Are Products Bringing You Down?

Some of your company’s product segments and brands are profitable.  

Some of your company’s product segments and brands are a drag.

What is a small business owner to do?

Sit down and grab the beverage of your choice.

Comfortable?  

Now list the under-performing product segments and brands that are not meeting your company’s minimums.  Those minimums can be profit, service, style laggard. Whatever you think makes them a drag on your brand.

Then list if each product category is a target market essential or an accessory product category.  Please make this black and white, not gray; either you have to have it or you don’t.

This simple exercise will allow you to see what is causing you grief.  You decide: live with it, remove it, or improve it. Then get on with your day-to-day.  You have done what you can. Do not allow yourself to stress over it any longer.

No More Boring Retail Showrooms, PLEASE!

Great showrooms are memorable. Good showrooms have a few special products scattered about. Bad showrooms are well, boring. I believe those that take risks with their product and product presentations are more memorable and will win more customers in the long run.

A majority of today’s Internet shopping sites present a vast array of products that are easily viewed on your screen, but a customer is still not able to feel the material and see how colors pop in person. Luxury clients enjoy visiting creative spaces to see, touch and shop for beautiful products. This is why people leave their screens. This is why people seek out great brick and mortar showrooms.

So, what is a great showroom? A popular definition is one that continually both surprises and delights its customers with its engaging ambiance and inventive product mix supported by talented salespeople and five-star service. Simple right? Unfortunately nothing that can be labeled great is simple and therein lies the challenge and fun, yes FUN.

Your luxury showroom is catering to designers who fly all over the US and Canada and enjoy antiquing in Paris. If your showroom is populated with gray and white factory displays and has not had a colorful addition in months, these good customers will visit once and move on. They do not need to shop in your place, there are plenty of other boring showrooms within driving distance. If your showroom is to make their go-to list, you must let them know you are willing to take chances by showing new, unique, even startling products and learn what they crave today

The next step is threefold:

  1. First and most important: before you start working on numbers two and three, you must set a regular time, I suggest monthly, to quietly walk your showroom looking for ways to make it great. I suggest focusing on: 
    • Displays that are tired and need updating.
    • Displayed products that are not selling, boring and need to be replaced.
    • Discovering places where you can add an attractive display, small or large. This display should both provoke your salespeople and captivate your good clients.
  2. Second, commit to #1 above and start having fun in your showroom working to make it full of surprise and delight.
  3. Finally, start learning what you customers purchase and discover what they are dreaming of. This comes from your sales data and setting up opportunities to talk with your good clients. We will dig deeper into this in following post.

Now, let’s get to the fun part.

“The one thing we all agreed on, our chief aim, was to be totally unpredictable and never to repeat ourselves,” Mr. Terry Jones of Monty Python’s Flying Circus.

So why not have a bit of fun in your showroom. I am not saying that you have to completely redesign your showroom with a Candyland color scheme, but use your imagination and create punches of color and inventive product vignettes that will challenge your repeat clientele, intrigue new shoppers and keep your sles people hopping. People love to see and touch shiny new things.

One note of caution: bold displays lose their edge over a period of 6 to 9 months. Construction should be simple and easy to change out. Paint and wallpaper are easy to change. Also, try to work with vendors that understand that products in your bold settings will increase the visibility of their brands and increase bands awareness.

Luxury showrooms are there to delight and challenge their good customers, so make some changes and get out of the white and gray palette. It is really dull.

P.S: A good play here is to allow a good, strong willed, designer to design the vignette. This helps them extend their brand’s reach and you will presents a new look to your clientele.

P.S #2.: Those daring displays will play great on social media. If you can set six and change one out every month, you will always have interesting content for you and your customers to share.

A version of this article appeared in the January 31, 2020 issue of the DPHA’s newsletter, Connections.

Related reading: From Nielsen.com: Battle of the Brands: Consumer Disloyalty is Sweeping the Globe

Where is the Space?

So much of bricks and mortar merchandising is about the products we sell.  We vehemently believe we have to have a lot of them. We have to have more than that other company  If we have some empty space, we find something to fill it ASAP. Imagine a pawn shop case versus a product presentation at Tiffany.  The product quality could very well be the same but the presentations are so very different.

Why do we do this??  Is more really better?  Is there to be no place for the customer’s eye to rest and download all these products? 

It is no wonder that people will continually buy the same products over and over.  With such an onslaught of products we are not able to notice something new, something that might be better for me and my needs.  

We have grown so used to going to the store to buy, not shop; we get just what is on our list and get out.  Never thinking to see what might be new and interesting.  

Instead of working to make sure every little space is drenched in product, why not focus on improving the presentations of what sells and where we make more margin.  Big brands are nice but I think making money is better.  

Why not incorporate an interactive screen where customers can swipe to see what is new in the store?  Why not mark new products where they sit on the shelf? The combination of the two will let customers know that you are the source for what is new and innovative.  

Anybody can show a lot and sell, sell, sell, play the price game and hope to survive on razor-thin margins.  If you work to tell your story and help you customers discover new products, you will set your store apart and above.  Your store will be THE source for product and information. The brand that attracts customers that are looking for new, better and different.  

These customers will pay a bit more for finding the new, the unique, the cool products…not the same old, same old.

It's Holiday Time, Yipee!

Image by mohamed Hassan from Pixabay
I hope everybody had a lovely Thanksgiving.  A wonderful holiday allowing American families to pause for one day to celebrate the passing year’s blessings. Then consume mass quantities of delicious food.   

As Thanksgiving fades into memory, Christmas Day is on its way.  The massive barrage of advertisements for Black Friday, Small Business Saturday, Cyber Monday, Giving Tuesday have passed and they have been replaced by a consistent torrent of emails, ads and banners telling me that I can only have XX% off if I buy now!  It is all so annoying. 

Outside of that noise, I do enjoy holiday shopping.  I love to discover just the right gift for my family and friends.  Each gift I select has deep logic behind it, and I know it is something they never would purchase for themselves and will treasure for years.  I hope to watch them peel back the shiny paper and see a bit of delight on their faces when they discover what it is.  I love that look!  Then sometimes they unwrap the gift and look at me, what the….?  Off to the return counter.

The important thing is that my time searching, not dealing or discounting, is time that I spend thinking about the wonderful people in my life and in small, very small, way give them a bit of Holiday joy.  
 
Happy Holidays!  
 
Ohh, P.S.  As the 2019 Holidays pass, all will turn to talking about 2020.  Before that happens, find a moment and congratulate yourself, yes you, for all the hard work you did in 2019.  Every once in a while, it is good to look in the mirror and say, great job, well done!  Cheers
A version of this article appeared in the December 20, 2019 issue of DPHA Connections.

Tinder In My Showroom?

“I like that but could I see it in this tone of yellow?”  How often have you heard this on your showroom floor?  

This is a question that has been haunting showroom salespeople for decades and, I think, we just might have the answer.  At the 2019 Lightovation show at the Dallas Market Center, a leading luxury lighting manufacturer had strategically placed 4’ x 3’ interactive touch screens amongst its spectacular products.  The screens were programed so the user could simply swipe right to easily move from image to image.  Even amongst hundreds of beautiful lighting fixtures, these screens, with their larger-than-life images, were the draw.  An EXPERIENCE garnered more interest than the actual product.  People would stand and swipe to their heart’s content as the images were quickly delivered from its huge database.  Yes, it was a large screen that was the star of a show attended by the purchasing agents from the top lighting showrooms in the United States and Canada.  Not a specific fixture, product series or brand, but a SCREEN.  Are we focused on our screens or what?

Brick and mortar showrooms are not going away, but if a physical luxury showroom does not incorporate a 21st century experience, that will hurt its image.  Imagine a customer walking into your showroom and heading straight for the interactive screen.  In a matter of minutes, they are flipping through your products as fast as they can swipe.  Customers travel to your showroom to interact with the actual product and still want to be able to see everything imaginable.  They want to experience the best of both the physical and digital worlds in your showroom.

When a customer asks what this faucet looks like in another finish, no problem.  You can show it to them on your 4’ x 3’ screen.  You cannot physically show it all, but you can show a large image of your customer’s dream look by simply accessing your mighty, mighty database. 

The answer is to bring the internet power into your showroom.  Slap a screen on the wall and voila, millions of product images are alive!   Unfortunately, it is not simply plug and play.  It will take some programming, and access to properly configured vendor databases to make this dream a reality.   

When I returned home, I did a little digging and discovered these two “Kiosk” companies.  It seems kiosk is the preferred terminology in the self-serve retail world, as opposed to large touch screens.

Also note, these company’s understand that your screen needs are different from McDonalds and they have programers ready to deliver what will surprise and delight your customers.

I believe kiosks (screens) will be a big showroom draw and expand showroom offerings to infinity and beyond…

A version of this article appeared in the December 13, 2019 issue of DPHA’s Connections

No, No, Not That Mask, Oh Vendor, Oh Vendor!

A large vendor had just entered our market and we were just crushing it.  We had no displays. When a customer sounded interested, we brought them into the warehouse and opened boxes to present the products.  Every time, the product captivated both the customer and the sales associates.  This was going to be good.  

Then, the corporate mask descended over the product line.  The rules and conditions of their “program” appeared.  To become a full-fledged distributor, you HAVE to display this, and it MUST be supported with these products.  Oh, and the display WILL look like this.  

A large portion of the line was not for our customer base, and the display looked like an alien spaceship.  It was…unique.  We pleaded our case and were politely informed that they would think about it.  A few months later a quasi-competitor brought in the entire program and we were told to order from them.  By then, sales had diminished to nothing.  It was an opportunity missed.  Even more frustrating for me was that I had done the same stupid thing in my early years at Phylrich.  It was a hard lesson learned.

Each DPH showroom is unique for the simple reason that they are all owned and managed by confident, assertive individuals.  On paper, luxury businesses may focus on the same target markets, but their styles, product mixes and cultures are crafted by their owner.  Today they are referred to as entrepreneurs.  They are not generic individuals, their businesses are not generic businesses and they should not have to follow a generic program.   

Let’s also not forget the premium and luxury market clientele, whom many of showrooms target.  Interior designers and style-conscious homeowners do not gravitate to “factory displays”.  Stylists and style lovers are attracted to knowledgeable people presenting dynamic displays.  I cannot even begin to number the times a person of these talented professions would tell me that they were so turned off by that sterile “generic display”.  

Please do not make successful showrooms wear the corporate mask of what a remote merchandising person concocted as best for the general market.  There is not one general luxury market.

Meet with your distributors and co-create a go-to-market strategy backed with numerical goals and targeted market penetration.  With a program in place, both parties can get to work and make it happen.  Please stop trying to put a constraining mask on a successful entrepreneur and their company.  This is a sure-fire path to mediocrity.

So on November 1, 2019, after the ghosts of the past have settled back home, let’s stop with the black and white ideas and rote proposals and let’s work together to surprise and delight the style-conscious individuals by removing the generic mask and let the showrooms unique style shine.

A version of this article appeared in the November 1, 2019 issue of DPHA Connections.

Did You Know Design Professionals are Purchasing 47% Online?

Photo by TOPHEE MARQUEZ from Pexels

Anna Brockway, co-founder and president of Chairish shared the following data in her presentation at Business of HomesFuture of Homes 2019 Conference in New York.

  • 84 percent of professional designers start their sourcing online.
  • 81 percent of designers buy high-end items after first viewing them online.
  • 47 percent of all products in a typical design project are purchased online.

After sharing the data, Ms. Brokway reflected. “Considering that furnishings are the third-largest spend after the household itself and cars, the shift to online should come as no surprise.”  I would venture that any significant purchase somehow involves the Internet. 

Before you start looking for a buyer for your showroom let’s dig in a bit.  These statistics do not say where the designers spend a majority of their time shopping nor what type of website the purchases were made.  Were they purchased from internet only sites or the internet site of their preferred showrooms? We continually hear that customers want to buy when and where they want.  In a designer showroom, on the phone, by email or online. Your showrooms must be where your customers are. Your showroom and team is the most knowledgeable in your market and it is time to investigate a digital expansion. I think it is time for designer showrooms to better understand their target customers and what they expect.

I suggest meeting them individually, starting with the key interior designers in your market.  Please do not only select designers by dollar sales. Quite a few designers use a DPH showroom to make or confirm their specifications and then send the specification list to the homeowner or the build or the plumber.  You know who I am talking about.  

Here are some helpful questions to get what you both need to work together effectively:

  • How can we improve our bricks and mortar showroom to make it easier for you to work with and without your clients?
  • How can we improve our website to make easier for you to work with and without your clients?
  • Many “A” designers ask their clients to visit specific websites and note what they like.  It is a big time saver.
  • Do you want access to your quotes online?  If so, what information do you need?  
  • What information would you like us to send you in a monthly product DPH update?  New Products? Best projects finished? Top sales people selections and comments…

Take all that glorious information (data) and save it. 

Then repeat the process with the builders that build what your top designers specify and might be purchasing.  This is not about only your good builder accounts. Talk with those that are in your target market even if they do not buy from you.  You will learn a lot. 

Now you have a lot of data that you need to work through and decide what your next steps will be.  

This is not the simple path but, I strongly feel, an important opportunity to grow your business.  It would be a shame to let this business go to another just because your bricks and mortar business is so strong but missing business that you can capture on the Internet.  The Internet is not going away and it will continue to gain market share.

A version of this article was published to DPHA’s Connections 10/18, 2019, https://dpha-sales-thoughts.blogspot.com/2019/10/welcomed-thoughts-from-fellow-jeff_16.html

If It’s New, Display it!

Photo by Daria Shevtsova from Pexels

If a solid vendor releases a new product, put it on display. No debate. Get it on the floor ASAP!

It is not about your taste, your style or what you think is hot. How many times have you heard the phrase, “I cannot believe they bought that!” There are fabulous tightly-focused luxury showrooms that are directly reflective of its owners’ style.

Roman and Williams Guild is directly derivative of the design style of the Robin Standefer and Stephen Aleshch. They curate the store’s collection of just about everything for the home with their style filter. This curation is also seen at stores such as Room & Board, Rejuvenation Hardware and Blu Dot Design.

They all have their design niche and stick to it. However, if you are to succeed in one or two home product groups, such as luxury plumbing and hardware, be known to have all the latest and greatest. How many times have I heard a showroom saying, “No one will buy that,” and it ends up being the hot look for the year. The truth is we do not have any idea what Mr. and Mrs. Smith will fancy, but it is up to us to make sure we can find it.

Sure some of the new designs die ugly deaths, but that is not the point. If you think every brand always hits the right note, think again. I am not going to dig deep here, but I would postulate that if a designer or go-to vendor hits one out of four, they are in rarified air. 

Our market is too small to only show Euro-modern or transitional. At Phylrich, the great dolphin and swan series only accounted for 2% of product sales, but 7% of dollar sales. We never know what look will ignite a passion in a client. Show the new as long as you can. If it is only a fabulous dust collector, then move on. But if it hits a certain cord, Wahoo.

If I am a successful distributor of a quality company and they invest all the money and time to create a new product line, I will put it on display. In fact, we had the rule with our good representatives that if this brand introduces a new product, get it on order. We wanted to be the first in town to display its new look.

P.S. Vendors: If your good distributors follow this path, you should make sure they are supported in their willingness to get your new products on display. A DPH vendor’s best marketing is making sure the best salespeople in the best showrooms have its latest and greatest on display. Without the display, sales are tough.

Except for a few heavyweights, luxury DPH showrooms are poor marketers. Yell and scream all you want, but it is true. It’s not that we cannot market. We do not have the funds to do so. Five percent of $15 million is a lot less than 5% of $100 million. Heck, running a basic digital marketing package runs between $7,000 to $10,000 a month, not including website maintenance. To reach the design and building trade along with the interested homeowner takes coordination between factory and showroom. Both need to work together to get the word out.

Our strong calling card to our design and trade accounts is our function and deep product knowledge. If the Smiths want a faucet they saw in Domus magazine that is manufactured in Denmark and not yet available in North America, we get it. 

If it is out there, we will find it and make sure it will work as specified.

If it is new, show it and share the story with anyone and everyone.

Anonter version of this post appeared in the November issue of Supply House Times.

Do You Have Anything New to Show Me?

Photo by bruce mars from Pexels

The Zippy Brand just added a great new series – its unique design is perfect for today’s popular minimal, transitional, punky look. The displays arrive and you set them in Zippy’s branded display area and educate your sales team. All is going to be great!   But hold on a minute? Do your key customers know that you just added this magnificent product to your showroom?  When AB Killer customer enters your showroom, will they notice this new amazing series nested among your other branded displays? I think not. 

The purpose of your never-ending journey to discover, sell and support the latest and greatest is to separate your business from your fast-following competition and keep your customers keenly aware that you are the primary source for your targeted market latest and greatest.  Your educated client base feeds on new products and, if you position your showroom as the leader, they will be looking to you to keep them the know. Getting the word out is not complicated. I suggest doing the following: 

  1. Designate an area in your showroom for new products. It should be close to the main entry or the area where most customers conjugate. The new products should be displayed on a table or a simple retail-tiered display. If an individual product is too large for the space, frame a vendor glory image and add a note on the bottom noting the product’s showroom location. Do not over think this. It is about getting the product noticed, not about the display itself.
  2. Use your email list. Send out a monthly email with new product images complemented by a quick brand note. Email service providers such as Constant Contact and Mail Chimp offer minimal templates that are simple to use.

The challenge is to make the time to set up the display, keep it current and build your new product monthly email. Heck, you might even find a vendor or two to share some co-op money.

Also published on the Decorative Plumbing & Hardware Association’s Connections Blog: Welcomed Thoughts from a Fellow (Jeff Valles): Do You Have Anything New to Show Me?