June Western Reporter by Western Retailer Magazine

trends

Journal of the Western Home Furnishings Association

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june 2008

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Journal of the Western Home Furnishings Association

table of contents

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features

EDITORIAL STAFF Managing Editor: Melissa Dressler................................ mdressler@whfa.org Publisher: Melissa Robinson............................................ mrobinson@whfa.org Art Director: Rebecca Arnn...................................................rarnn@whfa.org

President’s Message...................................................7 Editor’s Message........................................................8

2008 WHFA OFFICERS AND EXECUTIVE COMMITTEE WHFA PRESIDENT Keith Koplan - Koplan’s Furniture, Vancouver, WA.............................(360) 695-3388

Feature Article:................................................ 12 Consumer Life Stages

PRESIDENT ELECT Marty Cramer - Cramer’s Home Furnishings, Ellensburg, WA...........(509) 933-2172

Five Things You Can Do to Survive and Thrive in Today’s Challenging Economy!............................20

VICE PRESIDENT Claudia LeClair - Fiesta Home Furnishings, Scottsdale, AZ...............(480) 951-3239

Staying Afloat in a Downturn Economy Part 1 of 4.............................................................22

TREASURER Angel Lopez - Dearden’s, Los Angeles, CA........................................(213) 362-9600 SECRETARY Chris Sanders - Everton Mattress Factory, Inc., Twin Falls, ID..........(208) 733-3312 EXECUTIVE COMMITTEE CHAIR George Nader - Nader’s La Popular, Gardena, CA............................(310) 327-8585

Tough Times — We Must All Work Together............36 Finding Green: The Retailers Dilemma .....................40

PAST PRESIDENTS Marvin Kerby - Kerby’s Furniture, Mesa, AZ.......................................(480) 834-3888 Cherie Rose - The Rose Collection, Los Gatos, CA...........................(408) 395-7773

departments

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

Industry Beat..............................................................10

AT LARGE EXECUTIVE COMMITTEE MEMBers Bob Ammirato - Design Galleria By Valentine, Sacramento, CA........(916) 922-2200 Taylor Ganz - McMahan’s Furniture, Los Angeles, CA....................... (310) 473-8411 Howard Haimsohn - Lawrance Contemporary, San Diego, CA.......... (619) 291-1911 Lael Thompson - Broyhill Home Collections, Aurora, CO...................(303) 360-9653

Retailer Notes..............................................................10 Community Partnering

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

Retailer Resource Center............................................24

WHFA Board Members Gary Absalonson - Walker’s Furniture Inc., Spokane, WA.................(509) 533-5500 Eric Blackledge - Blackledge Furniture Co., Corvallis, OR.................(541) 753-4851 Dave Cavitt - Furniture Enterprises of Alaska, Anchorage, AK...........(907) 264-5210 James Copitzky - Bassett, Tukwila, WA..............................................(206) 575-8877 Gene DeMeerleer - Furniture West, LaGrande, OR...........................(541) 963-5440 Jack Fendrich - Brenner’s Furniture, Eugene, OR.............................(541) 345-4451 Greg Follett - Follett’s Furniture, Lewiston, ID....................................(208) 743-0177 Eric Foucrier - Linder’s Furniture Mart, Garden Grove, CA................(714) 210-4848 Giff Gates - Gates Furniture, Grants Pass, OR..................................(541) 476-4627 Ron Hoesterey - Royal Mattress Company, Inc., Orange, CA............(800) 987-6925 Paula Holt - Home Collections/Dining Collections, Salem, OR..........(503) 589-4358 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 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 Sandy Lundgren - Olsen Furniture, Shelton, WA................................(360) 426-4702 Robert Myers - Ashley Furniture HomeStore, Chico, CA....................(530) 345-2616 Michael Nermon - Ergo Customized Comfort, Irvine, CA...................(208) 326-3407 Ray Nunez - Furniture Savings Center, Sacramento, CA...................(916) 487-6005 Sally Servidio - Silverado Home & Design, Napa, CA........................(707) 251-0888 Tom Slater - Slater’s Home Furnishings, Modesto, CA......................(209) 522-9097 Valerie Watters - Valerie’s Furniture and Accents, Cave Creek, AZ....(480) 483-3327 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 Operations/Warehouse Manager: Jef Spencer...............................(916) 960-0386 Communications Planning Manager: Melissa Robinson................(916) 960-0349 Creative Director: Rebecca Arnn......................................................(916) 960-0350 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 (California): Adam Gardner........................(916) 960-0291 Accounting Assistant: Melody King.................................................(916) 960-2476

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

Board Member Q&A....................................................23 with Angel Lopez Member Profile . ........................................................28 Hauser’s Patio, San Diego, CA Program of the Month................................................31 Sherwin-Williams Paint Meet the New Members............................................33 Fast Forward...............................................................35 Letting Go is a Two-Way Street Safety Corner..............................................................39 Ergonomics and Stretching Product Focus.............................................................44 What is “Sustainable” Furniture? Industry Dates............................................................47 Tips & Tricks...............................................................49 Fun Facts & Figures....................................................50

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

(916) 784-7697

Mail:

500 Giuseppe Court, Suite 6 Roseville, CA 95678

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

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June 2008

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president’s message In the past week I was out to dinner with a couple of WHFA members from different parts of the Northwest, and when the check came, one reached to pay for our meal. When asked why he felt the need to treat he simply smiled and said, “I am the closest to breaking even of the three of us.” There is a lot of negativity facing our operations and our customers every time they turn on the TV, radio or open the newspaper. While this certainly is not a new trend; the financial implications are disturbingly more acute than many of us have seen in over two decades. We are an industry that is highly dependent upon the housing market and there are few, if any, markets where the trend isn’t down; in many cases significantly. Fortunately, or some would say unfortunately, I have been in the business long enough to know that downtrends are followed by recovery and uptrends. How we behave during the down cycle will ultimately have a large impact on the recovery period as well. It is not good enough to just hunker down and ride out the storm. This is the time to review what we were doing right during the good times and learn from what went wrong. It is easy to get careless with overhead when business is booming. We need to plan for the future now to ride the next cycle. It is surprising to realize how fast we can lose money and how hard it is to recover that loss. Resolve to learn more about breakeven and fixed expenses. Here’s a trend to think about: How much effort have we put into advertising that simply screams price without imparting value? Maybe your market isn’t like that but in my travels I have yet to find many examples of ads that do much more than boast how low we can price something for sale. To those that would argue that it drives sales; I would suggest that in tougher times it takes much more than price to drive business. Most consumers don’t believe our claims anyway. Could it be that the same couldn’t be said for good times. Another trend to work on: As goods arrive from High Point and decisions are made at Las Vegas Market, look for ways to improve margins by offering value not just price. When you learn more about breakeven and fixed costs, you will also learn that no cost-cutting can begin to affect the bottom line as much as a raise in gross margin of even 1 percent. There will be a lot of “market specials,” and you can be certain that if you make more money and offer a good value, you will be here to enjoy the up trend that is sure to follow. As in all matters of health, best wishes for a speedy recovery!

Keith Koplan 2008 WHFA president Koplan’s Furniture Vancouver, WA KKoplan@koplans.com

ON THE COVER The Santos Coffee Table by Environment Furniture, Inc. For more information, please visit www.EnvironmentFurniture.com. Photo taken by Bennt Chan. Contact WHFA at www.WHFA.org or (800) 422-3778.

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June 2008

editor’s message If it Bleeds, It Leads Unless you have been vacationing on a tropical island, you are probably aware of the slow economy that we are going through. The housing market slump, rise of gasoline prices and the weakening dollar has financial experts and the media reporting about a possible recession — which is making all of us fearful for the worst. While the economy is struggling in most areas, it is also thriving in others — you just don’t hear about it. In my college journalism classes, I learned a phrase that is often used in the media industry: If it bleeds, it leads. Right now, in the eyes of the media, the economy is “bleeding,” therefore they are making headline news out of it. Retail industry consultant George Whalin, wrote in his March Retail Management E-Letter about the media’s effect on our outlook on the economy. He said, “Much of what is written about our industry… is often baffling. One publication will write what a great month retailers had while another reports how tough things were for retailers that same month.” Whalin goes on to say that if you believe some of what the media are saying about the economy, then you might become seriously depressed and suggests that you don’t take the media reports as an accurate account of what’s really going on in retail. Don’t let this slow economy depress you and your team — that will only make the situation worse. There is nothing more frustrating then walking into a store and being greeted by a salesperson that already looks defeated. There are still people out there shopping for home furnishings, so everyone needs to be prepared to give them the best service when they enter your store. While there is no doubt that the economy is hurting the pocketbooks of millions of Americans, there are also a small few who are embracing this economic downturn and using it to their advantage. One example of this is a friend of mine and her fiancé who recently purchased their first home because housing prices that were once out of their reach were finally affordable. Having received an amazing deal on their home purchase, they decided to spend the money they had been saving on new furniture and appliances. Or there are the customers like my parents — empty nesters with expendable income since their children are out of the house and on their own. While they may be spending more money on gasoline every month, they also have fewer mouths to feed and people to clothe. They have money and aren’t afraid of spending it! Adjust some of your advertising strategy to target these special groups that are not feeling the effects of the economy. While they are smaller, targeted groups, it may help get people into your store. It is always better to have someone in your store than no one at all. This issue of Western Reporter will look at industry trends, including how to thrive in this economic downturn. I hope you enjoy this issue and don’t let the slow economy get you and your team down — find ways to reach new customers and thrive.

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

looking forward to July 2008 The Be-Back Bus Isn’t Coming Back Breakthrough Recruiting Methods Firing Up Your Salespeople in a Down Economy ... and much more!

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

June 2008

Member Profile: 2008 WHFA Retailer of the Year Jerome’s Furniture, San Diego, CA

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

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industry

beat

Michael Nermon Elected Vice President of Speciality Sleep Association WHFA board member, Michael Nermon was elected vice president of the Speciality Sleep Association. The election took place during the January 2008 Las Vegas Market. Nermon is the founder and president of Ergo Customized Comfort, a specialty retailer in Southern California. He has an extensive 20-year career in the Michael Nermon, bedding industry, formerly as executive Ergo Customized vice president of Maxwell Products, the Comfort adjustable bed division of Leggett & Platt. He was first elected to the Specialty Sleep Association board in 2000.

Industry Salutes NHFA Retailers of the Year Morris Furniture Co., Inc., and Great Lakes Home Furnishings – Great Lakes Interiors are National Home Furnishings Association’s 2008 Retailers of the Year. The industry honored the accomplishments of these two companies at a gala dinner, reception and awards presentation on Tuesday, April 8 during the High Point Market. Ken Machiela, Morris, headquartered in Fairborn, Ohio, Great Lakes Interiors operates 10 stores in Southwestern Ohio

and Northern Kentucky and a Clearance Center in Fairborn. Morris is NHFA’s 2008 Retailer of the Year winner in the over-$10 million annual volume category. Great Lakes which operates three stores in Holland, St. Joseph and Grandville, Mich., took honors in the under-$10 million category. Morris owner Larry Klaben accepted the award for his company. Great Lakes principals that shared the celebratory spotlight are Ken Machiela, CEO, and Randy Wassink, president. Retailers of the Year are selected on three criteria: service to the home furnishings industry, contributions to the communities where they do business, and creative leadership of their own companies. Larry Klaben, Morris, now one of Ohio’s largest Morris Furniture Company, Inc. privately-owned home furnishings companies with 450 employees was founded in 1947 by Morris Lieberman and his son, Bert, as a single small location near downtown Dayton, Ohio. The company was purchased by Larry Klaben in 1998. Great Lakes, now in its 44th year, has its origins as a Holland, MI floor coverings store founded by Machiela. Both Klaben and Machiela serve on the NHFA Board of Directors and are active in local retail activities as well as community organizations and charitable causes.

retailer notes Community Partnering

from Brad

Marcus store for the last eight years to hold We have been partnering with our local Neiman in our store, and Neiman Marcus decorates our Home for the Holidays event. The event is held and they design extravagant holiday-themed al, all of our dining tables in their best china and cryst during the event, highlighting some of the show on fashi mal infor an host also They table displays. items that can be purchased in their store. with us for events because they were newly We originally approached Neiman’s on partnering dy very similar clientele. C.S. Wo & Sons had alrea established in the Hawaiian market and we had ed want an’s came into the market, they been established for almost 100 years, so when Neim on the islands. Over the years, Neiman’s name lished to work with someone who had an estab with us on our events, and their many years of has gained a lot of added business by partnering partnership has been an honor to us. our Home for the Holidays event on the This last year, we also partnered with Neiman’s for partnership for both of us, and our goal is to mainland in Costa Mesa, CA. It has become a great our events to give our attendees something extra. always bring outside people or an outside venue into

June 2008

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Brad Harris Division Manager of C.S. Wo & Sons C.S. Wo & Sons PO Box 1417 Honolulu, HI 96806 (808) 545-5966 Bradleyhharris@aol.com Full-line In our travels to visit WHFA members we ask questions regarding retail furniture operations that may provide ideas for other members to try. If you have a question you would like to suggest, email Melissa Dressler at mdressler@whfa.org.

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

feature article

Consumer Life Stages â&#x20AC;&#x201C;

How Stage in Life Influences the Buying Habits of Consumers

he consumer of the 1950s is no more. Donna Reed and Father Knows Best are a distant memory. With the 1960s came social upheaval and the 1970s saw the onset of a blurring of the roles in our society. These decades in many ways brought about a cataclysmic shift in our social order. With that shift came the onset of change in consumer behavior. The changing role of women both economically and socially has had a major effect on the basic structure of the family. This change has brought into play new life patterns, such as marrying at a later age, delaying the start of a family, choosing not to have children or managing a two-income household with children. The traditional family with a single male breadwinner is no longer the rule. In 62 percent of all married households, the wife is employed outside the home (U.S. Bureau of the Census, 2006). 12

June 2008

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

Technology too has had a huge impact on the consumer’s life — the Internet, cell phones, “smart” kitchen appliances. In this world of individualism where people are choosing the news subjects to be delivered to their computers, cell phones, or PDAs; the music they download to their MP3 players; and the DVRs that allow them to choose their television programming, we can no longer look at consumers as one large, somewhat nebulous group. We must view them in a more structured way. Our methodology allows us to analyze the consumer population in several different ways. We can look mainly by age and income, by psychographics, by lifestyle cluster and by life stage. Each of these factors identifies specific attributes of the consumer. Our emphasis will be on life stage characteristics. To determine the “life stage” of consumers we use the basic demographics of age and income. By analyzing responses to research mechanisms, we are able to assign consumers to specific life stage segments. While a consumer may not exhibit every attribute of a life stage, we can profile when the greatest percentage of responses correspond to that life stage. The information in this article examines the effect that life stage has on the consumer’s buying habits in relation to home furnishings. Surveys conducted by Impact Consulting Services, Inc. provided the data for this article. Figure 1 presents the percentage of households in the U.S. by age. We are looking at percentage of households, not total population figures. Of interest to the furniture retailer is how age and income affect the furniture purchasing habits of the consumer. Because furniture consumers in specific age segments share certain “life situation” characteristics, the youngest consumers will differ from the older consumers, often not because of interest in furniture, but because of experience level, financial situation or shopping patterns. The following looks at each age group.

underestimate their importance to the retailer since they embody the core furniture consumer 8-10 years hence. We designate this group as “Getting Started.” These are young people launching themselves from the nest (often with healthy assistance from parents). They have completed their education, have established a household of their own and are probably living in apartments or condominiums, often with roommates. They have their first jobs and will begin to “feather their nests.” In a recent study done by Impact Consulting, we found this age group was more likely than other age groups to state they were not satisfied with the way their homes were decorated. Thus, furniture shopping becomes one of the new “adult” experiences for them. Upon evaluation of shopping patterns, we find they begin their shopping process by pre-shopping via the Internet. Many of the characteristics of these young consumers suggest an inexperienced shopper who lacks confidence in his or her judgments. They are concerned about their inability to gauge the quality of furniture; they are not brand aware; they have difficulty picturing how the furniture will look in their homes; and they seek advice or direction from a friend or relative.

Lee Brown practice manager for consumer research Impact Consulting Services, Inc.

The Under 25’s If we place a generational label on these consumers, they are the younger Generation Y’s born from the 1980s to the 2000s. They make up about 5.07 percent of the U.S. households. While they represent a relatively small population, do not

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

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June 2008

Some traits relate to finances. This group is likely to look first at the price tag of a product, to buy when furniture is on sale, is less likely to buy expensive furniture and more likely to buy in furniture stores with minimal service or warehouses with lower prices. Moreover, they compare prices. This age group may be a willing customer, but potentially a harder sell for more expensive goods. Figure 2 shows the various life stages. As you can see, the Under 25 consumer with an income below $35,000 is most likely to be living “On a Shoestring.” Of the total 5.07 percent in this segment, 3.28 percent are in this category. Those young consumers in this age group who have incomes of $35,000 and above (1.79 percent) have some “breathing room.” Obviously, the higher the income, the easier the breathing.

The 25–34’s The 25–34’s consumers comprise 15.95 percent of the U.S. households, three times the number of Under 25’s. These consumers are rushing headlong into responsibility, truly “Getting Serious.” This is the younger component of Generation X, frequently the “first house” crowd. They consist of the newly

married’s, couples who are living together, singles with or without roommates. They are now assuming the heavier responsibilities of adulthood often including starting their families. Many have moved from the earlier stage of this segment — the Friends TV sitcom stage — to a phase where their careers or work situations have become more established. Frequently they have had salary increases. They feel more comfortable with the idea of replacing the furniture they either had in college or “borrowed” from their parents’ home. This group has gained some experience over the Under 25 group when it comes to furniture shopping. For instance, they display more confidence than the younger group with a higher percentage saying that they enjoy looking at the latest furniture designs and will go to a furniture store frequently just to browse even if not planning to buy (42 percent versus 38.46 percent for the Under 25’s). However, there is a degree of inexperience still present. To address this, they are more likely to purchase all items at one store in order to achieve a “total” look. Similar to the Under 25’s, they feel they are unable to gauge the quality of furniture and are not satisfied with how their homes are decorated. Only 12 percent noted satisfaction. This group would sacrifice shopping in a smaller store where they would get added personal service if they were required to wait for a special order delivery. They also are less likely to shop in a store where they could get knowledgeable service, but would have to pay higher prices. Therefore, in matters of finance, they are willing to sacrifice service for price. As you can see in Figure 2, of the 15.95 percent in this category, the 25-34 year-old consumer with an income below $50,000 is most likely living a “Basically Basic” lifestyle (8.97 percent). Those young consumers in this age group who have incomes of $50,000 and above (6.98 percent) are able to “Add the Extras.” It is likely the “extras” deal with the needs of young families.

The 35–44’s The 35–44’s, the older Generation X component, comprise 19.7 percent of U.S. households. These consumers are into the dayto-day business of juggling careers and family activities. As people wait longer to marry and/or have children, we find households in this age segment include children of varying ages from infants continued on page 16 14

June 2008

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

continued from page 14

to older teenagers. Family activities absorb a large portion of time for this group. Added to the demands of family are the responsibilities of career building. They are accurately termed “Pursuing Aspirations.” With respect to age, these consumers are “typical” furniture customers since they are the heart of the furniturebuying crowd. They have achieved a greater experience and confidence level in the furniture buying process. Generally, brand awareness is not essential to them since they are not afraid to buy a product if they like it even though the brand name may not be familiar. Their time constraints come into play when we see they are more likely to shop in stores that carry products with the looks/ styles they prefer. They are practical since they are more likely than other age groups to look for sales and promotions earlier in the shopping process. The fact that they are less likely to purchase items in one store in order to achieve a “total” look illustrates the confidence they have in their style sense, a different profile from the 25–34’s. What does this group expect/want/get on the retail sales floor? The one area where they state a definite preference is the desire to have a play area for children, a choice of a particular life stage. The other areas involve things they don’t want or don’t get in their shopping experience. They are not interested in a daycare facility onsite or a reading room with design books and magazines. Concerns about child safety and time issues are most likely present in these two areas. These consumers do not expect much beyond order taking from the salesperson and that is what they think they get. They also feel they receive less style advice from the sales personnel. If this is a case of “you get what you expect?,” this should give us pause. Are these areas ones where we are failing our customers? 16

June 2008

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Regarding income, we find that, of the 19.74 percent of consumers in the 35–44 age category, those with an annual household income below $75,000 (12.7 percent) are concerned about practical matters. We expect that the majority of the “Practical Picture” group is rearing families, an expensive process. For the more affluent, the 7.04 percent earning over $75,000 per year who are classified as “Generous Brush Strokes,” life is more relaxed.

The 45–54’s The 45–54’s make up the highest percentage of U.S. households by a slight percentage — 21.58 percent. This is the Second Boomer wave and, while they harbored some cynicism and pessimism in their younger days, they have settled and are now accomplishing many of their career goals. In the best-case scenario, depending

upon their age, they are anticipating or reaping the rewards of climbing the ladder. This group is “Getting Comfortable.” These mid-life adults are established in their careers/jobs, social lives and homes. Some are preparing for children to leave home for separate lives. For many this may involve considering a major financial hurdle — the cost of a child’s higher education. The consumer at this age usually has gained experience and confidence over the years. They are, therefore, generally at ease when it comes to furniture shopping. Consider their furniture shopping attitudes. • They are more likely to feel comfortable browsing in a furniture store. • They enjoy shopping for furniture and are more likely to think that furniture

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

stores are exciting places. â&#x20AC;˘ They feel very comfortable when judging the quality of furniture. â&#x20AC;˘ They are likely to be satisfied with how their homes are decorated. â&#x20AC;˘ They have the confidence in their opinions so they will shop in various stores to achieve a â&#x20AC;&#x153;totalâ&#x20AC;? look in a room. In the area of income, 15.75 percent of this age group has an annual household income below $100,000. Their life stage is one of â&#x20AC;&#x153;Fundamental Comfort.â&#x20AC;? The confidence acquired from experience and knowledge gained over the years has led to this comfort level. For the 5.83 percent with incomes over $100,000, they have more freedom to indulge in the â&#x20AC;&#x153;good life.â&#x20AC;? This â&#x20AC;&#x153;Prosperous Indulgenceâ&#x20AC;? attitude is often considered a reward for earlier years of hard work and sacrifice.

of the store personnel in a furniture store and are likely to say they received less assistance in all areas (product knowledge, style advice, room layout, color coordination, order writing). â&#x20AC;˘ They are more likely to shop in a store that has knowledgeable service and they donâ&#x20AC;&#x2122;t mind paying more for the products. â&#x20AC;˘ They are more likely to patronize a store that only carries products with the looks they prefer. In the area of income, the 55-64 year-olds make up 16.12 percent of the U.S. households. We consider income

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levels below $100,000 to be ones in which the consumer is “Paring Down” (12.59 percent) while those over $100,000 contain consumers (3.53 percent) who are “Simplifying with Style.” For those consumers 65 and over (21.53 percent of U.S. households), consumers earning under $50,000 are in a life stage we label “Frugal Living” (15.46 percent) Those consumers earning over $50,000 (6.07 percent) have a more relaxed designation, “Comfortable Retirement.” While Life Stage is important to understanding the customer on the retail sales floor, experience will tell you that not every consumer who is under 25 with an income of under $35,000 (“On a Shoestring”) is in lockstep with every other “On a Shoestring” consumer. All 45–54 year-olds in the “Prosperous Indulgence” category do not

buy products at the same price points. Seventyfive percent of people buy within a specific price point range based upon their income. The other 25 percent are motivated by certain beliefs or expectations that cause them to choose products that they wish to own with little regard for price. For instance, when profiling the customer of a high-end furniture retailer, you often will find a consumer presence in one of the lower income cells, a “Basically Basic,” for instance. This happens because this less affluent consumer may allocate more of his or her disposable income to home furnishings because of an attitude toward the home environment. It is important never to underestimate the importance of those consumer attitudes about furniture, the home and family, and their general feeling about their way of living, specifically the lifestyle characteristics of the individual consumer.

Lee Brown is the practice manager for consumer research with Impact Consulting Services, Inc., a full-service firm specializing in the home furnishings industry. The company’s practices include Management Consulting, Market Research, Retail Operations, Internet Strategy, and Retail Performance Groups. Please contact Impact Consulting Services at (404) 961-3734 or visit www.impactconsultingservices.com.

www.WHFA.org ACCESS EDUCATE CONNECT

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Visit the WHFA website to learn more about the Retailer Resource Center (RRC). On the site you can access information about the RRC tradeshow exhibitors, educate yourself with the RRC seminar schedule and find different opportunities to connect at WHFA’s Internet Café and Industry Party. For a complete listing of RRC events, seminars and tradeshow exhibitors, visit

June 2008

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

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Today’s Challenging Economy! in

ith the mortgage crisis, shrinking stock market, fear of recession, job losses and gas prices at an all-time high, it’s easy to see why consumers are more cautious than they’ve been in years. What can a retailer do to survive and thrive in the midst of such economic uncertainty?

1. Be True to Your Principles George Whalin president and CEO Retail Management Consultants

Businesses that thrive over long periods of time do so by committing to a core set of operating principles. If your pricing strategy and policies have served you well during good times, there’s no reason to abandon this approach when faced with an economic downturn. Recently I had a conversation with a retailer who contemplated slashing prices on a whole range of products sold in his stores. He hoped to attract more customers with the lower prices. I asked him if low pricing was a fundamental part of his competitive positioning. He said, “No, customers usually shop in our stores because of the breadth of our selection and the top-of-the-line brands we offer.” I encouraged him to explore other options for increasing traffic as opposed to cutting prices. Another principle often compromised when times are tough is customer service. Cost-cutting frequently means reducing the sales staff, alleviating extra salary and benefit costs. The consequences can be longer wait times and less attention paid to customers by the remaining salespeople. Laborsaving cost cuts can mean fewer cashiers, delivery drivers and warehouse people, all of which reduce the level of service provided. What are the principles you’ve adhered to in order to grow your business? While tactics can be reevaluated when economic fluctuations impact your business, adhering to proven operating principles is essential in difficult times.

3. Support your associates 4. Directly help grow and improve your business. Every other expense should be carefully scrutinized. This is one of those things the best retailers do constantly. Among the most common cost-cutting measures is to reduce the amount spent on marketing/advertising. Instead of looking at marketing as an expense, it’s far better to look at it as an essential investment in the future of your business. During the recession of the early 1990s, one of my clients increased his marketing budget by 30 percent, which helped increase sales every month. This better positioned his store to take advantage of increased consumer spending once the economy came out of recession.

3. Support Your People Contrary to traditional thinking, cutting jobs or reducing commissions and wages in a challenging economy proves to be counter-productive. Such steps cause anguish among associates and greatly damage morale — sometimes permanently. These kinds of cost savings may cause good people to leave in order to find better, more secure opportunities. The cost of losing valuable, productive associates can far outweigh whatever the savings might have been. A better way is to simply not fill jobs after people voluntarily leave. Reducing payroll by attrition is significantly less-threatening to employees and damaging to morale. Your people need to feel positive about the company, their work and your customers regardless of the state of the economy. While I don’t advocate

2. Take a Critical Look at Every Expense When times are good, expenses can get out of hand. Rather than cutting costs across the board, here’s a simple way to look at expenses. Don’t spend money on anything that doesn’t accomplish at least one of these four things: 1. Get more customers through your doors 2. Better serve your customers 20

June 2008

westernreporter

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

keeping associates in the dark by avoiding bad news, explain to them that economic and retail slowdowns are a part of doing business and together you will all come out on the other side of this temporary situation.

4. Get Closer to Your Customers This is the time to build relationships with your customers. Your store’s most important asset is and always will be those customers who know you, have bought from you in the past and are most likely will buy from you in the future. One can look at an economic downturn as an opportunity — an opportunity to enhance customer relationships. Encourage sales associates to spend more time with each customer, make follow-up phone calls and write thank-you notes. Schedule special events for your best customers. These might include celebrity or author appearances, seminars on how to decorate a child’s room, or even an invitation-only sales event. What else can you do to nurture these allimportant customer relationships?

5. Fix What’s Broken Every business has things that are broken. What’s broken in your business? Do you have a policy or procedure that causes internal difficulties or negatively impacts your customers? If so, how can you fix it? Do you have an employee who is more detrimental than beneficial to the business? I’m always amazed how many retailers continue to employ people who have negative attitudes, simply go through the motions every day, or are quite obviously working just for a paycheck. Do you have a merchandise category not producing the revenues or profits you expect? In nearly every store there is a category that takes floor space or represents a substantial inventory investment while failing to generate enough sales to justify keeping it. Maybe it’s time to cut back on the number of SKUs, eliminate a brand, or even get rid of the category altogether!

Do you have a supplier that no longer meets your business needs and expectations? In recent years, some furniture companies have changed ownership and management. Is the new company a fit for your business? Has the sales rep changed? Is the new rep responsive to your needs? If not, maybe it’s time to have a long talk with the rep so that it’s clear how best to work together to satisfy your needs and expectations. Do you have a store in a community where the demographics have changed or the area is run down and no longer produces what you expect in the way of sales and profits? For many years retailers were slow to close underperforming stores. While they are less reticent today, many smaller retail organizations wait too long before pulling the plug on stores that have little chance of achieving expected levels of performance. Do you have too much inventory to support today’s sales volume? In my work over the last 20plus years, I’ve found the one factor more than any other that causes retailers to fail is too much inventory. Too much inventory is even more of a burden when sales are sluggish. Most of the nation’s economists predict this period of economic uncertainty will last at least through this year and possibly into next. If you are overstocked, I strongly encourage you to take whatever steps necessary to run your business with the least amount of inventory possible. With anything that’s broken, the first step is to see if it is fixable and whether it can be fixed cost effectively. If not, eliminate the problem. In my work I see retailers ignore things that can be fixed for far too long. If you have some things that are broken, fix them now. The future of your business may depend on what you do over the next few months. George Whalin is the president and CEO of Retail Management Consultants based in Carlsbad, CA, and author of the book, Retail Success. Since 1987 he has been helping retailers increase sales and maximize profits in every kind of economy and retail marketplace. He can be reached at (800) 766-1908. To sign up for his free monthly email newsletter go to www.whalinonretail.com.

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Staying Afloat in a Downturn Economy Part 1 of 4

William Randall client manager Bank of America

June 2008

onsider a few recent headlines about the state of the economy: Home sales continue to soften, foreclosures are on the rise. Inflation is inflicting pain at the gas pump and the grocery store. Consumer confidence is lower than it has been in more than five years. Optimism certainly seems to be in short supply. But while economists and the media will spend the next several months debating whether we are really in a recession — and if we are, when, why and how we got there — furniture retailers like you are left to navigate these suddenly stormy seas. While it might be tempting to batten down the hatches and hope the downturn passes quickly, that’s not a smart strategy for any small or medium-sized business, especially one on the front lines of big-ticket consumer spending. Take the time to chart a course through the squall now and you’re much likelier to emerge unscathed when conditions start to improve.

westernreporter

Think about what can happen when your customers stay home, close their wallets or simply put off buying that new dining room table and chairs or bedroom suite: As you ring up lower total sales, the top line of your P & L starts to shrink. All of a sudden, your overhead and operating expenses are putting more pressure on the bottom line. That squeezes your cash flow, too, and thanks to the sub-prime mortgage crisis and ensuing credit crunch, shortterm borrowing is probably not an affordable option. With less cash coming in the door, you start to worry that you won’t be able to make scheduled payments to service the debt you’ve already got. You could cut back, perhaps by reducing your staff, but you know this is no time to let quality and service suffer. As you can see, if you ignore these threats to your business, they’ll only build on themselves. Now is the time to seek creative solutions to economic challenges before they become problems. The more runway you have, the more creative those solutions can be. Don’t think you have to tackle these issues on your own. In fact, you should be in close contact with your financial service providers and seek their assistance with the challenges you see on the horizon. Indeed, the last thing you want to do is surprise them with bad news. Your relationship banker, for example, needs to know if sales trends are telling you to anticipate a day-to-day cash flow crisis down the road — trends that might keep you from making the scheduled payments on your line of credit. But that same banker can also help you assess how well you’re handling working capital and suggest solutions to ensure that you’re making the most of the cash you have. A little foresight can help you avoid crises before they happen. In the coming months, we’ll address three key areas of focus to help your business deal with the impact of the economic slowdown: • Liquidity – When sales are down, managing your working capital and keeping ready access to cash suddenly become critically important. Stay liquid and you’ll stay afloat.

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

• Efficiency – A downturn is an excellent time to eliminate waste in your business processes. Moving from paper to electronic transactions saves time and money and will pay dividends when sales pick back up. • Fraud Prevention – Financial fraud is always a danger to your business, but in tough times, it can be downright fatal. Fortunately, there are more ways than ever to protect yourself and ensure that you’re not the next victim. In a market-based economy, ups and downs are as inevitable as the tides. So do yourself a favor: Turn off the talking heads with their dire

board

member

Q&A

with Angel

predictions and grim statistics and start planning for the future. You might already be taking some hits, whether its sales beginning to weaken, inventory piling up in the warehouse or traffic through the doors slowing to a crawl. But with the help of your trusted financial providers, it’s not too late to take action to soften the blow and prepare for a rebound when the economy recovers. Because as bad as the headlines make things look right now, it will recover. It always does.

If you are interested in learning more contact William Randall, Bank of America client manager at (888) 852-5000 ext. 8251.

Q What is your biggest challenge in furniture retailing? A I think the biggest challenges are adjusting to changing demographics and

customer shopping habits, having a trained sales force in place, differentiating yourself from the competition and making each customer experience a memorable one.

Q What is the last book you read? A The Four Agreements and They Call It Work for a Reason. Q What do you value most in an employee? A An employee that is loyal to the company; whose conduct is above reproach; is willing to go the extra mile for the customer, takes the initiative, and is worth their weight in gold.

Q What is the most overlooked secret to success? A I think that egos and arrogance are the primary culprits for the demise of some.

Realizing that you do not have all the answers and that there are people that can help you, all you have to do is ask. But more importantly, being an active listener of all the voices whether they be employees, customers, peers or loved ones.

e th, tun er n o m Every ard Memb e o r into B o learn mo t A Q&A your WHF about members. board

Q What are the rules you live by? A The rules I live by go back to my many years in the military:

• Lead by example. • Never ask someone to do something that you yourself are not willing to do. • Always try to look at a situation from the other person’s point-of-view. • Treat everyone with respect. • Give 100 percent in all that you do. • Never lie, cheat or steal nor tolerate those who do.

Q What does the next five years hold for you? A Being poised for growth through the development of middle management is Angel Lopez vice president Dearden’s 700 S Main St. Los Angeles, CA 90014 (213) 362-9600 angel.lopez@deardens.com

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

a priority. I would also like to continue to look for niche markets and product lines and maximize sales and productivity from our existing stores.

Q Why did you join the WHFA board? A I joined because of the privilege of being in the company of some of the greatest

retailers in the industry and in some small way share any talents I may have with the membership at large. When I hear of a fellow retailer shutting their doors down, it is as if a part of me dies, and I ask myself if we could have made a difference. I hope we can make a difference. westernreporter

June 2008

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Hauser’s Patio San Diego, CA

s the seasons transition from winter to spring, the mindset of consumers often transitions from shoveling snow Melissa Dressler to creating an outdoor living environment. editor Consumers wanting to look for casual furniture for their outdoor living space in San Diego, CA don’t have to look too far. They can visit Hauser’s Patio and find anything they need to furnish or accessorize their outdoor living space. Founded in 1963 by Herb Hauser and his wife, Janice, the store has a long history in the casual furniture industry. In the late 1940s, Herb’s father John and his family immigrated from Austria to Toronto, Ontario, where he set up a blacksmithing shop creating patio furniture. Over the years, At a Glance Herb learned his father’s craft and when he was old enough, he Store Locations: San Diego, CA decided to move on to his own Type of Store: Casual business. Having grown tired of the cold, in the early 1960s Herb Year Founded: 1963 settled down in sunny San Diego Number of Employees: 11 and started Hauser’s of San Number of Store Locations: 2 Diego. In the mid-1970s Doug Website: www.HausersPatio.com Wheat, Hauser’s current owner, began working for the company. Top Manufacturers: Brown “I had my contractor’s license Jordan, Tropitone, Lloyd Flanders, in structural and ornamental Mallin and Laneventure metals, and Herb recruited me 28

June 2008

westernreporter

to run his manufacturing facility,” Doug said. “At the time, we had a woodshop, metal shop and an upholstery shop, so I came in and managed the different shops.” After nine years with the business, Doug left to pursue other opportunities within the industry. During this time, Hauser’s Furniture transitioned from manufacturing casual furniture to selling it as a retailer. In 1996, Doug returned to the business and bought in as a partner and eventually became the sole owner of Hauser’s in 2006. Throughout this long history, Hauser’s Furniture has been dedicated to providing highquality casual furniture to its customers with a high-end shopping atmosphere. Though Hauser’s has seen success over the years, they have also had to deal with the seasonality of their product.

A High-End Shopping Atmosphere Doug knows it is important to set Hauser’s Furniture apart from other stores, especially since the casual furniture market is full of competition. Patio furniture is now being sold at local grocery and hardware stores, Expo, Home Depot and Lowe’s — all at price points equal to Hauser’s. “We have a local hardware store that is currently selling a six-piece rattan resin set for $2,400. Well, that used to be my marketplace! We do have things at our store that we consider unique Contact WHFA at www.WHFA.org or (800) 422-3778.

values, but from a price standpoint, everyone seems to be in our market now,” he said. Hauser’s creates a unique shopping atmosphere by adding items that you wouldn’t typically see in the competition’s store. When you walk through the doors of both store locations, the first thing you will notice is that you are not in a typical casual furniture store. “You would realize very quickly that we are a high-end store,” said Doug. “We do a lot of vignette displays and pull in a variety of colors. In many patio stores, you walk in and just see a sea of browns and bronzes — that isn’t the case with us.” Hauser’s second store location in La Costa, CA also features a unique outdoor living area. “We have an outdoor area of about 1,400 square feet where we have created a great room that has a pergola, fountain, pond and a fireplace. We have really tried to show people what they can do in a small area.” This outdoor space was created to inspire customers and show them what can be created out of a small outdoor space. Because of Hauser’s high-end look and merchandise, they were awarded Casual Living magazine’s Most Fashionable Retailer award in 2007. “We won the top merchandising award from Casual Living and are very proud of it. We feel fortunate to have been selected,” Doug said.

Seasonality of Casual Furniture San Diego is often described as a place where you can enjoy year round sunshine, so you would think that a casual furniture store in the city would have strong sales throughout the year. Doug says that this isn’t true because, “People are very seasonal in their thinking. There are not many true Californians in San Diego, and many people from here have come from other parts of the country where they experience seasons, so

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

they are still very seasonal in their thinking. Our season probably lasts longer than a casual store in Detroit, but we do have a bell curve in our sales if you were to plot them.” Hauser’s sales start to pick up around March and are usually strong until the end of August. Once September rolls around, Doug often holds Hauser’s annual clearance sale because he finds that once people start thinking about going back to school, they no longer think about outdoor living. To help alleviate some of the sales bell curve, last year Hauser’s started selling Christmas items before the holidays. This is how many casual furniture stores help bring in extra income during their normal slow time, but Hauser’s decided to give their Christmas displays a different twist. “We tried to put a little bit of a different edge on it and not do your ordinary Christmas displays,” Doug said. “My general manager, Fred White, had the idea and did all of the display work.” For the holidays, they brought in five Christmas trees, each with their own themes. Instead of using traditional holiday colors like red and green, the trees were decorated in bright, energetic colors. Doug believes it will be awhile before Hauser’s is known as a casual furniture store with Christmas displays but he eventually hopes, “That people will see we offer a unique Christmas. It is our intent to chase that marketplace.” With Hauser’s desire to provide its customers with high quality furniture and find new ways to maintain profitability, Hauser’s is sure to be a powerhouse in the San Diego casual furniture market for years to come.

westernreporter

June 2008

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hat better way to help your do-it-yourself (DIY) customers then by providing extreme discounts on Sherwin-Williams paint. As a WHFA member, you have access to Sherwin-Williams discounts on paint and tools for your customers. Imagine what a wonderful value-added service this would be when a customer purchases a new room of furniture, and you offer a 20 percent Sherwin-Williams discount just for shopping at your store! Not only will it help complete the look your customer is seeking but will also help reinforce their experience with you. DIY consumers will thank you, and more importantly, will remember your store for their next purchase.

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June 2008

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meet the new members New Members Who Joined WHFA in March and April 2008 American Furniture Galleries Emigh’s Casual Living Colorado Springs, CO Sacramento, CA

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Pool Tables USA Santa Ana, CA

America’s Mattress Pearl City, HI

Furniture Depot Sacramento, CA

Life Furniture & Mattress Hood River, OR

R.K. Woods Inc. Sheridan, WY

At Home In The Valley Van Nuys, CA

Home Impressions Fine Home Furnishings Downey, CA

Metropolitan Living Long Beach, CA

Showcase Furniture Highland, UT

Mountain Valley Gallery Afton, WY

The Furniture Store Dinuba, CA

My Comfort Grand Junction, CO

Thomas Furniture Spokane, WA

My Comfort of Park Meadows Englewood, CO

Tidewater Credit Services Virginia Beach, VA

Bay Furniture Club San Jose, CA Carpet To Go Bellevue, WA Designcorp International Solano Beach, CA

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June 2008

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

Letting Go is a Two-Way Street

uccession problems are usually characterized as the parental generation’s struggle to let go of authority, responsibility and control — passing the baton to the next generation. And certainly, those problems can be dauntingly real and frightening to almost all business owning parents. We find that a parent’s greatest fear is loss of power in the family. What happens if a family is in conflict or a family member is in need? Parents often feel that keeping control of the business and its purse strings provides extra strength in addressing potential family problems. But we believe succession — and “letting go” in particular — is a two-way street. One family business successor’s insights clarified the lesson for us. “I finally got it! It was my expectations that made the power struggle so painful for me,” he explained. “My parents rightly were upset by my expectations of them. And the longer I held on to those expectations, the more they fought letting go.” He then describes several expectations that we found shockingly familiar and widespread among next generation members of business owning families. They include: • Entitlement: the expectation that the next generation deserves what the parents have. • Fairness: the expectation that parents should treat each sibling clearly equally. • Perfection: the expectation that the parents should take all the initiative and provide all the wisdom in letting go. • Responsibility: the expectation that parents should straighten out conflicts among the offspring. Parents who have these expectations of themselves or who accept them from their children inevitably face great frustration. Next generation members who cling to these expectations retard their own growth and development. Even as they complain of inadequate progress toward succession, next generation actions can subvert the process. Each time one sibling complains to parents about another, succession is slowed. Every time siblings need parental help to solve problems among themselves, they slow succession. Every time a member of the next generation asks parents for financial resources Contact WHFA at www.WHFA.org or (800) 422-3778.

to help support lifestyle or personal need, succession slows. Part of succession — and personal maturity — is “letting go” of the expectations one has towards one’s parents. When successors hold four beliefs, we find that they are able to “let go” of problematic expectations. Then they can more comfortably negotiate the inevitable trials of generational transition. They: 1. Appreciate that their parents are not perfect; 2. Accept parents for who they are… with respect…and love; 3. Understand that life isn’t fair; and 4. Assume personal responsibility for their own life, security, and identity We aren’t sure which comes first, but we find that parents’ ability to let go of power correlates with the next generation=s ability to let go of emotional expectations of their parents. As one successor concludes, “when I assume personal responsibility for who I am and for my own success, my parents can=t wait to support me. They seem to draw on my strength. It helps them.”

Craig E. Aronoff, Ph.D. co-founder & principal Family Business Consulting Group, Inc.®

Who Can Let Go? Parents “let go” best when they are economically secure and believe that stewardship creates a duty that they pass the business to future generations. Children “let go” best when they are competent, self-reliant, and eager to assume leadership responsibility.

Reprinted with permission of the authors from the June 1998 issue of The Family Business Advisor®. ©1998 Family Enterprise Publishers®, Interested in becoming a www.efamilybusiness.com. All part of Fast Forward? rights reserved. Visit www.WHFA.org and click Craig E. Aronoff, Ph.D. is on Fast Forward or contact Kaprice a co-founder and principal of Crawford at (800) 422-3778 or the Family Business Consulting Group, Inc.® and can be kcrawford@whfa.org. You can also reached at (678)277-9865 or participate in monthly message board aronoff@efamilybusiness.com. topics on the WHFA website.

westernreporter

June 2008

Tough Times We Must All Work Together Mike Luciani & Jim Grandillo senior retail consultants JRM Sales & Management

veryone — roll up your sleeves and get busy! Our industry needs to work together. Retailers, manufacturers, salespeople and sales managers: Are you part of the problem — or part of the solution? It is no surprise that our industry is under stress. Whether you blame the media, the stock market, or the housing slump, it is clear that consumer confidence has declined. As a result, we are experiencing less traffic and fewer sales. While external political, social and economic issues are at the core of this retail slowdown, believing that nothing can be done is simply defeatist thinking. So what can each of the players in this drama do to make things better?

What can the manufacturers do? Factory representatives must help retailers like they did in the past. We looked forward to their visits. They brought information, advice, even criticism. They wanted our stores to be better because then we would sell more merchandise. We need them now, more than ever! Today’s factory representatives often lack product knowledge and the ability to impart what knowledge they have to our sales teams. They might need additional help from regional sales managers and factory personnel to fully understand the product they are selling. Do they have the ability to train the retail sales associates? Do your factory representatives visit their accounts regularly and spend adequate time on the sales floor when they visit? 36

June 2008

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Fortunately, there are still manufacturers who have clung to the “old-fashioned” factory representative prototype. These knowledgeable, caring, professionals believe that the success of their business is dependent upon informed, happy consumers and successful retailers. These precious few factory representatives promote a non-adversarial, “we’re in this together” attitude that shows in the way the sales staff relates to the products the factory representatives promote. It’s time for the factories to resume taking some of the responsibility, through well-trained and informed reps, for getting it right for the retailer and ultimately the consumer.

What can retailers do? In today’s tough business climate, successful retailers are thinking outside-the-box. Among many other things these retailers call on their best factory representatives to assist in making sure that their sales teams are well-informed. They are willing to assist in coaching factory reps that may have the knowledge but are less confident when they have to stand in front of an audience of retail sales professionals. It is time to get back to the basics at the retail level. Years ago it was the norm to know your customers by name, build relationships one at a time, follow-up and spend quality time with each customer coming into your store. The selling staff was coached to develop a relationship with each customer. Stores were adequately staffed. There were skill-building sessions every week. Contact WHFA at www.WHFA.org or (800) 422-3778.

The sales team was held accountable for growth and improvement. Each salesperson was encouraged to spend quality time with every customer. Thus important decisions necessary for creating a beautiful home were made after consultation with a confident, well-trained and knowledgeable salesperson. While professional retail salespeople are rapidly disappearing from the retail landscape, there are still many professional home furnishings retailers who possess and promote: • Owners and salespeople, who care, are knowledgeable and believe that working the floor and being out there is the way to sell. • They build relationships. They do not rely on multitudes of people streaming through the doors to achieve their goals • They give a great level of service and they follow up with their customers • Most importantly, they believe that the customer comes first. They know that the better the job they do, the more likely they will be referred to a satisfied customer’s family members and friends. • Owners who know that when traffic is down and customers are slower to buy, the importance of trained and focused salespeople coached by motivated, professional sales managers is paramount. • Sales managers are out there with the sales team leading the charge every day. • Salespeople are coached and trained to deal with the hand they are delt. They realize they cannot fall into the inevitable rut of self pity and despair that is caused by slower traffic and more resistant customers. • Salespeople who realize that it is a natural occurrence for the buying public to pull back when all they Contact WHFA at www.WHFA.org or (800) 422-3778.

hear or read about is the economic slowdown. They posses a selling style that relies on selling rather than just taking an order. • Sales management who reassures and coaches their sales teams toward success. They hold everyone, including themselves, to a high level of accountability. The result is that everyone works and sells even harder! • Salespeople that know that anyone who is looking to spend money has many options of where to spend it. They are grateful that the customer has chosen their store to shop in

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June 2008

and they repay the customer with a very high level of service and a commitment to giving them more than they ever expected out of shopping for home furnishings. • Sales management and sales teams that know that the truth works! Today, the buying public is very smart, savvy and well-informed. The best sales associates know their products; and if they are not sure about something they admit it and get the right answers. It is a pretty easy formula. Look at what made furniture retailers successful in the past. Use history as a guide. Establish bonds with your customers. Today’s shoppers may be fewer in number but they are still out there. They want to feel important when they come into your store! The battle cry of, “the customer is king” is still true today.

Sales Managers: What else should you do? Volume comes from selling staffs that satisfy customers and generate sales. Standards for performance should be set and maintained. The active sales manager hires, trains, coaches, measures and ultimately holds the sales team accountable to make the most of each customer they assist. It is imperative that every “customer asset” be given the highest level of service possible. The importance and the responsibility of today’s sales managers is to influence what that salesperson does. This function has never been more important than it is today. Today’s sales managers must actively seek out exceptional candidates for sales positions. We cannot invest our “customer assets” with salespeople who fail to achieve minimum standards. The sales manager sets goals with the salespeople so that their individual goals add up to the company’s goals. 38

June 2008

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Ongoing, consistent and enthusiastic training shows the selling staff how to create and maintain successful relationships with customers. The sales manager has to believe that every customer who enters the store has the potential of becoming a client of their company; someone who will return again and again to make their home furnishings purchases. These sales managers have the ability to simulate the same belief in each of their sales associates. Measuring each salesperson’s performance in the area of average sale, closing percentage, etc. allows the sales manager to understand who on the staff is maximizing and/or squandering customer opportunities. The numbers never lie. The successful sales manager coaches and gives feedback to help people improve the way they serve customers. Ultimately, the sales manager may have to replace salespeople who cannot achieve the store’s minimum acceptable level of performance. A dynamic, growing, changing and improving sales staff is an important aspect of the times we are facing. This is what sales management is all about. The successful companies surviving hard times will have a mission. They will live it and run their entire organization in concert with that mission. If the company’s mission is to serve customers and help them to have attractive, beautiful and functional homes, then both sales managers and salespeople alike must believe that accomplishing this mission is the basis of everything they do. If they have allowed lethargy to enter their organizations, they know that they have to work to eliminate it and re-connect with the basic principles of selling and customer service. The relationship between the salesperson and the sales manager is exactly like that of the ball player and the coach. Their goals are identical and that is to win the game. In our business this means helping customers get the beautiful homes they want. When this happens, everybody wins. Sometimes, when times are tough, our biggest competitor may be our own feeling of powerlessness. We fear we can do nothing — and this creates a self-fulfilling prophesy. Therefore, we do nothing and, gradually, we fail. Although external competition and economic uncertainty is real, being consumed with anxiety about competition or the economy could lead to your own undoing. But, working together, we can do something. The retailer/manufacturer relationship must not be seen as adversarial. We are all part of one great industry. Manufacturers and retailers together must focus on what is best for their customers — the results may surprise us all. JRM Sales & Management is a powerful team of consultants and trainers to the retail home furnishings industry. Visit their website at www.jrmsales-mgmt.com for additional information. This article was co-authored by Mike Luciani and Jim Grandillo, both senior retail consultants for JRM Sales & Management.

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

Safety Corner â&#x20AC;&#x201C; Ergonomics and Stretching

Preventing Workplace Injuries â&#x20AC;&#x201D; Office Ergonomics

rgonomics is the science that seeks to fit the job or task to the individual rather than expecting the individual to conform to the job or task. It seeks to adapt work or working conditions to suit the worker. The goal of an effective ergonomics program is to reduce work-related musculoskeletal disorders (MSDs) that can be developed by workers. Evaluate your employeesâ&#x20AC;&#x2122; workstations to ensure they are set up properly for )BMG %PNF :PTFNJUF 7BMMFZ each employee. A couple of areas to pay attention to are: 8FÂľWF CFFO B QBSU PG $BMJGPSOJB â&#x20AC;˘ Chair Height: Adjust height so your employeeâ&#x20AC;&#x2122;s elbows are at about TP MPOH UIBU XF EPOÂľU NJOE desktop level. CFJOH UBLFO GPS HSBOJUF â&#x20AC;˘ Seat Back: Adjust for good support of the lower back and use a lumbar cushion if needed. Another way to prevent work-related musculoskeletal disorders is by taking short breaks from your computer every hour to stretch. A couple of good stretches are: â&#x20AC;˘ Fingers and Hands: Make a fist and hold for a second. Then spread your fingers apart as far as you can. Repeat several times. â&#x20AC;˘ Lower Back: Sit on edge of chair with your knees and feet well apart, hands resting between your legs. Bend your trunk forward with head and arms dangling. Touch the floor with your hands and hold for 510 seconds. Return slowly to the starting position. For more information on office ergonomics and stretching, call WHFA at (800) 422-3778 to request a free copy of their Helping to Prevent Workplace Injuries â&#x20AC;&#x201D; Office Ergonomics brochure or visit www.WHFA.org and click on â&#x20AC;&#x153;Industry Resourcesâ&#x20AC;? and â&#x20AC;&#x153;Safety Spotâ&#x20AC;? to download your own copy.

ore ou like mffice y ld u o W today ion on o informat ics? Call WHFA quest ergonom422-3778 and re g to at (800) py of the Helpinies â&#x20AC;&#x201D; a free coWorkplace Injurhure. Prevent rgonomics broc Office E Contact WHFA at www.WHFA.org or (800) 422-3778.

For generations, California employers have depended on www. scif..com State Fund to meet their workersâ&#x20AC;&#x2122; compensation needs. 'PS HFOFSBUJPOT $BMJGPSOJB FNQMPZFST IBWF EFQFOEFE PO 4UBUF 'VOE UP NFFU UIFJS Since 1914, through good times and bad, weâ&#x20AC;&#x2122;ve always W W W S C XPSLFSTÂľ DPNQFOTBUJPO OFFET 4JODF UISPVHI HPPE UJNFT BOE CBE XFÂľWF been on hand for California businesses. Call your BMXBZT CFFO PO IBOE GPS $BMJGPSOJB CVTJOFTTFT broker, or Patty Garcia of State Fund Group Programs $BMM ZPVS CSPLFS PS 1BUUZ (BSDJB PG 4UBUF 'VOE (SPVQ 1SPHSBNT BU at (800) 423-0303 and let us show you how weâ&#x20AC;&#x2122;ve BOE MFU VT TIPX ZPV IPX XFÂľWF CFDPNF TVDI B SPDL TPMJE QBSU PG UIJT HSFBU TUBUF become such a rock-solid part of this great state.

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June 2008

a m Re m tailers Dile

O Jeff Hiller founding board member & marketing chair Sustainable Furniture Council

K, so you have been convinced by all of the scientific evidence that there is a significant environmental problem brewing in the world, and that you as a conscientious human being, citizen, and business owner should be doing something about it. What do you do now? Letâ&#x20AC;&#x2122;s begin with a few definitions. Green, eco-friendly, eco-conscious, environmentally safe, organic, natural, there seem to be almost as many statements as there are products making them. It is becoming a significant problem known as green washing, the practice of making environmentallyoriented claims that are misleading to consumers. A recent study of over 1,000 products across a wide variety of categories found that 99 percent were guilty of making misleading or unsubstantiated claims. While specific definitions vary, the concept behind most green and eco-labeling is sustainability, which refers to a healthy balance between environmental concerns, social equity and local economy. Environmental concerns have taken center stage, and rightfully so, but the others are equally worthy of attention. The idea is to manufacture, bring to market and sell products in a manner that minimizes negative environmental effects, is socially responsible in the treatment of workers and allows the business to make a fair profit while supporting local communities.

Where to Go? The good news is that the green movement has emerged as the most compelling story in 40

June 2008

westernreporter

furniture over the last year or two and is driving manufacturers and tradeshow venues alike to simplify the buying experience. You should begin with an Internet search, but unfortunately, most of what you will find will be other retailers, designers, or companies without a clear explanation of what makes their products green. A better option is to visit tradeshows. Virtually every major furniture market has dedicated space to green products, including EcoStyle at High Pointâ&#x20AC;&#x2122;s Suites at Market Center last April, Live Green, Live Well at the San Francisco Mart in September 2008, and what is likely to be the largest showcase with over 15,000 dedicated square feet, the Living Green pavilion at World Market Center, Las Vegas in July 2008. This is the best way to conduct your search, as the shows provide the ability to see, examine, compare, and hear firsthand the stories behind a wide range of styles from manufacturer leaders in the green movement. The venues usually also provide some educational programming as an added benefit. Finally, you can also contact non-profits who have done some of the research and verification for you, such as the Rainforest Allianceâ&#x20AC;&#x2122;s SmartGuides, Forest Stewardship Council (FSC) certified manufacturers, or the Sustainable Furniture Council, the organization for which I volunteer. These entities offer independent, apolitical advice on how to proceed. But before you do anything, it might be helpful to know a little bit more so you, too, have some expertise.

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

What to Know? In all cases, ensuring that the raw materials are the most environmentally safe available, that the finished goods travel the least amount possible, and that the products will last a long time are important considerations. We live in a disposable society, and the average purchase cycle in furniture has declined over the years from about 10 years to under seven and declining, meaning there is a lot more repurchasing and waste. Getting it right the first time is ever more important. If you take mattresses out of the equation, upholstery (38 percent), bedroom (18 percent), and dining (14 percent) are the biggest retail segments. For upholstery, the construction issues are the composition and finish of the frame, the padding and the cover. For bedroom and dining, the issues are the construction material and the finish.

What Wood is Good? This is important because of the industryâ&#x20AC;&#x2122;s high consumption of wood and the rampant escalation of imports. In general, U.S. workers are fairly treated and forest coverage in the Northern hemisphere is actually growing. However, this is certainly not the case elsewhere on the planet and monitoring is spotty at best. While over 90 percent of the forests in the U.S. are under some type of forestry management certification system, less than 5 percent of the rest of the worldâ&#x20AC;&#x2122;s forests are under any system. The first and best certification is provided by the Forest Stewardship Council (FSC), a non-profit founded in 1992 by the World Wildlife Fund and others. They uphold the most rigorous standards of any certifying body and have a network of accredited National Initiatives doing direct inspections in 45 countries. Another is the Sustainable Forestry Initiative (SFI), founded in 1994 in response to the FSC by the American Forest & Paper Association, a trade group with members that control roughly 90 percent of American commercial timberland. They do direct inspections of about 10 to 15 percent of their forests, relying on self-reporting for the balance, and thus represent a lesser standard overall. Numerous other systems exist, but these are the majors.

continued on page 42

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

westernreporter

June 2008

continued from page 41

In the absence of certification, recycled furniture (otherwise known as antiques) and products that use verifiable reclaimed materials such as architectural pieces or recycled aluminum are superb choices. For example, aluminum is incredibly abundant, but requires a tremendous amount of energy to mill. Recycling produces only 5 percent of the negative emissions of new production. Lastly, you can look for fast-growing, commercially harvested species such as Bamboo and Mango. While things have been written about isolated negatives, these are plentiful natural resources that typically do not involve clear-cutting or significant transportation. Bamboo is a grass that can literally grow 3 to 4 feet per day, and Mango is the most common fruit tree in the world, grown on plantations virtually everywhere in the tropics and need to be replaced every 12 to 15 years when they stop producing.

What Finish is Fine?

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To order your Store Procedures and Managing Guidelines, contact your WHFA membership representative at (800) 422-3778.

June 2008

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Most wood is sealed with polyurethane (PU), varnish, lacquer or shellac. PU is petroleumbased, and the others must use solvents to keep them liquid in the can that produce toxic vapors called volatile organic compounds (VOCâ&#x20AC;&#x2122;s). This creates a hazardous working environment and is commonly controlled in the U.S. by limits on the amount of VOCâ&#x20AC;&#x2122;s allowed at 350 ml/liter. Water-based finishes avoid the entire problem, generally with a VOC of 50 or lower.

What Foam for Home? The furniture industry uses about a third of all the polyurethane foam produced in the world. For years, chemists have been striving to produce acceptable foams from organic sources such as soy beans. The challenge has been in maintaining the long-lasting properties required, and to a lesser degree, eliminating a non-harmful but not very appealing odor. Numerous breakthroughs have been made, however, in developing high performance hybrids that combine PU with 20 to 30 percent organic-based materials. It is estimated that 2,200 barrels of oil will be saved for every 1 million pounds of polyols converted.

What Cover to Love? This is a tricky question where you need to balance longevity versus other concerns. Leather is forever, as they say, which is good news, but there are some very challenging dynamics. Brazil is one of the largest producers of beef, and thus leathers, in the world, with 150 million standing head of cattle. Unfortunately, they do not manufacture much furniture, and they annually export $2 billion worth of hides, many going to countries such as Italy and China where they are made into upholstery. Then it is shipped back to Contact WHFA at www.WHFA.org or (800) 422-3778.

be sold in America, literally completing an around the world journey. Cattle also eat constantly, requiring twice as much land committed to grazing worldwide as crop production, and Brazil has been clearing millions of hectares of rainforest annually to accommodate their needs. Lastly, as silly as it sounds, cows are very gassy and release a lot of methane, a greenhouse gas 60 times more powerful than carbon dioxide. The alternative is natural fiber covers, especially those organically grown without chemical pesticides. They do not last as long as leather, but are typically local and have much fewer negative effects overall.

particular item, say, “Contains 5 to 15 percent FSCcertified wood” rather than just “FSC-certified” or “Eco-Friendly.” This is more accurate and puts your salespeople in the position to talk authoritatively on an important subject, every retailer’s dream. The Sustainable Furniture Council is a non-profit coalition of manufacturers, retailers, designers and NGO’s committed to furthering best practices in the industry. They provide education and sales materials to members. Visit their website for more on making your operation greener. www. sustainablefurniturecouncil.org Jeff Hiller is founding board member and marketing chair of the Sustainable Furniture Council.

What to Say? After doing your homework, finding credible suppliers, and adding some stylish sofas with hybrid foams, natural covers and FSC-certified wood dining tables to your floor, how do you let your customers know? Education and notification are everything. All of your staff should be made aware of your interests, encouraged to read a few things on the subject of climate change and well-schooled on the eco-friendly aspects of the products you have selected. For reading, I would recommend the IPCC 4th Assessment report from the UN found at www.ipcc.ch or a fascinating book by Tim Flannery called The Weather Makers. You could also just pull excerpts and make it the subject of one of your weekly sales meetings. You should also write a brief public statement of your belief in dangerous climate change and your commitment to taking action, then post it in your stores and on your website. Nothing fancy, just a heartfelt communication of your feelings and what you intend to do about it. Signage should be prevalent throughout your showroom inviting customers to ask to learn more from their salesperson. You may also draft a one sentence support statement that appears in all of your communications. And you should prominently feature your green products in your advertising and promotion. Just because it is a hot button does not mean that consumers will think and act very differently in their buying habits. Studies show that consumers are willing to pay a premium up to 10 percent, but these products will still be driven primarily by style and price, just like everything else you sell. Importantly, to avoid green washing, you must be actively engaged in finding acceptable solutions, not just be wellintended, and you have to be specific. Unless all of the products in your store are green, do not imply this to be true. And when it comes to content for a Contact WHFA at www.WHFA.org or (800) 422-3778.

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June 2008

product focus

What is “Sustainable” Furniture?

s the growth of the Sustainable Furniture Council (SFC) shows, the interest in producing and purchasing more sustainable John Byfield products is growing as well. The furniture industry, president being a relative newcomer to sustainable practices, Zola Furnishings still has a lot of work to do to define exactly what that means. The SFC has taken the lead in this area, and through the formation of focus groups and standards committees is working hard to help the industry develop guidelines and third party certifications similar to those used by the building industry to ensure transparent verification of sustainable manufacturing claims. As the term “furniture” can be used to describe a wide range of products, ranging all the way from all-wood case goods, to upholstered goods, to injection molded plastic products, the definition of sustainable manufacturing can also vary dramatically. However, certain basic principles will help guide the industry as it moves forward on the path of sustainability. In general, sustainable manufacturing boils down to three basic parts: • The materials used in the construction • The method of construction • The carbon footprint of the manufacturing and distribution of the product Materials – The SFC has adopted the Forest Stewardship Council (FSC) certification as the primary certification for wood products used by the industry. This third party certification is not an industry trade association related certification, and is recognized worldwide as setting the standards for best practices in the harvesting of wood. The use of FSC Certified wood helps a manufacturer ensure that their wood is being properly sourced and renewably harvested according to strict guidelines enforced by the FSC. Other materials used in the manufacture of furniture that helps reduce the impact on the environment may include organic, recycled, or third party certified fabrics, non-petroleum based or

June 2008

westernreporter

recycled seating materials and battings, low-VOC stains, glues, finishes and recycled steel products. Construction – The trend toward low cost imports means that much of the furniture being sold in the U.S. today is manufactured using inexpensive construction techniques and low quality materials. While the initial result is a more affordable product, the long-term consequences are a product that ends up in a landfill in relatively short order. This product carries with it the toxic chemicals such as formaldehydes that often used in the construction. To be sustainable, furniture should be of durable construction, using quality materials, and designed for longevity as well as the ultimate deconstruction at the end of its useful lifecycle. The higher initial cost of using these materials and methods of construction can be quickly offset by the durability of the product. Carbon Footprint – Perhaps one of the most challenging aspects of sustainability for a manufacturer to address is the carbon footprint of its operations. A complete carbon footprint report detailing the baseline thermal and electrical usage of the plant will allow a manufacturer to understand their usage and make progress toward reducing their impact. Coal-fired electrical production is one of the leading causes of greenhouse gas emissions in the U.S., so the reduction of electrical usage is a key element in any effort toward sustainable manufacturing. Companies should also begin purchasing renewable energy which is now readily available from most utilities. Shipping is the other major factor in reducing ones carbon footprint. Factors such as where raw materials are sourced, the distance from the manufacturing facility and the end consumer, and methods of distribution must all be evaluated to reduce the impact of shipping. The road to more sustainable manufacturing has been described by Gerry Cooklin, president and founder of the SFC as a long journey, but there are many steps along the way which companies can take, and it is encouraging to see so many moving in the right direction. John Byfield is president of Zola Eco-Friendly Furnishings in Bend, OR. Zola is a founding member of the Sustainable Furniture Council and one of its first certified Silver Exemplary members.

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

Industry Will Miss Leslie Fishbein

n March 19, 2008, the home furnishings industry lost an industry icon when retailer Leslie Fishbein, Kacey Fine Furniture, passed away. On March 4, Fishbein, 55, suffered a heart attack after an adverse reaction to an injection to relieve pain from an earlier back injury. Fishbein joined her parents, Jack and Shirley Barton, in the family business, Kacey Fine Furniture, in the mid-1970s after graduating from the University of Colorado. She worked hard to build the business despite tough competition from giants in the marketplace and became a household name in Colorado through her charity involvement and television commercials. “She was absolutely one of the most vibrant, energetic, and enthusiastic thinkers we’ve ever had,” said Doug Kays, president of National Home Furnishings Association. “She was never afraid to voice her opinion and had very good instincts based on her experience.” She is survived by her husband Sam Fishbein, her parents and sisters Terri Gregg and Bobbi Zimmer. Memorial contributions may be made to Make a Wish Foundation, 7951 E. Maplewood, Greenwood Village, CO 80111; Children’s Hospital Foundation, 1245 E. Colfax Ave. #400, Denver CO 80218; or Craig Hospital-Donations, 3425 S. Clarkson St., Englewood, CO 80113. Everyone at Western Home Furnishings Association and Western Reporter magazine sends their condolences to Leslie’s family and friends.

Western Home Furnishings Association SAVE 15% Today*

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Warehouse Products

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Call Jef Spencer, WHFA warehouse manager, today to place an order. (916) 960-0386 • (800) 422-3778 WHFA • 500 Giuseppe Ct., Suite 6 • Roseville, CA 95678 • (800) 422-3778 • www.WHFA.org • jspencer@whfa.org

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

westernreporter

June 2008

“When I pre-shop for furniture, if a retailer doesn’t have online catalogs, I’ll find another one who does.” FACT: 80% to 90% of women age 33 to 45, the key demographic of furniture shoppers, shop online before visiting a showroom. In today’s Internet-driven world, having a website is not only a smart business decision, it’s absolutely essential if you want to prosper in retail furniture. But you have to make that site interesting with lots of options and lots of choices. Nothing does that more efficiently or costeffectively than MicroD’s ePreVue electronic catalog. With it, you can literally display every case good and upholstered furniture item from every PreVue-supported manufacturer you carry. Then, using EasyPlan - ePreVue’s software companion, your shoppers can place their selected items into their own custom-created room plan to see how it fits into their home and into their own sense of style. To find out more, see us at the Las Vegas Market, World Market Center, Bldg. B 16th Floor, Retail Resource Center July 28 - August 1, 2008. Call 800-964-3876, ext. 253, or visit us online at

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The best furniture business technology.

industry dates Market Dates June 18 – 24, 2008 Total Home & Gift Market Dallas Market Center Dallas, TX www.DallasMarketCenter.com (800) DAL-MKTS

October 20 – 26, 2008

July 28 – August 1, 2008

High Point Market High Point, NC www.HighPointMarket.org (336) 869-1000 Future dates: April 27-May 3, 2009

Las Vegas Market — World Market Center Las Vegas, NV www.LasVegasMarket.com (866) 229-3574

July 8 – 16, 2008 The Atlanta International Gift & Home Furnishings Market America’s Mart Atlanta, GA www.AmericasMart.com (800) 285-6278

September 23-25, 2008 Train the Trainer Course IAS Training Holiday Inn at Los Angeles International Airport (800) 248-7703 info@iastraining.com.

November 23 – 25, 2008 Long Beach Furniture & Accessory Market Long Beach Convention Center Long Beach, CA www.kemexpo.com (800) 605-7440

WHFA Educational Events July 13 – 16, 2008

Management Development Institute Renaissnace Denver Hotel Denver, CO www.NHFA.org (800) 888-9590 ext 6151

July 28 – August 1, 2008

WHFA Educational Events Las Vegas Market — Free Business Seminars Retailer Resource Center WMC Building B, 16th Floor www.WHFA.org (800) 422-3778

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October 20 – 26, 2008 High Point Market — Free Business Seminars Retailer Resource Center IHFC Main Street, Floor 12 High Point, NC www.NHFA.org (800) 888-9590 RETAILER�

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October 14, 2008 WHFA Academy Portland, OR www.WHFA.org (800) 422-3778

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

niture he Fur ’s special T s is y m Don’t g Companing Las r in u in d , a r n T Friday ntatio prese s Market on9:30 a.m. Vega st 1, 8:30 – 6th Floor Augu uilding B, 1 RRC, B

Hundreds of furniture retailers use our online sales training to increase store sales.

SalesForce Selling with Service Course Overview Do customers leave your store empty handed? Do your sales associates miss opportunities to make sales? SalesForce – Selling with Service is the most powerful, comprehensive furniture sales training in the industry. With SalesForce your sales associates will learn the four steps to serve customers and make sales. Your associates will have the knowledge and expertise your customers demand. SalesForce is the only training program that can certify your associates in furniture sales. Take advantage of this WHFA program today and receive an exclusive WHFA member discount.

The “Greet the Customer” lessons teach: • • • • •

Approaches that really work How to engage a customer in conversation How to win a customer’s trust How to sell to “I’m just looking” customers How to reapproach customers

The “Discovery Process” lessons teach: • • • • •

The questions you need to ask How to discover your customers’ needs The major customer buying motives How to identify the buying motives How to sell using the buying motives

The “Present Solutions” lessons teach: • How to give effective presentations • How to share product benefits and advantages • How to build customer interest in purchasing

The “Close with Confidence” lessons teach: • How to recognize that a customer is ready to buy • How to recognize non-verbal buying signals • How to clarify and resolve objections • How to close with confidence

For more information or to start participating today, visit the WHFA website or call (800) 422-3778.

tips & tricks Ten Tips ‘n’ Tricks for a More Green Business It’s easy to be green. Even with a limited budget it’s possible for companies to make a significant impact. Here are some cost-effective tips and tricks that can help you contribute to a more beautiful planet. 1. Use both sides of a piece of paper. Even though this can sometimes be confusing — we have a tendency to load the printer backwards — this is a great way to reduce waste, as well as distinguish drafted documents from final copies. 2. Donate used computer equipment. Good businesses have to keep up with modern technology, which means there’s almost always old computer equipment lying around. Try to clean house every six months - pack up old monitors, keyboards, mice, hard drives, and printer cartridges, and take a drive down to the local Goodwill or Salvation Army. You’ll be doing the less fortunate a favor, because used business equipment is usually in good shape, and if you’re a small business, you’ll free up muchneeded space. 3. Turn off equipment when not in use. Remember when your mom told you to turn off the light when you left the room? The adage applies to today’s business equipment as well: Xerox machines, radios, monitors, and lamps, even when on “sleep,” waste precious energy. Remembering to turn them off at the end of the day will help the planet and your pocketbook. 4. For business projects, use recycled packaging. Additionally, create packaging that is easily recyclable. Re-use yellow envelopes for internal communications. And don’t forget, recycled paper products are usually cheaper than unrecycled materials — and they usually look better. 5. Use simple cleaners: vinegar, baking soda, and lemon juice. Vinegar, baking soda, and lemon juice were good enough for our grandmothers, and do just as good a job cleaning as those other, commercial, chemical cleaners. Vinegar leaves glass sparkling, and lemon

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

juice makes the office smell delicious. If you have a cleaning staff, don’t forget to ask if they can clean your office with more environmentally-friendly products. 6. Stock the bathrooms with single-ply toilet paper. This is pretty basic, but almost everyone forgets — even some recycled toilet paper producers are guilty of the two-ply offense. Single-ply toilet paper doesn’t clog the drains, uses fewer trees and is usually cheaper. 7. Encourage communications through email, not paper memos. Paper memos are old-fashioned and wasteful. For brief communications, it’s more efficient to use email. 8. Offer employee bonuses for use of public transportation. Your employees will get to work on time more often — increasing office efficiency. And you’ll help reduce the use of fossil fuels. 9. Clean the back of the fridge. This is pretty basic, but so often forgotten, even by a conscientious cleaning staff. Cleaning the back of the fridge — the coils and electric circuitry — increases energy efficiency. 10. Insulate, insulate, insulate! It reduces dependence on the thermostat, and makes the acoustics of the office more pleasing. jungle [8] – a different kind of brand agency, developed with the needs and attitudes of socially conscious businesses in mind. An agency dedicated to conscious branding practices. jungle [8] is defined by its guiding principals: brand strategy, conscious messaging, and intelligent design. More importantly, jungle [8] is defined by its results: social consciousness, environmental awareness, and the pursuit of a world that generates positive change. Sound like a dream? Not anymore. jungle [8] adheres to green business practices, such as using recycled paper and soy-based inks. We are involved within our community. We support the arts. We mentor up and coming talent. We love our world and our work—and we’ve found a way to combine the two, so that they benefit each other positively. For more information, visit www.jungle8.com.

westernreporter

June 2008

fun facts & figures 2008 Color Trends

Looking “Green” – People want things they wear and things they use now to look “green,” no matter what color they are. In 2008, looking stylish means looking natural. Materials will look handmade, un-dyed and unbleached. Products will look more like what they’re actually made of, with lots of texture and all the natural imperfections proudly showing through. OffCalico Corners’ whites, sandy and linen-y colors, rock and soil colors, brownish-greens — the colors of nature are seriously fashionable now. There’s News in Blues in 2008 – The “trust me” color will continue to show up on candidates’ ties this election year. But in all areas of decor, blues that remind us of sky and water — inspired by environmentalism — remain prominent, even in the kitchen. New next year will be the emergence of a much blacker blue inspired by technology — a deep, vibrant navy so dark you’ll Dutch Boy swear it's black. Paint Group

Specialized Finishes, Warmer Metallics – Advances in technology have made shimmery, specialized finishes really hot. But in 2008, metallics will go warmer. After so many years of brushed chrome and nickel, look for warmer shades — coppery, bronze-y tones — to prevail. More Ethnic Accents – Globalism Wattyl’s Copper continues to inspire our love for ethnic Pearl accent colors. They’re coming to us from India, China and Latin America. To Moroccan reds and glowing oranges, add rosy pinks, sunny golden yellows and lots of turquoise. Already here in fashion and home design, these ethnic accents will show up as “punch” colors in hotels, restaurants and retail environments, too — often paired with rich browns as neutrals. Formica Corp. Color Marketing Group forecasts color trends up to three years into the future for its members, many of whom must plan ahead for product, space and materials introductions. For more information: www.colormarketing.org.

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Aita and Associates........................................................... 34.................................. (888) 829-8606 American General Finance................................................ 9................................... (800) 422-3778 BA Merchant Services........................................................ 4................................... (800) 422-3778 B&B Banker & Brisbois Advertising................................. 21.................................. (800) 456-0210 CDS Solutions Group........................................................ 11.................................. (888) 309-8002 Citi Retail Services............................................................. 15.................................. (800) 422-3778 Emerald Home Furnishings............................................. 2-3................................. (800) 685-6646 Furniture Training Company............................................ 48.................................. (800) 422-3778 Furniture Transport Group............................................... 32.................................. (800) 438-8244 Furniture Wizard................................................................ 37.................................. (619) 869-7200 Hoyt Highfill & Associates................................................. 17.................................. (318) 322-3846 JRM Sales & Management Inc......................................... 41.................................. (678) 574-5541 Managment Development Institute................................. 43.................................. (800) 888-9590 MicroD................................................................................ 46.................................. (800) 964-3876 PROFITsystems, Inc........................................................6 & 51............................... (866) 453-5010 Simmons Company................................................... Back Cover.......................... (510) 357-2230 State Comp Insurance Fund............................................. 39.................................. (800) 422-3778 TruckSKIN........................................................................... 34.................................. (877) 866-7546 ViewIT Technologies...................................................... 26-27............................... (905) 639-8609 WHFA Membership........................................................... 33.................................. (800) 422-3778 WHFA Warehouse Products............................................. 45.................................. (800) 422-3778 WHFA Website.................................................................. 18.................................. (800) 422-3778 Las Vegas Market............................................................... 19.................................. (800) 962-7469

advertising inquiries & rates Contact: Cindi Williams, WHFA Events Manager, 500 Giuseppe Court, Ste. 6, Roseville, CA 95678. (916) 960-0277 E-mail: cwilliams@whfa.org. Subscriptions: $35.00/year, USA. Published by Western Home Furnishings Association, a National Home Furnishings Association affiliate, in the interests of retail home furnishings dealers, manufacturers, distributors and sales people. Distributed to retail merchants handling furniture, accessories, bedding, floor coverings, and specialty home furnishings in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington and Wyoming. Mailing list compiled by WHFA. Official publication of Western Home Furnishings Association, which is responsible for editorial content and advertising policy. The views expressed in articles appearing in Western Reporter are not necessarily those of Western Home Furnishings Association. Western Reporter magazine is copyrighted by Western Home Furnishings Association. June 2008, all rights reserved.

Western Reporter:

Read by Retailers in the West

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

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

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