Western Reporter—February 2009

Western Home Furnishings Association500 Giuseppe Court, #6Roseville, CA 95678

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Jou rna l o f the Wes te rn Home Furn i sh ings assoc ia t ion

sales and sales management

www.WHFA.org

westernreporterFebruary 2009

Contact WHFa at www.WHFa.org or (800) 422-3778. February 2009 3westernreporter

Pros and Cons of Layaway . . . . .12

New Media Marketing . . . . . . . .15

Working with Your Manufacturer Representives . .23

Your Association’s 2008 Achievements . . . . . . . .28

Sales Contests . . . . . . . . . . . . . . .33

Fast Forward — Family Business Mistakes . . . .36

EDITORIAL STAFF

MANAGING EDITOR: Melissa Dressler ............................... [email protected]

PUBLISHER: Melissa Robinson ........................................... [email protected]

2008 WHFA OFFICERS AND EXECUTIVE COMMITTEE

WHFA PRESIDENT

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

PRESIDENT ELECT

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

VICE PRESIDENT

Angel Lopez - Dearden’s, Los Angeles, CA .......................................(213) 362-9600

TREASURER

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

SECRETARY

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

EXECUTIVE COMMITTEE CHAIR

Keith Koplan - Koplan’s Furniture, Vancouver, WA ............................(360) 695-3388

PAST PRESIDENTS

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

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

EXECUTIVE DIRECTOR

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

AT LARGE EXECUTIVE COMMITTEE MEMBERS

Gary Absalonson - Walker’s Furniture Inc., Spokane, WA.................(509) 533-5500

Howard Haimsohn - Lawrance Contemporary, San Diego, CA ......... (619) 291-1911

Marvin Kerby - Kerby’s Furniture, Mesa, AZ ......................................(480) 834-3888

Lael Thompson - Broyhill Home Collections, Aurora, CO ..................(303) 360-9653

WHFA/NHFA LIAISON

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

WHFA BOARD MEMBERS

Gene DeMeerleer - Furniture West, LaGrande, OR ..........................(541) 963-5440

Patti Evans - Consignment Plus, Walnut Creek, CA ..........................(925) 927-6600

Greg Follett - Follett’s Furniture, Lewiston, ID ...................................(208) 743-0177

Eric Foucrier - Linder’s Furniture Mart, Garden Grove, CA ...............(714) 210-4848

Giff Gates - Gates Furniture, Grants Pass, OR .................................(541) 476-4627

Eric Harms - Black’s Home Furnishings, Yreka, CA ..........................(530) 842-3876

Karen Hatterle - Thomasville of Portland, Tigard, OR .......................(503) 863-3040

Ron Hoesterey - Royal Mattress Company, Inc., Orange, CA ...........(800) 987-6925

Paula Holt - Home Collections/Dining Collections, Salem, OR .........(503) 589-4358

Jerome James - Hafer’s Home Furnishings, Manteca, CA ................(209) 823-2122

Julian Jeppe - Reeds Furniture, Agoura Hills, CA .............................(818) 597-7800

Doug Kays - Premiere Home Furnishings, Los Angeles, CA ............. (310) 268-0811

Chuck Kill - Bedmart, Tucson, AZ ......................................................(520) 887-7039

Tim Koerner - Koerner Furniture, Coeur D’Alene, ID .........................(208) 666-1525

Karen Kohlman - West Harvard Furniture, Roseburg. OR ................(541) 673-4221

Don Lemieux - Naturwood, Rancho Cordova, CA .............................(916) 638-2424

Jeff Lindsley - Lindsley’s Home Furnishings, Grangeville, ID ............(208) 983-1040

Sandy Lundgren - Olsen Furniture, Shelton, WA ...............................(360) 426-4702

Robert Myers - Ashley Furniture HomeStore, Chico, CA ...................(530) 345-2616

Mark Navarra - Jerome’s, San Diego, CA..........................................(858) 753-1549

Michael Nermon - Ergo Customized Comfort, Irvine, CA ..................(949) 833-0338

Ray Nunez - Furniture Savings Center, Sacramento, CA ..................(916) 487-6005

Scott Selden - Selden’s - Tacoma, WA ..............................................(253) 922-5700

Sally Servidio - Silverado Home & Design, Napa, CA .......................(707) 251-0888

Mike Shuel - Meredith Furniture, Yakima, WA ...................................(509) 452-6221

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

Pam Wright - Davis Furniture, Wenatchee, WA ................................. (509) 662-4511

WESTERN HOME FURNISHINGS ASSOCIATION STAFF

Executive Director: Sharron Bradley ...............................................(916) 960-0345

Asst. Exec./Marketing Director: Kaprice Crawford .........................(916) 960-0346

Business Manager: Janice Carlson .................................................(916) 960-0347

Events Manager: Cindi Williams ......................................................(916) 960-0277

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

Communications Planning Manager: Melissa Robinson ...............(916) 960-0349

Managing Editor & Webmaster: Melissa Dressler ..........................(916) 960-0385

Membership Manager: Michael Hill .................................................(916) 960-0263

Member Services Specialist: Margie Jacobs ..................................(916) 960-0199

Member Services Rep: Adam Gardner ...........................................(916) 960-0291

Accounting Assistant: Melody King ................................................(916) 960-2476

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table of contentsJou rna l o f the Wes te rn Home Furn i sh ings assoc ia t ion

westernreporter

Western Home Furnishings Association is the westernaffi liate of National Home Furnishings Association

contactPhone: (800) 422-3778 (12 western states)

(916) 784-7677

Online: www.WHFA.org

Fax: (916) 784-7697

Mail: 500 Giuseppe Court, Suite 6Roseville, CA 95678

in every issueIndustry Beat . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Board Member Q&A with Tom Slater . . . . . . . . 8

Retailer Notes: Dead Inventory . . . . . . . . . . . . 10

Member Profi le with Cramer’s Home Furnishings . . . . . . . . 20

Program of the Month: Argo Select . . . . . . . . 27

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president’s message

ON THE COVERTh e Aerolo Collection from Lazar. For more information, please visit www.lazarind.com.

Marty Cramer2009 WHFA presidentCramer’s Home FurnishingsEllensburg, [email protected]

I am excited and honored to have been chosen as the WHFA 2009 president. It is my sincerest wish and No. 1 goal for those of you who are members, but not actively involved in the WHFA, to encourage you to bring your ideas, experience and love of our business and get involved this year. I promise, you will never regret getting more active in this great organization.

Th e term sales management means so many diff erent things to so many of us. For our stores, the best way to manage sales has been in the hiring process. I was in one of our stores a few weeks ago and although we did not have an opening on our sales staff , the store manager had scheduled an interview for that afternoon. I mentioned that I did not know we were hiring. She said, “We aren’t, but you have always stressed the importance of being open to upgrading the staff , and when you see his resume, I am sure you will agree that we should talk with him.” (Who knew anyone was listening.)

I sat in on the interview, and after a few minutes, two things became obvious: One, this was defi nitely going to be a two-way interview and secondly, this guy knew a thing or two about sales. I sat there trying my best to stay out of it. For those of you who don’t know me, “staying out of things,” is not something that comes naturally to me. Finally when I couldn’t resist any longer, I asked my favorite question, “What do you think is the thing that makes a salesperson great instead of just good?” He looked right at me and with no hesitation said, “Th ey have to be motivated by money.” I could have sworn I heard a chorus of hallelujah’s when he said that. Needless to say he started the next week. Someone in that store will lose their job eventually, if this guy is as good as I think he is. Th at is not a great feeling. Sometimes it is hard to be the person making those decisions. One thing that is certain, if we don’t hire him the store down the road will. Well, if the store down the road is hiring let them have the “good” salesperson, and we will take the “great” one.

If someone comes into your store asking if you are hiring, don’t be too quick to say no. We all know that having the right salespeople on the fl oor can have a tremendous aff ect on sales. Being open to “upgrading” is one way to have a great staff . I know that the point I am making is obvious to many of you. Here is one more point that may be obvious. Th e reason we pay our salespeople commission is so when we are looking for additional staff , we are attracting the type of people who have the confi dence and skills to be great. Th e eff ects of a sales management plan will only be as successful as the potential of the people you are managing. We will work short staff ed rather than settle for the wrong person. By the way, if you have a commissioned salesperson that complains when you are short staff ed, you have the wrong person on your fl oor. Our salespeople love it when we are running short.

It is a new year with all the potential that starting fresh gives us. I for one am looking forward to having a “great” year. I hope you are too. I would love to hear from you if you have any comments on this or any of the columns I write during the coming year. Please feel free to email any time.

6 February 2009 Contact WHFa at www.WHFa.org or (800) 422-3778.westernreporter

editor’s message

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

Western Home Furnishings Association500 Giuseppe Court, #6Roseville, CA 95678

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Jou rna l o f the Wes te rn Home Furn i sh ings Assoc ia t ion

the future

www.WHFA.org

westernreporterjanuary 2009

looking forwardto March 2009

Advantages of Being a Credit Store

Retirement Plans

Web.Simple Part III

... and much more!

Member Profi le:Selden’s Interior Furnishings, Tacoma, WA

Melissa “Mel” DresslerWestern Reporter managing [email protected]

Dealing with Economic UncertaintyI am not going to sugar coat things — it is tough out there. Th e economy keeps spiraling downward and your

consumers are becoming even tighter with what money they are willing spend. Many businesses have reacted by closing down facilities for two weeks or longer over the recent holidays, freezing all hiring and wage increases, enforcing employee pay cuts, laying off employees, and worst of all, going out of business. Despite a few glimmers of hope that the consumer has more money (gas prices are at the lowest level in years, prices on everyday necessities are dropping) there is still a dismal outlook for the rest of this year.

In spite of the dismal outlook, I am trying to maintain a positive attitude — and a positive attitude is the No. 1 thing you need to survive this downturn. We all know the economy will eventually rebound, so everyone needs to seriously look at their business and see what can be done to survive.

Recently, a question was posted on the WHFA website Discussion Boards asking: What specifi c steps have you taken or plan to take in your business to deal with this economic uncertainty and slowdown in consumer spending? Numerous retailers, like you, responded with amazing tips and insight on what they have been doing to survive — and a few are even maintaining a profi t. I wanted to share a few of their cost-saving ideas for you to look into implementing in your store:

• Renegotiate your lease. Rent is often your largest expense and many times your landlord is willing to work out a deal instead of having you go out of business.

• DON’T stop advertising. Th is is often the fi rst area many people think of cutting but it can also be the most dangerous to cut. Instead, re-evaluate your advertising and only use the most eff ective medium for your store.

• Go out to the community. Since business is slow, you most likely have more time to participate in the local chamber of commerce, school board, etc. Supporting the community will make customers remember your store and name.

• Rent out your extra warehouse space to outside designers and contractors who need the space but don’t want to maintain their own warehouse and overhead.

• Outsource deliveries to another company. Th is can save you money on truck maintenance, fuel, labor and insurance costs.

• Cut your own wage.• Shrink your inventory down to 20 percent of annual sales.• Develop electronic marketing and look into “free” ways to promote your business online (i.e. social networking,

blogs, etc).Th ere were many other terrifi c ideas mentioned in this discussion. If you are interested in reading more or adding

your own cost-saving tips, visit www.WHFA.org, click on “Community” and “Join the Discussion”. Th is issue of Western Reporter looks at sales and sales management, and it explores topics such as off ering layaway

services, using social networking to market yourself and using your manufacturer’s reps to train your staff . While 2009 is starting off bleak, let’s all join together, maintain a positive attitude and survive this downturn.

Western Home Furnishings Association916.784.7677 • www.WHFA.org

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industry beat

Tom SlaterSlater’s Home Furniture1605 J StModesto, CA 95354-1187(209) [email protected]

Q&A

boardmember

with Tom

Every month tune

into Board Member

Q&A to learn more

about your WHFA

board members.

Bedmart Expands Green Valley, AZ Location

Bedmart opened its newly expanded Green Valley, AZ location in November 2008. “The Green Valley, Tubac, Sahuarita areas are experiencing phenomenal growth,” said Chuck Kill, CEO. “This store serves all of these Southern Arizona towns, and we wanted to give these customers similar choices to what they would find in Tucson.”

While keeping the same location, the Bedmart store has grown from 2,940 square feet to 4,200 square feet. It now displays 55 different mattress sets which include traditional innerspring mattresses, mattresses that are engineered to not require turning, Visco memory foam mattresses, Latex foam mattresses, adjustable beds and more.

Jerome’s Furniture Wins San Diego National Bank Founders Award

Family-owned and operated in San Diego, Jerome’s Furniture was awarded with the San Diego National Bank Founders Award at the 2008 Family-Owned & Closely-Held Business Awards Ceremony, hosted by the San Diego Business Journal at the San Diego Marriott Del Mar.

“We are so honored to receive this award from the San Diego Business Journal,” said Jim Navarra, marketing manager, who accepted the award on behalf of Jerome’s. “Jerome’s was started by my grandparents, Jim and Esther Navarra, in 1954, and now, the third generation of the Navarra family is deeply involved in the business. We take great pride in being a family-run company, and having worked together for so many years, we truly understand how to run the business successfully as a family.”

Q What is your biggest challenge in furniture retailing?A Obviously we are all in the biggest retail challenge right now. More

specifically, I think getting the consumer to come in and buy without just offering a huge discount is the biggest challenge.

Q What CD is in your vehicle right now?A I can’t remember the name of the CD, but it is the only one that

features Emily-Lou Harris and Mark Knoffler.

Q If you won the lottery, what would you do with the money?

A If I won the lottery, you would have my resignation from the board, and it would have been sent from my new home on the island of Hawaii.

Q What is the most overlooked secret to success?A I think the secret to success, overlooked or not, is over the top

customer service.

Q I wish I knew how to:A I wish I knew how to use the computer much better. Maybe I should

just be younger!

Q What do you enjoy most about being a WHFA member?A I enjoy being with and networking with the other members. It’s the best

way to learn to be a better retailer and businessman.

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How do you get rid of dead inventory?

retailer notes

These responses were provided by home furnishings retailers on the WHFA Discussion Forum. To post your own question or answer another retailer’s, visit www.WHFA.org, click on “Community” and then select “Join the Discussion.”

I go throughout the store before our two big sales during July and December and tag every old closeout item with a bright lime green tag that says: LAST ONE.

I run the sale “UP TO 70 percent OFF” and with these old items I make some great deals from 70 percent off. Then I list all these items on a 18 X 24 inch lime green poster and put them on an easel by the entrance. Each day as we sell these items, I draw a line through them. The items are scattered throughout the store.

- Anonymous

I move it to a different part of the store. Sometimes if something has been in the same spot for a long time, I feel like the store is boring. I put it on sale and offer the salespeople $50-100 spiff. - Sally Servidio, Silverado Home Furnishings

We used to pull sale merchandise off the floor and bring new product in, but we had to wait until our twice annual sale. Now we mark our sale merchandise down, but photograph it and put it on a “sale” board where everyone can see it as they come into the store. We have sold tags we pin to the photo of what’s sold and that hopefully psychologically draws interest. If traffic is down, as it has been, nothing has sold even at 50 percent off, so after 60 days we’ve pulled what hasn’t sold and replaced it with a new item.

We do keep the photos of what’s on sale, and it goes in our stock book. Because we don’t have a large warehouse we can look in the book to see what’s available if someone asks.

- Anonymous

It depends how many items are “dead”. I would put a spiff for your salespeople to benefit from selling it. Build your spiff into the reduced price. I would make sure you have it displayed as beautifully as possible and that the customer can clearly understand how much they are saving. Don’t just price it at $599. Show what it would sell for at your full mark-up and then show the lower price. Be sure your staff knows the features and benefits of that item. Sometimes it’s a dead item because of where it is placed. Try moving it around. If you put it in a “hot” spot and it doesn’t sell, it might just be a bad buy. Find out what people are buying instead of that dog. Maybe mark-up the faster selling item to either sell the dog or make more money on the better seller.

I sometimes take a $20 or $50 bill and create a contest for that day. You could say whoever sells the most “dead” items that day takes it home. I usually do it for the highest ticket for that day. Whoever makes the first sale gets the $20 or $50 bill. Then whoever writes a largest invoice takes it away from the other salesperson. It can get passed back and forth several times and everyone wants to walk out the door with it. You can the contest award could be gift cards, movie tickets or any other item your staff would get excited about.

Several great years have spoiled us. These times make us better retailers!- Anonymous

It will depend on why it is “dead” and how much of it you have. If there is quite a bit and you are willing to sell it at a huge discount, market it! Parking lot sale, warehouse clearance sale — get creative. Send out a one page letter to all your customers inviting them to the event. Give them a story about why you are giving such incredible discounts. You can also guarantee a larger response by putting everything on sale inside the store, just with smaller discounts. The result of this will be a blending of increased sales on your profitable items with your “give-away” prices on the clearance items.

- Anonymous


feature article

James Grandillosenior retail consultantJRM Sales & Management

Remember layaways? I do. Most retail stores back in the day had layaway programs. They were set up in a variety of ways, but

essentially they all worked like this:1. You select an item you wish to own;2. You immediately remit a certain

percentage of the purchase price as down payment;

3. You make several incremental payments until the item is fully paid for;

4. Then, and only then, do you take delivery of the item in question.

Sounds easy, doesn’t it? On the surface it is easy. Back in the days before paying by credit card was the norm, customers unable to pay immediately in full liked layaway because they could “hold” an in-stock item (guaranteeing it would be available when they wanted it) and pay for it gradually. Stores liked layaway because, with a layaway program, the customer with less cash resources could be more easily persuaded to purchase a product they could not afford to pay for in full at time of purchase.

Seems like everybody wins. Customers unable to pay in full paid gradually over time. The retailers got some small cash flow and — usually — a good assurance that the item in question would actually be delivered at some later date. However, what appears simple on the surface is usually very complicated just below…

Smaller stores with limited staff found that administering a layaway program could be a nightmare. In the fuzzy, pre-computer days before 1985 keeping track of who owes how much and when payments are due was an enormous effort. People did not always pay on

time or at all. Some customers would renege on their commitment and ask for their payments to be returned. Stores found that layaways tied up their inventory and, inevitably, inventories would rise. Often customers chose the layaway option to tie up goods that were usually new to the store and potentially “hot” items as well… items that were destined to move quickly. Companies with tight cash flow had to pay for the goods within 30 days but they might not receive payment from the customer for 90 days or more.

However, as credit became looser and “instant gratification” became the norm, the need for the layaway option in retail stores diminished. With interest rates low and consumer optimism high, banks fell all over themselves to offer plastic cards to anyone who would apply for them. In addition, in the 1980s there emerged the dreaded NO! NO! NO! advertising and promotion strategy that our industry embraced in a death grip that continues to this day. So the message was clear:

1. Credit was easily available through bank-supported credit cards;

2. We will offer you easy financing terms with NO money down and NO interest for X months (although this meant either higher prices to the consumer or lower margins to the retailer: someone had to pay for this money!);

3. You can have it all and you can have it now!

A heady wine, indeed. Like sailors on leave, consumers waving their plastic lined up to buy.

And for those people whose personal financial situation made them a poor risk for the credit card companies or the banks (around 38 percent

Pros and Cons of

Layaway


of all consumers cannot obtain a credit card even today), the meteoric growth of the Rent-to-Own industry provided instant gratification and ownership for millions of people with the following message: We will NOT run a credit check on you. EVERYONE with a bonafide job will be granted the right to purchase here on time.

In this intoxicating climate who needed layaway?

The world of 2009 is not the world of 1985. (Have you noticed fewer credit card offers in your mailbox of late?) All banks have tightened up. Retailers have a more difficult time obtaining credit lines to purchase inventory. Consumers whose wallets once bulged with a dozen credit cards are now slicing them into little pieces and letting them sleep with the fishes. In addition, many people have maxed out their personal credit and can barely make their minimums each month. Our national addiction to instant gratification and easy credit terms is still very, very strong, but in some people it has been replaced with a hyper-sensitivity to anything that threatens our future security: a growing number of consumers are gradually becoming anti-credit.

This bodes poorly for companies who have built their entire business empire on the Charge It and Have it NOW! mentality. Many of them — notably the larger, more strategic chain stores, are beginning to re-think their prior aversion to layaway — because, properly administered, a layaway program provides the consumer with options to going further into debt to have the things they need. It might be useful for the retail home furnishings industries to dust off their old layaway programs and see if they may have new meaning in today’s difficult business climate.

Kmart, Sears, Target, and others have streamlined their layaway programs and are advertising them aggressively to the consumer. They are doing so to capture the attention of the careful consumer. Cautious consumers like layaway because of the discipline it requires, for most programs demand regular payments and the layaway term itself is brief — typically, rarely longer than 90 days. A new breed of “frugalista” is emerging, and they love layaway, because it is suddenly very now to be careful with your finances.

From one perspective, layaways allow the retailer to penetrate/capture a market segment that normally would be lost to them. Those without credit cards or a high enough credit rating cannot purchase anything in this country without using hard cash or going to the rent-to-own companies — and they will pay substantially more money for goods in the long run if they do. If a retailer is willing to provide the administration necessary to keep the program under control, a layaway process will help this customer obtain the things they want and need.

But the pitfalls are great. Inventory is “locked” up and immovable. Many layaway items are ultimately cancelled as customers find more urgent places to invest their money — meaning the retailer has held onto the goods for months and suddenly has to give back the monies paid to them. Now the retailer has inventory than he doesn’t actually need. In the case of seasonal merchandise this could be a disaster: little patio furniture is sold in December! Smaller companies find it difficult to keep customers informed when payments are late — thus the cash flow position is weakened.

So while layaway programs can open up a new market for the retailers they must be administered with caution and care. Here are a few suggestions on how to establish a layaway program and avoid problems. Remember, the more restrictive the program, the less attractive it is to the consumer. You have to decide how much hassle or risk you are willing to take to provide this additional service to your customers:

1. Limit the term of the layaway to 90 days for home furnishings;

2. Require a high initial investment — between 33-50 percent. The customer is thus more deeply committed to completing the transaction;

3. Create a system that requires someone well-trained to phone the customer if an installment payment is more that five days late;

4. If you must have a cancellation policy, make sure the fee for this service (“restocking” fee) is reasonably large — say 25 percent of the original price;

5. Assess administrative fees to service the layaway agreement;

6. Establish as a policy the dollar amount of goods that can be placed on layaway — i.e. make the sale attractive enough to the company to justify the time and effort necessary to service it. Don’t put $20 candlesticks on layaway;

7. Test the viability of a layaway program by offering it initially for a limited time only — say, during a 30-day period. See if your system works properly and your sales staff understands how and when to promote it. If it is working and gives your store the edge that it needs, roll it out further.

Every retailer today is desperately looking for new ways to make something happen and grow their business. Properly administered, a layaway program can help certain stores better service certain customers. There are risks, but these risks can be mitigated with careful planning, training and systems that are carefully adhered to. Provided that a layaway program is well-conceived, it can mean additional business for the retailer who wishes to grow his business and penetrate a new market segment.

JRM Sales & Management is a team of consultants and trainers to the retail home furnishings industry. Visit their website at www.jrmsales-mgmt.com for additional information or call them directly at (678) 574-0937. James Grandillo, senior retail consultant — Jim has over 30 years of hands-on retail experience in all aspects of the home furnishings industry. As a consultant, he has personally helped to improve the performance of nearly 100 independent retailers.

est.1944

For additional information, please contact: Jerry Landers 866.428.0730 n [email protected] n 800.422.3778 n [email protected]

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Leslie CarothersprincipalTh e Kaleidoscope Partnership

Digital marketing. New media marketing. Social media marketing. Web 2.0 marketing. Th ese are all interchangeable

terms which have at their core the crafting of a marketing strategy that combines social media such as blogs, podcasts, webinars, videos and social networking sites such as LinkedIn, Twitter, Bebo, Facebook, Flickr, Ning, etc. to cost-eff ectively and directly connect with your current and future consumers.

Why are so many brands switching from traditional media to social media or, at the very least, combining the two? Simply put, because that’s where consumers are spending their time — over 570 million of them a year and growing. In addition, social media is cost eff ective, completely measurable and targeted.

Just what are some of the social media tools available to you and why consider using them? Th e rest of the article will examine that topic in depth.

Here are 10 reasons why it might be a good idea for you to consider a comprehensive digital marketing plan for 2009:

1. Over 570 million people worldwide use some type of social networking site —not just the Internet, but, specifi cally, a social networking site such as those shown above. Facebook has the highest adoption rate worldwide at this time with over 52 million users alone. Th is means it is highly likely that at least some of your potential consumers can be reached this way and Facebook for Business is but one of many very powerful, free applications available to you to do so.

2. General Internet usage by consumers is exploding: According to Nielsen/Net Ratings, there are over 1,463,632,361 people using the Internet as of June 2008. Yes, 1.4+ BILLION.

Th is is approximately one-sixth of the entire world population and represents a worldwide usage growth rate of 305.5 percent from 2000 until 2008. North America alone has had a 129.6 percent increase in usage between the year 2000-2008, but that pales in comparison to the Middle East and Latin America at 1,176.8 percent and 669.3 percent respectively.

3. Social networking sites are free for you to use. Th ere is no cost. Th ey are generally supported through ads or through premium levels of subscription services. Facebook for Business is free and supported by ads, LinkedIn is supported through premium subscriptions. Twitter is free. Flickr is free. YouTube is free.

4. By careful use of social media and social networking platforms, you can fi nd out in real time what your customers want, what they are thinking and how you can serve them more eff ectively.

5. Setting up digital marketing strategies does not require you to spend additional money. It requires you to migrate part of your

New Media MarketingWhat’s In It For You?

When was the last time you had to spend no money to drive traffi c to your website and into your store? When was the last time paid advertising and marketing were directly measurable on an hourly basis?

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traditional marketing and advertising expense into new media platforms.

Once the strategy has been implemented, the cost is free with the exception of online community moderation. Th is cost, while real, means that you or someone you hire is actively talking with your potential consumers every second of the day through online conversations. You can’t get much closer to the pulse of the consumer than that nor show them a better level of customer service. Active community management through engagement and conversation will be a key diff erentiator for smart retailers in 2009 and beyond.

6. Mobile phone text messaging usage is increasing: Th e offi cial Google blog writes:

Th ere are currently about 3.2 billion mobile subscribers in the world, and that number is expected to grow by at least a billion in the next few years. Today, mobile phones are more prevalent than cars (about 800 million registered vehicles in the world) and credit cards (only 1.4 billion of those). While it took 100 years for landline phones to spread to more than 80 percent of the countries in the world, their wireless descendants did it in 16.

By utilizing new media tools, you will be able to connect with your potential customers as they are driving around on a Saturday afternoon. You will be able to invite them all in for a special event or give them a discount for the next two hours only.

7. Every time your company engages in an online media strategy, your company name and your company’s keywords are indexed and search engine optimized. Why is this important? Because if a potential customer types in to Google’s browser the words “traditional sofas Portland Oregon” and you don’t show up, then you are invisible to that consumer. If that consumer lives out of state and is moving to your area, you have just lost your opportunity for them to know you exist.

Points 8, 9 and 10 are the same:Social media and social networking marketing

initiatives are directly measurable. You can see exactly which initiatives and sites are sending traffi c to your website, how many visitors are coming,

what time of day, what pages they are landing on, how long they stay on the page, what they click through to from one page to the next, and many more data points.

I leave you with this:When was the last time you had to spend

no money to drive traffi c to your website and into your store? When was the last time paid advertising and marketing were directly measurable on an hourly basis?

Th at’s why so many consumer durables companies are setting up a presence within the social networking and social media communities.

IKEA, NestLiving, HomeReserve, Landfair Furniture+Design, many interior designers (wouldn’t you like to connect with interior designers in your market for free?) are all adopting new media tools as a key component of their 2009 marketing and sales strategy. Within the greater consumer durables world, Proctor and Gamble, Ford, Constant Contact, Dunkin’ Donuts, Sears, Kmart and Comcast, to name a few, are all developing a personal connection with their customers in the social networking world.

It’s easy, it’s simple, it’s free except for upfront strategy development and ongoing monitoring costs.

Digital marketing using social networking and social media tools will cut your marketing budgets by two-thirds, give you the ability to listen and learn from your potential customers, prospect extremely fast and develop a reputation amongst your customers and on consumer online opinion sites as being connected, engaged and caring. What could be better than that?

Sales. More. Larger. Faster because your customers know you are listening and engaging them where they are in the online communities they have chosen to participate in.

To survive and thrive in 2009 and beyond, I think it’s time for all retailers, manufacturers suppliers and designers to be there, too.

What do you think?Please email me with your comments or

questions at [email protected] or call me at (713) 705-2482. Your opinion is the one that really matters to me.

Th e Kaleidoscope Partnership is a new media consulting fi rm specializing in providing retailers, manufacturers and suppliers in the home industries with the tools they need to execute social networking, online reputation management, e-conversion and analytics sales and marketing strategies. For more information, please see Leslie’s profi le on www.linkedin.com/in/lesliecarothers, visit her company page on Facebook at Th e Kaleidoscope Partnership, follow her on Twitter at tkpleslie or visit her website at www.tkpartnership.com.

Hear Leslie speak during WHFA’s 2009 Conference and Expo in Maui, HI,

May 17 – 19, 2009. Visit www.WHFAconference.com

for more details.

Retailer Resource CenterWo r l d M a r k e t C e n t e r, L a s Ve g a sBuilding B, 16th Floor | Building C, 4th Floor

ACCESS

EDUCATE

CONNECTLas Vegas Market February 9-13, 2009

At the Retailer Resource Center you’ll find business solutions, seminars and industry information

to help grow your business as well as your bottom line.

National Home Furnishings Association | www.NHFA.org | 800.888.9590Western Home Furnishings Association | www.WHFA.org | 800.422.3778 or 916.784.7677

World Market Center | www.LasVegasMarket.com | 866.229.3574

RRRRRRRRRRRRRRRRRRRRRCCCRCRRRCRCRCRRRCRRETAILERRETAILERRETAILERCRETAILERCCCRETAILERCRETAILERCRETAILERCCCRETAILERCRESOURCE CENTERRESOURCE CENTERRESOURCE CENTERWestern Home Furnishings AssociationWestern Home Furnishings AssociationWestern Home Furnishings AssociationNational Home Furnishings AssociationNational Home Furnishings AssociationNational Home Furnishings Association

COMPLIMENTARYHOT SPOT CAFE: Computers, coffee & cookies (available all day)

BREAKFAST FOR BUYERS: (Mon.-Thurs. 7:30-9:30am) POWER HOUR: Beer, wine & lite bites (Mon.-Thurs. 4:00-5:00pm)

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Now you have ACCESS to over 50 business providers at the two RRC locations:

RRCRETAILERRESOURCE CENTERWestern Home Furnishings AssociationNational Home Furnishings Association

Visit over 50 industry service providers dedicated to bettering your performance and your bottom line. Check out www.WHFA.org and click on the RRC logo to view a complete listing of service providers showing at the two RRC locations.

Las Vegas MarketBuilding B, 16th FloorBuilding C, 4th FloorFebruary 9 – 13, 2009

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list as of 1/6/09

ACCE SSACA/ Advertising Concepts of America American General FinanceArgo SelectAYR1.comB&B/CMK - Banker & Brisebois AdvertisingBA Merchant ServicesBryant-Forney AssociatesCalifornia Air Resources BoardCiti Retail ServicesCosec International, Inc.Custom Design SoftwareEmail BroadcastEscalate RetailFurniture Training CompanyFurniture Transportation GroupFurniture WizardFurnitureDealer.netFurnServeGenesis Software SystemsGlobal Link LogisticsGuardian Protection ProductsGuardsman, a business Unit of ValsparGutSELL & AssociatesHEP Direct HomeDirect USAHorich Parks Lebow AdvertisingHunterDouglasIAS Training I.C.E. SignsInternational Storage Systems, Inc.JRM Sales & Management, Inc.Kizer & Bender Speaking!Mail AmericaMDG Group, Inc.MicroD Inc.Morry Dickter AssociatesMyriad Software & ConsultingNational Home Furnishings AssociationProfi tability Consulting GroupPROFITconsultingPROFITsystems, Inc.Retail RadioSale-in-a-BoxState Compensation Ins. FundStoris Management SystemsThe Lively MerchantThe Marketing AcademyThe Retail InstituteTruckSkin, LLCViewIt TechnologiesWestern Home Furnishings AssociationWestern Retail Services CorporationWorldwide Logistics Specialists, Inc.


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Melissa DresslerWestern Reporter managing editor

Since 1995, Cramer’s Furniture has been synonymous with quality furniture and excellent customer service in the state of

Washington. Owners Marty and Michelle Cramer drew upon their previous experiences to build a furniture retail empire that caters to the customer and is successful by running a lean operation.

Prior to opening their home furnishings business, Marty and Michelle met while working at a Hallmark store. After leaving Hallmark, they ventured into the publishing world, but quickly grew tired of the business. Looking for a new adventure to embark upon, they took a trip to their cabin, which was being remodeled, in the San Juan Islands in Washington. During the trip, Marty and Michelle began to discuss the furniture industry with their contractor, who owned a construction company as well as a furniture store. The idea of returning to retail had always been in the back of their minds, but both wanted to have a business where the average ticket was more then a $3 greeting card. “Our contractor told us a little bit about the furniture business, offered to help us get started, introduced us to the right people and the rest is history,” said Marty.

Marty and Michelle opened their first store in 1995, and they were the only two employees. Their merchandise consisted of, “Nothing but imports and cheap imports — $99 three-pack tables,” Marty said. Everything was sold off of the floor and there was no back stock. After the

store closed at night, Marty and Michelle would load up their van and make deliveries to their customers. Today, Cramer’s Home Furnishings has evolved into three beautiful stores, selling merchandise in the medium to high price range and has its own delivery team. Over the years, Marty and Michelle have learned many tricks on how to hire motivated employees, keep their operating expenses lean and they have realized that they are a part of the best industry out there.

Friendly and Motivated Employees

When it comes to hiring employees, Marty and Michelle look for friendly people who are naturally motivated by money. “We care more about a person’s personality and less about their experience,” Marty said. “One of my favorite questions to ask during an interview, and I would say 95 percent of people answer it incorrectly, is, ‘Why do you want this job?’ And they always say, ‘Well, I am looking for a place to fit in, or self-fulfillment, or I have always loved furniture, etc…’ When what we want to hear is, ‘For the money.’ When you are in an interview and someone answers that they want the job because it is commissioned or they want to control their money, then we hire that person then and there. That is the perfect answer.”

Since the best salespeople are motivated by money, Marty believes that it is important to find

Cramer’s Home FurnishingsEllensburg, WA

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At a GlanceStore Locations: Ellensburg, Omak & Yakima, WAType of Store: Full-lineYear Founded: 1995Number of Employees: 48Number of Store Locations: 3Annual Sales Volume: $5 millionWebsite: www.cramersfurniture.comTop Manufacturers: La-Z-Boy, Ashley, Emerald, Comfort Solutions/King Koil, JoffranWHFA Member Since: 1998

people who are motivated by the ability to control their own income, which can be difficult to find. By asking this question during his interviews, Marty has been able to find a great team of salespeople which are self-motivated to succeed.

Lean and Mean OperationOne thing that has given Cramer’s Home

Furnishings an advantage over other home furnishings stores is they run a lean and mean operation. Marty and Michelle keep their employee overhead in check by always evaluating the workload. “We always tell people that are considering working with us that there will always be too much to do, and if the day comes that you can get everything you need to do done in one day, then we have too many people,” Marty said.

Another item that has helped keep costs low is selecting store locations that others don’t want. Marty learned about negotiating leases and finding“diamond in the rough” locations while working for Hallmark and has used this to lock-in on some great leases. “I think the only reason I get good leases is because I ask for them,” he said. “In a lot of cases, I will find a good building, in a good location but there is something wrong with it. Case in point is the building that we have in Ellensburg: we don’t own the building, and it was a dump when we began our lease but it is in a great location. I went to the landlord and got a very long lease, 15-plus years, at an exceptionally low rate with no bumps but I had to put a lot of money into remodeling his building. There was some investment for us, but overall, we now have one of, if not the nicest building in town at a rent that people just can’t believe.”

By keeping their employee overhead low and negotiating incredible lease deals, Marty and Michelle have been able to survive tough times like the current economic downturn.

The Industry Marty and Michelle have worked with a variety of people

over the years in retail and publishing but none have been as friendly as the people in the home furnishings industry. “I love the furniture business, it is just full of the nicest people you have ever met,” Marty said. “The publishing business taught us how much we appreciate the business that we are currently in. That is a mean, nasty business, and you would never catch two competitors sitting down at the same table for any reason. In this industry, we play golf together!”

Marty is close friends with his local competitors and they all hope each other succeeds. Marty knows that if his store did well on a particular weekend, then his competitor’s store also did well. “I always feel sorry for the retailer that hopes he does really well and everyone else does poorly because that isn’t going to happen,” he said.

The FutureAs WHFA’s 2009 President, Marty is optimistic about what

the upcoming year will bring, “I am optimistic that things won’t get worse in 2009 and that they might even get better. I feel like those of us that are here now are survivors, and I think it is going to be a fun year.”

Over the next few years, Marty and Michelle want to concentrate on refining the business to make it stronger and more profitable. They also plan on taking more time off to spend with their family of two dogs, a horse and two miniature donkeys.

With their optimism, unique hiring strategies, lean business practices, and joy for the industry, Marty and Michelle will be furnishing the homes in Washington for years to come.

4 5

1. Shane Francis and Steve Hickey from the Omak store.2. Michelle and Marty Cramer with their one of their dogs.3. Lindsey Parisio from the ellensburg store.4. Omak storefront.5. ellensburg storefront.

MA585_Roots_Western_Reporter.ai 12/18/08 12:09:31 PM


In this New Year and new economy, it is essential that we, as manufacturers and retailers, maximize any and every opportunity

to increase our business prospects. We should stop and evaluate our current training and sales practices to ensure that we are making the most of our training curriculum and sales opportunities. If we are effective in our practices, your sales force can be assured of success on the retail floor. With this in mind, I think this is an excellent time to discuss how the participation of manufacturer’s representatives can play an important role in training the retail sales associates.

After many years in retail, as a buyer and merchandise manager, and now a sales and marketing VP in the manufacturer’s arena, I have seen firsthand the numerous benefits that the manufacturer’s rep can have on retail training and sales strategies. Before we can educate the consumer, we must first educate the sales force on the finer points of the product they will be selling. Traditionally, much of this training has been done through the retail sales manager and follows a course set by their company. But who knows each individual line better than the manufacturer’s rep. By incorporating their vast knowledge base, your retail sales team can learn the product in greater depth and be better prepared to educate the consumer regarding the value of their potential purchase.

When your sales force has one on one training time with the manufacturer’s rep, they have a chance to really focus on the details of a particular line. This gives your associates the opportunity to not only learn about product engineering and quality, but also what I call the FAB of the product. That is, the Features, Advantages and Benefits of the product. In this economic environment, a good understanding of product FAB is vital; providing the salesperson with an argument that can motivate their client to close a sale. Reps should also work with your

sales team to guide them in taking advantage of “add-on” sales. A well trained salesperson will know exactly what occasional tables to suggest to a client who is considering the purchase of an upholstery group. This sales tactic is critical; sales associates need to learn the art of selling an “environment”, not just a “piece of furniture”. A knowledgeable, confident sales associate will be more likely to increase their average sale, improve their closing ratio, and, as a result, make more money for themselves and for their store.

Industry-wide, retailers do not appear to have a consistent method of utilizing manufacturer’s reps in the process of training their sales teams, nor is there a clear way to measure how successful the rep’s time has been. Some retailers have programs to monitor how often a rep is in their store, such as sign in sheets and sheets that record who was trained that day and on what product. These sheets also typically address any pricelist, catalog, and fabric swatch concerns, along with plans for future sales meetings.

The manufacturer’s rep today can either partner up with the retail sales force and be diligent in training the retailers in the details of their product lines, or face the potential loss of business to a competitor that is willing to take the time to provide this service. A successful manufacturer’s rep will schedule quarterly meetings with retail stores and will be in the store at least once a month to offer new hire training and the newest updates on their company’s product. Each visit is a new opportunity for the rep to re-educate the existing sales force and begin an on-going educational relationship with newly hired associates. As the saying goes, knowledge is power; and in this case, knowledge can equate to increased sales and a more successful sales team. In addition, ongoing training by the manufacturer’s rep can help reduce high turnover on the retail sales floor. A well educated associate will be more confident and passionate about their job and the product they are selling.

Michael Cohenvice president of salesEmerald Home Furnishings

Working with Your Manufacturer Representives


In my travels, I have run across several training success stories:

A prominent mid-west retailer offers an extensive sales training program that begins the first day a new hire starts and continues throughout their career. As part of this program, the new hire will not only learn product details, but also spend an entire day in customer service listening to incoming service calls. Hearing these customer concerns, and especially issues that were caused by their original salesperson, allows

the trainee to identify and avoid these problems in the future. Many consumer problems are a direct result of the salesperson’s lack of product knowledge; or in some cases, not asking the customer the right questions.

A successfully retailer in Michigan also pays close attention to their dedicated sales training program. A core component of this training is having the sales force meet with various manufacturer reps. In addition; the sales force is offered continual training on a month to month basis. This way, the company can target their training to specific issues and specific salespeople.

One month the course may be an in-depth look at the newest techniques for fabric protection. The next month, the course may focus on bedding. The retailer sends one or two of their sales associates to train at their corporate headquarters. At times, a manufacturer’s rep will speak at these training classes about products and sales tools. This allows the trainee to strengthen their knowledge in a particular area and share their knowledge with the rest of the retail sales team.

Another western regional retailer has a great sales training program that is noteworthy. The


retailer has manufacturer reps visit and talk with multiple sales teams each week. The process is simple and efficient, taking only 15 minutes or so for the sales teams to get a refresher course on the product being discussed. The reps talk about new product that has recently hit the sales floor or discuss product from their standard line. The result is a knowledgeable and successful sales force that helps to ensure the company’s continued success.

I believe a Saturday morning sales meeting is a great way to start the weekend. The sales manager or store owner can recap the previous week and set a direction for the week to come. This is also a great way to make sure that everyone is on the same page as far as goals and product knowledge. Why stop there? Ask your customer service employees to join these meetings. After all, these employees keep selling product long after it is delivered. Single message selling is a must for any retailer. Sales and customer service must work as a team and they should both be telling every customer the same story about the product they are selling or supporting. This meeting is also a great time to schedule various manufacturer reps to meet with the sales force. Since everyone is there already, it is an efficient use of training time and the message will be consistent.

Sales training is a must for the coming year. As consumers become more product savvy and their wallets shrink, they will increasingly use the internet as a research and decision making tool. It is, therefore, paramount to our future success to invest in dedicated training for the retail sales associates. Once the customer enters the store, the salesperson must have a more thorough understanding of their product to keep the customer’s interest. One of my goals for 2009 is to be as consistent as possible with my sales training in the field. I will be expecting my (manufacturer) reps to schedule regular product training with their customers, both for new hires

as well as ongoing education for all associates. And I will expect the retailer to raise their expectations of the manufacturers’ representatives. I think you will find that the investment that is put into this endeavor will reap the benefits of success almost immediately.

Michael Cohen is the vice president of sales for the western region of Emerald Home Furnishings.

Emerald is a full-line importer of upholstery, bedroom, dining and occasional and is a manufacturer or a full-line of bedding through its Emerald Sleep Systems division. For more information, visit www.EmeraldHome.com.

Please see us as the Retailer Resource Center, Building B #1630, space # 17

February 9 - 13, 2009

It’s all the rage, but we’ve been that color for years.

Our Full Circle suite of electronic products – PreVue and ePreVue, Exim Commerce,

EasyPlan, EasySwatch, EasyOrder and MPCat are completely

paperless. That not only makes them environmentally

friendly, they also make it easier for you to work more

efficiently. And that’s good for everybody.

To find out more, call 800-964-3876 or visit us at

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The best furniture business technology.

EasyPlan, EasySwatch, EasyOrder and MPCat are completely


through WHFA’s partner

WHFA insurance programs

Business Insurance

Health Insurance

Workers' Compensation

Employment Practices Liability Insurance (EPLI)

Kaprice CrawfordWHFAmarketing director

WHFA program of the month

In tight times it is a necessity to trim overhead. One signifi cant overhead expense is business insurance. You can put your membership to work with the WHFA’s unique insurance program through

Argo Select. Th e program off ers comprehensive, cost-eff ective business insurance specifi cally designed for furniture retailers. Argo Select is a specialty insurance provider with over 39 years of dedicated service to retail operations.

Argo Select partners with furniture store owners to protect their greatest asset — their business — by providing tailored property, liability, crime, auto, and umbrella and business owners packages. Th eir Furniture Program Advantage endorsement is available with your policy and provides additional, enhanced coverage. Argo Select’s safety training services pinpoint exposures and help reduce the frequency and severity of claims. If a claim does occur, their exceptional claims handling staff helps to minimize your loss, coordinate repairs, and get you back to business.

With Argo Select you receive exemplary customer service and competitive rates. When you receive a quote from Argo Select you speak directly with their agents; no brokers or commissioned salespeople need be involved. Argo Select’s rates and service all benefi t you, the client.

Lower your premium costs today and get a quote with WHFA’s program through Argo Select. Call (800) 422-3778 today, to receive a direct quote. Th is program is not off ered through regular business channels, although brokers do have access through WHFA.

Coverage’s Include:PropertyLiabilityAutoWorkers Compensation Employment Practices Liability InsuranceMotion Cargo

Best Way to Cut Overhead is with Insurance Premiums

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Not only does Argo Select know my retail business, their quote was NEARLY 20 percent UNDER my renewal and they worked with my existing broker. Th ank you WHFA and Argo Select!

Keith KoplanKoplan’s Furniture

Vancouver, WA

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Your Association’s 2008 Achievements

New Programs Music & messaging program – Retail Radio

allows you to create your own radio station. Create a customized radio station for your business that is designed to target your specifi c consumer. Whether you are a single location or have multiple stores across the country, Retail Radio brings you a personalized radio station with specifi c music and branding messages designed to highlight the unique services of your store.

Newsletter and Article Program – Be your customers’ top resource for ideas and information. Whipsmart Creative can help you beef up the content on your website with customized newsletters and informative articles that give visitors a reason to linger and see more of what you have to off er. Provide your customers with informative monthly newsletters packed with tips and trends for idea-hungry consumers — and customized just for your business with your logo on the cover and contact information inside.

Alternative Finance Program – Help Credit-Challenged Customers. 4Sales Finance provides

members with a hybrid lease/option for credit-challenged customers that are declined by your primary credit source. Customers can qualify for the program if they have been employed for the last six months and have a gross monthly income of a least $1,000.

Furniture warranty Program – Help customers feel better about their purchase.Furniture Protection Plan by 4Warranty provides extended service plan programs for furniture, upholstery, appliances and electronics, and includes an after-market opportunity to capture income missed at the point-of-sale.

Interior Design Course for sales associates – Give your sales team the design knowledge they need. selling x design is a correspondence course that off ers basic design skills that will increase the knowledge and professionalism of sales specialists and individuals entering the residential interior design industry. Developed by Interior Design Society professionals, selling x design combines expertise with tools-of-the-trade by focusing on the eight key elements of design.

Retail Software Systems Survey. Updated in

WHFA has stood by you for over 60 years and no matter how diffi cult the times may be we’ll always be there for you. Now more than ever you must count on your association for all the resources that can simplify your business life, help you cut costs and fi nd ways to increase

your revenue stream. We bring powerful benefi ts to our members that come from our ability to join together to obtain the best prices on business services, to bring the most up to date education and information and to provide the most signifi cant network for developing your business’s best practices.

In spite of the turbulence of 2008 your association has been hard at work. We are proud of what has been accomplished for you and would like to share our plans for 2009. Take a look and you’ll discover the enormous value WHFA brings to members throughout the west.

Highlights of 2008 • WHFA is the largest affi liate of the National Home Furnishings Association. Th is year over 100

new members joined our organization. Your membership investment in WHFA continues to prove its value year after year.

• Over 90 percent of WHFA members continue to experience reduced operating costs from participation in your association’s programs.

• Our Las Vegas Retailer Resource Center located in Building B on the 16th fl oor of the World Market Center along with the satellite RRC brought a variety of new educational opportunities and business resources to members in 2008. Retailers came to take advantage of great networking, the business services tradeshow, and a perfect place to access the Internet and catch up on business back home in a casual relaxing atmosphere.

• FAST FORWARD, the community of young home furnishings professionals hosted two excellent seminars during the Las Vegas markets last year along with a exceptional session focused on optimizing your exit strategy during WHFA’s annual conference in Tucson, AZ.

• Our magazine, Western Reporter, brought a host of intriguing articles to members specifi cally focused on enhancing the business practices of home furnishings retailers and off ering guidance to help them meet their goals during a very challenging year.

• New look, fresh style, cool format and more FUN, that’s what attendees found when they came to the all new 2008 conference & expo in Tucson, AZ, last May. Th e conference featured the perfect mix of education, relaxation, networking and fun. Everyone left with hundreds of new ideas and a multitude of new friendships.


2008, the Retail Software Systems Survey gives you a direct comparison of various computer systems available in the market today for use in retail furniture stores. Use the survey for a quick reference tool when evaluating computer systems for your store.

Book Series – Furniture Retailing 101. Th is book series written by industry veteran Jim Green will help bring new entrants into our industry up to speed and help them become far more productive and eff ective, faster. With its practical, nuts and bolts information, this series should be required reading for anyone entering the furniture industry.

Safety Information and Manuals to keep your employees safe. Keeping employees from injuries on the job should be the number one business concern of every home furnishings store owner and executive. WHFA has organized safety resources and information in one spot, the “Safety Spot,” for your use and convenience. Here you will fi nd articles, websites and manuals to keep you in compliance and your employees safe. Visit our website at www.WHFA.org > Resources > Safety Spot.

Competitive Business Insurance through Argo Select is the fl agship insurance program for our industry. Th is vital, members only program is designed specifi cally for furniture retail operations like yours. All business lines

of insurance including Employment Practices Liability Insurance and worker’s compensation for companies located outside of California are off ered. Be sure to compare this extremely competitive program when you are ready to renew this year.

Your wHFA worker’s Compensation Insurance program in California provides signifi cant discounts for California members. Four group programs that encompass all class codes for home furnishings retailers and a substantial 6 percent discount make this an extremely important member benefi t. Check out our insurance rates through State Compensation Insurance Fund, they are more competitive than ever.

Your wHFA California health insurance program off ers features that mirror large corporate programs and the most competitive group rates available. Flexible options, great rates and multiple carriers make this comprehensive program an important benefi t for all members. Your program includes all facets of health and dental insurance for you and your employees. Compare our program during open enrollment and enjoy fast professional service on one of the premier health insurance programs in California.

Health insurance options for members outside of California include a discounted Regence Blue Shield health program for members in Washington and group plans for dental, vision, chiropractic and life as well as site specifi c health insurance plans for all states. In concert with Bob Aita and Associates, our WHFA insurance broker, we off er competitive insurance choices through “A” rated companies to all 12 western states.

What a Deal!WHFA is extending this limited-time membership offer* only for non-members attending the 2009 Winter Las Vegas Market!

In order to qualify, you must: Visit the Retailer Resource Center, Building B, 16th Floor or Building C, 4th Floor, and speak to one of the WHFA Membership Team.

* not applicable to renewing members

est.1944

15 months of Membership for the price of 12!

Come see us!

Building B 16th Floor

Building C 4th Floor

Come up and visit Adam, Mike, Kaprice and Margie.

Western Home Furnishings Association is a non-profi t trade association dedicated to providing furniture retailers essential resources needed to simplify their business life and be successful.

Western Home Furnishings Association800-422-3778 • www.WHFA.org


Education and Networking Opportunities to network and discuss best practices

with fellow retailers are one of the most important aspects of your association membership. Each year members enjoy several outstanding events that bring retailers together to share ideas and opportunities. During every market, conference and even online, WHFA members gather to discuss solutions to the everyday challenges of running a home furnishings business. During the Las Vegas Markets, WHFA hosts the Retailer Resource Center where members and guests come to enjoy a relaxed setting to catch up on business connections. The annual WHFA conference provides a place to learn and discuss best practices and gives members and industry partners the opportunity to discuss pertinent business issues during social events, interactive learning sessions and by the pool or bar. WHFA members can also come to the association forums, found at www.WHFA.org, to cultivate new ideas and get feedback from peers 24/7.

Your Products Program 2008 brought exciting changes and additions to

the WHFA Products Program. All product lines have been combined into one, easy-to-use catalog to facilitate simplified ordering of warehouse, touch-up and lighting products. In addition to new products, monthly specials and “pre-packaged kits” were introduced to give the WHFA members the opportunity to save even more with everyday low truckload pricing. Members are “going green” with a new line of Compact Fluorescent PAR Halogen lamp

replacement products while saving on their energy costs too! To wrap things up, the special order process for non-stock Mohawk products has been fully implemented to meet the ever changing needs of the WHFA membership.

Website WHFA’s informative website,

www.WHFA.org, is a one-stop resource for industry information. Redesigned in 2008, the new site makes it easier for retailers and industry partners to find the information they are looking for — quickly. Visitors to the new WHFA website will immediately notice the site’s enhancements. With a brand new home page, WHFA.org features intuitive navigation, expanded content and more resources.

Newly expanded sections of the website include the Safety Spot, Advocacy and online publications. The Safety Spot features important safety articles and links while the Advocacy section gives retailers the most up-to-date legislative news that affects their business. Another new feature includes an assortment of WHFA’s publications, such as the Western Reporter magazine and WHFA Member Benefits Brochure, all with interactive online viewing capabilities that can now be seen on the new site.

Along with these new sections, we have revamped our online discussion area. Created as an online community for retailers across the country to exchange ideas and receive advice, the

Western Home Furnishings Association Call Jef Spencer, WHFA warehouse manager, today to place an order.

(916) 960-0386 • (800) 422-3778

Las Vegas Market — Building B, 16th Floor, Space 1630

Introducing the new Professional Wood Touch Up Kit by Mohawk. This 237 piece kit contains a wide assortment of the supplies and tools that every professional furniture repair technician needs to create the perfect repair.

To celebrate this introduction, save 15 percent on this new kit, and ALL touch-up kits and pre-assembled assortments.

Get the furniture touch-up supplies that you need and save 15 percent for a limited time by calling WHFA today.

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online discussion forum now allows retailers to receive specific discussion threads in their inbox on topics ranging from sales to warehouse and delivery. To sign up to receive discussion email notices, visit the WHFA website at www.WHFA.org/forum.cfm and select Preferences.

Western Reporter Western Reporter magazine

continues to provide readers with relevant business articles and industry information. An online version of Western Reporter magazine was launched in June 2008. Readers can now view the entire issue online and use state-of-the-art features such as turning a page, magnifying a page, rating the issue and sending to a co-worker.

Looking Forward to 2009 We definitely understand

the importance of providing our members with the best programs and customer service and that is even more important in this economic climate. We will be investigating even more cost saving and educational opportunities for you in 2009. When business is tough you should expect your association to be there for you, providing the tools you need to survive in today’s economy and to set the stage for your future success. Creating value for our members and partners is the foundation of WHFA. Here is a preview of what we have planned in 2009.

• A litany of cutting-edge educational seminars will continue to be a cornerstone of what is offered at the Las Vegas Retailer Resource Center. Expand your knowledge and your overall market experience with a visit to the RRC and you will experience a strong impact on your bottom line. Along with exceptional seminars offered at each market, more than 50 business service providers are ready to assist you with their expertise. With software, marketing, consulting, advertising, warehousing, financing and everything in between, the RRC is the only place on the market campus dedicated to the operations of your business.

• In every way, the 2009 WHFA Conference & Expo is designed to bring you value. Value is what we know you are looking for, especially in these turbulent times. This may be the one time in 2009 that you decide to get out of your business to work on your business so WHFA has pledged value when planning every detail of conference. Travel discounts, exceptional education, an abundance of networking and plenty of time to enjoy a spectacular resort at a very affordable price, your decision to attend will provide you with the refreshing outlook you need.

• WHFA will be re-assessing its educational offerings in 2009. Technology will become a big part of our educational strategy so be sure to share your thoughts and needs with us. Webinars, podcastings, online forums, blogs and so much more make education available 24/7/365. Look for your association to branch out in many new areas this year.

You’re the boss. We’re your bank.

For merchant card processing.Bank of America is your preferred merchant services provider. Start the new year off and take advantage of our reliable services, multiple terminal options, and the following preferred pricing for WHFA members.

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• New member programs in the key operational areas of home furnishings retail that will keep you competitive and cost-eff ective. Our collective strength allows us to negotiate the best programs and costs for our members. Call or email us with your ideas and let us investigate and negotiate for you.

• Expansion of off erings in your warehouse, delivery, lighting and touch-up products programs and upgrade to our online store making it more user-friendly and convenient for you to use.

WHFA’s Financial Position In spite of a very diffi cult

economy, your association continues to maintain an extremely strong fi nancial position. WHFA was profi table in 2008 and our operational reserves remain strong. Our fi nancial strength allows us to continue to invest in new programs, research innovative opportunities to assist our members and support our organization. We will continue to invest in education and explore possibilities in new technologies that will make our members competitive in a rapidly changing business environment. Our approach to cost containment will maintain our fi nancial health and allow us to focus on providing extreme value to our members now and in the future.

It is more important than ever to lean on your association in challenging economic times. Your investment in WHFA membership will benefi t you by providing cost eff ective alternatives to many of the programs and services you use every day. More importantly you will gain the support and knowledge you need to survive and thrive. WHFA is an essential asset in working to contain costs and increase sales. Our goal is to provide you with the benefi ts that will help you simplify your business life and become more profi table. Your WHFA staff is here to help. Th ey can save you much time and eff ort in your search for the most eff ective and viable business programs.

Your involvement along with the exceptional work of our board and staff makes our endeavors possible. Our entire team thanks you for your participation in our programs, services and events. We are proud of our partnerships with our members and the industry and we look forward to serving you for many years to come.

Best Regards,

Keith Koplan2008 WHFA PresidentKoplan’s Furniture

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Brad HuiskenpresidentIAS Training

Sales contests are a means by which you can increase sales and/or profi ts while at the same time making the job fun for your

salespeople. Salespeople overall are very competi-tive by nature and it is to your advantage to make the most of this competitive spirit. Some people just want to win, not even knowing or caring what they won. Other people are motivated by what they might have a chance to win. Everyone is diff erent, but everyone likes to win.

If you structure your sales contests correctly, you will have no problem getting people involved and striving to win the game. Th e following are some very important points to remember when designing a sales contest:

Th e purpose of sales contests is to increase a statistic or improve the result of tasks. Th ere is no need to give away free money or incentives just to give it away. A contest must be designed to improve some statistic.

Run individual sales contests frequently, team contests occasionally and major contests once a year. Th ere should always be some type of contest or action happening on the fl oor. In order to increase team spirit, run a team contest. Run major contests during slow times as opposed to your busiest time of year.

Th e best sales contests are structured so everyone can win. I want people competing with themselves rather than with other salespeople. When people compete against themselves, you avoid a lot of over aggressive, internal turmoil.

Have the sales contest rules written and posted. When the rules are written and posted, you avoid any misunderstanding about specifi cs of the contest. I would also add a line that says any controversy concerning the contest will be decided by the sales manager and that decision will be fi nal.

Sales contest should be structured as short bursts of energy. Run several contests during the course of your busiest day or a daily contest and keep the ideas fresh and updated.

Sell the sales contest to your staff . You will have to sell the contest to the staff and remind them of the contest through its run.

Play up the contest with written and posted tracking of progress. With contests that run for more than a day, have visual progress posted. Using a poster with a thermometer, pie chart or graph works just fi ne.

Th e prize or award for the sales contest must be of value to the individual. How do you fi nd out what would be of value to your people? Ask them. At seminars, I ask a group, if I were to run a contest, and the prize is $500 worth of something, which of the following fi ve choices would you want the most? $500, in cash, $500, in paid time off , $500 in store merchandise, $500 in something you wouldn’t normally buy for yourself, or $500 in Lottery tickets? If you have more than fi ve people you will probably get fi ve diff erent answers.

Th e prize or award doesn’t always have to cost large amount. You might be surprised at how little you really need to spend on a contest. A car wash, lunch, verbal praise, written recognition, added responsibility, preferred schedule, additional store discount, etc. all cost very little, but will go a long way in rewarding your staff .

Change the teams for every contest. If you run team contests make sure you change the teams up on a regular basis. Th is will increase your total teamwork and get everybody working together.

Statistics, competition, contests, rewards and positive feedback make the job fun.

Contest / Games IdeasCash Box – Put equal denominations of

bills ($1, $5, $10, $20, $50, $100) in a box. For example, $300 worth of each denomination. Each time a salesperson sells an add-on, converts a turnover, converts a repair or service customer to a sale, sells a piece of obsolete merchandise, receives back a referral business card, etc., they

Sales Contests

Hear Brad speak Tuesday, Feb. 10 at the RRC during Las Vegas Market and at WHFA’s 2009 Conference and Expo in Maui, HI, May 17 – 19, 2009. Visit www.WHFA.org for more details.


amount of money divided based on the hours worked in the given time period. For example, if the store record for the largest single day were broken then each person that worked that day would receive his or her share based on dividing the total man hours of the store for that day by the individual’s hours. Salesperson A worked eight hours and the store total was 32 hours — Salesperson A would receive 25 percent of the prize money. If an individual record was broken, then the individual that broke the record would receive a predetermined amount for breaking the record. Predetermine if a record can be broken several times during a period of time by different people or if one new record can be set per the time period. Keep consistent when determining rules.

Darts – Set-up a dartboard or a dartboard wall with pieces of paper or balloons with prizes in the balloons. Each time a salesperson accomplishes certain pre-determined tasks or levels of productivity the salesperson throws a dart to determine the prize or award. Should the dart miss the paper or fail to pop the balloon no prize is won until the next opportunity.

Race Track – Set-up a racetrack where each salesperson is given a horse, car, dog, etc., to race. Divide the racetrack into sections. Each time a salesperson accomplishes a certain pre-determined task or level of productivity they are awarded a certain number of sections of the track. For example, a sale over $1000 would be worth two sections while selling two items on one ticket may receive one section. Prizes or rewards are given for a certain number of laps or winning of the race etc. depending on the rules of the contest. Again, the best contests are set up so that everyone can win.

Author, trainer, consultant, and speaker Brad Huisken is President of IAS Training. Mr. Huisken authored the books “I’M a salesman! Not a PhD.” and “Munchies For Salespeople, Selling Tips That You Can Sink Your Teeth Into,” he developed the PMSA Relationship Selling Program, the PSMC Professional Sales Management Course, The Mystery Shoppers Kit, The Employee Handbook and Policy & Procedures Manual, The Weekly Sales Training Meeting series along with Aptitude Tests and Proficiency Exams for new hires, current sales staff and sales managers, along with the new Weekly Internet Sales Training Series. In addition, he publishes a free weekly newsletter called “Sales Insight” For a free subscription or more information contact IAS Training at (800) 248-7703, [email protected], www.iastraining.com or fax (303) 936-9581.

will be allowed one pull from the cash box. The pulls should be done as a group at the end of each day. The salespeople are to bring documentation of the sales that entitle the salesperson to pull for the day. In a group, with management present, each salesperson will take their pulls for the day. Should a salesperson pull out two bills, both bills should be dropped and a new pull will be taken. Folding or marking of certain denominations of bills will not be tolerated and will cause the responsible person to be excluded from the contest. Real currency can be substituted with monopoly money if need be. Other options would be to give people a spin of a wheel or roll of the dice with prizes or monetary rewards attached to the spin or the roll.

Pass the Buck – The first person making a sale on a given day will be given a certain denomination of money. When a larger sale is made during the day, the person with the money will then pass it to the person making the larger sale. The process continues until the end of the day at which time the person with the largest sale for the day retains the money.

Know Your Customers – Each salesperson will receive a certain denomination of money for each completed Customer Profile Card. A completed profile card will contain the following information: name, address, telephone, birth date, anniversary (if applicable), with permission for a follow-up telephone call or email for a future appointment.

Recruit a Customer – Each salesperson will be given a certain reward or denomination of money for each new customer that comes into the store with his or her business card. Cards handed out in the store will not apply. Business cards passed out off-site of the store are the only business cards that will apply. Business cards handed out outside the store will be marked in a specific manner to show they were given outside the store.

Get Rid of It – Each salesperson will be given a certain prize or denomination of money for each ____ number of pieces of obsolete merchandise that they have sold during a week or month.

Record Breakers – Determine and post the store records for largest dollar: day, week and month, along with the same for an individual salesperson with the addition of the single largest dollar sale. Each time a store record is broken the entire team shares in a predetermined

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Interested in becoming a part of Fast Forward?

Visit www.WHFA.org and click on the Fast Forward logo or contact Kaprice Crawford at (800)422-3778 or [email protected]. You can also participate in monthly discussion forum topics on the WHFA website.

Your Next Generation of Retailing

fast forward

Want to ruin your family business in a hurry? Here are some common mistakes that can lead a family

businesses from riches to rags.

Owning a business is hard work. But when your business is a family business,

the number of problems and pitfalls multiply exponentially. Just one misstep is enough to send your company careening into oblivion, so you had better know what the mistakes are before you make them.

Family Relationships vs. Working Relationships

One of the most common — and most deadly — mistakes in a family business is to assume that tight knit family relationships will translate into eff ective working relationships. Unfortunately it doesn’t always happen that way. Kids who admire their parents outside of the workplace can suddenly start second-guessing their father’s decisions when he is their boss, and siblings who are inseparable at home can quickly become caught up in interoffi ce jealousies and petty rivalries. To be fair, some family relationships do actually strengthen working relationships in family businesses, but you need to evaluate the situation on a case by case basis.

Full Family EmploymentAnother common mistake in family

companies occurs when the owner feels it is his responsibility to employ every family member who wants a job. Full family employment is not a realistic goal for a business. Some family members are qualifi ed to fi ll roles in the organization and some aren’t. Rather than hiring people based solely on their DNA, hiring decisions should be based on the individual’s education, experience, and competency to fulfi ll job requirements. If you have a hard time turning down family members, fi nd a non-related individual in your company to take the lead in personnel decisions. You may even consider helping non-qualifi ed families gain the qualifi cations they need to fi ll the position at some point in the future.

Family Business Mistakes

fast forward



Visit www.WHFA.org and click on Fast Forward or contact Kaprice Crawford at (800)422-3778 or [email protected]. You can also participate in online message boards on the WHFA website.


Visit www.wHFA.org and click on Community > Next Generation: Fast Forward or contact Kaprice Crawford at (800)422-3778 or [email protected]. You can also participate in online discussions on the WHFA website.

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WHFA Members: To obtain a Labor Law Poster, contact

your WHFA membership representative at (800) 422-3778.

State & FederalLabor Law Posters

Avoid Fines & PenaltiesEach year federal and state employee laws change. The WHFA Space Saver Poster is only $39.95 for members and has all federal and state labor laws on one compact 38” by 24” poster. This poster is long-lasting, printed with fade-resistant inks and laminated. The posters are registered with the Library of Congress and will help you prevent fi nes of up to $17,000.

Lack of ProfessionalismFamily businesses are notorious for lacking professional

decorum. Although your workplace may be teeming with relatives, it is still a workplace and it demands a certain amount of professionalism to run smoothly. Family politics and family discussions are not appropriate and can make non-family members feel uncomfortable. Along the same lines, interactions between family members should refl ect business protocols rather than familial ones. Even though the business owner may also be the family patriarch, the way he interacts with family members at work should be similar to the way he interacts with other employees – not the way he interacts with his family at a summer barbecue.

No Succession PlanDo you know who will take over the business when you

retire? More importantly, does everyone else know? Family businesses experience high failure rates during periods of generational transition. Transition problems are exacerbated when the current owner fails to adequately prepare for the transition by neglecting to name a successor early and decisively. If squabbles and disagreements arise over the successor, at least an early succession plan buys time to resolve infi ghting before the transition actually occurs.

Input from Younger GenerationsFamily businesses involve the entire family, including

members of younger generations. Since older generations usually occupy the top of the pecking order, the insights and suggestions of younger family members are often ignored. When generational transitions occur, the younger generation immediately implements their ideas, typically in broad, sweeping changes that are detrimental to the organization. A better approach is to involve younger generations in the decision-making process and implement their ideas gradually rather than all at once.

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American General Finance .........................................9 .............................. (800) 422-3778

Argo Select ..................................................................14 ............................. (800) 422-3778

BA Merchant Solutions ...............................................31 ............................. (800) 422-3778

B&B Banker & Brisebois Advertising ........................32 ............................. (800) 456-0210

Emerald Home Furnishings ........................................2 .............................. (800) 685-6646

Furniture Transport Group .........................................35 ............................. (800) 438-8244

Furniture Wizard .........................................................11 ............................. (619) 869-7200

High Point Market .......................................................22 ............................. (336) 869-1000

JRM Sales & Management .........................................25 ............................. (678) 574-5541

MicoD Inc. ...................................................................26 ............................. (800) 964-3876

PROFITsystems, Inc. ................................................4 & 39 ......................... (866) 453-5010

Retailer Resource Center ...........................................16 ............................. (800) 422-3778

ServerLogic..................................................................37 ............................. (866) 835-6932

Simmons Company ............................................ Back Cover...................... (510) 357-2230

TruckSKIN ....................................................................24 ............................. (877) 866-7546

WHFA 2009 Conference & Expo ................................7 .............................. (800) 422-3778

WHFA Membership ....................................................29 ............................. (800) 422-3778

WHFA Warehouse Products ......................................30 ............................. (800) 422-3778

advertisers index

Please sup port the ad ver tis ers that support your magazine.Advertiser Page Phone

& fi guresfun facts

advertising inquiries & ratesContact: Cindi Williams, WHFA Events Manager, 500 Giuseppe

Court, Ste. 6, Roseville, CA 95678. (916) 960-0277 E-mail: [email protected]. Subscriptions: $35.00/year, USA.

Published by Western Home Furnishings As so ci a tion, a Na tion al Home Fur nish ings As so ci a tion af fi l i ate, in the in ter ests of retail home fur nish ings deal ers, man u fac tur ers, distributors and sales people.

Dis trib ut ed to retail merchants han dling furniture, accessories, bedding, fl oor cov er ings, and spe cial ty home furnishings in Alaska, Ar i zo na, Cal i for nia, Colo rado, Hawaii, Idaho, Mon tana, Ne va da, Oregon, Utah, Wash ing ton and Wyoming. Mail ing list com piled by WHFA.

Of fi cial publication of Western Home Fur nish ings As so ci a tion, which is responsible for editorial content and advertising policy. The views ex pressed in ar ti cles ap pear ing in West ern Re port er are not nec es sar i ly those of West ern Home Furnishings Association. Western Reporter magazine is copy right ed by Western Home Furnishings As-sociation. February 2009, all rights reserved.

Western Reporter: Read by Retailers in the West

distribution:Western Reporter is read by more than 10,000 home furnish-

ing retail store personnel han dling furniture, ac ces so ries, bedding, fl oorcovering and specialty home furnishings in Alaska, Ar i zo na, Cal i for nia, Colo rado, Hawaii, Idaho, Mon tana, Ne va da, Oregon, Utah, Wash ing ton and Wyoming.

marketing philosophy: West ern Re port er fo cus es on west ern market trends in the

fur ni ture, bedding, fl ooring and ac ces so ries industry. It high lights in dus try fi nance, state leg is la tion, retail store layout and design, trans por ta tion, retail ad ver tis ing trends, retail store computerization, in sur ance, suc ces sion planning and industry social events.

Are you getting bored of having the same old tired sales each month? Below are just some of the many “observances” that are celebrated monthly.

Get creative and create some fun in-store sales, charity or community events centered around a not so standard holiday. Last month’s issue covered the months of January through July.

AugustNational Immunization Awareness MonthSimplify Your Life Week (August 1-7)

SeptemberNational Chicken MonthFamily Day (September 22)

OctoberNational Breast Cancer Awareness MonthEat Better, Eat Together MonthNational Cookie MonthNational Pizza MonthNational Popcorn Month

NovemberAmerican Diabetes MonthNational Peanut Butter Lovers MonthNational Family Week (November 22-28)

DecemberNational Stress-Free Family Holidays MonthIdentity Th eft Awareness & Prevention Month

“We own a casual furniture store in Oregon. Last September we ran a promotion around the National Chicken Month theme. What a great success! We had local chefs come in and teachcustomers diff erent chicken recipes using barbecues and accessories. It was a lot of fun and customers who bought merchandise during the event received 10 percent off . Win-win-win for all — customers, local restaurants and us. WHFA Member since 1998

“ “

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Documents

Western Reporter—February 2009