Wednesday, December 27, 2017

How to Keep Your New Year's Resolution

It's that time of year when many people consider making a resolution to improve their life, business, relationships, health or a host of other reasons. However, the odds say that most resolutions won't be successful. According to one study, only 8 percent of New Year's resolutions are kept.
 
A recent article in The New York Times related that the three main reasons you may fail to keep your resolution are:
  1. You are not the driver of the decision. External forces such as friends, colleagues or society tell you that you need to change instead of you actually making the decision to change.
  2. You don't define success or identify milestones to reach a goal.
  3. Your goals are unrealistic.
The Times points out that thinking too positively and not giving yourself enough breaks are other reasons goals are not achieved. Gabriele Ottingen, a professor of psychology at New York University claims, "The more positive people fantasize and daydream about their future success, the less well they do in terms of having actual success."
 
The key is to be realistic and recognize that you most likely will revert back to behavior and acts that you want to change. But remember that having an ice cream while on a mission to lose 10 pounds doesn't mean all hope is lost. Enjoy the ice cream and then continue with your diet.

How to Have a Successful Warranty/Job Site Visit, by Traci D'Antoni (D'Antoni Sales Group)


Every showroom person dreads the phone call saying "I'm having a problem with my shower/faucet/tub and I need you to come look at it." However, these after-sale visits can be a great way to show homeowners the value of your showroom and can also be a great learning tool for the showroom staff.
 
First, ask questions - LOTS of questions. How long has the product been installed, how long has the issue been occurring, have there been any unusual water or electrical issues at the house?
 
Second, request pictures from the job site - lots of pictures. What a homeowner sees as insignificant can make a huge difference in how the issue is addressed. Photos can also help identify the manufacturer of the product.
 
Third, contact the local rep. They may be aware of an on-going issue and how to solve it without a field visit. There are many plumbing issues that can be diagnosed and resolved while simply remaining at your desk.
 
If it is determined that a field visit is necessary, assemble any necessary parts you think you might need before going to the site. It is better to err on the side of having too many parts with you than not enough.
 
Set a time for a field visit. The showroom person, the rep, the plumber and the homeowner (or homeowner representative) should be there, if at all possible. The showroom person is the liaison between the rest of the job site attendees and should be there to represent their showroom while also learning from process.
 
After the visit, the showroom staff should always follow up with the homeowner to make sure they are satisfied with the resolution of the issue. Ideally, no one likes issues with a product, but how you deal with those issues that arise can go a long way in making your showroom the "go to" operation in your area.
 

Saturday, December 16, 2017

The Top Six Design Trends for 2018 on Pinterest Pins

Great news for DPHA members. Spa-inspired bathrooms ranked in the top six design trends for 2018 based on Pinterest pins. Searches for "spa-bathrooms" on Pinterest increased 269% in 2017. The other top five design trends expected for the coming year are:
  1. Wall art: pins increased by 637% in 2017.
  2. Patterned plants: specifying plants for new baths and kitchens help your customers relax and stay on trend. Pin searches in this category increased 533% in 2017.
  3. Mixed metals: stainless steel kitchens and bath fixtures, countertops and toilets are hot. Pins for mixed metals skyrocketed 423% in 2017.
  4. Terrazzo flooring: what goes around comes around. Very popular in the 1970s, terrazzo is making a comeback. Pin searches increased by 317% in 2017.
  5. Statement ceilings: don't ignore this space in your bath and kitchen designs. Whether you specify paint, wallpaper, or a texture, it's a space your customers care about. Pins increased 310% in 2017.
What's are the hot trends among your clientele? Share your thoughts with fellow DPHA members on our Facebook page or with our LinkedIn group.

Saturday, December 9, 2017

European Court Rules for Luxury

Good news from across the pond - the European Union's top court ruled on Tuesday, December 6 that luxury product manufacturers can prevent their brands from being sold on Amazon, EBAY or other web platforms in order to protect their brand and safeguard their exclusivity provided the company does not discriminate among retailers, reports The Wall Street Journal
 
The ruling involved a case brought by cosmetic manufacturer Coty against a German retailer that was selling Coty brands Calvin Klein, Marc Jacobs and Cloe on Amazon.  Coty claimed those online sales violated its contract provision that barred retailers from selling through third parties.
 
The court ruled that "The quality of luxury goods is not simply the result of their material characteristics, but also of the allure and prestigious image which bestows on them an aura of luxury.  That aura is an essential aspect of those goods in that it thus enables consumers to distinguish them from other similar goods."

The European Court decision is comparable to the Leegin Creative Leather Products decision that ruled a manufacturer can set minimum pricing policies for its products and can pull lines from companies that violate those policies.

Sunday, December 3, 2017

Yes Virginia, You Can Teach Old Dogs New Tricks

Erin Bittner (Pierce Hardware) hired a new team member who did not come from the decorative plumbing and hardware industry.  In order to get her up to speed as quickly as possible, Erin tasked his new team member with reading all of the DPHA Education Program manuals and taking the Recognition Program testing modules.  When he logged on to the DPHA web site to provide access to the Education Program however, Erin realized that not all of his team members were registered for access to the Education manual, nor were they receiving weekly electronic issues of Connections and other DPHA information the helps build sales skills while keeping ones fingers on the pulse of what is happening in the industry.  As Erin related, this was a big "Ah-Ha" moment for him and Pierce Hardware. 
 
"The second thing we realized was that only a few of our team members had participated in the actual DPHA Recognition Program,"  Erin said.  His team thought that they were participating in the Recognition Program because they had downloaded the Education manuals and taken the tests at the back of each chapter, but did not realize there was another step.  That's when Erin contacted DPHA Executive Director Jim Babbitt and asked him to explain to the Pierce Hardware team how the Recognition Program works and to walk them through the DPHA web site. 
 
In fact, many of the team members at Pierce Hardware are seasoned veterans with multiple years of experience, but following Jim's presentation, Eric challenged all of his team members to take the Recognition Program sample quiz and offered a cash incentive to the person who earned the highest score.  Amazingly (or maybe not so amazingly), the winner of the cash prize was Erin's newest employee, the team member who had just recently read all of the Education Program manuals.  (Erin scored second best with 61% of the right answers, by the way.)  The test results opened Erin's and his team members' eyes to the fact that you can't rest on your past laurels and that regardless of how much experience you may have, ongoing professional development and education is essential to perform at the top of your game.
 
If you would like more information on the Recognition Program and the testing modules, or simply want your staff members to have access to the Education manuals, weekly issues of Connections, etc., please contact Jim Babbitt at jbabbitt@dpha.net.
 

Saturday, December 2, 2017

Cool Product of the Week

A French startup AiZimov (www.aizimov.com) has developed a tool that will allow you to search the Internet to find out every mention of a person's name and their organization in order to enable users to craft more personal messages to prospects they don't know.  You already have access to company news releases, personal Twitter feeds and hobbies that might be listed on a LinkedIn profile.  Imagine how much more powerful a presentation or an email message might be if you discovered that your prospect is a wine lover and brought a favorite bottle of wine as a gift or sent it as a calling card.

Saturday, November 18, 2017

Learning from Mistakes

There's a fine line between risk taking and stupidity.  Many of the great CEOs in today's corporate world, including Amazon's Jeff Bezos, Netflix' Reed Hastings and Coke's James Qunicey believe in the power of failure. If you are not taking risks, you are not thinking creatively enough they argue. One of Bezos' great competencies (and there are many) is that he is quick to pull the plug on projects that don't appear to pan out. As Scott Galloway points out in his new book, The Four: The Hidden DNA of Amazon, Apple, Facebook and GoogleBezos divides Amazon's risk taking into two types: 1) Those you can't walk back from ("This is the future of the company."), and 2) Those you can ("This isn't working, we're out of here.). 

You can't innovate if you don't take risks. As Bill Taylor points out in a recent HBR blog, "If you're not prepared to fail, you're not prepared to learn." Given how fast the world is changing, constant learning is key to survival. Why do most companies stay the course, rely on the tried-and-true and are adverse to taking risks? The reason is their fear of failure. Most people won't try a new idea because if it doesn't work, they believe they will be considered failures. How many of your team members are reticent to try something new because it may not produce desired outcomes? Great writers often produce a lot of bad copy that enables them to write best sellers later on in their career.

Failure is a necessary condition for success. The keys are to cut the cord quickly if the risk will not pan out and to learn from your mistakes in order to make your organization better.

Avoiding the Trash Can

Emails are no different than any other type of interaction. You only get one chance to make a positive first impression and for emails that first impression usually is made in the subject line.  Avoid using all CAPS, more than one explanation point or words such as "warning", "you need to take action or else" or similar types of messages.  Use the subject line to inform recipients how they can benefit from opening your email.
 
Get to the point and your call-to-action in as few words as possible.
 
Trial-test emails to make sure they provide the appearance you want on all devices, including desktops, tablets and smart phones.
 
Make sure the message matches reality.  You may believe you are the best decorative plumbing and hardware showroom in the world, but that's difficult to prove and most likely will not be believed. However, if you were recently honored with industry awards, that's something to boast about.
 
Always use the recipient's first name, if you know it, when crafting your messages.
 
Don't ask for the sale in an email.  Next time you go to Starbucks, observe those people in line.  Most likely you will find that many of them are reading their emails.  Do you actually believe your request to have a contract signed would be well received by any of those folks?  Use email to inform, educate and build relationships. Above all, email campaigns should always look through the lens of the customer and be 100% about the customers and their needs.
 
Never insult the competition.  Instead describe why it is in the client's best interest to rely on your services as opposed to the showroom down the street.
 
Emails are comparable to commercials on television and radio. They serve to interrupt.  A better way to engage is to ask for permission to continue a conversation by providing information that is useful to the prospect.
 
What are some of your best email campaign tips? Please share your thoughts on the
DPHA Facebook page or with our LinkedIn group.
 

Sunday, November 12, 2017

More Lessons From Doug Stephens

DPHA 2017 Conference keynote speaker Doug Stephens (The Retail Profit) wowed members in Phoenix.  Stephens told DPHA members to expect dramatic and significant changes in the retail landscape, explaining that online sales are compounding at a global rate between 12 and 35 percent, and that within 15 years he expects ecommerce sales will exceed purchases in brick-and-mortar stores.  Virtual reality and the Internet of almost everything will make common everyday purchases automatically.  Stephens explained, "The three quarters empty bag of dog food in your home will suddenly have the capability to re-order itself.  Using the third-to-last diaper in the carton will trigger the order of 40 new diapers delivered to your door.  The light bulb that's going to burn out will order its own replacement, taking into account shipping times from your online provider.  Sensors in your running shoes will measure tread depth and trigger a reorder when necessary.  By 2025, 30% of everything in the center aisle of a grocery store will be purchased automatically."
 
Stephens told DPHA members that physical retail will no longer be a channel for buying because the vast majority of daily and weekly needs will arrive automatically without purchaser involvement.  Physical stores will have to reinvent themselves and become places where consumers go to learn, be inspired and see and try new things.  These new "stores" will have to deliver more compelling physical and emotional shopping experiences, Stephens said. 
 
Apple founder Steve Jobs explained, "design is a funny word.  Some people think design means how something looks.  But, of course, if you dig deeper, it's really how it works."  Apple embodies the change in retail that Stephens believes is the key to continued brick-and-mortar success.  Apple recreated the retail experience.  Its stores are open and bright and enable customers to freely interact with products, receive expert advice and have problems solved.  There are no cashiers at Apple stores, a trend that will accelerate across all channels and another sign of the paradigm shift in brick-and-mortar retail operations.
 
Decorative plumbing and hardware showrooms have a leg up on most other retailers because DPH showrooms have the ability to engage customers on more than one sensory level.  Stephens advised DPHA members to change their focus from store to story and to stop thinking about products and start thinking about productions.  Shifting the focus of a brick-and-mortar store from selling products to selling experiences that involve products will enable the showroom of the future to differentiate itself and become the destination of choice for its market.
 

Saturday, November 11, 2017

Can We Take Advantage of Burberry's Strategy?

Burberry CEO Marco Gobbetti announced this week that his company is doubling down on its luxury products and raising prices of its luxury products across numerous categories.  Gobbetti believes the premium sector is tantamount to hell.  He said, "Today's customers are polarizing between luxury and mass market.  The mid-market used to dominate. It no longer has a place with the consumer, and this polarization will be reflected in our pricing."
 
Gobbetti is moving Burberry away from mid-market products and pricing and focusing on producing more higher-priced leather bags and accessories and personalized shopping that gives customers immediate access to products they debut at fashion shows. 
 
Burberry was a digital pioneer among luxury manufacturers, being the first to use Facebook and Snapchat to promote the brand, and the first to live stream a runway show for its customers.  Being first in digital marketing for a luxury brand paid dividends for Burberry, which saw its revenue jump 27% in 2011.  Since then growth has slowed and currently it is not increasing at the same rate as its competitors.  That's why the company is rolling out a new strategy to focus on higher-priced, higher margin products.  Burberry plans to remain active digitally but focus more on improving the customer experience instead of "flash."  This will be accomplished by creating a personalized product feed on the Burberry e-commerce platform that is going to be launched later this year and a universal mobile checkout system ala Amazon Go. 
 
Burberry plans to use its digital channels to build itself as a luxury brand and using social media to appeal to entry-level customers who may look to trade up.  Burberry is betting on its ability to produce more upscale products more frequently. 
 
Is there a lesson for decorative plumbing and hardware showrooms?  Are your customers moving away from mid-market products to either trade up or trade down?  Would it be a good strategic move to position your brand as a true luxury player?  Please share your thoughts on the DPHA Facebook page or with our LinkedIn group.
 

Friday, November 3, 2017

Teaching Your Team to Upsell


Most showroom sales professionals sell in the same manner as they buy. If your sales professional is a value buyer, he or she is likely to be a value seller. Conversely, if your team member trades up for the purchases that are most important, he or she is likely to recommend top-of-the-line products to customers.
 
Most owners want their team to upsell, because higher-priced merchandise typically delivers higher margins. Sales professionals may not be as enthusiastic. They often gravitate to what's easiest to sell or the lines they know are most reliable without regard to margin and profitability. 
 
Your team may not upsell because they don't up-buy, or so they believe. In a recent blog, Retail Doctor Bob Phelps explains that almost everyone up-buys. McDonald's understood the value of upselling and was able to scale its business by asking one simple question "Would you like fries with that?", which has not only contributed to the growth of McDonald's across the world, but also has become an iconic catchphrase on its own. 
 
The key is to explain to your team that they up-buy every day. How many members of your team have an iPhone? Those who do may not realize that they spent $700 to $800 when they could have purchased a Samsung or other model with comparable benefits for $100. Does your team stop at Starbucks on the way to the showroom? That's an up-buy too. A stop at 7-11 or Dunkin Donuts would be half the cost. The sound you hear is opportunity knocking.
 
The difference between your employees purchasing a phone at 700 to 800 percent more than a competitor or a cup of coffee at two to three times the cost of somewhere else without a corresponding increase in taste, value or convenience is because using an iPhone has cache and going to Starbucks makes them feel good. When customers come to your showroom instead of visiting a lower-priced competitor or shopping online, they do so in order to feel good. How would your team respond to the question, "Don't our customers deserve to have an iPhone experience at our showroom?" You can deliver that experience by providing the best quality products that fit their budgets. Michael Silverstein, in his book Trading Up: The New American Luxury, found that consumers will spend 300 percent more for products they are emotionally connected to.
 
Taking note of the cars customers drive to the showroom, the clothing and jewelry they wear, the handbag that they carry, where they vacation, their hobbies, etc., will provide a window into the customer's willingness to up-buy. If your customers up-buy on major purchases, why would they want to settle for less than the best on the two most important rooms in their home?  What prevents your team from asking, "Would you like steam with your new shower?"

A Solution Driven Approach, by Phil Hotarek from Lutz Bath & Kitchen (an Education Committee member)


Establishing a niche through problem solving has become an effective method in the consumer market.  Some of these recently developed solutions were for small problems I did not even realize existed until they were revealed to me, to which I discovered the added comfort and convenience in my life with their presence.  We are seeing this approach in various consumer products such as: voice activated electronics, food prep services, vacuum insulated bottles, direct to order fabrics, etc., and the list goes on.  While industries may be different, commonalities are evident in that consumers are drawn to products and services that solve problems.  Manufacturers can effectively use this strategy by developing products with unique solutions, and showroom professionals can make a deeper connection with a client by identifying a problem and selecting the right product.  
 
Functionality
From bathrooms with small footprints to families with complicated schedules, the way products function has peaked consumer interest.  Efficient storage solutions increase space efficiency and can even save time with better organization.  Some products demonstrate their functionality features through energy conservation.  The bottom line is - better function is a key indicator of superior design with the end user in mind.  
 
Concealed and Clean
A minimal look is in and the more we can conceal the better.  Products that solve clutter, are easy to clean, and show less hardware appeal to the modern day consumer.  You may also hear designers describe something as having "clean lines," meaning that the design is smooth and has little disturbance in blending along the surface.  The attention to detail will peak interest while highlighting uniqueness in the product.  
 
Low Maintenance and Longevity
Where a product is made carries more weight in today's market.  Consumers are willing to pay more for a product that has a storied history of quality craftsmanship.  It gives peace of mind knowing that maintenance is minimized and it will be one less thing to worry about in the foreseeable future.  This feature is the key to progressing the experience from a purchase to an investment.  
 
High Tech
Advancements in technology continue to progress at a high pace and have become more relevant in plumbing.  Technology is integrated in added convenience features as well as problem solving features.  UV cleaning lights, electrical outlets with USB conveniently placed in storage ports, heated mirrors, mirrors with a TV, bluetooth and WiFi capabilities, and so on.  Even when some technology seems ridiculous at first, the comfort added to our lives almost makes these features a necessity at the end of the day.  Technology yields endless possibilities in creativity to the manufacturer and can solidify a showroom professional's reputation for always being ahead of the curve.  
 
Closing thoughts
Problem solving can come in various forms as long as the mindset is consistent.  When product design is solution driven, the benefits come full circle for manufacturers, showroom professionals and consumers.  The pressures of staying ahead of the crowd can be a burden to those who resist change and a blessing to those who are passionate.  Showroom professionals can effectively use this strategy to establish a connection with potential clients by actively listening to what is important to them.  And manufacturers can do the same by staying connected to the demands of the market while anticipating what may be important in the future. 

Friday, October 27, 2017

What Would It Take to Sell Projects?


There's an interesting and opportunistic shift taking place in the way large and small businesses go to market. DPHA members may view their role as creating new baths and kitchens for their clients. Their tasks may include designing the space, specifying and selling products, and performing quality control. Showrooms sell both products and services, and retail gurus are advising showrooms and other brick-and-mortar retailers to sell experiences and solve the needs and aspirations of their customers. When a showroom creates a new space in the customer's home, they can focus on experiences by relating how warm and fuzzy their clients will feel with the daily ability to wash away the stresses of the day in their in-home spa.
 
Most good companies are focusing on experiences. Then there are others that are adding value by selling projects. What's the difference between selling a project and an experience? If you are Nike, the product it might sell is a pair of running shoes. An experience they may deliver is a membership to a running club. A solution might mean providing guidance to help the customer reach a weight goal. If Nike took the project-based approach, it would concentrate on a goal that is focused and tangible such as helping the buyer to run a marathon, and would include running gear, training regiments, diet plan, a coach and a monitoring system that would prepare the customer to achieve that goal.
 
Companies ranging from Microsoft to Philips are now taking project-based approaches to increase revenue streams while becoming more important and valuable to their customers. Airbnb started food delivery and plans to offer small tour projects. How would a project approach work in a kitchen and bath showroom? Showrooms would focus on how the kitchen is used and the complementary products that are commonly found in kitchens, such as cookware, cutlery, storage containers, organizational guidance, meal plans, dietary information, plates, care and maintenance plans, cooking classes, etc. Does that mean you would have all of those products on display? Not necessarily, but it would mean that you would curate all of the items for a new kitchen not just cabinets, appliances, tile, sinks, faucets and countertops. For repeat builder clients, taking a project approach may mean setting up a design center in their office or at the project, staging kitchens and baths on their behalves, producing sales literature and website and social media, conducting cooking classes and becoming part of the sales team. 

Dealing With Clients Who Are Right 100 Percent of the Time


Do you know someone who believes they are right 100% of the time? These people are difficult to deal with, especially if they are your clients. They believe that because they may have been successful in life, or achieved a certain financial or societal status, that they have the right to tell others what to do and how to do anything and everything. How do you deal with a know-it-all? According to Priscilla Claman, president of Career Strategies, the first step is to pick your battles wisely. If the advice, guidance, directive or request is not going to make a difference in the outcome of the project or compromise the integrity of your design, let it go. On the other hand, if the client wants you to do something that will jeopardize quality, look and/or feel, Claman suggests that you respond to the suggestion with a have-you-ever question. For example, "Have you ever seen that appliance installed that way in a new kitchen or bath?" Asking what-if questions has the same effect. For example, "What if we trial tested the idea to make sure it will achieve your desired result?"
 
Another option is to acknowledge the idea but take time to confirm the potential risks and rewards. If the client wants a particular product that you never heard of, you could say, "Let me research the company, read reviews and get references from other designers that have worked with the company to make sure that the quality and customer service are what you deserve."
 
Also, don't be afraid to point out the risks of doing what the client wants. For example, you might say, "That's a really good idea, but I would like to confirm that the plan will meet building code requirements before we start demolition." Regardless of who the client is and their personality, your role is to make them feel great about their decision to partner with your showroom. To make those who believe they are right 100% of the time feel great about doing business with you, always remember to acknowledge their role in the success of the project and give them credit for having great ideas and being a great partner.

Saturday, October 21, 2017

Making Emails More Effective

Did you know that the average person receives 121 emails a day? Do you know anyone who wants to receive more than 121 emails daily? Probably not. How do you stand out? How do you make sure your emails are read? 
 
Look at email through a different lens. What message do you convey when you end your email, "sent from my mobile phone, please overlook typos"? Simply because you use a mobile device to communicate, does that give you a pass for shoddy or sloppy communication?
 
The following can help improve your email effectiveness:
  • Brevity is king. Determine what you want the reader to know and what is the call to action. Keep your emails simple, direct and easy to understand. Keep in mind though, that there is a fine line between brevity and rudeness.  One line or single word responses may also send the wrong message. If the responses you receive often ask for clarification, that usually reflects a communication problem that can be solved by providing more copy and content.
  • Determine who needs to be copied. Pare down your list to include only those who need to be aware of the message.
  • Lead with the most important message. Ask yourself if you have answered the following questions: Does the recipient know what I am asking for, and why should the recipient care?
  • Does every email you receive require you to respond immediately or at all? The same can most likely be said for the emails that you send.
  • Emails do not replace human interaction because they can't convey voice tone, facial expressions and physical gestures. Sending emails may be a cop out for not initiating a human interaction.
  • Don't ignore pleasantries. Please, thank you, glad to hear from you, etc., help to humanize emails.
  • Use the subject line as the call to action, such as "Need your help! Please select your vanity by Thursday if we are to maintain our construction schedule".
  • In the first line of the email body, communicate what you want the recipient to do even if it repeats what's in the subject line.
  • Highlight either in bold or italic type the names of those who have been assigned a task and the deadline for completion.
  • Remember that email forms and reflects your business and personal brand. Take the same care and time that you would to produce a web page, ad or display that you use to make positive impressions.

Friday, October 20, 2017

The Changing Retail Paradigm


We all know that online purchasing is changing retail forever. Amazon captures 60 cents out of every online purchasing dollar. As Doug Stephens told DPHA members in Phoenix last week, "Amazon is the quickest way from wanting to getting." Stephens also pointed out that no one takes a selfie of themselves ordering on Amazon. It's not fun. There's nothing exciting about it. In a blog post, Tom Goodwin put it best, "No person in modern times has ever been so bored that they went window shopping at amazon.com."
 
Online purchasing appeals to people who know exactly what they want. Additionally, there is a new breed of online etailers that limit options to make it easier for customers to determine what they want. Mattress specialist Caspar sells only one model. Stephens also pointed out that Amazon and others are making it easier to buy by not buying.  Alexa may note that a consumer has not ordered dishwasher liquid for a while and will ask, "would you like to reorder a bottle of Dawn or garbage bags" or other household necessities without being asked. There are also subscription services such as Dollar Shave Club that send products automatically.
 
One of the major points that Doug Stephens made in his keynote address at the conference is that eCommerce is all about acquiring. On the other hand, brick-and-mortar retail is about shopping. Brick-and-mortar success requires creating experiences that strike emotional chords with consumers. An example Stephens pointed to was Nordstrom's new concept store, Nordstrom Local. It is a clothing store without clothes. Instead of filling 140,000 square feet with everything from men's suits to perfume, Nordstrom Local comprises 3,000 square feet of space, offers wine, beer and espresso, and is staffed by stylists who help customers craft wardrobes that can be picked up at the traditional Nordstrom store. Story is another concept store in New York City that offers pop-up opportunities for established brands ranging from American Express to Clairol. The displays are interactive and the mirrors are smart, providing not only a reflection but the latest news, updates on product offerings or other information available from a blue-tooth connection.
 
The changing paradigm brings experiences to shoppers. That's why Lululemon offers yoga classes and why you can jog on an indoor track at a Nike Store. What are the lessons for DPHA showrooms? Have interactive displays and determine how you can bring the experience of having a new bath "alive". 

Saturday, September 30, 2017

Why Change Is So Difficult


The reason why change is so difficult is because we want to believe what we want to believe.  Facts be damned.  That's why many people are so intractable.  Regardless of evidence, almost every human will hold to his or her convictions.  That's why there is a resounding element of truth to Donald Trump's pre-presidency claim that he could walk down Fifth Avenue in Manhattan and shoot someone and his supporters will still support him.  In an interesting and eye-opening blog written by Oran Varol on Heleo, Varol writes that trying to persuade someone to change their mind by providing irrefutable evidence won't work because the brain does not follow facts. John Adams knew this to be true.  He said, "Facts are stubborn things, but our minds are even more stubborn." 
 
"We tend to undervalue evidence that contradicts our beliefs and we overvalue evidence that confirms them.  We filter out inconvenient truths and arguments on the opposing side. As a result, our opinions solidify, and it becomes increasingly harder to disrupt established patterns of thinking," Varol writes.
 
Alternative facts are real to those who believe them because they confirm pre-existing beliefs.  That's why confirmation bias is real.  We want to belief what we want to believe.  And if you need evidence, Google a question that you want an answer to.  Chances are you will click until you find a response that you want to find.  Confirmation bias helps to explain why couples will argue when one party asks the other their opinion of anything.  If the response is not what the asking party wants to hear, an argument is likely to follow.
 
Given the significant evidence that you can't use facts to change someone's mind, is there a better alternative?  The answer is "yes", according to Varol.  He claims that you have to give your brain an out by convincing yourself that your previously held conviction was right given the evidence that you had at the time.  If the information you have access to changes, then so should your mind.
 
However, too often when someone tries to change someone else, the approach taken is that I am right and you are wrong.  Here's why I am right.  When someone is being challenged, the immediate response almost always is to challenge back.
 
There really is a better and more persuasive way.  If you insult or dismiss someone else's opinions and beliefs ("a basket of deplorables"), he or she is likely to dig in because if they don't, they feel they are admitting they are stupid and that's not a claim most people are willing or able to make.  Varol explains that if someone disagrees with you it's not necessarily that they are wrong and you are right.  It's simply because the other party believes in something that you don't.
 
The great challenge is that beliefs are tied to identity.  Changing someone's mind requires changing their identity and that's almost impossible.  Varol advises to place a healthy separation between yourself and the product of yourself.  For example, if you try to convince Detroit autoworkers that global warming is real and therefore they need to produce nonfossile fuel cars to protect penguins in Antarctica, the chance of getting buy-in is slim to none. However, if you frame the argument that renewal energy solutions will provide job security for their grandchildren, then you may convince someone that your belief is in their best interest. 
 
Another reason why changing someone's mind is so difficult is that "birds of a feather flock together".  We friend people on Facebook who have the same beliefs that we do.  We live in neighborhoods where you are more similar to others next door than you are different.  Varol advises to make friends with people who will challenge you and disagree.  Having contrarians to challenge you can be especially helpful running a business.  Admittedly though, it's not easy and certainly not comfortable.  We have been preaching looking through someone else's lens to better understand what they really want.  The same thing applies to challenging your status quo. 
 
Varol's advice is to strongly believe in your path, but be willing to change if the facts show a better way.  Ask yourself what evidence would you need to receive in order to change one of your most strongly held beliefs. If the answer is nothing can change your mind, then responding to change will be next to impossible.
 

Friday, September 22, 2017

Pick A Selling Style that Is Best Suited for You and Your Team


There are three different major selling styles:  Describing, storytelling and listening. 
 
Describing is the default option that most sales professionals use and, in case you are not aware of the fact, everyone in the showroom is involved in the sales process.  Even though describing is most common, it typically is the least effective technique to build trust and establish credibility.  It involves relating features, benefits and cost.
 
A more effective sales approach is telling stories about the benefits and feelings that your prior customers enjoyed by relying on your showroom to create their new bath or kitchen.  Testimonials told by your clients are an extremely powerful tool to establish trust and credibility.  Also, relate before and after case histories that illustrate how you solved a particularly taxing problem or overcame obstacles that surprised and delighted your clients.  "Imagine" is a powerful word that is a great way to begin a story.  Ask your clients to imagine the feeling they might get after a particularly stressful day in the office when they get a few moments to wash away their concerns in their brand new bathroom. The reason why "imagine" is such a powerful way to start a story is because it enables customers to visualize their future.
 
Listening is one of the least understood and underused sales techniques.  What do you believe is more effective, trying to sell someone something or creating something that people want?  The only way to create something that a customer wants is to understand their needs, desires, dreams, challenges, conflicts, doubts and budgets.  That information is obtained by asking the right questions and effectively and actively listening to their responses.

While features and benefits describe available options, the best sales approaches make emotional connections and they can be obtained through effective story telling and active listening.

Monday, September 18, 2017

How to Better Communicate Brand Value


Harley Davidson's brand is one of the most valued and recognized in the world.  Why else would many of its customers tattoo the company's logo on their bodies?  The reasons they do so has little or nothing to do with horsepower, handle bar configuration or the time it takes to go from 0 to 60 miles an hour. Harley Davidson's brand appeal was brilliantly summarized by Sam Hill and Glenn Rifkin in their book Radical Marketing.  They wrote that Harley Davidson represents "A lifestyle, a work of art and an emotional connection to a widespread and unique community."  If you ever speak to a Harley owner and ask them why they chose the brand, most likely their response will include the feeling they get when they ride their bike.
 
Feelings are more important than the number of finishes or handle configurations.  Value demonstrated is more powerful than value explained, because demonstrating how a new bath or kitchen will make your customer feel reflects the customer's dreams, solves their problems and makes them feel like they have come to the right place.  There's no doubt that customers need to know how their new power shower will function and the special features and benefits that aroma, chroma, steam and music therapies provide.  More importantly however, is how the improved functionality will change their lives for the better. 
 
Communicate the value you can bring to a project by relating the number of baths that you have designed and the profile of your typical customer.  Almost nobody buys even a pair of socks before checking on Google to see which pair may be best suited for their individual needs.  What is preventing you from writing product reviews on your web site for prospects and customers to read and evaluate?  Similarly, your web site and social media pages should be filled with satisfied customer testimonials.  Do you ask your customers to send you pictures and videos of their new kitchens and baths that you designed for them?  Do you take before and after pictures and videos of your projects and then post them on your website? If the answer is no, why not?  Showing is certaiunly better than telling.  Publish white papers, buying guides and budget calculators on your web site that showcase your skills and expertise. Did you know that DPHA has numerous buying guides for different product categories that you can add to your web site? They're free if you are a member.  Take the advice of Marcus Sheridan when he spoke at the 2013 DPHA Annual Conference and answer the questions your customers ask most often, starting with how much does a new bath cost.  Celebrate your relationships with different customer types, such as builders, individual homeowners, multi-family owners and managers and others.
 

Saturday, September 9, 2017

Implementing the Luxury Strategy in Decorative Plumbing by Phil Hotarek (Lutz Bath & Kitchen), an Education Committee Member


With the ever-changing advances in technology and globalization, implementation of marketing strategies has become increasingly effective in relation to growth.  This can be applied to both the manufacturer and the showroom. Your marketing strategy begins with branding and whether it is a product or a service, the same principles apply. 
 
Manufacturers are responsible for the product and showrooms provide the service.  Ideally in a perfect world, the branding of a product should be parallel with the quality of service that the showroom delivers.  Internet exposure, price competition and volume have been wedges in what should be a perfectly balanced relationship.  For example, a luxury brand being sold in a showroom primarily known for discounts and low prices sacrifices product integrity.  There are three strategies identified in the book, The Luxury Strategy - luxury, premium, and fashion.  
  • Luxury - Highest value and pricing power.  Country of origin, manufacturer process, exclusivity and limited availability are all factors.  A luxury product and service appeal to prestigious clientele that are enthusiastic about the product and prefer to be educated rather than informed.
  • Premium - Quality-Price ratio.  Pay more for higher quality product and service. While this may seem similar to a luxury strategy, the premium outlook remains comparative to the consumer.
  • Fashion - The hot and trendy approach.  Timelessness is a non-factor, because this branding approach is all about marketing the season's hottest trends.  
Taking all these strategies into consideration, it is interesting to see what companies have done in other industries as well as our own.  Luxury brand names such as Mercedes Benz and Tesla have expanded by developing premium models that still deliver a high quality product at a more modest price.  We also see more standard brand names develop luxury lines, even though seemingly more difficult to penetrate the luxury market with a standard brand as a parent company.  Decorative plumbing has seen the likes of these strategies through several companies recently.
 
Industry Practices
As an industry, showrooms and manufacturers must collectively aim to remain consistent through parallel branding strategies.  Equal responsibility is shared - by showrooms who intentionally select lines that are parallel with their identity, and by manufacturers who should do the same by upholding product integrity through parallel level of service practiced by the showroom. Essentially, both the showroom and manufacturer should want to collectively reach the same type of consumer.  
 
Anti-Laws
The Luxury Strategy discusses what they identify as "anti laws," essentially counter-intuitive to what might be used in traditional marketing techniques.  Traditional practices such as: advertisements, flyers and promos are effective with premium and fashion strategies, but luxury branding requires a different approach.  Here are some anti-laws that caught my attention in relation to our beloved DPH industry.
 
Forget about positioning, luxury is not comparative 
What makes your product or service unique?  Uniqueness is the essence of your identity and should be the one element that makes your brand unrivaled from your competition.  In decorative plumbing, that could have a myriad of possibilities.  I know showrooms that have adopted some very creative service practices from on-site consultations and deliveries to designer presentations.  The takeaway is to discover what is unique about your brand and deliver it consistently.
 
Keep non-enthusiasts out 
Believe it or not, there are consumers who share our passion for plumbing. These are customers who approach their bath and kitchen design as an investment, not a purchase.  In return, we must educate them rather than inform.  Bargain hunters may showroom, visiting your boutique for information then troll the Internet for the lowest price.  No problem - in a free market they have the liberty to do so.  Showrooms can protect themselves though by focusing on education to attract high-end consumers seeking this level of service.  Do not cater your product or business to those not enthusiastic about plumbing; instead develop a brand that serves those who are.
 
The role of advertising is not to sell
If you do decide to create an advertising campaign, do not send the message of "selling".  Advertising in the luxury market should be more about increasing brand awareness.  Your uniqueness should be the consistent message and with the right approach, the customer will yearn for what you have to offer.
 
Luxury sets the price, price does not set luxury
Remember, bath and kitchen is an investment.  You cannot put a price on comfort in these integral parts of a home.  Quality of life is greatly increased when the bath and kitchen feels right, and that is what luxury is about ... how a person feels.  In decorative plumbing, we are providing the product and the design for a person's most intimate and social space in their home.  
 
Do not sell openly on the internet 
This topic is as controversial as it is daunting.  As a plumber, I have witnessed first hand the debilitating effect Internet sales have had on plumbing. Misinformation, missing parts, poor interpretation of specifications, lack of plumbing knowledge...the list goes on.  I have personally installed plumbing products purchased online knowing full well I will be back soon to repair or replace them.  High-end consumers know that luxury products cannot be purchased online.  Even Amazon has failed, and will continue to do so, to penetrate the luxury market.  The reason is because the high-end consumer prefers to pay a premium for confidence in their investment.  Manufacturers that allow their products to be sold online have experienced the hardships of rebuilding a luxury brand.  On the showroom front, we briefly dealt with the difficulty of having to compete but have since risen above the challenge.  To uphold product integrity, luxury brands do not sell openly on the Internet even beyond decorative plumbing.