august 2015 — beat amazon at its own game

AUGUST 2015

INSPIRATION+ EDUCATION

LASVEGAS

MARKET

ISSUE

Beat AmazonAt Its OwnGame

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Warehouse & Operations Productsfor the Furniture Industry

EXCLUSIVEMEMBER PRICING*Phone: 800.422.3778 or 916.784.7677 Fax: 916.784.7697Website: www.nahfa.org Email: [email protected]*Non-Members add 25%

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RetailerNOWmag.com AUGUST | 2015 1

WHAT’S INSIDE 2. NAHFA President’s Letter 4. Editor's Note 14. Retail Voice 16. Member Portrait: The Minten sisters20. Product Focus: Youth Furniture24. Next Generation: Dorian Stacy Sims28. Retailer Resource Center Market Guide34. Member Bene� t: O� ce Depot Savings42. Government Action: Online Sales Tax44. Of Note

AUGUST2015

DEPARTMENTS Cover Story

10. Beat Amazon at Its Own Game

Sales & Marketing

26. 10 Tips for Getting More from Your Current Customers36. Retail Performance Report

Operations

38. Want to Sell More Mattresses?

Five takeaways you can implement this month:

1 Beef up your website. 10

2 Stand out from your competitors. 14

3 Increase sales from current customers. 26

4 Save on o� ce supplies. 34

5 Boost mattress sales. 38

TAKE 5!

16

10

20

Marty CramerNAHFA President

I

PresidentMarty CramerCramer’s Home Furnishings

President-ElectJeff ChildRC Willey

Vice PresidentSteve KidderVermont Furniture Galleries

Secretary/TreasurerJim FeeStoney Creek Furniture

ChairmanRick HowardSklar Furnishings

Executive Staff

Sharron BradleyChief Executive [email protected]

Mary FryeExecutive Vice [email protected]

Membership Staff

Kaprice CrawfordMembership Team [email protected]

Jordan [email protected]

Sherry [email protected]

Michael [email protected]

Jana [email protected]

Dianne [email protected]

Please call 800.422.3778for membership inquires.

Contact Us

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RetailerNOWmag.com800.422.3778

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“ ”

2 AUGUST | 2015 RetailerNOWmag.com

Synchrony Financial, formerly GE Capital Retail Finance,

is bringing new meaning to the word partnership. We

offer credit and financing solutions for small and medium

independent retailers as well as top home furnishing

retailers. With over 80 years of retail heritage, we have

the products, services and industry expertise to help

our partners improve customer loyalty and increase

average transaction sizes. Find out what Synchrony

Financial can do for your home furnishing business at

SynchronyBusiness.com/furniture or 1-855-973-3552.

Engage with us.

Credit is extended by Synchrony Bank.© 2015 Synchrony Financial. All rights reserved.

Banking. Loyalty. Analytics.

4,000+ HOME FURNISHING PARTNERS 1 FINANCING SOLUTIONS PROVIDER

Money often costs too much.— Ralph Waldo Emerson

Have We Got a Deal For You!

f you are not using the North American Home Furnishings Association’s financing program through Synchrony you might want to take a fresh look. Most of you are aware our financing partner has changed its name. GE finance is now Synchrony. But did you

know that Synchrony, in partnership with our association, has cre-ated a new buy-down program?

Each month NAHFA is offering additional discounts on financ-ing rates. These buy-down specials are designed to make association members even more competitive in the very competitive zero-percent interest market. We know from comparing our current everyday rates to what is being offered in the industry that the NAHFA Synchrony program can’t be beat. Add to that the monthly buy-down specials and the volume discounts, and you’ll find this program adds more money to your bottom line than any program out there.

It’s no surprise that some of the largest retailers in the country are taking advantage of our program. This month, the buy-down rate is 12 months WPI for 1.99 percent. When you decide to do a comparison of rates be sure to enlist the help of one of our excellent membership representatives to help you understand the whole pic-ture. It’s important to look at the program with all the rebates and discounts included to understand all the savings you’re eligible for.

I was involved in the talks with Synchrony and NAHFA to devel-op this program. I know how hard Synchrony and your association worked to make sure our program is the industry leader. We were looking for a game-changing program. Synchrony knew it wouldn’t be easy, but they made it happen. The savings this program offers are significant so grab a couple of monthly statements from your current program and give your membership representative a call. I am sure you will be pleased with the results.


Synchrony Financial, formerly GE Capital Retail Finance,

is bringing new meaning to the word partnership. We

offer credit and financing solutions for small and medium

independent retailers as well as top home furnishing

retailers. With over 80 years of retail heritage, we have

the products, services and industry expertise to help

our partners improve customer loyalty and increase

average transaction sizes. Find out what Synchrony

Financial can do for your home furnishing business at

SynchronyBusiness.com/furniture or 1-855-973-3552.

Engage with us.

Credit is extended by Synchrony Bank.© 2015 Synchrony Financial. All rights reserved.

Banking. Loyalty. Analytics.

4,000+ HOME FURNISHING PARTNERS 1 FINANCING SOLUTIONS PROVIDER


Robert BellEditor, RetailerNOW

RETAILERNOW STAFF

Lisa CasingerEditorial [email protected]

Robert [email protected]

Tim TimmonsArt [email protected]

Michelle NygaardSales [email protected]

Sydnee [email protected]

RETAIL ADVISORY TEAM

Carol BellContents InteriorsTucson, Ariz.

Travis GarrishForma FurnitureFort Collins, Colo.

Rick HowardSklar FurnishingsBoca Raton, Fla.

Mike LunaPedigo’s FurnitureLivingston, Texas

Andrew TeppermanTepperman'sWindsor, OntarioThis Month's ContributorsJeff Giagnocavo, Karen Hornfeck, David Love, David McMahon, Gary Morris and Bill Napier.

Subscription: $70/yearRetailerNOW, ISSN# 2166-5249, is

published monthly (except March and December) by the North American Home Furnishings As-sociation, 500 Giuseppe Court, Ste. 6, Roseville, CA 95678.

Application to Mail at the Peri-odicals Postage Prices is Pending at Roseville, CA, and additional mailing offices.

POSTMASTER: Address changes to: RetailerNOW, North American Home Furnishings Association, 500 Giuseppe Court, Ste. 6, Roseville CA 95678.

If you would like to stop receiving RetailerNOW, please send an email to [email protected].

© 2015 North American Home Furnishings Association. Published by the North American Home Furnishings Association. Material herein may not be reproduced, copied or reprinted without prior written consent of the publisher. Acceptance of advertising or indication of sponsorship does not imply endorsement of publisher or the North American Home Furnishings Association. The views expressed in this publication may not reflect those of the publisher, editor or the North American Home Furnishings Association, and North American Retail Services Corp. Content herein is for general information only; readers are encouraged to consult their own attorney, accountant, tax expert and other professionals for specific advice before taking any action.

“ ”What's dangerous is not to evolve. Jeff Bezos

I

Scouting for Relevance In Every Store’s Life

snagged a deal recently at a neighborhood yard sale. Five bucks for 37 vintage issues of Boys’ Life, the monthly magazine of the Boy Scouts of America. Riley, my son, is a Boy Scout, and sub-scribes to the magazine today.

Flipping through the pages hurtled me back to when I was a Webelo. The issues are a window to what was important to

boys back then. There were stories about Mickey Mantle and model airplanes, horseback riding through the Bad Lands of South Dakota and scuba diving around shipwrecks off the coast of North Carolina.

I showed the magazines to Riley who seemed as interested in them as I was in his current versions, which include stories about computer games and hydration bladders for backpacks.

Turns out, Boys’ Life has been around since 1911 and therein lies my point: How does an 105-year-old magazine manage to pique the interest of a 14-year-old boy? By staying relevant of course.

Relevance is something everyone considers over the course of a lifetime and a business cycle. If you haven’t, you will. It’s a topic I take personally as the editor of a print magazine. This just in: As attention spans shrink and binary publishing proves a more lucrative business model, the medium in which I toil is struggling. But that’s where the idea of long-lasting influence comes in. As long as our words can have an impact on your business, we are relevant.

Just like your store. If you can affect someone’s life with your products and services, while making money, you have meaning.

For me, it’s simply about doing what I love. It’s the fire in my belly. Hope-fully you see that fire by reading our magazine. Plus, if you’re reading this, you’re helping to keep us relevant!

This issue—our 34th and counting—is all about staying relevant. Bill Na-pier looks into how your store can beat Amazon at it’s own online game. It’s an important topic that every retailer needs to embrace if it wants the staying power of Boys’ Life.

You are responsible for your own relevance. If you fail, that failure is yours. But if you succeed, your influence can last for decades or more. Make a lasting impression. As for those old Boys’ Life magazines, I took some of the really old ones down to a retirement community not far from my office. I suspect they’ll be relevant for years to come.

Call Todayto register to attend

1-800-844-0841www.tupelofurnituremarket.com

1879 North Coley Road • Tupelo, MS 38801Phone: 662-842-4442 | Fax: 662-844-3665

You Can’t Afford to Miss theTupelo Furniture Market!

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Join thousands of furniture and

home accessory retailers, and more

than 500 premier m a n u f a c t u r e r s ,

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August 20 - 23, 2015

Call Todayto register to attend

1-800-844-0841www.tupelofurnituremarket.com

1879 North Coley Road • Tupelo, MS 38801Phone: 662-842-4442 | Fax: 662-844-3665

You Can’t Afford to Miss theTupelo Furniture Market!

PleaseFollow Us On

Insta

TUPELOWe’re All Business

Join thousands of furniture and

home accessory retailers, and more

than 500 premier m a n u f a c t u r e r s ,

i m p o r t e r s a n d suppliers in Tupelo!

August 20 - 23, 2015

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Spinning a New Thread in theWearable Technology Market

Stroking your shirt to activate your cell phone or rubbing the sofa to turn off the lights might not seem as far-fetched as you think. Project Jacquard is an endeavor of Google’s Advanced Technology and Product research group that was announced in May. Project Jacquard makes it possible to weave touch and gesture interactivity into any textile using standard, industrial looms. Every-day objects such as clothes and furniture can be transformed into interactive surfaces thanks to new conductive yarns created in collaboration with Google’s industrial partners.

Jacquard yarn structures combine thin, metallic alloys with natural and synthetic yarns like cotton, polyester, or silk, making the yarn strong enough to be woven on any industrial loom. Jacquard yarns are indistinguishable from the traditional yarns that are used to produce fabrics today.

Using conductive yarns, bespoke touch and gesture-sensitive areas can be woven at precise locations, anywhere on the textile. Alternatively, sensor grids can be woven throughout, creating large, interactive surfaces.

Project Jacquard will allow designers and developers to build connected, touch-sensitive textiles into their own products.

If you are interested in learning more, you can sign up to receive Project Jacquard updates at google.com/atap/project-jacquard/.

Canva (about.canva.com) Australian-founded startup Canva is a free web-based design plat-form that lets individuals and small businesses design email templates, social media headers, presenta-tions, ads, web graphics and more. It’s simple to use and has templates

that let even non-designers create professional-looking images.

According to a Canva survey of 500 small- and medium sized American businesses, 79 percent found designing marketing materials time consuming. With more than 40 percent of Fortune 500 companies already using Canva, CEO and co-founder Melanie Perkins said a comprehensive team product was something that thou-sands of people had been asking for. Web app, iPad app; Free—$1 for select images (professional stock images & graphics; you only pay when you publish)

Top 10 Ways to Use Google Apps in Retail Google Apps are nothing new, but they sure are powerful. Google has provided 10 use cases, listed below. Visit the source link to learn how retailers are using Google Apps to increase store associate engagement, drive revenue, and bring products to market faster. Incentive: each use case includes a real-life retail example of application.

1. Securely create and manage digital brand assets for the entire company.

2. Train your employees anytime, anywhere, from any device.3. Empower employees with social networks.4. Increase store sales with better store associate effectiveness

and world-class service.5. Manage store operation processes online from any device.6. Manage tasks and schedules for all stores and employees

online.7. Access important company information any time, from any

device.8. Recruit, interview and onboard employees quickly.9. Bring products to market faster with increased supplier col-

laboration and management.10. Manage and track store construction projects.

Free; Web-based for Mac, PC; iOS, Androidsource: learn.googleapps.com/home/top-10-retail

Want to share a cool app? Drop us a line at [email protected]

GOODBYE, GLASSES Google’s Project Jac-quard hopes to bring wearable technology to an integral part of our lives: textiles.

RetailerNOWmag.com JULY | 2015 7


CONVERSATIONS TOPSHELFPutting in a Full Day’s Work Before NoonTwo Awesome Hours (Harper Collins, 192 pages, $25.99)

It seems that every day is the same for most of home furnishings retailers: too much to do, too little time to do it. Author Josh Davis’ contention that we can regain control of our lives by being highly productive for two hours a day seems almost silly.

Yet in his book, Two Awesome Hours, Davis makes a case that we can get most of the important work done in two hours—or a similarly overall short amount of time. Hard to believe? Sure. After all, we are given eight hours (at least) every day to get the job done. We need all that time, right?

The secret, says Davis, is to change the mind set of most produc-tivity e� orts, which is built on the concept of trying to be e� cient for the entire day. The fact is machines and computers can be ef-� cient for eight or 10 hours a day, but humans can’t. The brain isn’t a biological version of a computer microprocessor. You can’t just turn it on and o� . It needs to rest. It becomes distracted—and that’s okay.

Based on the science of the brain, Davis has developed � ve pro-ductivity strategies designed for humans and not machines.

Strategy 1. Recognize Your Decision Points. It may seem the moments between tasks are unimportant and unproductive. After all, you aren’t working. As a result, most people rush through what Davis calls decision points, those moments in the day when you’re deciding what to do next. In their quest to be productive, however, people don’t give enough thought to what they should be doing next. They grab the � rst task they see and end up spending an enor-mous amount of time on a task that’s less important.

Strategy 2. Manage Your Mental Energy. Not all hours are the same. This is a major di� erence with machines, which will work the same no matter when they are operating or for how long. A brain will become tired, and di� erent tasks have more or less impact on brain fatigue.

Strategy 3. Stop Fighting Distractions. As with decision points, distractions are often seen as the enemy of productivity. In truth, they can be opportunities for regeneration and refocusing. That doesn’t mean reading the sports pages or loa� ng on social media sites at will, Davis explains. However, daydreaming for a few minutes while looking out the window can send you back to the task re-freshed and newly focused.

Strategy 4. Leverage Your Mind-Body Connection. There is a tendency, Davis writes, to separate the mental from the physical. In truth, mind and body are connected, and this o� ers opportunities to help (or hurt) your mental capacity by how you treat your body. How, when and what you eat or drink, for example, can make a big di� erence in your mental capacity.

Strategy 5. Make Your Workspace Work For You. The right phys-ical environment will also play a major role in your productivity.

In this quick and engaging read, Davis makes a compelling case that the secret for creating the conditions “for at least two hours of incredible productivity every day” is to forget e� ciency and draw on the lessons from the latest research in psychology and neurosci-ence—two disciplines that have nothing to do with machines.

Q.How often do you check your competition’s pricing?

Jason SharpOwls Head Mountain Rustic FurnitureKeene, N.Y.

“Every week at least two or three times a week. I do it mostly online, but sometimes I’ll go into the store. It’s an e� ective way to know where I am in terms of competitiveness. If I see something where I’m a bit high, I’ll probably lower it. I'm not obsessed

with my competition, but I want to know where I stand. ”

Michael StoneStone’s FurnitureHopedale, Mass.

“I never waste a minute of my time worrying about what other people are doing. This is our 58th year of minding our own business and focusing on what we can do for the customer, not who has the best price. If somebody says they’ve got it cheaper

down the street, I urge them to go buy it.”

Rick GreenGreen’s FurnitureWest Plains, Mo.

“We check in on a weekly basis. We read everyone’s print ads, send employees to shop other stores—whatever we can do. Then we make adjustments based on what we � nd. Sometimes we move a price up and sometimes the price goes

the other way. If we’re happy with our margin and it’s selling, we don’t touch it.”


You saw what Amazon did to independent booksellers. Here’s how a home furnishings retailer like yourself can

compete with them.

By Bill Napier

On a recent rainy day, I was channel sur� ng when I came across a documentary about Amazon. It’s safe to say there are few people who have the business vision Amazon founder and CEO Je� Bezos possesses.

Bezos recognized early on that the Internet would forever change the way we conduct business. He envisioned a place where we could buy millions of products with the greatest of ease. Today, of course, there is no one who plays the online retail game better. Amazon had more than $80 billion in online sales last year. � at’s more than the next 14 largest retail-ers’ sales combined.

But don't be intimidated. You can beat Amazon at its own game and stay relevant in retailing (especially with Gen X and Gen Y) if you take these three steps. � ey may not be easy or instantaneous, but they’re worth it.

P L AYP L AY

HOW TO BEATAMAZONAT ITS OWN

GAME

HOW TO BEATAMAZONAT ITS OWN

GAMEGAMEGAMEGAMEGAMEGAMEGAME


Retailers need to be a 2015 disrupter much like Amazon has been the past 20 years. You can’t be a complacent thinker who only dreams about acting, you need to be a vi-sionary who puts those dreams into action.

� at’s what Bezos did. His � rst step was to study retail and look

for a complacent model he could exploit with his vision. � at model was the neighborhood and national book store chains, a $16 billion industry. Why? Because he knew a

typical 5,000-10,000-square-foot store had a � nite number of options a consumer could shop. Bezos asked himself: What if consumers could shop all the millions of titles that have been printed, and purchase them online at one location?

He knew that by o� ering an unlimited number of titles, someone would buy one of something. � at’s the de� nition of the Long Tail.

“� e theory of the Long Tail,” says Chris Anderson, former editor-in-chief of WIRED magazine, “is that our culture and economy is increasingly shifting away from a focus on a relatively small number of ‘hits’ (mainstream products and markets) at the head of the demand curve and toward a huge number of niches in the tail.”

As the costs of production and distribution fall, especially online, Anderson argues there is less need to lump products and consumers into one-size-� ts-all containers. “In an era without the constraints of physical shelf space and other bottlenecks of distribution, narrowly-targeted goods and services can be as economically attractive as mainstream fare,” he says.

Anderson predicts that demand for products not available in traditional brick-and-mortar stores is potentially as big as for those that are.

Books, along with their distribution outlets, were a perfect target. � ey were entrenched in the old model of limited selec-tion, which required customers to make a special trip to browse and discover which titles were available, with the hope of � nding what they were looking for, and then hoping it was in stock. � e old model was controlled by a few distributors who decided what was available to consumers. Of course there were millions upon millions of selections consumers may have wanted to read, but didn’t know about because of the limited selection. In the old days, newspaper or magazine book reviews, in-store recom-mendations and friend’s recommendations drove sales. � ey are still a primary source in the buying process, but not before the Zero Moment of Truth, the information consumers are looking for online as their � rst step in the purchase process.

Bezos believed in his vision and he implemented it with pas-sion and commitment. He had no problem exploiting the old model of retail, and to this day, he is committed to continuing this passion for his vision everywhere, in any retail sector, that becomes complacent.

Does this sound a little familiar?

� e home furnishings industry has long displayed the same at-tributes as the bookstore model, opening the door for Wayfair, One Kings Lane, Overstock and, of course, Amazon to disrupt the status quo.

Why? Because consumers may not like or want the limited sofa se-lection on your � oor or the slightly larger selection on your website. When consumers feel constrained by your store’s selection, they turn to the Internet, incorporating the Long Tail search for the sofa or dining room table they want.

Retailers need to put their entire inventory online because study after study shows more than 80 percent of consumers want to buy lo-cal, especially Gen X and Millennials. If they can’t � nd it locally, they will have no problem buying it from another retailer online whether that retailer is 20 states away or across the ocean.

� ink about this: Why would you want to limit your store sales and pro� ts by creating a limited selection? Is that how you prefer to shop? One or two choices of toothpaste, shampoo, T-shirts, etc? If not, why would you assume others want to shop only your limited selection?

� at’s why Wal-Mart and other big box retailers exist. � ey o� er choices, thousands of them, and even that is now under attack be-cause of Amazon’s model. � is isn’t a fad or trend, this is retail today. � e more you show, the more you’ll sell and the more you’ll make.

Home furnishings products come in a variety of colors, shapes, sizes—thousands of manufacturers and distributors with millions of SKUs. Why limit your selection to brown or black, when there may be one or 100 consumers in your market who may want purple? Have you been following DIY shows and trends? It’s all about “my design,” not “my store’s design.”

A recent search for “furniture” in Amazon’s search engine produced 4.12 million results. � at’s a lot of choices for the consumer, who will probably � nd what they’re looking for on Amazon. Add this to the other big e-retailers and consumers have tens of millions of items they can � nd and buy with a swipe and click.

So the � rst thing you must do is look at your website. It must be

The First MOVE

Have a vision and the passion for that vision, plus the unwavering commitment to implement it.

AMAZON

MODEL

GAME ON Pick a product—any product—and chances are Amazon sells thousands of di� erent versions of it. Here's the rub: You can do the same thing from your website.


mobile responsive. � e three marketing fundamentals still apply to your website and are still profound:

• Attract new customers to your store and website.• Engage them with your products and your brand message.• Connect with them by delivering sales leads and opportuni-

ties.While the fundamentals are the same, it’s how you get these

fundamentals to work that’s changed. � is requires a great web-site layout that’s packed with product data. With that said, here are a few basic website essentials:

• Site design and page layouts must be easy to search, view and navigate.

• Show coordinating items that match related items in a collection. If a bed has matching case pieces or if a sofa has matching chair, ottoman, loveseat and sectional, you need to show it.

• Use multiple image viewer and rich media to better show and demonstrate products.

• Navigation should be logical, easy-to-use and simple to understand.

• Provide the ability to tag and sort merchandise.• On the back end you need inventory data integration for

pricing, inventory availability, etc.• Administrative tools so you can manage all the elements of

your site.• Integrated marketing to communicate promotions and

marketing messages on every page. Remember, half of site entrances come from the item/brand page search and the consumer may never see your home page that shows your promotions.

• Wish list/save projects tools that let consumers save their favorites and salespeople save client projects.

• Store location and information page with interactive maps.• Financing tools like online special � nancing applications are

important for retailers that o� er this.So, you need product data, lots of it. Product data that contains

tons of content, not just a picture and some romance copy, but comprehensive attribute data on every SKU or collection that you have open to buy, even if that’s more than 100 SKUs, show it and sell it. (� e North American Home Furnishings Association can help you get that product data in an easy standardized format with its DataLink program, www.naha.org/datalink.)

If you’re not doing special orders it’s time to rethink your logic. By not having all of your available open to buy and inventory on your website, consumers won’t � nd that item they may be looking for locally. Why push your customers to Amazon?

The Second MOVE

Knowledge is power...inventory

management,point.of.saleand beyond.

Do you measure sales, expenses, and advertising returns to make more strategic business deci-sions daily or by period? Amazon does.

Do you measure at-tainable goals based on historical sales data? Do you maximize growth and create incentives for your sales team by developing a road map to

increase average invoice amounts? Amazon does.Are you ahead of the curve with robust reporting? Cap-

turing best sellers, slow movers, shopping patterns, seasonal trends, advertising returns and more—and can you quickly generate any report you desire? Amazon does.

Do you keep an eye on purchase orders, approvals, consignments, and yearly sales comparisons at any moment, allowing you to stay up to speed with signi� cant events and gauge areas of opportunity? Amazon does.

� ese are just a few of the metrics that Bezos has integrated into his business model. Businesses don’t grow by accident. � e growth of your business isn’t a matter of luck or the state of the economy, or anything external. It is the result of creating a plan and carrying it over to every aspect of your business with passion and an unwaver-ing commitment to excellence. Obviously you can’t implement all of these metrics overnight, but think about picking one and commit to owning it. When you do, add another. And then another. Very soon, you’ll be playing Amazon’s game.

Your website is

not mobile ready.

Go back to start.

Measure advertising

returns to make

future decisions.

Move ahead 3 spaces.


Retailers need to either invest in personnel who understand digital mar-keting or partner with someone who does. Mil-lennials connect digitally across all platforms and you must be there, when, where and how they want to � nd you. If not, they will default to those companies that will. I’m talking about every social

site that promotes local products and services. YELP, Google Reviews, City Search, Foursquare, YP.com, and all the others. � ere is a great product called Geo-Marketing that can place

you on all of these sites and many, many more. You can learn more at http://geomarketing.imagineretailer.com/

You must include pricing and provide a shopping cart to buy products on your website. � is should be a no-brainer, but, sadly, many home furnishings websites do not allow buyers to actually buy. It is so easy to � nd a price online for anything by Googling the SKU, loading the image into Google images and more. Get over showrooming and embrace it. All you need to say in your market-ing is you’ll match any price on that exact item.

The Third MOVE

Relentlessly pursue

excellence in the customer experience.

Don’t forget Live Chat.Everyone wants to text each other these days. Calling a

phone number is sooooo 20th century. According to Forrester Research, 62 percent of consumers reported being more likely to purchase from a site again that employs Live Chat; 44 percent want to chat with a live person while shopping; and 38 percent said they had made their purchase due to the chat session itself.

You can’t do this alone. You need a person or marketing partner to manage your website daily, and review the analytics to plan where products should be ranked.

You need someone to manage digital marketing—adwords, optimization, retargeting, social media presence, on-page SEO, social media ads, YouTube channel feeds on product/promo-tions, blogs and more.

Will this cost you time and money? Absolutely, but it won’t be nearly as exhausting and expensive as being left behind like all those independent bookstores that were caught napping when Bezos came along. Amazon plays a ruthless game, demanding retailers from every industry build a better mousetrap or be left behind. Don’t feel intimidated, instead learn from Bezos and build on his success.

� ere’s plenty of room at the table to play Amazon’s game. Why should Amazon have all the fun?

Bill Napier is managing partner of Napier Market-ing Group. He is a strategic consultant to Imagine Advertising, Englander Mattress and several other companies in the home furnishing industry. Contact him at [email protected].

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Create a plan and carry it over to every

aspect of your business. Soon, you’ll be playing

Amazon’s game.

“”


THE POWER OF THEPERIPHERY

How can your store stand out from the crowd? The easiest wayis do the opposite of what your competition is doing.

By Je� Giagnocavo

Many great ideas throughout time have come from something just on the periphery of what everyone else had squarely in their sight. While it’s good to have your eyes on the prize it is possible to be so

close to the tree you can’t see the forest.� e mousetrap has more than 4,000 patents attributed to it,

because someone was always looking beyond what was in front of them to improve upon it. Steve Jobs didn’t waste any time killing o� the iPod and quickly developing the iPhone because he saw other cell phone companies using their devices as cheap and simple iPod alternatives.

Uber has become a $50 billion company seemingly overnight. If you asked anyone how to start a taxi service six years ago when Uber was founded, undoubtedly you would have been told that you needed a medallion from the local governing body. Yet here comes Uber with no cars, no direct employees, and no maintenance department and it has shaken the mass transportation business to its core.

AirBnB did the same thing with the hotel industry. Alibaba, now the world’s largest retailer, owns no physical inventory, and Facebook is the world’s largest, most popular media company and owns no content, selling advertising to people like you on the backbone of an immense database.

What do all of these companies have in common? � ey’re all tech-nology driven, they all control and command a very focused product or service, and they all started out on the periphery.

How can you use what’s on the periphery of your business to stand out?In my business, I embrace the periphery. Consider the try-before-

you-buy space. Car dealerships send you home for the weekend in a new car allowing you to experience it as you will use it on date nights, grocery runs, and car service for kids and pets. From this philosophy our try-before-you-buy Dream Room was born—and it works. Every-one who tries a mattress set in the Dream Room buys one, at a higher ticket than normal, in fact 50 percent higher than our average. And a Dream Room process exists in every business.

Cresent Fine Furniture

Cresent Fine FurniturePhone: (615) 975-4862 Fax (615) 452-0098 Website: cresent.com [email protected] @cresentfurnShowroom: #HPMKT - 220 ELM #201

From traditional to contemporary we’ve got you covered in solid wood.

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Cresent Fine FurnitureMERCER has urban transitional styling, with clean lines, geometric forms and solid wood construction. We combine Modern Design with great features and two bed options for today’s consumer. We use the finest American-grown Black Cherry and complete it with a warm clear cherry finish with charcoal highlighting. Design details include floating top treatments and inset drawers with Blum whisper-close slides. Available NOW.

cresent-Mercer AD.indd 1 3/2/15 3:23 PM


When it comes to our store we use a scripted and choreographed “First Visit System,” which came from our study of the direct sales business of life insurance and annuities.

Almost all of those policies were sold at a high premium across the kitchen table. A conversation was had about the assessment of need and the policy was crafted to fit the insured’s long-term retirement goals.

The payoff in this “First Visit System” results in a 68 percent first-visit close and an added 13 percent close on overall traffic on subsequent visits for an effective 81 percent closing rate.

We’ve closely studied Disney for its marketing and the processes it implements to make a hot, humid and sticky central Florida “The Happiest Place on Earth.” What we've learned is that every day (and night) Disney performs what we call random acts of amazement. This is not something they do above and beyond the call of duty, but rather part of their everyday business model.

If Disney can, every night, repaint and touch up all of the white picket fences on its properties for its guests in the morning, surely we can emulate that in our business in far less adverse conditions and time constraints.

My second business, Infotail, started as Automated Mattress Prof-its because of immense study in the periphery.

I challenge you to think about what is on the periphery that you

can use in your business to translate to a better customer experience. The easiest way to begin is to simply do the opposite of what everyone else is doing. This simple act will get your “periphery juices” flowing so your mind begins to accept these new concepts and you can implement even more of them.

Did you ever think there would be a time where high-end luxury clothing and shoes, yes shoes, would be shared by many people? The time is now and the company is Le Tote, one of many companies that, essentially, rents high-end fashion on a membership basis.

Le Tote is in the same “sharing economy” as Uber, AirBnB and Facebook.

This is the periphery you need to being paying attention to. This periphery is swirling all around us with our customers. Eighty million Millennials are coming of age, finally able to pay for more than ramen and college loans. They’re ready to live the life they have been told about and seen on their screens for years.

How will they buy what you have to offer them, and will it be on their terms or yours?

Jeff Giagnocavo is co-owner of Gardner’s Mattress & More in Lancaster, Pa., and Infotail, a sales and marketing automa-tion agency. He regularly speaks at industry events on retail strategies. He can be reached at [email protected]

Cresent Fine Furniture

Cresent Fine FurniturePhone: (615) 975-4862 Fax (615) 452-0098 Website: cresent.com [email protected] @cresentfurnShowroom: #HPMKT - 220 ELM #201

From traditional to contemporary we’ve got you covered in solid wood.

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EW M

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Cresent Fine FurnitureMERCER has urban transitional styling, with clean lines, geometric forms and solid wood construction. We combine Modern Design with great features and two bed options for today’s consumer. We use the finest American-grown Black Cherry and complete it with a warm clear cherry finish with charcoal highlighting. Design details include floating top treatments and inset drawers with Blum whisper-close slides. Available NOW.

cresent-Mercer AD.indd 1 3/2/15 3:23 PM


Year-Round YuleWhile the rest of us gear up for Labor Day,the Minten sisters have another holiday ontheir minds. It's been that way for 30 years now.

By Karen Hornfeck

It may only be August, but in the Minten sisters’ Texas store, it’s beginning to look a lot like Christmas.

In the midst of South Texas cacti and mesquite brush, sits Santa’s Texas Workshop and the Christmas House where it is Christmas all year long! If Santa were a Texan (and who’s to say he isn’t?) this is exactly where he would spend his free time.

Owned by the three Minten sisters—Janie, 71; Esther, 84; and Dorothy, 87—Santa’s Texas Workshop and � e Christmas House is truly a labor of love. � e business is located on the ranch that the Mintens’ grandfather founded in 1907. Despite their ages,

the sisters are remarkably alike—all three left the ranch only brie� y to attend college, taught school nearby and never married. “We call ourselves God’s unclaimed blessings because that sounds better than old maids,” says Janie, laughing.

In 1976, the family refurnished their home, a brick ranch-style house their parents built in 1961. Excited about their new home, the Mintens decided to decorate for Christmas and host an open house. “Mom loved decorating for Christmas, and it was such a special time when we were growing up,” says Janie. Couple that with the fact that their mother, Alice, was a saver and Dorothy was a collector, and you have Christmas decorations waiting to be used.


That first open house was a success with more than 100 people attending to see the house decorated with 12 different themes. Every room (including the bathrooms) was decorated. Word quickly spread among the neighbor-ing towns. “By 1985, we were hosting six open houses for about 600 people,” says Janie. “We changed all the themes and decorations each year.” The family hadn’t opened the house to the general public, although they were increasingly being asked to do so by friends who thought others would flock to the festive event.

In 1983, the two older sisters were thinking about retiring soon from teaching and the Mintens started thinking about a new challenge. Turning an on-site 1926 farmhouse into a retail store seemed like the perfect project and a complement to the tours. When applying for a business permit, the Mintens

were asked to provide a name and Janie said the first thing that came to her mind, “Santa’s Texas Workshop!” After purchasing merchandise from nearby wholesalers, they were ready to open shop.

The next year, the Mintens applied to attend the Dallas Total

Home & Gift Market. “Even though we were seasoned travelers, both in the U.S. and Europe, when we walked into that 15-story build-ing that houses the showrooms, we were like three little country girls come to the big city!” says Janie. They scoured the market for items that department stores might not sell, like unusual nativities and other collectibles. The Mintens also turned frequent personal travel-ling into opportunities to see what other gift shops were selling.

The sisters traveled to California in 1998 to see family. On the last day of the trip, they ventured into a home accessories store—it was a visit that would shape their store’s future.

“As we were leaving, the salesperson called us over and asked if she could demonstrate an unusual wall clock,” recalls Janie. They hadn’t noticed the clock while browsing, but once the salesperson pushed a button, they were enthralled. It was unlike any clock they had ever seen before. At that summer’s Dallas market, they immediately looked up the vendor, Rhythm USA, and promptly purchased that clock, which featured children from around the world. It went perfectly with one of their 12 themes that year—A World of Christmas.

Customers were fascinated by the Rhythm USA musical motion clock. “We sold seven of them,” says Janie, “but we had to take special orders, because we’d originally only purchased one.”

The sisters are convinced that seeing the clock in a home setting made people take note of it and want one for their own homes. Janie points out that she and her sisters didn’t notice the clock in that long ago California gift shop until the salesperson called their attention to it. “Here, people can see the clocks hanging on the wall in our home during the tour and how they are worked into the décor,” she explains.

Today, the Mintens display four different Rhythm USA clocks in

their home as part of the tours, and carry 15 models in the store, ranging in price from $160 to $500. Janie says, “If a customer wants a model we do not stock, we special order it for them.”

And the clock that moved them to tears? “We eventually sold more than 1,000 of that one model until the company retired it,” says

CHRISTMAS EVERYDAY To say the Minten sisters, Esther, left, Janie, center, and Dorothy enjoy Christmas is an understatement. They've been decorating their store (above) and home year-round for the past 30 years.


Janie. The Mintens ship the clocks all over the country, and their store is the largest Rhythm USA clock retailer in their area.

Several years ago, during the Dallas market, the sisters were having dinner with the Rhythm USA clock representatives. The Mintens suggested that the company add hymns to the clock’s musical selections. Two years later, the company contacted the sis-ters and asked them to suggest some hymn titles for a new clock. “We were actually visiting the Atlanta office when the newly arrived clock was shown to us,” says Janie. “We were thrilled to find that the hymns we had suggested were the ones featured on the new clock.”

The sisters are continually looking for unusual merchandise that shoppers, especially collectors, can’t find anywhere else. A few years ago, the sisters became acquainted with a woman who has a collection of more than 3,100 nativity scenes. She found Santa’s Texas Workshop on Facebook and attended a tour. Afterwards, while visiting the Mintens’ store, the collector found several unique nativities to add to her collection.

Each year, the Mintens hold a half-price sale in May as they make room for the next year’s themes. Recently, the sisters were in the store getting ready to open for the first day of the sale at 9:00 a.m., when Janie noticed a car pulling in a parking spot. “I was opening the gate when I recognized the driver,” says Janie. “It was one of our regular customers who has to drive two and a half hours one way to get here to shop and, man, did she shop!”

The Mintens share information about tours and sales via Con-stant Contact, newsletters and Facebook. Their remote location, a

ranch that’s 2.5 miles off the nearest highway down a county road, means they are a destination shopping location. Tours and shopping are done by appointment only.

After 29 years of offering eight months of Christmas tours and shopping, it might seem like the three sisters are ready to slow down. Janie says they are thinking about it. Yet in the same breath she mentions that they stayed open a few weeks longer this year due to groups booking later and later.

Planning for the next season’s themes begins in January while they are still busy doing tours. Dorothy brainstorms themes, usually coming up with about 15 different ones that will be whittled down to the 12 that will be included in the house displays and the store. Once the themes are deter-mined, the three sisters discuss and decide what will comprise the decorations that will be used, along with family antiques and other personal collections. There are seven storerooms, including a large warehouse onsite, that hold all of their col-lections. Janie is the design expert and handles the decorating except for the themed trees, which are Esther’s specialty. In addition to decorating trees, Esther is in charge of inventory

control—both personal and for the store. Aside from the decorations and collectibles, the store sells decorative accents and smaller pieces of accent furniture.

Decorations are taken down in July, allowing for time to redeco-rate with the new themes. This year’s tours will start next month with the store restocked to mirror the house decorations.

“We can celebrate the fact that in 29 years, we have never missed

HOLIDAY DECOR The Minten sisters scour the country looking for hard-to-find holiday decorations.

Janie decorates

the store and home to make sure they look as festive as

possible.

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that important deadline!” says Janie.As Janie talks about the themes for the upcoming year,

which will be the Mintens’ 30th season, her voice fills with excitement.

It’s easy to see why so many people flock to this arid patch of Texas to find Christmas. The Minten sisters truly love Christ-mas and all that it represents. One tour of the store and that excitement becomes contagious.

Karen L. Hornfeck is a freelance writer and marketing consultant based in Greensboro, N.C. She has more than 20 years of experience in marketing, public relations and journalism. She can be reached at [email protected].

Dorothy brainstorms

themes, usually coming up with 15 that are eventually

pared to 12.

Esther handles inventory and decorating the themed trees.

Janie Minten

Esther Minten

Dorothy Minten


FINER POINTS It’s all about the details in Maxwood’s Craft desk. Check out the desk's customized crystal knobs.

Kids FurnitureGrows Up

(so does its market)

Retailers need to display the category with

parents and kids in mind.

By Robert Bell


Kids furniture is growing up, and retailers might be

looking back and wondering, “Where have all the years gone?”

It seems like only yesterday the little ones were being tucked into bunk beds or oversized race cars—and many still are. But these days you’re just as likely to find junior doing his homework at a heavy rococo-carved desk or napping in an arts-and-crafts bed. In other words, a scaled-down version of mom and dad’s bedroom.

Perhaps no other category has changed so dramatically in the past decade than children’s furniture, which continues to climb. According to Furniture Today, youth bedroom sales were estimated at $5.7 bil-lion last year and are expected to reach $6.5 billion this year—a 14 percent increase.

Yet for all the demand, many large manufacturers are reluctant to commit to the category—even more so after last year’s industry shake up when Stanley abruptly

halted its Young America youth brand and La-Z-Boy shed Lea Industries, its youth label, as part of a restructuring of its case-goods business. Stanley has since returned to the youth market with its Stone & Leigh brand.

“The demand is there, but it’s not a category that you can be half-way commit-ted to,” says Larry Furiani, vice president of dealer relations for Coaster Company of America. “When you look at the costs of getting into it and the safety and compli-ance that is required and the insurance you need to protect yourself, it’s best to stay clear if you’re not going to throw yourself into it 100 percent. We’re fully committed. A lot of smaller companies are getting in the mix, but not making the commitment. Time will tell if they can succeed.”

Companies like Coaster and Maxwood Furniture are making the commitment and coming up with trendy, innovative bedroom groups with matching casegoods that parents and children prefer over the nondescript single bed.

Coaster is synonymous with depend-able metal bunk beds, a mainstay of the company for nearly 30 years now. But in recent years the company has added more

traditional case pieces to its catalog in dark and cherry finishes to go along with the old standby of white laminate.

Furiani says many of Coaster’s youth furniture groups are nothing more than scaled-down versions shoppers will find in its adult groupings.

“Some of the same groupings that do well in the master bedroom seem to do well down the hall in the youth bedroom,” he says. “Keep in mind the parents, moms in particular, still have the top say in the purchase. Of course the kids have to like it, but it’s the parents who are signing off. It stands to reason if they like a bed in the master they’re going to respond positively to something a little smaller in their child’s room.”

Coaster, like other youth furniture manu-facturers, is adding more tech-friendly piec-es to its inventory. Furiani said the son of one of Coaster’s owners was given a leading role in the company’s youth category and has been leading the way in the company’s innovative ideas behind cord management and Bluetooth and synchronization speakers in youth desks and chairs.

“The kids use it for games and music and it’s proven very popular, very, very popular

AMPLE SPACE Storage is important in youth furniture. Above, Maxwood's Craft series London has plenty of under-the-bed and night stand storage options. Left, Maxwood’s youth furniture has design details comparable to adult furniture collections.


when ever we apply it to furniture,” Furiani notes.

Another Coaster innovation: A hydraulic mattress that lifts up for storage under-neath is being scaled down from the master bedroom to the children’s size. “It’s not a priority for children, obviously, but parents love the storage.”

Like Coaster, Maxwood has made a big commitment to children’s furniture. Indeed, kids furniture is all Maxwood sells. In 10 short years the company has become one of the leading kids furniture suppliers in the United States and worldwide. The furniture is designed in South Carolina, built in the company’s own factory in Vietnam and warehoused in North Carolina.

That Maxwood controls its supply through its own manufacturing plant is a big plus for retailers, says Anne Jensen, Maxwood’s chief marketing officer, but she says the company’s innovative, convertible furniture system makes it stand out from other manufacturers.

Indeed Maxwood’s Maxtrix brand offers some of the most innovative convertible bedroom groups in the industry. The com-pany boasts a cradle-to-college conversion system that allows pieces to be used over and over in different configurations as the child’s tastes and needs evolve.

“We’ve built our Maxtrix brand on the premise that convertibility isn’t something that stops with cribs,” says Jensen. “When your little princess doesn’t want to live in a pink bedroom anymore, you don’t have to start over with us, but rather build onto what you already have. “

Matrix allows consumers to choose from three headboard styles, three wood stains and countless fabric accessories. The compa-ny regularly offers new colors so consumers are returning to a retailer’s store to re-invent the look and feel of the kid’s room.

Matrix hasn’t overlooked anything. Customers can change out a ladder for a staircase, add finials, curtains, crystal drawer knobs or even go two-tone with the brand’s unique “crown and base” system for casegoods.

“We like to think that you’re not making a purchase for a short amount of time, but rather an investment all the way to college,” says Jensen. “That’s why we’re constantly innovating. It’s important to remember that the consumer’s needs are always changing and we need to change with them.”

Because Matrix consumers will likely keep their furniture all the way through college, Jensen said traditional colors are desirable because they stand the test of time. Shoppers tend to gravitate to cherry, natural clear maple or birch along with—what else?—grey finishes in groupings.

In addition to Maxtrix, Maxwood offers two other brands: Craft Kids Furniture and Jackpot Kids Furniture. Jackpot offers a variety of affordable bunks and lifts. Kraft offers youth furniture that focuses on style and quality. Jensen said retailers responded well to the line’s debut in High Point last year and its popularity continues to grow.

Both Jensen and Furiani stress the importance of a retailer making the same commitment as the manufacturers in selling kids furniture. “You can’t throw some bunk beds in a corner of your showroom and say

you sell kids furniture,” Furiani says. Jensen agrees. “Those days are gone,” she

says. “Kids furniture needs to be out there on display with every other category. “It needs just as much attention to lighting, casegoods and accessories.”

Jensen says retailers need to know their audience. Parents, mothers in particular, are still the ones who research and execute the purchase, but Jensen says it’s just as im-portant to get the child involved through an inviting vignette.

“An attractive display with accessories is very powerful to the child,” Jensen says. “It goes beyond the argument of quality and pulls at the heart. You need the hard facts of how the furniture is built for the adults, but you also need to inspire the child on an emotional level.”

It’s also important for retailers to find a manufacturer who can help bring custom-ers into the store given that Pottery Barn, Wayfair and other e-commerce sites are practically starting points for parents when they begin researching kids furniture.

Coaster and Maxwood counter that by investing heavily in social media to drive

LOTS OF CHOICES Maxwood’s Jackpot Series has affordable fabrics and accessories that can be added to a child’s bed all the way through college.


THE CAMBRIDGE COLLECTIONby Bolton Furniture AN INVITATION

TO PLAY, EXPLORE, SLEEP AND DREAM...

BoltonAD_JulyNEW.indd 3 6/8/15 10:50 AM

DEPENDABLE DOUBLE DECKER Coaster America has been a go-to source since the 1980s for retailers looking for quality-made bunk beds.

traffic to participating retailers’ brick-and-mortar stores. Jensen says retailers must also invest.

“Kids furniture in particular is a perpetu-ally young audience—almost always it’s going to be women under 40,” she says. “Retailers have to be technology savvy. Ev-eryone has a phone in her back pocket. You can compete with businesses like Pottery Barn and other e-commerce sites or you can let them steal away customers.”

FEATURED MANUFACTURERS

Here's how to get in touch with this month's manufacturers.

Coaster Fine Furniturecoasterfurniture.com | 877.262.7837

Maxwood Furniture Inc.maxwoodfurniture.com | 203.916.2075


Six Answers is a monthly pro� le of a Next Generation Now member. Next Gen Now is an NAHFA-hosted community of young industry professionals whose mission is to give voice to the needs and goals of the industry’s next wave of leaders. Connect with members at nextgenerationnow.net or Twitter @ngnow.

NEXTGENPROFILE The Search Is OverSoftware for Furniture Retail Growth

1.888.4.STORISwww.STORIS.com

“Building customer satisfaction is vital to our company’s growth. We service what we sell so

STORIS’ integration between point of sale and customer service allows us to seamlessly

manage the important parts of our business and drive brand loyalty.”

Dale & Sherry Sheely Client Since 1994

Six Answers WithDorian Stacy Sims

My dad sold furniture to mom-and-pop stores in Texas, New Mexico, Arkansas, and Oklahoma. I was working for an estate attorney and was miserable. One day I said to myself, ‘You know what? Your parents need you.’ � ey didn’t think so at the time, but I knew they did. I remember writing them a letter promising them I would be nice, play well with others and behave and they totally fell for it.

� e climate wasn’t there for talking to your peers. I went to market for years with my dad in Dallas when the Dallas market was all furniture. You would see people in the hallways and the conversations were “Hi” and “How you doing?” But nobody ever asked, “How’s your business?” or “Can you help me with a problem I’m having?” � at’s what I like about Next Gen. It’s all about making connections and once you make those connections, it’s easy to pick up a phone and call someone to ask for help.

Communication is important. So many busi-nesses in this industry are family businesses and I suspect the silent treatment is used whenever a problem comes up. I don’t deal with it that way. Life’s too short. We talk and we � nd out what needs to happen to move forward.

I’m a strong woman. I was raised by strong women. I never got into this business because I wanted to show what a woman could do. I got into it because I knew I could contribute.

An open mind is something our industry has struggled with. Putting honest and open conversations out on the table was something that wasn’t happening 10 or even � ve years ago because when you got a bunch of men in a room it seemed like whatever politics were go-ing on at the time or whoever was afraid of hurting some-one else’s feelings—those always seemed to get in the way.

I’m 45 years old. I’m not your average Next Generation member. But I think I bring a maturity factor and 22-plus years of experience to the organization. I’ve learned the hard way what works and what does not work and I’m willing to share it.

Dorian Stacy Sims Stacy Furniture & Design

Dallas, Texas

I never got into this business because I wanted to show whata woman could do.I got into it because I knew I could contribute.

RetailerNOWmag.com JULY | 2015 25

The Search Is OverSoftware for Furniture Retail Growth

1.888.4.STORISwww.STORIS.com

“Building customer satisfaction is vital to our company’s growth. We service what we sell so

STORIS’ integration between point of sale and customer service allows us to seamlessly

manage the important parts of our business and drive brand loyalty.”

Dale & Sherry Sheely Client Since 1994


10 Tips for Getting

More from Your Current

Customers

1Offer more products and services. I don’t mean you should stock 75 recliners instead of 50. Take a good look at the products you offer. If your recliners top

out at $999, try adding a $1,299 or $1,599 option. When I owned a store, we started with mostly promotional recliners; our most expensive was probably $799. We found, however, that our clients wanted more. We added a higher-end line and our recliner tickets shot through the roof. We never thought we could sell recliners at $1,500 or $2,000, but we did. High-end line numbers quickly outpaced the more promotional. Offering good, better, best choices is a win/win.

2 Communicate more often. When a retailer subscribes to my newsletter, I immediately check out their website and sign up for their emails. Do you know how many

communications I get? Not many. What a waste. You need to communicate with your customers and prospects more often, at least once a month. If you’re getting good open rates, go to twice a month or more.

3 Reward frequent purchasers. Offer something extra to your special clients—the possibilities are endless. The extra could be as simple as free delivery or appointment deliv-

ery, a gift with purchase or even a gift card for a free dinner at a local restaurant you’ve partnered with. Have a contest and see how many ideas your staff can come up with. Let the reward be a surprise; spring it on her as you’re writing up the sale. “Mrs. Jones, because this is your second purchase with us, you get free delivery.” What’s least expected is most appreciated.

4 Reward high volume purchasers. I have no idea what your average ticket might be, but let’s say a new client comes in who wants to furnish her entire house, or she spends

$9,000 (or whatever threshold you establish). This customer deserves a reward. In my store I often used an Omaha Steaks gift package or a weekend for two at a nearby resort. Be creative.

By David Love

If a new client who buys a $499 recliner is actually worth $5,000 in business, doesn’t it make sense to implement strategies to keep her

coming back? Here are 10 tips that will help you get the rest of her

business.


5 Create a VIP Membership Club. Customers can join the club with a monthly fee that gets them enhanced privileges whether they make a pur-chase or not. When she is ready to purchase, you might send a limo to pick

her up and bring her to the store. She might be able to make an appointment so she is assured of undivided attention, even after hours. Membership could include an annual Members’ Reunion, BBQ, or box seats for a sporting event. Think about your customer demographic and what appeals to them.

6 Learn more about your best clients. Tailor offers to match. Have a New Client information sheet. “Interview” new clients to learn all about them. Find out about their family, what clubs they belong to, where they play golf,

where they like to vacation, what kind of car they drive. Will everyone give you all this information? Of course not, but if you explain the benefit to them (families with children could receive specials on children’s furniture, for example) they’re more likely to provide it. With today’s technology it’s pretty simple to do. But even if you’re a small store with a small marketing budget, you can still do it manually.

7 Personalize your client communications. People buy from people they know and like. My email subscribers know a lot about me. I’ve spent most of my adult life in the home furnishings business. I’ve been a rep, a store

owner and a sales manager. I lived most of my life in California and now in South Carolina. I have a new grandson and I’m a big Giants fan. I’m not just some anonymous guy out there who sends emails. We have a relationship. Build one with your clients. Do you think you’d want to work with me, if all I ever sent you was an occasional offer? Hardly! Let your clients get to know you as a person.

8 Communicate consistently. When I sign up for a store’s newsletter, what I normally receive is hit and miss at best. It’s obvious they have no one tasked with sending consistent emails. Engage your readers. In one of my

client newsletters I told the story of the first recliner. I told of the history behind the phrase, “Sleep tight. Don’t let the bed bugs bite.” Whatever the topic, make it relevant and interesting.

9 Become ‘The Place’ for them to buy what they want. Every store has its own culture—make sure yours is an exciting, rewarding experience for your clients. Raise the perceived value of what you sell by providing an exception-

al experience. This starts with talking about this in your ads. If you’re one of my subscribers, you know I’m a broken record on this, but every store in the country has 50-percent-off sale and up to six years free financing. What are you offering that sets you apart?

10 Periodically ask your clients what else they want and would buy. I would add that you should be asking every guest the same question: What’s next on your want list? When you have this information you

can make her offers that dovetail into her wants. Give her what she wants, not what you think she want or that you want to sell.

David Love helps retailers boost ad response and slash ad waste. For a copy of “5 Success Steps to Creating Advertising that Sells Furniture and Makes You Money,” visit www.lovefurnitureprofits.com. .David can be reached at [email protected].


Let Us Help YouGrow Your Business

The NAHFA Retailer Resource Center isthe market destination for cost-saving

services, free seminars, and a break fromthe crowds. With the single purpose of

providing you access to the tools andopportunities to do better business,a visit to the RRC just might be yourmost valuable market appointment.

We have the seeds of innovationand inspiration to help you grow.

Building B-1050

www.nahfa.org

Free Se

minars

Tools

HELP

YOU

THAT

GROW

Re�e

shme

nts

Operations

Financing Marketing


Along with the many business service providers showing in the Retailer Resource Center, NAHFA is proud to feature Endorsed Program Partners. When researching your next partner, look for the Endorsed Program icon for exclusive NAHFA member discounts and/or services.

Las Vegas Market - August 2-5, 2015Showroom B-1050

Access From Building C

Elevators &Escalators

RRC

Access From Building A

Retailer Resource Center Floor Plan

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Buyers’Lounge

SeminarRoom

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EXHIBITORDIRECTORY

ADVERTISING/MARKETING/WEBSITESACA/Advertising Concepts of America .. 11

Knorr Marketing .....................................5

MicroD, Inc. ..........................................16

Mail America ..........................................3

Moso Graphics .....................................40

TruckSkin, LLC .................................38

BUSINESS CONSULTINGFurnitureCore/ImpactConsulting ..........20

The Furniture Training Company ............6

JRM Sales & Management ..................... 7

Profi tability Consulting Group ..............30

Sustainable Furnishings Council .......... 41

FINANCIAL SERVICESBristlecone Financing ...........................25

Credit Source Finance ............................8

Cross Check ....................................28

EasyPay Finance .................................. 37

Genesis Financial .................................35

LendPro LLC ......................................1

Synchrony Financial ........................14

TEMPOE ...............................................23

Tidewater Finance Company ..................4

Trekstone Financial .........................26

PRODUCTSBest Buy for Business ............ Net Center

Crexendo .........................................8

Guardian Protection Products ......... 2

NAHFA ...................................... 31

Sears Hometown Stores ............... 24

Service Lamp Corporation ............ 27

SOFTWARECustom Design Software .............. 12

Furniture Wizard ............................ 15

Genesis Software Systems ...........29

FurnServe ......................................10

Myriad Software ............................ 17

PROFITsystems, Inc. .....................13

STORIS..........................................18

WAREHOUSE & DELIVERYClear Destination .............................9

Diakon Logistics ............................33

DispatchTrack ............................... 34

DSI Delivery ...................................19

Rush Medium Duty Truck Center ..39

Speedy Delivery LLC .....................36

United Steel Storage (USSI) .......... 21

INSURANCE & WARRANTIES Association Insurance Services ... 32

Risk Assurance Partners, LLC ........ 22


August 2-5, 2015 - Showroom B-1050

Compliments of the North American Home Furnishings Association

NAHFA Seminar Seriessponsored by:

Sunday, August 27:30–8:30 a.m. Implementing A Productivity Improvement Program Brad Huisken, IAS Training

8:30–9:30 a.m. The Milestone Millennials: A $600 Billion Opportunity You Can’t Afford to Miss Bob Bradley, Netsertive

10:00–11:00 a.m. Maximizing Sales Performance Joe Milevsky, JRM Sales & Management, Inc.

11:30 a.m.–12:30 p.m. Safeguarding Your Company’s Trade Secrets: Best Practices Pascal Benyamini, Drinker Biddle & Reath LLP

1:30–2:30 p.m. Learn How to Use In-Store Technology to Boost Sales and Attract More Customers

Dan Wieczorek, Best Buy for Business Casper Fopp, Wondersign

3:00–4:00 p.m. 10 Ways to Boost Business Philip Gutsell, GutSELL & Associates

4:30–5:30 p.m. Get the Whole Team on the Profi t Bandwagon John Egger, Profi tability Consulting

Monday, August 37:30–8:30 a.m. The Social 7: Proven Strategies for Social Media Success Crystal Vilkaitis, Crystal Media

9:00–10:00 a.m. Jerry Epperson’s Industry & Economic Outlook

W.W. “Jerry” Epperson, Jr. C.F.A., Mann, Armistead & Epperson, Ltd.

10:30–11:00 a.m. Showing More Means Selling More Patrick Bain, NAHFA DataLink

11:30 a.m.–12:30 p.m. Supercharge Your Operation with GMROI David McMahon, PROFITSystems

1:30–2:30 p.m. Retailers ZERO Moment of Truth! Doug Knorr, Knorr Marketing

3:00–4:00 p.m. Great Expectations: Give Your Shoppers a Great Online Experience

Jesse Akre, MicroD Inc.

4:30–5:30 p.m. ITIM America /US Mexico Consulting Salvador Apud

Tuesday, August 48:30–9:30 a.m. Analytics to Maximize Sales and ROI David Liebskind, Synchrony Financial

Premier Partner:

10:00–11:00 a.m. What Really Happens on Your Sales Floor: Optimize the Shopper’s Journey

Rich Kizer & Georganne Bender

11:30 a.m.–12:30 p.m. Protection Plan Category Management and Retail Performance

Tony Cerino, Guardsman, a division of Valspar

1:30–2:30 p.m. NEW Affordable Retail Design Trends & 2016 Color Trends Connie Post, Connie Post Affordable Design

3:00–4:00 p.m. 5 Dramatic Advertising Breakthroughs that Will Make You Money David Love, Love Furniture Profi ts

Wednesday, August 58:30–9:30 a.m. Produce Measurable ROI with Software

Driven Effi ciencies Kyle Mulvaney, STORIS

10:00–11:00 a.m. Final Mile Home Delivery - Important Trends David Whitley, DSI Logistics

11:30 a.m.–12:30 p.m. Building a Social Media Community that Builds Your Brand, Your Store Jeff Evans, Social Dealer Connect

LAS VEGAS MARKET SEMINARS


SUNDAY, AUGUST 27:30–8:30 a.m.Implementing a Productivity Improvement ProgramBrad Huisken, IAS Training

Brad Huisken will lead owners and managers through a fun and motivational seminar on how to implement a productivity im-provement program. He’ll discuss the five benchmarks for produc-tivity improvement along with detailing non-negotiable sales and customer service standards, training techniques and his training checklist for sales people and sales managers. In today’s sales environment the only thing that separates one company from its competition (other companies, the Internet and other places where people are spending their disposable income) is its people.

8:30–9:30 a.m. The Milestone Millennials: A $600 Billion OpportunityRetailers Can’t Afford to MissBob Bradley, Netsertive

Young adults, in their late 20s and mid 30s, are reaching milestones in their lives—starting a family, buying their first home and even a new car. Are brands equipped with the proper marketing messages and strategy to target the Milestone Millennial and the estimated $600 billion they’re expected to spend this year? For this presenta-tion, Bob Bradley, vice president of sales at Netsertive, will present ways for attendees to take advantage of the Milestone Millennial opportunity and how they can better market their products online to this generation. This presentation is written for product brand marketing managers, small business marketers and owners who are impacted by day-to-day marketing challenges in an evolving digital world.

10:00–11:00 a.m.Maximizing Sales PerformanceJoe Milevsky, JRM Sales & Management, Inc.

When hiring new employees, what traits and skill sets should you be on the lookout for? Where do you find top candidates and, once you find them, how do you recruit them? What should you do to ensure their success? How can you hold them accountable with-out discouraging them? How do you best reward them financially and, just as important, emotionally? If you mange or hire people, join Joe as he answers these questions and more. People buy from people not stores, so help to ensure that each customer interaction has the greatest potential for a successful transaction.

11:30 a.m.–12:30 p.m.Safeguarding Your Company’s Trade Secrets: Best PracticesPascal Benyamini, Drinker Biddle & Reath LLP

Your top sales rep just left your company to join a competitor. Are your company’s trade secrets safe? Do you have a plan in place to protect valuable trade secrets, especially with the increasing use of social media? Are non-compete, customer and employee non-solici-tation agreements enforceable? This best practices seminar will pro-vide you with tips on how to safeguard your company’s trade secrets, develop effective corporate policies, confidentiality and property protection agreements and recruit from competitors without being sued. If you manage or hire people this seminar is a must.

1:30–2:30 p.m.Learn How to Use In-Store Technology to Boost Sales and Attract More CustomersDan Wieczorek, Best Buy for BusinessCasper Fopp, Wondersign

Learn how easy it is to display your entire inventory even in a small showroom. Both customers and sales teams love using touch-screen kiosks to view your entire catalog—not just what’s physically available in the showroom. Dan Wieczorek and Casper Fopp will showcase in-store technology that puts your business ahead of the competition. Learn the value of digital in-store advertising in combination with endless aisle kiosks to generate a richer customer experience. Come try out this exciting touch-screen technology and find out how simple it can be to transform your showroom.

3:00–4:00 p.m.10 Ways to Boost BusinessPhilip Gutsell, GutSELL & Associates

Philip Gutsell shares 10 strategic ways to improve your overall retail business and show you how to identify and fix weaknesses. Each method will be analyzed and examined so you can develop a clear plan to recharge your business. You’ll be better equipped to moni-tor your business and bring more profit to the bottom line. Learn incremental steps that will not only increase your market, but also grow your bottom line.

4:30–5:30 p.m.Get the Whole Team on the Profit BandwagonJohn Egger, Profitability Consulting

Profit is a beautiful word. This seminar will give you new ideas with tried-and-true systems to get your entire team thinking PROFIT! This could be your most profitable hour at market. John Egger has helped nearly 1,000 companies increase their bottom lines and he’s ready to help yours.

Showroom B-1050

NAHFA’s Retailer Resource Center


MONDAY, AUGUST 37:30–8:30 a.m.The Social 7: Proven Strategies for Social Media SuccessCrystal Vilkaitis, Crystal Media

Do you feel using social media for your business is more frustrating than fruitful? Social media expert Crystal Vilkaitis and her team at Crystal Media can make social a snap with The Social 7. You’ll learn things like what it means to be a “Go-Giver” and the effect it will have on your marketing, what type of content prompts action, and how to get customers to see you as a credible business. Her team will go over the seven best strategies for using social media to grow your customer base and build relationships with customers. You may even get a few bonus strategies, like Facebook ad best practices. Stop feeling frustrated and start having fun promoting your busi-ness online.

9:00–10:00 a.m.Jerry Epperson’s Industry & Economic OutlookW.W. “Jerry” Epperson, Jr. C.F.A.,Mann, Armistead & Epperson, Ltd.

The economy, housing and consumer attitudes have not been this positive in seven or eight years. What does this mean to our industry? How long can it last? Have we forgotten how to operate in periods of good business? There is a different mind set working in an upbeat economy from the hunkered down, cut-cost, stay lean, survival mentality we have been in for so long. Industry guru Jerry Epperson thinks a lot of stores have not recognized the change.

10:30–11:00 a.m.Showing More Means Selling MorePatrick Bain, NAHFA DataLink

Are you missing sales opportunities at your fingertips? Consumers are fascinated with technology. Touch-screen kiosks, tablets and more allow your sales team to show more and sell more. No longer limited to what is on the floor, an entire e-catalog is just the touch of a button away putting you at a competitive advantage. Join us and find out how having easy access to more data will greatly im-prove your in-store sales opportunities, your POS system, and your online presence, freeing up your team to be doing what they were really hired to do.

11:30 a.m.–12:30 p.m.Supercharge Your Operation with GMROIDavid McMahon, PROFITSystems

In this seminar, David McMahon will show you how you can increase cash flow by using gross margin return on inventory mea-sures, tools and techniques. The metrics and processes he’ll discuss have been time tested and field proven. Whether you’re a GMROI operational veteran, rookie or somewhere in between, this seminar will make you and your business better.

1:30–2:30 p.m.Retailers ZERO Moment of Truth!Doug Knorr, Knorr Marketing

Google’s 2011 eBook coined the term “Zero Moment of Truth.” The focus was on the consumer buying process. In this high-energy seminar Knorr Marketing’s Doug Knorr, and Dan Kolle, will define

the “Retailers Zero Moment of Truth” and how to hold it account-able through an integrated marketing and advertising plan that will increase store traffic, gross margins and profitability.

3:00–4:00 p.m.Great Expectations: Give Your Shoppersa Great Online ExperienceJesse Akre, MicroD Inc.

You only have 10-20 seconds to impress your website visitors—are you giving them what they want and a reason to stay? And more importantly, buy? Having a strategy for pricing, product branding, and target marketing are critical elements in making your online showroom a hub for potential customers. Learn from industry experts how to give shoppers a powerful online experience when we discuss best practices for online pricing, pros and cons of hide-and-seek, risks vs. rewards of displaying brand names, and driving traffic through online promotions and target consumer campaigns.

4:30–5:30 p.m.Cross Cultural Sales, Negotiations & Team BuildingSalvador Apud, ITIM America /US Mexico Consulting

Salvador Apud has been training Fortune 100 companies for 22 years on how to utilize culture to improve their environment. This interactive seminar trains you to work effectively and confidently despite differences in culture and experience with customers, ven-dors and team members. The training highlights the significance of other cultures’ modus operandi, assumptions, reactions, expec-tations and behavior to assist you in providing your customers, vendors and team members with effective service aligned to their cultural expectations and motivations. You will learn through the use of multiple methods including cognitive learning, case studies and lively and entertaining, inter-cultural discussions.

TUESDAY, AUGUST 48:30–9:30 a.m.Analytics to Maximize Sales and ROIDavid Liebskind, Synchrony Financial

This presentation will focus on a series of case studies that highlight how analytical insights can be leveraged to drive better investment and marketing strategies for retailers to maximize sales, increase cus-tomer retention and grow profitability. Case studies include: media mix optimization, customer segmentation, store optimization mod-eling, next likely purchase models, and store location analysis. Learn how analytics can help retailers differentiate, grow and improve company performance through actionable insights and strategies.

10:00–11:00 a.m.What Really Happens on Your Sales Floor: How toOptimize the Shopper’s JourneyRich Kizer & Georganne Bender

The face of retail is changing faster than we can comprehend. Customers want what they want, when they want it, the way that they want it. The future of retail is here. Are you ready? Join Rich Kizer and Georganne Bender and learn how to identify your store’s Moments of Truth, (the areas and impressions that can number 25 plus during a typical store visit); how to use enablers to create

NAHFA’s Retailer Resource Center - Seminar Descriptions

Premier Partner:


a positive in-store experience; how to eliminate the inhibitors (the “pot holes” that hide in plain sight on your sales � oor and discourage shopping); how to choose the right layout for your sales � oor; how to encourage shoppers to spend more using speed bump displays, power walls and cross-merchandising and other merchandising techniques like a pro!

11:30 a.m.–12:30 p.m.Protection Plan Category Managementand Retail Performance Tony Cerino, Guardsman, a division of Valspar

You have a great product and all the right marketing, but is your program getting traction at retail? Management support and pro� t incentives often come at the expense of a quality consumer experi-ence. Poor execution at retail can kill even the best programs. � is program will show you how to:

• Accelerate pro� t growth while enhancing the consumer expe-rience.

• Identify program opportunities and gaps—Where are you now? Where should you be?

• Optimize the protection plan program—plan, pricing and best practices.

• Execute at retail—make it work on the sales � oor.• Leverage data to enhance the customer experience.• Meet long-term goals through analytics that drive continuous

improvement.

1:30–2:30 p.m.New, A� ordable Retail Design Trends& 2016 Color TrendsConnie Post, Connie Post A� ordable Design

New ideas in retail store design and consumer trends will be the fo-cus of this fast-paced presentation by retail design and brand strate-gist Connie Post, an authority in retail design. Connie will share a case study of HOM Furniture in Minneapolis, Minn. where she successfully merged three brands and price points under one roof. She’ll explore Pantone’s 2016 color trends for the home and discuss the latest in what customers are looking for today. Always full of passion for the industry, Connie will dazzle you with the latest and greatest, be prepared to hold on to your seats for a fascinating look of all that is new in retail today!

3:00–4:00 p.m.5 Dramatic Advertising Breakthroughsthat Will Make MoneyDavid Love, Love Furniture Pro� ts

Whether your competition is the guy across town, the big boxes or both, no amount of price cuts or long free � nancing is ever enough to beat them. You can’t out discount them. You can’t out free � nance them. What you can do is apply � ve dramatic breakthroughs that will get you out of that rat race. Learn how to stand out from your com-petition, how to sell in your ads like you do in your store, why stories are important, how to create content-rich ads that people respond to, and much, much more. � is dynamic session is a must for anyone who using advertising to promote their business. Bring one or two ads, post card or � yers. David will sit down with you after his talk and give you some pointers and tips for improvement.

WEDNESDAY, AUGUST 58:30–9:30 a.m.Produce Measurable Return on Investmentwith Software Driven E� cienciesKyle Mulvaney, STORIS

Retailers do not buy inventory and then sell it for a loss. � at in-ventory is purchased to drive revenue and pro� t. Nor should retail-ers buy software unless it too drives revenue and pro� t. It is critical to understand how technology driven operational e� ciencies can deliver dependable and, most importantly, measurable return on investment (ROI) results throughout your organization. Explore how to measure positive ROI results in the areas of sales, opera-tions, � nance, inventory, logistics and merchandising and turn any software purchase into an investment.

10:00–11:00 a.m.Final Mile Home Delivery—Important TrendsDavid Whitley, DSI Logistics

One of the most important aspects of your delivery team is the lasting (positive) impression they leave with every one of your cus-tomers. Join David Whitley to learn delivery trends for tomorrow. Apple Watches for delivery teams? Possibly. Learn what tools can help account for time and resources and � nd out about co-employ-ment; processes, behavior and laws that can protect your business.

11:30 a.m.–12:30 p.m.Building a Social Media Communitythat Builds Your Brand, Your StoreJe� Evans, Social Dealer Connect

Join Je� Evans for this step-by-step guide to growing an online, local army of advocates for your brand—your store. Learn how to develop high-quality content for speci� c media platforms—content that tells stories and covers your community in a way that results in conversations with people who don’t even realize they will be a customer, a store ambassador or both. He will discuss a two-part step that is virtual actions that result in real world actions. � e end result is a trusting, engaged community that ultimately drives sales.

NAHFA’s Retailer Resource Center - Seminar Descriptions

NAHFA Seminar Seriessponsored by:


BENEFITFOCUSMORE Programs – MORE Benefi ts – MORE Savings

Why go it alone? NAHFA gives you access to low EVERY DAY fi nancing rates through Synchrony Financial, whose EVERY DAY fi nancing rates are based on over $400 million+in annual volume.

Program Benefi ts:

Members only prefered rates.

Open-to-buy reports & consumer sweepstakes to get customers back into your store. Sponsored by Synchrony Financial

Call (800) 422-3778to take advantage of this valued

member program

Come visit us atLAS VEGAS MARKET

Booth #14 in the Retailer Resource Center(Showroom B-1050)

1.99% 12 Month Financing from August 1-31, 2015.

MonthlyFinance RateBuy-Downs forthe Rest of 2015!

NAHFA Preferred Partner

membership marketplace_Synchrony_Aug2015.indd 1 6/26/2015 4:24:50 PM

Spend Your Timeand Money WiselyDiscover the Savings behind our Office Depot Program

By Kaprice Crawford

W e all know time is money, so why not make the most of your time and money? The North American Home Furnishings Association has joined forces with National Commerce Group (representing more than

600 associations) to get our members the deepest discounts pos-sible from Office Depot.

With this group buying power you’ll receive discounts off the entire catalog (saving money) and you can buy everything from office supplies and business cards to janitorial supplies online (saving time). NAHFA’s program through the Business Services Division of Office Depot can cut the cost of your purchase order by as much as 75 percent by reducing steps and streamlining the process and eliminating the need (and wasted time and gas) to leave the office.

As an NAHFA member, here are just a few of the benefits you’ll receive from online purchasing through your membership program:

• Live Inventory Status (real-time inventory viewing of all Office Depot distribution centers based on your shipping location).

• 18 months of easy-to-find order history and tracking online.

• The ability to build both personal and company-wide custom shopping lists containing best-value items, favorites, frequently ordered items, etc.

• Browse Office Depot’s catalog of more than 15,000 items online.

• Twenty-four hour delivery. Place orders of $50 or more before 5 p.m. and receive your merchandise the next business day.

Office Depot has introduced its own line of office products—which helps you save even more money. The Office Depot line of sup-plies is the perfect solution to help you save money on the products you use every day without compromising quality and reliability.

Office Depot went straight to the source—the world’s largest manufacturers of office supplies—and leveraged its $12 billion buy-ing power to guarantee a quality line of office products that won’t break your budget.

Office Depot brand products are some of the most popular items in your office, from ink and toner, to tape, envelopes, pens, paper clips, scissors, staples, paper—all backed by the company’s 100 per-cent satisfaction guarantee.

You can also go green with Office Depot—it has more than 10,000 eco-friendly products. In today’s business world, green is becom-ing more popular and affordable than ever. So if you’re considering greener choices, Office Depot makes it simple to find them. Just look for the leaf icon online or in the Office Depot catalog.

And by going green, you’ll not only be helping the environment, you’ll also be helping your wallet by utilizing your member benefit to help reduce your expenses on office supplies.

If you are a member of the North American Home Furnishings Association, you’re already set up in the program. All you need to do is contact Kaprice Crawford, NAHFA membership director to learn how to start saving on your store’s office supplies.

Kaprice Crawford is NAHFA’s membership director and can help NAHFA members with many ques-tions or problems they encounter in their jobs. Contact Kaprice at 800.422.3778 or [email protected].

SAVINGS SURPLUS Members can take advantage of NAHFA's buying program with Office Depot to save money on more than 15,000 products.

MORE Programs – MORE Benefi ts – MORE Savings

Why go it alone? NAHFA gives you access to low EVERY DAY fi nancing rates through Synchrony Financial, whose EVERY DAY fi nancing rates are based on over $400 million+in annual volume.

Program Benefi ts:

Members only prefered rates.

Open-to-buy reports & consumer sweepstakes to get customers back into your store. Sponsored by Synchrony Financial

Call (800) 422-3778to take advantage of this valued

member program

Come visit us atLAS VEGAS MARKET

Booth #14 in the Retailer Resource Center(Showroom B-1050)

1.99% 12 Month Financing from August 1-31, 2015.

MonthlyFinance RateBuy-Downs forthe Rest of 2015!

NAHFA Preferred Partner

membership marketplace_Synchrony_Aug2015.indd 1 6/26/2015 4:24:50 PM


SURVEY SAYS…Sales are up and expenses are down, based on initial observa-

tions of the 2015 NAHFA Retail Performance ReportBy David McMahon

For the � rst time in eight years the North American Home Furnishings Association, along with PROFITsystems, has conducted an industry-wide retail performance survey. We did this to help educate furniture retailers on key performance indicators so you can bench-mark yourselves and set the stage for improvement in your stores.

Below is a glimpse of a few of my initial observations from the data submitted to us in 2015, and how things have changed since 2007. � e actual results and 2015 report will be distributed to participants and available for purchase from the NAHFA for non-participants. � ank you to all the retailers who contributed their time and information to make this possible.

UPSales

UPGross Margin

DOWNOperating Costs

• All operating costs as a percent of sales, excluding cost of goods sold, have decreased as a percent of sales both on average and for top performers.

• � is shows that revenues on average have been increasing faster than all costs.

UPInventoryGMROI

• On average, organiza-tions reported an increase in volume nationwide from their performance the previous year.

• � e increase from 2013 to 2014 was substantially higher than the half a percent increase reported from 2006 to 2007.

• Gross margin percent of sales increased both on average and for high-per-forming businesses.

• � is is a good sign that retailers are not submitting to pressures of lowering margins with increasing competition from online and brick-and-mortar sources. � e industry is innovating.

UPNet

Income

• With sales up, gross mar-gin up and operating costs down, net income as a percent of sales is obviously increasing.

• � e industry has weeded out many marginal per-formers in the past eight years due, in large part, to the great recession. Many stores are now stronger in their respective marketplaces.

UPInventory

Turns

• Turns is the number of times average inventory is sold at cost in a one-year period.

• Inventory turns on average eight years ago was reported as 2.8 times and 3 for high performers. Initial � ndings show an increase here for both.

• With both gross margin and inventory turns being up, the gross margin return on inventory (GMROI) investment has risen.

• � is means that retailers are becom-ing better managers of their inventory industry-wide.

UPCash Flow

• In the 2015 Retail Perfor-mance Report, we evaluate several cash � ow measures including current ratio, quick ratio, and cash ratio. It is no surprise that due to the performance of the above indicators, cash � ow is up in the industry.


More Than 50 Performance MeasuresIn the 2015 NAHFA Retail Performance Report, we will release the exact results of the average and top performers. Additionally,

many other detailed industry key performance indicators will be explained, including:

• Sales performance: sales to plan, sales change, average sales, close rate, revenue per selling opportunity• Department operating costs percent of sales: administrative, occupancy, advertising, selling, warehouse, delivery, service, � nance• Balance sheet weighting percent of assets: cash, inventory, accounts payable, deposits, other debt• Marketing mix by media type• Salary mix by department• Personnel productivity: sales per employee by department• Floors space productivity• Inventory performance • Top challenges for retailers

For information about obtaining the 2015 NAHFA Retail Performance Report, please visit www.nahfa.orgor call your membership representatives at 800-422-3778.

• Delivery Truck Graphics • Vehicle Wraps• Window Graphics • Wall Graphics • Floor Graphics

TruckSkin.com Serving the USA and Canada

FREE

Quotes!

Call Us!!

More EYES = More BUYS!!877-866-7546

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• Delivery Truck Graphics

David McMahon, CMA, is director of consulting andperformance groups at PROFITsystems, a HighJumpCompany and is a certi� ed management accountantand management consultant. He can be reached [email protected].


There is a commonality mattress retailers share with companies like Apple, Whole Foods, Star-bucks, Nordstrom’s, Zappos

and Lexus: They all deal with products that most consumers use everyday.

Computers, phones, food, coffee, clothes, shoes, cars and, yes, mattresses. While some manufacture their own products, each one of these companies sells directly to consum-ers.

The good news for them, and retailers, is there will never be a shortage of customers. The bad news, of course, is there will never be a shortage of competitors. With enormous pies come enormous appetites. Everyone, it seems, wants a piece.

The challenge for mattress retailers may be even greater because the product itself allows little room for differentiation and innovation. It’s just a fact that compared to most other consumer items mattresses are constrained by rigid parameters. Every manufacturer makes the same basic sizes, twin, full, queen, king, and uses the same basic ingredients, wood, steel, foam, fibers and fabrics.

To those of us in the industry, we under-stand the incredible evolution and com-plexity of our products, but to the average shopping consumer, a bed is pretty much a bed.

When everyone is competing in the same arena with comparable products, what can retailers do to compete?

The answer can be found by examining what is it about the previously mentioned companies that has allowed them to rise to the top in their respective crowded catego-ries?

First let’s consider what each has in com-mon: All offer quality products. All provide unique, enticing and even fun environments to present their products. All use compel-ling lifestyle imagery to communicate their messages to consumers. All strive to create exceptional buying experiences for the customers. All have exceptional customer-friendly service policies and practices. None focuses on discounting or sales as the main driver of their business

But we all know there are a number of awesome companies in every category that

adhere to these principles. So there must be another intangible that elevates companies to the highest levels. It’s their culture.

All companies have a culture. But the top ones create and groom a culture conducive to success. In most every case, these compa-nies have a team-based rather than manage-ment-based culture, where the employees participate in the process and have a sense of ownership.

They believe in the products because they use them. They believe in the company because they feel a part of something bigger than themselves, they believe in what they are doing because the focus is on attract-ing and creating loyal, satisfied advocate customers.

Culture is defined as a way of thinking and living by a group of people. It is the behaviors, beliefs and values that the group accepts—generally without even thinking about them—that are passed along by com-munication and imitation.

Consequently, people like how they feel when they interact with these companies, because they interact with company ambas-

By Gerry Morris

Want to Sell More Mattresses?Creating a Culture that Makes Shoppers Want to Buy

Doesn’t Have to Be Hard Work.


Copyright 2015 Lynch Brothers Licensing Corporation

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Team-based cultures by their very nature entice shoppers to step into their world, feel as though they are a part of it, take a piece home, tell others and go back for more. In addition to creating loyal, passionate customers, they attract loyal passionate employees.

Team-based cultures require less manage-ment, increase productivity and create better relationships between employees and more importantly between the company and its customers.

Combined with the prerequisites listed above, creating a team-based culture is the element that can separate retailers from competitors. It’s the one thing they have the most control over and the one thing others can’t duplicate.

How do you cultivate a team-based cul-ture? Some suggestions:

Trade PlacesHave every employee spend time in every

department. Accounting people need to spend a few days in the warehouse. RSAs need to head out on a day’s worth of deliv-eries and vice versa. � e more employees get to know others in the company, what their job is and how it relates to theirs, the greater your culture will become.

Rotate every employee on to the sales � oor to see the ultimate fruit of their labor:

Shoppers visiting and buying mattresses. Introduce them to the shoppers. “We like for all our employees to visit with our customers. You are most important to all of us.”

Encourage ParticipationTeam-based cultures encourage participa-

tion from employees in every aspect of the business. While management ultimately makes the important decisions, valuable input with keen insight is added to the mix for consideration.

Schedule regular meetings with the sole purpose of seeking input, ideas and sugges-tions from all employees, not just the sales sta� . Have an open-door policy and a sugges-tion box to capture new creative ideas.

Allowing employees to participate in the decision-making process empowers them. Studies show that even if an employee does not get what they ask for if they felt their voice was heard and considered, it validates their worth.

Rally Around a MissionMattress sales can be and are for many re-

tailers the driving force behind their business. Help all employees understand the positive e� ects deep sleep on a quality mattress can make in people’s lives. Make it your mission to help as many people as possible choose to invest in quality mattresses for their bene� t. � is can be your contribution to the better-ment of society, at least in your trade area.

Sleep Walk Your TalkIn a previous column, I encouraged every

retail sales associate to invest in and sleep on a quality mattress. To create a compelling culture, expand that concept to all employ-ees. Encourage every employee to invest in a quality set.

Many companies have programs to help facilitate the purchase with discounts and payment options. � e result will be employees who are rested, happier and more productive. � ey’ll also be the best advocates for your products.

The Key to Success Emboldened shoppers know they can buy

mattresses from an increasing multitude of sources. With such little di� erentiation of products, few shoppers care where they buy. Retailers that want to separate themselves from the competition will never be able to use price, products or services alone. Every company makes such claims.

� e key is to create a culture that attracts shoppers and makes them want to buy!

Gerry Morris has more than 20 years experience in the mattress industry. Morris and the Furniture Training Co., o� er an online training course, “Sell More Mattresses with Gerry

Morris.” To view the course, visit furnituretraining-company.com.

Locations: Puyallup, WAMira Loma, CA • Morganton, NCFax: 828-764-4461 • Phone: 855-208-6377Email: [email protected]

Please contact Grant Laidlaw VP Sales at 778-549-3188 or [email protected] to review your transportation needs.

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Eric ClarkePresident

Eric ClarkePresident

Grant LaidlawVP of Sales

Grant LaidlawVP of Sales

www.NWFXpress.comwww.NWFXpress.comTo become an industry sponsor contact:North American Home Furnishings AssociationCall Cindi Williams @ 800.422.3778 | [email protected]

*List as of JULY 10, 2015

Premier SponsorsCoaster Company of America

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PROFITsystems, Inc. • R & A Marketing • Simmons USA

Gold/Silver SponsorsJaipur • Phoenix A.M.D. • Horich Hector Lebow Advertising

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Understanding Online Sales TaxBy Lisa Casinger

� e North American Home Furnishings Association and its members have been rallying support around the online sales tax issue for two years now. � e U.S. Senate passed the Marketplace Fairness Act in 2013 and it the House let it die. � e Senate reintroduced S. 698 this year and has urged the House to get on board this time. Below is a comparison of the online sales tax proposals. NAHFA encourages support of H.R. 2775 because it’s the best language put forth so far that makes the most sense for independent brick-and-mortar busi-nesses. Tell your legislators to contact Amber Kirby Talley, Rep. Cha� etz’ legislative director, at [email protected] to join the group of 25 bipartisan co-sponsors of H.R. 2775.

Comparing Proposed Online Sales Tax Acts Online Sales

Simpli� cation Act1Marketplace Fairness Act2

Remote Transactions Parity Act3

Parity at Point of Purchase(Regardless of Channel)

No. Hybrid Origin Sourcing Model—sellers will apply origin-based sourcing rules for remote sale, but destination-based sourcing rules for non-remote interstate sales.

Yes. Destination Sourcing Mod-el—uniform destination-based sourcing rules are applied to all transactions.

Yes. Destination Sourcing Model—uniform destination-based sourcing rules are applied to all transactions.

Small Seller Exemption

No small seller exemption. A small seller exemption of $1 million in annual nationwide gross remote sales.

A phased-out small seller exemption over three years. Year 1: gross annual receipts un-der $10 million; Year 2: gross annual receipts under $5 million; Year 3: $1 million. After Year 3, the exemption will be zero. Sales made via an online marketplace are not exempt.

Audit Procedures

Remote sellers may be audited by their home state taxing authority. A single audit is only allowed for a NOMAD4 state if the NOMAD state is not part of the distribution agreement.

One audit per state with the potential for a maximum of 45 audits per year (i.e. 45 states have a sales and use tax system).

Audits are conducted through the certi-� ed service provider (CSP). Eliminates state audits and demand letters for remote sellers under $5 million in gross annual receipts unless misrepresentation or fraud.5

Software Costs and Integration

No assistance is provided to remote sellers to comply with the additional collection and reporting requirements.

Provides software free of charge for remote sellers and potentially creates multiple state software systems. Integration costs are not included.

Allows remote seller to select its own software, the cost of which is paid for by the state. States' payment of set-up, installation, and maintenance costs is in-cluded. Software must work in all states quali� ed under the Act.

Liability The remote seller is liable for the tax that is not properly collected.

Relieves remote sellers from liability to the state or locality for incorrect collection, remittance, or non-collection of sales and use taxes if the liability is a result of error or omission made by a certi� ed software provider.

Ensures the certi� ed software provider, not the remote seller, is held liable for all regulation and compliance burdens un-less there is reasonable suspicion that the remote seller has engaged in intentional misrepresentation.

Economic Neutrality

Remote sellers would not col-lect the same tax rate or tax the same products as local sellers. The amount of tax collected from the consumer and taxabil-ity of products will di� er based on where the seller is located.

All consumers would pay their home state’s tax rate and on the same products, regardless of channel. All remote sellers would collect the same tax rate on a taxable item.

All consumers would pay their home state’s tax rate and on the same prod-ucts, regardless of channel. All remote sellers would collect the same tax rate on a taxable item.

1. House Judiciary Committee Chairman Bob Goodlatte (R-VA) and Rep. Anna Eshoo's (D-CA) Online Sales Simpli� cation Act draft bill released January 12 and revised April 15.

2. S. 698, The Marketplace Fairness Act, sponsored by Senators Michael B. Enzi (R-WY) and Dick Durbin (D-IL), was introduced on March 10, 2015.3. H.R. 2775, The Remote Transactions Parity Act, sponsored by Representatives Jason Cha� etz (R-UT) and John Conyers (D-MI), was introduced on June 15, 2015.4. NOMAD—Five states that do not collect sales and use tax. ” The list includes: New Hampshire, Oregon, Montana, Alaska and Delaware.5. All sellers can be audited where they have a physical presence consistent with existing law.

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OFNOTEHigh Point Market Officials ConsiderEliminating Last Day of Event

Retailers who have stuck around for the final day of the High Point furniture market know the scene often resembles a ghost town. Many manufacturers, vendors and retailers have gotten out of Dodge leaving showrooms and shuttle buses empty. All that’s missing are the tumbleweeds.

Directors of the High Point Market Authority want to change that. They’re expected to vote later this month on eliminating the final day from the market schedule, a move some officials hope will pacify two groups of buyers: Those who show up days before the market’s official Saturday opening and those who show up late only to find many manufacturers and vendors have gone home.

“It’s a compromise,” says Tom Conley, Market Authority president. “We’re hoping one solution will solve two problems.”

The start and end to High Point’s market has been a recurring complaint among retailers for years. Officially the market begins on a Saturday, but manu-facturers increasingly have opened their doors to some buyers days in advance.

That left buyers who showed up a few days after market’s official open-ing frustrated because they were locked out of distribution and product lines. Market dates was a key issue in April at a NAHFA-sponsored meeting between market officials and association members. Several NAHFA retailers asked the market authority to come up with a solution.

Market authority officials are caught in the middle of a problem that seems to grow every year. Authority officials can only announce official dates. Building owners control when to open their doors to buyers.

Conley said board members are adamant on not changing the market’s start-ing date. He said the Saturday-to-Wednesday proposal could save exhibitors who play by the rules some money by leaving a day earlier and that a shorter market week would keep more exhibitors in town.

Board members could vote on the proposal later this month or wait for the next quarterly meeting during market in October.

Jennifer Cory to Lead Cory's Board of Directors; Kevin Cory, Grandson of Founder, Rejoins Board

Jennifer Cory will lead Cory Home Delivery’s board of directors. Cory was unanimously voted to chair the board at the company’s recent board meeting. In addition, Kevin Cory rejoined the board of directors.

The moves to fill a vacant seat and name a chairperson followed the recent passing of Jennifer Cory’s father, Joe Cory Sr., who was chairman and CEO.

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FEWER DAYS High Point officials are debating whether to shorten the market dates starting in 2016 by eliminating Thursday, the last day.


OFNOTE

Got an item for Of Note? Send your information and hi-res photos to Robert Bell, [email protected].

Jennifer Cory is also the granddaughter of the company’s founder, Joseph Cory, and niece of former president James Cory.

She is a graduate of Monmouth University with master’s degrees in advanced clinical social work from Columbia University and ap-plied positive psychology from the University of Pennsylvania.

Kevin Cory, the grandson of founder Joseph Cory and son of the late James Cory, is rejoining the board. Kevin served as a managing partner of Cory from 2003 to 2010, when he decided to return to the financial industry, where he started his career.

Textile Designer Alexander WylyJoins Forces with Surya for New Line

Surya has partnered with Asheville, N.C.-based artist and textile designer Alexander Wyly to introduce an inspired new line of hand-crafted rugs. Intended to add a modern touch to traditional spaces, the spirited designs play upon the dynamic harmony between simplicity and complexity, the organic and geometric, ancient and contemporary.

The collections, which were unveiled at Atlanta Market, include Ridgewood, finely hand-tufted designs with rhythmic patterns accented by viscose and presented in sophisticated, natural hues; Lockhart, featuring a tight micro-loop technique to enhance bold, interlocking graphic forms; and Anagram, hand-tufted wool motifs with an energetic, undulating pattern created by the interplay of crisp geometric shapes.

“My aim is to infuse a sense of joy, wonder and beauty into peo-ple’s lives with home decor that playfully combines vibrant color, texture and pattern,” says Alexander Wyly, who gathers inspiration from a number of sources, including daily walks in the woods of the Blue Ridge Mountains, tribal art and his travels to India, Japan, Thailand and New Zealand.

Kevin Cory Jennifer Cory

Serving Members Across the Countrywww.aihfp.com(480) 656-3878

Program Advantage Buying Power Member Savings

AIHFP Ad 1-2pg_hort FINAL.pdf 1 7/2/15 8:45 AM

continued

INDUSTRYCALENDAR

Association Insurance(815) 479-0216http://aihfp.com/Page 45

Bolton Furniture(802) 888-7974boltonfurniture.biz

BoltonFurniture@BoltonFurniture

Page 23

Connie Post(304) 736-7283conniepost.comPage 44

Cresent(615) 975-4862cresent.com

Cresent.furniture@cresentfurniture

Page 15

Furniture Wizard(619) 869-7200furniturewizard.com

furniturewizard@furniturewiz

Page 9

ADINDEX


NAHFA-hosted regional events are highlighted in red.

The Las Vegas Market runs August 2-6.

Summer Las Vegas MarketAugust 2-6Las Vegas, Nev.lasvegasmarket.com

Inland Empire Furniture Dealers Golf TournamentAugust 19Worley, Idahonahfa.org

Tupelo Fall Furniture MarketAugust 20-23Tupelo, Miss.tupelofurnituremarket.com

Midwest Furniture ShowSeptember 2-3Arlington Heights, Ill.midwestfurnitureshow.com

Casual Market Chicago September 16-19Chicago, Ill.casualmarket.com

11th Annual Pilgrim City Golf TournamentSeptember 29North Stonington, Conn.nahfa.org

AHFA Solution Partners Education Golf TournamentSeptember 30Hickory, N.C.ahfa.us

AHFA Solution PartnersRegulatory SummitOctober 1Hickory, N.C.ahfa.us

Fall High Point MarketOctober 17-22High Point, N.C.highpointmarket.org

ShowtimeDecember 6-9High Point, N.C.showtime-market.com

High Point Market(336) 869-1000highpointmarket.org

http://tinyurl.com/ HighPtMarket

@hpmarketnewsPage 7

Lynch Sales(616) 458-6662lynchsales.com

lynchsales@lynchsales

Page 39

MicroD, Inc.(800) 964-3876microdinc.com

microdinc@microdinc

Back Cover

NAHFA Sponsors(800) 422-3778retailerNOWmag.com

retailernow@retailerNow

Page 40

NAHFA Products(800) 422-3778nahfa.org

NAHFA@NAHFA

Inside Back Cover

Northwest Furniture Xpress(828) 475-6377

nwfxpress.comPage 41

Pro� tSystems(800) 888-5565 pro� tsystems.com

PROFITsystems@PROFITsystems

Page 43

STORIS(888) 4-STORISstoris.com

STORIS.solutions@STORIS

Page 25

Surya(877) 275-7847surya.com

SuryaSocial@SuryaSocial

Inside Cover

Synchrony Financial(800) 422-3778 nahfa.orgPage 3

Tidewater Finance Co.(800) 535-4087 x6553twcs.comPage 19

Truckskin(877) 866-7546 truckskin.com TruckSkin @TruckSkinPage 37

Tupelo Furniture Market (662) 842-4442tupelofurnituremarket.com

tupelofurnituremarket@tupelomarket87

Page 5

Why Not Lease It888-WHYNOT-0whynotleaseit.com

WhyNotLeaseIt@WhyNotLeaseIt

Page 27

For information on how to advertise in

RetailerNow, contact Michelle Nygaard at

(916) 757-1160.


NOWLIST

MovingMade Easy

Designer Janne Kyttanen’s Sofa So

Good is a 3D-printed, lattice-structured lounge

chair that is coated in high-polished copper and chrome. The chair

weighs about 5 pounds.

Pricey PicassoAn anonymous buyer paid $179.36 million for Pablo Picasso’s 1955 painting, Les femmes d’Alger (Version “O”), making it the most expensive artwork ever sold at auction. The last time the painting was sold at auction was in 1997 it went for $31.9 million.

LGBT-friendly More than

45%of consumers under 34 years old say they’re more

likely to do repeat business with a lesbian, gay, bisexual, and transgender (LGBT)-friendly company.

Of them, more than

54%also say they’d choose an equality-focused brand

over a competitor.

Source: Google Consumer Survey

Tweet Tweet

98% of the top brands in the world

have a Twitter account

94% tweet at least once a day

70% were replies

24% were regular tweets and

6% were retweets

Source: Simply Measured

THE WAY WE WERE

Share your old photograph and memory by contacting Robert Bell at 916.757.1169 or [email protected]


The Lord works in mysterious ways. This was my first store in inner-city Detroit. I bought it in 1965 and the race riots broke

out in 1968. We were coming back from a company picnic when the police called us and told us what was happening. Two kids ran through the store with torches. They told us to stay away from the city. People who still had stores still standing were protect-ing them with shotguns, but ours was destroyed. The second floor collapsed into the basement. The funny thing is Muriel, my wife, ran a wedding gift store a few blocks away. She sold fine china and linen and all kinds of fancy gifts. Everything was in the big display window, but nobody touched it. Not a scratch. Like I said, mysterious ways.

Bernie Moray, Owner, Gorman’s, Southfield, Michigan

Warehouse & Operations Productsfor the Furniture Industry

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