retail furniture


Wednesday, December 17th, 2008

Purpose serves as a principle around which to organize our lives.

Have you ever thought about the questions leaders need to ask in order to instill purpose within their companies?

This has really been top-of-mind for me lately, because so much is riding on the decisions leaders are making today.

It seems as if the margin of error has completely evaporated in the last six months.

I believe the generational transfer from Boomer to X is nearly complete. X’ers will only be a speed bump in time until the Millennials takeover.

Why do we feel an organization should aspire to make the world a better place?

What is the implied value of organizations of greater purpose?

How do we choose to live, interact, and behave as an organization in order to achieve this higher purpose?

How will we know when we are on the right track?

What does it look like (or feel like) when we achieve our organizational greater purpose?

These are hard questions!

I will try over the next several days the answer each of them in detail.

It will be great if you’ll help me clarify the answers by providing some feedback.

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Tuesday, December 2nd, 2008

What are you going to make happen in 2009?

Profits are meaningless without a cash reserve. From 23 years of personal experience and two very difficult periods of my life I want you to realize cash is king. It doesn’t matter if you make money in the next 90 days if you don’t have enough cash reserves to pay the bills from ongoing operations.

But is it stupid to benchmark profit without benchmarking cash flow?
Yes, it is. The most critical business indicator at this moment in time is the concept of ‘reserves.’ Reserves simply mean: How long will you last if you stopped working today?

Would you last three months?
Six months?
A year?

So this brings up a very pertinent question:
Do you know how long you can last without earning an income?
Do you even know how much you need to earn?

Most people don’t.
They pursue profits and revenues like androids.
They earn. They spend.
Never any talk of reserves.

And then a splendid year like 2009 rolls along.
Customers are few and far between. They are buying less.
Work slows down. And then comes to a grinding halt.

It’s time to dip into the reserves.

Get yourself trained and ready for 2010. How are you going to do that if you have no reserves? You’re wondering how to pay rent. How will you buy fresh inventory? You’re cutting back on everything in sight.

The real reason you got into business was to create more control over your life.
Not to earn endless amounts of money then blow it all. This is not meant to be painful. Remember the old English idiom, “A fool and his money are easily parted.”

It sure ain’t a fancy balance sheet with fancy gross revenue and handsome profits that keep you in business- it’s cash. After personally painful lessons, I’ve learned to help others learn from my mistakes. You should learn these lessons before you are forced too.

One of my favorite singer-song writers, Steve Earle, says, “I got a job but it ain’t nearly enough, a twenty thousand dollar pickup truck – belongs to me and the bank and some funny talkin’ man from Iran.” Let’s narrow the ownership pool.

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Tuesday, November 18th, 2008

History does repeat.

491 years and 18 days ago, the 95 Thesis was nailed to the door in Wittenberg. In its day, this was the means of inviting scholars to debate important issues. Not a single person took the challenge.

A decree condemning the views was issued. The decree was later burned. The rest is history.

Eight or so years ago Christopher Locke, Doc Searls, and David Weinberger bought their 95 Thesis to the marketplace in The Cluetrain Manifesto.

I’ll not force feed 95 points down your throats.

However in dealing with some important copy writing today, the kind that has family’s lives hanging in the balance, I was moved by how little some have changed.

Clearly we continue to miss the main idea from these authors, who wrote, “Networked markets are beginning to self-organize faster than the companies that have traditionally served them. Thanks to the web, markets are becoming better informed, smarter, and more demanding of qualities missing from most business organizations.”

Here are only a few of their thoughts. If you would like to see all 95, you can read them here. Surely you can find the time.

#4 Whether delivering information, opinions, perspectives, dissenting arguments or humorous asides, the human voice is typically open, natural, uncontrived.

#11 People in networked markets have figured out that they get far better information and support from one another than from vendors. So much for corporate rhetoric about adding value to commoditized products.

#14 Corporations do not speak in the same voice as these new networked conversations. To their intended online audiences, companies sound hollow, flat, and literally inhuman.

#15 In just a few more years, the current homogenized “voice” of business—the sound of mission statements and brochures—will seem as contrived and artificial as the language of the 18th century French court.

# 24 Bombastic boasts—”We are positioned to become the preeminent provider of XYZ”—do not constitute a position.

#61 Sadly, the part of the company a networked market wants to talk to is usually hidden behind a smokescreen of hucksterism, of language that rings false—and often is.

#75 If you want us to talk to you, tell us something. Make it something interesting for a change.

#91 Our allegiance is to ourselves—our friends, our new allies and acquaintances, even our sparring partners. Companies that have no part in this world, also have no future.

#95 We are waking up and linking to each other. We are watching. But we are not waiting.

I beg you in the most human of voices to hear this mad man’s voice from the wilderness and respond. Call me, email me, snail mail me, or comment right here on our blog.

Please join this conversation. Your business life probably depends on it.

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Monday, October 20th, 2008

Recession Survival Kit, Part II

If you’re in High Point, come find out what’s working for other retailers during this “economic downturn” tomorrow at 2:30 pm in the 12th floor resource center.

There are actually six things- no, seven things your family business can do in a recession. The first is to understand that there are two types of shoppers, transactional shoppers and relational shoppers. Yesterday I explained to traits for transactional shoppers. Today let’s talk about the relational consumer.

  1. Relational customers consider today’s transaction to be one in a long series of many future purchases. They are looking less for a product than for a store in which to buy it.
  2. Their only fear is of making a poor choice. Relational shoppers will purchase as soon as they have confidence. Will your store and your staff give them the confidence they seek?
  3. They don’t enjoy the process of shopping and negotiating.
  4. Relational shoppers are looking principally for an expert they can trust.
  5. They consider their time to be part of the purchase price.
  6. Confident that they have found “the right place to buy,” relational shoppers are very likely to become repeat customers.

Sound familiar? If so, you are most likely a relational advertiser!

Stop by the seminar or give me a call if you’re wondering what your next promotion should be. We can tell your story better than anyone else.

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Sunday, October 19th, 2008

How to survive a recession

This week in High Point, North Carolina, furniture retailers from around the country will be asking, “How do I survive this recession?” Come find out what’s working on Tuesday at 2:30 pm in the 12th floor resource center.

There are actually six things- no, seven things your family business can do in a recession. The first is to undersand that there are two types of shoppers, transactional shoppers and relational shoppers. Together we will explore both, and I’ll post more about them later this week.

Here are five traits for transactional shoppers.

  1. They live for today’s transaction and give little thought to the possibility of future purchases.
  2. Their only fear is paying more than they have to. Transactional shoppers are looking for price and value. (PE-P=V)
  3. They enjoy the process of comparing and negotiating and will likely shop at several stores before making their decision to purchase.
  4. Transactional shoppers do their own research and don’t need the help of an expert. Consumer Reports are published primarily for the transactional shopper.
  5. Because they enjoy the process, transactional shoppers don’t consider their time spent shopping to be part of the purchase price.

Sound familiar? If so, you are most likely a transactional advertiser!

If you’re wondering what your next promotion should be, contact me. R&A Marketing has the best solutions in the furniture industry.

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Monday, October 13th, 2008

Independent Retailers Win Again

Daily life keeps me humble.

Killing lions and bears like my namesake has never out of the question.

Of course with killing you create a lot of mess. Mess always has to be cleaned up. (Notice the current financial condition of GM and Chrysler.)

When we think about the victory of the fighting and killing of bears and lions we focus on the positive outcome. The dangers of taking on these sorts of battles are not for the faint of heart.

For those of you who enjoy old stories of truth this one begin with a young boy bringing lunch to his brothers when the neighborhood bully provokes a fight.

This bully’s challenge offers big rewards. There is a law of the universe that says, “Opportunity and security are inversely proportionate: as one goes up, the other goes down.”

As we head into the final quarter of this year the opportunity to gain market share is better than it has been in years. The risk of trying to grow during rough times is also bigger now than in many years.

Our new partnership and expanded services have created a one-two punch of opportunity.

I’ll be in High Point Sunday evening through Wednesday midday. If you would like to talk let me know. I’d love to talk shop.

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Saturday, October 4th, 2008

Retail Downer

After reading the September newsletter from furniture guru Jerry Epperson I wondered if death were a better option than retail.

Jerry is typically easy on the ears and his market presentations, while interesting, are typically a rewrapped repeat of his previous words of wisdom.

The industry clamors to hear him speak.

His newsletter didn’t talk about the meteoric changes sweeping through the industry. It wasn’t chock full of nuggets of research data to act upon. It didn’t provide a single ray of hope for small business owners. Depressing!?

To me, he suggested only the lucky will survive and the rest will simply be gone.

His diatribe makes me think about something more basic, something that feels to me like eternal, ancient wisdom: the age-old, secret formula for success in customer relationships and communication.

This long lost secret is kept alive by powerfully portraying situations with carefully chosen words. Someone once said, “This price of clarity is the risk of offense.” Words start wars, and end them. Words create love and hate alike, they make us double over in laughter, and crawl deeply under the covers all alone to sob.

Get your “word” act in order. It’s important. Don’t just say or write things for the sake of filling the space or the time; speak to change the world, even if it’s one life at a time.

Face it. As far as the vast majority of customers are concerned, it’s all about the bottom line. Their bottom line – not ours.

There used to be an old media equation of placing advertising in appropriate places, with appropriate budgets, hoping someone will see it, hear it and read it. This just doesn’t cut it any longer. Retailers know this. Retailers want marketers, and customers want stores, who are able to speak their language, understand their issues and fight the good fight right next to them in the trenches to gain sales, share and market dominance.

I wonder, in this day and age of communication, why people of great influence don’t spend a little more time choosing their words.

The pink shaded sky seen through rose colored glasses won’t help stores pay their bills, but as Bill Cosby said, “”Many of the great achievements of the world were accomplished by tired and discouraged men who kept on working.”

Want to take on the world? Call me!

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Sunday, September 21st, 2008

Generational Training

Greed-is-good Yuppies and Bible-believing conservatives each handle training the same way.

This morning I was thinking about personality type as it relates to training. Of course, wondering always leads me to generational questions.

Remember we are living and working in an unprecedented four generational time. Never in earth’s history have four generations worked together – before right now!

Feedback from training might sound like this:

  • WWII Generation says, “I learned it the hard way, and you should, too.”
  • Baby Boomers say, “If you train people too much, they’ll leave.”
  • Generation X says, “The more they learn, the longer they’ll stay.”
  • Millennials say, “Always be learning, it’s a way of life.

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Wednesday, August 6th, 2008

Do you know this man?

Who says the furniture business isn’t jam packed with creative talent? Here is Billy Spurlock and his soon to be four-year old singing a worlwide VH1 video hit.

Are we looking at the next American Idol? Could they win the grand prize on America’s Got Talent? Or, is Billy planning on winning the $15k on America’s Funniest Videos?

Whichever it is I know Billy would be happy. Because he is a fine young man who has a great sense of humor and he and his family make the entire independent retail furniture business look good. If you ever want to see a wonderful operation while traveling through WVA stop at Star Furniture. You’ll be glad you did.

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Wednesday, July 30th, 2008

Furniture Fairy can’t protect your family

The Las Vegas furniture market is filled with great product introductions and a record number of retailers looking to fend off the summer blues. I was nicely surprised to NOT hear people complaining about how difficult business is. While it is clear things are tough, solutions come from engaging in each opportunity.

Two different stories from market will work nicely to differentiate you from everyone else in your market. One is exciting and positive and the other should scare the crap out of each of us.

First is the opportunity to partner with HGTV to become the preferred home furnishing retailer in your market. In case you are not aware, HGTV is far and away the most respected brand for women looking to decorate their homes. You can learn more by visiting HGTV/NHFA Preferred Retailer Program Details or by contacting me for the details.

The second story catching my eyes and ears deals with the safety of your Ms. Joneses. Amazingly, 33% of the leather product coming from Guangzhou Has Unsafe Formaldehyde Levels resulting in an 11 year old girl being hospitalized.

I quickly connected the dots between these two stories, have you? Being a preferred HGTV retailer gives you creditability with Ms. Jones. Being a preferred retailer provides you a platform to let your local market know the dangers of buying leather from this Provence in China. You can be an authority and a family watch dog in one fell-swoop.

We will gladly help you write persuasive copy. Your story will stand head and shoulders above the product and price nincompoops in your market. If you win the hearts of your customer their pocketbook will follow.

Want some help?

PS- I don’t know about you, but this China story reminds me of a great exchange from Tommy Boy.

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