Western Retailer December 2010

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 rs a e y 0 2 g n i t a br e el

www.WHFA.org

Masins Furniture, Seattle, Wash.

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

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CHANGE SERVICE REQUESTED

December 2010

Thanks for a Great 2010!

Happy Holidays

3025 Pioneer Way East | Tacoma WA 98443 PH: 253.922.1400 | FX: 253.922.3747

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

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EDITORIAL STAFF Managing Editor: Melissa Dressler................................ mdressler@whfa.org Advertising Manager: Cindi Williams..............................cwilliams@whfa.org

table of contents featured articles

Graphic designer: Paul Fortunato......................................... paulfdesign.com 2010 WHFA OFFICERS AND EXECUTIVE COMMITTEE

Showroom Style Details, Details, Details.................. 8

WHFA PRESIDENT Claudia LeClair - Fiesta Home Furnishings, Scottsdale, AZ...............(480) 951-3239 PRESIDENT ELECT Angel Lopez - Dearden’s, Los Angeles, CA........................................(213) 362-9600

OPERATIONAL EXCELLENCE There is Hope in this Economy....... 13

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

SAFETY SPOT Start Safety Training on Day One... 20

SECRETARY Lael Thompson - Broyhill Home Collections, Aurora, CO...................(303) 360-9653 EXECUTIVE COMMITTEE CHAIR Marty Cramer - Cramer’s Home Furnishings, Ellensburg, WA...........(509) 933-2172 PAST PRESIDENTS

OPERATIONAL EXCELLENCE Getting a Better Handle on Cash... 23

George Nader - Nader’s La Popular, Gardena, CA............................(310) 327-8585 Cherie Rose - The Rose Collection, Los Gatos, CA...........................(408) 395-7773 EXECUTIVE director Sharron Bradley - WHFA, Roseville, CA.............................................(916) 784-7677 AT LARGE EXECUTIVE COMMITTEE MEMBers Gary Absalonson - Walker’s Furniture Inc., Spokane, WA.................(509) 533-5500 Howard Haimsohn - Lawrance Contemporary, San Diego, CA.......... (619) 291-1911 Marvin Kerby - Kerby’s Furniture, Mesa, AZ.......................................(480) 834-3888

in every issue

Karen Kohlman - West Harvard Furniture, Roseburg. OR.................(541) 673-4221 WHFA/NHFA Liaison

Member Profile Masins Furniture, Seattle, Wash.. . . . . . . 16

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

Program of the Month: Increase Your Exposure with Fleet Graphic Solutions. . . . . . . . . . . . . . . . . . 21

Carol Bell - Contents, Tucson, AZ......................................................(520) 881-6900 Buzz Burnett - Treasures Furniture, San Diego, CA...........................(858) 586-1900 Gene DeMeerleer - Furniture West, LaGrande, OR...........................(541) 963-5440 Chris Ehgoetz - Michael Alan, Lake Havasu City, AZ........................(928) 855-6067

Western Retailer Celebrates 20 Years: Looking Back on the Years . . . . . . . . . . . . 29

Mark Flegel - Flegel’s Home Furniture, Menlo Park, CA....................(650) 326-9661 Eric Foucrier - Linder’s Furniture Mart, Garden Grove, CA................(714) 210-4848 Travis Garrish - Forma Furniture, Fort Collins, CO.............................(970) 204-9700

Industry Beat. . . . . . . . . . . . . . . . . . . . . . . . . 30

Giff Gates - Gates Furniture, Grants Pass, OR..................................(541) 476-4627 John Grootegoed - Elite Leather, Chino, CA......................................(800) 826-9971 Eric Harms - Black’s Home Furnishings, Yreka, CA...........................(530) 842-3876 Jerome James - Hafer’s Home Furnishings, Manteca, CA.................(209) 823-2122 Julian Jeppe - Reeds Furniture, Agoura Hills, CA..............................(818) 597-7800 Chuck Kill - Bedmart, Tucson, AZ.......................................................(520) 887-7039

contact

Tim Koerner - Koerner Furniture, Coeur D’Alene, ID..........................(208) 666-1525 Don Lemieux - Naturwood, Rancho Cordova, CA..............................(916) 638-2424 Jeff Lindsley - Lindsley’s Home Furnishings, Grangeville, ID.............(208) 983-1040

Phone:

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

est.1944

Mike Shuel - Meredith Furniture, Yakima, WA....................................(509) 452-6221 Tom Slater - Slater’s Home Furnishings, Modesto, CA......................(209) 522-9097 WESTERN HOME FURNISHINGS ASSOCIATION STAFF Executive Director: Sharron Bradley................................................(916) 960-0345 Asst. Exec./Marketing Director: Kaprice Crawford..........................(916) 960-0346 Business Manager: Janice Carlson..................................................(916) 960-0347 Events Manager: Cindi Williams.......................................................(916) 960-0277

(800) 422-3778 (12 western states) (916) 784-7677 Online: www.WHFA.org Fax: (916) 784-7697 Mail: 500 Giuseppe Court, Suite 6 Roseville, CA 95678 Facebook: www.facebook.com/WesternRetailer Twitter: www.twitter.com/WesternRetailer

Operations/Warehouse Manager: Jef Spencer...............................(916) 960-0386

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

Communications Manager: Kristy DeVaney....................................(916) 960-0349 Editor/Communications Coordinator: 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

DECEMBER 2010

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President’s Message It must be an age thing, but this year went by faster than last year, and last year went by faster than the year before that. It’s been an interesting year for me, both personally and professionally. One of the highlights has been serving as your WHFA President. It’s given me the opportunity to meet even more great people in this industry and become closer to others I already knew. I have to admit, I’ve even enjoyed writing this letter every month.

An association is a business that’s run much the same as any other business. Our floundering economy has been tough on WHFA, just as it has been in our own businesses.

WHFA has experienced loss of revenue from stores downsizing or going out of business, thereby necessitating less staff who have to work harder in order to accomplish their tasks. Sound familiar? But like many of us, WHFA has come out stronger because of this, and we’ve accomplished much this past year. In my mind, the most important accomplishment has been that our organization has had the opportunity to really open lines of communication with our parent association, NHFA. We’ve learned to work closely together, first out of necessity, and now, I’d like to think, out of the pleasure and satisfaction of getting to know others who have the same common goals for our industry.

Together we will accomplish far more, and we’ll all benefit from this partnership.

I’d like to thank the WHFA staff for all their help this past year. It’s amazing how well they work together, and how they are always ready and willing at the drop of a hat to help when needed. We are truly fortunate as an organization to have them working for us.

When you see any of them at market or conference, please take the time to thank them for their hard work. They’re working on your behalf.

Angel Lopez will be your next President, so our association will be in very good hands.

But I’ve had so much fun this past year I thought of asking Angel if he would mind if I stay on as President for just one more year. Angel, what do you say? Actually, I think he’s anxious to take the lead, unlike Marty Cramer who couldn’t give me the gavel fast enough!

All kidding aside, Marty has been a great sounding board for me this past year and I appreciate all the time and energy he’s given me throughout the year.

We have a dedicated group of officers, board members and staff who are working diligently to keep our association and industry strong. Please do your part by supporting our programs and services, attending conference, and getting involved. We’re always looking for new board members, so if you think you may be interested, please get in touch with me. In fact, feel free to contact me at any time, with questions, comments or concerns.

Thank you so much for allowing me to serve as your President this past year. The pleasure has been all mine.

Claudia LeClair 2010 WHFA president

Fiesta Furnishings / Brix Home Scottsdale, AZ (480) 951-3239 fiestaclaudia@aol.com

ON THE COVER Interior shot of this month’s Member Profile Masins Furniture. For the complete story, see page 16.

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

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Editor’s Message The Giants have won the World Series! I know this is old news to all of you but I have to admit, I am still having a hard time believing it. I have been a lifelong Giants fan—I remember ’89, ’02, and all the years of “torture” in between. What amazes me is that this is a team that at the beginning of the season didn’t even make a blip on the radar. Every sports commentator had no faith in them. They were a bunch of “nobodies and misfits”—there was not one stand-out star or big name on the team. By the end of the season, this team of “nobodies and misfits” came together to win an award that the establishment had not seen in 56 years. They did it through teamwork, great management and leadership.

You can create a winning team in your store with the same combination of teamwork, great management and leadership. When hiring employees, look for people who are friendly, willing to learn and can work in a team. This month’s member profile, David Masin, said that one quality that they look for when hiring is friendliness. Other skills can be learned, but the first thing a customer will encounter in your store will be that person’s personality. Also, encourage everyone to work together, which can sometimes be difficult in a commissioned sales environment. Create goals for your sales team to hit together and watch how they work as a team to meet these goals.

The other part of the equation to the Giant’s success was the great management and leadership of Bruce Bochy and the team’s other managers. Only two players on the Giants team started game one of the World Series playing the same positions they did on Opening Day of the season. Bochy knew his players’ strengths and he continually adjusted the lineup to make them the strongest team possible. Look at your team: do you know everyone’s strengths? Could you possibly have a great salesperson on your warehouse team? If so, try them out in a new position for a few days. It might be just what you need to mix things up in your business and create new energy.

Another key to Bochy’s success in managing his team is that he remained positive and believed in them throughout the season. Your team can be heavily influenced by your mood.

Times have been tough over the last few years, and if you have been wearing your feelings on your sleeve, it is quite possible that your team has picked up on your stress and anxiety. If you can maintain a positive attitude through the difficult times, your employees are more likely to have the same attitude and be motivated to work harder and sell more.

I hope that all of you enjoy this issue and can take away some ideas to implement in your daily business. Take a look at your team and see if you can make any small tweaks and changes to your line-up, attitude and management. Maybe it is adding more training sessions or finding new ways to increase employee motivation. Learn from the Giants success and see how you can implement teamwork, great management and leadership into your own store—it could have you winning new customers. And for all of you who follow me on Twitter and Facebook, this will be the last time you have to hear me talk about the Giants—until next season of course!

Melissa Dressler Western Retailer managing editor

(916) 960-0385 MDressler@whfa.org

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Color Psychology Member Profile— Rudolphs Furniture

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

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

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

THE

HEART OF THE INDUSTRY ...

DEEP IN THE HEART OF TEXAS ...

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

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

Photos Courtesy of the San Antonio Convention & Visitors Bureau

Showroom Style

David Price Toms-Price Home Furnishings CEO

Details, Details, Details...

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Stan Bossler Bossler Design Services Principal

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ow more than ever, building professional business relationships is critical. Let’s face it, when was the last time you had any service performed exactly as planned, let alone exceed your expectations? Learning whom to trust, how to communicate with that individual or organization and relying on professionals who do as promised, allows you to focus your energy on the bigger picture, like “building your business”. Building professional relationships takes time but once that relationship has been developed, it is very rewarding.

Since 1996, I have had the pleasure of developing such a relationship with Toms–Price Home Furnishings. For those of you who are not familiar with Toms–Price, they were founded in 1908, by George Price and currently has four retail showrooms in the Chicago area. Toms– Price distributes such brands as Baker, Century, Henkel-Harriss, Nichols and Stone and Stickley Furniture. David Price, CEO and Scott Price, President, (grandson and great grandson of George Price) share a real passion for the home furnishings industry. On the other hand, I have a real passion for design. Together we have designed four showrooms, and I hope that David and Scott would agree, that each project has been a successful, enjoyable experience—and

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after four showrooms, each project has become a little easier.

During our recent collaboration, on the Toms–Price South Barrington, Ill. showroom, Scott and I visited at length regarding details in showroom presentation. Although they may seem basic, developing high standards for showroom presentation and implementing those standards, many on a daily basis, is critical to the success of today’s home furnishings businesses. Perhaps due to HGTV, the information age, and a greater number of nationwide high-end home furnishings retailers, today’s modern consumer is more sophisticated than ever. Today’s consumer expects to be “wowed”. They demand a seamless, flawless shopping experience or they will simply take their business elsewhere. Part of providing a “wow” shopping experience is paying attention to the details. Throughout this article you will read from the retailer’s perspective (Toms–Price Home Furnishings) and the showroom designer’s perspective (Bossler Design Services Inc.) on showroom presentation.

Your Showroom’s Exterior As Scott Price so clearly states, “Remember, your showroom’s image begins in the parking lot.”

Ask yourself, does my showroom’s exterior reflect Contact WHFA at www.WHFA.org or (800) 422-3778.

my merchandising point-of-view? This includes architectural style, finishes and signage. Several years ago, Britt Beemer, chairman of A.R.G. Group, provided our industry with a nationwide 200,000 person interview. Conducted over a three year period, this study seems as valid today, as it did in the early 2000s. This study concluded that one out of every 20 cars that drive by your showroom during a one month period will stop and visit your showroom. Even more interesting was the statistic that indicated 40 percent of your marketing image comes from your showroom’s exterior. So ask yourself, does my showroom’s exterior reflect my merchandising “point-of-view”?

Again, it’s all about the details. Try placing yourself in your client’s position. Is your showroom’s exterior polished? Is the landscaping well groomed? Are all of the exterior lights burning, and of the same lamp type and wattage?

A simple rule of thumb: If you have warm finishes on your exterior, say red brick, try “low sodium” lamps (low sodium lamps provide a warm—pink color, which will enhance your warm finishes). On the other hand, if your exterior finishes are cool in pallet, grays and blues, try mercury vapor lamps (mercury vapor lamps provide a blue moon light color, which will enhance your cooler exterior finishes). Most importantly, are the lamps of the same type?

Inconsistency sends the wrong message; be consistent.

Is your exterior signage visible from major access roads? Does it reflect your “merchandising point-of-view”? If lit, are all of the lights burning? Is your parking lot well paved and striped. “A fresh coat of black top will give your showroom a new look,” Scott Price reiterates. If you have exterior trash containers, are they fresh and changed on a schedule? Treat your clients as you would guests in your home—with lots of pride.

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

Your Showroom’s Interior Before we go into detail, both Scott and I agree the most critical detail in retail showroom interiors is housekeeping or cleanliness.

For the gold standard, try visiting any Neiman Marcus store, everything, and I mean everything sparkles. Windows, glass showcases, fixtures, flooring are spotless. Washrooms are attended to hourly. Neiman’s really gets it. Other details to gain from a Neiman Marcus visit: note the consistency of the lighting; no burn outs or mismatched lamps here. Note the visual merchandising; all items selected to feature are so artfully placed and appear special. Note the organization. Everything has a place. And in most cases, everything is in order. Take notes, and when developing your daily schedules, assign appropriate individuals to appropriate tasks. You will have to be the teacher, but bring them along.

Be graceful, yet strong. Give compliments often, keep your criticism minimal. Compliments will ensure associate’s pride in their home away from home. Be consistent, be relentless.

Again, as in your showroom’s exterior, does the architectural interior reflect your merchandising point-of-view? This should be accomplished through interior architectural details and finishes. Consider the region of your showroom. In Toms–Price most recent project in South Barrington, Ill., crown moldings, check out desks and pendant lights were developed with an Arts & Crafts style. If you want the style to be more transitional, try painting those items. They will still have an Architectural style but paint allows them to become more transitional.

As you will note in your Neiman Marcus visit, it’s all about order. In the home furnishings showroom, specifically the interior design studio, make certain all textile and wood samples are neat and organized. Try organizing the samples by vendor and or color—beginning with light western retailer

“Again, it’s all about the details. Try placing yourself in your client’s position. Is your showroom’s exterior polished? Is the landscaping well groomed?

Are all of the exterior lights burning, and of the same lamp type and wattage?”

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colors on the left and darker colors to the right.

Make certain all of your upholstery pillows are fluffed and chopped, and that all of the lighting in China cabinets is lit, and again, lit with like bulbs. If your sales associates or designers have desks, make certain that the desks are neat, clean and well organized. Eliminate personal items; set the example and be the leader. Insist that associates take 10 to 15 minutes out of each day to organize their desks; perhaps before leaving for the day. The same holds true for your client service desk and client will call area. It’s all about the details.

Your Visual Merchandising Ask yourself, how often are my visual merchandising statements updated? Remember, one out of every 20 cars that drive by your showroom will visit your showroom during a one month period. All visual merchandising statements should be telling the identical story.

That story may be a vendor story, a seasonal story, a value story or a fashion story. The golden rule in retail is “confuse and you lose”. Keep your visual merchandising statements consistent. Update those statements often. It may be as simple as relocating certain upholstery and case piece items with new accessories. Upholstery ages quicker than case pieces. All floor samples should leave the store within a two year period. Your main entrance display should set the “wow” factor tone for the entire showroom.

Toms–Price is finding large scaled accessories sell quicker than smaller knickknacks. Are your accessories “artfully“ placed on cocktail tables?

Consider an uneven number of accessories (three or five). Make certain that the accessories are placed in a tight, still life composition. It’s OK, even preferred, if the accessories overlap or touch.

Make certain the accessories contrast in finish with the table top (i.e. texture or leather on glass table tops, glass accessories on wood). The idea is to sell both the table and accessories. Also, make certain that the accessories are varying heights. In room settings, make sure certain lamp shades are alike in finish and that all shades align with the table tops.

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Ask yourself, is our music fresh? Is it upbeat, yet controlled at a reasonable volume? Does it reflect our merchandising point-of-view? Do we have fresh flowers at the reception desk? Don’t forget, your clients should feel as though they are guests in your home.

I always stress the importance of good visual merchandising practices—remember that the American consumer is a sophisticated shopper.

That consumer can tell the difference between a professional looking showroom and one which is less than pulled together. Today’s consumer desires an emotional shopping experience.

Employing the services of a professional visual merchandising designer (one who has a passion for their work) either on staff or on a contract basis will ensure a “wow” shopping experience.

Your Emerging Showroom Design Trends Developing an “expressive” showroom interior is one of the latest trends in showroom design.

Webster’s dictionary defines expressive as full of emotion, a sense of origin, a uniqueness. This dovetails perfectly with designing a showroom which reflects your unique merchandising point-of-view. An expressive design also allows the buildings architectural elements to express themselves. (i.e., consider an open painted metal truss ceiling versus a lay in acoustical tile ceiling). Perhaps the steel columns are exposed and painted, rather than “furred out”? Consider staining or painting the concrete slab versus carpet. It’s cleaner and provides a fresher look.

Introducing natural light is the latest trend in showroom design. Natural light may be introduced through a greater number of exterior windows and sky lights. Properly day lighting your showroom can improve your electricity bill by 30 to 40 percent. Scott Price has replaced all ceiling spot lights (Typ. Par 30 floods and spots) with new C.F.L. lamps. The C.F.L. lamps are much more energy efficient and allows Toms–Price to visit with client’s about being a “green” retailer. Retail studies have shown that natural light can increase sales by as much as 40 percent—Wal-Mart has introduced skylights in all of their newer stores. Part of “day lighting” your showroom is specifying the proper lighting—I suggest working with a professional.

Today’s newer homes have more natural light than older homes. Providing natural light in our home furnishings showrooms gives clients a better idea of what our assortments will look like in their home. It also provides accurate color rendition on textiles, wood and floor finishes.

When designing your new showroom, work with a professional. I suggest centering all traffic aisles on exterior windows since people are drawn Contact WHFA at www.WHFA.org or (800) 422-3778.

to light. Centering traffic aisles on exterior windows provides your clients with a comfortable orientation point.

Adding the appropriate electronics also allows clients to visualize your products in their homes. In motion seating, try lining the perimeter with home entertainment units or with flat screens, and have those televisions working. At Toms–Price, Scott prefers to show a continuous loop video which reflects the Toms– Price merchandising point-of-view.

At the service desks and associate desks, consider replacing tube unit computers with flat screens. If you don’t sell electronics, try partnering with a local electronic store who shares your same customer base.

with furniture, each store offers an interior design studio and a fine rug gallery. Luxury mattress departments are in Lincolnshire and Wheaton.

Toms-Price’s Owner, Scott Price, can be reached at (630) 924-2070 or sprice@tomsprice.com.

It’s All About Discipline and a Passion for Our Business I will never forget my first visit to Toms–Price. It was 8:00 a.m. on a late winter morning in 1996 and upon arriving, the pride shown by the Toms–Price staff was infectious.

Associates were on ladders replacing burnt out light bulbs. Walls where art had once hung were being spackled and touched up with paint. A professional, well-dressed designer was working with a client in the Design Studio. The client’s blue prints were spread out on a table and hot coffee and a Danish were being served. No one appeared rushed or frantic yet they had a spring in their step—just professional and pleased to be at work.

Everyone took the time to shake my hand and say hello. We all have a lot to learn from the 102 years of success enjoyed by Toms–Price. It’s all about the discipline it takes to maintain today’s modern home furnishings retailer. It’s all about the passion for our business and of course, it’s all about the details.

Stan Bossler is principle of Bossler Design Services Inc. which was founded in 1994. Bossler Design Services is a fullservice architectural showroom planner.

He can be reached at (214) 521-2921 or bossler@prodigy.net.

Toms–Price was founded in 1908 and has been providing Chicago area homes with the finest furniture available. Along

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

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© 2010 Leggett & Platt Consumer Products Group, a division of Leggett & Platt, Incorporated | 9834_09-10

Operational Excellence

WAKE UP!

THERE IS HOPE EVEN IN THIS ECONOMY

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funny thing happened on the way to the office one day… I bought a furniture store.

After 25 years running furniture stores and nearly five years of traveling and teaching retailers how to run their businesses more effectively, the business consultant put his money where his mouth is and bought a struggling furniture store.

How is it going? In 2010 sales are up 2.3 times over 2009 sales. Our margins are up 34 percent and our inventory is down 25 percent.

Now that I have your attention—read on.

While there were numerous changes made in the operation, I will focus on a high-level overview of inventory management in this article.

Inventory management is simply the ability of a retailer to provide goods that sell and sell at substantial margins. That’s it—sales and margins.

Retail is simply offering goods that the public wants at margins the retailer wants.

Let’s face it, most retailers focus on traffic and marketing and as a sideline, they fill that hole on the floor with something. While that’s OK, you probably will NOT see much of an increase in sales even if you double your store traffic if your inventory is DEAD… nasty, old, ugly stuff. No one will buy it if they don’t want it!

Imagine John the Retailer. John has dead inventory all over the store. John’s GMROI (Gross Margin Return On Investment) is horrible. Looking at John’s sales numbers, 70 percent of his sales came from 35 percent of his inventory. Now imagine this scenario played out over a period of several months.

What does that say about the remaining

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

inventory? John’s remaining inventory is screaming, “Get rid of me!”

What is dead inventory? Dead inventory is odds and ends, mismatched groups, damaged goods, discontinued merchandise and low GMROI items or slow sellers. Do the math in your store. I would be willing to bet you right now that your dead inventory is 20 percent or more. I have never been surprised when retailers I worked with have had 60 percent or more in DEAD inventory!

Many retailers are OK at identifying odds and ends, damaged and discontinued goods because they can “SEE” it. However, many store owners are absolutely dreadful at ridding themselves of low GMROI items or slow sellers. Why? They are not as easy to “SEE” and most do not know how to identify them. It is easy to see the odd bed rails, loveseats, ottomans or china tops without china bases, but identifying slow sellers and measuring GMROI is time consuming at best.

Almost without exception, furniture retailers are less than stellar at managing their inventory.

This lack of effectiveness costs untold thousands.

Mismanagement manifests itself in several ways.

First, poor cash flow. Have you ever made a P&L profit and had no money in the bank?

What happened to the cash? More than likely, you bought more merchandise than you sold and the difference had to come from somewhere.

Secondly, mismanagement of inventory can kill cash flow because too many retailers rely on terms. Take my advice, PAY CASH. Throughout the years I was a retail consultant, I witnessed western retailer

Hal McClamma Ivy Johnson Furniture and Mattress Owner

DECEMBER 2010

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“Almost without exception, furniture retailers are less than stellar at managing their inventory.

This lack of effectiveness costs untold thousands.”

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many retailers struggle with cash. Many times there were invoices due that were forgotten. If you cannot pay cash now, don’t buy it. Murphy’s Law says your sales will dip when the bill is due!

Even if the vendor touts a super-duper special with 90 or 180 day terms, resist it! And for what it’s worth, most Open To Buy software programs FAIL when your business relies substantially on terms. These programs rarely account for due dates properly!

Thirdly, mismanagement of inventory will ultimately have a negative impact on margins, sales and even your average sale/ticket. If you do not effectively and efficiently manage your inventory, you will be flying by the seat of your pants when making buying decisions. You will never be able to effectively identify and augment your best sellers. Additionally, poor inventory management means you will be unable to validate the sweet spots in your merchandise plan and act accordingly. And your sales, margins and yes, even your average sale/ticket will suffer. Notice I said validate… so many retailers run on intuition.

While intuition gets you to the dance, being able to validate and prove everything in your business is priceless. Successful retailers learn how to run their businesses on fact, not fiction.

Finally, through inventory mismanagement you will wake up one day and find yourself a hoarder of DEAD inventory. Get the DEAD stuff out and fast. You should be swapping your unproductive inventory dollars for productive inventory dollars at every chance you get. Use these dollars to buy merchandise in your better categories. Augment or add to your best sellers.

I hear many retailers cry, “Won’t my margins suffer if I have an aggressive dead item jettison policy?” I answer immediately and emphatically, “No!” Retailers should immediately embrace a three layer pricing concept.

Layer one is simple yet so few do it: get away from formulas for pricing. Do not use margin formulas or margin wheels for arriving at retail pricing for your product. Formulas are for weak merchandisers/retailers. Great retailers are great merchants. Be a merchant. Price an item based on value. What can you get for it in your marketplace? And by all means never let your vendor’s price goods for you! (i.e. bedding).

DECEMBER 2010

western retailer

Should a vendor say something like, “This is a great $799 retail sofa at a cost of $425”, slap them! Your retail price is really none of their business. In fact, think about it… vendors would love for you to sell everything at COST. Get substantial margins on uncompetitive items. Find goods that have clean distribution. Resist the temptation to have more than 12 or so vendors!

You will NEVER get vendor protection if you piddle or give 50 vendors a trickle of volume each year. Demand protection from these core vendors—or DROP them!

The second layer: hit your competitors in the nose and hit hard. This economy dictates that retail is a war. So many retailers have an (NPO) Non-Profit Organization mentality. If you have competitive issues, get the sale. Beat their price and do it every time. If your GMROI suffers, drop the item or drop the vendor!

Layer three: jettison dead inventory quickly.

Each item in inventory is like a CD (Certificate of Deposit) at a bank. Each and every item has a specific and measurable rate of return. If you have an abysmal return, CASH IT IN and buy something good!

When you garner solid margins on noncompetitive goods, you will have plenty of dollars available for competitive issues and dead inventory elimination. Over time your margins will level out nicely and bring a smile to your face and P&L (Profit and Loss Statement).

Now I want you to shift gears and imagine for a moment that your retail store P&L as a three-legged stool. Leg number one is sales. Leg number two is expenses. Leg three is margin.

Your margins and sales are interrelated.

Look at this scenario: Many retailers say in this economy they cannot control sales volume directly. Well, that’s heifer dust! But let’s assume you can’t control your sales.

Most retailers say in this economy they’ve cut expenses to the bone. That’s heifer dust too. But let’s assume you have cut expenses to the bone.

The only other “LEG” remaining in our stool that is directly tied to P&L profit is your margin.

And if you are not profitable now and you cannot sell anymore, you’d better raise your margins—it is your only option besides going out of business.

The term “Raise Your Margins” strikes fear in Contact WHFA at www.WHFA.org or (800) 422-3778.

the hearts of many a retailer. Questions arise such as, “Won’t I be uncompetitive?”, “Won’t I lose sales?”. The short answer is NO… Just Do It. Consider this little known law of business; the Law of Amplification. The Law of Amplification states that small, positive changes made in various areas of your business will create huge differences in the end result—profits.

Here is an easy-to-follow example of the law of amplification. Your store sales are $100,000 a month. Your expenses are $40,000. Let’s assume your margins on merchandise are 45 percent.

You have a slight net P&L profit of $5,000 or 5 percent.

The Law of Amplification states that small improvements in each leg of the three-legged stool will yield big dividends.

Let’s start by raising margins. Raise your margins from 45 percent to 48 percent. That’s a 6.7 percent increase in margins. Margins are simply… the dollars you have available to pay bills with!

Now let’s assume we raise sales a bit. Let us focus on each customer, get GOOD merchandise in the store and raise our sales to $105,000. That is just a 5 percent increase in sales.

Next we will further assume for a moment that your expense initiatives allowed you to cut 5

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

percent in P&L expenses. So now your expenses are down $2,000 to $38,000.

How do these small changes affect the end result or our profits? Sales are now $105,000, margins are 48 percent and expenses are $38,000. Your net P&L profit is up 148 percent from $5,000 to $12,400.

Get this: EVEN IF SALES ARE DOWN 5 percent, raising your margins and lowering your expenses as in the example above will provide a net P&L profit increase of 52 percent.

Now do the math for your store. You see, the numbers will come out the same regardless of scale or volume levels in your store. The store I bought had margins of 41 percent. It is not unusual for us to finish with overall margins of 55 percent plus (without delivery and warranty).

That’s a 34 percent increase in Gross Profit assuming sales stay the same. Yet in our store, sales are more than double 2009 sales.

Your immediate challenge is to get serious about managing your inventory. If you do this well, your sales WILL increase.

Hal McClamma is a 30 year veteran of the retail home furnishings industry. With a no nonsense refreshing approach, Hal ran many successful operations and consulted furniture retailers nationwide. Hal may be reached for comments or questions at (334) 494-4631 or hal@ivyjohnsonfurniture.com.

western retailer

DECEMBER 2010

15

Member Profile

Masins Furniture Seattle, Wash.

W

Melissa Dressler Western Retailer managing editor

16

ith the philosophy of providing customers with exceptional merchandise and superior service, Masins in Seattle, Wash., has been furnishing the homes and meeting the interior design needs of their customers for 83 years. In 1927, Russian immigrant, Eman Masin, began selling items he would find at the rail yards that had fallen off trains. Eman would then fix the items, such as chairs, and resell them. “Over time, he decided he liked working on furniture, so he thought why repair furniture when I can buy it new and resell it that way,” said Masins’ Vice President and fourth generation family member, David Masin.

Over the years, the business evolved and new generations of the Masin family began to enter into it. Seeing a niche for a high-end store in the Seattle area, the store began to exclusively acquire many high-end lines which has allowed the business to offer customers unique products and experiences.

Today, three generations of the Masin family still work in the business, Ben, Bob and David.

Masins has three stores in the greater Seattle area; one location in downtown Seattle and two in Bellevue. The Seattle location is in a fourstory, historic building, which is, “a little more jammed with furniture since we couldn’t really change the layout of a historical building,” said David. “Our main Bellevue location is more laid

DECEMBER 2010

western retailer

out with open spaces and is set up as more of a lifestyle store. We mix manufacturers throughout and show customers how they can use various manufacturers to create a look that is unique.

Our third location is a very small, boutique store which sells mostly gift items and smaller pieces.”

Each location strives to offer customers the best customer service experience possible. “Our goal, and I reiterate this to our staff, is that while we cannot control the economy and many factors around us, we can always control our customer service level,” David said. “One thing that we do, that other people promote but don’t really back up, is that we have actual accredited interior designers on staff that are just as good as an independent designer, but our clients don’t have to pay extra for their services—they are included.

That is a huge benefit to the consumer.”

Since in-home design is such an important aspect to their business, Masins has created a unique work schedule for each of their designers.

“Each designer doubles as a salesperson and vice versa. We require them to be in the store on the sales floor four days a week, and then on the fifth day, which is usually sometime in between the four days, is a client day. That is the designer’s day to go to clients’ homes or the design center— it is their day to benefit the clients and help meet their needs.”

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

Every Saturday morning, Masins holds a mandatory training session for all designers.

“Every designer is required to attend our Saturday morning sales meeting,” said David.

“Usually a representative from one of the major manufacturers will come in and show you fabric, new furniture frames or explain how their lines work. Every Saturday we learn new things about our vendors—it is continuing education for everyone.”

When the Masins staff isn’t focused on training or helping customers, they turn their focus to the needs of the local community. Every year the business hosts an event with DIFFA (Design Industries Foundation Fighting AIDS) called the Glam Party. “Our designers create boxes that can be any shape, form or size, and they are auctioned off and all the proceeds benefit DIFFA. We usually have about 500 people in our Seattle store for this event,” David said.

Along with hosting charity events in their stores, Masins also hosts functions for their customers to attend. Recently, the smallest of the Masins locations, which is in a very highend shopping development called The Bravern, participated in Fashion Night Out. “Fashion Night Out is a big event they do in New York City, and everyone in The Bravern development did a simulcast with New York’s Fashion Night Contact WHFA at www.WHFA.org or (800) 422-3778.

At a Glance Type of Store: Full-line Founding Year: 1927 Employees: 50 Number of Store Locations: 3 Top Five Suppliers: Stickley, Baker, Hancock & Moore, Councill, Theodore Alexander WHFA Member Since: 1977 www.masins.com western retailer

DECEMBER 2010

17

Member Profile Out,” said David. “We took the hottest fall fabrics, hired models for the evening, and then dressed them in fabrics that coordinated with pieces of furniture they were sitting on. One was wearing a colorful fabric that had a lot of orange tones on it while she sat on an orange chair. We put the models in the front window. There were a few thousand people at this event, so it was a different and unique way of getting attention.”

Another event Masins hosts is an annual Stickley truckload sale. Instead of just inviting people, Masins has made it more of an exclusive event by allowing only the first 150 people to RSVP to attend. “In the first two days of sending out the information, we had over 150 people RSVP. Anything that creates a sense of urgency seems to be effective today,” David said.

David and the rest of the Masins team are always pushing themselves to find unique ways to stand out from the crowd. His father, Bob, told him when he entered the business to never be satisfied with the status quo. “He told me that if the business isn’t going to grow and be dynamic for the better, then there is no reason for doing it. Make sure you are at the top of your game and always working hard, day in and day out,” said David.

In the future, David wants to not only focus on growing the business but also to distinguish Masins as the premier furniture store on the West Coast. “I want to be known as a very fashionforward retailer, a unique retailer—someone who is challenging, dynamic, has good ideas and stands out from the crowd of other businesses,” he said. “Differentiation is the biggest thing for us.”

With the fifth generation of the Masin family being born in 2008, the tradition of Masins Furniture providing high-end furnishings to the Seattle area is sure to continue for decades to come.

18

DECEMBER 2010

western retailer

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

randy StEwart

relationship Manager, GE Money

lEE GOOdMan

President and CEO, Jerome’s Furniture

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

GE Money is invested in Jerome’s Furniture.

gemoney.com

Safety Spot

DAY ONE

SAFETY M For additional information on safety issues, please visit the SAFETY SPOT at WHFA.org or contact your WHFA Safety Director, Kaprice Crawford at (800) 422-3778.

Kaprice Crawford WHFA Marketing Director and WHFA Safety Director 20

ost workplace injuries involve workers who have been on the job for less than one year, many have been on the job for less than 30 days. New workers may be experienced in another line of work or they may just be coming out of school with very little, or no job knowledge. They may not be aware of the hazards they could face in the workplace or the proper safety procedures to follow that would help to protect them.

It is the responsibility of the employer to provide training that will enable workers to perform their jobs in a safe, efficient, and productive manner, while also complying with the regulations and standards that apply to their industry.

A commonly overlooked part of safety training is the language barrier. This issue may go unnoticed, as few workers won’t admit they do not understand job instructions being given by the employer. However, not being able to understand safety instructions can quickly lead to work injuries, incorrect machine operation or problems with production, quality or compliance. Therefore, the trainer must make sure every worker understands the training material; not just that a worker was present.

It is vital that workers understand the purpose of the training, why it will be of use to them, and the consequences of not following safety rules and procedures. Training material should be organized so that the order in which the material is presented will match the safety procedures that are to be followed on the job.

The most effective safety training starts from the day the worker is hired. A good place to start

DECEMBER 2010

western retailer

is by explaining the company’s Injury and Illness Prevention Program (IIPP). The IIPP “training umbrella” requires workers to be trained in two major areas: • General safety: areas that affect all

employees such as fire drills or other

emergency procedures • Specific training: for the hazards

associated with the employee’s job

assignment All training, no matter how brief, should be documented and should be placed in the employee’s file or training log. Training is required: • For all new employees, and employees

who have been transferred to a new job

activity • Whenever new hazards are introduced

(chemical or physical) • Whenever new hazards are recognized,

such as an update • Material Safety Data Sheet (MSDS) • For supervisors to familiarize themselves

with the safety and health hazards of

employees under their supervision Now is a good time to review training requirements and be aware that annual training may be required for certain activities or hazardous exposures. To learn more about the training requirements for your particular workplace operation, check with your State Fund Loss Control Consultant or Cal/OSHA.

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

Program of the Month

Increase your Exposure with

Fleet Graphic Solutions A n American Trucking Association study shows 91 percent of people notice words and pictures when displayed on trucks.

Now you can show more than just a name on the side of your van or truck. TruckSkin® removable skins create an instant billboard for your business! With vivid four-color imaging you can build consistency in your fleet and create a larger than life presence, all at WHFA member discounts!

Expand your Advertising without increasing your budget. With TruckSkin® your truck becomes a mobile billboard without the restriction of a set location. Down every road your message is displayed 24/7. The versatility of TruckSkin® enables you to easily target specific events, audiences or products at a fraction of the cost of other advertising mediums.

Cost Per Thousand (CPM) Prime time spot TV

$20.54

Newspaper (1/4 page BW)

11.66

Prime Time Network TV

11.31

Radio (:60 morning drive slot)

5.92

Rotary bulletin (billboard)

1.78

Truckside ad

0.70

Source: Trucking Association & Outdoor Advertising Association of America

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

Cover your Assets with ADDED VALUE

TruckSkin® seamless, high resolution, digitally-printed vinyl panels mount easily to the sides and back door of your truck to create instant dynamic advertising. TruckSkin® is a revolutionary vinyl covering that slides into grooves on the sides and back of your truck body, changing the truck into a billboard.

The skins are easy to change, inexpensive and efficient. Your skins provide protection from rigorous over-the-road wear and tear, shield the body from harmful UV rays, and can be easily changed and updated. Get a Custom Quote within 24 hours. TruckSkin® will take your truck specifications with artwork and work up a custom quote for your fleet branding. A full art department is available to assist you in your designs and to answer all your questions.

For more details contact your WHFA Member Representative at (800) 422-4778.

“With

TruckSkin® your truck becomes a mobile billboard without the restriction of a set location.

Down every road your message is displayed 24/7.

”

From Idea to Installation…

western retailer

Kaprice Crawford Marketing Director WHFA

DECEMBER 2010

21

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Operational Excellence

W

e’ve all heard the saying “Cash is King”.

That is very true. The level of liquidity that an organization can maintain determines the ability of that organization to operate each day and to succeed in the future.

High liquidity allows organizations to reinvest in themselves to boost efficiency and sales. This reinvestment is the catalyst for expansion which generates even greater cash flow. On the flip side, low liquidity forces companies into cutbacks, tightening of operations and an eventual downward spiral.

Recently some business leaders asked me for advice on figuring cash flow with respect to actual versus money in the bank. They also wanted some specifics on using software and spreadsheets to assist in getting a better handle on their cash flow.

With this in mind, I recommend four prime actions: • Reconcile the bank account • Generate a Statement of Cash Flow • Forecast future cash levels • Track key cash and liquidity metrics You don’t need to be an accountant to reconcile the bank account. It’s as simple as being able to answer the questions: “Did this money come into the bank account?” and “Did this money go out?” Almost every business operating system has a function to reconcile cash between the books and the bank, so spreadsheet software is usually not necessary. The process works like this: every day your cash receipts and cash payments are recorded as they occur.

This determines your internal book balance or balance in your operating system. For example, if you take a check or a Visa payment, even though the transaction has not hit the bank yet, your book balance increases. Alternatively, the instant you print a check, your cash book balance decreases. There are also automatic transactions that occur directly in your bank account before Contact WHFA at www.WHFA.org or (800) 422-3778.

they appear on your books. An example of this would be bank service charges. Your book and bank balance will always be different due to this delay in recording. This is why reconciliation is so important. It allows you to keep track of your daily transactions and see what has cleared (hit the bank) and what has not yet cleared (still outstanding or in process).

To help better understand your actual cash, here is a simple cash reconciliation formula: Bank balance + uncleared deposits uncleared checks or charges = book balance Reconciling cash is the process of comparing your system and the bank account and making sure that all the transactions that clear the bank account are correct and that all entries are accounted for on the books. It helps keep both the financial statements and the bank’s accounting correct. I advise my clients to do this frequently—daily or weekly. It takes only minutes via online access and it keeps the current cash position foremost in your mind.

David McMahon PROFITconsulting Consultant

Generate a Statement of Cash Flow A Statement of Cash Flow is as critical as a Balance Sheet and a Profit and Loss Statement.

It tells you why your money came in and why it went out. Most systems with a financial package will allow you to generate this statement automatically. If your system does not allow for this, you can use spreadsheet software to create this statement. One way of creating this statement is to take your beginning book cash balance, add your net income, add any depreciation expenses from operations, subtract any increases in assets, and subtract any decreases in liabilities. As well as analyzing your monthly and year-to-date Statement of Cash Flow, you can use a spreadsheet to create a forecast of cash into the future to act as an actionable roadmap.

western retailer

DECEMBER 2010

23

Here is an example of a Cash Flow Statement that includes a forecast for the future:

Forecast Statement of Cash Flow

Furniture Company Inc.

For the Years Ending December 31, 2010 to 2012

Actual Cash Beginning Balance Net Earnings for the Year Plus: Depreciation expense Total from Operations

2009 $317,642

2010 $413,942

2011 $472,519

2012 $752,095

303,973

516,843

697,217

928,464

25,000

30,429

34,680

43,436

328,973

547,272

731,896

971,900

-3,331

-3,664

Other Sources (Uses) of Funds -4,000 -5,552

Accounts Receivable Inventory Prepaid Expenses Fixed Asset Purchases Other Assets Accounts Payable A/P Pending Salaries Payable Customer Deposits Taxes Payable Notes Payable Reduction in Due to Related Parties Reduction in Long Term Liabilities Owner Draws Total Source (Use) of Funds Net Increase (Decrease) in Cash Cash Ending Balance

-100,000 -1,000 -84,000

-461,215 -525 -50,000

-56,651 -551 -50,000

-53,414 -579 -75,000

-200 62,696 8,000 2,000 40,000

-250 118,623 10,192 2,972 51,584

-263 -16,105 1,252 1,783 30,950

-276 -3,383 1,180 1,961 34,045

5,000 7,000 -10,000

7,572 10,486 -10,000

4,543 -28,000 15,000

4,997 24,000 -30,000

-10,000

35,000

-15,000

-30,000

-148,169 -232,673

-197,582 -488,695

-335,948 -452,320

-453,191 -583,321

96,300

58,577

279,576

388,579

$413,942

$472,519

$752,095

$1,140,674

In this example, in 2009, this business started with $317,642 cash on the books. Net income with depreciation produced an extra $328,973 in cash flow. Total source and use of funds contributed to a decrease of $232,673 with a net increase in cash flow during the 2009 period of $96,300. Thus, the ending cash book balance was $413,942.

Continued on page 26

24

DECEMBER 2010

western retailer

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

Continued from page 24

26

Forecast Future Cash Levels

Track Key Cash and Liquidity Metrics

We all hate surprises when it comes to factors that negatively impact cash flow, right?

Seek to minimize the guess work. You can use spreadsheets or reports to help forecast future cash levels. Here are some examples of prime elements to consider: • Expected future receipts—figure cash

deposits as a percentage of sales and

Accounts Receivable typically collected • Expected changes in gross margin, various

operating and bank related expenses, and

other income and expenses • Net income or loss • Value of inventory as a percentage of sales;

also consider aging existing purchase

orders when determining this metric for

the future • Accounts Payable level as a percentage of

inventory; consider payment terms • Fixed asset purchase and sale of non inventory assets • Short term or long term loans and

payment plans for loans • Capital investments and shareholder

withdrawals Forecasting and tracking these elements in advance helps you avoid liquidity problems and helps better plan for the future.

To help you track your performance and set benchmarks, I suggest tracking three key cash metrics each month when your financials are produced.

Current Ratio: Current Assets / Current Liabilities. This measures your ability to pay for debt during the next year to meet your short term obligations. A company that is financially strong has assets that are two times their liabilities.

Quick Ratio (a.k.a. Acid test ratio): (Current Assets – Inventory) / Current Liabilities. This is a great measurement of liquidity for industries that carry inventory. It measures the ability to pay for short term liabilities with liquid assets. The minimum is .5 with 1 being a much better place to operate.

Cash Ratio: (Cash + Marketable Securities) / Current Liabilities. This is the most conservative liquidity ratio with .5 being a decent benchmark.

Time is of the essence. To get a better handle on your cash: reconcile frequently, generate a Statement of Cash Flow at period end, create forecasts to avoid pitfalls, and set targets on your key liquidity metrics.

Once these processes are in place the stage is set to increase cash flow.

DECEMBER 2010

western retailer

David McMahon is a management consultant in complete business operations for PROFITconsulting, a division of PROFITsystems, Inc. David can be reached at davidm@profitsystems.com.

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

World Market Center Las Vegas January 24-28, 2011 New Showroom Building C 4th Floor

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RESOURCE CENTER

National Home Furnishings Association Western Home Furnishings Association

Visit the Western Home Furnishings Association.

We are your Retailer Resource Center.

Find us in Building C, on the 4th floor.

National Home Furnishings Association • www.NHFA.org • 800.888.9590 • 336.886.6100 Western Home Furnishings Association • www.WHFA.org • 800.422.3778 • 916.784.7677 western retailer

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MONDAY January 24

TUESDAY January 25

WEDNESDAY January 26

THURSDAY January 27

The Psycology of Sales!

WHFA Annual Membership and Board of Directors Meeting

My Website is Ringing the Register!

Upgrade Your Warehouse and Delivery

WHFA Academy Series Operations Profit Seminars

WHFA Academy Series Operations Profit Seminars

Selling to the Hot Buyers, Generation X and Y

Sales 2011—The New Approach

Lucky 7!

For a Hot ‘11

Color Influences

The Science of Sleep—Don’t Sell Mattresses, Sell the “Quality of Life”

CLOUD Technology—Is it For You?

The Crackle! Factor: Turning Your Business Off Auto-Pilot

Pay For Performance

Marketing to Tomorrow’s Consumer Today: Beyond the Internet to Intergration

Attract, Capture, and Convert Shoppers into Customers

Brad Huisken IAS Training

7:30 - 9:00am

Steven Mclendon MicroD

Bob Green STORIS

SEMINAR GRID

Sponsored by Profitability Consulting Group

Doug Knorr Knorr Marketing

Sponsored by Profitability Consulting Group

Margi Kyle The Designing Doctor

Ron Wolinski Profitability Consulting Group

Is Your Business Ready For The Next 5 Years?

Profit Management Promotions

Online Marketing —Now or (maybe) Never!

Rafferty Pendery Grey Suit Retail

The Essence of Retail Gerry Morris InnerSpring

Daniel Bolger The Bolger Group

Joe Milevsky JRM Sales & Management

Diane Covel Myriad Software

David McMahon PROFITsystems

Rich Kizer & Georganne Bender KIZER & BENDER Speaking!

Social What?

1,2,3 for Social Newbies Julia Rosien SocialNorth

Regina Dinning Banner Marketing

Mark Lacey The Furniture Training Company

The Business Survival Academy Series with World Market Center - C-3

4:00-5:00pm

3:00-4:00pm

1:30-2:30pm

12:00-1:00pm

10:30-11:30am

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Actions for Transactions

Philip Gutsell GutSELL & Associates

Merchandising for a Must-See, MustBe-There Retail Experience Connie Post Connie Post Companies

Intergrated Inventory Management Maggie Gillam Gillam & Co.

Looking back on the years Almost six years ago, I was hired as the Western Retailer editor. I was fresh out of college and eager to use my skills that I had developed editing for an IT website. I was used to seeing terms like SAP, CRM, and Java, in the pieces that I was editing, and soon I realized I would be quickly learning a whole new vocabulary for the furniture industry.

I believe it was on my second day of work, I was informed that a couch is called a “sofa”… never call it a couch! I also learned about case goods, occasional tables and motions. I felt like I was entering a whole new world—but I was excited for the adventure!

My adventure soon led me to my first member profile interview. I will be honest, I was very nervous.

Thankfully the profile was with Valerie Watters, owner of Valerie’s Furniture and Accents. Valerie and I instantly connected (then again, if you have ever met Valerie, you would know that she instantly connects with everyone!) and the profile turned out great.

Over the years, I developed a passion for the magazine and the industry. I often joke with people that the magazine is “my baby”. The magazine slowly grew as the industry was thriving because of the housing boom. In July 2008, I was excited to produce our largest issue ever—82 pages! During my time here, we have also experienced many challenges

just like the rest of the industry. The economic downturn greatly affected the size of each issue—but I am grateful that we have been able to continue producing a high-quality magazine for our members.

During our highs and lows, I have been given the chance to meet amazing retailers and share their stories.

Every month I have interviewed a WHFA member for the member profile spotlight article, and each story inspires and motivates me to create a better magazine for retailers to read. This is an industry full of passionate, creative, caring and inspiring people that work hard every day to meet the needs of their customers.

Not only have I met some amazing home furnishings retailers, I have also connected with the other side of the industry—the vendors and manufacturers. Whether they are advertising or writing articles for the magazine, they have been a tremendous support to us over the years. We really couldn’t put together this magazine without them!

Congratulations to everyone that has helped us produce Western Retailer for the last 20 years—and here is to the next 20!

Melissa Dressler Western Retailer Managing Editor 2005 – Current

Industry Beat 2010 Sleep Train Annual Charity Golf Classic Raises More Than $400,000 for Foster Children Sleep Train, the largest bedding specialist on the West Coast and No. 4 nationwide, is proud to announce that its Fourth Annual Sleep Train Charity Golf Classic raised more than $400,000 for foster children, including emancipated youth to continue with their education after graduating from high school through scholarship programs.

The daylong event at the Lincoln Hills Golf Club in Lincoln, Calif. hosted 380 participants for an 18-hole tournament, post-golf luau and dinner and a live auction.

Celebrating its 25th Anniversary, Sleep Train’s Charity Golf Classic quadrupled year-over-year donations, with major proceeds going to these five organizations: • CSU Chancellors Office/College Pathways • City College of San Francisco – Guardian

Scholars Program • UC Riverside – Guardian Scholars Program • Sacramento State – Guardian Scholars

Program • College Success Foundation – Governors

Scholarship Throughout the event, the theme of having fun and helping at-risk youth was echoed with attendance from Sleep Train’s foster organization

partners and stories of the impact the company has on these children and young adults.

“Children have always been near to my heart, which is why we made them the focus of Sleep Train’s charitable efforts,” said Founder and President Dale Carlsen. “From the moment that I became aware of the plight of foster children and gained the understanding that these children often arrive in a new home with nothing, it became a central part of our mission. This event is about gathering the people that have been integral to our success to have fun and create a path for the next generation of foster youth to do the same—be successful while enjoying life.”

The Sleep Train Charity Golf Classic drew participants from all over the United States including representatives from Simmons Bedding Company, the presenting sponsor, Sealy Mattress Company, Tempur-Pedic®, Leggett & Platt, Latex International and Serta Mattress Company.

Advertising Inquiries & Rates The company held the Contact: Cindi Williams, WHFA Advertising Manager, event during its annual 500 Giuseppe Court, Ste. 6, Roseville, CA 95678.

Coat Drive for Foster (916) 960-0277 E-mail: cwilliams@whfa.org. Subscriptions: $35.00/ Kids, which occurred year, USA. through October 31, Published by Western Home Furnishings Association, a National Home Furnishings Association affiliate, in the interests of 2010.

Advertisers Index Please support the advertisers that support your magazine.

Advertiser

Page

Phone/Website

Color Ad................................................................. 22.................................... (888) 264-6991 Diakon Logistics..................................................... 15.............................(877) 700-4297 x 15 Emerald Home Furnishings................................... 2..................................... (800) 685-6646

retail home furnishings dealers, manufacturers, d ­ istributors and salespeople.

Distributed to home furnishings retailers handling f­ urniture, ­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 F ­ urnishings A ­ ssociation.

Western Retailer magazine is copyrighted by Western Home Furnishings Association. December 2010, all rights reserved.

Western Retailer:

Furniture Wizard.................................................... 25.................................... (619) 869-7200

Read by furniture retailers in the West

GE Money............................................................... 19.................................... (866) 209-4457

Distribution:

Home Furnishings Industry Conference............... 7..................................... (800) 422-3778

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

iFurniture.net.......................................................... 11.............................www.iFurniture.net Leggett and Platt................................................... 12............................... www.LPCPG.com Micro D............................................................ Back cover............................. (800) 964-3876 PROFITsystems, Inc............................................4 & 31................................. (866) 453-5010 Retailer Resource Center...................................... 27.................................... (800) 422-3778 Truckskin................................................................. 26.................................... (877) 866-7546

30

DECEMBER 2010

western retailer

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

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

Simplify…Simplement…Simplementation In order to focus on your business, not your computer network, you might need to simplify the whole process. If your perfect computer solution includes real-time inventory management, merchandising, warehousing and distribution tools, robust customer relationship management as well as a suite of financial and business metric reports - all without the need to manage a complicated computer network, PROFITsystems has the solution you are looking for.

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