Daily News Archive
Brought to you by Home Furnishings Business
February 28,
2013 by in UnCategorized 
By Aggregated Content in Furniture Retailing on March 1, 2013
from http://www.kentucky.com/2013/03/01/2537526/noted-designer-among-keynote-speakers.html#storylink=rss
Noted New York interior designer Laura Bohn's favorite go-to retailer might be a surprise to some.
"I absolutely love Ikea," said Bohn, a keynote speaker at next weekend's Blue Grass Trust for Historic Preservation's Antiques and Garden Show at the Kentucky Horse Park.
For accessories for the kitchen and bath, metal shelving, hardware and the like, "you can't get much better," she said.
She's been known to use purchases from the moderately priced Swedish retailer for high-end projects and to shop there for her own home.
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February 28,
2013 by in UnCategorized
By Home Furnishings Business in on March 2013
At first glance, it may seem like Colorado-based bedding chain Urban Mattress is doing everything ¦ well, wrong. The stores give a percentage of all sales to charity. They dont do big promotions. Theyre very selective in what they carry, avoiding most of the big mattress brands. They encourage employees to own their own franchises.
Thing is, these unconventional principles are working. The eight-store chain (with more locations in the works) is thriving, experiencing growth in a still-hurting economy, with no end in sight. How did they do it, and why is it working so well?
The driving force behind what we do ¦ our value system ¦ its really about justice, fairness and humility, said Steve Von Diest, a co-founder and franchise owner in Urban Mattress who also coaches new franchisees.
How justice plays out in the mattress industry is fairly deceiving, Von Diest continued. The bait-and-switching, even the labeling of mattresses from the same vendor between two different stores is very different ¦ so we said, What products can we choose that are going to eliminate the three-to-six-year turnaround (between beds)? We focused on products that we believe (are) right for the customer. We may not see the customers back for 10 to 20 years. That may not necessarily be right for our bottom line, but its right for them.
Were very upfront. We dont do sales (promotions) because weve noticed a pattern in the industrysales are typically a markup with a dropdown ¦ weve lowered our margins to as low as possible because were owner-operated and we can do that.
As for the second part of the equation, mercy, Von Diest defined that as the driving force for what we believe a for-profit business can do in the community. ¦ We care about our customersnot just what their mattress feels like, but also whats going on in their marriage, their lives, because it all fits into taking care of people.
We also tweak their mentality on how they too can give back to the community. So our giving program is not just me and (co-founder) Ethan Rietma giving in the background. Weve actually put it very upfront in our stores, so our customers know that 1 to 2 percent (of sales) is going to go to a local non-profit (charity), and our customer gets to choose the emphasis. ¦ In each of our stores, there are four to five local charities that the owner or their staff is passionate about.
Addressing humility, Von Diest said I wouldnt necessarily call the mattress industry a humble industry. Theres not a lot of admitting of fault and errors. Ethan and I know that many of our customers may know more than us. Theyve done research, so well humbly say were sorry, were ignorant. Well also own our mistakes, and were going to make it right with the customer. If were replacing something, we want to be very upfront.
A Chat Between Neighbors
Urban Mattress started out in 2008 as nothing more than a friendly exchange between neighbors. Billy Williams, who owns the franchise, was my neighbor and a good friend, as was Ethan, Von Diest recalls. We all lived on the same street, and Ethan and I had done non-profit work, community development, we were former pastors. ¦ Billy said Hey, Im going to start a mattress store and Id love to have you and Ethan join me to infuse the non-profit valuescaring for people, caring for the communityinto Urban Mattress. Williams launched the store in Boulder, Colo., with Von Diest and Rietma, who eventually started three more franchises.
To Von Diest, it was crucial that they bring in like-minded people to open new stores. He recalled, What Ethan and I said was Were going to take on young guysupper 20s to mid 30sand were going to teach them how to do this non-profit value set/for-profit mattress business. ¦ Well help them launch new stores of their own because I really believe that the owner-operated model allows for care and an opportunity to sell thats really different than your big box stores.
Select Vendors
The leaders of Urban Mattress bring their carefully thought-out mindset to their selection of products as well. Were an elite retailer of Tempur-Pedic, and we love them, Von Diest said. Most of our staff sleep on them. Also, we are an exclusive retailer for Vi-Spring out of England. ¦ We carry Sherwood Bedding out of Phoenix. Those are our main manufacturers. We do carry Sweet Sleep out of Boulder, Colo.she is the provider of most of our organic pillows and accessories in the natural world.
Were not in bed with Serta, Sealy and Simmons and some of the big brands, so it allows us to differentiate product in our stores. Its very difficult oftentimes to find our product style and quality in the big box stores ¦ weve chosen our product to give (customers) a wide variety.
No Push, Push, Push
Von Diest and his fellow franchisees pride themselves on Urban Mattress no-pressure sales approach.
Our new staff, we script them that You have to talk very upfront, he said. Lets just use the idea that theres going to be no additional add-on prices of delivery, set-up, removal. All of that is very clear: Its free. ¦ We talk about why we price things the way we do. ¦ The product we carry is good enough to sell itself. I just want (customers) to discover the best thing for them according to their pocketbook, as well as whats good for their body. HFB
February 28,
2013 by in UnCategorized
By Home Furnishings Business in on March 2013
Sheelys Furniture & Appliance Co-Owner Sherry Sheely likes to put herself in her customers shoes on a regular basis.
I make a point of walking into my front door at least once a week to see what customers see, Sherry said. We carry an array of beautiful furniture in room settings, and you can see 40,000 square feet of the showroom from the entrance.
Sherry, who owns the North Lima, Ohio, retailer with her husband, Dale Sheely Jr., wants to make sure shes cool with what customers see when they walk in, especially since the retailer has set itself up as a furnishings and appliance destination for customers from as far away as Pittsburgh, Pa.; and Columbus and Cleveland, Ohio.
A TRUCK AND $100
Sheelys origins date to 1952, when Dale Sheely Sr. established the retail business as an outgrowth from his work as an electrical contractor serving a booming housing market in northern Ohio.
Its the old story of $100 and a pickup truckhe traded his Studebaker to get a pickup truck so he could make deliveries, Dale Sheely Jr. said. He started with hot-water heaters, then ranges, and then someone asked if he could get a dinette.
He paid for everything with cash.
Dale Sr. relied on honesty and fairness in dealing with customers, and everyday low pricing. He also didnt advertise like other retailers, relying on word-of-mouth and repeat business.
That ethic persevered as the business grew into a home furnishings and appliance destination that reaches as far afield as Pittsburgh and Columbus: The first credit the business requested was a 90-day note to support a new store opening in 1982, Dale said.
The business is part of Dale Jr.s lifehe got his first profit-sharing check when he was 9-years-old, when he started out burning cardboard packaging, and finishing off assembly.
I put a million screws into a million pieces of hardware, he said. When I was 21 I started buying lamps and accessories. It was something my dad didnt like to do, but it was becoming a big part of our business.
From there, Dale moved into buying occasional tables, bedroom and dining room.
He also got a big dose of the customer service side of the business: For 20 years I handled all the complaints for a store making 20,000 to 30,000 deliveries a year.
MAKING A BRAND
Sherry began working at Sheelys in October 1976 in the companys lighting warehouse. She and Dale Jr. took over running the business in 1994.
Sheelys had done pretty well on Dale Sr.s model, everyday low price, no finance shenanigans, and a reputation spread more by word-of-mouth than advertising.
When Dale Jr. and Sherry stepped in, I stepped back from buying and tried to see the forest, not the trees, Dale said. Were trying to make a destination between Pittsburgh and Cleveland. We didnt do no-no-no, we in the middle of nowhere, and we do no advertising. We had to make ourselves into a brand.
The first step in turning Sheelys into a go-to destination was a complete store remodel.
We started from one end and remodeled the entire store to make it more appealing to the female consumer, Dale said.
The store started its first television advertising at that point, focusing on trust and free local delivery. It helped that Sheelys had its on team of drivers and helpers on board (the retailer now leases its trucks due to favorable terms on leasing versus owning). Most of all, its a nice place to visit.
Our maintenance, housekeeping, merchandising, painting are impeccable, Dale said. Our bathrooms are pristine. Its all about making the store a place people want to shop.
NIPPING PROBLEMS IN THE BUD
The retailer also committed to no-hassle, problem free product delivery. The store maintains between $3 million and $4 million in inventory; and as Dale commented,
We dont let a factorys problem become our problem. We dont have an outlet center.
What Sheelys does have are eight wood furniture technicians, four upholstery technicians and four appliance technicians on staff.
A lot of retailers sub out their service, but this gives us better control, Dale said.
All thats a reason that, while the store carries name brands, thats not what brings customers in.
People arent going to drive all the way here to buy a Flexsteel sofa, Sherry said.
Theyre coming to Sheelys. (The stores Web site has videos along the theme Why you should shop at Sheelys.)
ADS THAT ADD VALUE
Our ad agency came up with the idea of doing 30-second design tips spots, Sherry said, all tied to Sheelys Web site. Its the idea of customers getting something for nothing.
Dale credits Sherry with accelerating Sheelys efforts in value-added marketing.
We do our own commercials, Sherry said. We try to educate. Your lifestyle isnt only the clothes you wear, its the furnishings in your home, and your style is your personality. ¦ Whatever your style, we have it.
We tell our salespeople, Youre not selling a sofa, youre selling a lifestyle.
Commercials, all carried on the Web site, include themes such as Domestic Diva to Fashionista and Dress Your Home.
Theres a very strong personal touch as well: Three of the commercials on now on our Web site were done in our own home, Sherry noted.
Social media plays a growing role at Sheelys, which used Facebook to promote its 60th anniversary with a $20,000 furniture and appliance giveaway; and monthly giveaways for Facebook friends.
We have a 27-year-old young lady with a masters degree in communications handling our social media, Dale noted. Were working on a Pinterest contest right now.
LIVING THE MESSAGE
No one around here carries as much as we do in as many categories, and its heavily accessorized, Sherry said. We have three full-time decorators on staff and a merchandising manager.
Lately more customers have been asking for domestically made goods, and Sheelys responded on its floor.
We have two great Amish lines made here in OhioYutzy and Palettes of Wineburg, Sherry said. Its a great option.
Sheelys also separates itself from the competition with a no sales mentality.
We try not to be in a situation where we have to run constant sales, Dale said. We prefer to run eventsgiveaways, free this, but not things that cost us margin.
That also means when Sheely does run its once-a-year warehouse sale on discontinued merchandise and cancelled special orders its not eating into moneymakers on the floor. It also means customers actually respond to the message: We had 2,000 people through the door this past Saturday, Sherry said early last month of this years warehouse sale.
A 12-month financing offer around New Yearsthats as far out on financing as the store goesdrew 1,500 shoppers.
THRIVING THROUGH RECESSION
An old steel town, North Lima might appear a dismal place to have a home furnishings business during a recession, but Sheelys efforts to create a destination with wide geographical reach, its traditional avoidance of debt and strong sales training had the company growing sales ahead of many in the business.
We operate on cash flow, Dale noted.
In 2008, Sherry said Sheelys took a fine-toothed comb over all our operations. We saved $8,000 a year on cleaning supplies. ¦ Every department can cost you money or save you money.
In 2011, the store chalked up its best furniture sales year in 60 years of doing business.
I attribute that to a well-trained sales team, Sherry said. Theyre in training five to six weeks before they hit the floor. We carry 25,000 SKUs, so theres a lot to learn.
Furniture salespeople sell everything but appliances at Sheelys.
Furniture is a wantappliances are a need, Sherry noted.
Sheelys also is bringing in new blood to keep the ball rolling. That includes General Manager Jeff Curry, who started in December; Sales Manager Paul Stehnach; and Warehouse Manager Bruce Wiser.
Ive been here 50 years, and Ive never seen anything like the energy these guys bring, Dale said. HFB
February 28,
2013 by in UnCategorized
By Home Furnishings Business in on March 2013
At the recent Las Vegas Market, I was in a showroom visiting with a manufacturer. He was showing me the new line the company brought to the show. It was a sharp-looking suit (bedroom, dining, living room Ill keep that my secret).
While he was explaining the features and benefits of the product, I casually mentioned a feature I saw on a similar product in another showroom. The feature I mentioned is a definite benefit and could easily be adapted to most any product you see at Market.
It addresses a problem most consumers have had an issue with at some point before. The fix was a very simple one, but one I had never seen. When I mentioned this, the manufacturer said in jest, Thanks for the tip. When I heard his response I just paused and thought, oh damn, I just let the cat out of the bag. After a couple of seconds, we both chuckled and our conversation began on how long it would take before others in the industry began knocking off this particular feature.
Im guessing Ill see it again in High Point at the April Market, but not from my manufacturing friend. Hes far too reputable and classy to blatantly take someones ideabut there are others, Im sure, who are implementing this into the design right now.
Ive heard it said, Imitation is the highest form of flattery, but maybe not in this case. Designers spend months working on a concept, picking the right materials and coming up with the perfect lines to create the perfect piece.
Once they are happy with the product, work begins with a manufacturer to produce it. The manufacturer builds and markets it, with hopes of getting it to retailers and in front of the consumer. A lot of time and effort go into this piece. It was an idea in someones head just a few months ago. Now the whole world can see it, draw inspiration from it and well, knock it off.
Im really not sure how I feel about this. When does a person cross the line from drawing inspiration to outright knocking off an idea? You all have seen a number of bedroom suits with similar designs and features, someone was first up with the idea, so did all others knock it off? Do you or your customer really care?
Im guessing the deciding factor is whether or not it moves off your showroom floor; and Im OK with that. Maybe the original manufacturer that made this piece should have done a better job of marketing this item. They need to make the potential buyer aware of why the original design is hands down a better product.
They have to distinguish a value at that price point. Then, the consumer has a better understanding on why the price point is set as such. As they decide on which product to purchase, original or knock off, maybe that saying you get what you pay for will echo in their heads.
This issue of Home Furnishings Business magazine takes a look at intellectual properties and potential issues that could arise from buying and selling copyright infringed goods. Please take some time to read this issue and make sure you arent putting your business in a potential situation that you may regret later.
February 28,
2013 by in UnCategorized
By Home Furnishings Business in on March 2013
When it comes to furniture retail, most folks in the business speak to the passion they have for helping everyday people make their homes beautiful and comfortable. The furniture retail business is a bit of a passion for most of you.
Think about it, after all; retail has amazingly long hours, little thanks, sometimes finicky consumers.
Thats a lot to take without a love for helping people create welcoming homes.
Several conversations with retail friends have all led back to the frustration that legal topics and issues bring into their businesses. Staying abreast of changes in regulations impacting business owners is more than a full-time affairthere are hour and wage regulations; safety regulations; truth in advertising regulations and the list goes on and on.
Hint at the possibilities of a lawsuit over copyright infringement from a competitor or supplier and some retailers may break out into a body-coating sweat. Heaven forbid a legal squabble with a consumer who happened to break her arm and injure her rotator cuff when she stumbled over a low-profile cocktail table while she was admiring great artwork on the wall. (True story, by the way, that cost a retailer a good chunk of change in lawyer and settlement fees.)
In todays world of hurry-up electronics, smartphones, the Internet and social media, copyright regs get more and more murky and indepth. Its hard to know what is a copyrighted content, images or designs when surfing through Pinterest, Facebook and Google+. When does someone cross the line from sharing and step into copying?
On another regulation front, the industry is having to reevaluate the use of flame-retardant chemicals in upholstery and bedding. I remember stepping into this industry nearly 20 years ago when the debate over flame retardants was raging as to should we or shouldnt we use such chemicals in home furnishings to prevent fires.
Todays research shows the chemicals could leach and result in ill effects to people. Back in 1994, there were folks in the industry who stood firmly against such treatments for the very reason of the unknown human impact of the chemicals. Californiathe state with some of the strictest regulationsis currently leaning toward changing its standards on chemical treatment for upholstery. Typically, as goes California, so does the rest of the Union.
Its enough to make ones head spin, and its not easy.
The legal aspects of running a retail business seem more complicated than our countrys tax code. Thankfully, there are lawyers in the world who understand the ins and outs of legal matters that mean the most to retailers.
Inside this month, we take a look at a few of the legal issues retailers face on a regular basis. By no means did we delve into every single law or nuance that you or your colleagues have to worry about. THAT would take some doing.
My advice?
Read the issue, and take some notes. Voice your concerns with your legal counsel. Make him or her a true business partner that you consult on a regular basis instead of only in times of legal crisis. Youll be glad you did.
Happy reading.