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From Home Furnishing Business

Training the Team

Many of the articles you have read over the last decade in this magazine and others have carried a common message. That message has probably also been reinforced by every speaker you have heard at conferences and your own experience at your store. So by now, unless you have been in a cave somewhere, you have pretty much accepted the fact that the consumer has changed dramatically since the dawn of the 21st century. We know through research that the huge impact of increased color home furnishing advertising, home-focused cable TV channels/shows and particularly the internet, has both stimulated and educated our target customers so that they are much more product savvy and confident when they shop than they ever were.

As a result of their pre-shopping research, we know that they are visiting about half as many stores before buying. If we are making it onto their shorter list, then we should have a better chance of helping them find what they want and that has happened as we have seen an increase in closing rates over the past few years. However, as I stated in last month’s edition, even with all the research they do to select where they shop, we are still only satisfying about a third of those we see! So what do they tell researchers is the main reason for visiting a store and walking out without buying? According a Wharton Retailing Institute/Verde Group Retail Customer Dissatisfaction Study:

Over-Cluttering,” combined with a sales associate’s inability to help in finding an item, are the top reasons for not making an intended purchase or simply going elsewhere.    

So the biggest problem for all retail is:

  Confusion in store and lack of proper sales assistance!

Causing:

• The shopping Experience to not be what the new consumer wants

Therefore:

• Sales Person must be the problem because they failed to connect one-on-one and assist or direct the process in the store.

This has dramatically affected our industry, since many of our potential consumers actually anticipate a bad experience. As a result, as much as half of the home furnishings purchased in the USA this year will be bought through distribution channels that don’t involve salespeople as we know them in the process!

The truth of the matter is that if we have not properly trained our staff to deal with today’s customer by breaking through their fears and resistance to gain their trust, then we, the owners and managers, are really the ones at fault! Indeed, updated and effective Sales and Sales Management training is the answer for most retailers. So here are some ideas about how the Approach, Structure and Content of your program can provide the best training for your staff to deliver the impact you desire.

Approach

Historically, furniture stores that have consistently performed the best have also “trained” the best, from the top down. The best larger ones have invested in staff trainers and put in place continuous programs that keep the store management and sales staff informed and invigorated. This same type of effort is needed in any retail organization, no matter how big or small.

Unfortunately, most smaller stores tend to use “event based” training programs. In other words, someone comes to the store and holds a training seminar that usually gives good direction to the staff, sometimes actually reinvigorating or motivating them and as a result sales improve. The problem is that without the proper environment at the store, the improvement is not sustainable and a few weeks later the store’s business is flat again. Training is a journey, not an event!

In any successful performance oriented team, there is always a “coach” that drives the effort. Sometimes it is the owner, the general manager or sales manager who keeps the fires stoked. The truth of the matter is that everyone needs someone with the knowledge, the motivation and the courage to hug them when they need it and kick them in the butt when that is the appropriate action!

Therefore, you must make sure you have the proper “culture for success” in your store that will support and nurture all of the behaviors you train your sales staff to use. It is human nature to stop doing new things if they have not shown immediate results or are not yet a habit. Sales managers must hold their team accountable to provide the experience the store wants for each and every customer that visits, every time without fail. So the starting point for any sales program in your store needs to focus on first training management what to expect their people to do, how to teach it, track it, coach it and make it part of the store culture. Without that, whatever training you give the staff will just be treated like this month’s recommendation, not a way of life they need to embrace!

Once that is done, your sales training program should be focused on providing the service level and shopping experience that your target consumers want when they visit your store. There are many good ones available, but you need to make sure whatever one you choose has been updated and is focused on the needs of today’s customers, not the ones back in the 90’s and before!

Structure

The most successful programs utilize multiple types of training in an ongoing process that provides continuous improvement and development for their entire staff. This not only drives growth, but also creates an environment that the best people want to be a part of, which reduces turnover and helps you recruit/hire the most talented candidates available. Below is a list of some elements you can use to augment and enhance your manager led training efforts, plus a graphic that reflects the way each major part of a solid program can layer on to create the maximum improvement possible:

• Methods and Elements You Can Use to Enhance Your Results

– Natural or On-the-job Learning

– Individual Online and Video Self Learning

– In-Store Training Events and Seminars

– Management Training

 Performance Coaching for Managers and Sales Staff

 

Content

Management Training Program - Your strategy should be all about the customer, not the salesperson. It starts with creating management focus on coaching and needs to include the accurate measuring and reporting of your team’s individual performances. As has been discussed in previous columns, Total Sales = traffic X closing rate X average sale, so at the very least you need to have these numbers to study as you train, coach and manage your staff.

Your program should begin with the following important determinations and discussions:

• Defining the company’s vision

• Creating an understanding of your consumers:

– Their Lifestyles and Attitudes towards the home

– How they want to shop and be treated by your sales staff

• Instilling Principles of Business and a Belief system that works

It then needs to train the following Management and Coaching Functions:

• Measuring performance

• Recruiting - Hiring - Staffing - Scheduling 

• Goal Setting & Management

• Training, Observation, Feedback and One-on-one coaching

• Motivating a Performance Team

• Managing Conflict

• Coaching the coach with ongoing support from upper management

Sales Training Program – All of your sales team’s efforts should be focused on providing the home furnishings shopping experience that your customer desires. Therefore, once you have the proper sales management organization and process in place, you need to train and coach your staff on how to provide a customer driven interaction that helps your visitors fulfill all of their wants and needs. It should include instilling behaviors that will deliver that result in the following critical areas:

• Preparation – Understanding your products and customers

• Greeting – How to break through “I’m just looking” and connect as a person

• Establishing trust – This is essential in order to maximize results

• Determining each customer’s Practical and Emotional needs by using the Sketch as an effective tool for gathering information – the problem is in the home, not the store!

• Presentation - Showing the right products, the right way

• Handling Objections - Techniques to enable the sale to continue

• Asking for the order/Gaining commitment - Timing and Techniques to help the customer make the right decision for their home

• Client Development and Follow Up – Creating Customers for life

Most retailers need some help putting a professional program like this together and there is plenty available. In the long run it is almost always quicker and more effective to hire someone who does this type of thing for a living! Talk with other retailers and find the provider that will make the right things happen in your store for you.

It's Time For The Next Plateau


Institutions, companies, and, yes, magazines evolve through stages of growth. Each stage addresses the needs of its constituency while pushing the boundaries of its mission. This is true of Home Furnishings Business. The founding editor and publisher of Home Furnishings Business identified a need for a voice for the traditional retailer in the home furnishings industry. It was not to be a newspaper for the industry. Instead it was a publication that addressed for retailers the issues that were at the forefront of their concerns.

Over the past decade the industry has undergone significant changes with alternative channels of distribution challenging the traditional independent retailers and the migration of manufacturing offshore. The results are a declining retailer base and the loss of many established manufacturing brands sought by consumers. Today the demarcation between manufacturing and retailing is blurring. The movement offshore and the subsequent savings have been passed along to the consumers often with a reduction in product quality.  Some retailers have assumed the role of suppliers, some with mixed results, but, for the most part, reducing the traditional supplier’s role to that of an importer. The results are a sector of the industry that is driven by price overlooking the primary focus of the consumer which is to create a beautiful and functional environment.

In 2013 the magazine changed ownership with the acquisition by Impact Consulting Services/FurnitureCore. This added another dimension to the acquirer’s mission to utilize and apply information to create high performance retailers and manufacturers. Changing the magazine’s masthead to “The Strategy Magazine of the Furniture Industry” and increasing its scope to include manufacturers and service providers was the first change. However, more than the cosmetic change was the addition of more specific content to allow readers to visualize their own business and to identify areas for improvement.

The content was authored by subject matter experts within the ranks of Impact Consulting with “Strategically Speaking” and “Coaches Corner.” The intent of this change was to establish a “point of view” of Home Furnishings Business concerning the home furnishings industry and the direction forward.

We continue this next phase of the evolution of Home Furnishings Business. We plan to explore the issues that are critical to creating high performance retailers incorporating business intelligence and market research along with input of industry thought leaders. Our goal is to raise the performance of the industry with critical discussion. 

This is just as the process of our Performance Groups where active sharing increases the performance of all members of the group.  We want to work with the industry to create that same atmosphere of striving for excellence.

Delivery on the House

Free delivery. This phrase will trigger shivers from many retailers since, over the last 25 years, traditional retailers have been charging for delivery.

It has been the norm in the industry for a quarter of a century. From a financial perspective delivery income adds between 1 percent and 2 percent to a retailer’s bottom line.

Traditional furniture retailers are challenged to control their pricing multiplier to allow for discounting that will maintain an acceptable margin level. Offers to the consumer of discounts along with free financing have become a science to find the sweet spot of attracting buyers while maintaining margin.

Unfortunately, traditional furniture retailers live in an echo chamber listening to their perceived direct competition—other traditional furniture retailers. While traditional retailers still represent 40 percent of the industry, the marketing practices of other channels are ignored for the most part.

However, at times the noise from the other competitive channels becomes too loud to ignore. This is the case with the fast-growing channel, the Internet (15 percent of the total industry), when it shouts free delivery. Promises of big pieces ship free can’t be ignored. Consumers coming into traditional brick-and-mortar retailers have the promise ringing in their ears, and any delivery charge becomes an irritant. While free delivery for e-tailers means placing the product in the first dry area still in its carton, the consumer doesn’t read the fine print. It is only when placing an order that they discover what they want is white glove service, the level of service that traditional furniture retailers provide.

Should traditional furniture retailers match the e-tailers rather than allow the consumer struggle with self pickup?

A hard analysis may find the consumer would select the white glove service level. The 20 percent to 30 percent of consumers using customer pickup would obviously decline, and the cost of providing that service would also decline. Even though the policy states otherwise, costs of damages resulting from customer pickup are often incurred to retain good customers. The obvious solution to offsetting free delivery is to include it in the product pricing. However, the prospect of improving margins by 1 percent to 2 percent is daunting in the minds of typical furniture retailers.

Retailers can’t ignore marketing practices of their competitors in all channels. However, they also can’t ignore eroding profit margins. I suggest a side-by-side comparison of the alternative channels’ marketing practices could produce some interesting opportunities.

All distribution channels have the same objective—sell to the consumer. Maybe some of the things offered by furniture retailers aren’t necessary in today’s environment.


The Great Outdoors

 

The groundhog delivered a gift last month when he didn’t see his shadow predicting spring was on its way.

Despite tumultuous tornados across the Southeast and a few snowstorms in the Midwest since Feb. 2, it appears the rodent may have gotten right and milder weather is making its move. Consumer minds are turning toward outdoors and outdoor entertaining as they wake from hibernation.

Cabin fever and the desire for dining al fresco can deliver a bevy of sales for retailers in the casual furniture category—a category that continues to post steady growth.

Looking back over the last few years, the outdoor furniture industry has gone from $3.51 billion in 2013 to $3.79 billion in 2015. The category grew 5.36 percent from 2014 to 2015, and forecasts call for another 5.4 percent increase from this 2015 to 2016.

Not too shabby.

Consumers continue to turn to outdoor living spaces turning patios, porticos and poolside full extensions of their homes. The downside for furniture retailers is the channel consumers are choosing to buy their casual furniture.

According to the latest Home Furnishings Business survey of consumers who have recently purchased outdoor furniture, home improvement stores remain at the top of the list of distribution channels for consumers buying the category. Nearly 33 percent shopped Home Depot or Lowe’s for the category and 26.1 percent made their purchase at the chains. Outdoor furniture specialty stores came in second for consumers with 21.7 percent of the sample shopping at the specialty stores and the same number—26.1 percent—bought from the specialty store.

Compare those numbers to the 13 percent who said they shopped traditional furniture stores for their outdoor furniture. Slightly more than 21 percent (21.7 percent) made their purchase from a traditional furniture retailer.

Despite the lower percentage, there is good news in the numbers for traditional furniture retailers. The 21.7 percent is up significantly from the 6.6 percent of consumers who last year said they’d made their outdoor furniture purchase from a furniture retailer. Mass merchants like Target and Walmart were the losing channel. In last year’s survey, 23 percent of consumers said the discounters were their go-to location for their purchase. This year, that percentage dropped to 13 percent.

When it comes to cost, consumers are on the stingy side. Nearly 70 percent said they spent $999 or less for their recent casual furniture purchase. At the other end of the price spectrum, 13 percent said they spent $2,500 or more on their most recent purchase.

Twenty percent of those surveyed cited pricing being too high was a barrier in the process. Other issues they encountered included lack of selection in finding what they wanted (20 percent); inability to judge quality of the furniture (10 percent); available quality did not meet standards (5 percent); and salespeople who weren’t knowledgeable (2.5 percent).

The majority of the surveyed consumers have relatively long life expectancies for their purchases. They aren’t looking to replace their furniture next season. More than 56 percent (56.5) said they expect to use their purchase for between three and eight years. Nearly 22 percent think their furniture will last more than 10 years.

 

 

Want More?

A more in-depth report on the outdoor category is available for purchase by e-mailing Laura McHan at Laura@FurnitureCore.com

 

4.82%

Outdoor percentage of 2015 furniture sales

$3.79 Billion

2015 outdoor furniture sales

5.46%

Outdoor furniture 2015 sales growth

 

Suppliers Say

 

OW Lee’s Monterra

Featuring deep seating, OW Lee’s Monterra offers a cocoon setting. Signature side arm pillows and pillow-stuffed back cushions are highlighted by flat bar and rivet details. Retail starts at $1,525.

 

Kingsley Bate’s Sag Harbor

Made from all-weather wicker in natural colors, Sag Harbor consists of a range of items for different applications and configurations. The collection includes dining, deep seating, and sectional pieces.

 

Treasure Garden’s Veranda

The Veranda mounts directly to a wall without the need for a pole or base. Available in a 5’ x 10’ rectangle model, the umbrella pushes up and locks into place without cranks, cords or pulleys. Suggested retail $895 in Sunbrella or Outdura; $695, Obravia.

 

Palm Springs Rattan’s 4300

Designed to seat 8, the 4300 dining set is crafted of synthetic woven wicker and offers outdoor cushions. The contemporary dining table is of a baked on powder coating finish. Seating includes decorative cushions and high backs.

 

Pride Family Brands’ Park Place

The Park Place by Castelle from Pride Family Brands offers multi-configuration components that feature a modern aesthetic for patio, terrace or poolside.  The Park Place is handcrafted with contemporary lines. Suggested retail $15,825 with pieces shown.

 

angleo:HOME by Walker Edison

The Coastal four-piece Wood Chat from angleo:HOME collection is made from solid, acacia wood in a vintage, weathered-gray finish. The deep-seated RTA design features wide, plush cushions. Suggested retail is $1,299 as shown.

 

Woodard’s Cortland

A blend of of cozy comfort and sophisticated style, Cortland combines design and on point fabrics with hefty welding. The collection features timeless details and a rust-proof aluminum frame. It is available in countless fabric and finish options to fit a variety of needs. Suggested retail is $1,392 per chair as shown; $2,425 for chat-height fire table with cast top.

Klaussner Outdoor’s Cascade

The two-piece Cascade sectional featuring a chaise and loveseat is ideal for areas smaller outdoor spaces. Designed with a traditional to contemporary feel, the collection features a slightly wider sloping arm for comfort with a bold look. Suggested retail is $2,699.

 

Kenzo by Tropitone Furniture Co.

Modern, sleek styling set the tone for Kenzo. The collection offers an array of cushion, woven, sling and padded sling seating options. Sleek lines give the group the ability to complement many outdoor spaces. Suggested retail for the group shown in an A grade fabric is $10,999.

 

Brown Jordan’s Pasadena

A nod to mid-century design and the birthplace of Brown Jordan Co., Pasadena’s sleek profile exudes understated sophistication. The collection frame features a smooth, flat aluminum extrusion in a gentle curvilinear. Sweeping lines seen on the arms and back legs highlight the beauty of the chair’s construction. Pasadena is available in both sling and padded sling styles. Suggested retail for sling lounge chair is $1,070; padded lounge chair is $1,225.

 

Opal Lounge Group by Jensen Leisure

The Opal Lounge Group offers comfort with transitional styling. Created in FSC Ipe timber by Swedish designer Dick Bjork, this group includes two lounges, a loveseat, side table and coffee table. Suggested retail as shown with cushions is $6,399.

 

 

Oxford Garden’s Tavira Collection

The Travira collection features a clean, contemporary and timeless design across a variety of products. The breadth of the line, combined with its low-maintenance material options, appeals to the varied preferences and needs of many customers.

 

Barlow Tyrie’s Aura

Aura offers an aluminum frame with teak accents for low maintenance. The table is available in various dining lengths and heights, and matching sun loungers are available in three frame colors. Slings are offered in four colors. Suggested retails begin at $532 per chair and $1,300 for the table.

 

Andalusia from Century Outdoor

Andalusia has always been a best-selling collection for Century Outdoor. Hence, the company added the swivel rocker lounge chair, which has become a top seller. Combined classic Mediterranean style in the comfort of a swivel rocker allows for luxurious outdoor living. Suggested retail is $3,765.

 

Delivering the Sale

Sometimes making the sale in the showroom is the simplest part of the furniture retail business.

After the consumer is sold on the product and the money exchanges hands, things in the business really start to get interesting. Delivering the sale into the consumer’s home can be the most intimate part of the process. She is inviting you into her home—her retreat if you will—where she hides away from the stresses of life.

Botch that process, and well, that $4,500 worth of furniture may just find its way back on the delivery truck headed for a return to the store’s discount room.

Everyone in the retail business knows things happen. Every delivery doesn’t go as planned without a glitch. The key is to be ready, willing and able to handle problems when they arise.

Picture this.

A two-piece sectional was sold to a consumer living the eighth floor of a New York City’s Bronx apartment. Home Inspirations Thomasville with its four stores in New Jersey is adept at maneuvering through the city for deliveries. However, this one was tricky.

Edward Massood, owner of the retailer, said the delivery crew arrived at the address to find an elevator too small to accommodate the sectional. That meant, the delivery had to be rescheduled because it required a walk-up, which requires additional time and preparation.

“We chalk it up to a miscommunication between the sales person and the customer,” Massood said. “The customer failed to tell us and we never asked about delivery challenges at the home.”

Fast forward to the new delivery day. The crew arrives prepared to haul the sectional up eight flights of stairs.

“They walk up the stairs, get the sectional into the home and they can’t make the turn out of the foyer and into the room,” Massood said. From there, the team had to carry the sectional back down the eight floors, reload it on the truck and reschedule yet another delivery day requiring disassembly of the sectional.

The third time was the charm, and the sectional made it into the apartment. Whether it will ever make it out remains a mystery; however, gathering all of the needed information early can net a much smoother delivery process.

“Thankfully, those stories are few and far between, but when they happen, they are real doozies,” Massood said. “It’s part of the scars that you get along the way. As good as we are, something will always get through the cracks. You live and learn.”

Furniture retailers can do everything right and still leave customers with a bad taste if they botch the delivery. Even as Massood said the screw-ups are rare, but when they do happen the key is correcting the problem and figuring out how to prevent the scenario from happening in the future. Those simple steps can go a long way in creating goodwill and retaining customers for life.

A satisfactory delivery means an efficient delivery, and smart retailers are always evaluating how to improve the process and maintain customer satisfaction. On average, a seamless delivery operation can account for about 2 percent of a retailer’s bottom line.

 

Keep it Clean

Miskelly Furniture in Jackson, Miss., offers same-day and next-day delivery on its sales. To ensure a clean, smooth delivery, the retailer has increased its efficiencies and limit damage to furniture by deluxing and prepping products in a staging area prior to loading it for delivery.

By examining all returns, frequency of same pieces and reasons for returns, the retailer determined about 15 percent of damaged items had been unpackaged prior to delivery. Now, the process calls for leaving those items—mostly dining tables, curios and paneled beds—in the original cartons for delivery. The shift shaved about 1 percent of daily damages and return deliveries.

The opposite was true for leather upholstery. Unpacking those pieces and inspecting them for damage sliced returns from surprises uncovered once an item was opened in the consumer’s home.

Home Inspirations Thomasville, which manages all aspects of its delivery until the moment the product lands in the back the delivery truck, takes the prep and deluxing process seriously.

“We preassemble everything in the store in lineup,” Massood said. “We preassemble beds, tables and occasional pieces. Our thinking is that if the delivery personnel can take something apart, they can put it back together in the customer’s house.”

Massood said the extra step also ensures all the parts—bolts, screws, legs—are included in the order. Mishaps happen, he said, and this extra step prevents an extra trip to the customer’s house for repairs or redeliveries.

Both of which lower the efficiency quotient, not to mention the annoyance to consumers who have high expectations for their entire furniture buying experience, including the delivery and in-home set up of their purchase.

 

Set Ground Rules

A lot of delivery problems track back to the point of sale. A detailed discussion during the sale can not only manage consumer expectations, but also uncover any potential challenges of maneuvering furniture into the home.

Zeroing in on details of where the furniture will go in the home can start to paint the picture of what the delivery process will look like once the truck arrives in the driveway. Ensuring sales associates are well-versed in which questions to ask, what information to share and other details will have a huge impact in ensuring success.

Whether the furniture is going on the first floor or in a basement or the second floor can impact the entire process. Stairs and turns can be tricky. Make sure the delivery person knows the landscape before they arrive.

Inquiring as to whether old furniture needs to be relocated or removed from the home is another key point to cover. Consumers may think nothing of asking delivery personnel to relocate an old bedroom suite to another room to make room for the new one purchased form a retailer. However, time is money on the delivery route, and staying on schedule is key.

Not explaining the process properly and what role delivery personnel will do and won’t do can net big problems. Specificity is imperative, and may require a checklist that sales associates can review with consumers.

Outlining the rules and expectations from the store’s standpoint and the consumer’s responsibilities in the process can save time, money and a lot of customer service nightmares.

 

 

To Outsource or Not?

In today’s fast-paced world, consumers are eager for product as soon as they make the transaction. They’ve likely put the purchase off for sometime, and most are ready to have it in their home immediately.

The hurry-up model set by Amazon and other retailers have set the standard for same-day delivery relatively high. In some markets, some products can be delivered within a few hours. Now, furniture is a bit different due to size and other features, but the expectation is there for immediate gratification.

Many retailers in the industry offer same-day delivery on purchases made before a certain time and sometimes there are limitations on product offered for the service. Of course, special orders are off the table.

Whatever the delivery time frame offered, managing the logistics of delivery can become overwhelming. Hence, some retailers opt to outsource the service to a third-party supplier like Cory 1st Choice Home Delivery, Zenith Global or Diakon Logistics. A number of vendors operate within the home furnishings industry, but the key for retailers is finding the right partner for your operation. 

Rob Davis, vice president of client solutions for Diakon Logistics, said its imperative for retailers to partner with a delivery company who shares a similar culture and approach to customer service. Otherwise, the partnership isn’t likely to last.

“We like to work with retailers that have a similar way of working,” Davis said. “The partnership has to be a good match for them and for us. A lot of that comes down to understanding their processes before we ever take over. We have to have a good grasp of how they do things so that we can build on their successes and improve on their shortfalls.”

By understanding a retailer’s culture and customer service approach, a third-party company’s team can meld more seamlessly into the delivery operation and work hand in hand to service the consumer.

Davis said many furniture retailers started in the business with a passion for the industry and have included delivery as part of that service to their customers. Most of today’s larger furniture retailers outsource the delivery function, he said.

The economies of scale can help determine whether outsourcing is practical. Davis said a good rule of thumb is that if a retailer is running less than three trucks in its delivery fleet, it makes the most sense for them to continue the management of the process.

“Once they get into three to five trucks, there becomes a break even point when it makes sense for them to outsource the process,” Davis said. “A lot of retailers love selling furniture and building those customer relationships. Managing the back shop becomes a necessary evil. That’s when we see retailers consider outsourcing. Once they’re above five trucks, a dealer will see a big difference from outsourcing.”

Davis said Diakon Logistics works really hard to retain the hometown, local feel when they begin working with a retail partner, noting that trucks can be branded with the store logo and drivers and delivery personnel can wear branded uniforms.

“It really goes back to understanding the store’s culture,” he said, adding that often Diakon will take over a retailer’s existing delivery team. “We become a seamless extension of the retail brand.”

Outsourcing takes the burden of staying abreast of the rules and regulations (See companion story) governing drivers away from the retailer and places it on the logistics company. Hours on the road and other rules tend to change frequently, as do the requirements for background checks in hiring.

The finding and hiring of drivers can be a long, drawn-out process. Davis said finding quality, delivery teams can be challenging.

“We’re looking for an interesting group of people,” he said. “We want them to have customer service skills; we want them to look good; we want them to be kind; and we want them to be creative problem solvers. They have to be willing to move furniture, have a clean background check, be really strong, pass a drug screen and have a clean driving record. That can be tricky.”

 

 

Davis said consumers are welcoming a delivery team into their homes, and that’s a big deal.

“We’re usually met by a female who either bought the item or picked it out,” he said. “We don’t know anything else about her. Don’t know if there’s been a life changes, like a divorce or whatever. This is the only time we’re walking into her personal space, and spending a good deal of time in her home. We have to get it right and she has to feel at ease. It’s completely different than someone coming into a showroom.”

Home Inspirations uses a hybrid approach to its delivery operations. The retailer controls everything until the product lands on the delivery truck. From there, the home delivery portion is contracted with Cory.

“We manage the receipt, the scheduling, the product preparation, and then we have a dedicated team we contract with to deliver into our customers’ homes,” Massood said. “The piece from the dock to the home is the only part we don’t do. It gives us an accountability trail as well. The signed signature from the customer gives us the completion, and if anything happens, we can tell where the process went wrong.”

Massood recommends retailers considering outsourcing to do their homework to uncover the right partner for their operation. Every good retailer should compare internal costs to an outsource provider, he said.

“A key indicator and good question when they’re looking for a partner is which other companies they deliver for,” Massood said. “If you’re selling higher-end goods, you’d want a delivery company that works with other higher-end retailers. Their personnel, the way they manage receipt of goods and the like should be up to the standard of the product you’re selling. You want them to have the same ilk of customer.”

He emphasized the importance that the home delivery team needs to be similar in nature to the customer to whom they deliver.

“Our partners are an extension of our store and our brand,” Massood said. “Because they are extensions of our team, if there is a delivery concern, we’re immediately dealing with the customer to calm them and make the problem better.”

 

 

 

City Furniture’s Fleet Goes Green

 

City Furniture has invested big in its delivery fleet as it pursues its aggressive, multi-year expansion throughout Florida.

The Tamarac, Fla.-based retailer with its 16 City Furniture and 11 Ashley HomeStore locations has invested $4.5 million in creating and running a green delivery fleet. The retailer has built its own compressed natural gas (CNG) station and converted most of its 100-truck fleet to run on the fuel. City Furniture sees the strategy as essential to its growth plans. The firm plans to have its entire fleet converted to CNG-powered vehicles by end of this year.

“We’re ready to expand our brand,” said Keith Koenig, City Furniture president, when he announced plans for two Orlando-area stores. Construction on the stores will begin this year. Plans for either two or three showrooms in Miami-Dade County are on the books for 2017, and the retailer plans to open its first Tampa-area store in 2018.

Koenig estimates that in the next three years, the new stores will add about 175 jobs to the company’s current workforce of more than 1,300 associates.

“We’re seeing double-digit same store sales growth for 2015 and remain confident in Florida’s long-term economic future,” he said. “That confidence led us to make a well researched bet in the last few years that clean, U.S.-produced CNG would be the best approach to the millions of delivery miles we log annually. We’ve recouped the investment in less than two years through fuel savings. That helps us live our ongoing environmental commitment, while continuing to provide customers with exceptional value at a great price.”

City Furniture already travels about 5 million miles a year to deliver online orders and serve its current showrooms in Southeast and Southwest Florida and The Villages. The $1.5 million CNG service station is located at the company’s 909,000-square-foot corporate headquarters and distribution facility.

“We’ve converted the majority of our fleet to bi-fuel trucks that run on CNG or gas, and we covered about 3 million miles this year using CNG,” said Andrew Koenig, vice president of operations for the retailer. “With just half the emissions, those CNG miles ran far cleaner, and at 60 percent lower fuel cost, than gasoline.”

The bi-fuel trucks allow the company to take advantage of lower prices for the miles run on gasoline. 

“As we expand in Central Florida and Tampa Bay, CNG use is a key infrastructure strategy,” he said. “CNG fleets are still unusual for Florida retailers, based on the up-front investment and need for easy access to fueling stations. Clean Cities Coalitions throughout Florida are helping to simplify the fleet conversion process, and with the number of CNG filling stations in Florida at 21 and growing, other retailers may want to consider a switch.”

The company’s eco-friendly fleet won honors in the national Green Fleet Awards this fall. Ranked 14th among the Top 50 Green Fleets, City Furniture was one of two private companies on the list of honorees that included the City of New York, the State of California and the U.S. Air Force Vehicle and Equipment Management Support Office.

City Furniture is achieving significant financial savings and environmental benefits, while sending a positive message to the public,” said Christine Heshmati, coordinator for Southeast Florida Clean Cities Coalition. “After intensive research to find the right alternative fuel for their specific needs, the company made a bold move that has already proved its value.”

Southeast Florida Clean Cities Coalition assisted City Furniture with the private and public sector networking to create its alternative fuel program, and is a starting point for companies considering a fleet conversion.

 

 

Tips to Consider

Seamless deliveries don’t just happen. The process requires planning, coordination and skill. Here’s a checklist to help get set deliveries on the path to success.

1. Educate the Customer

Make sure the delivery team explains the delivery process carefully. A brochure can be helpful to outline every step.

2. Educate your Team

Make sure the sales staff gets all needed information about the location the delivery team needs for a successful installation. Knowing things like entrance, mobility limits, stairs, even pets at home can go a long way in making for a smooth process.

3. Deluxe at the Store

Prep and deluxe the product prior to taking it away from the store. Identify products that typically need more care before delivery so that every detail is perfect.

4. Get in Shape

Think of ways to ensure the delivery teams are up to the demands of their job.

5. Flight Check

Before delivery, check products that will be assembled in the home to ensure all parts are available.

6. Right Equipment

Do drivers have the necessary equipment on hand to complete the installation? Create a checklist of tools and equipment that go out on every stop along with protectors like pads and mats.

7. Phone Early, Often

You may have verified a delivery time window the day prior, make a habit of calling again 30 minutes to an hour before arrival. People forget things.

8. Impressions Matter

Make sure the delivery team is mannerly, neatly dressed and well groomed.

9. Time Wisely

Analyze deliveries to make flexible scheduling slots instead of allotting specific number of minutes per stop.

 

 

Checklist for Outsourcing

Retailers trying to decide whether to continue managing their own delivery operations or farm it out to an external company, need to consider several things. Here’s a checklist recommended by Diakon Logistics’ Rob Davis that may make the exercise a bit easier.

 

1.      Analyze volume to determine if there’s enough to outsource.

2.      Consider expansion plans. Are you looking at new markets or a new distribution center? Important to figure out how you’ll fund the expansion. Outsourcing could be a way to free up capital.

3.      Identify companies that you’d feel comfortable working with. Find someone you can work with through challenges.

4.      Research the history of the delivery company, as well as the future of the company. Mergers and acquisitions happen frequently. Make sure you know about long-term plans.

5.      Ensure the delivery company is up to date on the latest regulations regarding sourcing teams, fleets, etc. Do they really doing background checks and play by the rules? Make sure they’re not cutting corners.

6.      Know what your delivery metrics are. How many incomplete deliveries are there? How many delivery miles are logged within a certain period? How many deliveries were missed because a customer wasn’t home? Those things can help determine if it’s time to outsource the service.

 

Keep Consumers Happy

 

When it comes to consumers and their happiness with a furniture purchase, deliveries lie at the root of complaints against furniture retailers.

While the Better Business Bureau doesn’t maintain statistics on furniture deliveries alone, the organization offers overall numbers for the retail furniture industry. Each year, between 13,000 and 14,000 complaints are filed against furniture retailers. The complaints vary from broken furniture, quality of goods, deposits taken and furniture not delivered, and damage done during delivery.

Overall, about 22 percent of consumer complaints to the Better Business Bureau regarding furniture stores are categorized under “delivery issues”. It’s possible that complaints filed under other categories were the result of a poor delivery. A wall was dinged when furniture was taken up the stairs or down a narrow hallway. Or, a delivery time was inordinately late.

The best advice from the Better Business Bureau in dealing with consumer issues is to be responsive and continue the conversation. Most of the time, responsiveness will abate the problem and consumers won’t turn to the Bureau or to the Internet to lambast a company.

 

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