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Tuesday, April 10th, 2012

360 Degree Pass-by

One good thing about being on the road is that when you return to what’s familiar, you have a fresh perspective. After a few days away we always see our office in a different light, and we usually make a few positive changes. Time away from our office allows us to see it more clearly through the eyes of our clients: the furniture placement that made sense when we left town now looks unbalanced, and those piles of paper on our desks that we always plan to get to, but somehow never do, just make our office look disorganized and, well, messy. Sometimes you just have to step back and be your own customer.

If we’ve said it once, we’ve said it 1,000 times: there is no reality in retailing, only perception—the customers’ perception of your store is the only one that counts. You can have the best product at the best price, fabulous, caring and knowledgeable sales associates, great sales and even better in-store events BUT the second a customer walks in your door and finds you having a bad day, their perception changes. And usually not for the better. We all make an unconscious value judgment about the stores we shop in within the first 10 seconds of contact. It isn’t fair but it happens. That’s why you have to constantly be on guard about how your store looks through your customers’ eyes.

How often do you look at your store through the objective eye of the customer? Notice that we said “objective”. You’re not being objective if you look at a really tired display and think, “Oh, that display is a mess, but I still need to sell more of that product. I can leave it up another day or two.” No, you can’t. Customers will look at that same display and think less of your store. Ideally, you should do an in-depth tour of your store at least once a month, but to keep things in balance, do a 360 Degree Pass-By each morning before you unlock the doors for business. The parking lot is a good place to start.

Survey the Parking Lot: Is the parking lot easily accessible? Are store associates cars parked in the best spaces? Is the parking lot clean and brightly lit?
Size Up the storefront: Does your storefront require paint or repair? Is there clutter to be cleaned up or exterior displays to be reorganized? Have the flowers in your planters seen better days? Can customers easily see your storefront sign? Are all the bulbs in working order? Are your windows clean and free of old signs? Do the window displays need some attention?

Access the Decompression Zone: The Decompression Zone (DZ) is the 5 to 15 feet just inside the front door of the store. Its purpose is to slow down rushed and distracted customers so they can concentrate on shopping. Is your DZ uncluttered, inviting and easy to navigate?

Work Your Speed Bumps: Do your Speed Bump displays—small tables loaded with home décor items or a small, inviting, and completely accessorized, room setting placed just beyond the Decompression Zone—need to be fluffed or re-stocked? Work your Speed Bumps—they sell product. These displays should be changed at least once a week.

Power Wall Ahead: Look Right: 90 percent of shoppers will enter the store and look or turn to the right—that’s where you’ll find your main Power Wall. This is a premium location that is highly visible and heavily shopped; it should be used to merchandise hot product stories, new items, and high demand items. Are your Power Wall displays set to sell? Do they need to be re-stocked or re-merchandised?

Review Your In-store Signage: Does your signage reflect the style and personality of the store? Can customers easily read them? Is there old sale or product signing that needs to be removed? Are there hand-written signs with cutesy references to breakage and unwatched children present that need to go away?

Check Out the Cash Wrap Counter: Is there enough room at the cash wrap for a customer to comfortably complete the transaction? Are there impulse items displayed at the cash wrap to encourage add-on sales? Is there an interesting display behind the cash wrap counter that will keep customers thinking about product? Is your policy and procedure signing customer friendly?

Walk the Aisles: Is there product spilling over into the aisles? Are there dump displays blocking the main aisles? Can customers easily maneuver a stroller, wheel chair, motorized chair down the aisles? Can people comfortably pass one another throughout the store?

Survey Your Merchandise Presentation: Are your displays fresh? Do they encourage customers to stop and look, and entice them to buy? Are there empty spots that need attention or empty shelves of accessories that need to be restocked? Is the product “faced” (brought to the front of the shelf or hook)? Are there bin tickets missing?

If you do a 360 Degree Pass-By each day, you will soon become attuned to things that are out of place or need your immediate attention. Once a month dig deeper with KIZER & BENDER’s No-Fail Perception Exercise: Look at the same things that you review during your daily 360 Degree Pass-By. During this exercise, you will spend more time observing each area.

Don’t fix, move or adjust anything in the store before you do this exercise. You want a clean vision of what the store really looks like on a typical day. Survey your store during regular business hours—not before opening or after closing. You want to do this exercise while customers are in the store shopping.
Dress in the same attire as a typical customer. If it’s cold outside, put on a winter coat. If your customers tend to shop with children, haul a diaper bag with you. You want to recreate the customers experience as closely as possible.

Don’t just put on your coat and walk out the door. Hop in your car and drive down the street. Re-enter your parking lot and drive by your store from all directions so you can see it from different perspectives.

Carry a notepad and make a list of things to do; you can prioritize your list later and make changes as necessary. You might even want to ask a store associate to do the same exercise—you can compare notes later.

Remember that perception becomes reality. If you do not control how your store is perceived, it just might get away from you. Customers will create their own perception of your store and you might not like the one they choose. Your daily diligence will help ensure that customers see your store as you want them to see it. That alone is worth the 10 minutes of time it takes to do a daily walk-thru!

© KIZER & BENDER . ALL RIGHTS RESERVED Rich Kizer and Georganne Bender, Kizer & Bender Speaking! are professional speakers, authors and consultants whose client list reads like a “Who’s Who” in business. Companies internationally depend upon them for timely advice on consumers and the changing retail market place. KIZER & BENDER are well known for their unique and intensive consumer research. Any speaker can talk about customers, but Georganne and Rich actually become them. Contact Kizer and Bender at (630) 513-8020 or www.kizerandbender.com.

Monday, April 9th, 2012

Trust Training—Setting The Stage For Effective Sales Training

There are many challenges for home furnishing retailers, but arguably, the biggest challenge is not competition, merchandising, or marketing. It’s sales training.

None of the other efforts that retailers make account for anything if the product is not sold. There is an inverse ratio between RSA (Retail Sales Associates) competence and “just lookers”.

Most retailers understand this and have terrific ongoing sales training programs.

It’s important to note the dramatic difference between training for mattress sales as opposed to home furnishing sales. The reason? It’s the shopper’s attitude and mindset that makes the difference. Consumers think of mattresses as utilitarian and they approach the process using intellect logic and reason to discern value. Whereas home furnishings shoppers typically are motivated to upgrade their lifestyle and emotion plays a big role. RSA’s need to be trained to know the difference and to be able to adapt accordingly.

But there is an overarching issue that, if acknowledged, focused upon and incorporated, can set the stage to make all sales training more effective. TRUST.

At the end of the day, most shoppers elect to buy from a sales associate they like and trust. Trust is achieved through competence, being up to the task, conscience, having a core set of principles, and concern, caring for others’ well being.

Trust is the intangible and transcending assurance that creates loyalty and compels people to buy with confidence. The assumption is if the RSA is trustworthy, it’s likely the company and brand are trustworthy as well.

Can trust be taught? Actually, yes it can.

I call it Trust Training: a holistic, comprehensive approach to sales training that involves all three aspects of each individual: Mind, Body and Spirit…

The 3 P’s of Trust Training

1. Perspectives (What we know)
2. Practices (What we do)
3. Principles (Who we are)

Perspectives

Consumers trust confident, knowledgeable sales associates. Perspective skills training should be an ongoing evolving program to raise the competency level of all associates and should include the following:

Product knowledge: Not a rote memorization of specs, but the actual qualities, features, benefits and comfort characteristics of all products. RSA’s must learn how to objectively navigate their way around the sales floor in response to each customer’s unique needs and preferences.

Selling skills: A focus on customer satisfaction using real life situational selling. Use your own experiences and draw upon experts in our field. There are many resources available including, tapes, DVDs, books and magazines. Of course there is a plethora of information on the Internet. Furniture Training Company is an excellent resource.

Awareness skills: Perspective skills training should include a big picture look at the importance of each and every customer, the effect that a quality mattress has upon the customer’s health and well-being and the important role the sales associate plays in the selection process.

Company information: All sales associates should learn and know as much about the company as possible, including policies and procedures and company history. They should also spend time with all other departments, accounting, delivery, maintenance, etc. to see how everyone in the company plays a role in creating a positive experience for the customer.

Practices

Practical sales training can put knowledge and skills into action. Training includes three phases, (more P’s) Preparation: what to do before working with a customer, Presentation: what to do and say in the presence of a customer, and Post Sale Care: what to do after the sale to ensure that the customer is satisfied with their purchase and experience.

Preparation

Preparation begins with daily rituals, including checking on inventory, sales, events, or any other issue that may impact the customers’ experience. This includes cleaning and straightening up the sales floor, making sure all models, signage, and POP materials are in place and in good order. Each salesperson should get in the habit of looking at the store as if he or she were a customer shopping visiting the store for the first time. A clean, well-kept store evokes positive feelings. Bathrooms are the litmus test.

Presentation

Sales associates should be encouraged to use a consultative style and an unbiased approach dealing with consumers as individuals, without letting his or her own personal preferences or motivations influence the selection process. An attitude of serving rather than selling is crucial. Shoppers perceive motive.

Customers want to buy from associates who care about their needs. One of the best ways to communicate care is by asking meaningful questions and giving well-informed answers that address the customer’s particular situation. The entire selling process should be an exchange between buyer and seller with the common goal of finding the best possible mattress and closing the sale!

Not asking for the sale is a disservice and waste of time for the buyer and seller.

Post Sale Care

Follow up may be the most important element of all practices to make sure every customer has peace of mind, is satisfied with both the product and their shopping experience and to thank them for their business.

Unfortunately, customer service issues can sometimes occur. When that happens RSA’s must go above and beyond the customer’s expectation to resolve it. By promptly solving a customer issue, one can in fact create more trust.

It’s true when a customer has a problem that is resolved beyond their expectation, it creates a more favorable feeling towards the company than not having a problem in the first place! (However, I don’t suggest creating problems to achieve that goal. LOL)

Principles

Can people be trained to have good principles? I’m not sure, but we can set and enforce a standard of expectation as to how customers are to be treated.

Most customer service problems don’t arise from a lack of care as they do from a lack of awareness. It’s just human nature that we sometimes fail to see the impact that we can have on others and they upon us.

Through daily reminders, issues of honesty, integrity, compassion, and service should be stated and reinforced in a variety of ways.

A mission statement is a great way to set your standards and it should be posted for all to see. Yes, even customers.

Every day should begin with a conscientious review of that mission with an all-consuming focus on how to provide an outstanding customer experience. Over time, that shared vision becomes second nature, company identity.

Retailers that incorporate Trust Training can set the stage to make their existing training programs more effective. Creating a culture of trust will most certainly bring a new, higher level of success.

Gerry Morris is an author, speaker, sales trainer and consultant with over 25 years of experience in the home furnishings industry.

Gerry is the author of two widely-read books, Spring Training and Sell More Beds Guaranteed! He currently writes the Closing Words column together with feature articles for Sleep Savvy Magazine. For more information visit SellMoreBeds.com

Friday, April 6th, 2012

Will bedding sales grow even in a slow economy? You bet!

As I travel and work with many clients, I’m pleased to see a shift in the way manufacturers and retailers have come to embrace a philosophy that I’ve attempted to champion for many years. In short, I believe that we don’t sell mattresses, we sell “quality of life”. This approach removes the bedding products from a commodity status to providing answers and solutions to health and lifestyles of our customers and their families. We focus on the every day realities of life and how a night of quality sleep can help our customers experience a better existence.

This industry approach is based on research and educating the consumer to invest in themselves and their family by understanding what they can gain through the proper “sleep system”. This research is being promoted by the National Sleep Foundation and the Better Sleep Council. The education process promotes health and wellness as a result of a quality sleep system (e.g. mattress, foundation, pillow, bedding and improved sleep environment suggestions). We are illustrating the “big picture” and how these elements contribute to “quality of life” through quality sleep. This consultative approach eliminates a product or commodity purchase and generates and investment in people’s quality of life. Less than positive economic conditions have provided much stress among consumers. A survey by the Better Sleep Council has verified that stress is a major cause of loss of sleep. Many retailers are sharing this information with their customers as a solution to stress and help them view the sleep system in a different light. The research identified:

65% of Americans lose sleep over stress

32% of Americans lose sleep at least one night per week due to stress

In short, stress has had negative effects on the customer’s ability to perform daily tasks, make good decisions, deal with different situations and even relate well to family members. We can help them deal with these issues by helping them achieve better quality sleep. Because of more education to the consumer, and an awareness of better health through better sleep, HGTV and Furniture/Today found that consumers are willing to invest more when they believe a new/better sleep set will improve their health and life.

The increased spending range was based on a $699 base price that would increase to $899. Twenty-eight percent of respondents responded that they would spend that much more. The high range of the investment went from $699-$1699. Twenty-nine percent of the respondents said they would spend this amount. Additional research by HGTV and Furniture/Today with 7,000 consumers found an overwhelming interest in products that protect mattresses and pillows from negative issues (e.g. dust mites, bed bugs and stains/spills). This awareness by enlightened retailers have educated consumers as to how these issues can be solved. They are now selling solutions and solving problems rather than selling commodities or products. The research indicated: 76% of consumers interested in protection from dust mites 73% of consumers were interested in protection from allergens 70% of consumers were interested in protection from bed bugs 4% of consumers were interested in protection from stains/spills With the focus on awareness and education, the Better Sleep Council published information on another category of consumers, teenagers, and their incredible need for quality sleep and the resulting issues from the lack of that sleep. The condition was called “Zombie-Itus” which can result in irritability, depression, anxiety, apathy, decreased brain function and a distracted disposition. Believe me, I raised five children and these conditions really exist.

New scientific research continues to unmask the effects of chronic sleeplessness, and its results. Here are four devastating effects, courtesy of the American Heart Association.

  1. Sleep loss can lead to Diabetes. A recent study shows that people who sleep less than six hours per night appeared to have a higher risk of developing impaired fasting glucose—a condition that can precede Type 2 Diabetes.
  2. Sleep loss can raise your blood pressure. Another recent study found that a lost hour of sleep—one hour or less than the recommended eight—increased the odds of developing high blood pressure on an average of 37 percent over five years; skipping two hours raises the blood pressure risk 86 percent. This condition can lead to heart attack, stroke or kidney failure
  3. Sleep loss can make you gain weight. Several recent studies have confirmed that there is a link between the loss of sleep and weight gain. In one study, participants who slept six hours per night were 27 percent more likely to become obese than those sleeping 7-9 hours; people getting five hours of sleep per night were 73 percent more likely become obese.
  4. Sleep loss can make you vulnerable to cancer. Yet another recent study showed that even when people take preventive actions that have been proven to lower cancer risks such as exercising and eating right, inadequate sleep seems to counteract those benefits.

The National Institute of Urological Disorders and Stroke found that Americans spend at least $50 billion each year on lower back pain, the biggest cause of job-related disability and leading contributor to missed work. The proper sleep system will provide proper support, spinal alignment and comfort to make a big difference in back health. Dr. Mehmet Oz, of The Dr. Oz Show, stated that most cases of back pain are mechanical or are non-organic, meaning they aren’t caused by serious conditions like arthritis or injury. Improper posture and lack of spinal support are the true causes.

Another dynamic of the growth of the bedding category is due to the constant introduction of new products and new approaches that contribute to better sleep. The growth of the specialty sleep category is due to introducing new products to the consumer. The first half numbers from 2011 introduced by ISPA (International Sleep Products Association) illustrated an increase in mattress units of 20.4 percent. Also, the dollar value of mattress shipments rose 20.9 percent.

The bottom line, as I see it, is the fact that progressive manufacturers and retailers are not selling products or commodities, they are selling “quality of life”. They also present a complete “sleep system” solution through the mattress, pillows, sheets, protectors against dust mites, allergens, bed bugs, stains/spills and concrete suggestions as how to create a healthy and clean sleep environment. This approach focuses on the industry’s ability to make a difference in the lives of consumers and connect with them regarding health, wellness and how to achieve it.

By educating the consumer, especially the female consumer, who represents over 85 percent of the bedding purchases, and has special sleep-related needs, we can illustrate the methods that quality sleep can provide a better quality of life. This approach will continue to succeed and provide sustainability to the bedding category even in slow economic conditions.

Ron Wolinski is a Vice President with The Profitability Consulting Group. His expertise in management stems from the positions he has held such as Manager of Training and Development for Art Van Furniture, VP Sales and Marketing with Contract Interiors, President of Behavioral Dimensions, Training Consultant to Thomasville and architect of the Thomasville University, Director Sales Education for Simmons and establisher of the Simmons Academy, National Director of Education and Development for Value City Furniture and most recently Director of Education and Retail Services for La-Z-Boy, Inc. He consults with retail organization internationally on consultative selling, communications, leadership skills, interviewing and recruiting, customer service and the science of sleep. Questions relating to this article or two other related topics can be directed at RonW@profitabilityconsulting.com.

Wednesday, February 15th, 2012

The Sound of Revenue

Every day we are influenced by the sounds surrounding us; whether listening to a radio station or hearing a baby crying, it inspires our emotions. Even in our favorite movies we hear music in the background to create suspense, thrill, and loving moments for the audience. Each scene requires a different tone of music in order to sell the story. Retailers can incorporate this idea in their showrooms to gain more revenue.

Imagine customers relating their lifestyle to a room just by the sound of music from each showroom. Music enhances the experience of shopping because it influences a customer from the moment they step into the store. The tempo of music cannot be too fast or too slow because it will impact the emotions the customer has and might make them leave quickly or lose interest.

Just as each room requires different styles of colors and furnishings, the setting of each room requires a personal station that plays certain tunes that will connect a customer to the merchandise. For instance, a dining room should have different music than the bedroom. Music should be an accent to the décor of each room and contain a sense of belonging for the customers. The backdrop of music will create a vision for the customer with their family inside the showrooms, and encourage them to continue shopping. Rooms will come to life with the support of music. Customers will be able to identify their own style in each room.

Another benefit is to include in-store branding messages between songs for customers to learn about current sales, interest rates, delivery options and store policies. Employees will gain value from listening to the music stations by learning about current promotions, advertisements, and being entertained which could improve morale for the store. Background music will help create a professional relationship between the customer and employees in a positive environment. You turn your speakers into an additional sales tool that is considered by the customer as less intrusive and biased than a salesperson. The messages can plant the “sales seed” in the consumer’s mind that can turn into the sound of a ringing register.

Here are five tips on how music will generate revenue:

  1. Music will upsurge revenue by allowing owners to select the proper music for each showroom to showcase merchandise and grab the customer’s attention.
  2. Customer satisfaction will increase by identifying your brand with the customers.
  3. Employees and customers will be reminded of current promotions through music messaging.
  4. In-store messaging will advertise your brand only, and eliminate competitors.
  5. Using licensed music from a company will avoid any infringement fees that can be in excess of $100,000.

Elvia Medina, is a student intern at Sacramento State. Her focus is in Public Relations and can be contacted at medina916@att.net. For more information on music or messaging, contact Jim Mathews at Retail Radio, (888) 807-6863.

To find out about WHFA’s discount program with Retail Radion, contact WHFA at (800) 422-3778.

Tuesday, February 14th, 2012

Furnish Your Anniversary

What if people gave a new piece of furniture or home decor for every anniversary instead of paper, wood or iron? We think the standards should change and people should use this list to “furnish” their next anniversary gift.

Monday, February 13th, 2012

Casa Bella Galleria

Where Everybody Knows Your Name

The hit theme song to the 1980s sitcom Cheers ended with, “You wanna go where everybody knows your name…” which is exactly why the customers of Casa Bella Galleria keep coming back to the store. Opening in late 2004, Casa Bella Galleria has become family to its customers and transformed their living spaces into casa bellas (beautiful homes in Spanish and Italian).Located in Sacramento, Calif., Casa Bella Galleria offers customers impeccable design at an affordable price. Well-accessorized room vignettes greet customers and splashes of the latest color trends can be seen throughout the showroom. Husband and wife team, Shane Curry and Rhoda Santamaria, took their skills from other careers (marketing and advertising, respectively) and opened the store in a time where the real estate market was flourishing. “I realized I really had a passion for design,” said Rhoda. “Since the market was booming, we decided to open the store. Neither of us knew a thing about owning a furniture store. We went to a lot of seminars in the beginning, and I worked at La-Z-Boy for a year because they have a great training program. Working there made me realize that I really enjoy the furniture business.”

Over the years, Rhoda and Shane have learned the business and built relationships with their clients as well as local designers. This has helped bring in a steady stream of business, despite the decline in the economy. “We now have relationships with a lot of designers that always bring back customers, and those customers bring in new customers,” said Rhoda. “We advertise, but we have found most of our customers are return clients or referrals. We are like the Cheers of furniture stores, people come in here and we know their life story. At this point in time, we have furnished some homes twice already—they bought their first sofa when we opened and are now coming back in to purchase their second sofa.”

Along with Rhoda and Shane, their son and daughter-in-law work in the store. With only four people working in the store, customers have come to love and trust the consistency of who will help them when they walk in. “We are small, but we try to be like Nordstroms and take care of every problem as best as we can. We want to make everyone feel important. Also, I think we are consistent. Because there are so few of us, people know they are going to talk to one of the four of us when they need something—they won’t be shipped off to a customer service department. People appreciate that,” said Rhoda.

The team at Casa Bella has also realized that some customers are more willing to work with certain salespeople, and if a customer isn’t responsive to one person, the other takes over. “Because there are three of us [that sell], and we are all very different, we can take a shopper who comes in with the meanest look on their face and between the three of us, we generally turn the person around and they end up loving the store,” Rhoda added.

While Casa Bella Galleria has a great list of returning customers, they aren’t in the best location for attracting new business. “Rhoda is originally from Manhattan and saw a lot of potential in the neighborhood due to the rejuvenation that was occurring in 2004,” Shane said. “It was on a trend upwards and the city spent millions of dollars on the boulevard. By 2007, several developers had things in planning stage. Then the real estate market crashed. I think we suffered a little more of an impact because people were too afraid to move forward on their projects and just left the neighborhood.”

Even though many businesses have left, Shane is seeing signs of business starting to return to the boulevard. Not only is he hopeful about the return of business to his neighborhood, but the potential of the business excites him. “Even though we are in a recession, there is still a lot of potential,” he said. “I always feel like tomorrow things are going to break out and get better. We probably work harder than the average business at trying to make people happy. We often go above and beyond for our customers, and sometimes I think to myself, we don’t have to do it. But then you think, I am going above and beyond what is fair because I am building a future with this customer. It is the potential to grow, and the potential to have the right product to serve the people coming in. Our goal is to open another store in a different location, but the circumstances have to be right. It’s got to be the right location and timing.”

With the idea of a new store in the future, Shane and Rhoda have already figured out a plan to maintain what has made them so successful, their contact with their customers. “The goal would be to change this current location into more of a promotional furniture store, and maybe even some type of consignment store,” Shane said. “Then the next location would just duplicate what we have right now. Part of duplicating the store is to duplicate us, so the promotional furniture store would have to be staffed differently so we could be available to still work in the new location.”

The excitement and positive outlook that Shane and Rhoda have for the future will ensure they will one day be selling their loyal customers their tenth sofa.

Friday, February 10th, 2012

A Joyful Experience – Dream. Play. Choose. Live.

As you walk through the doors, you feel it: Cared for. Welcome. A barista smiles from behind a coffee bar and asks if you’d like a handcrafted cappuccino. As the aroma of freshly-ground beans wafts from the counter, a sense of comfort—even empowerment—envelops you. In-store messaging catches your eye, weaving tales that encourage you to dream, play, and choose products that lead to better living. But most of all, you realize you’re having fun—in Fixtures Living Store Front Costa Mesaan appliance store. And that’s when you realize, most emphatically, that you’re not in one—at least not like any you’ve ever seen before. This is a retail dream come true.

Opening in 2009, Fixtures Living started helping Southern Californians’ dreams come true through their unique brand experience. Capitalizing upon the realization that the premium Appliance & Plumbing Industry was truly underserved, Fixtures Living’s four business partners came together to build their dream. The goal was simple: to create joy for their customers.

Drawing upon their own concepts of what the ideal shopping experience should be, the founders created an unsurpassed retail branding experience. Customers go through a process of immersion as they enter the store (see cappuccino experience, above).“This gives our guests the opportunity to decompress, to absorb our environment and to understand why we are relevant,” said Jeffery Sears, one of the four partners. “Then we explain how the store works, and we empower you to self-shop, or to be helped. We give our visitors the ability to command and control. When that happens, they feel joy, and associate it with our brand. That is something we unlocked when we designed the store.”

The first two locations in San Diego and Rancho Mirage took tested theory of customer immersion and empowerment and were highly successful. Last September, they took what they had learned from those locations and created the Costa Mesa store—which is truly an unbelievable experience, taking visitors on a journey of discovery.

“Here, we provide the ability to dream and to play; everywhere water should run, it runs. Everywhere there is a kitchen, there is fire. Ovens turn on, there’s a pizza hearth and live beer taps hidden throughout,” said Sears. “Unlike other stores, we don’t try to sell people a box or an appliance. We don’t ask what they want to buy, but rather, how they want to live. When we do that, the brands in the store come to the customer based upon their desires, or upon their budget.”

Perhaps most extraordinarily, Fixtures Living has transformed a need-based industry into a want-based industry. Often times people will only visit appliance and plumbing stores when they are remodeling or something broke—rarely just to “hang out” there. By creating an experience and allowing customers to explore, Fixtures Living has created an environment that people want to visit—and to linger at, discovering ideas they might never have dreamt of before. Sears added, “They can take a steam shower, they can try out the sauna, they can even traipse around naked inside the seclusion of The Sanctuary and try out all of the shower heads while others are shopping just a few feet away. It makes a difference when you start empowering people to explore. Then they want something. That is the difference in what we have done—we have created a want-based atmosphere for these types of products.”

They have also created an atmosphere for learning. Holding daily classes in their kitchens, Fixtures Living not only showcases their products but their culinary skills. Every day from 11-2 they host complimentary “how-to’s” on everything from knife skills to seasoning hints. A friendly culinary staff shares helpful product knowledge, tips, tricks, and—most importantly—irresistible tastings and even, during select times, lunch. Fixtures Living also offers its business-to-business customers opportunities to utilize the showroom space for after-business-hour parties and social events. “We utilize a tribal theory to market to our B2B side of the business, which is architects, the design community and remodelers. We bring those people in, they utilize our space, and we gift it to them for private events. It’s kind of a fun place to have a party or a sales meeting, and the word-of-mouth begins,” Sears said. Part of the experience is in the stories you read on the walls and in the vignettes. Each vignette evokes an emotional response from the customer. “In these settings, you are reading about moments, not about BTUs or the features of a chrome faucet,” said Sears. “Some stories make you smile, some make you cry. The purpose is to transport customers to a place where they can see themselves in that tub, or in that shower, and to make a meaningful connection.”

Fixtures Living has found a way to infuse its brand in every aspect of the store, from its employees to the writing on the walls. Sears attributes this to being a very creative company that is also highly process-oriented. The four owners each bring a unique background with them, and this creates a rare cross-pollination between process control and creativity. They contemplate every single aspect of the stores they build, which is quite evident in Costa Mesa.

When hiring, each potential candidate goes through a personality profiling process. Once a person has been hired, they are brought in 6-9 months early to train, working in the market or one of their first two stores before working at the Costa Mesa location. “There is nothing better than to spend time with the people who are going to populate our locations. You could argue that with 20-40 stores in the future, it would be difficult, but it won’t be. It’s one of the most important things because you can build a beautiful store, but if you don’t get the last three feet right, you’ve lost it,” said Sears.

Along with investing in its employees, Fixtures Living invests in others. Each staffer is given a $200 account with the website Kiva.org, which allows them to invest and empower small businesses throughout the world. Then, they are encouraged to re-invest these dollars again and again. Not only does it give back to others, it implicitly conveys to new employees the culture of the company.

Fixtures Living has crafted a beautiful showroom, filled with amazing products and a joyful brand, which has created repeat business. “Any time that you care for people, empower them and provide them with an extraordinary environment—one that does not cost them any extra, and assures them of value—you will create loyalty to a brand,” Sears said.

This loyalty has made Fixtures Living successful during a time when most stores are closing their doors. They have plans to bring their concept of joy to new markets by replicating the Costa Mesa plan. With their sights set on two new openings, Fixtures Living will continue to expand their brand by creating joy, by realizing their customers’ dreams.

Tuesday, January 10th, 2012

Tablet-land

Tablets were on almost every holiday gift giving guide last month and those that haven’t made the jump into “Tablet-land” sure are jealous when they see their iPad-touting friends walking around. By 2014, approximately 90 million Americans will use a tablet device, with the iPad leading the way.

Here are some stats on this ever-changing, popular technology:

  • Asian-Americans and Hispanics are the largest early adapters of tablet technology. 12.6% of Hispanics and 14.4% of Asian-Americans use tablets.
  • 39.5% of tablet users planned on researching home décor from their tablets during the 2011 holiday season. 26.3% said they would use it to make a home décor purchase.
  • eMarketer estimates that this year, 31.5% of tablet users are ages 18 to 34, while 55.5% are 35 or older.

What does this mean for retail? Tablets are changing how people interact with technology in their every day lives. They are replacing laptops, books and in some cases, cameras (on a recent vacation, I witnessed a tourist taking all of his photos with an iPad). According to a recent article Tablets, Smartphones Redefining The Retail Shopping Experience on MacNews.com, tablets and smartphones are also redefining the retail shopping experience and will be a $5 billion market per year in the U.S. by 2015.

Many retailers are starting to utilize this new technology on their showroom floor. Rooms to Go, an independent home furnishings store, has been using tablets to create a better customer experience. Instead of having to lead customers over to a kiosk for orders, Rooms to Go sales associates can now engage the consumer in the room setting they wish to purchase. Associates no longer have to run around the showroom looking for SKUs, they can pull the information up through their Rooms to Go app. View the YouTube video on how Rooms to Go is utilizing this technology at: http://tinyurl.com/rooms2go.

With tablets still considered a fairly new technology, the growth, excitement and ideas to utilize this technology will continue to grow. Many industry technology providers are looking at new ways to integrate tablet technology into their Point of Sale systems. How else do you envision tablets changing the retail environment?

Leave your comments on how you think tablets will influence retail in the future.

Thursday, December 15th, 2011

The Importance of Community

Five benefits of being a part of a network
By Deborah Shane
 

There is and has always been great power in building networks, but more importantly is using and leveraging them in today’s business and career world. In a relatively short time, building tribes and communities has taken on a lead role in our branding and marketing priorities. The immediate, viral and real time nature of information and communication is nothing short of stunning. From 9/11, Michael Jackson’s death, the liberation of countries, politics, sports, natural disasters, business and careers, there are major benefits of being a part of and engaging in networks. Here are five benefits I have enjoyed from being a part of my networks: resources, support, help,
belonging, empowerment.

① Content Resources
The sharing of information, how to’s, lists, content is a daily way of life today both online and in person. The greatest resources today are the people in our networks, be it personal, community, family or business. Blogs, web communities and social platforms all are rich sources including Mashable, Technorati, Huffingtonpost, and of course Facebook, Twitter, Linkedin and Youtube. Pop in some keywords and phrases that you are interested in accessing resources about and watch what comes up!

② Personal Support
People need people. This is a WE time. The days of being a lone wolf in life or business are over. We survive and endure by supporting each other. I have seen people go through tremendous personal change in their their health and family life tell me that their ‘online networks’ were instrumental in helping them get through. From people in your inner circle to online friends, people are eager to help! One site that is amazing is Caring Bridge, which I was recently introduced to and engaged in recently during a friends illness.

③ Ask for Help
Again the power is in the people in your networks. From referrals, feedback, surveys, ideas for blog topics, logos, vacation destinations, baby products, medical: ask your networks a question, post a survey and watch what happens! Just Google, Bing, or Yahoo it.

④ Sense of Belonging
A sense of belonging, being a part of it is a fundamental human need. The online world has given us an opportunity to band together in tribes and communities to find and support each other. I have met people nationally and internationally through my blog and my new book, who I probably never would have met if it wasn’t for it being on the web. I also interact regularly with people in the niches that I serve. Are you tapping into the resources of your networks and the people in them? Join targeted, smart ones and get involved in them.
⑤ Personal Empowerment
This is really a two way street: giving and receiving. I have watched and been inspired by so many people in my networks that have given me the courage, strength and power of example to keep going and get through. They have also allowed me to help and empower them! Receiving from someone who sincerely wants to help is an amazing gift to them and that you give yourself.
Networks and networking, in the two worlds we live, work and play in: online and in person is as important as air, water, food and shelter. Join, build and grow your networks daily, and watch what happens!

Author: Deborah Shane is the Author of Career Transition—make the shift, a business and career branding strategist and new media consultant, She hosts a weekly Blog and is in her third year of hosting a weekly business radio show on blogtalkradio.com, which has over 32k downloads. She writes for several national business, career and marketing blogs, and websites including smallbiztrends.com, careerealism.com, BusinessInsider.com, Personalbrandingblog.com and blogher.com. Deborah delivers smart, no-nonsense ideas and solutions, which make her a popular go-to resource for clients, national media and influential blogs. Connect with her on Twitter, Facebook, LinkedIn and Blogtalkradio @Deborah Shane, or on the web at DeborahShaneToolBox.com.


 

Friday, December 9th, 2011

Are You Covered?

The holidays are fast approaching and the last thing on your mind is business insurance. We all know that we need to insure our buildings and property from loss, and we buy an annual policy to do that, but are we covered?

The answer is maybe! Most property policies have a coinsurance clause. The coinsurance clause allows you to insure your buildings and contents at 80 percent, 90 percent, or 100 percent of replacement cost of the property. If you elect 80 percent coinsurance, you are self insuring 20 percent of your property in the event of a total loss. The insurance companies require that policy holders insure their property to value. So what happens if you don’t comply? Nothing, until you have a loss and you want the policy to respond. Let’s take a look at a couple of examples.

An insured has a $100,000 loss to their building. The coinsurance clause purchased was 80 percent and the amount of insurance carried on the building was $500,000. At the time of loss it was determined that it would cost $600,000 to completely replace the building. The insured in this case was complying with the insurance carrier as 80 percent of $600,000 is $480,000, which is less than the $500,000 they are carrying. In this case the $100,000 loss will be covered in full less the deductible.

An insured has a $100,000 loss to their building. The coinsurance purchased was 100 percent and the amount of insurance carried on the building was $500,000. At the time of loss it was determined that it would cost $600,000 to replace the building. The insured in this case was not complying with the insurance carrier. They were insuring the building at $500,000 and should have been carrying $600,000. They were insured at 83 percent of value ($500,000/$600,000). The 83 percent will now be multiplied by their loss of $100,000. The insurance carrier in this case will pay $83,000, less the deductible, to repair the building. The insured will be responsible for $17,000, plus the deductible.

The cost of being insured to value is usually very minimal, so why do insured’s not do it? There are a variety of reasons, from not knowing the true replacement cost of their property, to thinking that they will not have a total loss or not understanding that coinsurance will apply to a partial loss. They also may not understand that they can buy 80 percent coinsurance or they are trying to save money by carrying lower limits of insurance. Insured’s should review their coinsurance options and replacement cost values annually with their broker. Don’t let an insurable loss put your business out of business!

Receive a free insurance quote through WHFA’s new insurance broker, James G. Parker, and make sure your business is fully covered. Call (800) 422-3778 today.