Recessions can be the best thing that has ever happened to your business. They can actually bring your business to LIFE!

Ann Andrews, CSP is an inspirational entrepreneur and teams specialist who teaches organizations and individuals how to learn, unlearn and relearn. Her latest project has been the development of The Corporate Toolbox (www. thecorporatetoolbox.com) — an online resource for businesses, speakers, trainers and HR professionals.

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

Employee Benefits Specialist

Long Term Care Insurance

Lifestyle Choices and Willness Programs Keep Premium Costs Down!

s many of us are aware, we are coming down the stretch for Health Care Reform (the threat of a filibuster aside). As I have said in previous articles, this is a good thing, as we must do something about ever increasing premiums, pre-existing condition limitations of care, carriers denying to pay for claims and the legitimately uninsured. Of course, there are those who question whether or not all of the reform efforts will actually help bring down health care costs. Well, there is one factor that can absolutely do that but there isn’t much discussion about this factor in the reform debate. That would be you, me and the rest of the populace. We “end consumers” of health care are one of, if not the main force driving up health care costs. Consider this: It is estimated that at a minimum, 55% of all health care costs in the U.S. are due to lifestyle choices you and I make. There are those who estimate that percentage may be as high as 70% of all health care costs. We are talking about things like smoking, unhealthy eating habits, over eating, lack of exercise, risky past-times and exposure to unhealthy conditions (the simplest of these is washing our hands more frequently). If we, the end consumer of health care, took an active role in our health and well-being we could impact the cost of health care like no other factor can. Think about it, premiums are based upon the utilization of health care. Insurance companies desire to have 70-75% of all premiums collected go towards the payment of health care claims. The other 30-

707.829.8606 phone license# OE22529

25% is supposed to go towards salaries, administration, marketing and maintaining reserves for “unforeseen” health catastrophes. Based on a recent Price Waterhouse Cooper study, health insurance companies nationwide are actually paying out, on average, closer to 85% of collected premiums on health care claims. There really is a direct correlation between the ever-increasing premiums we pay and the accessing of care. We are a nation that seems to wait to get sick before we access medical care. In the medical field it is referred to as “crisis intervention”. We need to get pro-active in “crisis prevention”. We need to get the end-user of health care, you, me and our employees, involved in this prevention effort. Otherwise we will continue to fight an uphill, increasing-premium battle for years to come. Information and education are key to this effort. As responsible employers we should enlist whatever resources we can to get the message out. Let your employees know how your bottom-line is affected by year-after-year premium increases. Offer a consumerdriven health plan as a health plan option to them. Consider a wellness program in your workplace to help your employees be pro-active in regards to their health. Let’s get that lifestyle factor under control. We’ll all benefit from it. To get a quote for your health insurance needs contact Bob Aita, Aita and Associates, your WHFA Health Insurance Program consultant and broker at (888) 829-8606 or email Bob@aitaandassociates.com.

888.829.8606 toll-free www.aitaandassociates.com

est.1944

Member Profile

Ethan Allen Interior Design Center Reno, NV

I Melissa Dressler Western Retailer managing editor

nspirational and design oriented, every Ethan Allen location has the same motto, “We can help as little or as much as you like.” Ethan Allen Interior Design Center of Reno is one of approximately 300 Ethan Allen Design Centers in the U.S. and abroad that provides customers with excellence in style, quality, value and personal service. Founded in 1977 by brothers, Jack and Leon Simon, the licensed, individually-owned Ethan Allen Interior Design Center of Reno, NV strives to help design beautiful homes and take care of its Northern Nevada and Eastern Sierra customers. Having grown up in the home furnishings industry in Moorhead, MN, Jack moved to Reno to open the new Ethan Allen Gallery. What he didn’t expect was to meet his future wife, Jeanne Baxter who, “Married into the business.” Before Jeanne married into the home furnishings industry, she had experienced several different careers ranging from being a stewardess for American Airlines to eventually becoming President and CEO of Ethan Allen in Reno. “I joined American Airlines as a stewardess in 1959. After the birth of my two sons, my family moved to Reno, and I became ‘Miss Jeanne’ of Romper Room, a children’s television program

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for preschool aged children,” she said. “With my connections from Romper Room, I joined the advertising department at the ABC affiliate and worked there for 16 years. Afterwards I joined the CBS affiliate and eventually opened my own ad agency in 1990. When Jack and I married, I handled local promotions and advertising for our Ethan Allen Gallery and always thought I understood the furniture business. It wasn’t until Jack passed away in 1994 that I realized how little I knew about its operations.” Initially, Jeanne had a difficult time grasping the operations of the business, but relied on her great team for support. Ethan Allen continued to grow and thrive and in 2005, the business was expanded and moved into their new facility that now showcases Ethan Allen’s quality home furnishings in Reno’s premier home furnishings center. At 70, Jeanne still has the same drive and passion for business as she has had since she began working for American Airlines. Ethan Allen’s 14 employees share Jeanne’s passion for Ethan Allan’s quality home furnishings and custom capabilities, and their No. 1 goal is to help make their customers’ dreams come true. The interior design staff works hard to make the store an open, pressure-free environment where Contact WHFA at www.WHFA.org or (800) 422-3778.

Jeanne Baxter, president and CEO of Ethan Allen Interior Design Center of Reno.

Kevin Blankenship, delivery man, staging furniture for delivery.

customers can comfortably browse as the design team helps provide a myriad of solutions to make those dreams come true. Every success of the team is celebrated. “When a designer has completed a great project or simply assisted a customer with a new-found treasure, we celebrate!” said Jeanne. “We want to keep our morale high in this recovering economy.” Jeanne and her employees are also very involved in the local and global community. The design center has partnered with local community organizations such as Soroptimist International of Truckee Meadows (SITM), Reno Sparks Chamber of Commerce and the Reno Rodeo Foundation by holding fundraisers and social gatherings in the store. Jeanne is also a lifetime Soroptimist and past president of SITM, so the design center often supports Soroptimist projects. Soroptimist International is a worldwide business and professional women’s organization who’s focus is “women helping women.” Her proudest achievement with this group was when they built a dormitory for women in a tiny village in Nepal. “In 1983, I went around the world traveling over three months with my sons with just a backpack on my back,” she said. “We met a young man named Purna in Katmandu who was then 17-years-old and eventually brought him to America to further his education. Twenty-six years later, he is now an American citizen and a very successful electrical engineer. In the village where Purna came from in Nepal, women did not have the opportunity for education. Our local Soroptimist group built a dormitory in this little village in 2000, and we have now educated over 400 women.” The school, along with an animal assistance program SITM established, has greatly increased

the standard of living in the entire region. The village recently received electricity and Soroptimist have just provided four computers that will be used to further the education of all of the students — a new window to the world. “We are so proud of this project,” Jeanne said. “Our design center has been very supportive and even corporate Ethan Allen has supported the project. Ethan Allen’s Chairman/President/CEO, Farooq Kathwari, was so impressed with what we have been able to do in that remote village of Nepal, that Ethan Allen Corporate has also made contributions through their charitable trust fund.” Along with educating and helping women on a global level, Jeanne and her staff are very supportive of a Northern Nevada women’s shelter that is one of the few programs in the U.S. that allows women to have their children together with them in a rehabilitation program. “It is a unique program because while the women are in it, they stay in a cottage, and when they are able to leave and move into their own apartment, they take all of the furniture with them as they begin their new lives. This is

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

continued on page 20

At a Glance Type of Store: Full-line Year Founded: 1977 Employees: 14 Number of Store Locations: 1 Website: www.ethanallen.com WHFA Member Since: 2005

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December 2009

Ethan Allen’s Interior Designers can help as much or as little as customers like.

Service Specialist, Paul Basso, has been helping Ethan Allen customers for over 22 years.

continued from page 19

one of my favorite charities that we support,” Jeanne said. When Jeanne isn’t busy with the daily operations of the business or helping out in the community, she spends her time with her three Schnauzers. “I affectionately call them our board of directors,” she said. “Most days they go to work with me. I have a nice, big office that is away from my customers, and they think they rule the roost so to speak.” While Jeanne never sees herself retiring, she has thought about the future progression of the business. “In the future I want to grow my business, and my dream has always been to make this an employee-owned company,” Jeanne said. “I have two sons and both are interested in the business, but I also realize that my team

is full of dedicated, long-term employees and I would like them to have the opportunity for some ownership in my company.” “I want to be involved in the business, but I also would like to continue to travel and take time for myself,” she added. “I have always taken time for myself, and I think that is essential in all that we do. We need to have a balance in our lives. I would love to spend more time with my four grandchildren and continue my love of snowshoeing winters and hiking summers in the beautiful Sierra, while continuing to be a part of the business.”

see what all the hoopla’s about! Introducing e-hoopla... this changes everything. SM

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To find out what all the hoopla is about, call 800.456.0210 or visit: e-hoopla.com

Banker & Brisebois ADVERTISING

December 2009

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

Program of the Month through WHFA’s partner

Tips To Help You Cut Business Insurance Costs

wning and running a business is costly enough. You have to keep your store stocked, staffed and marketed. But if your store is not well protected, one insurance claim can jeopardize your company’s future. Insurance policies are an expensive part of doing business. Here are some tips to cut the cost of your business insurance policy and stay protected.

Tip 1

Tip 4

Stick with insurers that are familiar with your industry. Many insurance companies are eager to insure any type of business. But if you find an insurance company/agent that is familiar with your industry, the costs are always lower.

You owe it to your business to shop your business insurance policy every year. Don’t let your current broker roll your policy over without looking at what your current needs may be. Has your inventory changed? Have you added or reduced the size of your warehouse or delivery fleet? Have you made tenant improvements that may earn you rate reductions? All these questions and more must be asked every year and policies should be shopped to make sure your broker and insurance company are doing what is best for your business.

Tip 2 Many business liability claims originate from employees. Creating employee handbooks can lower your business liability insurance. You can protect yourself by implementing sexual harassment policies, employment contracts, non-disclosure forms and other employeremployee contracts. You can also review issues such as business ethics with your employees to protect yourself from lawsuits from clients. Most insurance companies require employee handbooks in order to provide you with business liability insurance.

Tip 3 One of the simplest methods for reducing your insurance premium is raising your deductible. This means you will pay more out of pocket for each occurrence. However, if you are able to implement safety measures effectively, such as safe driving and store maintenance, you may have reason to believe your claims will be relatively low. The money you save in premium each year can typically cover the cost of a small claim such as a fender-bender. Just be sure to have enough money in savings to cover your deductibles, or you will face a fiscal emergency if you do have a claim. Contact WHFA at www.WHFA.org or (800) 422-3778.

Kaprice Crawford WHFA

How Can Whfa Help You? WHFA members have access to a Lower ra custom business insurance program tes by specifically designed for our members. going d irect wit Argo Select, WHFA’s Business h insuranc Insurance Program provider, has been e c o m p insuring retailers for over 39 years and any specializes in retail operations. With Argo Select you receive business insurance coverage designed exclusively to fit your store’s individual needs. Their retail-specific loss prevention advice and customized services help prevent claims from occurring. This program is direct with the insurance carrier and you will receive competitive rates provided through noncommissioned agents, although your broker also has access to this program. Argo Select’s rates and service benefit you, our member. Get a quote today at (800) 422-3778.

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December 2009

Showroom Style

g n i reat

In A

Randy Auman & Kiki Frisbie principal designers TradeShowRoomDesign

t c a Imp

y m o con

E h g Tou

here is a saying in marketing that the more things are the same, the more important the smaller differences become. In today’s marketplace, with fewer customers, tougher competitive conditions and the looming online options available to your customers, it is more important than ever to focus on setting your store apart. One way to do this is thru a solid and direct visual merchandising program. With so many stores “looking alike” these days many retailers quickly learn that the key to success is in these small differences. How do you, first, get the customer to enter your store and then, more importantly, to purchase once you have them there? The one area in which the web-based e-retailers, for example, cannot compete with you is the in-store visual experience. Your important marketing efforts have brought your customer to the door. Visual merchandising keeps them there and encourages them to purchase. You have the unique opportunity to give your customers an emotional experience with your products — a connection they make to a particular item. Professional visual merchandising is all about creating this connection with the customer. By designing carefully crafted vignettes — or visually merchandised areas — that relate to your customer’s lifestyle aspirations and show the product correctly, you can “prompt” them to purchase. An image on a computer screen cannot invoke these emotions to the level that you can within your store environment. The visual merchandising component is one area of store development that is unfortunately misunderstood by many furniture retailers. It is, however, the secret key ingredient to help you close the sale once your customer is in your store.

December 2009

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

What is the first thing your customer sees from the moment they enter the store? Have you created an impactful first impression through a visual statement at the entrance of your store that makes them want to see more and explore? Does the arrival environment you have created adequately represent what your store has to offer and who you are — or want to be — as a retailer? If not, allocate a space by the entrance and create a styled room setting or lifestyle statement. Showcase your product at its best. Space should not be an issue, as this statement may simply be a chair and side table with a lamp placed in front of a screen or partition. Whatever the statement, though, make sure it packs a strong punch visually. Once they have entered, have you thought out your traffic patterns so you can direct them to have the best store experience? The store should “flow” from one experience to another, enticing your customer to continue their journey throughout your entire showroom. Customers must be able to visualize how the furniture will fit into their homes and their lifestyle. Visual merchandising helps sell them their dream.

Where to begin? First, plan your traffic aisles so you can lead the customer through your store with ease. Try not to create “forks” in the road. If a big-box store such as IKEA can accomplish this feat, so can you. You must take the lead in showing your customer what to see and in what order. Along your customer’s explorative journey, keep them excited and interested by creating strong vignettes, or lifestyle statements along the path. Position these “display rooms” in prominent focal areas. You do not have to build three-walled rooms for this to be accomplished. Simple partitions of interesting hanging fabric, screens, or large wall units/cabinets can help in defining the boundaries. Focus your overhead lighting on these areas so they become more prominent. You may even change some of the lighting to halogen pin spots or flood lighting to give these areas an extra dominance. When planning any visual area, keep in mind there will be two things to consider: lifestyle and room type (i.e. contemporary dining room, lodge bedroom). You may have space to create numerous statements, but be sure that each one is detailed to perfection. It is better to have three well-appointed room settings/statements than a dozen that are not well executed. The reason they say the devil is in the detail is because it is true. A frame on a side table may be the reason someone buys that side table. Contact WHFA at www.WHFA.org or (800) 422-3778.

Once you have established the vignette areas, they should be changed frequently and kept fresh. By simply rotating product and carefully switching out a few props and accessories, you can transform a contemporary dining room space into a traditional living area. Many different elements can be used by visual merchandisers in creating displays, including color, lighting, space planning and product information signs. New technologies allow for sensory elements such as smell, touch and sound as well digital displays and interactive displays.

Who can create these vignettes? Few furniture stores have staffs devoted exclusively to visual merchandising and display. Many stores use sales personnel to accomplish the visual tasks and many do a fine job. Savvy retailers reach out to highly-trained design studios, using them as consultants as well as designers, who specifically focus on these environments applying proven visual merchandising techniques and strategies to help stores stand out from their competitors. In today’s challenging economy, people may try to avoid designers/visual merchandisers because they fear unmanageable costs. But in reality, visual merchandisers can help economize by avoiding costly mistakes. With guidance of a professional, retailers can eliminate errors and save time and money. It is important to understand that the visual merchandiser is there not to impose ideas but to help clients figure out their own personal style and to increase sales. Your city or town has visually trained merchandisers — professionals in their field — that can help you accomplish your goals. A simple ad in the newspaper or a notice placed on a website will probably find the right person to meet your needs. Bringing in such a merchandiser could become a special event to help attract new customers by having an opening night party to unveil the latest lifestyle statements. Chances are good that this event would generate additional sales. A constantly changing and visually fluid environment can be a tool to get media press. Consider creating an exciting event and do them frequently so customers will want to stop by, see the latest trends, the latest arrivals and get inspired. Another source for helping create these instore statements is the furniture manufacturer. Many manufacturers have gone to great expense to create dazzling showrooms during market weeks. When attending markets, take your camera along, and photograph the best of the best. Ask your manufacturer if they would like to co-op a vignette with you. Many manufacturers have created their “brand identities” based on western retailer

December 2009

Creating emotion in your customer is critical, as customers buy what they see. The art of visual merchandising embodies proven ways to create environments that increase sales. It is important to remember that this focus cannot be an afterthought. Creating the correct environment needs to be a daily part of your process. By creating small visual differences as well as larger bolder statements your store can become paramount in a customer’s mind, but the effort does have to be made by either you, your team or professionals trained to do it for you. Your store’s visual impact is a powerful weapon that creates a connection that is difficult at best to achieve by the online retailer. And that is one less competitor you have to worry about.

certain room styles or vignettes and should consider recreating these in your store. This can be good for all involved, as a gallery concept establishes a guaranteed space and location for the manufacturer and it gives you a point of differentiation in your marketplace.

What about propping? We focus on selling furniture. Your focus is on selling furniture. However, in today’s economy, other types of retailers are selling furniture that enhances their other products… so consider selling accessories that compliment your furniture. If you do not wish to make the investment, check out local artists and craftsmen for consignment options. You may be surprised at what great artists are found in your own backyard.

TradeShowRoomDesign specializes in helping showrooms increase their sales by designing, installing and merchandising both new and existing showrooms with proven results oriented design concepts. Established in 2001, TradeShowRoomDesign recently opened a Las Vegas office after enjoying great successes in the markets of New York, Atlanta and Dallas. The company’s services include: complete design and installation of showrooms from concept through completion; visual merchandising; fixture design; interior and exterior graphic design and installation; space planning, plan-o-grams, computer renderings, professional window displays, interior vignettes, and specialty painting such as murals and faux finishes. The principals of TradeShowRoomDesign, designers Kiki Frisbie and Randy Auman, began their careers in visual merchandising at Neiman Marcus in Dallas, TX and have been designing for a global clientele for the past 30 years.

Store Procedures Manual The Store Procedures Manual is the only guidebook of its kind for the home furnishings industry. This comprehensive guide was written for retailers, by retailers and industry experts. Use the Store Procedures Manual to help your business run smoother, more efficiently and increase profitability with this easy-to-use, step-by-step guidebook on creating your own company's procedures. ers $299 Memb ember $399 Non-M

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est.1944

Contact your WHFA membership representative at (800) 422-3778 for more information.

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

Safety Corner Enforcement: How to Effectively Prepare for a Cal/OSHA Visit The current administration in Washington, D.C., has promised increased regulatory enforcement against employers. dditionally, Cal/OSHA knows that employers are trying to do more with less these days, so Cal/OSHA is operating under the assumption that illegal safety shortcuts are being taken. The bottom line? You’re now more likely than ever to get a knock on the door from a federal or Cal/OSHA inspector. If you want to avoid the potential of hefty fines and litigation costs, now is the time to get prepared.

Current Cal/OSHA inspection priorities:

For additional information specific to Cal/OSHA or OSHA workplace safety

• High hazard industries — SIC Codes 20 - 39 • X-Modifications of 125 or greater • Outdoor workforces — exposure to heat illness

compliance, please visit the

How to best prepare for a visit: • Conduct a hazard assessment • Review your Injury Illness Prevention Plan (ILPP) to ensure compliance • Review your documentation — training; quarterly inspections, accident reports; OSHA 300 log; workers’ compensation records

How the enforcement actions and the new penalty calculations affect you: • • • • •

General violation fine up to $7,000 Serious violation fine up to $25,000 Willful violation fine up to $70,000 Repeat violation fine up to $70,000 Failure to correct fine, $15,000 per day

SAFETY SPOT at www.whfa.org > Resources > Safety spot or contact your WHFA Safety Director, Kaprice Crawford at (800) 422-3778.

Effective strategies to greet Cal/OSHA Inspectors: • • • •

Request identification and phone Cal/OSHA District Office to verify Require specific purpose of visit Restrict access to only areas specified in complaint or search warrant Refuse any request to reconstruct or perform any action not otherwise occurring as part of your on-going business activity • Say or ask as little as possible and volunteer nothing • Duplicate the actions of the inspector

est.1944

(800) 422-3778 • www.whfa.org > Resources > Safety Spot

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

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December 2009

The RRC is brought to you by:

est.1944

Market is more than just inventory. RRC offers: • Seminars • Industry Information • Business Solutions World Market Center, Las Vegas

February 1 – 5, 2010 Building B, 16th Floor | Building C, 5th Floor

Complimentary Hot Spot Cafe: Computers, coffee & cookies (available all day) Breakfast for Buyers: (Mon - Thurs 7:30 – 9:00 a.m.) Power Hour: Beer, wine & lite bites (Mon - Thurs. 4:00 – 5:00 p.m.) Seminars: 19 business seminars throughout market.

Building B, 16th Floor 26

December 2009

Visit www.WHFA.org for a full list of activities at the RRC.

western retailer

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

Operational Excellence

So You Made It — Now What?

any of your friends and neighbors did not make it through the last year. Others that have refused to change with the times are still in jeopardy. The business world operates by many of the same concepts as the laws of natural selection. In the past you might have been able to get by with doing 60-70 or 80 percent of what you should have been doing to ensure your businesses’ success and safety. For you to maximize the opportunity that you now face, you will have to be open to change. We have gone from the over-retailing of America to survival of the fittest. There are many independent retailers that are doing 90 percent of what needs to be done in order to succeed, while others are not even close. If your company isn’t maximizing its success, it is fixable. Here are a few areas to look at: • If you currently do not produce and effectively work your annual budget, you need to start now. You also need to become more fiscally responsible; constantly seeking ways to improve your cash-flow position. • If you currently do not effectively employ universally acceptable merchandising concepts, now is the time to start. These include concepts such as the development of a war room, utilization of open-to-buy for category control, item elimination strategies for merchandise that falls below your established standards, etc. • If your company is organizationally underdeveloped and words like delegation and accountability are not part of your corporate culture, you will need to go through extensive cultural reorganization. If you do not, then you will not be able to handle significant increases in volume and the opportunities could pass you by. There are seven areas of your business that need to be consistently aligned with one another for you to maximize the opportunities that you will have in the not-too-distant future. 1. It starts with your marketing efforts. Traditional marketing efforts are simply not as effective as they once were. Television ratings are questionable because there are now hundreds of channels available. The ratings may indicate that programs are being watched but not necessarily the commercials. People surf the channels during commercials or use DVRs, etc. and speed through them. Newspapers are going under. In most marketplaces radio has not been effective for many years. Direct mail still has its place but since many of you have relied on newspapers to insert your circulars, etc., the effectiveness of this vehicle is in question. The Internet has become increasingly important. Having a good website is not enough, you have to ensure that your website is optimized and that your customer finds your website early in the process when seeking out your products. Other Internet resources seem to be popping up monthly. The companies that understand how to maximize the potential of those resources will have a great advantage going forward. Equally as important to the vehicles you utilize is the message that you are sending. Who are you? What is your competitive differentiation? Why would someone viewing your website give you their contact information online? Why would someone viewing your website call your store instead of a competitor’s or a virtual store? In the past, the furniture shopper might visit six or more stores. With the Internet, she can virtually visit many stores in a very short time. What will be a call to action for her to physically come to your store? Contact WHFA at www.WHFA.org or (800) 422-3778.

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Joe Milevsky CEO and founder JRM Sales & Management, Inc.

December 2009

Sell more furniture, more efficiently, on-line and in-store. 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 – to simplify tracking and updating fabric samples Exim – to communicate electronically and economically via EDI ePiphany – to help build a searchable, feature-rich website

What solutions do you need to improve your profits?

800-964-3876 sales@microdinc.com www.microdinc.com. Online marketing and e-commerce solutions for the furniture industry.

“

Even selling skills must change going forward.

2. Whatever you decide is going to be your image or your brand, through your marketing efforts, needs to be reflected in the exterior of your store. For example, let us assume that the image you are creating is one where your customers can achieve their dreams of a beautiful home. Now imagine as they pull into your parking lot, they see windows that are dirty, a parking lot that has not been resurfaced in 25 years and the “green statement” that you are making are weeds covering your property. Can you see the disconnect? 3. Perhaps the above two areas of your business are aligned properly. However, when your customers walk into your store the concept of “retailing is detailing” is not readily evident. There are holes all over your floor, tagging is inconsistent, lighting is not focused properly or bulbs have not been replaced, dust is the rule, etc. Can you see the disconnect? 4. If areas 1 - 3 are aligned but your customer is not approached by anyone, or even worse, when approached wishes they never were, then there is a problem. You have lived by the belief of, “What if I spend the time and money it takes to properly coach and train a salesperson and they leave?” To take advantage of post-recession opportunities, your belief will have to change to, “What if I don’t spend the time and money that it takes and they stay?” Even selling skills must change going forward. Not only do you need to focus on selling skills that deal with the in-store customer, but now more then ever you will need to focus on the customer that calls your store. The Internet will drive customers to action but that action will often be a phone call. If your team is not properly trained and focused on dealing with those calls, you will lose your competitive edge. 5. If areas 1 - 4 are aligned properly but when your customers attempt to pay for their purchases or apply for credit your system breaks down. Your computer system is outdated and does not give your salespeople reliable information. Perhaps you are understaffed or undertrained in this end of the business. Can you see the disconnect? 6. If areas 1 - 5 of your business are aligned but your delivery department is not functioning properly, your prior efforts will be consistently undermined. You give a two-hour window for delivery but the truck shows up two hours late and the customer was not contacted or the merchandise is delivered damaged and an unprofessionally attired delivery person lacks empathy and fails to understand that he or she is part of your team. Can you see the disconnection? 7. If areas 1 - 6 of your business are aligned but when your customers require additional service after the sale, they do not get it. I remember reading a study years ago that stated: 25 percent of all customers that had a good experience with your company and did not require post-delivery service, are likely to buy their next furniture purchase from you. If there is a problem that was rectified to their satisfaction that number goes up to 50 percent. If there was a problem that was rectified above and beyond their expectations, that number goes up even higher. If your service department is not proactive and effective, can you see the disconnect? Well-run businesses will prosper in the coming years. With the change in the business landscape there is an incredible opportunity. Look at your business and make sure you are doing everything to succeed at 100 percent. Contact WHFA at www.WHFA.org or (800) 422-3778.

Joe Milevsky is the CEO and founder of JRM Sales & Management, Inc. Calling on his more than 35 years of retail experience, Joe has helped hundreds of clients understand and profit as a result of their business relationships with JRM. He has authored numerous articles for industry trade publications, and he is a regular speaker at national events for the National Home Furnishings Association (NHFA), the Western Home Furnishings Association (WHFA), various buying groups and user conferences. Visit the JRM Sales & Management website at www.jrmsales-mgmt.com for more information.

western retailer

December 2009

Alert t c u d o r P w e N

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Aita & Associates...............................................17........................ (800) 422-3778 B&B Banker & Brisebois Advertising................23........................ (800) 456-0210 Emerald Home Furnishings................................2......................... (800) 685-6646 Furniture Wizard.................................................13........................ (619) 869-7200 GE Money................................................... Back Cover................. (800) 422-3778 HomeFurnishings.com.......................................7......................... (800) 888-9591 JRM Sales & Management, Inc.........................29........................ (678) 574-0937

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 Retailer are not necessarily those of Western Home Furnishings Association. Western Retailer magazine is copyrighted by Western Home Furnishings Association. December 2009, all rights reserved.

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Western Retailer 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.

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December 2009

western retailer

marketing philosophy: Western Retailer 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.

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