Talking Less = Selling More

Looking through the lens of a first-time visitor to a decorative plumbing and hardware showroom, what would you see?  Imagine the reaction of potential customers who are building a new home and were sent to your showroom to pick out products for a master bath, child's bath, powder room, guest bath, kitchen and laundry room.  What would be the customer's first impression.  How many similar products would they see?  And what would their reaction be to a first-time greeting by one of your sales professionals?  

 

The answer to the last question, according to 2018 DPHA Conference workshop leader Bob Phibbs (The Retail Doctor), is that many brick and mortar retail customers view first-time meetings with sales associates negatively.  Customers believe that sales associates will undervalue, misunderstand or railroad customers when they walk through the door, Phibbs wrote.  And the reason why?  Because most retailers, decorative plumbing and hardware showrooms included, focus conversations on features and benefits because that's what they have been trained on.  What most sales professional don't now is that before you can sell most anything successfully you need to learn how to establish a rapport that leads to trust. The key, Phibbs writes, is to "present just the right amount of information at just the right time."

 

Presenting the right amount of information at the right time requires speaking less and listening more. Many sales associates, especially those newer to the industry, tend to want to show how much they know and talk too much.  Phibbs suggests that sales associates pause before speaking to make sure that a customer has finished his or her thoughts, which enables the sales professional to craft a response.

 

Another key is to determine the reasons why the customer has visited the showroom before making recommendations.  Why does someone want to renovate their master bath?  Why is someone building a home?  What do they want the rooms to look and feel like after construction ends? Before making product recommendations, ask clarifying questions, advises Phibbs, to determine what is most important.  When you determine the motivation for a customer's project, you can start to frame the next steps to create trust and get the sale.

 

Robb Best taught us at prior DPHA Conferences to limit choices. Offer no more than two product choices at one time.  If you describe the reasons why you believe a particular product will meet the client's needs, focus on the most important contribution that the product brings to your client's project.  Don't go through a litany of features such as it comes in 32 design finishes, you can adjust the length of the spout, it has a ceramic disk cartridge, the finish is guaranteed for life, etc.  Focus on what's most important to customers and then be quiet so you can gauge customer feedback.

 

Pay attention to how much you or your sales professionals speak during a customer interaction and how much customers say.  Customers should always talk more because when they do, you gain the information needed to craft the best solutions for their projects.  

 

Want more guidance from the Retail Doctor Bob Phibbs?  Click here to reserve for the DPHA Conference. 

Remodeling the Bath, by Traci D'Antoni (D'Antoni Sales Group), and Education Committee Member

We deal with people remodeling their homes everyday in the showroom. It could be for resale or it could be because they have made the decision to stay where they are while updating the home they love. I recently remodeled a bath in my own home and I'd like to share some things I learned and some tips to share with your customers to make their remodeling process as smooth as possible.

1. Take your time choosing a contractor. This is someone who is going to be spending quite a bit of time in your home, so interview your contractor with this in mind. You also should get 3 or 4 bids on your project and make sure to be very specific about what the scope of the work is. You want all your bids to be based on the same parameters. Get references from your potential contractor and ask the references about the entire process and the level of service they received.
2. Have a realistic budget. When you get back the bids from the contractors, review them thoroughly to see what is included in the quote. Remember, the quote could change depending on what happens when the walls get opened up. We've all seen the HGTV "we weren't expecting..."  I use 10% as the amount for the cushion in the budget.
3. Have a realistic timeline for both receiving product and completion of the construction. As business is picking up, it may take longer to receive product. I encourage having all product on hand before beginning the actual remodel. This will help prevent any stopage in work due to delays in receiving materials. Keep in mind that your contractor may have other projects going on and if they have to leave your project it could extend your timeline.
4. Be prepared - your life is going to be disrupted. At some point in time there will be dust, noise, power turned off, water turned off and someone else in your space. Make other arrangements for your pets if they have a tendency to run or be overly friendly.
5. Patience is a virtue and needed in abundance during your remodel. No matter how well you plan, there will be something that goes awry. Don't have a meltdown, just realize that it will pass and the results will be all worth it.

Being in the industry, I felt that I was well prepared for my remodel. I had all of my products on hand, my contractor came over the week before the project and looked at all of the products and I explained what I wanted done. That being said, I still had a few glitches during the construction, but now that it is all over, I wouldn't hesitate to do it again. I love my new bathroom and if you need a contractor in the Louisville area, I know a great one.

A Different World View by Tom Cohn, DPHA Executive Vice President

My son is moving to his first apartment in a few weeks and in anticipation of having his own crib, he is shopping for furniture. During his 48-hour research extravaganza, he concluded that the way we have purchased furniture and most other things for our home is "all wrong." We have relied on brick-and-mortar retailers and selected products that are well made and styled to last the test of time. And we have paid a premium for this approach. We always could have spent less.

 

A limited budget has required my son to look at popular priced offerings that will outfit his new 500 square foot abode. He is attracted to online companies (he's 22) and has convinced himself that the quality of lesser priced offerings that require self-assembly are of comparable quality to the furnishings he has grown up with. I questioned this claim. But his point got me to thinking, "Have we really been purchasing incorrectly for years. Did we spend too much for everything?" When we renovated the kitchen, our refrigerator cost more than my first car. 

 

Here's the lesson for decorative plumbing and hardware showrooms. We tend to focus on what we want our customers to believe. We spend hours upon hours trying to explain and justify our value proposition as to why our customers should pay a premium for products whose functionality can be obtained for considerably less. We often ignore the customer's lens and what customers believe is right for them. Do your sales professionals consider what story customers tell themselves?

Competing Against Amazon

At last year's DPHA Conference, the Retail Profit Doug Stephens astutely observed that purchasing products from Amazon is the quickest route from wanting to receiving. There is nothing special or emotionally engaging by acquiring goods with a few clicks of a mouse. Yet that being said, Amazon is expected to be responsible for 80 percent of online purchasing growth in 2018 and commands 49 percent of all Internet searches.

 

What makes Amazon the most dangerous for brick-and-mortar retailers is their technological superiority and understanding of data and innovation, which enables the company to enter new categories easily. Additionally, through the creation and promotion of its Prime Program that offers free shipping and other benefits, Amazon has amassed an estimated 65 to 85 million members.

 

Amazon's innovation enables the company to deliver purchases to the trunks of customers' cars and inside consumers' homes through the Amazon Key Program. Amazon's goal is to make the lives of its customers as easy as possible. Walmart, not to be outdone, also is testing delivery services, and in certain markets will stock your refrigerator with groceries purchased online, reports the Retail Doctor and 2018 DPHA Conference speaker Bob Phibbs. It's a safe bet to project that most decorative plumbing and hardware showroom customers are Prime members. That makes it extremely difficult to charge for freight or delivery in your market. How would you respond to clients that say, "Why should I pay freight? I could purchase the same things on Amazon freight-free."? Manufacturers and brick-and-mortar retailers need to partner more effectively to have freight included in the purchase price so that all products can ship free just like Amazon.

 

Another Amazon hallmark is that it accepts all returns with no questions asked. This is more challenging for brick-and-mortar kitchen and bath showrooms because so many orders are custom or semi-custom. Perform an analysis of returns in your showroom. How many requests do you actually get? If they are few and far between, perhaps it's possible to differentiate your operations from the competition by implementing a more generous return policy.

 

Make more complete sales by taking a page from Amazon's messaging that identifies products that the customer might be interested in, pointing out that customers who purchased product X also purchased Y. This is an easy transition during the sale process, "That's a great choice. We had a client last month who purchased the identical tub, and they also purchased a great looking vanity outfitted with an industrial chic faucet, steam system shower and smart mirrors. They rave as much about the mirrors now as they do about their tub. Would you be interested in looking at similar solutions for your new bath?" The key is to train your sales staff to be aware of the technique and use it regularly, if not on every sale.

 

A decorative plumbing and hardware showroom has advantages that can't be replicated online. If you have the luxury of working displays in your showroom, leverage that competitive advantage by offering customers the opportunity to trial test products.

 

Customization is trending and becoming a big business. Nike, Adidas, Coach and others allow customer to customize clothing, shoes and handbags. Decorative plumbing and hardware showrooms have been customizing products for their clients for years. Leverage your experience with custom faucets, fixtures, hardware, vanities and other products to enable your customers to make personal design statements in their home, and understand and appreciate the knowledge and expertise of showroom professionals.

Lessons from One of the World's Best Chef's to Avoid Complacency

Remember when you started your showroom?  Remember the enthusiasm, energy, fear and sense of accomplishment that permeated the fabric of daily undertakings?  It's only natural for successful entrepreneurial businesses that initially burst on the scene to make a splash, but then, over time, become complacent.  Complacency often is the prelude to failure and needs to be avoided at all costs.  How do you maintain your creative edge?  One of the world's greatest chefs provides the answer. 

 

Massimo Bottura's Osteria Francescana in Modena, Italy is ranked number one on the list of the world's 50 best restaurants, according to Harvard Professor Francesca Gino in a HBR blog. Gino explains that innovative organizations should not worry about maintaining excellence. Instead they need to focus on finding new excellence. Chef Bottura believes that his recipes are never finished. They continue to evolve over time.  He also rewards novelty over predictability.   He often asks his team to create new recipes based on a song, painting or poem.  Recently, he asked his team members to create a dish based on Lou Reed's Take a Walk on the Wild Side.  His team responded with new recipes from the era when the song was written, based on the lyrics or the title of the song.  Would it be fun to challenge your team to design a bathroom based on the Rolling Stone's Can't Get No Satisfaction?

 

Professor Gino explains that many businesses take the wrong approach in trying to instill uniformity in the workplace when in fact, they should focus on promoting novelty because novelty increases job satisfaction, confidence, creativity and performance. Citing a study of new employees in multiple industries, Gino found that the more frequently new team members learned new skills, interacted with new colleagues or felt challenged by their responsibilities, the more fulfilled and energized they were in their place of work and the longer their tenure was with their employers. 

 

When you regularly ask your team to step out of their comfort zones, take different approaches and avoid the tried and true, everyone in your organization will develop new skills and obtain increased personal and professional satisfaction.

The Millionaire Next Door

According to different reports, the number of U.S. millionaires ranges from a low of 11.5 million to a high of 16 million.  Credit Suisse found that the number of millionaires grew nearly 8% from 2016 to 2017 and the bank  predicts that number will climb another 16% by 2022.  Another study claims that 7 percent of all Americans live a millionaire's lifestyle.  

With their number increasing, the traditional millionaire demographic is changing, making it more difficult for decorative plumbing and hardware showrooms to market to this key demographic. There are a number of wealthy Millennials who can afford a Lexus or Mercedes, but instead opt for ZIP car when they need an auto because many Millennials have no interest in owning a car or the type of car that they drive does not matter.  The Federal Reserve Board's 2017 Survey of Consumer Finance found that 18% of millionaires are under the age of 45.  With a broad range of ages and interests, it has become increasingly important to craft customized messages targeting consumers based on data.

 

However, big data is no longer the exclusive province of large companies. There are services that compile data based on wealth, age, spending habits, interests, causes, work history, number of children, homeownership and other factors for companies with marketing budgets as small as $5,000.  

 

The good news for decorative plumbing and hardware showrooms is that almost every millionaire owns a home and 46% of those have other real estate assets, according to the Federal Reserve survey.  Mobility also is changing traditional homeowners, with many millionaires moving their primary residence or second or third homes to out-of-the-mainstream venues. There is a strong possibility, in light of recent tax laws changes that cap local and state tax deductions at $10,000, that many millionaires will be looking for alternative properties in more tax friendly locals.  

 

Decorative plumbing and hardware can reach more millionaires by using big data to craft individual messages to targets that are considering improvements to their home and by better understanding how they have accumulated their wealth.  Most millionaires fit the profile in the book, The Millionaire Next Door.  These consumers, according to authors Thomas Stanley and William Danco, have common denominators that they have used to successfully build wealth:

 

1. They live well below their means
2. They purchase carefully, looking for quality and value
3. Financial independence is more important than social status
4. They have limited experience with luxury products and brands
5. They save aggressively
6. The target the right opportunities

What Is Your Unique Selling Proposition?

If you met a high end builder who asked what makes your showroom different, how would you respond? If you said, "We have great customer service", do you think the builder would believe you?  If the builder asked, "what makes your service so much different from the service I currently receive from the showroom down the street", how would you respond?   Is your service really that much different from anyone else's that is serving premium and luxury consumers? 

 

Great service is not a differentiator, it's an expectation.   Some showrooms believe that their product selection sets them apart.  If you fall into that category, what is different from what you offer than what someone could find at competing showrooms or on the Internet and what value does that differentiation provide to the builder or other clients?

 

Many DPHA members were first to market in their region, pioneering products and lines that set them apart 20, 30 or even 40 years ago.  Times have changed.  To deliver a unique selling proposition?  Answer the following questions:

• What do you do differently from your competitors that surprises and delights your customers?
• What do your customers think about when they interact with your sales staff and showroom?
• Make a list of every feature of your services and products.
• Identify why and how each feature is important to your customer.
• How do the products/services/staff create deep emotional connections with your customers and why should they care.

Lack of Accountability May Not Be Forgivable

One of the attributes that makes golf special and different is the commitment to the rules of the game. Players at all levels appreciate golf's gentile nature.  Professional golfers will call themselves out for rules violations that in some cases have cost them hundreds of thousands of dollars or tournament victories.  How many offensive linemen in the NFL would go to the referee and say please give me a 15-yard penalty, I held on the last play? 

 

At the recent 2018 US Open, iconic golfer Phil Mickelson blew a fuse. Frustrated by the conditions of the course and his performance, Mickelson hit a putt and charged after it as the ball passed the hole.  When Phil caught up to the ball, he hit it back towards the hole while the ball was still moving.  For those of you who are unfamiliar with the rules of golf, what Mickelson did was comparable to breaking one of the 10 commandments. What makes his action even more horrific is that it was Mickelson who behaved as about as unprofessional as one can on a golf course.  Phil Mickelson is arguably among the top three most popular golfers in the world playing today and is one of the most accomplished professionals of his generation. He has won 43 tournaments, including five majors and currently ranks number 9 on the all-time list of professional golf winners.

 

Given Mickelson's stature and popularity it seemed totally inconceivable that he would hit a moving ball at any event, let alone his country's national championship.  The act itself to golf fans was unimaginable. What was worse was his initial explanation.  Mickelson said the reason he hit a moving ball was that it was better to take a two-stroke penalty than to try and hit the wayward putt back into the hole when the ball came to a complete stop.  In other words, Mickelson believed that it would have taken him more than two strokes to get the ball into the hole, so it was better for him to violate rules that to almost every golfer at his level (and many of us below that level as well) are sacrosanct.  Several days after the US Open ended, Phil issued a formal apology, but that occurred after the damage had been done and the back tracking seemed more to stem additional harm to his reputation than it was to show contrition.  

 

Mickelson's initial explanation was shocking and lowered Phil's reputation and esteem in the minds of not only his millions of fans, but also anyone who follows golf.  And therein lies the lesson.  We all make mistakes. We all lose our temper. Anyone who has ever attempted to play the game of golf, can understand Mickelson's frustration.  Most people are forgiving of errors.  What's not forgiving is a lack of accountability. If Mickelson would have initially stated "What I did today is inexcusable.  I lost my temper and let my frustration get the better of me. I want to apologize to my fellow professionals, to the United States Golf Association and to my many fans around the world who have supported me in my professional efforts.  I am truly sorry for what I did."  How would that have resonated as opposed to I cheated because it was less costly than playing by the rules? Instead, several days later he issued a formal apology and said,"It was not one of my finest moments."  

 

When you or your team makes a mistake, it's how you respond that is more telling than what you did.

Supreme Court Helps to Level the Playing Field

This week the U.S. Supreme Court, in a 5-4 decision, voted that states can force online etailers to charge sales tax irrespective if that retailer has a physical presence in their jurisdiction.  This decision spells good news for every brick-and-mortar retailer that has been placed at an unfair competitive advantage compared to online sellers of products who previously were not required to charge or collect sales taxes.

 

Last year, Amazon reported $32 billion in third-party sales, up from $23 billion in 2016.  The company stated that in the first quarter of 2018, 52 percent of all sales were made by third-parties, many of which, up until the time of this week's Supreme Court decision, did not pay state sales tax to jurisdictions where the etailer did not have a physical location.   

 

The Supreme Court decision stemmed from a suit brought by the state of South Dakota that claimed it was denied millions of dollars in sales tax by etailers that were shipping products to its citizens.  As a result of the decision, every online etailer is going to fax sales tax requirements in all 50 states and the District of Columbia.  For many smaller businesses, the cost of compliance could be enormous, helping to further level competitive playing fields with brick-and-mortar stores.

Regular Exercise Improves Work Quality and Home Life

We all know that we should exercise regularly, but then life gets in the way. We just don't have time. That excuse may not hold muster based on research by Dr. Russell Clayton, author of two books on work-life balance. Dr. Clayton's research revealed those who exercise regularly are less likely to experience conflict between their work and home roles. This may appear, on the surface, to be counter intuitive because taking time out of your day for exercise reduces the amount of time that someone can dedicate to their job or home life. 

 

Exercise helps reduce stress, which makes people more productive both at home and in the office. Regular exercise also increases one's self-efficacy that gives people the confidence that they can accomplish more in less time. This confidence boost makes those who exercise regularly believe they can take on any challenge or difficult task. 

There's no right time for exercise. Some people start their day at the gym, in the pool or with a run. When you exercise first thing in the morning, you can't find excuses not to exercise later in the day. Others will take a break in the middle of the day to exercise. It serves to clear their heads and recharge batteries. Still others find the best time is to hit the gym, pool or trail after the workday ends. 

The bottom line from Dr. Clayton's research is that regular exercise not only improves your health, it also helps to achieve superior work-life balance.

 

Become the Influencers of Choice

A number of brands seek to place their products and services in front of recognized influencers with lots of followers - Beyoncé, Miley Cyrus, Rihanna and Kanye West come to mind. Influencer marketing is a huge business with more than 73 percent of luxury fashion and beauty brands actively participating, according to a report from Fashion and Beauty Monitor entitled, The New Face of Luxury.

Macy's is taking a different approach to its influencer marketing efforts. Instead of relying on celebrities, Macy's is turning inward, recruiting its team members and personal stylists as brand ambassadors. Team members from across the continent can apply to become a member of Macy's Style Crew program. If accepted, they are expected to share promotional posts on their personal social media platforms. Currently more than 300 team members produce and post, with Macy's assistance, video clips of products on the video platform Tongal. One video, reports Glossy, features an employee conducting a bar-tending tutorial that contains links to glassware and cocktail accessories available at Macys.com. Another video shows a Macy's associate hiking with links to the athletic apparel that the hiker is wearing.

Macy's is not alone in leveraging its employees to become influencers and drive more consumer traffic to their ecommerce and brick-and-mortar offerings. Kate Spade and Everlane also are relying on employees to be brand ambassadors on social media sites. Macy's rewards members of its Style Crew program based on sales volume as opposed to the number of posts. Macy's is leveraging the people who know the brand the best, who can speak with Macy's authority and voice. Tongal reports that one associate sold $15,000 worth of handbags in a week.

Lessons for kitchen and bath showrooms: Why not leverage your team members to become your social media brand ambassadors? Work with manufacturers to produce video content that illustrates how their social media peers will benefit from renovating their kitchens and baths, or replacing dated and lower quality fixtures.

 

Refining the Approach to Design, by Phil Hotarek (Lutz Bath & Kitchen), an Education Committee Member

One of the major benefits of attending conferences is inspiration from interactions with industry colleagues.  Most recently at ICFF in New York, I was very fortunate to have interacted with many of our industry leaders and learned so much from the design community.  Returning from the show, I was struck with a familiar feeling that I had during my days of coaching ice hockey - as the game evolves, coaches must evolve with it.  Approach to design is no different.  Trends and design appeal evolve, therefore a refined approach to design is required to better service our clients.  Here are the takeaways from my interactions:

Budget and Timeline
This is a staple in the process and I'm doubtful that this will ever change.  The first question anyone is asked when visiting a showroom, "what is the timeline of your project?" will pretty much dictate the flow of the process.  If the client has lots of time and a limitless budget, the sky's the limit.  On the other hand, a low budget and a constricted timeline will limit their options pretty quickly.  Reinforcing the importance of asking about the budget and timeline is really just a reminder to stay sharp.

Create a Lifestyle
Creating a lifestyle was the big takeaway for me after the ICFF show.  What defines our bathrooms and kitchens have changed drastically over the years.  From my observation, the lifestyle of a room includes:

• Layout
• Function
• Mood
• Focal point

Furthermore, by developing the mindset of creating a lifestyle, you steer away from simply selling products.  The products are not the design - the products are simply components that fit the lifestyle of the room.  Layout and function are discussion points of sizing and storage solutions that fit the needs of your everyday life.  When selecting bath furniture, cabinetry, hardware and accessories, steer the conversation toward functional purpose.  Walk the client through their everyday uses and the little things that are important to them, and become the problem solver by making their life more functional.   

 

Mood can be affected by the colors and finishes.  Manufacturers have adapted by offering an array of finishes for their products which can open the discussion regarding the mood setting.  It is amazing what you can learn about a person by finding out what colors they gravitate toward.  Be observant in what colors strike the client's eye and make a connection by creating a mood in a space.

 

The focal point is where you can get creative with the design and make a statement.  One unique observation I had attending the San Francisco Decorators Showcase was the use of lighting in the bathroom and kitchen.  Almost every bathroom in the house had a unique lighting fixture that made the room "pop" while being more inviting.  With furniture and faucetry moving more toward minimal design function, it has created a void for a creative focal point.  Tap into what appeals most to the client and learn what the best focal point may be.

Luxury Spending Expected to Drop in Most Categories

A survey by YouGov found that luxury spending is on the decline among affluents in 2018.  The survey shows that the percentage of affluent customers who expect to purchase luxury goods and services has dropped from 40% in 2016 to 31% in 2018.  YouGov attributes this decline to a general lack of confidence in the economy despite the fact there is an increase in the number of affluents.  

 

Autos, cruises, jewelry, fashion and hotels are expected to be adversely affected by the pull back in luxury spending.  While luxury product purchases are expected to fall, luxury experience expenditures are not. Nearly two thirds of survey respondents reported that they would rather take a luxury vacation than purchase a luxury product.

 

The motivations for purchasing luxury products also appear to continue to change. Conspicuous consumption is not a driving factor for most luxury purchases. Instead, luxury consumers are looking beyond quality, craftsmanship and service, which are basic expectations of luxury consumers. They also want to partner with companies whose purpose mirrors their own.  Forty percent of luxury consumers believe that luxury brands have comparable quality and craftsmanship.  Simply look around your showroom for proof.  How many products compare equally in terms of quality and craftsmanship? Most likely more than 40%.  What percentage of your customers can tell the difference?

 

Luxury consumers want to purchase products that help them achieve their personal goals.  According to the survey, these goals include a healthier lifestyle, spending more time with family, exploring new places and having new experiences, learning something new, becoming a better person and simplifying their lives.  

 

Opportunities for decorative plumbing and hardware showrooms:  

• Ask the right questions to determine what your customers value the most and the goals they want to achieve with their project.
• Emphasize how your solutions and the products you recommend can reduce stress and enhance health and lifestyle.
• Identify brands with sustainable practices and promote them when telling their brand stories.
• Explain how your solutions will simplify their lives and make them better.

Make Your Offers More Appealing

At some point when engaging with a client or customer, you need to ask for the sale. And when you do, look through the lens of your customer. What can you say or do that makes your offer a no-brainer? Here are four ideas to help close more sales.

1. Describe how your proposal will benefit the customer. There's few products in a showroom that aren't available with a few clicks of a mouse. Customers come to showrooms for guidance on how the products you recommend will make them feel. Describe the benefits of owning a brand-new kitchen where customers can entertain family and friends, improve the quality of their life and enhance the value of their home.
2. Focus on the health benefits, stress reducing attributes and other factors that will improve your customers' lives.
3. Cater to your customer's wants and desires. Understand what they are looking for and relate why your solution meets those needs.
4. Create a sense of urgency by describing why a decision should be made now instead of later. Describe timetables for different specialty finishes or customs solutions that have eight to 10-week timetables.

The two major reasons why a prospect will walk away without making a decision or deciding to buy are that the offer was not sufficiently attractive (and that has little to do with price) or the timing was off.

 

A Sign of the Times

Whoda thunk it? Hasbro is introducing a new version of its iconic Monopoly game - Monopoly Cheaters Edition will debut in June.  Hasbro has known for years that half of those who play Monopoly cheat, so they decided to come up with Monopoly Cheaters Edition, which plays more quickly and crazier than the original version.

 

The original Monopoly game debuted in 1903 as a protest against the robber barons of that time - the Rockfellers, Morgans and Vanderbilts.  They were the Progressive Era's one-percenters.  Monopoly Cheaters pays tribute to those in 2018 who believe (or don't care) if the rules apply to them, and those who lie and cheat with impunity.  

 

The pieces that move around the board include a car whose trunk is loaded with stolen money. The top hat covers a pile of money and the dinosaur has a engineered arm that defies the limits of biology.  And to make the game play faster, you no longer buy houses.  Instead you jump straight into buying only hotels.  

 

The new game incorporates several of the most common cheats from the original version, such as stealing money from the bank, moving the wrong number of spaces on a dice roll and taking someone's hotel from the board.  There are five spots on the game board for active cheats such as a bank heist which tempts players to steal money from the bank at any time.  If they get away with it, on the next roll of the dice they can brag about the theft and get an extra bonus for stealing.  However, if they player is caught stealing, they are required to pay each of the other players $100 and they then go to jail.  But unlike the original version, those cheaters who are caught actually have to wear handcuffs that lock the player to the game board.  

 

Hasbro wanted to add more humor to the game so it came up with monikers for different illegal activities. Removing a hotel from the board is dubbed "Surprised Demolition" and sneaking a hotel onto one of your properties is called, "Unlicensed Contractor."  

 

Similar to the original 1903 edition, Hasbro has created a board game that is also a social commentary that speaks to the mentality of 2018's cheating class.  A company executive did point out however, both in the board game and in life, if you get caught, there are penalties to pay.  At least for some there are.

It's Time to Customize

Tapestry is the company that owns luxury brands Coach, Stuart Weitzman and Kate Spade.   The company has now embarked on a program that allows all three brands' customers to customize product offerings to accomplish the following goals:

• Reduce sales and discounting
• Improve pricing structures
• Mine customer data to determine trends and buying behavior in order to speed up the supply chain

Coach Create is available in about 40% of the company's stores worldwide.  It allows customers to design the features on Coach bags and add accessories and monogramming.  The Coach Rogue bag can be completely customized offering customers more than 1 million options.

 

Kate Spade's Make it Mine program gives customers 45 different customization design options and the ability to add accessories and monogramming to jewelry, bags and accessories. Customization capabilities are available both online and in-store. In Kate Spade stores, sensors are activated that identify areas on the bag that are customizable.  Digital screens identify possible changes consumers can make to a bag and there's even a training tutorial illustrating just how a bag can be customized.  

 

Customization enables customers to personalize products and make original one-of-a-kind products. Other luxury brands such as Chloe, Gucci and Diane von Furstenberg have also gotten on the customization bandwagon. In addition to being able to charge full price for customized products, these manufacturers are mining data they might otherwise not obtain because customers are likely to provide more information than they would for a typical purchase.  

 

Lessons for decorative plumbing and hardware showrooms:  

• Partner with brands who offer customization capabilities that allow customers to create their own unique fixtures by changing handles, spouts, finishes, etc. 
• Partner with manufacturers that have the capability to produce custom products.
• Establish databases to track customer preferences for use in future marketing and merchandising.  
• Determine if you automatically need to discount custom products because they are not likely to be available from any other source.

Want to Get More Done? Work Less!

Did you know the reason Henry Ford changed the work week from 48 to 40 hours was to reduce the number of errors that his employees made?  Working extra hours does not necessarily make you more productive. Numerous studies have found that spending more time on a specific task does not assure a better outcome.  In fact, research shows that those who work more than 55 hours per week experience declines in their ability to reason and solve problems.  There is a direct relationship between mistakes and hours worked.  Regardless of your position in your organization, there's a good chance there is always more to do and everything can be improved upon. Productive behaviors, not the amount of time spent on a task or on the job, are the key drivers of quality.  

 

It's also a misnomer to believe that the amount of time spent on a project or task will improve the output. That's not always the case.  In many instances, speed improves quality. An alternative outlook is to view quality not on how much time it took to complete a task, but rather on the impact the task has on sales, profits, the community, the company, etc.  When reviewing your to-do list, prioritize those tasks that will have the greatest impact on performance and metrics. Looking through the impact lens will change your definition of productivity from how much work you can accomplish in a given period of time to the impact the work in a given period of time can have.

Can Decorative Showrooms Follow Brookstone's Example To Deliver More Compelling Customer Experiences?

Brookstone, the retailer of niche tech products, desk toys, massage chairs and other limited distribution products, has been challenged because most of its stores are located in shopping malls, many of which have fallen out of favor with consumers.  Indeed, consumer fraffic in many of Brookstone's malls is down.  In response to this trend, Brookstone developed a new strategy to entice customers to its stores by opening its first Makers Showcase in the Roosevelt Field Mall in Garden City, NY.

 

The Makers Showcase features small, up-and-coming brands, many of which are made from collaborative invention platforms, are crowdsource funded and have no brand name recognition. The goal is to have consumers interact physically with the products, just as they do with other Brookstone merchandise, however the new approach comes with an innovative twist. Brookstone's Makers Showcase is designed to deliver hands-on experiences with new products and offers the opportunity for consumer events where product producers meet face-to-face with customers. This one-on-one interaction allows manufacturers to see customer's reactions first-hand and provides insights as to what works, and helps the "makers" better understand what is important to the customer and what messaging resonates most soundly.  Brookstone benefits by providing consumers additional reasons to visit its stores.

 

Can decorative plumbing and hardware showrooms achieve the same results by emulating Brookstone's experience?  What prevents a showroom from partnering with a manufacturer to create a pop-up boutique in the showroom space?  What prevents manufacturers or their reps from hosting active demonstrations of their products in a showroom in order to provide a more compelling and interactive customer experience while at the same time giving repeat customers, designers and trade members additional reasons to come to the showroom?  Wouldn't manufacturers and their reps benefit from one-on-one interaction with showroom consumers?  Please share your thoughts on the DPHA Facebook page or with our LinkedIn group, we'd love to hear what you think?

Cultural Cues and the Learning Mindset, by Phil Hotarek (Lutz Bath & Kitchen), an Education Committee Member

Preparing for upcoming conferences and meetings creates an opportune time for self reflection.  In a diverse industry, cultural awareness is a valued attribute that contributes to  professionalism.  Digital communication expanded use makes face-to-face interactions more impressionable than ever before.  A "Freudian slip" or cultural misfire when meeting someone from a different country can be awkward, but in fact, your recovery from mistakes can define your true character, given that mistakes are mitigated.  Here are some reminders before the next big event or gathering that will not only make your interactions more natural, but also help keep your mind in a state of equilibrium.

The Learning Mindset
Ambitious, driven individuals with a hard work ethic can easily succumb to a "Performance Mindset," obsessing over results and the perception that mistakes are evidence of underlying limitations.  Obsessing over perfection has a direct effect on the person's ability to use creative thinking skills.  You box in your own personality and begin to panic, which can make a situation seem even more alarming than it actually is.  The Learning Mindset starts with accepting the inevitable. We are human beings who make mistakes.  Keep the creative juices flowing by keeping hearts and minds open.  By eliminating impediments to your ability to think strategically, you become receptive to limitless knowledge and aware of opportunities that present themselves.

Be Prepared
One of the my favorite cheesy sayings of all time is "luck is when preparation meets opportunity."  Nothing is more evident than a person who is prepared.  Know your audience, your demographic and align them with your intentions.  Being equipped with knowledge on cultural cues is a sign of respect and demonstrates an effort in preparation, so long as your interests are authentic and genuine.

Be Engaging
Being prepared also leads to being engaging.  At an event, meeting, or conference listen, observe, and contribute while keeping cultural cues in mind.  The occasional faux pas may occur and if it does, learn from it.  Engage in self reflection and be genuine in your recovery.

Follow Up and Feedback
Follow up is a professional skill that many have not mastered and in our modern age is becoming a lost art.  Remembering the little details after only being asked for something once is difficult to execute even though it is a simple concept.  If something is offered or presented in an interaction, follow up on it.  Did you make a commitment that at the moment seemed like a good idea?  Follow up on it then and learn.  Being open to feedback is another characteristic that demonstrates the Learning Mindset.  Receptiveness makes for simpler communication and the ability to receive feedback creates opportunity to learn and grow.

Overcoming The Pressure on Price

The biggest concern of brick-and-mortar retailers is pricing pressures caused by discounting competitors and online etailers that don't seem to care if their retail operations make money, e.g. Amazon. According to a April 2018 study by Retail Systems Research, 58% of brick-and-mortar retailers claimed their top challenge is keeping up with their competitor's pricing. 

Department stores that constantly discount (i.e. Macy's), the advent of electronic coupons that flood consumers' inboxes daily and access to comparison pricing online has created consumer expectations that they should never pay full price for anything.  The study also found that pricing pressure is more severe in some sectors than in others.  Fashion and apparel retailers were more likely to be focused on pricing pressures and minimizing markdown spending.  More than 33% of Internet users worldwide reported that they receive a promotion at least once a week for a product that they would have paid full price for, reports a survey by Revionics and Forrester Consulting. If you automatically offer discounts, how many of your customers would have expected to pay full price?  As Pogo (a cartoon character from your editor's childhood) said, "we have met the enemy and he is us."

 

How do you avoid pricing pressures?  Offer unique products.  Provide a level of service that can't easily be duplicated by others or focus on specific lifestyles.  Restoration Hardware is a great example.  Restoration Hardware's go-to market strategy is to tap into the aspirations of its customers.  Every customer wants to receive good value.  How you convince your customers that you provide them the best solution for your project is to focus on their aspirations and by earning their trust. Need strategies to accomplish both of those goals?  DPHA is here to help.  Make sure you go to Rob Phibbs' workshop at the 2018 DPHA Annual Conference.

 

In Jacksonville, Phibbs will explain how to transform your corporate culture from one focused on tasks to one centered on the customer.  Well-trained team members can easily explain how a new bath will make clients feel every time they cross the threshold.  There are compelling reasons why a prospect will visit your showroom. The fact is that most consumers tell you they want to be left alone, but the reality is they don't.

 

Phibbs states that survey after survey over the past two decades reveal the inability to receive a greeting, prompt service, or finding an available associate are the most frequent causes of frustration for shopping in a brick-and-mortar store.  When you know how to approach a customer, ask the right questions and actively listen, you earn trust, because you demonstrate that you genuinely care about customer needs.

 

Thought for the day - Did you know that Millennials are more than twice as likely than Boomers and Gen X to say that interacting with knowledgeable sales staff influences their purchasing decisions?

Why Relationships Matter

In his book, The Land of Strangers, Robert Hall writes, "The truth is, relationships are the most valuable and value-creating resource of any society.  They are our lifelines to survive, grow and thrive."  As company leaders, bosses and mentors, what are you doing to help your team members and coworkers build their network of professional relationships? What encouragement are you providing? What opportunities are available and does your team know about them?  What are you doing to help yourself?

 

The inability, unwillingness or lack of awareness of individuals to build their professional network is not confined to our industry. It's a societal problem, writes David Brooks in a New York Times editorial.   Brooks notes that in the 1980's, 20 percent of Americans said they were often lonely. Now it's 40 percent.  Depression rates have increased 10 fold since 1960, yet we are more connected than in any other time in history. Or are we truly connected?

 

Jean Twenge questioned in a 2017 Atlantic article, whether or not smartphones had destroyed an entire generation.  Twenge found that today's teenagers are reluctant to date, less likely to leave home without their parents and more likely to put off the activities of adulthood.  "They are spending more time alone with their digital screens, and the greater the screen time, the greater the unhappiness."

 

How many of your team members are tethered to screens, reluctant to leave the friendly confines of their cubicle?  

There was a lot of talk recently about Facebook CEO Mark Zuckerberg's trip to Washington in mid-April.  The politicians focused on privacy issues and anti-competitive practices. What was not questioned is the societal impact of social media.  There was no discussion that Facebook and its social media contemporaries are contributing to an epidemic of loneliness and social isolation, noted Brooks.  The issue is that heavy Internet users are much less likely to interact with their proximate neighbors and that is having a major adverse effect on the social structure of neighborhoods.

 

British anthropologist Robin Dunbar claims that human societies exist on three levels:  the clan (family and close friends), the village (the community) and the tribe (your larger group).  Brooks notes that cross-class associations of town and neighborhood have fallen apart.  This is where organizations such as DPHA make such a positive difference.  DPHA serves as all three roles, as the clan, the village and the tribe for the decorative plumbing and hardware industry.

 

Relationships do matter. We know that you can't build a professional network behind a screen or within the confines of a showroom. That's why going to the DPHA Annual Conference is a necessity and that's why encouraging your staff to participate at DPHA regional meetings, NKBA chapter meetings, and other industry events is good for your business.  Let DPHA be your clan, village and your tribe.

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.