March 7,
2007 by in UnCategorized 
By Home Furnishings Business in on March 2007
Picture the licensee. Picture his stores, all built to match the corporate template. See his products, chosen with the help of the company’s merchandising guide. Look at his advertising campaigns, just like those of his fellow licensees across the nation.
Licensing: a path to success for the non-creative? As La-Z-Boy informs its potential licensees, “our marketing, merchandising and sales systems make it easy for you to succeed.”
Now meet Brad Parker, owner of six La-Z-Boy stores in and around Portland, Ore. The first thing you should know about Parker is that he is practicing a unique strategy in furniture sales that many people dismiss as naïve and counterproductive.
The second thing to know about Parker is that, while he considers himself a loyal and trusted member of the La-Z-Boy family, he can get a little miffed at his corporate parents and colleagues—especially when they look askance at his unconventional approach to retailing, his entrepreneurial passion. It’s known as “standard work.”
Setting the Standard
The practice, which powered Japanese manufacturing to greatness, trains employees to adhere to step-by-step procedures to reduce variability and increase efficiency—and thereby profits. “Standard work” is standard in many a factory around the world. But Parker preaches it as the best way to sell furniture too, adopting it not only for the people hauling case goods in his warehouse, but for the salespeople selling those goods on the floor.
“This whole notion of mistake-proofing a business, and tracking the results and having a continuous improvement cycle—when you apply it to retail, it’s just mind-boggling,” said Parker, who has used the technique on his sales floor for three years.
He hasn’t managed to sell the concept to La-Z-Boy headquarters. “We did it without their cheerleading and without their financial support,” he said. Nor have many others in the industry taken great interest in standard work for sales.
“People will tell you in the furniture business that there’s no such thing. And it’s b.s. There is total standard work to be had,” Parker, 40, said with his typical candor.
Why don’t others buy the idea?
“They typically will say our business is different,” Parker said. “They will say every piece of furniture is different. Every customer is different. Every situation is different.” But what they fail to realize, Parker continued, is that in some ways, every sale is the same.
Standard work will be standard before long, he hopes, simply because it’s effective. Willing to teach anyone who wants to learn, Parker has begun training fellow La-Z-Boy licensees in markets across the nation, from Phoenix to Scranton, Pa. “You’ve got to be a gorilla on the street to get stuff done, and then you attack the bureaucracy,” he said.
Family Business
Parker started off as far from bureaucracy as he could get. Though his family had owned a suburban Portland furniture store for generations, and though they were eager for him to join them after he graduated from the University of Oregon in 1989, the communications major had far different plans.
He became a builder, and worked for $5 an hour. He built his parents’ house. Then, thanks to a bad back, Parker needed a new profession. Once again, this time successfully, his family tried to woo him back to Parker Furniture. He converted the store’s computer system, and wound up working there for five years. Then La-Z-Boy came calling with its new La-Z-Boy Furniture Galleries concept. Would the family like to open three of these stores in Portland?
“Everybody in the family said ‘no way,’” Parker said. Except of course, Brad Parker. “Being young and naïve, and suffering from ‘tell-me-I-can’t-do-it-and-I’ll-do-it,’ I said, ‘I’ll do it.’ ” Starting in 1995, Parker opened a store a year for five years, mostly from the company’s cash flow. A sixth store opened in 2003. Last year the stores made $24 million and employed 99 people.
Success didn’t come easily. Parker ran out of money after the third store opened. This is where he is particularly glad to be part of a business larger than his own operation. “We had La-Z-Boy there to help us,” he said. “They would let us put some invoices to a note for a short period of time, until we got out of trouble. They’ve done that for me a couple of times as we grew too fast.”
It was only as the growth came under control that Parker became a student of standard work and began developing his unique approach to sales. He had been frustrated with popular sales manuals and methods, which he found simply didn’t work.
A friend, business consultant Mike Martyn, who studied standard work at Toyota, had some suggestions: Mine your employees for ideas. Streamline with visual cues. Keep prodigious records and break processes down into simple steps. Born in America, the standard work concept helped the United States win World War II, Martyn explained. It then ignited the Japanese manufacturing revolution. Now it would transform a cluster of La-Z-Boy stores in Greater Portland.
Another compliment Parker pays to La-Z-Boy is that while they may not have cheered him as he explored new worlds in sales, they trusted him, and allowed him to conduct his business as he saw fit. “How much freedom did La-Z-Boy give me? Pretty much 100 percent,” Parker said.
He started in his warehouse, where he saw tremendous duplication. So he gathered his warehouse workers and together they color-coded the building, so that when a piece of furniture is dropped off, it must be placed either in the red return lane, or the yellow repair lane. Red or yellow tape is attached to the product, as is a short note, written by the delivery driver, describing its owner’s wishes. The product is coded for the parts it needs, so when the part arrives, it’s easy to match. Parker takes pride in the fact that this pared-down diagnosis and sorting system was built from the bottom up. “All these suggestions came from front-line, entry-level people,” he said.
Parker was then able to cut two positions from his warehouse.
Following the Script
But what about standard work on the sales floor? “This,” Parker said, “is where people go nuts on me.” It’s one thing to mandate a step-by-step procedure for returning an ottoman to a warehouse. But do you really want to tell your salespeople what they must say to their customers?
Yes, Parker said.
“When everybody is doing things their own way, you can never improve anything . . . you have to stabilize a system before you improve it. That’s just common sense.”
Parker and Martyn studied the sales process for six months and then broke it down into steps that would fit on a single sheet of paper. They drafted 18 different versions before they decided they got it right. The theme of the training program they created from their study was that the best way to learn is by doing.
Here’s how Parker and his team have been training salespeople for the past three years:
The trainee reports to a room in Parker’s distribution center, which is outfitted with a vignette, a projector and a video camera. Role playing ensues, to teach a “structured interaction.” The trainee learns to open with the following line: “Tell me about the room you’re shopping for.” Otherwise, there is no script. But the trainee will also see how his or her new job is broken down into steps—from greeting the customer to gathering information to demonstrating the product to closing the sale—and how these steps must be done in order. During the gathering information stage, the “the five F’s” must be covered: fit, familiarity, fashion, function and finance. The training is complete when the trainee can move smoothly from step to sub-step to step.
“We didn’t reinvent selling,” said Parker. “We reinvented how to train salespeople.”
Graduates of the program are effective on the floor in 30 days, said Parker, as opposed to the four months that it previously took. Once on the job, a salesperson is required to fill out a card for each encounter with a customer. A yellow card designates a sale, and it goes up on the board in the lunchroom. A red card indicates a failure to close, and must further show where in the process the sale broke down. It too goes up on the board.
Is there resistance from the sales staff?
“We had tons of resistance at first,” said Parker. “But new people who come into the company and have never experienced it say, ‘Oh my God, this is the best thing I’ve ever seen in my whole life.’”
The beauty of standard work, said Parker, is that a manager and salesperson can instantly spot where a sale broke down. “They immediately become a mini-training center.”
But why stop at retail furniture sales? “I use it with parenting,” said Parker, father of a boy, 11, and a girl, 9. “Whether I’m teaching them to ski or to use the lawnmower . . . first major step, stand to the side. Second step, pull the cord. Third major step, turn the choke off...”
Martyn said he’s surprised by how much resistance Parker has encountered, considering the success of his stores. But he knows the eye-rolling won’t faze his friend, and that eventually, Parker will tune more people into his methods.
“He’s one of these guys who is going to pull the rest of the industry along if he has to,” Martyn said. “With Brad, it’s ‘go big or go home.’” HFB
March 7,
2007 by in UnCategorized
By Home Furnishings Business in Case Goods on March 2007
Billionaire real estate magnate Donald Trump truly needs no introduction. Not only his his name emblazoned on a dozen skyscrapers, he’s become a constant presence on TV as the host and executive producer of The Apprentice and as the CEO of Trump Organization and founder of Trump Entertainment, which operates casinos.
The latest expansion of what he calls the “Trump Brand” is a licensed collection that will be produced by Lexington Home Brands that will have its debut at the March High Point Market. The collection includes both a traditional group called Westchester and a more contemporary line called Central Park that draws inspiration from his Trump Tower apartment. His focus on furniture builds on wide-ranging business interests that include ownership of the Miss Universe and Miss USA pageants, Trump Vodka, Trump Magazine, Trump Golf, and the Donald J. Trump Men’s (apparel) Collection.
The author of nine business books, Trump recently took some time out from his hectic schedule to discuss his entry into the furniture business with
Home Furnishings Business.
With all of your hotel and apartment projects over the years, how involved have you been in selecting or specifying furniture for those buildings?
I’ve done everything from testing many styles of chairs for the ballroom at one of the Trump National Golf Clubs to selecting carpet swatches for another property. Details are key to success in business. I have an eye for little things. I have personally signed off on all the furniture designs, and wouldn’t have it any other way, because my name is on the product.
The book “Trump Strategies for Real Estate” talks about your belief that having the right, high-end furniture in a building’s lobby can play a very beneficial role in marketing an upscale apartment project. What does furniture say about one’s home? What is the message that the Trump Home collections will send?
The right furniture, floor coverings, lighting all have a huge part to play in setting the stage for a property, and for a person’s home. In the home, it’s about making a statement about who you are and what you enjoy. Trump Home collection, which is just fantastic, will provide the look of a luxurious home and will make it available for a wider audience. Trump Home represents affordable luxury. It will be tremendously successful because of the stunning look you can create in your home for a great price.
How did you decide to join with Lexington Home Brands to aim the Trump collections at the middle tier of the market rather than the upper end?
Again, Trump Home is about affordable luxury. Lexington Home Brands is truly one of the best furniture companies out there. They understand the industry, they understand brands, and they understand what will sell. This collection of furniture is just the finest by far in its price range. We didn’t skimp on the look or the materials. It’s a gorgeous group of furniture.
Do you have a favorite chair or sofa at home? What is it like, and why is it your favorite?
I have a favorite chair where I do a lot of reading. It is beautifully made and very comfortable. It has served as an inspiration for my furniture line.
Back to “Trump Strategies For Real Estate”: The book relates the story of how you were able to sell antique furniture from Mar-A-Lago for more than you’d paid for the estate itself. How were you able to recognize the value of that furniture when the sellers obviously had no idea?
As with some of my real estate developments, I often see what others overlook, the underlying potential. That’s part of my success in business and in life.
As you can imagine, a lot of furniture retailers will be asking themselves, ‘How can a New York City billionaire who lives in a penthouse help a furniture store in middle America sell bedrooms and sofas?’
Everybody has a dream. Through diligent pursuit, hard work, focus and taking risks, I’m living mine. I’m living the American dream. I understand that need for everyone to have a dream. I’ve proven over and over that I know what people want and need. People want to feel that they have achieved their own success. The Trump Home lifestyle represents affordable luxury and that look of success and status. This collection is absolute proof that you can live richly without spending a fortune.
You’ve already been involved in the design of a signature line of suits, watches and neckties... What have you learned through those endeavors that you’ve applied to the furniture line?
You absolutely have to understand what the consumer wants and how to deliver it. You’ve got to provide the best product with the best materials. And you have to partner with successful companies that will deliver what they promise. With the outstanding designs in Trump Home, and a terrific partnership with Lexington Home Brands, we’re going to be hugely successful.
My perception is that, as a brand, Trump is very male-focused, but furniture retailers are typically seeking to appeal to the female shoppers who are said to make most of the decisions regarding furniture purchases. How are you seeking to make the Trump furniture line appealing to women?
The Trump Home line isn’t overly masculine or feminine. It’s top-quality, high-design furniture that will make a statement in any home. I think women are going to be romanced by the stunning looks we have designed, particularly since we have two style directions that will find a wide audience. There’s already a huge buzz building about the Trump Home furniture collection, and both the female shoppers and the retailers are going to be very happy with the results when they see this beautiful furniture. It is true that women have great influence in purchases, but that does not require a feminine product to attract her attention. Women have a keen eye for style and they like to create a home that represents their preferred lifestyle for their families It is not a self-serving decision, but one that represents her dreams for the family.
Of course, we haven’t seen the collections yet, some people will be surprised to hear one would be somewhat traditional and the other will be contemporary. Was the traditional furniture inspired by Mar-A-Lago, which was built in the ‘20s?
The inspiration for both groups came from the various Trump properties including Seven Springs Bedford Estate, Westchester County, Mar-a-Lago, and the New York City properties. The more traditional collection of Trump Home was inspired by estate living and it offers a large-scale luxury manor look. The more contemporary group is elegant and rich and was inspired by the penthouses in Trump Tower and my other properties.
How does Donald Trump go about studying the furniture market and determining what consumer needs he can answer? Do you visit people’s homes, go to furniture stores, study the home magazines?
I’ve been involved in interior design and furnishings as I’ve developed properties all over the world. From the huge success of those projects, I’ve definitely proven that I can offer looks that appeal to people. I also have visited the most beautiful and luxurious homes in this country and internationally, and I’ve seen the best and most exclusive furniture designs. Terry Lundgren, CEO of Federated Department Stores, is also a great friend of mine. Working with him on the exclusive line of Donald J. Trump men’s clothing has given me keen insights into what the consumer wants and what retailers need.
Who is the customer who will buy a Trump bedroom or a Trump dining room?
A smart consumer who wants to surround herself or himself with the very best furniture. The Trump Home will give the customer luxurious pieces at affordable pricing, to create a fantastic home.
With all of your high-profile endeavors, do you foresee opportunities to promote the Trump furniture collections by featuring them on “The Apprentice” or in one of your resort projects?
I’ve spoken with the great team at Lexington Home Brands about future projects we could collaborate on to create even more success.
Up until recently, when the real estate market was very strong, furniture sales didn’t get the lift many executives in our industry had hoped for. Do you think there’s a strong correlation between home sales and furniture sales? Where do you see home sales headed over the next couple of years.
I think there might be a tie between home sales and furniture sales, and we all know the real estate market changes every day. Industries also have cyclical years with business going up and down. But I also believe that people are invested in their homes and in their lifestyles. Although furniture sales have typically been relative to the real estate market, we have been seeing a trend where people are trading up. People are not always purchasing for a lifetime, they want to be surrounded by the lifestyle they aspire to. Trump Home will be that inspiration for many, many people.
You’ve gained a reputation for being pretty darned competitive. How will you measure the success of your furniture collections against celebrities who have gotten a head start such as Kathy Ireland, John Elway or Martha Stewart?
Each of those people represents a particular lifestyle. Trump Home represents the best in luxurious furniture at a price that is affordable. That’s what the Trump brand is about, the very best products for a person who wants to live the very best life. HFB
March 6,
2007 by in UnCategorized
By Home Furnishings Business in Bedding on March 2007
Al Boulden, senior vice president of sales for Sealy Corp., will retire effective March 30.
Boulden joined Sealy in December 1991 as Eastern regional vice president of sales, after a lengthy career at Frito-Lay. He moved from Philadelphia to Dallas in 1997 where he led central region sales, and was promoted to his current position in 2001.
“As a senior leader of our U.S.A. sales team, Al has helped guide and develop numerous Sealy managers and associates during his career,” said Larry Rogers, president North America. “He has helped grow our domestic bedding business from sales of $543 million the year he joined Sealy, to sales of $1.3 billion in 2006.”
Boulden said he believes in Sealy’s long-term outlook and remains a loyal supporter and shareholder of the company.
“To me, retiring means focusing on other areas of passion, which in my case will be family, church and community,” he said.