How Your Clients Research Their Bath Projects

The Research Institute for Cooking & Kitchen Intelligence (RICKI) recently surveyed how consumers who were planning to renovate their kitchen researched their project before making a showroom or product purchasing decision. (We also suspect that there is not much difference between how consumers research potential kitchen projects and potential bathroom projects.) RICKI found that consumers surf the web most often to obtain product information, find ideas and inspiration, read reviews and watch videos.  The results are as follows:

• 62% of the consumers surf the web to obtain product information.
• 61% of the consumers surf the web to obtain ideas or inspiration (up 20% from 2016).
• 39% of the consumers read product reviews.
• 36% of the consumers watched product videos.
• 26% of the consumers watch installation videos.
• 26% of the consumers download apps.
• 26% of the consumers read blogs.
• 23% of the consumers read news articles.

Lessons for DPHA members:

Click here to read more.

Welcomed Thoughts from a Fellow (Jeff Valles): Stop! Do Not Do That. Go Get Bored

While enjoying this Labor Day Holiday weekend, give this a try.

 

That moment, that very moment when you are between completing something and starting something else new, stop. Are you there? Well, maybe not yet, because you are reading this, I hope.  

 

The next time you are in that moment, do not facetime with your cell phone, do not look for a book or a magazine or anything else to occupy your mighty brain. Instead, hit FULL STOP. Feel the slow creep of boredom setting in. Let the blahness overcome you.

 

Perhaps you will now begin to hear the slight, persistent whisper of “what do I do now, what do I do now?” Let the weird feeling of anxiety slip in and out, in and out and then you are there, you have achieved utter boredom. The state of being when your mind starts looking at everything inside and anything outside. It’s called creativity.  

 

Fun ain’t it?

For more interesting reading about boredom, click here.

Welcomed Thoughts from a Fellow (Jeff Valles): It's Your Business!

It’s Friday afternoon, the sun is out and your business is strong. In fact, you are ticking a bit ahead of your budget. Then a representative from a good vendor walks in and informs you that your business is not keeping up with their other accounts. Boom! The clouds roll in, the rain is pouring down, and you have to find out what is wrong. Horse poop!  

Always listen and learn; there are always new opportunities to research, but remember to keep things in perspective – your perspective. Short- term thinking will only drive you and your team crackers.  

It is your business. You took the time to set your company’s goals and you make a focused strategy to reach them. Do not let others tell you what your business needs to do or be; it is not their company.

So, go back and enjoy your day.

Now, if you have not taken the time to set your game plan, maybe it is time to do so.

Use Constructive Criticism to Spur Creativity

Author Avish Parashar (Say Yes, And! and Improvise to Success) suggests that a shift from saying "yes, but" to saying, "yes, and" has the potential to enhance productivity, perpetuate positivity and unleash brilliance. Authors Roberto Verganti (Overcrowded. Designing Meaningful Products in a World Awash With Ideas) and Don Norman (The Design of Everyday Things and Emotional Design) disagree. They claim that creativity is enhanced not by deferring criticism, but through criticism.



The reasoning for not using "yes, and" exclusively is that truly exceptional ideas almost always have flaws because they explore new terrain. Norman and Verganti argue that without critical feedback, you can't understand the potential shortcomings and pitfalls of an original idea or concept, and this results in missed opportunities that would delve into an idea more deeply. They state, "It's moving forward without progress."

The authors suggest combining "yes, but" and "yes, and" constructively. When evaluating an idea, identify perceived flaws, provide constructive feedback and offer suggestions to either overcome or avoid the identified challenges. Each new version of the idea should receive the same critical review. “This kind of constructive interaction encourages a deep cycle of critical dialogues that can lead to a coherent breakthrough idea,” Norman and Verganti write. Using a combination of "yes, but" and "yes, and" create opportunities for progress, because the team can see both positive and negative aspects, thereby continually improving on the idea with each iteration.

To make criticism a positive instead of a negative, don’t attack or insult. Instead, acknowledge the talent and abilities of those who proposed the idea. Any critical feedback needs to be accompanied by recommendations for improvement. If you are not sure of the goal or intent, be specific in the details that you don't understand instead of just saying, "I don't' get it." Don’t blindly accept ideas that you like either - search for ways to improve the original.

When receiving a critique, view the feedback as a learning opportunity, and take advantage of the chance to see your idea through a different lens and with a new perspective. The bottom line is that when offering criticism, frame your suggestions as positive and helpful. When your ideas are critiqued, use the feedback as opportunities to learn and improve. “When conducted with curiosity and respect, criticism becomes the most advanced form of creativity,” the authors conclude.

Welcomed Thoughts from a Fellow (Jeff Valles): It Is Time To Change The RGA Process

The marketing math is compelling. It’s obvious that the most highly-leveraged moment in every brand’s relationship with a customer is the moment when something goes wrong. Seth Godin

 

A customer is upset because the product does not work as advertised. They call the showroom that they know and trust. Their salesperson now has been transformed from trusted advisor to inquisitor. The sales professional needs to ask their loyal customer the exact nature of the problem, determine if the problem can it be fixed on site and how much time it will take for a resolution? What an incredible waste time for both the customer and showroom salesperson, and this is only the beginning. Looming on the horizon is the oftentimes argument with the manufacturer as to whether or not they will credit the part, cover the labor, who is responsible, and of course, is the product indeed defective? 

 

Here's a better idea. Empower sales professionals to simply ask the customer what the customer wants and then do what they think is best? That applies even if the salesperson offers that the manufacturer will send the part or replace the fixture at no charge, and will pick up the freight and any additional labor costs. WHY NOT? Is it not better to have a happy customer and a content salesperson who will want to continue to specify the manufacturer's products? And the time involved ... the time savings are huge.

 

Let’s review today’s return process. It involves time from the showroom salespeople, manufacturer's customer service and warehouse people, cost for materials, accounting, and occasionally, management. How much time is wasted here, not to mention the frustration while at the same time taking people from productive tasks? No company has time for this. Let’s develop a new process that better promotes winning people’s trust and saving precious time.  

 

We need to move to one of these two models: 

 

1.    The Trust Model is when the manufacturer trusts its distributor/showroom to do what is best and reimburses them. No debate.

2.    The Additional Percentage Discount Model in which the manufacturer adds a few extra points to the purchasing discount to cover all return costs, product and labor, as agreed to by the distributor/showroom and its client. No debate.  

Let's take this model to the extreme. What if custom products all go bad and then a hurricane hits and …? True, there will be times when one side loses. But, over the years the law of averages will balance out. Strange and unique situations will always happen, but we cannot manage by those rare occurrences that might possibly occur. The benefits of time saved, customer meltdowns avoided, angered showroom staff, the chasing of product and the issuing of credit memos will all disappear.  

 

Doesn’t it make more sense to move from a time- consuming, issue-to-issue return process to a simple annual agreement? That would make all of our lives easier and would also give our customers another reason to trust us.

Lessons Learned From the Bankruptcies of Dean and DeLuca and Barneys

Two iconic retail brands declared bankruptcy last week, and the reported downfall of Barneys and Dean & DeLuca point to the ongoing paradigm shift in luxury retail. In a recent article in The New York Times, Ginia Bellafante notes that, "during the 1970s and 1980s, the sophisticated shopping experience was not branded in efficiency or self-denial or schemes devised in investment banks. Dean & DeLuca was itself a work of art. This was also true of Barneys, another institution born of the ethos that shopping was an act of self-actualization. Now both institutions find themselves in a financial free-fall." 

 

What happened? Bellafante suggests that both retailers lost their focus, expanding in a way that made them less necessary. They were both victims of New York's annihilating real-estate market, and both have found it increasingly difficult to be profitable due to debt loads.

2018 DPHA Conference workshop leader Bob Phibbs (The Retail Doctor) attributed Barneys' downfall to poor customer service in a recent blog. Phibbs noted that 63% of their online reviews were negative, and testimonials from customers said Barneys had a culture of arrogance and an our-way-or-the-highway attitude.

Poor financial management and inconsistent customer service did not bring about their downfall alone though. Something else happened. The Times notes, "The city that produced a retail culture focused on discovery and experimentation has become a place with Amazon boxes on the stoop of every brownstone. We have allowed our habits to become so effectively manipulated toward convenience that is hard to imagine appreciating idiosyncrasy if it returned." 

Bellafante also suggests, "The Internet has reshaped desire; influencer culture has diminished the hunger for the exceptional. Those who can afford nearly anything so often are moved not by what no one else has but what Instagram suggests everybody else wants."

As she reminisces of Barneys garnering mainstream attention by way of the HBO series Sex and the City, Bellafante states, "During the period the show became iconic, we could still make sense of the idea, originating in the 19th-century conception of the department store, that shopping was a social experience. You went shopping with friends, you went shopping to look at people, because in the right contexts, those people were bound to seem interesting."

Bellafante asks, has the purpose of shopping, especially luxury retail, been transformed from satisfying aspirations to simply filling voids?

Lessons for decorative plumbing and hardware showrooms are:

• Convenience is king. If you make it difficult to purchase from your showroom or buy from a manufacturer, customers will find a more convenient alternative.
• Products are no longer paramount. Lifestyle is. It's not what products do; it's how they make your customers feel and how they can make their lives easier, more satisfying, healthier and less stressful.
• If you don't train your sales staff to acquire skills beyond taking orders, your future is "iffy" at best.
• Have your sales teams write reviews of their favorite products on Instagram, your website and Houzz, among others.
• Ask your designer and trade clients to write reviews of your showroom and describe why they source product from you.  
• Ensure that every person on your team can answer this question, "Why should someone buy from you instead of online or from the competitor down the street?"

Welcomed Thoughts from a Fellow (Jeff Valles): Do Your Sales People Really Have All The Story?

A showroom salesperson is finishing up a great meeting, their client is nodding like a bobble head doll and a HUGE order is now in play. Then, the salesperson says goodbye and walks straight to their terminal to check their email and text messages. What? With all that knowledge and information flowing fresh in their mind, they shift gears and go to email?

 

And yes, many outside salespeople do the same thing. They give a killer presentation at a top design firm’s office, then wander back to their car, checking email and text messages. Once done with that task, they simply start their car and drive to the next appointment. AGGHHH! Maybe, just maybe, they will review their notes and meeting memories before they go to bed tonight.

 

As both persons described above fiddle with their email and text messages, all that profitable information from their sales calls begins to diminish. Honestly, we really have to save all those wonderful stories, action items and product notes ASAP in order to be completely accurate. Sure, they took “detailed” meeting notes, but no one can write everything completely and correctly. Good salespeople are listening, thinking and talking. With all that going on, even the best salespeople will miss valuable pieces of information. 

 

Our short-term memory is designed to help us survive life-or-death circumstances - it is not programmed to recall that the designer we talked to is starting a large job in November. That has no short-term value and your brain knows that, so the memory can very well slip away. Everyone needs to make it a habit to stop and review their notes, both written and remembered, and if remembered, that important information should be recorded as quickly as possible.

 

At your next sales meeting, take a moment to work with your associates to try and create the habit of immediate note taking and review following a meeting. Many may most likely fire back that they have to make sure their other customers have not been trying to reach them with a monumental catastrophe, so they need to constantly check messages and emails. The simple response is that the just-concluded meeting may have taken a few hours, so another 30 minutes shouldn’t make a difference. However, if the meeting notes are incorrect or incomplete, they might indeed be creating a monumental catastrophe for the future.

 

Endeavor to make it a habit that your sales team always takes the time after a meeting, call or training session to review and edit their notes. Then give it one more go-over. Now, they are set up to slam dunk this opportunity.

The Power of Positive Online Reviews

American consumers who buy online trust their family, friends and colleagues on purchasing recommendations more than a showroom sales consultant, online consumer or influencer, according to a recent study from Oracle.  

The study found that if a product or showroom has a low rating or not enough reviews, it can be quickly ignored.  Another study found that nearly 70% of all US online shoppers focus on the number of stars a showroom receives when evaluating a decorative plumbing and hardware showroom and other retailers.  Another 61% reported that the quantity of reviews also influences purchasing decisions. 

Most savvy consumers understand that online reviews can be manipulated - that’s why they gravitate toward showrooms with lots of reviews and that’s why decorative plumbing and hardware showrooms should ask each of their clients to post an online review about their experience.  Not only will it help to grow referral business from your clients’ neighbors, work colleagues and friends, it will build credibility with those who find you online and want to know more about you.

Welcomed Thoughts from a Fellow (Jeff Valles) - Let Your People Sell

Consistent follow-up habits are one of the most important talents of great sales people. Here's a giant fallacy – your sales team must be available for the customers at all times. Take a moment and think about that. Your top salesperson is on the phone with a homeowner discussing the differences of two satin nickel finishes from different manufacturers being installed in the same room. Talk about a waste of time, not to mention that this conversation has no “right” answer. So, while your top producer listens patiently to this conversation, potential sales wander around the showroom unattended. Frustrating?

 

When showroom owners are asked what they need, better and more sales people top the list. So what does one do? Search, hire and pray that all the planets align and this person becomes the "Tom Brady of toilets." Alternatively, you can make more time for your salespeople to sell. Yes, sell – don’t chase orders or play psychologist - simply sell.

 

It usually takes 24 months to prepare a salesperson to obtain the knowledge where they are capable of working with a talented trade person, specifying plumbing and hardware for a luxury home. At this point, they are ready to make money for your operation, but you now need to protect your investment from burning out. The question you should be asking yourself now is “How can I find them more time to sell and at the same time, remove the annoying stuff?” Hire a full-time customer service person.

 

The main arguments against taking after-sales follow-up away from the salesperson people is that the salesperson wants to always service their customers and it strengthens the relationship. The client may also demand that they deal with their salesperson; this is the person they trust. So what to do?

 

The salesperson has to learn to trust that the company (and your brand) will them back them up and coddle their customers - their customers, your customers. Your sales professionals need to know that the company will service their customers no matter what the situation. The move to add a customer service person will help your brand expand its reach while allowing your best people to do what they do best. This process may take a bit of time, roughly 6 to 9 months, but when it is in place you will have a better company while probably adding even more to your bottom line.

 

If anyone - vendor, showroom or representative - is interested in chatting about this, please email me at jwvals@gmail.com.

Empathy Is Underrated

Bernadette Jiwy had another powerful blog post (The Story of Telling) this week evaluating the three most common selling techniques.

 

Describing features and benefits is the first and most commonly used sales approach.  "This cabinet box is made of plywood with an MDF door that comes in 125 different finishes and is guaranteed never to crack."  Focusing on features and benefits helps assure that customers understand what they are buying, how it works, what it does and how much it will cost.

 

Storytelling is a second common sales technique. Using case histories, testimonials and empirical examples help customers imagine what a new kitchen or bath might look and feel like in their home and how it will make them feel every time they cross the threshold.  Storytelling is an art and a powerful sales technique. The challenge for many showroom professionals in using storytelling is their approach.  Too often the focus is the mechanics of storytelling instead of the actual reasons for storytelling, Jiwy notes.  "Tell to sell" worked in the age when advertising was the primary means to get the word out.  Today, however, the primary reason you tell stories is to build trust with your customers.  If prospective customers are going to invest with you and your team, they need to believe that you are the best resource to deliver the kitchen or bath of their dreams.  You can earn trust through effective storytelling.

 

The third and "by far the most overlooked and under-utilized sales technique is to listen before pitching." Jiwy points out that it is far easier to sell something that customers want than it is to make customers want to buy something.   Savvy sales professionals know they can only sell something that customers want if they know what those wants are.  To understand and assess what your customers want, you need to actively listen and understand "the stories, frustrations, challenges and goals of your prospective customers."

Welcomed Thoughts from a Fellow (Jeff Valles) - Why Can’t We Work Together?

In the early 90’s I was working with the president of a fabrication company in Peoria, Illinios. We were discussing Phylrich’s part needs and how we might have to alter a few of his staples to fit into our product assembly system. Then, to my amazement, this gentleman projected his spreadsheet on the wall and listed his cost breakout on each part, then totaling each one including his overhead. I sat there stunned - I had never witnessed such vendor-buyer honesty. 

 

I then joined the “what-it-costs” game by opening our books to him about our cost to market. After a bit of jousting, we agreed on the prices and continued to work together for many years.

 

Later, when I asked him why he opened his books to me, he replied that his largest customer was Caterpillar and that is the way they had worked together for a long time. They had always been fair with each other. Put simply, it worked for both companies because they trusted each other. Now let’s turn to our beloved industry, where it seems we cannot share data between like-businesses.

 

A few years back, a DPHA member showroom asked roughly 20 other showrooms to share their costs, operations and income numbers with no branding company information. The data would be sent to a relative of theirs not associated with our industry at all, and they would crunch the data and then send each of us a dashboard showing where we were relative to the other participants. GREAT INFORMATION! As I recall though, only three showrooms shared data - three! A wonderful opportunity to learn that was thrown away.

 

This was a missed opportunity, both then and especially now. Our large competitors, real and perceived, have access to large amounts of data, and the technology to use it in order to improve all facets of their businesses. Most importantly, they use their data to take away our market share. The only time we seem to talk numbers is at the bar (my sales were $675,456,334,000 and we ran a gross profit of 62%). 

 

Unfortunately, I do not know of a magic potion to help us communicate more effectively, but we could all benefit so much by working together. I do not think our niche businesses can continue to provide the best products and services by standing alone in our individual markets. Going it alone will continue to be a very tough road. Can’t we just all get along?

 

If not now, when? 

 

If anyone, vendor, showroom or representative is interested in tackling this, please email me at jwvals@gmail.com. 

 

And by the way, that wonderful company in Peoria, Illinios? They donated the land under their first factory to the Peoria minor league baseball team, and then recently sold the business for a nice chunk of change.

Dealing With People Who Are Right 100% of the Time

You know the type. They are always right regardless of the issue, problem or solution. Dealing with these people can be especially frustrating in client situations. If your client wants to believe they know more about bath design than you do, it is only natural to scratch your head and ask yourself, "Why did they hire us?" A better approach though is to lend legitimacy to their opinions. "I can see where you are coming from. Have you considered x, y or z? What downsides, if any, have you considered with your approach?" This response tends to neutralize what otherwise could prove to be an intractable conversation.

 

Recognize that it is difficult for most people to overcome confirmation bias. Confirmation bias is the tendency to interpret information in a way that confirms someone's preconceptions even if there might be overwhelming evidence to the contrary. In other words, people want to believe what they want to believe regardless of what the facts say or what the evidence points to. 

 

The best way to deal with confirmation bias is to recognize it for what it is. Everyone's truth is their truth. That's why listening actively to what others are saying is critical. Active listening creates a comfort level that enables people to consider alternatives. Even if you believe that the other point of view is wrong, crazy or worse, never let them know that's how you feel. You may never be able to convince someone that their opinions or ideas are not accurate, but you can minimize the impact by not overreacting, acknowledging what others believe and then presenting possible alternatives to provide a common ground.

Welcomed Thoughts from a Fellow (Jeff Valles) - Hope Is Not a Strategy!

Your alluring showroom is targeted to captivate your market’s best architects, builders and designers. You know you display THE best product mix in the market.  Or do you operate more on the “gut feel approach” - “I hope the product I selected at ICFF will captivate my good clients?” Hope is a prayer, not a business strategy. Data added to your market knowledge increases your chances for a WOW product mix. Good data can only make your business better.

 

But where does this good data come from? How do I get it? How do I use it?

 

Let’s keep it simple and focus on which finishes are your foundation - those that are starting to trend up and maybe (if you have the space) a handful of classic styles in their most royal, garish look. If a finish is not selling, there is no need to waste the space. When that unique customer comes in looking for satin chrome, your team is talented enough to control the sale. A finish sample will work just fine.

 

What finishes do you actually sell, what is selling in your regional market and what is trending in New York, Los Angeles or Miami that you can show to keep your well-read trade professionals happy?

 

Step #1: What data do I need?

• Bathroom Fixtures: Simply look at lavatory faucet sales finish data.
• Bathroom Accessories: Every bathroom needs a paper holder, so focus there.
• Cabinet Hardware: With this category’s diversity, this total finish breakdown is best left to the wisdom of the crowds. Ask your top six cabinet hardware vendors for their finish sales in dollars and compare it to yours and get to it. Look for trends here. This segment is all over the place.
• Door Hardware: With the diversity of door hardware styles (really, no finish has a historical dominance), use the same process for Cabinet Hardware above, focusing on door knobs and levers, only.

 

Step #2: How do I collect the data?

• Download the last 18 months of sales data, filed as noted, from your database for each product category listed above.
• Contact your key vendors in each product category and ask them for their last 18 months sales reports by finish (filtered as noted above) in North America, your market only and New York, Los Angeles and Southern Florida. 

 

Step #3: Review the data:

• Walk your showroom and see what could be removed, changed and what needs to be added.
• Review the data with your sales purchasing teams. They all have their individual perception and seeing the actual sales data will help them see the market a bit clearer.

It is paramount that showrooms and vendors work together on this to present the most viable products to the trades and engaged homeowners. These are the people that specify and buy, so show them what they want to see, not what a vendor or showroom thinks might be “hot."

 

Finally DO NOT LEAVE THE SALES REPRESENTATIVE OUT OF THE LOOP. If they are guessing on what to present on their trade calls and miss the mark, vendors and showrooms lose.

 

Finally, all data is important and should be actively shared, reviewed and evaluated every six months. Why guess?

Respectfully Agree to Disagree

In the past, if the GM Board of Directors unanimously approved a decision on their first vote, the company's legendary Chairman, Alfred Sloan, would never accept the decision. Sloan believed that a board comprised of intelligent and monumentally successful captains of industry could never instantly agree on anything. He required opposing views, believing that better quality decisions result from honest disagreement.

Sloan’s belief is backed by considerable research. Ori and Rom Brafman write in their book, Sway: The Irresistible Pull of Irrational Behavior, group conformity is rarely good. Productive dissension leads to richer debate and better decision making. Playing the role of a devil’s advocate produces a healthier and more productive conversation, and forces leadership to evaluate different options, identify potential threats and make more intelligent decisions.

There is the other side of the coin, however. Some people like to disagree simply to be disagreeable and others don't like to be challenged regardless of how valid the opposing point of view might be. That's why the most effective leaders welcome opposing views, but demand that they are presented in a civil, gracious and dignified manner. The opposition should not be personal or mean-spirited. The goal should be to disagree respectfully, but ultimately support whatever decision is reached even if you don't believe it is the right thing to do.

Checking one’s ego at the door makes encouraging, and subsequently profiting from, opposing opinions possible. There’s a reason that there are written opposing and supporting positions for every Supreme Court decision. If you want to make better decisions, invite opposing points of view.

Welcomed Thoughts from a Fellow (Jeff Valles) - How Do You Forecast?

Today’s venture capital companies are constantly looking for new style trends and products to improve their portfolios and market shares. These businesses are managed by savvy entrepreneurs who constantly harvest the latest data and then add market knowledge to help them create and implement best strategies. Sounds like a good formula, right? Is this how your business works?

 

In our DPH world, each vendor and showroom has its unique ways of market testing, and the most popular process is each business’ perceived reality is intuition or gut feelings. You know it well; over a short period of time, a few showroom salespeople sell a job or two in a matte black finish. Then they frantically search for manufacturers that offer matte black finishes and run to management proclaiming “We absolutely have to have this on the sales floor NOW! This is getting really big! 

We all thought rose gold would be the next oil rubbed bronze. Well, we all know what happened with rose gold. Before adding new finishes or products, do you look at the showroom sales history and your product quote report? How about calling a handful of manufacturers and simply asking them for a “most popular finish report”, noting percentages with a 3 to 6-month percent change? Would that help? Why in the DPH world is DATA not the foundation for market evaluation, merchandising and forecasting?

 

I can hear the words ringing in my head - “I know what is going on in my business and my gut instincts have gotten me to where I am.” This is the way so many DPH showrooms and manufacturers have governed their business since the 1960’s. Granted, a lot of those businesses are still quite successful. However, would you invest in a business with intuition as its sole source of market research? 

 

Perceived reality plays a large part in all of our lives, but it should be based on solid business data, key vendor partners and monitoring popular style media. Understand that it takes time to dig through sales figures and quotes, as well as sharing vendor information and referencing 10 good style sources. But at the end of the day, don’t you want to have the right product on display at the right time? Don’t you want your customers to know your showroom is the place to see the popular, new and classic looks?

 

Suggested style emails subscriptions (they are FREE!):

• Design Milk
• Wallpaper Magazine
• Interior Design Homes
• Domino
• Introspective by 1stdibs

How Smart Brands Improve Customer Experience

There’s been volumes written about the need for brick-and-mortar retailers to enhance their customer experience.  Guess what?  Not many retailers have been up to the challenge.  Two recent research reports produced by Forrester and Nunwood found that in the last two to three years, across multiple industries, customer experience has barely changed.  In a recent Brainfluence podcast, Colin Shaw, CEO of Beyond Philosophy and author of four books on customer experience opined about why customer experience has not improved. 

Shaw explained that most organizations don’t understand what drives and/or destroys value in their businesses. One big reason is there is a huge difference between what customers say they want and what they actually do.  Shaw illustrated this point by pointing to Disney.  If you asked customers what they want to eat at Disney World, many would recommend adding a salad option. However, Disney knows that most people don’t eat salads when they go to Disney World - they eat hot dogs and hamburgers.

The danger, according to Shaw, is that people too often tend to focus on the obvious things such as price.  In all the research Shaw has performed for clients over the past two decades, he stated that price is never the key issue.  We suspect that this is also the case with decorative plumbing and hardware, because if price were the issue, your customers would be shopping at Lowes, Home Depot or some online discounter.  Just like theme park attendees who say they would like to eat salad, decorative plumbing and hardware customers who tell you that price is the main issue generally have not been convinced of the value of your offering and recommendations.  

Shaw also explained that the human touch drives value and very few brick-and-mortar retailers focus on that. However, those same retailers don’t believe that is the actual case.  When someone calls your showroom, can they speak to a human? When callers are put on hold, how long does it take to speak to someone who knows what they are talking about?  When someone enters your showroom for the first time, is there a standard operating procedure for welcoming them, goals set for the initial meeting and standardized processes for follow up?  

Think about your showroom and your competitors. Everyone claims to deliver exceptional customer service. What do you actually do for customers that your competitors do not?  What do you do to earn your customer’s trust that is distinctive or different?  What drives value for your showroom? What drives value for your customers?  Answer those questions accurately and you have the framework to truly deliver incredible customer experiences.

The Business Lessons of Jeff Bezos

Amazon founder Jeff Bezos related the timeless lessons he's learned for business success in a recent interview. The three big ideas are:

1. Think on a different timescale
2. Put the customer first
3. Always be inventing

Bezos stated that the three ideas go together. He related that thinking long term is essential because if you are continually inventing, you are going to experience more failure than success. A lot of inventions don't work - that's one reason why you need to constantly experiment. 

Bezos also recognizes that big things start out small. Inside Amazon, when a new business reaches some small milestone of sales, email messages go around and everybody's given virtual high fives for reaching that milestone. Bezos knows from past experiences that big things start small. The biggest oak starts from an acorn, and if you want to do anything new, you've got to be willing to let that acorn grow into a little sapling and then finally into a small tree and maybe one day it will be a big business on its own.

Step-by-step is another "absolute" Bezos/Amazon lesson. It recognizes that you can't skip steps. You have to put one foot in front of the other - things take time. There are no shortcuts, but you want to do those steps with passion and ferocity.

Love what you do. Recognize that not every day is going to be fun or easy. That's why it is called work. Bezos is passionate about Amazon. He thrives on the rate of change. He loves the fact that he gets to work with brilliant people who are focused on helping Amazon customers. He admits that there are things he does not enjoy doing, but at the end of the day, he believes that he is lucky to work alongside passionate people and asks, "why would I go sit on a beach?"

Making Better Data-Based Decisions

Big data seems to be all the rage. And how can you use big data to help your business? By ignoring it, at least initially, writes statistician Cassie Kozyrkov in a recent HBR blog. She advises that a key to more effective decision making is to frame the context of the decision before looking at the data. Doing so helps avoid confirmation bias and the Ikea effect. Confirmation bias influences decision making by using data to justify what you want to believe or “to selectively confirm the choice you have already made in your heart.”

The Ikea effect overvalues something because you have put a lot of effort into it. It’s the difference between good work and hard work. If you have invested time, resources and intellectual capital in a new venture, new line, new strategy development, etc., you tend to fall in love with the effort and the potential for a successful outcome. Because of your investment, your judgment becomes clouded and that generally results in bad decision making.

To overcome confirmation bias, set your decision criteria in advance. An example is to determine how much you would pay for a ticket to a concert without knowing how much the ticket actually costs. 

To avoid the potential pitfalls of the Ikea effect and confirmation bias, Kozyrkov advises framing the decision context in advance, starting with determining what you would do if you did not have additional data to evaluate. This is known as a default action.

Another way to look at the decision is to make a judgement call to determine the lesser of all evils, absent the information that will help you make a more informed decision. After determining your default position without access to any new information, determine how you are going to use the data before it arrives. What would the numbers have to say to make you change your position from your default action? To answer that question, Kozyrkov advises imagining various states of the world and identifying whether or not the default position you determined before the data showed up is right for each of them. This exercise allows you to create a metric that makes using the data more meaningful. The final piece of the puzzle is determining your tolerance for risk. After doing so, look at the numbers.

Educating Customers on Different Finishes, What to Expect and How to Care for Them, by Emma Coward (ProSource Supply), an Education Committee Member

The importance of managing homeowners' expectations of finish and maintenance.

 

When assisting in the selection process for faucets, door hardware and cabinet hardware, it’s imperative to consider both the finishes’ effect on the style of the space and the lifestyle of the homeowner. Some consumers expect their finishes to look exactly the same years after installation, while others prefer the old world look that living finishes can bring to a space. It is important to decipher which kind of homeowner you are working with prior to recommending the finishes that best fit their space.

Homeowners benefit significantly from having a basic understanding of the differing finish processes used for specific fixtures, and will then be able to determine if that will be a good fit for their lifestyle. This will also ensure that there has been ample communication on the care and maintenance required.

There are three main finishing processes: PVD (Physical Vapor Deposition), powder coating, and living finishes.

PVD finishes are the most durable, and require the least upkeep. This process forms a molecular bond to the fixture, which gives a hardened and highly durable finish. Products with a PVD finish will not corrode, discolor, or tarnish. PVD uses a variety of vacuum deposition methods. The fixtures go from a condensed phase, to a vapor phase, then finish with a thin film-condensing phase. This final film coating is then bonded to the solid brass or bronze body. It is still recommended that these fixtures be dried with a soft cloth after use to avoid water spotting.

The biggest enemy of all finishes is caustic cleaners. With the majority of homeowners using cleaning services, it is every showroom consultant's responsibility to impress upon their customers to NEVER use cleaners containing ammonia or bleach! Mild soap and water on a soft cloth is the preferred cleaning method for all PVD and powder coated finishes.

The powder coated process does not produce the same durability as a PVD finish. If treated properly though, they can maintain the same finish from the day they were installed. Today, the “Modern Farmhouse” trend has exploded in our market in the Southeast. Because of that, the flat black finish (a finish achieved by powder coating) has become a very popular option for every segment across faucets, lighting and door hardware.

Powder coated finishes are protected by a clear powder coating that shows the underlying finish. Powder coated finishes are susceptible to scratches and damage from harsh chemicals such as bleach and ammonia that can erode the top protective layer.

The most elusive of the finishing processes is the living finish. Depending on the core material - whether it be brass or bronze - will dictate how the finishes “patina." Generally, darker bronze finishes will lighten where fixtures are handled the most. Polished unlacquered finishes will cloud and darken across the entire fixture. Our market has seen a huge rise in polished unlacquered brass.

Thanks to their access of Pinterest and Houzz, homeowners can often have a misconception of how living finishes will age. It is our responsibility to inform them of the characteristics of living finishes. Water can also have an extreme effect on a living finish. Fixtures in a shower will age completely differently than the faucets and bath accessories in the same master bath. To protect and restore the original traits of these finishes, occasionally polish them with a polishing paste and then wipe with a soft cloth. To further protect the finish, apply a faucet wax.

Choosing the right finish can define a space, but in making that selection, it must also suit the homeowner’s lifestyle.

Has Luxury Lost Its Luster?

A sobering study of luxury consumers in Asia, North America and Europe found that wealthy consumers (i.e., Americans with average incomes in excess of $200,000) are no longer enamored with luxury.  Respondents seemingly have had enough luxury in their lives, evidenced by the fact that nearly 80% of the survey respondents said they are making fewer meaningful purchases. The current political and cultural environment, along with the growing gap in income disparity, are influencing wealthy consumers’ purchasing decisions.  Many wealthy consumers do not believe that now is the right time to purchase luxurious and conspicuously consumptive products.

Price is another deterrent to the wealthy's purchasing of luxury products.  Many affluent consumers do not believe that luxury brand pricing is worth it.  More than 67% of the respondents surveyed stated that many mass-produced brands offer a comparable level of quality to their luxury counterparts.  Another sobering statistic is that 53% of the consumers reported that they will only purchase luxury products when they are discounted. 

Historically, luxury products were associated with limited quantities, distribution and availability, and the highest quality materials and craftsmanship.  Traditional luxury brands that have expanded distribution and reduced quality are now paying the price for those decisions.  

There also has been a paradigm shift in the attitudes of luxury consumers.  They don’t need more things.  As Seth Godin noted, we no longer live in a world of scarcity where there was a need and desire to acquire more things.  Luxury consumers have enough things.  Luxury consumers live in a world of abundance where there is a scarcity of time and connection.  That’s a valuable lesson for decorative plumbing and hardware showrooms.  Luxury consumers are more interested in experiences than they are products.  That’s why savvy sales professionals and showrooms focus on how a new bathroom will make a customer feel and how it will contribute to a healthier and more enjoyable lifestyle.  Talking about features, benefits and product performance will not convince a luxury consumer to pay a premium for a product any more.

The Key To Retail Success

The headlines continue to feature retail meltdowns headlined by Sears, Toys R Us, Walgreen/Rite Aid, Gap, Mattress Firm and others.  Yet, online etailers are expanding their brick-and-mortar presence, most notably Amazon books and Amazon Go, Warby Parker, Bonobos, Caspar and others. What’s the key to brick-and-mortar success?  Data, finds a new study by Harvard Business Review and Snowflake Computing. Companies that make data-based decisions have the best chance to survive.  However, the study found that only five percent of retail and consumer packaged goods companies are considered data-driven.

Retailers across all spectrums understand that they need to obtain better insight into customer needs and expectations in order to speed up their decision making, and improve processes and cost efficiencies.  However, few companies with these stated goals are actually making progress in achieving them because they primarily do not believe they have the analytical abilities to change. The HBR/Snowflake Computing survey results were also mirrored by a Retail Systems Research July 2018 survey that found retail winners believe data is a strategic asset and critical to retail success.  

Not surprisingly, Amazon and other competitors encroaching on their market were cited as the top business challenges driving innovation according to the Retail Systems Research survey.  Other areas where data-driven retailers are out performing others are

• Operational efficiencies needed to fund customer initiatives
• Ability to meet rising customer expectations
• Investors demand for innovation
• Retailers with long term leases need to develop strategies to become more productive
• Other retailers moving more quickly