September 2009 Western Retailer by Western Retailer Magazine

Journal of the Western Home Furnishings Association

western retailer

September 2009

www.WHFA.org

Solution for Retailing Success Member Profile:

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

New Intro

duc tion

W IN E R M A E L W ITH W inning Product,

winning prices, visit us at Las Vegas Market September 14-17,2009 at the World Market Center, B-1350. View over 50 new winning collections.

New Introd ucti on

on ucti New Introd New

n tio c u d Intro

Emerald Home Furnishings

Tacoma, WA High Point, NC Las Vegas, NV Customer Service: (253) 922-1400 Fax: (253) 922-3747

www.emeraldhome.com

Journal of the Western Home Furnishings Association

western retailer

EDITORIAL STAFF Managing Editor: Melissa Dressler................................ mdressler@whfa.org Publisher: Melissa Robinson............................................ mrobinson@whfa.org

table of contents featured articles

Advertising Manager: Cindi Williams..............................cwilliams@whfa.org 2009 WHFA OFFICERS AND EXECUTIVE COMMITTEE WHFA PRESIDENT Marty Cramer - Cramer’s Home Furnishings, Ellensburg, WA...........(509) 933-2172 PRESIDENT ELECT Claudia LeClair - Fiesta Home Furnishings, Scottsdale, AZ...............(480) 951-3239 VICE PRESIDENT Angel Lopez - Dearden’s, Los Angeles, CA........................................(213) 362-9600 TREASURER Chris Sanders - Everton Mattress Factory, Inc., Twin Falls, ID..........(208) 326-3407

old RULES

rges cing Cha NO Finan ents NO Paym st NO Intere

It’s All About Sales & Marketing Are Sales and “No-No-No” the Solution for Retailing Success?...... 12 Operational Excellence Maximizing Profit and Cash Flow in Tough Times........................... 18

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

Inside Scoop on the RRC.................... 21

PAST PRESIDENTS George Nader - Nader’s La Popular, Gardena, CA............................(310) 327-8585

Safety Corner..................................... 31

Cherie Rose - The Rose Collection, Los Gatos, CA...........................(408) 395-7773 EXECUTIVE director

The World Around Us

Sharron Bradley - WHFA, Roseville, CA.............................................(916) 784-7677 AT LARGE EXECUTIVE COMMITTEE MEMBers

Knock Off the Doom and Gloom Headlines....................................... 32

Gary Absalonson - Walker’s Furniture Inc., Spokane, WA.................(509) 533-5500 Howard Haimsohn - Lawrance Contemporary, San Diego, CA.......... (619) 291-1911 Marvin Kerby - Kerby’s Furniture, Mesa, AZ.......................................(480) 834-3888 Lael Thompson - Broyhill Home Collections, Aurora, CO...................(303) 360-9653

Showroom Style

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

Redesigning My Showroom........... 37

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

in every issue

Eric Foucrier - Linder’s Furniture Mart, Garden Grove, CA................(714) 210-4848 Giff Gates - Gates Furniture, Grants Pass, OR..................................(541) 476-4627

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

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

Board Member Q&A with Howard Haimsohn . . . . . . . . . . . . 8

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

Member Profile with HW Home, Boulder, CO. . . . . . . . . . . . 28

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

Program of the Month: Mystery Shopper. . . 35

Don Lemieux - Naturwood, Rancho Cordova, CA..............................(916) 638-2424 Jeff Lindsley - Lindsley’s Home Furnishings, Grangeville, ID.............(208) 983-1040 Sandy Lundgren - Ideal Home Furnishings, Olympia, WA.................(360) 790-3955

contact

Robert Myers - Ashley Furniture HomeStore, Chico, CA....................(530) 345-2616 Mark Navarra - Jerome’s, San Diego, CA..........................................(858) 753-1549 Michael Nermon - Ergo Customized Comfort, Irvine, CA...................(949) 833-0338 Scott Selden - Selden’s - Tacoma, WA...............................................(253) 922-5700 Sally Servidio - Silverado Home & Design, Napa, CA........................(707) 251-0888 Mike Shuel - Meredith Furniture, Yakima, WA....................................(509) 452-6221

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

est.1944

Tom Slater - Slater’s Home Furnishings, Modesto, CA......................(209) 522-9097

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

Twitter: www.twitter.com/WesternRetailer

Business Manager: Janice Carlson..................................................(916) 960-0347 Events Manager: Cindi Williams.......................................................(916) 960-0277

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

Operations/Warehouse Manager: Jef Spencer...............................(916) 960-0386 Communications Planning Manager: Melissa Robinson................(916) 960-0349 Managing Editor & Webmaster: Melissa Dressler...........................(916) 960-0385 Membership Manager: Michael Hill..................................................(916) 960-0263 Member Services Specialist: Margie Jacobs...................................(916) 960-0199 Member Services Rep: Adam Gardner............................................(916) 960-0291 Accounting Assistant: Melody King.................................................(916) 960-2476

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

est.1944

western retailer western retailer

WHFA

ACADEMY

RRC RETAILER

RESOURCE CENTER

fast

September 2009

forward

Your Industry. Your Future. Your Decision.

president’s message

If you listen to our political leaders from either party, you will hear them say that small business is the backbone of the American economy. If you watch their actions you will see a much different picture. The economic bailout has proven to be a boon for the large, fat corporations that created the mess we are all in, and frankly it has done little or no good for small business, the “backbone of the American economy”. Health care reform, foreign aid and trips abroad seem to be the plan of the day. In July, our President pledged $68 billion dollars in foreign aid to Africa. If that number was reduced by just $4 billion and those dollars made available to small businesses as grants, the small businesses would become stronger overnight. Think of the stimulus that amount of money would create in small town America. Unfortunately that isn’t likely to happen. In time, the economy will come around, but there are no quick fixes for you and me. My point is that as an industry, we are on our own. You and I, our vendors and suppliers are going to have to find a way to get through this current economic climate. We can no longer wait for things to get better. We must find a way to be profitable at the current level of sales. I know we have all reduced spending and done all we can to make things as lean as possible. I was in a meeting the other day, and we were all feeling pretty cheery about our current position. We have been able to make our company profitable even in the lean summer months and are looking forward to the fall selling season when things should be better. Then scrooge raised his ugly head and asked the one question we all were thinking, but were afraid to ask, “What if things get worse?” Honestly I don’t think things will get worse, but what if they do? Do you have a plan of action ready to go? I know that we do now, and it has given us the peace of mind that was not there before. Facing the hard problems before they become reality is part of being a leader. Being optimistic is something I highly recommend. Pessimistic people are, for the most part, miserable to be around, but don’t let your optimistic attitude keep you from planning for the worst even though you are hoping for the best. I really think we have seen the worst of times, but I have a plan just in case I am wrong again. I hope you do too.

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

ON THE COVER Interior shot of this month’s member profile, HW Home, Boulder, CO. For the complete story see page 28.

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

western retailer

September 2009

editor’s message

In July, Newsweek came out with the headline “The Recession Is Over”. Whether this claim is true or not, I believe it is a move in the right direction. For months the media has been reporting doom and gloom headlines which have done nothing other than further the economic problem. With this headline, a major media outlet was finally promoting a positive idea and giving Americans something to be hopeful about. This issue features a great article by Ron Martin on not listening to the “doom and gloom” headlines. Your confidence in the economy will be reflected by your employees and salespeople — if you don’t have confidence in your business and the economy, it gives your salespeople an excuse for having a “bad” month. He suggests trying a few different tactics to rebuild your confidence in the economy by looking for evidence in your business that makes these headlines untrue. Recently, the Western Retailer staff sat down to discuss the direction of the magazine and the needs of our readers. We decided it was time to make an exciting change to the format of Western Retailer by no longer having monthly “themed” issues. With this change, the magazine will now provide retailers with a multitude of articles on topics impacting their business. This issue now reflects the new style of Western Retailer magazine. Each month’s issue will include four key areas that relate to your business: It’s All About Sales and Marketing, Operational Excellence, Showroom Style and The World Around Us. We will also feature a “Retailer Perspective” for some of the articles, giving you real world experiences of retailers who have taken the advice from the article and applied it to their businesses. I hope you enjoy the great articles and new format of the magazine, and I would love to hear your feedback.

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

looking forward

whfa members

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

western retailer

July/August 2009

www.WHFA.org

to October 2009

2009 Western Retailer of the Year Naturwood Home Furnishings Virginia and Lisa Keyes

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

• Industry Outlook • Engaging Your Customer Online • Business Financial Health

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

September 2009

• Freshen Up Your Showroom

... and much more

western retailer

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

Shooting for the moon has never been easier!

The first truly inclusive rug program on the market today! Certified Designer Training Custom Design Rug Program 5 Year Protection Care Plan Sales and Market Analysis Dynamic Advertising On Demand Networked Shipping and Tracking Partnership Rebate Contribution Impact your profitability with

- No upfront expense!

See us at:

mpact

® Plus

impactPlusProgram.com

Las Vegas World Market Sept. 14-17 Building C C-510-15

shootForTheMoon@impactPlusProgram.com – 800.719.6840 – 2514 4th Ave, Seattle, WA 98121

industry beat Sit ‘n Sleep Launches New Website Offering Sleep Tips

Emerald Home offers great pricing and product at annual Open House

Beginning with new product, to fantastic Open House only pricing, the annual Open House on June, 10 and 11 at Emerald’s Tacoma, WA showroom offered something special for Emerald’s customers. Organized every year, the Emerald Open House celebrates great customers, fantastic product at outstanding pricing. Over 120 visitors received tours of Emerald’s corporate office, 12,000 sq. ft. showroom, 160,000 sq. ft. warehouse and mattress production area. Over 10 new collections were shown to customers for the first time. Emerald had 100 plus new product placements during the Open House which surpassed their goal. “This was a refreshing surge of business and optimism in a down market,” expressed Ross Benfield, Washington state sales rep for Emerald Home. For information on Emerald Home Furnishings visit www.emeraldhome.com.

Emerald Home Furnishings began the summer with a HOT Open House for Emerald customers.

continued on page 11

Sit ‘n Sleep launched a new website, www.sleepbook.com, which correlates to their new book with sleep insights for the frazzled, weary Californians. Customers can visit the site to fill out an online survey that their customized sleep book is based off of. Larry Miller, president of Los Angeles-based Sit ‘n Sleep, said many factors can contribute to a poor night’s sleep, among them a poor mattress. “People already have enough to worry about,” said Miller. “And when compounded with things like a bad economy and soaring unemployment rates, this only adds to more sleepless nights.” Articles on the site have catchy titles such as “Is your mattress making you fat?” and “Five easy ways to sleep better tonight.” Learn more by visiting www.sleepbook.com.

board

member

Q What is your biggest challenge in furniture retailing? A Not taking work home, physically and more importantly, emotionally. Q What is your most prized possession? A My family is most important to me. But, a close second might be my wine

Q&A

collection.

with Howard

quite valid.

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

Q What does the next five years hold for you? A Having adjusted somewhat to the current business climate, the next five years should provide growth and profitability to my business. I hope to be able to relax more, travel a little more and perhaps find time to do more fly-fishing.

Q What are three words that describe you best? A Enthusiastic, friendly and multitasking. Q What do you enjoy most about being a WHFA member? A I enjoy the relationships I have made with other members. I have gained

Howard Haimsohn Lawrance Contemporary 633 University Ave San Diego, CA 92103 www.lawrance.com (619) 291-1911 howard@lawrance.com

September 2009

Q What do you value most in an employee? A Loyalty, honesty and a strong work ethic. Q What are the rules you live by? A My word is a commitment. Treat all people fairly. The “Golden Rule” is still

tremendous knowledge through WHFA seminars and through networking. I believe that WHFA has helped me to grow as a professional in this industry.

western retailer

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

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

What solutions do you need to improve your profits?

Online Marketing & e-commerce solutions for the Furniture Industry.

www.microdinc.com. See us at Las Vegas Market • World Market Center, Building B, 16th Floor, Retail Resource Center #17 • September 14th - 17th, 2009

Employee Benefits Specialist

Long Term Care Insurance

How To Protect Your Assets In Retirement

t was not so long ago that Wall Street’s meltdown and its impact on our assets dominated front page news. The loss of value to 401k’s, pension plans and, home valuations instilled fear in those of us planning for retirement. We heard of 30-50% losses in asset valuation and, in some cases even higher. Needless to say, this put a real wrinkle in our retirement plans. Visions of dream vacations and, prospects for a quality life after our working years, all fading or, certainly put in timeframes more in the future. What of the more pressing issues of retirement like quality of life and health care. “We’ll have Medicare by that time” some say. But, this speaks of medical care needs, doctors, hospitals, medications etc.. What if you need help with the simple activities of daily living, like bathing, dressing, shopping, toileting, getting from one place to another? These needs are called custodial care or, Long Term Care and most of us have not given them much thought. Think of this, 50% of men at age 65 and, 75% of women at age 65 will need long term care in their lifetime. Current average cost for assisted living or, nursing home care is around $200 per day. Average duration of long term care need is almost 3 years. At $200 per day that amounts to $73,000 per year or, $219,000 for the three years and, this is at today’s costs. What will they be when you need the care, $3, $4, $5, $600,000? Do you have enough in retirement funds for this kind of expense? What about the other costs of retirement you were looking forward to, is there enough for them too? What if there was a way to protect those retirement assets and still get quality care when you need it? Well there is.

707.829.8606 phone license# OE22529

Long Term Care insurance is one sure way to protect retirement assets. Why? Because it takes pennies and turns them into dollars, lots of dollars. Consider this, for a 58-year old woman with a $200 per day, three years of care policy, you could have a pool of money of $219,000 the day you purchase your policy. The cost to create this pool would be about $2,700 in annual premium. If applicable, you could use company dollars to fund the premiums. By age 83, when the projected long term care need arises, you could have a pool of money in excess of $742,000. You will have paid approximately $68,000 in premiums in that time. That is a return on your money of 1,100%! Anything in your retirement portfolio giving you this kind of return? I didn’t think so. And what of the retirement funds you’ve been investing or, setting aside? You get to use those for their original purpose, a quality retirement. In the financial planning world this is called a no-brainer. You can gamble that retirement funds will be there if a long term care need arises ( and, risk putting your life in the hands of Medicaid) or, you can plan wisely, use your retirement funds to enjoy life and, with peace of mind, let someone else take that gamble. To get a quote for your Long Term Care needs contact Bob Aita, Aita and Associates, your WHFA Health Insurance Program consultant and broker at (888) 829-8606 or email Bob@aitaandassociates.com.

888.829.8606 toll-free www.aitaandassociates.com

est.1944

continued from page 8

Home Furnishings Industry Leaders Launch Innovative, MultiChannel Consumer Campaign World Market Center Las Vegas Introduces Layered Platform Aimed to Help Retailers Inspire Consumers by Rebuilding Personal Connections to ‘Home’

LAS VEGAS — In an unprecedented initiative to unite and energize the $133 billion home furnishings industry, World Market Center Las Vegas, along with leading industry groups, is launching “Is it Home yet?TM” campaign. Designed to position home furnishings as a needed and desired enhancement to the family’s home and lifestyle, not a luxury, the campaign will simultaneously ignite consumer interest and increase retail traffic and sales. This broad based initiative is being launched by World Market Center Las Vegas, the home furnishings industry’s leading marketplace, in collaboration with the National Home Furnishings Association (NHFA) and Western Home Furnishings Association (WHFA) who will drive retailer participation among their 10,000-plus member stores. The campaign also marks September as “National Home Furnishings Month” culminating in a highly promoted 10-day sales event at the end of the month. “Is it Home yet?TM” campaign is designed to provide an entirely new and unified platform for the benefit of the home furnishings industry, empowering manufacturers and retailers to market their businesses, brands and products more cohesively. The first phase of the campaign will be supported by advertising, branding, education, promotions, sales events, policy efforts, public events, social media outreach and consumer research. The marketing program aims to motivate and inspire consumers, by connecting people’s investment in their home, to the intrinsic and emotional value home décor and furnishings can add. September was chosen as the ideal launch window for this initiative due to consumers’ focused attention to their home, family and holiday planning and because it marks the start to the critical fourth quarter retail sales period. “Is it Home yet?TM” is a consumer-facing marketing strategy designed to reach people at multiple touch points that will ultimately benefit the entire home furnishings industry,” said Robert Maricich, president and CEO, World Market Center Las Vegas. “This is a rare opportunity to bring together the entire industry for the benefit of raising awareness and positively changing the way people view purchasing home furnishings. Through this campaign, we will offer our partners the tools and resources they need to Contact WHFA at www.WHFA.org or (800) 422-3778.

reach consumers through indepth industry analysis and creative content that will reinforce transforming a house to a home. This initiative aims to unify the marketing efforts of home furnishings retailers and brands in order to deliver a powerful and emotional ROI to consumers.” In celebration of National Home Furnishings Month, there will be a 10-day industry-wide event supported by retailers, and designed to engage consumers. This first annual event will include a sweepstakes throughout the month of September in which five lucky winners will be awarded weekly with room makeovers valued at $5,000. Consumers will be able to visit the campaign’s website, HomeYet. com, beginning on August 24 for more information including the sweepstakes rules and regulations. The campaign is targeted toward the household’s core furnishings decision maker— the ‘every woman’— who turns to the Internet as her number one source for information about the home, according to Market Research Insight data. The advertising plan, which consists of print, outdoor and digital components, will have messaging that will be relevant to ‘her’ through content and behavioral targeting. “Is it Home yet?TM” takes a two-pronged approach to generating awareness: a national media plan that will reach consumers who are looking for content about refurnishing their homes; and retailers, that will be provided with a tool kit to help them activate the campaign in their own local markets. The core of the national media campaign is an innovative digital program anchored by owning and designing the “Room Design” section of MSN’s Lifestyle network, which will run from August 24 to September 30. A robust display and search program will run on MSN and several display advertising networks, and through Google AdWords platform. The national print advertisements will run in Elle Décor and Metropolitan Home. In addition, outdoor billboards will run in several key markets. The brand is expected to be further leveraged by retailers in their existing advertising spent for September, which will significantly multiply the frequency and reach of the message. “We are extremely proud to be a part of this initiative in cooperation with World Market Center, which brings together retailers and manufacturers and presents an incredible opportunity for consumers to connect with home furnishings information, education and product to make ‘her’ home more comfortable, inspirational, beautiful, and warm,” said Steve DeHaan, executive vice president of the National Home Furnishings Association. “Through this campaign, manufacturers and retailers will have an opportunity to work toward the same common goal, with a unified message that reinforces the incredible value for consumers.”

It’s funny how new furniture has a way of restoring people. Add something special to your home and experience it firsthand. Join stores nationwide, September 19–27, for special values during National Home Furnishings Month. For a chance to win a room makeover and to find a local retailer, visit HomeYet.com

western retailer

September 2009

It’s All About Sales & Marketing

old RULES

s g Charge in c n a in NO F ents NO Paym est NO Inter

new Reme

RULE

mber the 4 M’s Mess age Medi um Mana g Marr ement iage

R Doug Knorr president Knorr Marketing

ecently, I spent two days at the WHFA Conference in Maui discussing how the game of retail has changed. We reviewed what the new game looked like and the strategies that are required to successfully play by its rules. Today, most every retailer is facing the reality of fewer shoppers, smaller purchases and increased competition from the big-box chains. In addition, we are dealing with increased media fragmentation, making it harder to reach new customers with a high degree of efficiency. Therefore, most retailers focus their marketing efforts on strong sales events and financing promotions to drive the consumer into their stores, which are being met with diminishing results. So, let me ask you this question — If the answer to retail success is “sales” and “No, No, No” financing offers, why aren’t more retailers enjoying greater profitability and success? Let’s examine the rules to the new game, and what you need to turn your business around and enjoy retailing success. The first thing we must do is understand why the game has changed. The game has changed because the consumer has changed. Until you accept the fact that the consumer has changed, you will never enjoy success, because you will still be playing the retail game by the old rules. You remember the old advertising model rules? The retailer told the consumer when to shop and what the conditions of the sale would be and assumed the consumer would like it!

September 2009

western retailer

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

This advertising model made sales and pullthrough offers king! But today, even though “sales” and “No, No, No” are meaningful in every strategic marketing plan, they are not the entire solution. When you focus exclusively on sales and “No, No, No” events you fall into a sea of sameness and sound like every other retailer. And for today’s media-wary consumer, this kind of advertising becomes “blah...blah...blah.”

There are four basic rules to the new game of retailing. They are: 1. 2. 3. 4.

The Message The Medium The Management The Marriage

The Message Your message must convey your unique reason for being — your brand’s promise that differentiates your company from the competition. This differentiation must present a defensible advantage the consumer will receive if they shop your store instead of the competition. Only then will the customer clearly understand why they shop your store over another. For example, earlier this year, while developing a strategic marketing plan for a client in the southwest, we realized that to establish a strong brand position in his markets, he would need to change the name of his stores. With a degree of hesitancy, he allowed us to move forward and develop a new name, as part of his new marketing strategy. Here was the situation: • His stores sold the identical merchandise of a well-known brand that had company stores right next to his stores. • His name described him as a sofa store, yet he also carried bedrooms, occasional, entertainment, leather, etc. • Everything offered in his stores was available for sale off the floor, providing immediate gratification; while the company stores right next to his stores took two to three weeks to have products delivered. Our solution? • We focused on his unique strength in the market which was that the consumer did not have to wait and that they could enjoy immediate gratification. • We changed his name to “Furniture Now” which correctly communicated he was more than just sofas. Contact WHFA at www.WHFA.org or (800) 422-3778.

If the answ success is er to retail “No, No, N “sales” and offers, whyo” financing more reta aren’t greater prilers enjoying and succe ofitability ss?

• We added the promise, “When your comfort can’t wait!” • His website, TV spots and print, as well as in-store signage, all creatively communicate his unique brand promise. Now, instead of focusing our advertising on “sales” and “No, No, No,” we focus on his unique market advantage. Our merchandise is priced competitively and we continue to drive home the advantage that the consumer can have it today and the lowest price is guaranteed.

The Medium Department store merchant John Wanamaker once said, “Half the money I spend on advertising is wasted; the trouble is, I don’t know which half!” Do you ever feel that way? To win in retail today there is no room for media inefficiency! Today, technology, software and research tools have enabled marketers to hold the media accountable, by being able to analyze targeted rating points, cost per thousand metrics and watching trends of rating books. Suffice to say, the Internet has taken center stage with consumer communications today, and it must become a major part of your marketing plan. Your website deserves an investment not only in rich content about your store and its brand, but also an investment in SEO (Search Engine Optimization) and PPC (Pay-Per-Click) to augment traditional media in driving people to your website. With traditional broadcast mediums (TV & radio) it is important to know how many houses are using TV during a program (HUTs) and how many people are watching a certain program (PUTs). For radio, look closely at rankings by age and day part. With all broadcast mediums, pay attention to audience fragmentation and be certain the audience each promises is being delivered. With newspapers, it is vital to compare their in-home distribution against the market you are trying to reach. Be sure to request in-home subscriptions by zip code to define what percent of the circulation meets your needs and negotiate accordingly. While there isn’t space in this short article to go any deeper on media, if media analysis, planning and monitoring are done correctly, you may save 15 percent to 35 percent in media costs if you know how to hold the media accountable.

Management Management must focus on accountability at every level and department of the company! Today, successful retailers focus on increasing margins, reducing waste, increasing close rates and average tickets, as well as, managing efficiencies in every department and with every line item on the ledger. western retailer

September 2009

What about turn rates? Do you have an expected turn rate when you bring a new product on the floor? Are you replacing and discontinuing items that do not reach your minimum expectation? The cost of a computer system or an individual to manage this major part of your company pales in comparison to what you are losing because you are not holding your merchandising accountable. I have a simple philosophy when it comes to merchandising. Every item on the floor is a soldier and if it is not helping you win the war on increased turns and gross sales — shoot it! What about salespeople? There have probably been more books written and videos produced about managing the sales staff than on any other aspect of furniture retailing. So, when industry research has indicated that 80 percent of people coming into a furniture store do so with a desire to buy; why are we happy with an average of 18 percent to 33 percent close ratios? There is nothing more to say about this except you need to raise the bar at your store. Hold your sales staff accountable. It is a fact that people don’t buy because they haven’t been told enough yet to come to a buying decision. Does your sales staff know all the features and benefits of your products? Do they know how your products compare to those of your direct competitors and how to sell around the competition? Do you quiz and test the sales staff one-on-one? I think you get the point. We can all do better at increasing close ratios and average tickets by holding the sales staff accountable. We don’t have time in this article to discuss the importance of managing customer returns, delivery, insurance costs and so much more. However, each of these must be held accountable.

ysis, l a n a a Every item If medi g and on the floo e n i n n o n d is e pla r a a s o ld g ier and if it r n i r o t i y n a is not help mo y, you mt to 35 l ing you win t c e r r t n h co e e w c a r r e s o p t n save 15t in media cosold turns and gincreased percen now how to h ble. — shoot it ross sales ! if you k dia accounta the me

Furniture advertising made easy. • Advertising Ser vic es • Email Marketing • Website Develop ment • Direc t Mail • Inserts & Circulars • Gift Incen tives • POS Materials Working hard for furniture retailers since 1912. See us in Vegas: WHFA Retailer Resource Center Building B, 16th Floor

The Marriage Finally, I want to discuss one of the hardest things to do in retail today, which is creating and maintaining loyal customers. In fact, it is so difficult, I believe it is the number one reason that retailers fall back to “sales” and “No, No, No” finance options — because they are easier.

continued on page 17 Contact WHFA at www.WHFA.org or (800) 422-3778.

western retailer

September 2009

If your business was in

would it be chosen last for the team? Winning in the retail arena takes more than just the right product at the right price. In this fiercely competitive world, if a business does not change and evolve to meet new needs and demands, they will be chosen last in the most important game of all – the consumer game. Winning businesses are winners because they do things differently. They have fabulous customer service and follow up, and their business processes are designed to get things done efficiently. They just make it easier to shop at their store. PROFITsystems has the tools to help you go from being a bench warmer to being the most valuable player. Where can your game be improved?

Our Total Retail Success System can help you improve your game where you need it most. Make your business an MVP. Visit us at:

www.profitsystems.com 800.888.5565 “Using PROFITprofessional, we learned to manage our inventory and our profitability has improved substantially. We are able to stay ahead of our competition.” Chuck McMillin McMillin’s Furniture Inc. Yale, MI

Making Retailers More Profitable

continued from page 15

How important is customer loyalty and customer retention to you? Consider this research from Bain and Company, “In business after business, 60 to 80 percent of customers who defect to a competitor said they were satisfied or very satisfied on the survey just prior to their defection!” Still not convinced on the importance of customer loyalty? Consider that a 2 percent increase in customer retention is the equivalent of a 10 percent reduction in operating costs while a 5 percent improvement in customer retention can lead to profit increases up to 80 percent. Findings are from John Bishop and Arthur D. Little Co. research. This evidence makes it clear that we need to focus on building greater customer loyalty. We need to focus on building what I call, “The Marriage” — building brand loyalty or commitment! You’ve probably heard that a good marriage takes work. So does your marriage with your customer. From clearly explaining why your store is different to offering rewards to your loyal customer (e.g. private sales, sneak-preview invitations, interior decorating seminars, etc.), it takes action on your part to cultivate a long-lasting relationship. And that brings us back to our original question: Are “sales” and “No, No, No” the solution for retailing success? Consider that the word “sale” does not earn loyalty. Rather, it is a flirtatious enticement that only lasts for a moment! By itself, “sale” promises only a deal to those who are in the market to buy coincidentally at the same time. It wastes much of your advertising investment, because it does nothing long-term to build your brand or promise to the consumer who is not in the market to buy at that time. I want to make it clear that sales and clearance events have their place and are vital to retail. However, they are very expensive if you don’t tie-in your brand’s promise and they are definitely not the solution to building loyal customers for life. As we presented with our client in the southwest, once you build a defensible position that communicates your unique promise to the consumer, every dollar you spend in advertising will not just last for a day. Instead, every advertisement will continue to reinforce old and new customers alike as to why you are their store of preference. The best part? Your customers will turn a deaf ear to the “sales” and “No, No, No” finance offers from your competition. So, to start enjoying retail success, focus on your message, the communications mediums you use, the management of your business and be devoted to the marriage with your customer.

norr Doug K minar, r a e h se Come he RRC ising t t a k ert spea ful Adv on s s e c c ge” “Su igital A mber 17 D e h t in te ay, Sep d s r u h T 0 a.m. at 10:0 MC B-1630 W

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

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

Retailer Perspective Avoiding the Term Sale Jeff Winters, owner of Discovery Furniture in Topeka, KS has always avoided using the word “sale” in all of the store’s advertising and marketing since opening in 2000. While the store occasionally offers special incentives attached to an in-store event, they have decided to avoid using the term “sale”. “Our definition of sale is playing with the price — you put the price down and then the price goes back up,” said Winters. “Part of our reasoning behind that is the term is like a drug. A little bit works and that is great, but pretty soon you need a little more to see the same results. Eventually you are hooked and you can’t get off the ‘sale’. So we try to avoid that as much as we can and look for other reasons to get people to visit our stores.” Instead of using the term sale in their promotions, Discovery Furniture focuses on holding in-store events and advertising their wide assortment of accessories. Quarterly, the store will hold a weekly design class for four to five weeks which can draw in crowds of over 100 women. The design classes are on topics such as painting, faux painting, rugs, lighting, mantels, etc. “Each class is designed to be fun and interactive for the customers in attendance. We have had groups become so large that we have to split them up and go through different parts of the store. When customers are at the events we also try to do something special for them too, such as a special buy on a product being used in the class,” Winters added. Discovery Furniture also focuses on advertising that they are a highly accessorized store. “We don’t build in extra margin on our accessories so they are very competitively priced,” Winters said. “Our philosophy is that a woman will buy a sofa every six years if you are lucky, but she is always looking for new accessories for a room or a gift. That creates more traffic and hopefully they will see a sofa that they can’t live without. So in our advertising we focus on the fact that we have a large assortment of accessories in the store.” Taking the focus off of the term “sale” has been very successful for Discovery Furniture. By focusing on other aspects of their business, they have been able to stand out from the rest of the crowd and become known as the place for great accessories and design classes in Topeka. Melissa Dressler, Western Retailer managing editor.

western retailer

September 2009

Operational Excellence

Maximizing Profit and Cash Flow in Tough Times

he current general economy “doldrums” continue to threaten the very survival of many furniture retailers. It is critical that more attention than ever before be paid to basic profit and cash flow maximization techniques. Furniture retailers that can sharpen their practices now will be in position to “do very well” as economic conditions improve. Below are some techniques that any furniture retailer can apply. Mike Hulser financial management consultant The Biz MD

Maximizing Profit Growing Sales and Margin

September 2009

• Practices: Add-on Sales — If you’ve sold the “big ticket items”, be sure to ask for the sale of the accessories. Becoming adept at this practice can drive a 5 percent to 10 percent sales increase without a single additional customer coming in your store. To be effective at add-on sales, however, you need to: ° Expect it of your salespeople. ° Train your salespeople to do it. ° Track it and reward it. ° Have specific items to suggest identified. ° Stick with it. • Product: ° Keep looking for new products, new applications and new themes that will drive higher sales. Lots of manufacturers are very hungry now

western retailer

and will consider extended payment terms for an initial order. ° Always be pruning. There is always a “bottom 10 percent turnover” pile. Keep getting rid of it. DO NOT let product make a “permanent residence” on your floor. If it isn’t turning, liquidate it and put the money in “new stuff”. ° Ask your suppliers for price reductions. Nothing ventured, nothing gained. This can often be your highest return per minutes invested. • Salespeople: ° There is absolutely no reason to be carrying mediocre salespeople right now. There are too many good people out there looking for work. Make sure your Sales Comp. Program rewards sales performance. Your pay plan should be a minimal salary or wage against a strong commission rate. Put “maximum incentive” on the incremental sale. ° Train, train and retrain. Product, selling, overcoming objections, your POS system, etc. ° Lastly, have fun with sales contests “all the time”. Keep changing them. • Pricing: Consider increasing your selling prices to improve your margins. Yes, you read that right. If you have great products, great salespeople and a sharp looking Contact WHFA at www.WHFA.org or (800) 422-3778.

showroom, go for it. Force your team to be worthy of high prices. • Promotion: Chances are you’re spending less on advertising and promotion than you did a couple of years ago. That’s not a problem if you clearly know which of your campaigns actually caused sales. The 80/20 rule (80 percent of the value is likely in only 20 percent of the items) applies to marketing expenditures at least as well as it applies elsewhere.

Reduce Operating Expenses • Personnel: In addition to the notes on salepeople: ° Do not continue to carry any mediocre people in any position. You can’t afford it. ° Have a short-term perspective. Eliminate any position that doesn’t help you make money next week. ° Reduce salaries and/or wages by as much as 20 percent and replace with a percentage of profit and/or cash flow. • Occupancy: ° Ask your landlord for a rent reduction, either as much as 50 percent or simply a percentage of sales. You will be surprised at how receptive your landlord might be, particularly if you can support your position with financials. ° If you can’t get a rent reduction, tell your landlord you will need to defer some of the rent. I suggest at least 50 percent. Tell the landlord you will catch up when things improve. • Other: ° Credit Card Discount Expense — Train your people to ask “cash or check?” If they ask for a credit card, have them ask, “Will that be VISA or MasterCard?” American Express costs the most and is the worst choice.

inventory), it no longer matters what the product costs. The only thing that then matters is how much (however little that might be) cash we can get for it. ° A simple rule — Any product that you have had on hand for over a year is financially “dead”. Conduct a sale, with significant discounts and clear the product out. If all you can get is “15 cents on the cost dollar”, take it. ° Manufacturers who want to get their product into your store may consider consigning inventory to you. You can’t beat this deal. As noted above, another method might be extended payment terms, perhaps something like 20 percent — 30 days, 30 percent — 60 days, 50 percent — 90 days, etc. • Payables ° In times like these, you want to hold onto every dollar of cash as long as possible. The basic theory — hoard cash. ° You do not ever want to pay “early” for anything unless you are granted a discount or some other financial benefit for doing so. Again, in times like these, the benefit better be significant. ° Negotiate extended payment terms, particularly for large orders. ° Unfortunately, sometimes your cash position is such that you must “stretch out” payments to your suppliers, in “violation” of the payment terms to which you agreed. If the situations warrant, I suggest: – Proactively and truthfully communicate with the suppliers. Tell them only what

Maximizing Cash Flow In addition to the above actions to improve profitability (including product pruning and rent deferral, which are actually cash flow actions), a furniture retailer can improve their cash flow by focusing on inventory, payables and capital expenditures. • Inventory ° The key to inventory optimization is turnover. Product that “sits” is undesirable. We want product to be “moving”, or “turning”. Once a product stops turning (becomes “dead” Contact WHFA at www.WHFA.org or (800) 422-3778.

western retailer

September 2009

you absolutely know you can do. Never overpromise. If things change and you must break a promise, call them up. – Prioritize who gets paid first. Like it or not, those that can contribute to near term sales get first priority. Others will simply have to wait, sometimes for a long while. Remember — As long as you remain viable, there is at least the chance that all will be paid eventually.

“

• Capital Expenditures ° Except for important safety and security items, “super critical projects only” — You want at least a three-year payback period, if not a two year. ° When evaluating a payback period, be careful of projects that pay back via a sales increase. You cannot measure the payback in sales. You must measure it in “net margin”, gross margin minus selling expense (commissions and credit card discount expense). This is the money you “get to keep”. ° Instead of purchasing the item, investigate either leasing or securing a “Cap Ex Line” from your bank and borrowing and buying. Maximizing profit and cash flow is hard work, particularly right now. The above practices give furniture retailers a fighting chance of getting through the down cycle and being in position to make some serious money on the other side. Mike Hulser, a nationally renowned financial management consultant and turnaround specialist who does business as The Biz MD, can be reached at (808) 672-0220 or mikehulser@thebizmd.com.

As a member of WHFA, I get

professionals

insight from industry

and learn from their experiences.

By passing on my own experiences, others can learn from me

single most valuable benefit from my membership is keeping abreast of the furniture business while meeting great people.

as well. The

”

Sally Servidio, Silverado Home Catalog & Design, Napa, CA One Store Location, WHFA Member Since 2003

Simplify Your Business Life 20

September 2009

western retailer

est.1944

Western Home Furnishings Association 800.422.3778 • www.WHFA.org Contact WHFA at www.WHFA.org or (800) 422-3778.

RRC

Retailer

Educate

Resource Center

The RRC is brought to you by:

est.1944

access

Market is more than inventory. Visit the RRC for:

connect

• Seminars • Industry Information • Business Solutions

World Market Center, Las Vegas

September 14 – 17, 2009

Building B, 16th Floor | Building C, 5th Floor

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

Building B, 16th Floor

Seminars: 19 business seminars throughout market. www.WHFA.org: Visit for a full list of activities at the RRC.

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

western retailer

September 2009

RRC

Retailer

Resource Center

The RRC is brought to you by:

Now you have ACCESS to almost 40 business providers at the two RRC locations: Argo Select B&B/CMK â&#x20AC;&#x201C; Banker & Brisebois Advertising BA Merchant Services Certegy

est.1944

Citi Retail Services Custom Design Software Escalate Retail

Visit almost 40 industry service providers dedicated to improving your performance and your bottom line. Check out www.WHFA.org and click on the RRC logo to view a complete listing of service providers showing at the two RRC locations.

Furniture Training Company Furniture Transportation Group Furniture Wizard FurnitureDealer.net FurnServe GE Money Genesis Software Systems Guardian Protection Products Guardsman, a business Unit of Valspar Impact Plus by MI Corp. JRM Sales & Management Knorr Marketing Mail America MicroD Inc. Myriad Software & Consulting National Home Furnishings Association NVC Logistics Group, Inc. Profitability Consulting Group PROFITsystems, Inc. Sale-in-a-Box State Compensation Ins. Fund Storis Management Systems Truckskin

Las Vegas Market Building B, 16th Floor Building C, 5th Floor September 14 â&#x20AC;&#x201C; 17, 2009

ViewIT Technologies Western Home Furnishings Association Western Retail Services Corporation Wright of Thomasville as of 8/5/09

Internet Stations & Coffee

brought to you by

Free Buyersâ&#x20AC;&#x2122; Breakfast brought to you by

RRC

Retailer

Resource Center

Find the Hot Spot at the Las Vegas Market Building B, 16th Floor

Power Hour Free Beer, Wine & Small Bites

brought to you by

est.1944

New Products at World Market Center Las Vegas

here is plenty to be excited about regarding the upcoming Las Vegas Market, September 14 – 17, 2009. An unprecedented amount of new product introductions — single lines and entire collections — will be featured at World Market Center Las Vegas. Add in a wealth of educational events and trends presentations, and the inaugural fall market is a watershed event and the “must attend” event this fall. A recent survey of exhibitors conducted by World Market Center Las Vegas reveals that 94 percent of respondents will launch new product during the September Market, most of the products unveiled for the very first time at any market. “When we project the survey results, there will be tens of thousands of new products and lines introduced at September Las Vegas Market,” said World Market Center Las Vegas President and CEO Robert Maricich. “And 80 percent of initial respondents will have product available for immediate shipment. Clearly, now is the time to ‘play to win’ with aggressive product introductions and impactful promotions and specials geared to motivate buyers with incredible value.” World Market Center has a number of new resources for buyers who come to Las Vegas Market specifically looking for new product. The First Look: Las Vegas new product showcase and breakfast gives buyers ways to experience all the new products and collections that will be unveiled at Las Vegas Market. This first-time products and trends presentation kicks off Las Vegas Market on Monday, and attendees will receive a copy of The First Look products Contact WHFA at www.WHFA.org or (800) 422-3778.

and trend tracker, which is intended to whet retailers’ and interior designers’ appetites and guide their shopping for the days ahead. Products and trends editor, Julie M. Smith, president of Nine Muses Media, will present the trends and new products at the breakfast. Some of the nation’s most recognized and visionary leaders will share their best practices and apply them to the home furnishings industry. Howard Putnam will offer practical and simple steps to thrive, by taking advantage

continued on page 26

western retailer

September 2009

continued from page 25

Building Industry Excellence Together

The 2010 Western Retailer of the Year

Nominate Now Visit www.WHFA.org for all the details.

September 2009

western retailer

sponsored by

est.1944

of the opportunities for change and transformation that turbulent times offer. Putnam is the former Southwest Airlines CEO turned author, consultant, mentor and authority on business leadership, customer service, change, ethics and strategic thinking. As part of World Market Center’s role as the new global platform for home furnishings, they also offer comprehensive, dynamic and inspiring design events and seminars. Specialty seminars will feature industry experts, bright minds and highly sought-after perspectives and advice to give market attendees the tools and insight needed to spur business. It’s all part of their effort to fast track attendees about what’s hot on the horizon for next season. Besides the robust Marketsponsored events and educational programming, The Western Home Furnishings Association features dozens of business-building seminars throughout the week in the Retail Resource Center on the 16th Floor of Building B. World Market Center continues to focus on creating strategic alliances with producers from around the globe. Italiano Classico in C-312 follows on from the hugely successful Design Italiano exhibit at last Summer’s Las Vegas Market. Brought to Las Vegas by Fiera Milano, City of Meda, Regione Lombardia and the Italian Chamber of Commerce, Italiano Classico will showcase nearly 40 pieces from up to 20 top Italian designers. Include exhibitors from Latin America, India, Vietnam, Canada, Australia, the UK and more, and buyers will experience the hottest trends from around the world. World Market Center Las Vegas is the international marketplace and they’ll have international companies showcasing a wide selection of global products at September Las Vegas Market. You can check out everything that is happening at the inaugural Fall Las Vegas Market by simply visiting our website www.lasvegasmarket.com. Better yet, see you in September.

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

ELIMINATING THE of the home goods industry. You’ve learned the basics, your business is growing, your needs have evolved, and the industry keeps providing disconnected solutions. PROFITsystems has the tools to put all of the pieces together: scalable software, manager’s reports, industry experts, and continued education. These are designed to stand alone or work together to provide a complete solution to complex business issues. For more information on eliminating the discombobulation in your business, visit us at:

www.profitsystems.com 800.888.5565

“PROFITsystems helps us execute strategies that add $300,000+ to our bottom-line every year.” Shupei Chiao Thomasville and Drexel Heritage Phoenix, AZ

Making Retailers More Profitable

Member Profile

HW Home Denver, CO

Melissa Dressler Western Retailer managing editor

leven years ago, Jim Hering and Ron Werner took a trip from Chicago to Colorado to assist Ron’s sister in a home renovation. After shopping for furniture, they quickly realized there was a lack of any sophisticated boutique home furnishings stores in the area. They had discussed opening their own boutique design business in the past and saw a great opportunity for a business in Colorado. Jim and Ron decided to leave their current positions, Jim was general manager for Holly Hunt’s design showroom and Ron was senior vice president at Smith Barney, and ventured out west. In 1999, they opened a small 1,600 square foot boutique store called HW Home in Boulder, CO. Ten years later, HW Home has grown to four locations throughout Colorado and has become the place to find high-end urban eclectic décor. Known for their style, Ron admits that the HW Home showroom reflects his and Jim’s personal taste, “If you like our tastes, then this is a great place to shop,” he said. The store offers customers classic designs that are timeless but also livable. Richly accessorized showrooms give customers the option of purchasing items such as luxury soaps and bath towels to leather sofas and dog beds. “We run the gamut on products,” Ron said. “We have interesting and unique accessories, and we work hard to not overlap with national retailers, as well as others in our market.” Not only do they try to keep their products unique to the market, but each showroom is slightly

September 2009

western retailer

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

different than the others. Because they are not a chain store, HW Home is able to adapt each store to reflect the style of the neighborhood it is located in. This gives each store its own distinct personality while still maintaining the overall beautiful experience and atmosphere that HW Home strives to offer each customer. “We want you to walk into our store, put your hand on your chest and say it is so beautiful,” Ron said. “We want you to be in awe and be entertained. Customers have to be greeted by an exceptionally warm, friendly and genuine staff. The store must be beautiful and there has to be things in the store that intrigue them, entertain them and capture their curiosity.” Every detail in each showroom has been designed with the customer in mind. Even the restrooms in HW Home reflect the beautiful, high-end atmosphere of the store. With travertine marble floors, walls and counters, stereo speakers in the ceilings, and luxury soaps, candles and towels, the restrooms contain as many design esthetics as the showrooms. “In most stores, bathrooms are a required function, and they aren’t necessarily well kept. I want people to walk into our bathrooms and say, ‘Wow, this is really beautiful,’ because our business is all about design and style. What a great place to show it.” Not only is HW Home a beautiful place to shop, it is also welcoming. Customers immediately feel a sense of family when they enter the store. The employees have a great camaraderie with one another that stems from HW Home being a non-commissioned, salaried company. “We do not want competition among our employees,” Ron said. “We want to build a culture of teamwork and family. We want happy employees that have a good experience at work, because happy, satisfied employees who enjoy what they are doing are going to be really good to our customers and improve our customer’s experience.” HW Home is also welcoming to their customers’ and employees’ four-legged friends. Ron and Jim run what they call a “fur-friendly” business and allow their customers and employees to bring their dogs into the stores. At the bottom of each store’s door, at pet eye-level, it says that they are a “fur-friendly” business and each location has treats and water bowls at the counters for their four-legged customers. “Our customers have animals and live with them in their home, and we sell furniture that is pet and kid-friendly,” Ron said. “We love having them in our store.” All of the employees’ dogs that come into the store also get their photo on the company website. Some have even become famous within the HW Home family. Baron, who is a full-time HW Home dog and spends his time between the warehouse and Boulder store, now sends out the company’s email blasts. “We figured we needed a name to send our emails from, and a lot of people know Baron, so we thought we would have him send the emails out. Now our emails to customers come from the email address baron@hwhome.com,” said Ron. Since HW Home’s customers are such an important part of their success, Jim and Ron are dedicated to giving back to the community. The store often hosts events for different organizations such as the Matthew Sheppard Foundation

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

and Colorado Youth Tennis Foundation. “We participate with a lot of community organizations through cash and product contributions, and events that we host in the store,” Ron said. HW Home is also a large supporter of the Denver Furniture Bank and has created a program to pick up customers old furniture Jim Hering and Ron Werner, owners when a new piece is delivered. HW Home will arrange for the old furniture to be delivered to the furniture bank and the customer then receives a tax letter for the donation. “Last year we provided five 53-foot truckloads of furniture to the local furniture bank, which helps people who have been abused or lost a home due to a fire — the furniture bank makes the decision on who receives the furniture. We know that it is helping people out in need and helping our customers take something out of their house, and we are doing it in one single visit. The customer doesn’t need to coordinate a separate pick up and the furniture is no longer going to a landfill,” said Ron. Through Jim and Ron’s dedication to style, their employees, customers and community, they have created a beautiful and successful business. In the future, they would like to focus their energy on maximizing each store’s potential and growing the business organically. One thing is for sure, Jim and Ron will face the future like everything else in their business by offering customers and employees an enjoyable and beautiful place to shop.

At a Glance Type of Store: Full-line Year Founded: 1999 Number of Employees: 40+ Number of Store Locations: 4 Website: www.hwhome.com Top Manufacturers: Mitchell Gold + Bob Williams, Hickory Chair, Cisco Brothers, Bernhardt, Bluefish Home, Vanguard WHFA Member Since: 2009 western retailer

September 2009

Meet The New Members New Members Who Joined WHFA in February – June 2009 4 Day Consignment Arroyo Grande, CA Founding Year 1998 A & B Comfort Furniture Vista, CA Founding Year 2004 ABM Office Solutions Rancho Cucamonga, CA Founding Year 2008 Affordable Furniture Bakersfield, CA Founding Year 2003 American Unfinished Furniture Spokane, WA Founding Year 1994 American Unfinished Furniture Spokane, WA Founding Year 1994 Beds Today Boise, ID Founding Year 2009 Bring It Home Fitness Equipment Inc. Fresno, CA Founding Year 2007 Carpet Masters Aiea, HI Founding Year 1989 Classic Interiors, Inc. Idaho Falls, ID Founding Year 1999 Creative Interiors & Design Vancouver, WA Founding Year 1998 Cypress Furniture Hayward, CA Founding Year 1996 DA Stores Los Angeles, CA Founding Year 2008

est.1944

Diakon Logistics Manassas, VA Founding Year 1990 Echo Sleep Folsom, CA Founding Year 2009 Euro Contempo Interiors and Design Center Oxnard, CA Founding Year 2000 Family Home Furnishings Roseburg, OR Founding Year 2009 Furniture EXPO Fairfield, CA Founding Year 2005 Furniture Plus, Inc. Mesa, AZ Founding Year 1983 Furniture Wholesale USA Rancho Cordova, CA Founding Year 1977 Home Decor Imports Inc. Vernon, CA Home Furnishings Liquidation Van Nuys, CA Founding Year 2007 Homeland Furniture of Surprise Surprise, AZ Founding Year 2003 Hooker Furniture Corp. Martinsville, VA Founding Year 1924 Keetsa Mattress San Francisco, CA Founding Year 2007

Mattress Express Victorville, CA Founding Year 2007 Mattress Superstore Longview, WA Founding Year 2008 Monsoon Trading Santa Maria, CA Founding Year 2003 Montana Furniture Galleries Bozeman, MT Founding Year 1995 Nico-Nat Manufacturing Commerce, CA Founding Year 1999 Scott Director’s Custom Furniture Co. Beaverton, OR Founding Year 1997 The Lively Merchant Lancaster, OH Urban Mattress Denver, CO Founding Year 2008 Ventura Mattress & Futon Ventura, CA Founding Year 2001 Vivian’s Quality Furniture Escondido, CA Founding Year 1986 Wickman’s Furniture Overstocks Agoura Hills, CA Founding Year 2009 Yosemite Furniture Inc. Madera, CA Founding Year 2007

To join WHFA call (800) 422-3778 or visit www.WHFA.org for more information. September 2009

western retailer

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

MA700_WR_Vertical_Solutions.ai

7/8/09

10:35:23 AM

Safety Corner

Preventing Strains & Sprains

ps ps

Tri l Fal s

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

Safe Lifting Techniques

Sli

est.1944

As a FREE resource for its members, WHFA has produced several safety booklets that are easy to download. You can utilize these easy-to-understand booklets in safety meetings and distribute to employees. For more information please contact your membership representative at (800) 422-3778.

entin

gono

Office Er

t to Preven s Helping e Injurie Workplac mics

ifting, pushing and overreaching are common causes of strains and sprains. Any job that requires you to sit or stand for long periods of time and bend in an awkward position, can cause excess stress and strain on muscles. Most strains and sprains affect the back, arms and shoulders. However, there are some very simple things you can do to prevent or minimize body strains and sprains. Many strains and sprains occur because of poor material handling. Workers lift things that weigh too much or they lift incorrectly. Lift correctly by bending your knees, not your back and carry loads close to your body. Injuries can occur when workers try to pull or lift a heavy or awkward object without help or lift an object while twisting from the waist. When carrying a load, avoid bending or lifting upward unnecessarily and keep as much of the load as you can at waist level. Get help with heavy loads. Don’t try to move or lift an object you can’t handle. Instead of lifting a 75-pound load, break it down into smaller parts. If you can’t break it down, get help from a mechanical device or lift it with another worker. Make sure moving equipment works properly or it will cause you to strain unnecessarily just attempting to get it to work. If the wheels on a cart are not aligned, you could strain your arms, shoulders and back trying to move it. Also change your working positions frequently. Chronic strain due to an unchanging work position can weaken your back, arms and shoulders. Adjust working heights to prevent slumping or excessive reaching. A vicious cycle develops when chronic strain continues; muscles become less able to withstand strenuous activity and grow more prone to injury of all kinds. Stretch during the day to increase your flexibility. Take body relaxation breaks by letting your shoulders and neck muscles go limp; swivel your head or arms or flex your hands and fingers. Take care of your whole body with exercise, proper posture, a sensible diet and adequate rest. If your muscles or ligaments have weakened over time from lack of exercise or age, you are more apt to get a strain or sprain than if you’re are physically fit.

western retailer

September 2009

The World Around Us

Knock Off the Doom and Gloom Headlines!

Ron Martin Sales Resultant Success Dynamics, Inc.

few months ago, I complained on my blog about a photo on the front page of Hawaii’s Pacific Business News showing an empty Honolulu International Airport along with this shocking headline: “It’s Worse than After 911.” The photo was obviously taken when the airport was closed. As I read the article, I found that this quote was from a West Maui boutique hotel operator who had a 69 percent occupancy rate, whereas right after 911 it was 75 percent. How does that warrant the front page? And how hard did they have to work to come up with that misleading photo? Unfortunately, some people read only headlines and then repeat them. Sensational headlines sell newspapers but do not always reflect the truth. Just last week a headline read: “Hawaii Retailers Show Less Confidence in Economy” There’s one thing for sure: headlines like that will not help boost anyone’s confidence, and that’s what we need to do. I would prefer this headline for the same article: “Hawaii Retailers Getting Creative to Overcome the Downturn in Visitor Numbers” But I’m not focused on selling newspapers. My focus is on the survival of my clients in the face of the doom and gloom that is daily thrust upon them. You bring about what you think about, and if you want to bring about prosperity you must displace all of this negativity with some positive thoughts. It is crucial for retailers and other businesses to focus more on the top-line than the bottom-

September 2009

western retailer

line. Cutting costs and lowering margins can lead to failure. A strong selling effort will do just the opposite. The article above stated, “Despite the numbers, store owners said they are using a variety of sales tactics to ride out the downturn.” The “tactics” mentioned were all about merchandise and price. Selling techniques and skills will get more results than “tactics” will. Lowering prices to attract customers will have a more negative impact on your bottom-line than learning how to “sell” will, while preserving your rightful margins. That can be done. I help people do it every day. You can gain confidence by searching for evidence to the contrary of what you are hearing on the news. Look at the sales of your top salespeople and ask yourself, “What if everyone sold the way these people do?” Another confidence-building exercise is to ask your salespeople to share the details of the best sale they have had this month. When these great stories are told, you will see the confidence level surge. The real enemy these days is the media. When owners and managers “buy in” to the media’s negativity, they are defenseless when salespeople offer “the economy” excuse for not selling. When you hear, “People are not spending money,” be armed with evidence to the contrary. Apple sold 13.5 million iPhones in the U.S. alone last year. Who bought them? People lined up from early in the morning until late at night to get the latest model. Apple had to hire guards to control the crowd. The iPhone is a luxury item, and Americans will always buy luxuries. J.

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

MA700_WR_Vertical_Trends.ai

7/8/09

10:37:12 AM

Paul Getty, the richest man in the world at the time said, “I start buying when I meet people who are selling.” People are always there to buy from people who are there to sell. Be sure that your people are selling and your economy will be just fine. The media talks about “the economy” as if it were some sort of living creature affecting anyone and everyone, beyond their control. I continue to maintain that “economy” is a state of mind and that everyone has his or her own economy. The word “economy” can be traced back to the Greek word oikonomos, “One who manages a household.” Note the word “One”. Each person must “manage” his or her own economy. Spending money is as important as saving it when it comes to “managing” it. What people tell themselves becomes a self fulfilling prophecy. Make your message about abundance. The law of attraction is real. You can just as easily attract the spenders as you can the hoarders. When you attract the spenders, you will stand out above your competition. As one successful farmer said during the drought, “We plow deep while others sleep.” Sure, these are challenging times, and sure, some people have lost their jobs or homes. But those are not the people shopping in your store. Customers in your store today are there to buy. All they need is good information from an enthusiastic and positive salesperson. To keep yourself positive, keep positive company. The malls are full of unhappy salespeople looking for someone to commiserate with. Misery loves company. Shun the depressed people by talking positively. There is nothing more depressing than a depressed person. Your customers deserve better than that.

Ron Martin is president of Success Dynamics, Inc, in Honolulu. HI. He is a nationally known “sales resultant” and regular speaker at Western Home Furnishing Association events. He has five published books on selling and sales management. He teaches, coaches and motivates retail salespeople. He speaks on business success and sales issues. Contact him at PO Box 235845, Honolulu, HI 96823. Phone (808) 947-7500; Email itseasy@hawaii.rr.com; Company website is www.SuccessMadeEasy.com.

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

western retailer

September 2009

Property Liability Commercial Auto Commercial Umbrella Employment Practices Liability Workers Compensation

WHFA and Argo Select Specialized insurance services for the furniture store industry As a furniture retailer who appreciates well designed, quality products, consider the advantages of partnering with an insurer who shares those values. Argo Select is a specialist in retail insurance. We offer unique coverage such as our Retail Furniture Advantage endorsement, and safety resources customized for the furniture store industry. Call to learn how Argo Select can help protect your store through an insurance program designed to fit the distinctive needs of your business. Argo Select is pleased to be endorsed by the Western Home Furnishings Association as the preferred provider of insurance and loss control services to its member stores.

For additional information, please contact: Jerry Landers 800 777 3602 n jlanders@argogroupus.com WHFA n 800 422 3778 n mbrship@whfa.org est.1944

www.argoselect.com

Program of the Month

Surviving the Economy through Service

t is no secret that every industry has been impacted in one way or another by these current economic times. The question everyone seems to be asking is the same: How do we lower our overhead, become more proficient, and increase our market share? Unfortunately, many companies are making the mistake of cutting back in the wrong areas, like eliminating advertising and service programs that actually help increase customer satisfaction. The companies that seem to be maintaining and/or growing are actually increasing their budgets in these areas and capturing a larger share of the market. Rather than cutting their service standards, they are looking for more efficient ways to create motivation such as changing employee and management compensation with bonus options for increased sales and improved customer service. One of the keys to survival in these tough times is creating consumer awareness of your products or services and then making the most of every sales opportunity by creating the ideal customer experience and closing a larger portion of sales. The WHFA Mystery Shopper program will provide you with the critical insight necessary to improve your service standards and help you weather these tough economic times.

The WHFA Mystery Shopper Program Will Help You By: • Increased Customer Satisfaction: Business Evaluation Services will consult with you to ensure you are creating the ideal customer experience within your stores. By doing this, your customers are more likely to make a purchase, return for future purchases or refer additional business to you. • Identifying Individuals That Need Training: By utilizing a mystery shopper program you will be able to discover those individuals that need additional training or coaching on product knowledge or sales techniques. This ensures your staff will have all the tools they need to be successful. • Closing More Sales: If your staff is properly trained on closing techniques and executing the ideal customer experience every time a customer enters your store, then you will see higher closing rates. The key is creating accountability for your nonnegotiable standards.

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

Kaprice Crawford WHFA marketing director

The Costs Price per shop is as little as $40. All prices are dependent on the total number of shops ordered and the frequency of visits.

Benefits • Dynamic Real-time Reporting • Instant Results of Shops • Accurate Measurement of Service Standards • Discounted Pricing for WHFA

Call to get started on the Mystery Shopper program today! (800) 422-3778

western retailer

through WHFA’s partner

September 2009

Showroom Style

I’m looking for an easy way to redesign my showroom but don’t want to spend too much money. What are some things that I can do to make an impact on the customer but not my bottom line?

Business today is slow, but that doesn’t mean you should stop reinventing yourself in this challenging marketplace. Change for the sake of change is not only good for business but also for the morale of both staff and management in your company. So how can you redesign your showroom without going broke? Here are a few money saving tips that not only show your clientele that you’re still on the cutting-edge but also provide a morale booster for your staff.

Paint The first small thing that has a big impact on your showroom is paint. Painting often gets put off, and in many showrooms, there never seems to be enough time or manpower to get the job done. With fewer deliveries going out of the warehouse, perhaps now is the time to repaint and get rid of those nail holes and picture hook marks. Use the people and resources that are already working for you to get this job done. Your investment in this project is paint and a few painting tools. Don’t bite off more than you can chew; isolate your project to an area you know you can get done in a specified time. Before you know it, your showroom will take on a new look. New paint will also make your old favorites (best sellers) look new again and will keep you looking like a trendsetter even if the furniture merchandise is the same old stuff.

Move it Around Don’t leave your furniture in the same spot forever. Move it around! Moving your furniture can give it a new look. It’s also very uplifting to walk around and see things happening. Staff members may even think it’s something new just because it’s not in the same old spot. How to do this is easy — I call it the flip flop. Choose two settings and just switch them. I know it sounds simple but you will be surprised at the reaction. Do this once a day before the store opens. By the end of the week you will see big changes. Contact WHFA at www.WHFA.org or (800) 422-3778.

Accessorize As most of you know, your brown microfiber sofa and the one down the street are practically the same. The only thing that makes them different is what you put around them. That’s why the right accessories are very important to any showroom display. So how do you maximize the things you have without having to buy more? Make sure they’re placed well! I can always tell where the accessories are opened in the showroom because it’s the spot with the highest concentration of accessories. The furthest spot away from that point almost always has the least. Also, we tend to put the same lamps, wall décor and accessories into a new setting. We take a sofa and loveseat off the floor and just slide a new one in without changing anything around it. When something leaves the floor setting, take everything out of it and start fresh. Speaking of fresh, some retailers let their accessories sit too long without marking them down when they don’t sell or they’re out of style. Get rid of them! It gives you an open to buy more often and as most retailers agree, smaller single item purchases like accessories have become dominate.

Lighting Another way to make your showroom the star in your market is the lighting. Many times I have walked into a store and the lights are not redirected when the furniture is moved. When this is not done, furniture sits in the dark while the carpeting is lit. Also be sure that the light is not blinding your customers and that it’s positioned about six feet from its target. With a little imagination, keeping your showroom fresh is easier than you think and can make a significant difference in the appearance in your store. In these difficult economic times, do something each day to make your showroom fresh and exciting for both your staff and the customers they serve.

For more design advice and tips, contact Carmine Caruso at (208) 830-1300 or carmine@carminecaruso.biz.

western retailer

September 2009

y Monthl ecial ts Sp c u d o r P

WHFA is on Your Side Helping You Lower Operational Costs WHFA is here to help you lower your backroom and delivery operations costs! For one month only, purchase any quantity of the following products and receive the truckload discounted 8+ case price.

• • • •

Furniture Bags Mattress Bags Stretch & Banding Film (5”, 12” & 18”) Packing Tape (Heavy Duty and Super Heavy Duty)

Furniture bags and stretch film keep your merchandise protected from dust, dirt, moisture and abrasion damage during delivery.

Truckload Savings from the WHFA Products Program.

est.1944

Western Home Furnishings Association

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

advertisers

index

Please support the advertisers that support your magazine. Advertiser

Page

Phone/Website

Argo Select.....................................................34..................... (800) 422-3778 Aspenhome.....................................................4....................aspenhome.net B&B Banker & Brisebois Advertising............15..................... (800) 456-0210 Emerald Home Furnishings............................2...................... (800) 685-6646 Furniture Wizard.............................................36..................... (619) 869-7200 High Point Market..................................... 31 & 33................. (336) 869-1000 HomeFurnishings.com...................................24..................... (800) 888-9591 Impact Plus......................................................7...................... (800) 719-6840 Micro D, Inc.....................................................9...................... (800) 964-3876 PROFITsystems, Inc.................................. 16 & 27................. (866) 453-5010 Pulaski Furniture.............................................39...........pulaskifurniture.com Retailer Resource Center (RRC)....................21..................... (800) 422-3778 STORIS Management Systems.....................14.................... (888) 4-STORIS Therapedic International....................... Back Cover.............. (800) 314-4433 WHFA Membership.......................................20..................... (800) 422-3778 WHFA Warehouse Products.........................38..................... (800) 422-3778

September 2009

western retailer

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

Western Retailer:

Read by furniture retailers in the West

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

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

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

FURNITURE a Home Meridian company

See us at Las Vegas Market â&#x20AC;&#x201D; World Market Center, B-822

Therapedic Idaho Twin Falls, Id 800 521 3985 ext. 105 contact: Chris Sanders

Therapedic Northwest Auburn, WA (800) 321 3750 contact: Laurie Simpson

Therapedic SF Burlingham, CA (650) 344 1980 contact: Jeff Karp

Therapedic Colorado denver, CO (303) 375 7922 contact: Rodney Goodrum