Why Customers Walk Away

There's been lots of press recently explaining the cause for brick-and-mortar store closings and downsizings. There are several reasons for the shuttering of Toys R Us and the problems plaguing Sears and others, but the most compelling one is customer experience.  Who wants to make a special trip for a purchase only to find that the sales professionals know little to nothing about the products, fail to engage the customer to determine his or her needs, or works in a space that does not appear to have been updated in years? 

When someone comes to your showroom, it's for a reason, otherwise they would have purchased the products that you have on display from the comfort of their couches.  Brainstorm with your team to define the reasons why customers will come to your showroom.  It may be to buy something.  They may be looking for information or hoping to discover something new.  Perhaps they have been frustrated while researching online or elsewhere because no one appeared to remotely care about them.  What are you doing to demonstrate to your customers that you care more?  Please share your experiences on the DPHA Facebook page or with our LinkedIn Group.

How to Improve Team Performance

It's rare for a team member to wake up in the morning and decide that "today when I show up in the showroom I am going to be mediocre".  Yet if you asked a number of showroom managers how many of their team members are just average, the answer most likely would be more than one.  Why the disconnect?  It may be caused by a lack of alignment.  There have been volumes written about the neediness of the Millennial generation, but look at what Millennials actually need.  They need a sense of purpose.  They need to be challenged.  They need opportunities to grow personally and professionally.  They need to believe that what they do makes a difference. Millennials get a bad wrap.  In truth, meeting their needs are keys to developing a high-performing team.

 

Start by agreeing on the difference that your showroom makes in the lives of your customers.  Your team may believe that they sell faucets, showers or toilets, but what they really do is to improve the lives of their customers.  They sell happiness.  They reduce stress.   They improve the value of their customers' homes.  To improve your team's performance, discuss with them the impact your showroom has on the world around them. And by the way, don't think this is a waste of time - after all, Millennials now are the largest generation in the workforce.

 

A second key is to be an inspirational resource.  One of the traits of superior leaders is the ability to challenge team members to leave their comfort zones and stretch their skill sets.  The benefits of inspiring your team are higher productivity, commitment, profitability and lower turnover. 

 

A third key is to create an environment and workplace that makes your team become advocates for your business.  How many team members would recommend your showroom as a possible employer to family and friends?  In today's world where unemployment is expected to fall below 4%, the ability to attract and retain talent is paramount.  Creating an environment where employees are encouraged to become corporate advocates will not only improve retention, it will also help attract best-in-class talent.

Answering the Most Asked Question in the Showroom

"How much is my new bath going to cost?" is probably the most asked question in your showroom. Most likely your response is that it depends on a number of factors followed by an inquiry about the person's budget. This approach begs the age-old question of who should talk about budgets first, the showroom or the client? Traditional sales consultants would argue the person who mentions money first loses. Recent academic research counters by claiming that if you mention price first, you take control of a negotiation and set the price range with an anchor.

 

The Black Swan Group however disagrees with those academic claims, arguing that the first to mention price is at a disadvantage because too high of a range for an anchor price may scare the prospect off and without knowing what a potential budget might be, the customer may not be ready to commit to the project or your showroom. Additionally, Michael Silverstein told DPHA members at one of our past annual conference that showroom customers who become emotionally connected to a product or service will spend up to three times what they initially budgeted.

 

For showrooms, an effective tactic typically is to state, "The price of a new bath depends on a number of factors ranging from the scope of the renovation to the quality, originality and customization of products that will meet your desired goals. Before we talk price, let's talk about what you want to achieve with your renovation and the look and feel that will help meet, if not exceed, your goals." Reinforce to the prospect that you can work with almost every budget imaginable. After all, it's not in your client's best interest to have unrealistic or unachievable expectations. One of the very important roles a professional showroom salesperson offers is the ability to minimize surprises.

 

Another consideration is that your prospects already have a basic understanding of the cost of a bath renovation because they have spent months researching things prior to coming to the showroom. If the prospect starts using industry jargon, thermostatic versus pressure balanced or ceramic disks, PVC finishes, etc., you know that they have done their research.

 

If the prospect pushes for a price before a scope is determined and quality levels agreed to explain that a new bath is comparable to a new car. You can spend $20,000 or more than $100,000 depending on the make, model and options. Everyone one of your customers, builder clients, trade professionals and others whom you sell to most likely can obtain the products that you provide at a better price. However, the lowest price is almost never the lowest cost - it's not about product price. Focus on the value-added services that you provide that more than compensate for for the potential to obtain products at a lower cost.

What Colors Trend for the Fall of 2018?

Following New York Fashion Week, the Pantone Color Institute analyzed emerging trends and developed a list of the top 10 colors it expects to trend in the fall of 2018. According to Color Institute Executive Director, Leatrice Eiseman, "Designers and consumers alike continue to transition away from cyclical trends, and instead focus on self-expressive colors that evade antiquated seasonal structure. We are seeing very notable nontraditional choices." This trend was evident at both the last ISH Fair in Frankfort, Germany, the largest exhibition of plumbing products in the world, and at the 2018 Kitchen and Bath Industry Show where splashes of bright bold colors were featured in products ranging from kitchen faucets to stone slabs.

Pantone's top 10 colors for the fall of 2018 are:

1. Russet Orange (Pantone 15-1255) is an orange with slightly more red than yellow. Pantone links it to nature and foliage explaining "This forest floor orange speaks to earthen warmth."
2. Crocus Petal (Pantone 15-3520) feels like the sweet, barely subdued understudy to Ultraviolet. "A cultivated and refined hue adding light and air-spring like feeling.
3. Valiant Poppy (Pantone 18-1549) is a "brave and outgoing red shade effusive it is allure."
4. Ultra Violet (Pantone's color of the year 18-3838) characterized as a vibrant spiritual purple grounded by deep blue undertones.
5. Ceylon Yellow (Pantone 15-0850) is a "savory and spicy yellow."
6. Martini Olive (Pantone 18-0625) is a "smooth, sophisticated urbane green."
7. Nebulas Blue (Pantone 18-4048) reminds one of "twilight and a thoughtful starry-eyed blue."
8. Limelight (Pantone 12-0740) is a "pungent yellow-green."
9. Quetzal Green (Pantone 18-5025), a "deep elegant blue-green hue suggestive of rich plumage.
10. Red Pear (Pantone 19-1536) is a "deliciously deep red, whose luscious depth entices." Red Pear resembles a soft burgundy with cool undertones.

What trends are you noticing in your showroom?  Please share your experiences on the DPHA Facebook page or with our LinkedIn Group.

Scary Thought: Amazon Gets Brick-and-Mortar Retail, by Tom Cohn, DPHA Executive Vice President

Last week, I visited the first Amazon brick-and-mortar bookstore in the Washington, DC area, a two floor structure in the heart of Georgetown.  As much as I wanted to dislike the store, it was almost impossible to do so.   You could not help but be impressed by the design, merchandising and vibe that existed.  There are a lot of books on display, but not too many, and those that are featured appear to be carefully curated similar to the offerings and approaches used by Amazon online.  Because I mainly read nonfiction, marketing, history and social science books, I was impressed by the titles on display.  This is where Amazon's book store shines. It was obvious that Amazon's merchandising of its brick-and-mortar book store is based on the multitude of data that it has from its ecommerce and data service operations.  

Equally impressive to the merchandising was its signage.  Vertically oriented signs adorning the bookshelves told customers If you like pointing in one direction, you'll love pointing in the other.  It was a stroke of genius.  It's a play on the online version of people who bought this also purchased the following items.  

The layout is airy and spacious.   There's a coffee café on the lower level and inviting spaces for customers to simply hang out and read.  There are also not so subtle signs for upselling with large video screens encouraging visitors to purchase an Echo, Kindle and other Amazon products.  When I took out my phone to take pictures of the store, a sales associate asked if I was checking pricing.  When he asked if I knew how much a book cost, I said "yes" pointing to the retail price on the inside flap of the cover.  The sales associate then asked if I was an Amazon Prime member.  I responded affirmatively and at this point the sales associate introduced me to the Amazon Shop app on his phone.  Using the app to click on an image of the cover of the book, he was presented with the Prime Member price that was 43% off the suggested retail price.  

Checking out was a breeze.  Scan the bar code, swipe a credit card that is tied to your Prime account and just walk out the door.  

Why is Amazon getting into the brick-and-mortar book store business when it virtually owns online book selling, controlling a reported 64% of all online book sales?  The reason is explained by Scott Galloway in his book The Four: The Hidden DNA of Amazon, Apple, Facebook and Google.  "E-commerce doesn't work, isn't economically viable and no pure e-commerce firm will survive the long term," Galloway writes.  He explains, "the cost of customer acquisition continues to rise as consumers' loyalty to brands erodes...In 2004, 47 percent of affluent customers could name a favorite retail brand.  Six years later that number dropped to 28 percent.  That makes pure e-commerce play increasingly dangerous. Nobody wants to be at the mercy of Google and disloyal customers."  Given Galloway's observation, does it surprise you that Amazon's online retail operations do not generate a profit?

Lessons for decorative plumbing and hardware showrooms.  Walk your showroom space.  Do your displays and merchandise mix invite customer interaction, inspire dreams or create a meaningful or memorable experience?  Evaluate your signage.  What messages are you sending?  What could be your equivalent of 'if you like this, you'll love that'?  Is your merchandise carefully curated?  When was the last time you performed a line review to determine which products sell the most and generate the most margin? 

 

Is It Time to Become Uncomfortable?

"In the U.S., they're cutting corners and cheating, and driving everything to the lowest common denominator - in the brands themselves and in the channels of distribution: department stores, shopping centers. And it's reached the point of no return, which means that retail in the U.S. will have to reinvent itself," claims Value Retail's CEO Scott Malkin in a recent Glossy interview.  Value Retail owns  and operates 11 luxury outlet centers in Europe and China. 

 

Malkin explained that it is impossible to have a culture where no one ever pays full price and still make money in retail.  Luxury brands such as Gucci and Givenchy no longer offer sale products at their full-price brick-and-mortar stores.  Malkin asserts that you can't be a luxury brand and discount.  He also believes that luxury brands should avoid Amazon completely.  "Everything that makes Amazon brutally efficient and successful precludes their ability to work with luxury brands." 

 

Malkin questions what an acceptable experience might look like in the future, when consumers could arguably be printing their clothing or shoes in their own living rooms.  The only reason why consumers will visit brick-and-mortar stores in the future will be directly tied to the quality of the customer experience and will have less to do about products. And the quality of customer experience is tied directly to the ability of sales professionals to connect and deliver experiences that will motivate consumers to leave the comfort of their homes. 

 

Malkin views his business differently from other shopping center owners.  "We're in the tourism business; we're in the business of creating experiential destinations that happen to sell merchandise and we've embraced elements in our culture that have nothing to do with shopping centers or retail." That helps explain why he recruits employees from the hospitality industry, events industry, nightclubs and high-end retailers. Eighty percent of his 1200 team members previously worked at Gucci, Prada, Dior, Ralph Loren and/or Tommy Hilfiger.

 

Malkin believes that retail is fundamentally about fashion and fashion is fundamentally about women who shop touristically.  Luxury experiences can't be mass produced - they need to be curated and customized.  That why it is virtually impossible to have exceptional sales professionals in a discounting environment and hope to survive. To appeal to human beings' five senses to deliver outstanding customer experiences requires relying on art as much as science, commitment and passion as much as logic.  This assessment parallels guidance offered by Doug Stephens at the 2017 DPHA Annual Conference. Appealing to a customer's senses and delivering exceptional customer experiences are challenges that all retailers face, including decorative plumbing and hardware showrooms.  

 

Malkin claims that human nature is the primary reason why most retailers and shopping centers will not change.  They are opting instead to invest in new technology, apps and machinery with little to show for those investments.  Change is difficult, especially when you have had a track record of success, and investing in technology is easier than inventing an uncomfortable culture.  The fact remains that the way people buy has fundamentally changed.  Product is no longer the driving reason why someone will get off the couch. 

Does your culture need to change?  How are you embracing your customer's senses and making your customer experience the reason why someone would make a special trip to your showroom?

Enhancing the Consumer Shopping Experience, by Phil Hotarek (Lutz Bath & Kitchen), an Education Committee Member

The silver lining to evolving technology and online shopping is the enhancement of the consumer shopping experience.  It has forced change, creativity, and innovation in how we can create a stronger connection with our market.  Technology has given more control to the consumer with instant accessibility to information, price comparison and product knowledge.  Manufacturers and showrooms are now faced with the challenge of staying ahead of a rapidly evolving market or going to hell in a handbasket.  Let us go beyond stating the obvious - that we are battling Amazon with exceptional service - and delve into how we as innovators can enhance the consumer shopping experience for decorative plumbing and hardware.

Digital Merging of Online and Offline Shopping

Chances are that anyone walking into a showroom is already well researched in the categories of accessible showrooms and products - glorified Google and Youtube experts.  If that is indeed the case, then why would anyone purchase decorative plumbing and hardware products from a showroom anymore?  A one word answer: CONFIDENCE.  Decorative plumbing and hardware is among those categories that consumers are least confident about and purchasing on their own.  They seek expert knowledge and information through showrooms and from there it is our job to gain their trust by coordinating the entire project.  Integrating technology into your showroom experience creates a seamless transition from internet product browsing to the showroom experience.  Tesla has achieved this by providing the technology for customers to build their own car with custom features on monitors right in their showrooms.  A plumbing showroom can achieve a similar experience by improving visualization in a client presentation.  This can be done by using advanced architectural software or even something as basic as a PowerPoint to cast a client's project on a large monitor or tablet.  If you want to take it a step further, the presentation can be brought to the client on the job site or for that matter, anywhere, simply by using a tablet.  Ultimately, clients want to feel valued and want to make their lives easier.  By taking the tedious task of browsing away from them and placing an emphasis on a quality presentation using technology that clients are used to, you successfully merge the online and offline shopping experience.  Lastly, the ability to complete the sale on a mobile device from anywhere can add that final touch of comfort right before signing with their finger and receiving their invoice via email.

Data Implementation and Attribution

The driving force behind rapid technological advances is data analytics.  Tech giants, Google and Amazon, invest a large percentage of their resources on the collection, storage and analyzation of data to be more in touch with their market.  Google search "best juicer" and all of a sudden your internet browser is filled with advertisements for juicers and coupons from Sur La Table.  Data analytics is playing an increasingly significant role in all industries, even sports!  For the decorative plumbing and hardware industry it should be no different.  Collecting and analyzing data relevant to your showroom's success is critical for growth.  Some examples are:

• Percent quotes > invoice ratios
• Seasonal sales 
• Style and category 
• Manufacturer specific
• Finishes 
• Hot trends vs. timeless products
• Service callbacks and returns
• Best marketing channels that influence purchases

Measuring attribution can be difficult when making sure your investment in resources produces a greater return.  Taking data analyzation a step further might be sharing those results with manufacturers and representatives to create better synergy for new products that are being released.

Exceptional Customer Service will Never be Obsolete

While enhancing the consumer experience in your business, you can never sacrifice the value of exceptional customer service.  Successfully integrating technology in connecting with your clients and improving data analytics should be built on the foundation of your company's values.  An optimal in-store experience can be reinforced with the heightening of all five senses and making sure the customer walks away with something tangible.  A smooth blending of traditional values with modern technology will speak volumes about your business. 

Lessons From Nordstrom in Earning Customer Trust

Nordstrom is known for its exceptional customer service and does not deny publicly that it once took back a set of tires from a customer who was dissatisfied with the purchase even though Nordstrom does not sell tires.  The story is not true of course, but that's not the point - it speaks to the Nordstrom brand.  Similar to other brick-and-mortar department stores, Nordstrom is challenged by ecommerce competitors and a paradigm shift in the way consumers shop.  In response, Nordstrom is constantly tweaking its business model to maintain its relevancy to its customer base and to create more compelling customer experiences.

 

The company appointed Olivia Kim as Vice President of Creative Projects, whose role is to recruit new customers and make the brick-and-mortar store a destination for fashion inspirations and merchandise that is not easily found elsewhere, according to a recent Glossy podcast.  Kim explained the strategies that she is using to appeal to customers interested in fashion, art, culture and style and thereby turning Nordstrom into a go-to destination for that type of inspiration.  Experimenting with eight different Nordstrom stores, Kim establish theme-related temporary pop-ups within the stores, including digitally native brands such as Everlane and Warby Parker, and obtaining exclusive merchandise from existing partners such as Nike and Alexander Wang. 

 

Kim wanted to emulate Fashion Week's Opening Ceremony that promotes obscure brands or re-imagines existing brands in new ways.  A number of retailers are experimenting with collaborations, but for those efforts to be successful they need to be able to interest and inspire consumers.  They need to say to customers, 'come here because we are on the cutting edge, we have something new and different.'  Kim explained, consumers "Need to look to you as a point of inspiration when they go to make their next purchase.  Earning trust is how you gain wallet share."

 

Kim also recognizes that today's consumer wants a shopping experience that is easy.  There's more to it than how quickly someone can acquire a product - it's more about preference.  While Kim recognizes that Amazon needs to always be on her radar screen, she does not view Amazon as a competitor.  She is focused on bringing experience, product and cool ideas to her customers and matching her customers to new brands.

 

Lessons for decorative plumbing and hardware showrooms: Consider emulating Opening Ceremony in your showroom for your builder, designer and homeowner customers and show how you can re-imagine new baths in different ways.  These may include some of the new technologies for tubs, shower systems, mirrors, integrated in-cabinet and drawer lighting, really cool new storage solutions, advancements in countertop materials, smart water closets, etc. The opportunities are almost endless.  There are also opportunities to pioneer brands that most of your repeat customer base have never heard of.  What prevents you from creating a pop-up in your showroom featuring different products that are customizable?  Other possible pop-up ideas including re-imagining a display area dedicated to "a return to nature", "in-home spa", wellness center or "the high-tech bathroom".

 

When you match your customers to new ideas and brands, you are most definitely making a distinction between your showroom and online etailers whose most distinctive competency is the quickest route from wanting to getting.

Lessons Showrooms Can Learn from the Demise of Toys R Us

Your business is not a toy store, but the closure of all of the 735 U.S. big box Toys R Us retail stores, which will in turn eliminate 33,000 American jobs, is another serious blow to the brick-and-mortar landscape.  And yes, the lessons that felled Toys R Us are equally applicable to boutique decorative plumbing and hardware showrooms.  DPHA 2018 Conference Speaker Bob Phibbs, aka the Retail Doctor, had an interesting blog post explaining the lessons that every DPHA member can learn from the demise of Toys R Us. 

 

Phibbs points out that many people will erroneously claim Amazon was the reason for the Toys R Us, but that's not really the reason.  Toys R Us became the most dominant toy store in North America because founder Charles Lazarus capitalized on a demographic shift he foresaw among Baby Boomers who wanted to give their children more than what they received themselves as children.  Lazarus modeled his retail operations after grocery stores, stocking shelves from floor to ceiling with an endless array of offerings.  If you entered Toys R Us you did not have to go anywhere else.  Any toy you could imagine was within your reach.  The go-to-market strategy equated choice as the vehicle to generate easy sales.

 

Toys R Us became a category king before most Americans had heard of Walmart and before Amazon or the Internet was created.  With the advent of the Internet though, the brick-and-mortar retail landscape started to change.  Products became secondary to the experience.  Go to a boutique toy store today and you will find employees and kids playing with the merchandise.  They get a chance to experience it firsthand, ala Apple stores.   Few, if any kids, played with toys at Toys R Us.

 

The parallels between Toys R Us and decorative plumbing and hardware showrooms are eerily similar.  Many showrooms became first-to-market destinations, pioneering products and displaying a vast array of merchandise that "wowed" customers who had little idea that the products on display actually existed.  More meant better based on the premise if you display as much as you can, consumers will believe that you have everything and then don't need to go to elsewhere to find what they want and need.  Similar to Toys R Us, DPH showrooms operated under the premise that choice equated to easy sales.  To paraphrase Bob Dylan, "The Times Have Been Changed."

 

Toys R Us teaches us the valuable lesson that product does not equate to easy sales or profitability.  Consumers are overwhelmed by choices in all phases of their life.  Consider how many emails they receive, the number of channels they have with their cable television subscription, the number of social media posts, texts, snaps, etc. that they encounter daily.  We are inundated with content.  Look around your showroom.  How many faucets look the same?  Can your staff tell the difference between cabinet knobs offered by different manufacturers? If they can't, why would you expect clients to tell or appreciate the difference?  Is it time to rethink displays and merchandising?  Is more better or is better better?  Your vignettes and displays need to reduce sensory overload, not contribute to it.

 

A wall of faucets may not be the best use of space or strategy.  Your customers need to be able to visualize how a faucet, vanity, sink, lighting, tub, and/or water closet would be like to use in their home.  When you look at a wall of 200 faucets, do you expect customers to pick one out and say, "That's the one I know I want."

 

Products no longer sell themselves.  They need to have a story and their story needs to be told by a sales professional passionate about improving their customers' lives.  There's a reason why someone will make the effort to visit a showroom.  They want confirmation that their selections are the best solution for their home.  They need to feel that the guidance received was delivered from someone who was looking out for their best interests as opposed to recommending a product because the sales professional received a spiff.  

 

Does your showroom fundamentally look the way it did when you opened it with the only difference being products on display?  The inability or reluctance to update the retail environment is another contributing factor to Toys R Us' downfall.  Phibbs argues that retailers need to remodel their stores every 3-5 years if they expect clients to return.

 

Toys R Us positioned itself as a discounter.  When you use price as a main attraction, you race to the bottom.  Toys R Us finally hit the bottom.

 

Target and other retailers ate Toys R Us' lunch by cherry picking the best-selling and trending products and then displaying them more effectively, thereby eliminating the need to make separate trips to the toy store.  Every decorative plumbing and hardware showroom should monitor what Restoration Hardware is doing.  Visit an RH store and closely examine the plumbing, hardware, lighting and accessory displays.  Ask yourself, could Restoration Hardware do to your showroom what Target and others did to Toys R Us, eliminate the need for customers to make a special trip?

 

Debt was another reason for Toys R Us' collapse.  It was unsustainable and that teaches another lesson.

 

Average does not cut it anymore.  Products for products' sake are not the keys to success.  More is not better.  The ability to tell compelling stories, ask the right questions, listen intently to responses and establish a trusting line of communication will help ensure continued prosperity.  What are you going to do differently tomorrow than you did today?

A No-Fail Negotiation Strategy

Do you like to negotiate deals?  Whether you do or don't, here's a suggestion that one of the nation's premier negotiation trainers, the Black Swan Group, says is almost always successful regardless of industry or context.  To get to "yes", eliminate the negatives up front.  Make a list of every unreasonable, unfair, crazy, ridiculous accusation your gut instincts are picking up that the other party might say about you, advises Black Swan.  If you sense that you would like to say to the other side, "I don't want you to think this about us," that's something that should be on your list to address immediately.  Don't deny or hide what you believe the other side does not like about you or does not know about you.  Here are some examples for a decorative plumbing and hardware showroom sales professional who meets with a prospect for the first time.

• "I bet you believe that you can purchase better online?"

• "I can understand why you don't want to be sold."

• "I recognize that you don't want to share budget information because you rightfully fear that you'll pay too much?"

• "I'm sure you are concerned about problems that occurred on your friends' and familys' renovation projects might happen to you."

The reason why you address the negatives up front is because of the way the brain works.  Alex Korb's book, The Upward Spiral, explains that when negatives are identified up front, they diminish every time.  Black Swan claims that's why it is critical you don't deny the negative when using this strategy.  You use it to "induce a contemplation of it by your counterpart to trigger the effect." 

 

It's also easier to pitch negatives than to convince a prospect of value.  Black Swan claims that the equivalent reasons for not doing something weigh three to nine times more heavily on us than the same value reasons for doing something.  That helps explain why most of your customers will spend six to 12 months on average researching a project before setting foot in a showroom.  That's why some sales training experts believe you have to show nine times the value in order to make a sale.

 

When you eliminate the negatives, reasons why a prospect would want to rely on your showroom for their new bath or kitchen take over and it's easier to get to "yes".  Black Swan claims addressing the negatives up front works almost 100% of the time.   Try it and let us know if it works on our Facebook page or post a comment on our LinkedIn Group.

Why Clients Do Buy

Between 20 to 30% of all retail customers, including those coming to decorative plumbing and hardware showrooms, don't buy, because the experience stinks. Salespeople who are living in the past, pressing the easy button to sell what they are spiffed on or directing customers to tried-and-true solutions that may or may not be appropriate for the job are a problem. The reason why many people opt for online purchasing is that it offers a better (or easier) option than schlepping to a showroom only to be frustrated by a sales professional's inability to ask the right question, care about the response they get or determine the reasons why the prospect wants to renovate their bath or kitchen in the first place.

 

Consider this: When someone walks into your showroom, it's not because they need to purchase from you. They can find faucets, shower systems, tubs, vanities, lighting, accessories, etc., in many other locations, including from the comfort of their couch. The reason prospects come to your showroom is because they want to. It's a choice that they make.

 

A new way to looking at closing a sale is assisting your clients accomplish the goals they set out with, which is to obtain guidance for their new baths. When you help clients achieve their goals, you are transformed from sales professional to trusted advisor and at a minimum you are delivering on, if not exceeding, their expectations.

 

A primary reason why customers won't buy from your showroom is that they don't trust you. Establishing trust requires knowing the real reasons why a customer has made the actual effort to visit your showroom. What is the motivation to renovate or build a new kitchen or bath? What goals, aspirations or dreams do your clients have or want to achieve? Why is the renovation important to the client? When you look beyond the basics of having something new or replacing something that no longer works, you can drill down, understand the personality of a person you just met and then craft solutions to meet their individual needs.

 

Once you determine true motivators, the next step in establishing yourself as a trusted advisor is to paint a picture of what your customer truly values. When you do, you help establish an emotional connection to your solutions. Using the word imagine, is a powerful tool to help connect. "Imagine what it will be like when after a hard day, where nothing seemed to go right, you can take a few minutes just for yourself, soaking in your tub or sitting in your steam bath and washing away the stresses of the day." "Imagine how much better you will feel knowing that the lighting around your mirror puts you in a position to look the best you can be." "Imagine how much easier it will be to prepare for the day knowing that everything in your bath has its own special place, making everything easier to find and use."

 

What does it mean when a prospective customer pauses, telling you they are not sure or not ready to move forward? Usually this means they are overwhelmed. As Robb Best explained at the 2017 Conference, when you offer customers too many choices, they become overwhelmed and shut down. Another reason why customers may balk is you forget to ask for the sale. If someone hesitates, find out the reason why. Inquire about the next steps and where you may help them. Most showroom customers have been researching a renovation for at least six months. When they near the end of their journey and balk, it is your role to explain they won't get closer to achieving their goals. This puts the decision to delay in a new light.

 

Everyone has a budget. Price is never, ever the reason someone does not buy from you. If a prospective customer takes the time, effort and energy to come to your showroom and after spending considerable number of yours and their hours looking for a solution walks away because your recommendations cost too much, that's the excuse but not the reason. When someone says the price is too high it is because the salesperson failed to prove the value they bring to his or her project.

 

Picasso is quoted as saying, "If I knew what the point was before I began, why would I paint?" Here's a fact - your customers have not changed. Their access to information has gone under a revolutionary metamorphosis, but their need to feel good about the purchase, to work side-by-side with a trusted advisor who takes the time to understand their true needs and to believe that they spent their resources with those who care about them and respect their time have not changed. The keys to closing more sales is asking the right questions to establish trust and need, making emotional connections, minimizing the risks associated with ripping apart one's home and learning how to deal with price sensitivity.   When you approach sales with those goals, you will not only increase the number of sales you make, you will see your referral business and positive reviews skyrocket.

 

The Secret of Telling Great Stories: Understand the Point

In their best-selling book, Made to Stick, Chip and Dan Heath relate an anecdote from Nora Ephron, the screenwriter who penned Oscar-nominated scripts, Silkwood, When Harry Met Sally and Sleepless in Seattle. Before captivating Hollywood, Ephron worked as a journalist for the New York Post and Esquire magazine. Her career choice was the result of a lesson taught during her first day of journalism class in high school. Most of the students believed that journalists research facts and then report what they find. Fact finding involves finding the who, what, when, where and why - also known in the trade as the five Ws.

 

The class's first assignment was to write a headline for a lead newspaper article. The facts conveyed were:

• The principal of Beverly Hills High School announced today that every faculty member will travel to Sacramento next Thursday to participate in a colloquium in new teaching methods.
• Speakers will include anthropologist Margaret Mead, college president Dr. Robert Hutchins and California Governor Edmund "Pat" Brown.

The class dug into the assignment, typing away to craft compelling headlines. Most responses, according to Ephron, reordered the facts and condensed them into a single sentence, wrote the Heath brothers. "Governor Pat Brown, Margaret Mead and Robert Hutchins will address the Beverly Hills High School faculty in Sacramento next Thursday," was a typical offering.

 

The teacher looked at the headlines his students developed and then stopped. Made to Stick relates, "Finally he said, the lead to the story is, 'There will be no school next Thursday'." 

Ephron had an epiphany. She realized then that journalism is not simply about regurgitating facts. Instead it requires figuring out the point. It's not sufficient to know who, what, when, where, and why if you don't understand what the facts mean and why they really matter.

 

Therein lies the lesson for decorative plumbing and hardware showroom owners, designers and sales professionals. To connect with customers emotionally which thereby enables you to become their trusted advisors, you need to understand the hidden point of their projects. You need to go beyond the who, what, when, where and why and determine what those facts mean to your customers and why they are important. What is the motivation for the project? What does the ideal solution look like? What will your customer feel when they enter their new space for the first time? Answer these questions and the odds are you will not have to squabble over budgets.

How to Make Great First Impressions

When someone comes to your showroom unexpectedly, how you approach, greet and interact with them could be the difference between landing a new customer or having them walk out the door. Frankly, idle chit chat most likely will not land you a new customer. When you approach them don't ask "how are you doing" because the prospective customer most likely figures you really could care less about how he or she is doing. A much better approach is to say, "Welcome to our showroom. Please feel free to wander around. If you don't mind, I'll then check back with you in a few minutes to answer any questions you may have."

 

Another no-no is to talk about the weather since you can't change what is going on outside, what is likely to occur in the future or what has occurred in the past. Frankly, discussing the weather is a waste of time. A better way to ingratiate yourself with potential customers is to compliment them on what they are wearing, a piece of jewelry or their hair style. Doing this indicates that you are not only observant, but you care about them personally.

 

Most initial visits to a showroom are information gathering expeditions. In fact, most of your customers conduct research for more than six months before deciding to move forward with a renovation. A good approach would be to ask, "which room in your home are you looking to make over?"

 

Avoid the temptation to ask about a budget because the odds are they might not have one or the figures in their head may be wholly unrealistic and possibly obtained from watching HGTV or the DYI network. And never forget that people will spend up to three times their budget on things that they connect emotionally to. Think of your own habits. You will splurge on the things that you want the most and that make you feel the best. A better option when budget comes up is to simply say that "the showroom has a range of options with different prices. To ensure that your dreams are realized, would you mind if I give you a tour and explain the differences?"

The Only Thing We Have to Fear Is Fear Itself

President Franklin D. Roosevelt uttered that prophetic phrase as part of his first inaugural address in 1932. Little did President Roosevelt realize at that time that his observation would apply to decorative plumbing and hardware showroom customers in 2018.

 

You will close more sales if you realize that price is never the reason why a sale is lost, nor is it the type of shower system, faucet, steam unit, vanity, lighting or any other product that is featured in your showroom. The primary reason prospects will abandon you for some other option is that you failed to eliminate your prospects' fears and establish yourself as a trusted advisor. Your prospects come to the showroom for affirmation and guidance. If they have spent considerable time already researching their options, they are in the showroom looking for solutions. It's a big deal to rip apart one's home and be without a kitchen or bath for many weeks. When you focus on understanding what your customer's fear the most and you help allay those fears, you will inevitably watch your closing ratios skyrocket.

Let's Get Organized, by Darryl Jones of QuickDrain USA (an Education Committee Member)

Organization is key when preparing to meet with a showroom client for the first time. A planning template is essential for maximizing your time and your clients. When a client visits a showroom for the first time, it could be overwhelming. A template will guide your customer and keep them focused on the task in-hand. A good template should be broken out by room and have the specifics already listed, and Excel rows are easy to delete and insert. It helps to have the main products listed first and then the coordinated accessories. Include anything and everything that may or may be purchased by the customer in that room. Be methodical about including every single product that can be used in that room. A little work upfront will speed your client thru the selection process. I've included a template to help you get started, however feel free to make changes in order to make it your own. And be aware that this template will only be available for a short time. Click here to download the template, and what now follows are some tips and tricks.

 

Code Box is used for Discounts: 

 

Percentage of discount given of list price can be found on the Codes and Calculator Tab under discount codes. Example: Entering 1 into the Code box will give 10% off of list Price.

1 = 10% off   3 = 15% off   5 = 20% off  7 = 25% off   9 = 30% off   11 = 35% off

Tax Code Box defaults to Colorado tax code, however it can be changed for your State, City tax structure. I will show you where the changes can be made in the formula. This is where it gets geeky. Get some help if you don't know what the local tax codes are. Just change the highlighted percentages to your local tax codes after the * if you need to delete a string of the formula, just remember to delete up to the ")" which is used for the closing of a formula.

I've also included the following Calculators and Charts.

• Gross Profit Margin Chart
• Sale Price Calculator Driven by gross profit margin
• Gross Profit Calculator

Why use Excel? Excel allows you to use hide cells, lock cells and create formulas. Once you understand how it works, you can use this program to streamline the decision-making process. Remember, make it your own and invest the time to get it exactly how you want it. Don't leave any money on the table.

Don't Judge Books by Their Covers

A common challenge for every showroom today is to avoid determining a client's budget before understanding what's most important to them.  Determining what's important requires catering to the new shopping paradigm, which most likely means your potential customers are already 75 to 85 percent into the customer journey when you meet them.  They have spent months online, viewing magazines and thinking about what their new dream kitchen or bath will look like. 

 

When prospects come to your showroom, the chances are that their smart phones or devices will also be omnipresent.  Keep in mind, however, that in today's world of "business casual" its even more dangerous than in the past to judge those "books by their covers".  The CEO of the hottest tech start-up with millions in disposable income may wander into the showroom wearing a workout suit or grubby jeans and a tee shirt.  You can't let someone's looks and dress cloud your opinion of them or what their project budget might be.  In fact, it could be substantially higher than a prospect wearing lots of real bling and designer clothing.

 

Flip the Funnel to Create Raving Fans

Have you noticed that customers will readily drop $20,000 on a new refrigerator for their kitchen renovation, but they balk at spending $500 on the most used appliance in their home, a new kitchen faucet. The fact that they may be without a place to cook for two months does not seem to bother them as much as a $200 change order. If you examined the things that drive your customers crazy, chances are they are not big picture items at all. Instead, it's the small, pesky inconveniences that send them off the deep end.

How can you eradicate annoyances that create negative impressions and leave your clients with a bad taste in their mouth? Flip the funnel. Everyone in your organization is a consumer. They purchase products and services. Have a brainstorming session and ask your team to relate the things that drive them crazy when they themselves go to a store or rely on a service provider. When you flip the funnel, you change perspectives and make problems easier to identify, claims management consultant Rick Houcek.

 

You are not asking your team to identify the complaints that your customers make, but the irritants that they actually experience when relying on others to provide them a service. Once they have identified the foibles that make them crazy, ask what they would do to eliminate them at businesses they patronize and then subsequently at your showroom. This is an exercise that should be conducted at least twice a year. When you eliminate the little details that leave negative lasting memories, you greatly enhance the opportunity to create raving fans who will recommend your showroom to their coworkers, neighbors and friends. Even if they don't, you'll save oodles of time and frustration from not having to deal with those little annoyances that drive your customers and you crazy.

When Email Is a Way To Avoid Communicating

How many times have you sent an email rather than picking up the phone or attempting to meet face-to-face to discuss a difficult, controversial or complex matter? How would you feel if you received an email from a builder who you have been supporting and working with for the last decade that said, "We won't be needing you on the estates project. We've decided to go in a new direction." What?! You most likely would be disappointed, angry, upset and at a loss.

 

Here are several situations where email should not be used to communicate a message.

• Don't use email to relate controversial decisions. Sending an email message, "I am sorry that you did not get the promotion. Hope you understand," most likely will result in a misunderstanding. 
• Don't use email to share sensitive information or for the sole purpose of covering one's backside. Creating a paper trail may be appropriate, but it may be more appropriate to relate the information face-to-face or over the phone and then confirm things in writing.
• Don't use an email to avoid a conflict or a confrontation. Sending an email to inquire why a deadline was not met, a problem not corrected or a budget not followed will only put the recipient on the defensive and most likely will result in an unproductive series of back and fourths that leaves everyone at a loss.
• Don't use email to paint the recipient into a corner by outlining every reason for your position so as to avoid questions or disagreements. Email is not effective as a court brief. How many times have you received a six or seven paragraph email and rolled your eyes?
• Using email to say things you would not say face-to-face. How many emails have you sent or received and thought, wow, that really should not have been sent?
• Using emails because you don't want to take the time to meet, call or simply walk down the hall. Yes, email is easy and quick, however, that does not mean it should be used when a more appropriate and effective form of communication is required.

A good rule of the thumb is that if an email chain goes beyond three back and fourths, there's a good chance continuing a written dialogue is not going to result in a solution. That's when it's time to pick up the phone and have a candid and mutually respectful conversation. You can diffuse tense situations by starting a conversation or an email by stating, "We don't seem to be on the same page, but we both want to make sure the project goes well. When's a good time to talk? Let's schedule a call."

 

Another key is to downplay or eliminate emotion and focus on facts and solutions. And when you do have a difficult conversation, recognize that the first 30 seconds are critical. That's the time you have to state your case before asking what the other side is thinking. If you speak longer than a half minute, chances are the other party will tune you out and not hear what you are saying.

 

Email is an extremely effective communication tool, but it's not a be-all and end-all. Recognize when email is not the preferred communication medium. When you call or meet face-to-face for difficult, controversial or complex discussions, you will save time, reduce stress and eliminate misunderstandings.

Three Keys to Attract and Retain Best-in-Class Talent

Career, community and cause are the three primary motivators that motivate the 21st century workforce to perform at their best, concluded a study by Facebook of its team members.

Career relates to a place of employment that provides team members autonomy, enabling staff to use their strengths and provide them opportunities to learn and develop professionally.

Community involves an environment where team members are treated with respect, are cared about and recognized by others. This results in a connection and a feeling of belonging.

Cause relates to demonstrating and explaining that what your team does every day makes a positive difference in the lives of your clients. You simply don't design new kitchens - you improve the quality of your clients' lives.  The jobs you perform provide professional and personal satisfaction to the team.

The mistake many companies make is that they believe if they offer their team two out of the three motivators, their team will be satisfied and that company will be viewed as a best-in-class employer. That's actually not the case. The Facebook survey found that career, community and cause are equally important to team members regardless of their age or place in their careers. This coincides with other studies that have found Millennials, Baby Boomers and Gen Xers had the same core work values.

Facebook and other studies confirm that the secret to motivating your team is to provide them opportunities to make a difference, to grow and to be recognized for the contributions they make to your company and clients.

Silence Is Golden

Silence is one of the most underutilized listening skills, because most people find it difficult not to respond or talk. Silence is effective because it makes most people uncomfortable, and when someone is uncomfortable, they are primarily focused on flipping the switch and getting to a state where they feel good. Imagine if you are trying to convince a customer to rely on your showroom and ask the question, "What's most important to you?" then don't say another word. Let them respond. Avoid the temptation to interrupt because chances are the customer will relate much more information than they initially intended. When they are done speaking, wait seven seconds (count silently in your head, one Mississippi, two Mississippi, etc.). The chances are pretty good that your prospect will subsequently relate additional information that will help you develop the best solution for their project and gain their trust.

 

Silence works well when dealing with type A personalities and assertive types because they typically want to dominate a conversation and hear themselves talk. When you use silence, you play to their ego while at the same time obtain additional valuable information. Attorneys usually learn this skill as part of their education.

 

Silence can also help disarm anger and adverse behavior such as yelling, cursing or personal attacks. The reason why a silent response works so well in these situations is that most people don't want to engage in a one-sided battle. Typically, if you don't respond to an angry or unreasonable customer, their emotions will not get the better of them and they will return to a more normal posture.

 

The Black Swan Group, which specializes in negotiation strategies, explains that silence can represent a tool to move negotiations forward. Using silence helps you better understand your counterpart's motivation for their position or behavior. Try it and let us know how it works on the DPHA Facebook Page or with our LinkedIn Group.