January 2011 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

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Over & Above Advertising and Marketing! Motivating Your Staffâ&#x20AC;&#x201D; Without Spending a Dime!

CHANGE SERVICE REQUESTED Western Home Furnishings Association 500 Giuseppe Court, #6 Roseville, CA 95678 est.1944

January 2011

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table of contents

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: Kristy DeVaney..................................................kdevaney@whfa.org

featured articles

Advertising Manager: Cindi Williams..............................cwilliams@whfa.org

it’s all about sales & marketing

2011 WHFA OFFICERS AND EXECUTIVE COMMITTEE WHFA PRESIDENT Angel Lopez - Dearden’s, Los Angeles, CA........................................(213) 362-9600

Generating Traffic in a Slow Economy......................................10

PRESIDENT ELECT Chris Sanders - Everton Mattress Factory, Inc., Twin Falls, ID..........(208) 326-3407

showroom style

VICE PRESIDENT Valerie Watters - Valerie’s Furniture and Accents, Cave Creek, AZ....(480) 483-3327

2011 Color Forecast................................14

TREASURER Lael Thompson - Broyhill Home Collections, Aurora, CO...................(303) 360-9653 SECRETARY Chuck Kill - Bedmart, Tucson, AZ.......................................................(520) 887-7039

next generation now

EXECUTIVE COMMITTEE CHAIR Claudia LeClair - Fiesta Home Furnishings, Scottsdale, AZ...............(480) 951-3239

Just Say the Thing....................................20

PAST PRESIDENTS Marty Cramer - Cramer’s Home Furnishings, Ellensburg, WA...........(509) 933-2172 George Nader - Nader’s La Popular, Gardena, CA............................(310) 327-8585

it’s all about sales & marketing

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

Growing Customers in a Shrinking Economy...............................24

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 Karen Kohlman - West Harvard Furniture, Roseburg. OR.................(541) 673-4221 WHFA/NHFA Liaison David Harkness - Harkness Furniture, Tacoma, WA...........................(253) 473-1234 WHFA Board Members

in every issue

Carol Bell - Contents, Tucson, AZ......................................................(520) 881-6900 Buzz Burnett - Treasures Furniture, San Diego, CA...........................(858) 586-1900

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

Gene DeMeerleer - Furniture West, LaGrande, OR...........................(541) 963-5440 Chris Ehgoetz - Michael Alan, Lake Havasu City, AZ........................(928) 855-6067

Member Profile Dearden’s Furniture . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Mark Flegel - Flegel’s Home Furniture, Menlo Park, CA....................(650) 326-9661 Greg Follett – Follett’s Furniture, Lewiston, ID...................................(208) 743-0177 Eric Foucrier - Linder’s Furniture Mart, Garden Grove, CA................(714) 210-4848

Program of the Month: Banner Marketing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Travis Garrish - Forma Furniture, Fort Collins, CO.............................(970) 204-9700 Giff Gates - Gates Furniture, Grants Pass, OR..................................(541) 476-4627 John Grootegoed - Elite Leather, Chino, CA......................................(800) 826-9971

Advertisers Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Eric Harms - Black’s Home Furnishings, Yreka, CA...........................(530) 842-3876 Julian Jeppe - Reeds Furniture, Agoura Hills, CA..............................(818) 597-7800 Tim Koerner - Koerner Furniture, Coeur D’Alene, ID..........................(208) 666-1525

Contact

Don Lemieux - Naturwood, Rancho Cordova, CA..............................(916) 638-2424 Jeff Lindsley - Lindsley’s Home Furnishings, Grangeville, ID.............(208) 983-1040 Mark Navarra - Jerome’s, San Diego, CA..........................................(858) 753-1549

Phone:

Michael Nermon - Ergo Customized Comfort, Irvine, CA...................(949) 833-0338 Cherie Rose - The Rose Collection, Los Gatos, CA...........................(408) 395-7773 est.1944

Scott Selden - Selden’s - Tacoma, WA...............................................(253) 922-5700 Mike Shuel - Meredith Furniture, Yakima, WA....................................(509) 452-6221 Tom Slater - Slater’s Home Furnishings, Modesto, CA......................(209) 522-9097 Polly Teeter – Del-Teet, Bellevue, WA.................................................(425) 462-1500 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 Events Manager: Cindi Williams.......................................................(916) 960-0277

(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 Facebook: www.facebook.com/WesternRetailer Twitter: www.twitter.com/WesternRetailer Western Home Furnishings Association is the western affiliate of National Home Furnishings Association

Operations/Warehouse Manager: Jef Spencer...............................(916) 960-0386 Communications Planning Manager: Kristy DeVaney....................(916) 960-0349 Managing Editor & Webmaster: Melissa Dressler...........................(916) 960-0385 Membership Manager: Michael Hill..................................................(916) 960-0263 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.

est.1944

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WHFA

ACADEMY

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RRC RETAILER

RESOURCE CENTER

JANUARY 2011

President’s Message

The WHFA Board met in October 2010 and one of the major topics of conversation was our members. We wanted to ensure that WHFA continued to remain relevant to our membership. All of us have one goal: Survive and succeed in the current retail environment. We can only do this by generating profitable sales while providing outstanding customer service. This should continue to be our most pressing challenge in 2011. As I look back at 2010, I can see the subtle and some not too subtle changes taking place in our industry and across all retail in general. I see today’s customer more cautious in how they make their purchase decisions, and with good reason, since our country has undergone one of the most dramatic economic crisis in recent memory. Our customers are still reeling from the negative impact of the recession. Many have lost their jobs and/or their homes, as have their family and friends. So what do we do to counter this? It may take time, but people will recover. They will continue to buy furniture, and move into new homes or apartments. Our job is to make sure that when they are ready to buy, they choose our store, and when they do that, we have the merchandise they are looking for. The challenge we have is in doing the things that will ensure the consumer chooses our store with which they will do business. That only comes about as a result of the last shopping experience they had with us. Was it memorable or was it just OK? As retailers, we know that there will always be a competitor with lower prices, more stores, or a broader assortment. Our job is to ensure that we create loyal customers by providing service that will be hard to match. But do not think that your competitor down the street is just going to stand idly by as you go after the same customer they are trying to attract. Today more than ever, retailers across all industries are realizing the importance of excelling in customer service. Have you noticed an upsurge in companies going all out to provide better customer service? I have, and I am pleased to see that because of this we have become acutely aware that the consumer has choices, and we want them to choose us. If we work from the premise that every sale counts and that no customer should ever walk out of our stores feeling less than “wowed” with our service, we will have a fantastic 2011! I, for one, am excited about 2011 and see improvements in our industry. We are much smarter operators, and as a result when sales increase we will enjoy a more profitable bottom line because we have learned to do more with less. We have learned to keep an eagle eye on expenses and are now managing our inventory with a precision that we had not done in many years. 2010 is behind us, and I am sure most of us are glad to see it go; we now look forward to 2011. The best is yet to come.

Angel Lopez 2011 WHFA President

Angel Lopez Dearden’s Furniture Los Angeles, CA (213) 362-9600 angel.lopez@deardens.com

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

January 2011

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est.1944

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

Motivating Your Staff— Without Spending a Dime!

Western Home Furnishings Association 500 Giuseppe Court, #6 Roseville, CA 95678

Storefront of Dearden’s Furniture in 1910. For complete story, see page 16.

Over & Above Advertising and Marketing!

CHANGE SERVICE REQUESTED

ON THE COVER

www.WHFA.org

JANUARY 2011

Executive Director’s Message Was 2010 a good year or a bad year? It was hard to tell for many of you. It looked to be a good year for many with the first quarter starting off fairly strong in many areas. Still the sluggish housing and job market kept many buyers from making those pent up purchases. Many retailers had an increase in sales compared to last year which is a good thing. However, compared to years past it might not look so good. Things continue to change in our industry and the world as technology and the economy move and shake us up. But 2010 is over and done so let’s look forward to what’s next for 2011. Plan to have a great year. Most important for all of us is to keep a positive outlook. And what better way to do that than to join the industry at the 2011 Home Furnishings Industry Conference in San Antonio, Texas April 30-May 2, 2011. The agenda will be energizing and filled with content for each segment of the industry. You can look forward to the best networking and educational events ever, along with all the fun of course. There is nothing like learning in an environment filled with your peers and everyone else that makes this such a great industry. Already booked are the politically savvy Bob Beckel and Cal Thomas of USA Today’s Common Ground column. Another highlight will be social media guru Erik Qualman, author of Socialnomics, who will be presenting on the implications of social media, and how businesses can tap into the power of this new marketing power to increase sales, cut marketing costs and how to communicate and reach consumers directly. And John Moore will join us to present a keynote on The Bigness of Smallness where you’ll learn actionable methods for how small businesses can thrive in a crowded marketplace. Members of WHFA, NHFA, all of the affiliates and designated partners can take advantage of the great buy one, get one free deal. One registration of $495 must be purchased and the second person can attend for free. Additional registrations for other team members are only $199 each. This makes it easy for businesses to bring multiple people from their store and learn even more valuable tools for business. Look for more information and more content coming your way soon. Attending this conference is really the most important thing you can do for your business this year. Your Association continues to work on the Strategic Plan crafted by the Board of Directors in 2009. Progress is being made in a number of areas including work to increase membership and the participation of members and partners. During the upcoming Winter Market in Las Vegas you’ll see a whole new Retailer Resource Center on the 4th floor of Building C. The new space will provide retailers greater educational and networking opportunities as well as a place to call home and relax during market. There is so much to focus on this year for all of us. Opportunities to improve abound and we look forward to an exceptional year for everyone. Join us for all the benefits you’ll receive as you take advantage of what your industry has to offer and stay with us for all the fun. My best to you for a very exciting and profitable 2011,

Sharron Bradley WHFA Executive Director

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

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December 2010

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(916) 960-0345 sbradley@whfa.org

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CHANGE SERVICE REQUESTED Western Home Furnishings Association 500 Giuseppe Court, #6 Roseville, CA 95678 est.1944

JANUARY 2011

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

2011 HOME FURNISHINGS INDUSTRY CONFERENCE APRIL 30 – MAY 2, 2011

THE

HEART OF THE INDUSTRY ... DEEP IN THE HEART OF TEXAS ...

The opportunity to participate in a first of its kind All Industry Conference is here. A networking, leadership and

educational event that provides content for each segment of our industry. An energizing agenda packed with workshops, general sessions, open forums, and a dynamic Expo with vendors from all across the country. A focused schedule allowing ample time to share innovations and best practices. So join us and see more people, make more connections, share innovations and find more resources. Come and experience what the conference and San Antonio have to offer, leave knowing you’ve experienced something very special.

Photos Courtesy of the San Antonio Convention & Visitors Bureau

VISIT US AT THE

WIN RRC & ENTER SAN ANTONIO! to

RETAILER

RESOURCE CENTER

National Home Furnishings Association Western Home Furnishings Association

LAS VEGAS MARKET

January 24-28, 2010 C-488/496

A TRIP

Enter to win an all-expense paid trip to San Antonio, TX & the 2011 Home Furnishings Industry Conference, an iPad or Visa®Gift Cards!

Industry Beat Record Number of Retailers Participate in Second Annual National Home Furnishings Month Campaign The Month-Long Industry Initiative Delivered Millions in Impressions, Thousands of Social Followers and a Year’s Worth of Home Mortgage Payments for One Louisiana Family The second annual National Home Furnishings Month (NHFM), which culminated with a weeklong sales event Sept. 18-26, set a new nationwide participation standard for both retailers and consumers. More than 9,000 retailers nationwide participated in the consumer-facing marketing initiative—an increase of 30 percent from the inaugural year—which included taking advantage of a listing on the homeyet.com store locator section as well as the complimentary toolkit and instore promotion. Sponsored by World Market Center Las Vegas, the 2010 campaign featured a month-long home mortgage sweepstakes that retailers promoted in their stores and online during the month of September. Nancy Tassin of Lafayette, La. was randomly selected out of 106,192 entries and took the top prize of $24,000—a year’s worth of mortgage payments. Randy Shindle, co-owner of Furniture Country based in Gainesville, Fla. said, “The NHFM sale event gave us a bigger store image by creating a huge hook in our market area. The event had great timing considering what is happening in the housing market. The point of

sale material for advertising and in-store signage was huge as well. All of it combined created a ‘wow’ effect for our staff and our customer.” For more information on National Home Furnishings Month, visit www.HomeYet.com.

WHFA Welcomes Kristy DeVaney Aboard As New Marketing Design and Communications Manager Kristy was born and raised in the Dayton, Ohio area and moved to Sacramento in 2004. Before coming to WHFA, Kristy worked as a graphic design consultant for Placer County, and for four years was the art director and assistant editor for Senior Magazine. Kristy enjoys traveling, going to live sporting events, running and exercise, cooking and baking, writing, painting, singing and being creative. She is also a special events chef and the author of the food, wine, and travel website, cakegrrl.com.

Next Generation-NOW Hosts Successful High Point Launch Party Next Generation-NOW’s High Point Marketing Launch Party last October saw over 80 up-and-coming industry leaders in attendance. The party took place in the Coaster showroom, and the group enjoyed networking while enjoying food and drinks. The goal of the Next Generation-NOW is to provide professional development, networking and hosted forums and give a voice to the unique needs of young furniture professionals. Andy Bernstein, owner of FurnitureDealer.net which is a major sponsor of the Next Generation-NOW group said, “The Next Generation-NOW group is a great addition to the industry—they are our future customers, are innovative and way cool. We really need to engage the younger generations and excite them in order to keep them coming into our industry. Next Generation-NOW is a great way for them to express themselves, learn from others and excite them about the home furnishings industry. I am very excited to be a part of this group and to help move us into the future.”

JANUARY 2011

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The next group event will be taking place in January with an educational seminar, Now or Never?, by David Lively, on Tuesday, January 25 from 4-5 p.m. in C-488/496. Following the seminar, another reception will be hosted in the One-Six Club of the World Market Center.

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

Randy StEwaRt

Relationship Manager, GE Money

lEE GOOdMan

President and CEO, Jerome’s Furniture

JEROME’S COMES tO GE MOnEy and thEy COME tO US FOR thE BESt CUStOMER EXPERIEnCE. Jerome’s Furniture made a number of changes to make buying from them as easy as possible. One change was to offer GE Money financing at the beginning of the sales process so customers knew what they could really afford. Customers appreciate knowing their financing options up front and are more comfortable making a purchase decision. “By staying focused on selling furniture and creating the best customer experience with GE Money,” Lee Goodman says, “we’ll set ourselves apart, stay strong, and gain market share.” GE Money is invested in Jerome’s Furniture.

Stop by Building C Retailer Resource Center Booth #15 gemoney.com

It’s All About Sales and Marketing

Generating Traffic in a Slow Economy

f your business is feeling the slow down, there are steps you can take. Some of the biggest mistakes stores make when business gets tight are to cut back on their advertising and marketing. Even if unemployment is high in your area, you can do business. Just remember you are wasting your time worrying about the unemployment rate in your market. Spend your time figuring out how to reach the 80 to 90 percent of potential customers that are employed. Then give them compelling reasons to come into your store now!

Phil Gutsell GutSELL & Associates owner

JANUARY 2011

Step 1: Research

Take a step back from running your business in an urgent mode. Review where you are today and stop whining about the “would haves… should haves… and could haves.” The market is what it is! Deal with it. First and foremost research your marketing. Be brutally honest with yourself and your store. Keep in mind the best source of information about your stores comes from the people that buy from you. Loyal customers are your best source of this information. Their perception of you is your reality. Send out a survey in your

western retailer

next direct mail piece asking them what you can do to be even more important to them. When are they anticipating their next purchase from you? Of course enclose an incentive to buy from you right now. Sure they may be reluctant to spend their money in slow times but that’s what makes our job a challenge and an opportunity. Measure and survey your advertising results. John Wannamaker, a famous Philadelphia retailer once said, “I know half doesn’t work. I just don’t know which half!” Take a survey with your normal store traffic offering them a chance to win a monthly prize if they will participate in your store survey. On this customer survey coupon provide check boxes for all the various media in your market. Consider having a ranking system indicating how they desire to be notified. Be sure to ask on the survey, “What brought you in today?” Make no mistake—traffic is expensive! Divide your sales by the number of sales written in a year to find your average ticket. Then divide your advertising budget by the total number of sales tickets. For every million dollars you delivered last year with an average sales ticket of $1,000 you brought in 1,000 purchasers. Contact WHFA at www.WHFA.org or (800) 422-3778.

If you spent 5 percent, or $50,000, in advertising per million dollars of volume each purchase costs you $50 per purchaser. If your closing rate is 33 percent, each time a customer enters your store you have already spent almost $17 per person. Once you have collected three months of survey results breakdown the answers to find the best media to place your advertising dollars.

Step 2: Make a Plan

Review your break even. Figure out as close as possible what it takes to make a dollar in your business. Keep in mind that every dollar of expense you add to your business usually means that you have to have $3 in sales just to stay even. Then make a plan! Base the plan on your historical performance. Look at your past five years sales records for each month. Now throw out your best and worst months. This method will usually remove the anomalies that occur over a five year period. Assuming there are no other dramatic affects on your business such as a new location, proceed. Average the remaining three months to see what your typical volume is in January, February, March, etc. Now you have the basis of your monthly plan. With these averages you can figure out with percentage of the year what January’s expectations are. New clients will ask me for an ad to run the first day I show up. “Business is slow Phil, and we need advertising for yesterday!” Many stores declare that their location will bring traffic alone. While there is no question a highly visible location helps big ticket sales, remember that even the best locations still require advertising and marketing. If your rent is low, spend more on advertising. If your rent is high, spend less––but you must spend regardless. No plan, means no business!

Step 3: Review your past winners and update

Every store has winning advertising campaigns. You succeeded by doing successful programs. Look back on your most successful promotions. There is very little “new” out there! I always remember a regular client that once asked if I had anything new. I said, “Yes right here.” As I showed him a brand new campaign, his next question was, “Who else has run it?” My answer was, “Nobody, this is brand new; you will be the first!” He replied, “I don’t want to be the first. “Oh,” I answered, “You want it new and tested.” Then I pulled out our proven winners that have been tested over and over. They include the following ideas: Use your direct mail list. Especially use it in slow times. These customers know and love you and will respond to your offers if it is something special. Offer coupons in your mailer, web page, and social media and be sure to offer a coupon for their friend. Discounts are great but overuse can reduce your gross margins. Consider offering bonuses for buying more! If you haven’t run a major clearance in the last 60 days, run one again. Stop referring to your advertising merchandise Contact WHFA at www.WHFA.org or (800) 422-3778.

as traffic items, door busters and lost leaders. Calling your promotional items these names sends the wrong message to your sales staff. Use my positive term for these items, “Friend-makers”. The number one reason customers give for buying at a particular store is that they bought there before. How do you get them to your store before? By using Friend-makers! Customer’s that buy values from you will return and buy big ticket items or at least give you the opportunity in the future. In addition, “Friend-makers” help create a buying atmosphere in your store today! They communicate value to your ads and when you blend them in with your regular merchandise it creates value in your advertisements as well as your store. Give your events a “reason” to buy not the “season” unless it’s a proven winner. Stop calling your events a “Winter Sale,” “Spring Fling,” “Summer Sizzlers!”, etc. Use dramatic headlines like “Special Purchase” “Clear Out” and always use urgency stressing shorter time frames as in, “Today!” “This Weekend Only” “Three Big Days”. Put urgency into all of your advertising. “Hurry”, “Limited Time” or Limited Quantities” are weak. Be specific. Your customer’s are confronted with thousands of messages daily. Unless you are the dominant store in your market, your advertisement is not lying around the house waiting to be read. It’s being placed in a recycling bin. If you have the right product, at the right time, at the right price, you will always do business unless you leave out the next three steps.

Step 4: Are you advertising enough?

Over the past several years I have often reminded clients and potential clients that you are better off having a high advertising budget and breaking even (or making a small profit) rather than having a low budget and losing money. There is an old adage in advertising, “A business without advertising is like winking at an attractive person in a dark lounge.” You know exactly what you’re doing but nobody else does! Increase your advertising. In this current market I have been retained by numerous new clients that had drastically cut back their advertising. Their sales had declined between 50 and 60 percent of previous averages. They justified their cut backs as savings. After examining their financial statements, they were all at breakeven or even worse, in the red. Many of their competitors had cut back their advertising leaving a terrific opportunity to gain market share. We installed a dramatic and consistent plan. Yes we increased our dollars and in some cases the percentages went up as well. We put our clients back in the market not only creating growth but increased profit as well. Consider using sign walkers with a community club rather than sign walkers that do not represent your store image. Use your warehouse staff, if necessary. In one client’s situation he explained western retailer

JANUARY 2011

It’s All About Sales and Marketing his research showed his customers were not giving him credit for his low margins which were in the mid-30s. My first challenge was to get him to stop discounting. We used half of the gained margins to advertise more and grow market share. The other half went to his bottom line.

Step 5: Synergize the entire event Consistent themes should be used in your media and more importantly throughout your store. Look closely at your store signs and drop tags. Outdoor banners and window signs consistently get rated the highest as the reason customer’s give for coming in today. Their number one answer is, “We were driving by and we saw your signs!” You can avoid being a “dirty window” store. Have your window signs designed by a professional and change them to match your event. The same goes for drop tags. Put the event name on the drop tag. Everything you do either moves your customer closer to a purchase or farther from it. When it comes to merchandising and synergizing your

JANUARY 2011

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displays, use the following guideline, “If it doesn’t move, move it!” When a product isn’t selling and it has been exposed to traffic, relocate it on your floor. In some clearance events we will relocate our best sellers to the back of the showroom. Why? Because your staff will take them there. Furthermore, we need to expose slow movers to the high traffic lanes before we take significant markdowns. The most critical issue is step six. It will reduce your advertising expense and increase your overall business.

Step 6: Educate & Inspire your Sales/Design Staff In real estate, the three biggest reasons for making a sale is location, location, location. If you want to increase your business and make your advertising pay off, educate, educate, educate your team. An ineffective salesperson will drive up your advertising costs more quickly than any other factor. An effective salesperson will reduce and make advertising cost efficient every time. You have already spent the money to bring traffic

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

into your stores. Every time a customer enters your store a purchase is made. Either the customer buys what you’re selling or we buy what they are selling. The most important strategy you can do to improve your advertising results is to improve your sales staff. Prepare your sales staff physically and mentally on dealing with the most common customer excuses. Teach them how to build rapport with total strangers. You cannot close if you cannot get past the greeting. Today, more than ever, you need customer re-approaching skills because even normal traffic plays hard to get. If the customer brushes you off you must return and engage them. There are foolproof skills they need to be taught. When a salesperson says, “Okay” to the following excuse they are done: “I’m just looking”, “I have to check with…”, “This is the first store” or “I have to think about it”. Always answer with an “Oh!” It will give them time to think and avoid giving the customer implicit permission to leave your store, instead teach them what to say. Have contests to stimulate positive behaviors. For instance, getting the customer’s

name in the greeting today is essential. In several clients’ stores after teaching them the proper procedure, we had a contest for the salesperson that learned the most customer names. In each store the success of getting a customer’s name went from 3 percent to over 90 percent. Make sure they sketch and use room planner cards. Reduce buyer’s remorse by congratulating your customer on their purchase. The purchase is about their decision not yours! Instead show your appreciation by sending a “thank you” card or phone call. Congratulating your customers on their purchasing decision increases their buying confidence. This reduces buyer’s remorse and better yet, increases your wordof-mouth advertising. Offer a coupon for referral customers and reward the referral. Always, and I mean always, ask your customer to buy today. Phil Gutsell will be speaking on Actions for Transactions, “When they just aren’t buying!” at the upcoming World Market Center in Las Vegas, NV, Monday, January 24, 2011 at 4 p.m. GutSELL & Associates is located in Chicago, IL and can be contacted at (773) 792-2480 or gutsellassoc@aol.com.

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

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palette demonstrates similar restraint, filled with understated neutrals, yet with nuances and undertones that interact in intriguing ways. Layering organic textures and subtle detailing add to the natural elegance of the timeless look.

Restless Nomad sultry, exotic, primal

Thanks to the Internet, everyone now has a passport to wander the world, soaking up its flavors, images and colors, and stirring them into an eclectic global design stew. Morocco and Turkey are making their presence felt, but there’s no need to stop there. Today’s adventurers feel free to sample from anywhere and everywhere, pairing Persian paisleys with exotic animal skins and Indonesian batiks. Colors, too, wander all over the palette: from dusky darks, to hot vibrant pinks and reds, to earthy food-influenced hues that evoke eggplants and cabbages.

Bold Invention experimental, artsy, expressive

The city never sleeps. Neither do its colors. These high-energy hues vibrate with spontaneity and rebellion. Neon bright, graffiti bold and digitally enhanced to 3-D luminosity, they’re the colors of technology, of avant-garde art and of the entrepreneurial spirit that celebrates shaking off dull routine to do what you love. The eclectic global influences range from the Cynical Realism art movement of urban China to the carnival spirit of Rio de Janeiro, host of the 2016 Summer Olympics. Anything goes, and self-expression is the new metropolitan mantra.

Gentle Medley fresh, airy, innocent

Hard times call for soft colors: the hint of green in a spring leaf bud; the chalky blush of a seashell; the time-etched beauty of a vintage fabric or photograph. Fashion has turned a romantic, nostalgic corner, bringing pastels and parchmentpale neutrals back into the palette. The hues are innocent without being sweet—flirty, yet not feminine. They reflect not just a yearning for youthful innocence and gentler times, but also a refreshing honesty and lack of pretension that are thoroughly modern.

Since its founding by Henry Sherwin and Edward Williams in 1866, The Sherwin-Williams Company has not only grown to be the largest producer of paints and coatings in the United States, but is among the largest producers in the world. For more information on Sherwin-Williams and their 2011 Color Forecast, visit www.sherwin-williams.com. 14

JANUARY 2011

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

presents

NEW RRC LOCATION! Building C, 4th Floor, C-488/496

Join us & enjoy these amenities: Internet & Charging Stations • Complimentary Coffee & Continental Buyers’ Breakfast • Afternoon lite-bites, Beer, Wine •

Celebrate Our

Open House Monday, Jan 24th from 4-6pm

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

Enter to win an iPad, Visa® Gift Cards, and an all expense paid trip to San Antonio, TX & the 2011 Home Furnishings Industry Conference! western retailer JANUARY 2011 15

Member Profile

Pictured L-R: Angel Lopez, Raquel Bensimon, Jim Anderson, & Ronny Bensimon

hat if you walked into a store and suddenly had all of your needs met? Do you need a new sofa? Maybe you want to sign up for cable television? Do you wish to send your family in Central America a new bed? Or, has the entire shopping experience made you want to take a trip somewhere? For the customers who shop at any of the nine Dearden’s locations in Southern California, all of these needs, and many more, can easily be met. And by the way, Dearden’s will Melissa Dressler finance all of these services. Since 1910, Dearden’s Western Retailer has been offering its loyal customers “Service managing editor Beyond Expectations” and they certainly deliver on going above and beyond what anyone expects. While Dearden’s has been At a Glance furnishing homes in SouthStore Locations: Los Angeles Area ern California since 1909, the Type of Store: Full-line additional services they offer started to appear in the 1960s. Year Founded: 1910 During that time, the comNumber of Employees: 500 munities that Dearden’s served Number of Store Locations: 9 were seeing a demographic Top Five Suppliers: LG Acct change as more Hispanic comUs0005723, Frigidaire-Electrolux, munities appeared. Noticing Panasonic, Diamond Mattress this change, Dearden’s evolved Company, Ashley many of their stores to better Website: www.Deardens.com meet the needs of the Hispanic WHFA Member Since 1977 community, including hiring 16

JANUARY 2011

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bilingual employees and offering their own in-store financing to customers who had little or no credit. Over the years, the variety of services offered to the community expanded, and they now offer services beyond those of a typical home furnishings retailer, “We have a variety of services in our stores such as travel agencies, export departments to send furniture to Mexico and Central America, optical and jewelry kiosks, small appliances, Time Warner cable and much more,” said Dearden’s Vice President, Angel Lopez. “The customers that shop at Dearden’s needed these services, so we decided to capitalize on the traffic that we were getting and offer them. We often do surveys and ask for customer feedback on services they might want— if it is feasible, we try to provide it for them.” Today, a majority of the customer base that shops at Dearden’s is Hispanic, but it also depends on the community the store is located in. Dearden’s caters to a wide and diverse customer base that makes up the Los Angeles area. They pride themselves on offering exceptional customer service and creating customers for life. “For us, the majority of sales are generated from longtime customers,” Angel said. “During this economy, that has been our salvation. Customers have remained loyal, and they continue to shop with us.” Contact WHFA at www.WHFA.org or (800) 422-3778.

Dearden’s often sees generations of customers that will shop in their stores. Angel said that even the current mayor of Los Angeles remembers shopping at Dearden’s when he was a child with his mother. Since return customers are a large portion of their business, Dearden’s focuses most of their marketing efforts on this group. “Most of our business is repeat business, so we have an extensive database of customer information. We try to stay in touch with them on a regular basis through emails and phone calls. After every purchase a call is made to the customer to make sure they were satisfied. We also contact them on their birthdays. Maintaining communication with our customers is the No. 1 way we promote our business,” Angel said. Loyal Dearden’s customers also help promote the business. By developing strong relationships with the customer, Dearden’s receives great wordof-mouth promotion from satisfied customers. They have also developed a Loyalty Card program to further benefit their customers. “We call it the ‘Recommend and Win’ program and every customer that recommends someone to the store, receives Dearden’s Dollars,” said Angel. “Plus, every time they purchase an item in our store, they earn a certain percent of dollars for their future purchases.” Along with a loyal customer base, Dearden’s also has a loyal group of employees. The organization currently employs around 500 employees, many of whom have been with the company for more than 20 years. Angel believes that the reason for their great success with low employee turnover has to do with the culture within the business, “For the most part, the people who come to work for us, stay with us. We have a long-term sales force that has been here for many years, some of them for 20 to 30 years,” he said. “We have one of the lowest sales force turnover rates of anyone in the industry. We work with them, and they stay with us. They know the culture, they know us and they know that we care for them, which keeps them here.” Angel also sees that the recession has left a great pool of top-notch salespeople to choose from and Dearden’s has been able to add new talent to their team. When they are looking for new salespeople, they often hire a person who has a great personality, is able to work on a team and has a passion for people. “We look for people who have strong character and have a passion for doing things that are right, no matter what the costs. We can teach people about products and the operational side of the business, but we cannot teach them how to like people,” he said. With loyal customers and employees supporting the business, Dearden’s believes in giving back and supporting the local community. Since 1965, Dearden’s has awarded annual scholarships to Contact WHFA at www.WHFA.org or (800) 422-3778.

deserving, high school seniors that are attending four-year universities. They are also heavily involved with the Para Los Niños organization that provides “at-risk” children a wide array of educational opportunities, family support, and mental health services to help children and their families succeed in school and life. In 2005, Dearden’s was named the “Philanthropic Corporation of the Year” by the Association of Fundraising Professionals and the following year, they were named the WHFA Western Retailer of the Year. For 12 years, Angel has been a large part of the success of Dearden’s as Vice President. With determination, hard work and a management philosophy of leading by example and never asking someone to do something that he isn’t willing to do, Angel has created a team of motivated employees. This year, he will be using his knowledge of the industry and great management skills as WHFA’s 2011 President. “My No. 1 priority this year is going to be focusing on how we can continue to be relevant to our members, and how can we continue to grow membership for the association,” he said. “I am also looking forward to developing stronger relationships with other industry organizations and continuing to strengthen our partnership with NHFA.” With an exciting year as WHFA President ahead of him, Angel is looking forward to growing the Association and continuing to grow Dearden’s business. Like most businesses today, Dearden’s has dealt with their own setbacks over the last few years. Now they are focusing on the future and on generating more revenue. Another thing on the horizon for the Dearden’s business is the eventual succession of the business. While it may be some time away, Angel and the Dearden’s team want to have a plan in place so they can continue furnishing Southern Californian homes for even more generations to come. western retailer

“For us, the majority of sales are generated from longtime customers,” Angel said. “During this economy, that has been our salvation. Customers have remained loyal and they continue to shop with us.”

JANUARY 2011

Operational Excellence

LVM 2011

Las Vegas Market January 24–28 EVERYTHING THAT’S NEW AND UNEXPECTED IN THE WORLD OF HOME FURNISHINGS, ALL IN ONE INSPIRING VENUE. 18

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

Program of the Month

Banner Marketing Use Integrated Marketing Strategies to Increase Sales

Today’s consumers research products, compare prices and features, and make their purchases online, without setting foot in a store.

anner Marketing, a WHFA preferred partner, creates integrated marketing programs that connect with today’s consumers and convert those connections to in-store sales.

It’s about Integration As a WHFA preferred partner, Banner provides the affordable insight and expertise that most independent retailers simply can’t maintain in house. Banner helps retailers increase traffic, sales and market share in a competitive industry by integrating new media with traditional marketing. This approach requires developing and maintaining a website, using traditional advertising strategically, and tracking and measuring results. Banner’s specialization in developing integrated programs specifically for furniture retailers makes it a natural partner for the WHFA. Banner understands consumer shopping habits and contends that many retailers build and then neglect a website, leaving online shoppers with an outdated and irrelevant introduction to a store and brand. In addition, disjointed marketing elements mean that retailers miss opportunities to make a strong impression and apply valuable marketing dollars effectively.

Comprehensive, Coordintated, Consistent Banner manages all aspects of a marketing plan, from tra-

ditional print ads and point-ofpurchase displays to websites and search engine optimization, to results monitoring. All program elements reflect the latest store developments and specials. This uniformity across all marketing, promotions and media helps to build and reinforce a retailer’s brand. Banner’s program centers on driving online traffic to build in-store traffic and sales. Banner creates a valuable reason for consumers to visit a Store’s website, such as discounts or gifts. To benefit, consumers must register online first. This approach grows a retailer’s database for future marketing, enabling them to establish consistent communication and build relationships with potential buyers.

It’s about Savings Banner understands that many independent furniture retailers have limited marketing budgets. Banner’s national buying power means lower costs for their clients. Turn-key programs allow retailers to take immediate action and start seeing nearly immediate results. Plus, knowledgeable customer service representatives are ready to assist with questions or program adjustments. Banner Marketing gives WHFA members the benefit of discounted pricing, as well as free marketing consultation services backed by 26 years of industry expertise.

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

Real Life WHFA Board Member Marty Cramer of Cramer’s Home Furnishings in Washington is a Banner client and is building a solid marketing program. “Everthing we do—whether print, private letter or radio— drives customers to our website for something of value, like a coupon for in-store savings,” said Cramer. “Not only does the website draw customers to our store locations, but it captures valuable customer information.” For Cramer, the strategy is producing an increase in web traffic, store traffic and sales. “I’m pleased to say that Banner’s strategy is working, and despite the tough economy, it is working very well. Today, our website hits are close to 10 times what they were before engaging Banner.” Although Cramer has experimented with other marketing resources, none has provided the level of coordination or the level of affordability as Banner. “Switching to Banner not only saved on cost, but Banner’s integrated program has proven to be more effective,” Cramer stated.“Banner’s people genuinely care about our business: they’re just as excited when we succeed— and are as disappointed as I am when we fail.” western retailer

Kaprice Crawford WHFA marketing director

“Banner’s people

genuinely care about our business: they’re just as excited when we succeed—and are as disappointed as I

”

am when we fail.

–Marty Cramer

Cramer’s Home Furnishings, Washington

Contact WHFA at (800)422-3778 to sign up today.

JANUARY 2011

Next Generation-Now

David Lively The Lively Merchant owner

JANUARY 2011

here were you when Kennedy died? Ask this question to a Traditionalist (those born pre-1946), and they’ll tell you where they were on November 22, 1963 when Lee Harvey Oswald killed President John F Kennedy in Dealey Plaza. They’ll remember how they helped their Baby Boomer children (born 1946-1964) cope with the tragedy. Gen-Xers (born 1965-1981) point to the 1999 plane crash near Martha’s Vineyard that killed JFK Jr., his wife Carolyn and his sister-inlaw, Lauren. Gen-Y (born 1982-2000) will recall the 2009 death of senior Senator Ted Kennedy of a brain tumor after 47 years of service in the U.S. Senate. For the first time in American history, four different generations are working side-by-side in the workplace. Our different memories are a reflection of generational differences in family business, as are different values, different ideas, different ways of getting things done and different ways of communicating in the workplace. In addition to dealing with serious problems like economic recession, downsizing, global competition and emotions like stress or greed; today’s business leaders must also merge the ideals, standards and expectations of four distinct generations working together in one company. There was a time when older bosses and younger workers did what they were supposed to do, no questions asked. There were rules as to how the boss was treated and how younger workers treated older workers. No longer: Roles today are ever-changing and the rules are being rewritten daily. At work, generational differences affect policy, technology, human resources, sales, marketing,

western retailer

and motivating and managing your staff. Generational differences affect communication, morale, employee turnover, and your ability to attract new employees and gain employee commitment. Lynn Lancaster and David Stillman, owners of Bridgeworks, a company dedicated to solving the generational puzzle, believe that people communicate based on their generational backgrounds. Each generation has distinct influencers, views of institutions, reasons for staying in a job, traits, negative stereotypes, values, habits and performance hot buttons. Learning how to communicate with the different generations can eliminate major confrontations and misunderstandings. In order to understand how individuals from each generation will act and react, we all must first understand ourselves. Unfortunately, we suffer from “terminal uniqueness,” the idea that whatever is going on is only happening to me, and no one else would understand my dilemma. Every generation says the same things about the others: “They just don’t get it.” Or the ubiquitous, “They have it so much easier than we did.” These statements are dead wrong. At your family gatherings and in your family business, it’s your job to manage dissimilar values and styles of intergenerational work ethics while figuring out how to get everyone to stop grumbling and start working together toward excellence. Regardless of your generational status, you’ll be a better boss, employee, family member and friend if you recognize and acknowledge the important contributions of each generation, their underlying principles, personality and lifestyle characteristics.

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

When Generations Collide by Lynne Lancaster

Traditionalists

Baby Boom

Generation-X

Generation-Y (Millennials)

Birth Years

Pre-1946

1946-1964

1965-1981

1982-2000

Population Size

75 million

80 million

46 million

79 million

Influencers

Great Depression, WWII, GI Bill, Cold War

Vietnam, Watergate, Human Rights, Rock-N-Roll, Dual Incomes

Sesame Street, MTV, The PC, Divorce, AIDS, loss of “world safety

Technology, Media, Drugs, Gangs, widening chasm between the haves and the have-nots, growth of immigration.

View of Institutions

Loyalty

Want to shape them.

Are skeptical about them.

Judge them on their merits.

Reason for staying or leaving a job

Loyalty to clients and customers

Making a difference

Building a career

Work that has meaning

Traits

Patriotic, loyal, head down, onward and upward attitude, polite, fiscally conservative, faith in institutions, high work ethic, graciousness, may feel overlooked and unappreciated.

Idealistic and optimistic, highly competitive, overwhelming need to succeed, questions authority, elder care concerns, responding to healthcare issues, divorce, death of parents, may be turning inward, have difficulty admitting something is wrong, don’t ask for help, at risk of burnout, experienced teamworkers, skilled mentors.

Eclectic, resourceful, comfortable with change, self-reliant, adaptable, skeptical about relationships, and institutions, high divorce rate, Internet pioneers, entrepreneurial and independent, innovative, full of energy, fun at work, and the generation that “got rid of the box.”

The Digital Generation, globally concerned, integrated, cyber literate, media and technology savvy, expecting information 24-hours a day, realistic, too much stuff to sort through, acknowledge diversity, and expect the same of others, environmentally conscious, and willing to try anything.

Negative Stereotypes

Can’t learn technology, Materialistic, work hardrefuse to give up the reins, not smart, sold out to their not engaged ideals, heavily in debt, and not loyal

Haven’t paid their dues, still too young for executive management, say what they think, slacker, aggressive, annoyingly loud.

Unaware of lack of skills, require nearly constant affirmation, believe they’re entitled, MTV Generation.

Values

Job stability, long-term careers, great reputations, fiscal responsibility, takes care of their possessions and their responsibilities.

Who am I? Where did my passion go? Is it too late to get it back? Seek organizations with integrality, are politically correct, eager to put their stamp on everything, good pay, community involvement.

Be my own boss, entrepreneurial spirit, advancement opportunity.

High value on education, lifestyle balance, work is NOT the most important thing, stepping stones to the future, high tech, innovative, diverse workforce, being their own boss.

Recruitment, Management, Retention

Recognize their loyalty and experience, help them show what they know, evolution not revolution.

Be aware of their competitive nature, acknowledge contributions, and focus on how they can make an impact.

Respect their skepticism, establish your credentials, let them know you like them, talk about how training applies to their career.

Don’t assume they are all at the same level, do remedial training, teach short modules, test often, make it fun, help them visualize how training applies to their job. Teach via collaboration.

Don’t make the mistake of using stereotypes with this limited amount of general information. Not every person in a generation will share all of the characteristics shown in this table. However, these examples hold true in many relationships between co-workers and family members in the workplace. Traditionalists often find themselves worried about the possibility of their Baby Boomer children being unable to retire, or having to move out of their homes and in with their children. Boomer parents wonder whether their X’er kids will ever be able to run the company in a responsible way, while X’ers struggle with the normal frustrations and joys of raising teenagers and young adults. Such is the circle of life! Understanding these characteristics of individuals makes it easier to understand why people do what they do in the Contact WHFA at www.WHFA.org or (800) 422-3778.

workplace and at home. • W hen a Boomer says to another Boomer, “We need to get the report done,” it is generally interpreted as an order; it must be done and done now! An X’er, however, may or may not handle it immediately. This is not a sign of disrespect, but more likely the filter used to determine and set priorities. • A Traditionalist manager gives out bonuses for a job well done. • A Generation X employee, who wants instant gratification, may grumble and think, “Why didn’t I get this last month, when the project was completed?” A Traditionalist, however, is content with financial rewards at anytime. The more urgent needs of the Gen-X trump this situation, so develop timely incentive solutions. western retailer

JANUARY 2011

Generation-Now Next Generation A Gen-X manager who tells a Boomer he has been working hard and should take some time off for a family vacation may expect a thank you, but is likely to hear, “I work to get a promotion, not for a vacation.” Consider a pay package that allows workers to choose a bonus or time off. The distribution center manager assigns a team of individuals from several different generations to resolve a complicated inventory discrepancy. The Traditionalist looks for written instruction and direct, specific requests. The Boomers don’t like to work independently, they expect to have meetings, and it is fine to call them anytime day or night, but X-ers do not want to hear about projects outside of work. Millennials don’t want meetings at all; they expect communication via text or email. Is it any wonder that the team is having trouble getting motivated toward the goal? By understanding the characteristics of each individual’s communication style, she might avoid deadlock and constant bickering. At the beginning of any team formation, an effective leader should consider spending time learning how team members wish to communicate. Awareness of the distinct differences between the generations can help each of us tailor our

JANUARY 2011

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message for the greatest outcome, regardless of the task or the relationship—family, friends, workplace. Good business has always been based on understanding others, and the unique opportunity to integrate the perspective of four different generations only magnifies this goal. To be effective and efficient, and to increase productivity and quality, everyone must understand generational uniqueness and learn how to use it in dealing with unique individuals. David Lively has over 20 year’s hands-on experience in the home furnishings industry. Twice named to Furniture Today’s “Beyond the Top 100” list of independent retailers and 1997 “Ohio Retailer of the Year,” David’s wisdom was won on the front lines and his battle scars have given him compassion for counseling today’s retail warrior. David is on the forefront of a new phenomenon that will soon rock the home furnishings industry: the transfer of authority, responsibility and wealth from one generation to the next. Four out of five family-owned furniture stores are still led by their founder, and 40 percent of them will change hands in the next five years. David has developed a proprietary and unparalleled system for helping identify goals, strengths and opportunities during this crucial time. You can reach David at (740) 415-3192, david@thelivelymerchant.com or visit www.thelivelymerchant.com.

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

IS NOW

WE WANT YOU TO KNOW US BY NAME It’s one you already trust – Leggett & Platt®. In a move to streamline our brands and unify our offerings under a name trusted by millions for more than 127 years, Fashion Bed Group® is now Leggett & Platt® Fashion Bed™. You can expect the same great design, exceptional value, and high level of service. Because we want to help you grow and be successful. Visit us online to learn more. LPCPG.com

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

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JANUARY 2011

All About Sales & Marketing

Customers Want Value: Price and Quality. • Price does not have to sacrifice quality. • Customers are “price-driven” in today’s economy. • You must be competitive. Joseph Connolly Lynch Sales Company President

Customers Buy with a Disposable Philosophy. • Generational selling will not do. • Customers buy more on impulse. • It is our customary method of buying. Customers Need to Return to Your Business. • How do you keep customers coming back to your store? • Constant activity promotes activity. • Customers want to “feel good” about themselves.

JANUARY 2011

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Today’s Customer Seeks Value: Price and Quality How often have you heard it said, “You can’t have your cake and eat it too?” Clients want it their way in today’s “what’s in it for me” society. They live in a hurry-up, “I don’t have time for that”, “when can I have it”, and “I don’t like to stand in lines” world. Everything is fastpaced. Just walk into a Dunkin Donuts coffee shop in the morning and watch their staff cater to quickly pushing out the work crowd as they queue up on their way to work. Those customers want their coffee and to get to work. There’s even an express line for coffee-only purchasers. Starbucks customers certainly don’t quibble over price, but demand what they perceive as superior quality. So much so, they will wait in line for it! Customers often shop at discount shopping malls to get brand names at lower prices. They may not get the Contact WHFA at www.WHFA.org or (800) 422-3778.

fitting or tailoring or latest styles, but they are willing to sacrifice those for a lower price. Perhaps you have run sales in the past, but now feel you are out of options because nothing seems to work anymore. Yet there is no reason why, even in today’s challenging environment, that you cannot have a SALE that will provide profits and still excite customers. What it takes is a sales plan with the lure of sale prices while providing value, without sacrificing the ethics or integrity of your business. If you are not experienced in such sales, then I suggest that you hire a sales promotional specialist with a proven track record of successful sales. Doing so can provide a fresh approach from your own past efforts. There’s no denying that today’s customers expect the best price. They need to know that they received the best possible price, period. And effective sales promotion reassures them of the value they’ll be getting when they shop your store. Even though it may seem that today’s consumer is not as concerned with quality as much as with the price, they still want value! That’s right. Just look at the top 100 retailers and see the price points of their furniture. Above all, in today’s market you must be competitive. As a retailer, you must do everything to be at your best. You should strive to have the best staff in the business, from the sales floor to the office; from the warehouse to the delivery and repair departments. The very BEST! You should exemplify the optimum in customer relations. As a retailer, you should continuously search for concepts and ideas that will keep you one step ahead of your competition. I know of a dealer in Pennsylvania that is constantly searching for and finding new ideas and as a result, his business is always growing. He reads constantly and is always looking to the leaders of our industry. Is it any wonder that his staff has been loyal and that he has virtually no turnover? Or that his building has quadrupled in size, and that he has plans to expand even more to accommodate anticipated future growth? He doesn’t care that there are sales constantly going on around him. He promotes his business and takes care of his customers, making sure his staff is performing at their best.

Customers Buy With A Disposable Philosophy Not so long ago people bought on tradition and loyalty. My grandparents bought from that store, so did my parents and so do I. In fact, some older salespeople even experienced such loyalty. Sadly, for the most part those days are gone. Today’s customer makes shopping and buying decisions based on their own set of criteria, independent of what their parents, and certainly grandparents may have done. Unfortunately; loyalty and tradition are no longer as important, having been replaced by criteria such as style, color, price, and delivery. Customers usually buy the item that WOWS them first. They may not purchase it the first time they see it, but as they shop around they will compare all else to that item, then they will come back to buy it. Ever go into an ice cream parlor and look at all the flavors? One caught your eye. You did not necessarily buy it at first because you wanted to “browse”. But in the end, the flavor that first caught your eye won out. Many customers buy furniture based on what they think will best show off their various rooms. Customers want to impress their friends and family and will buy by sight that which impresses them first. We live in a disposable society. Buy or lease an automobile, then trade it in for a new one within a few years. Buy a new cell phone when the newest Contact WHFA at www.WHFA.org or (800) 422-3778.

western retailer

JANUARY 2011

model comes out. Replace our 36-inch flat screen television with a 42-inch, then 50-inch, then 60inch. Remember the lines when the first iPod came out? For the past 20 years, we have been teaching customers to throw items away and replace them with new ones! Why should it be any different 07-07-customdesignnhfa_furniture world 6/2/10 4:11 PM great, Page 71 with furniture? If it looks has a good price

tag and can give the customer five years, maybe they don’t expect any more. It is our “Disposable Society”. Are we advocating that retailers should offer cheaper, lower quality “junk” that appeals to this “disposable” society?

You Need Customers to Return to YOUR Business

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In today’s economic climate, the average retail store cannot afford one-time sales! Your store needs your customers to return. How do you keep those customers coming back? First, you must create an experience for them that is extraordinary. To do so, you must go the extra mile, exert more than the usual effort. Many years ago, when I first started selling furniture, a couple walked in and stated they needed a bunk bed for their young boys who seemed to keep falling out of their twin beds; they were buying the bunk bed for the “guard rail” that was a component. I told them they didn’t need to buy all that, but that for a mere $19.95 each they could purchase a couple of guardrails to place on their current beds. They bought the guardrails, thanked me profusely, and said they would buy all their furniture from me whenever they needed any. Well, you can imagine that this story circulated throughout the sales force, and everyone thought I was naïve in thinking that if they ever even came back to that store, that they would remember me. After all, I was the only salesperson, amongst the 15 who had been there 10 years or more, who was under 45. I was just a rookie. Three weeks later, those customers came in, asked for me, and in front of about six of my peers, told me they had decided to buy furniture for their living room, bedroom and dining room. You should’ve seen those salespeople’s’ faces, and wow, what a sale! We had established a relationship! I had their TRUST! Contact WHFA at www.WHFA.org or (800) 422-3778.

How do you keep customers coming back? And all for $19.95. They also sent family members and neighbors to see me, which contributed to my becoming the No. 2 salesman that year, and No. 1 every year after that. Second, the retailer needs to be creatively thinking of ways to appeal to the customer. Remember back when you were dating that special someone? You did everything you could to make sure everything went smoothly, while going out of your way to make the experience memorable. You know how you feel when the clothing salesman brushes your shoulders and says that jacket drapes you perfectly. It just feels like a million bucks! That is how your customer should feel every time they purchase from you. How do you achieve that? With extraordinary service and with intentional care to every detail. Treat them so that when they think furniture, they think of YOU! That creativity in appealing to your customer should also carry over to your advertising. You must keep your name constantly in front of current and potential customers. YOU must be the brand. Itâ&#x20AC;&#x2122;s really quite a simple formula:

NAME + LOGO X

REPETITION

BRAND AWARENESS Third and lastly, customers really desire two things. If every salesperson, designer, support help, delivery service, and owner could master these two principles, then their closing ratio would approach 100 percent and their customer base would grow by leaps and bounds. What are those two things? Customers want an honest VALUE and most importantly, they want to FEEL GOOD about their purchase. Master these two principles and you will have customers for life.

Joseph Connolly is president of the Lynch Sales Company and has been employed by the 97-year-old, third generation firm for over 21 years. He has had the privilege of interacting with retailers, staff employees, and customers throughout his tenure with Lynch as he has visited every state in the United States, every province in Canada, as well as every country in the United Kingdom. Mr. Connolly has been affiliated with the furniture industry in various capacities for more than 30 years. Over the past several years he has spoken numerous times at the High Point Market in their Retailer Resource Center.

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

western retailer

JANUARY 2011

Get Involved! WHFA’s Annual Membership Meeting WHFA’s Annual Membership Meeting Tuesday, January 25, 2011 Breakfast at 7:30, Meeting at 8:00 a.m. Retailer Resource Center, C-488/496 The WHFA Annual Membership and Board Meeting will be held Tuesday, January 25, 2011, at the Winter Las Vegas Market from 8:00–8:30 a.m. The meeting will be held in the new Retailer Resource Center in C-488/496. Members are welcome to stay and attend the WHFA Board meeting that immediately follows. Members will vote on new and re-elected directors to the 2011 WHFA Board of Directors. In addition, the 2010 WHFA President will pass the gavel to the incoming President. All WHFA members are invited to attend this breakfast meeting. Reservations are requested. For more information, please contact Cindi Williams at (800) 422-3778 or cwilliams@whfa.org.

JANUARY 2011

western retailer

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

western retailer

JANUARY 2011

GetMemoriam Involved! In Past WHFA President Lloyd D’Augusta Loses Long Battle with Cancer Last October, industry veteran and WHFA Past President, Lloyd D’Augusta passed away after a long battle with colon cancer. Former owner of Westlake Furniture, Daly City, Calif., Lloyd was a familiar face to those in the industry and the Association. In 1989, he served as WHFA President and during that year, he oversaw the build out of a permanent Retail Resource Center at the San Francisco Mart and the creation of the Association’s publication, Western Retailer magazine (formerly known as Western Reporter). After his store closed, Lloyd became a wholesale rep and continued to enjoy his friendships he had made with those in the industry. In his later years, he developed a love for training and showing his Portuguese Water Dogs. He is survived by his wife Karen, his children Lisa, Greg, & Amy, grandchildren Jessica, Angelica, Dominic, & Nicolas, his sister Susan and brother Paul. The industry and the Association will truly miss Lloyd.

Advertisers Index Please support the advertisers that support your magazine. Advertiser Page Phone/Website ACA................................................................... S-10.................. (800) 882-8588 Banner Marketing............................................... 22.................... (800) 843-9271 Crypton............................................................. S-22.................. (800) 522-8266 Custom Design Software................................... 26.................... (800) 884-0806 Delivery Solutions............................................ S-21.................. (800) 335-6557 Diakon Logistics................................................. 28.............(877) 700-4297 x 15 Emerald Home Furnishings................................ 2..................... (800) 685-6646 Furnserv............................................................. S-21.................. (800) 495-7876 Furniture Wizard.......................................... S-2, 4 & 29............. (619) 869-7200 GE Money...................................................... 9 & S-13............... (866) 209-4457 Genesis............................................................. S-22.................. (509) 536-4739 Home Furnishings Industry Conference...... 7 & S-22............... (800) 422-3778 High Point Market..........................................25 & 27............... (336) 869-1000 iFurniture.net...................................................... 12............. www.iFurniture.net JRM Sales & Management.............................. S-20.................. (678) 574-0937 Leggett and Platt............................................... 23............... www.LPCPG.com Micro D....................................................S-7 & Back cover........ (800) 964-3876 Next Generation-NOW.................................... S-4................... (800) 422-3778 NuGuard........................................................... S-19.................. (855) 684-8273 PROFITsystems, Inc...................................... S-23 & 31.............. (866) 453-5010 Retailer Resource Center.............................. S-6 & 15............... (800) 422-3778 Truckskin........................................................ S-11 & 21.............. (877) 866-7546 STORIS Management Systems....................... S-15..................(888) 4-STORIS WHFA Membership......................................... S-20.................. (800) 422-3778 World Market Center......................................... 18.................... (800) 422-3778

JANUARY 2011

western retailer

Lloyd D’Augusta Nov. 20, 1940–Oct. 30, 2010

Advertising Inquiries & Rates Contact: Cindi Williams, WHFA Advertising 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 salespeople. Distributed to home furnishings retailers 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. January 2011, all rights reserved.

Western Retailer:

Read by furniture retailers in the West

Distribution:

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

Marketing Philosophy:

Western Retailer focuses on business market trends in the furniture, bedding, flooring and accessories industry. It highlights sales, marketing, operations, showroom design, trends, succession planning and industry events.

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

Simplify…Simplement…Simplementation In order to focus on your business, not your computer network, you might need to simplify the whole process. If your perfect computer solution includes real-time inventory management, merchandising, warehousing and distribution tools, robust customer relationship management as well as a suite of financial and business metric reports - all without the need to manage a complicated computer network, PROFITsystems has the solution you are looking for. PROFITon-demand delivers the features and benefits that retailers have relied on for years, in an internet-based format that eliminates the expense of purchasing and maintaining a network, making it easier to run your business.

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800.888.5565 www.profitsystems.com

“PROFITon-demand fits the scale of our operation perfectly. It is straightforward and you get everything you need.” Ken Sissons Domaine Fine Furnishings and Design Calgary, AB, Canada Contact WHFA at www.WHFA.org or (800) 422-3778.

western retailer

JANUARY 2011

Come and get it. It’s not just about being online. It’s about inspiring and engaging the consumer. That’s what MicroD-powered websites do. In fact, over 85% of the top 100 brands and retailers use MicroD to:

www.microdinc.com

• Enable consumers to configure thousands of products online. • Achieve higher search rankings — store & products. • Build loyalty by extending the amount of time customers spend on your site. • Provide valuable leads and information about buyers’ interests.

To get the full picture, call 800-964-3876. Or email sales@microdinc.com

Online marketing solutions for the furniture industry.

Please visit us at Las Vegas Market, RRC booth C-488/496 Jan 24 – 28, 2011.