I Will Follow UpIn the 1960’s, Little Peggy March sang a hit song titled “I Will Follow Him1”. Its lyrics included “There isn’t an ocean too deep, a mountain so high it can keep me away.” While these days Peggy could be in trouble for stalking, there also might be a message in her song when it comesRead the Rest…
Posted by Brian Gracon PhD |
April 19th, 2013
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In the 1960’s, Little Peggy March sang a hit song titled “I Will Follow Him1”. Its lyrics included “There isn’t an ocean too deep, a mountain so high it can keep me away.” While these days Peggy could be in trouble for stalking, there also might be a message in her song when it comes to persistence in trying to increase our levels of repeat and referral business.
We know that repeat and referral business is good business. These customers come with built-in trust, are less expensive to attract and retain, and often buy more flooring at higher margins. But do we work hard enough at attracting repeat and referral customers, especially when you consider that their networks of family and friends are much larger than ever thanks to social media?
Over the years, I’ve heard salespeople give many reasons why they don’t follow up with customers. These reasons, and my reactions to them, include:
“It feels too pushy.”
-When you do your job professionally, you’re helping her satisfy her decorating dreams or solve her flooring problems. If she likes what you’ve done for her – after all, she did buy from you – why not give her an opportunity for even more happiness? The key is in how you ask.
“I’m too busy.”
-Really?
“I just sold her a new floor. No way she’ll want more now.”
-Are all of your jobs whole-house jobs? (She may be thinking now about when to do the rest of the floors.)
-Does she have family or friends who might want new flooring after they have seen her new floors?
“Why should I? It’s just a chance for customers to complain about their new floor or anything else wrong in their lives.”
-First of all, if there is a problem with the floor, you can become her hero if you fix it, probably earning future business.
-Secondly, because the large majority of your customers are happy with their new floor, the math says you might be missing many opportunities for the next sale because you’re afraid of the rare customer who is unhappy.
“I don’t know how to ask.”
-We can do something about that – see the rest of this blog.
A follow-up call (or email or text – depending on your customer’s preference) should be:
(a) Accurate (get her name right, the rooms she redid and the products she purchased);
(b) Timely (during, or within a few days after, the install); and
(c) A reminder of the good things you did for her.
You can use the following formula to improve your results when you follow up with customers:
1. Give a remind(h)er: for example, “Mrs. Jones, thank you for letting us help you with the new flooring in your home. Now that you’ve experienced our …” (fill in the reasons why she bought from you and your store).
2. Add the personal, emotional, pampering and self-image benefits of her new flooring, in a MecessionSM way (as suggested in my October, 2012 SURFACES Floor-1-1 article, Recession or MecessionSM?, available at http://www.surfaces.com/preview/ind/in-the-spotlight-brian-gracon-oct-2012.aspx).
3. Ask for the order or referral.
When you follow up and use this formula, the repeat business ocean won’t seem quite so deep, the referrals mountain won’t seem quite so high, and your repeat and referral business should increase!
1 I Will Follow Him, English Lyrics by Norman Gimbel and Arthur Altman, Original Lyrics by Jacques Plante, Music by J.W. Stole and Del Roma
MecessionSM is a service mark of Brian Gracon & Associates, Inc. All rights reserved.
Brian Gracon is a leading trainer in the flooring industry, for “Training that gets result$SM”. Brian is a frequent contributor to the SURFACES | StonExpo/Marmomacc Americas education program and blog. He develops custom training programs for clients, including how to leverage MecessionSM strategies and techniques to improve marketing and sales results. To follow up with Brian, you can contact him at graconassociates@etcmail.com or 404-771-3405.
Want your customers to buy? They have got to want it first.A year ago, I decided to take the certification course to become a Personal Trainer. My reasoning? I love being in good shape, feeling healthy and being in the gym. Why not learn more about something I love? I wasn’t sure I wanted to train anyone but I was curious. Besides, I’ve listened to trainers talk about how hard it is to get customers—it appears that no one wants to get fit. When I was taking the training at Hudson Valley Community College, I asked the teacher if I might talk about sales and customer service; I told her I would give everyone a copy of my book Red Hot Customer Service as a gift for listening. I thought she would be hesitant but she thought it was a great idea. By the way Nadia Ellis, the instructor from Personal Training Institute of America, was extremely positive and made us all feel like we were all doing something meaningful. Personal training is a mutual partnership–shared goals and shared values. My first statement, “You probably want this more than the customer does; that’s not good.” Here are my thoughts. Most people look for a Personal Trainer when the doctor says they need to get fit or die, or they’ve gained so much weight they’re considering taping their mouth shut. Most people don’t get off on smelly gyms and sweaty people. Not everyone is excited to get fit. Does that mean we’re selling a product that no one wants? Actually, many people “want to want it.” They’re just not sure why. Consider they’re not buying personal training. They’re buying a new lifestyle, new friends and you. You are their hero. If you can connect with them, your product makes sense. They’re also trying to figure out why they want it. That’s called getting motivated. Today while in The Home Depot, I saw a woman with a stunning haircut; I told her it was beautiful. Of course, I asked who cut your hair. I asked her to turn around so I could see the back of her hair. I know I have a new friend. As we talked, she said, “I notice you have workout clothes on, where do you work out?” (I didn’t answer the question but asked why she was interested.) In sales, he who answers the questions is no longer in control. “She said I’m looking for a gym closer to home, so I can continue working out. My last gym was just too far, and I miss it.” I then asked, “Tell me what you like to do—you look like you’re in good shape.” She went on to explain what she’s tried and her concerns. I said I understood her concerns, and they were all valid. The more questions she asked, the more I validated and the more she talked. Eventually, she asked how I knew so much, and I told her I was a Personal Trainer. She said she felt she had hit pay dirt, someone who understood her. She then asked if I was for hire, and I told her only to people who really understood the value of taking care of their bodies and staying in shape. “I don’t want to care more about getting in shape than my customer,” I said. “You probably realize that it takes time, effort and commitment. It doesn’t happen overnight. Personally, I had to take several classes before I knew what was best for me.” “I care about all those things, she said, and I know it takes time. What do you think would work for me? By the way, can I hire you?” “Only if you’re sure you want to work hard, “I replied. “Could we try it?” she asked. “Sounds good to me,” I said smiling. “I’m so glad you asked me about my hair.” Sales rules:
My mother sure would be happy to know that I did something with my degree in Psychology and Physical Education. Lisbeth Calandrino helps businesses built loyal relationships with their customers through customer service training and social media marketing. She can be reached at redhotcustomerservice@nycap.rr.com. This blog was reprinted with permission from: http://blog.timesunion.com/success/.
Posted by Lisbeth Calandrino |
March 18th, 2013
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SURFACES is Never the Same Old ThingI’ve been speaking at SURFACES for about 20 years. When the time approaches, I have a moment of conflicting feelings. I think it has more to do with the walking and stone floors than anything else. Before the show, I go to my favorite shoe store seeking the ultimate in comfortable shoes. (I never buy anything; I just put on my heels and brave it.) Once I get to Vegas and step off the plane the excitement starts. What’s there not to like about Vegas? I look at the seminar schedule; think about old friends and everything changes. I become energized again. I started thinking, what is exciting about a trade show? Most of us live in our own world, surrounded by people like ourselves with the same thought patterns. It’s called being in our comfort zone. In many ways, attending SURFACES is a chance to get out of my comfort zone—that’s why I love it. Where else do you have an opportunity to learn what’s new in your industry? What’s new not only in the United States but around the world? It seems like SURFACES becomes more international every year. I love seeing what products other countries are producing and how they are marketing them. The educational experience is top notch; with speakers from around the continent, industry experts and others from outside the industry. I try to spend time listening to my friends speak—I know what it takes to prepare a speech and I’m always impressed with everyone’s commitment. I also want them to know I support their efforts and want to learn from them. Color and fashion trends are always fun. Our industry has become very fashion conscious over the past 10 years and there are always several seminars involving color trends and showroom innovations. I love to talk with the product designers and get their take on ‘what’s hot.’ This year emerald green made it to the top; I saw lots of it being worn by the designers. Every year there is new technology pertinent to our industry. I don’t purchase cutting or polishing machines but it’s always nice to know that our industry continues to move forward. The beauty of the flooring installations at the various booths also reminds me of the talent that is associated with the trade. Here is another industry that continues to grow and become more professional every year. There’s always someone with a new business, a new connection and possibility for collaboration. What could be better than that? And last but of course not least, it’s wonderful to see old friends, catch up on their lives and professional pursuits. This year my friend Caren McCabe convinced me to go to RM Seafood at Mandalay Bay and try some of their amazing food. The owner, Rick Moonen happened to be there and came over to talk with us. It turns out that Mr. Moonen, was the Sous Chef de Cuisine under Chef at the Dutch Hearth Inn ; a famous but now closed restaurant in Hillsdale, New York. At the time I lived 10 minutes from the restaurant and ate there often. Like RM Seafood, it was known for its unusual and interesting cuisine. Maybe before I attend SURFACES next year, I’ll reread this and remind myself why I love this trip to Vegas.
Posted by Lisbeth Calandrino |
March 7th, 2013
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Be Better Than Your Competition in 2013!It’s time to be optimistic. The most recent housing statistics reflect substantial growth across all sectors including housing permits, single family and multi-family housing starts, and existing home sales. 2013 will be a good year for those who prepare. So how do you prepare? The very best way is to prepare is to attend SURFACES│StonExpo/Marmomacc Americas for new competitive advantages: new products, new points of view, market intelligence and creative marketing strategies. It’s not too late to attend and to formulate how you can be better than your competition in 2013. Perhaps you recall a column I wrote for Floor Covering Weekly titled “Who Wants You Stupid?” The issue remains. Trust no one who doesn’t demand that you attend SURFACES│StonExpo/Marmomacc Americas. Why? The first answer is product innovations and introductions that you won’t see unless you attend an international show. Part of preparing for 2013 includes fresh products and colors. The second is intelligence. The best minds in the flooring, housing and design industries are attending and speaking at SURFACES│StonExpo/Marmomacc Americas. The third is bandwidth; keeping your ear to the ground for a broader understanding of the marketplace. Some may tell you that attending a supplier or a buying group meeting is enough. It’s not. Not that you can’t depend on your suppliers or buying group. It is that you must not abdicate your most important responsibilities to anyone else. The last six years have been devastating for the floor covering industry. I know it’s easy to become discouraged. But I’ve never been more optimistic than I am today. In the last 75 days I’ve keynoted conventions throughout the United States, Europe and South America. Despite our differences on the economy, leadership, healthcare and guns, we remain the most respected and powerful nation in the world. People are still risking everything to become Americans. Why? Because we have a reputation for being the best at whatever we choose to do. SURFACES│StonExpo/Marmomacc Americas is your opportunity to be the best at what you do. It’s not too late to attend; airline tickets are still reasonable and the room rates are remarkably low. I’m giving two presentations and I’ll be around the Floor Covering Weekly booth too. Please come see me. Let’s all make 2013 our best year ever. Regards, Christopher P. Ramey Affluent Insights
Posted by Chris Ramey |
January 23rd, 2013
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It’s Not As Easy As 1-2-3!I once had a golf instructor who said that putting was as easy as 1-2-3. Read the green, line up the putt, and hit the ball with the right pace on that line. If you’ve ever seen my putting, you’d know it just goes to prove that in some things the process may seem simple but execution is a whole ‘nother matter! With fewer customers than years ago, execution by your sales staff is more critical than ever. In fact, it might be the difference between your business’s survival and … well, you know the alternative. That brings us to three key steps in maximizing your staff’s contributions to your business and ways you can execute those three steps. Proper execution, and integration, of these three steps will align your staff with your business direction and goals, for improved results. The first step is training. What is your staff able to do, and how well? Is that what they need to deliver the results you need? In a recent Surfaces blog “Don’t Miss The Train(ing)!”, I wrote about key questions you can use to evaluate training before you invest in it, so you can select the right training for your staff and get the right business results. The second key step is coaching your staff. Not penalizing, or berating, or lecturing, or firing – but coaching. Merriam-Webster defines the verb “coach” as “to instruct, direct or prompt”. Your coaching should include:
(Answers to the questions from the first step on evaluating training will help you know what specific things they should be doing, so you can monitor and then coach your staff appropriately.) The third step includes hiring the right people, given:
You can then develop and compare a customer needs profile to a staff skills profile, developing a model of additional skills needed on your staff. You’ll know what to look for, and what questions to ask, during interviews to complement your staff. So, it’s not as easy as 1-2-3, but it sure is important! Using these three steps will help you maximize your staff’s contributions to your business by making sure you have an integrated staffing strategy and methods that are aligned with your business direction and goals. For more detail, techniques and tools you can use to execute these three steps, please attend my Surfaces 2013 seminar “I’m Their Leader! Which Way Did They Go?” on Monday, January 28. Brian Gracon is a leading trainer in the flooring industry, for “Training that gets result$SM”. Brian will provide more detail on these concepts, techniques and tools you can use during his Surfaces | StonExpo Marmomacc Americas Education Program “I’m Their Leader! Which Way Did They Go?”, session MO06A, Monday, January 28, 2013, at 11:00a.m. You can contact Brian at graconassociates@etcmail.com or 404-771-3405.
Posted by Brian Gracon PhD |
January 14th, 2013
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Case Studies in Natural Stone Restoration and Maintenance: We made the mistakes so you won’t have toI started in the stone restoration business in 2009. I’m a newbie; I know. On top of that, I am a woman, and a diminutive five feet, not exactly the type of person you are likely to meet in this business. Nevertheless, I like the challenge of being an underdog in the stone industry. But that means I need to learn faster, work harder, and be confident in the lessons I have learned over the past three years. The only way I can speed up this learning process is by observing first-hand how to deal with customers and watching our crews restoring a variety of surfaces. Best of all, I get to learn straight from the source, the owner of International Stoneworks, Rawi Tabbah (Yes, that is my dad, but during the work week, he is my boss and mentor). There is just no substitution for learning in the field. The best lessons I have learned are by reviewing our jobs on a case-by-case basis. Most jobs, I am happy to report, are quite successful. We were able to restore the customer’s marble, travertine, granite, terrazzo surface beautifully and now the customer wants a maintenance plan! These jobs are mostly successful because Rawi has 30 years of experience under his belt. He can usually tell what a customer wants even without the customer voicing the problem. Some jobs are not always successful, as with any business, but those cases I find the most interesting. What went wrong? Did the customer have a different expectation than what we could provide? What could we have done to rectify this situation? When the customer says “cleaning,” does he mean honing, polishing, sealing or does he really mean just cleaning? One recent job was “cleaning” unfilled travertine walls. However, what the customer really needed was cleaning and grinding to remove saw marks. We still bid for the cleaning job and began our work. Of course the customer was not satisfied with just the cleaning. Furthermore, he was not happy with the residue in the travertine holes, even though we put in our contract that we would not be able to remove all residues from the voids. We ended up having to do much more detail cleaning and had to grind the wall with diamond discs. Bad news is, we did not profit much from this job. On the other hand, the customer appreciated that we did not attempt to re-negotiate the contract. A few months later, our good deed was rewarded: the client awarded us a new contract (without bidding) to fill all the voids in the same travertine walls! During the 2013 SURFACES│StonExpo/Marmomacc Americas, Rawi along with Joseph Salvo of Miracle Sealants, will be presenting “Case Studies in Natural Stone Restoration and Maintenance.” I realize I may be a bit biased because it is my company AND it is my dad (and boss), but this course really is one of a kind. They are essentially teaching the knowledge they have learned in the field over the years and imparting it to their class. It’s as if your best friend takes an exam before you and then gives you all the answers. Whether you are a rookie like me or a stone restoration industry veteran, it is knowledge and experience from the field that allows us to grow as professionals.
Posted by Jacqueline Tabbah |
December 19th, 2012
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How Many Tweets Does it Take to Shorten Your Sales Cycle?Did you tweet this week? Have you checked your Facebook page lately? Are you using LinkedIn for business? If you have done any of these, you might want to consider social media to help you sell. Here’s how one sales executive uses social media to shorten her sales cycle. Why social media? Allison McDougall is a sales executive in the translation industry. The company she represents, Lionbridge Technologies, Inc., is a leading translation company partnering with Fortune 500 companies to assist them with their global communication needs. Social media became important to McDougall because she noticed her clients were becoming more mobile, busier and working outside the 8 to 5 workday. It became more challenging to connect with clients in the face-to-face and one-on-one environment that salespeople preferred. She could have hired an inside sales staff, an advertising agency or a telemarketing company to reach customers. Instead, social media offered a more personal alternative. Start here. McDougall started small. She started with a Twitter account. With Twitter, McDougall followed her competitors, prospects, and key clients. In turn, they started following her. The practice of mutual following lended itself to more personal communication. After using Twitter, McDougall linked content to LinkedIn and Facebook, and applicable discussion groups on each. McDougall advises that when using Twitter it’s important to respect confidentiality both for the employer as well as the client. All employees at Lionbridge can use Twitter as long as they adhere to the social media policy set by the legal and executive team. Have something to say. Content is important when using social media. McDougall says, “Tweet valuable content that your target audience will value and can learn from. Make sure it’s not promotional. Rich media, like video clips, keeps your message interesting and fresh.” Lionbridge also serves the Legal services market. Each month, Lionbridge produces a 10- minute video series that features experts in the legal field. It’s conversational and informative where participants discuss a hot topic in the legal industry. The team tweets the interview with corresponding links. The team will also strategically tweet and retweet blog posts if someone in the law firm has written a post in response to the video. Get it right. Frequency of tweets is also important. McDougall notes that she can see the usage increase among her community as people from different global time zones come to work. People have become accustomed to checking Twitter like their email inbox. McDougall thinks that’s a prime time to tweet. McDougall says, “Consider who you are trying to reach. You don’t want your message to get lost in the crowd.” She recommends three tweets a day spread throughout the course of the day with relevant content. That’s the most challenging part. She adds, “If you have an endless supply of content without a shelf life then you can spread your communication over several days, or weeks.” Some sensible advice is that you shouldn’t tweet if you don’t have relevant content. She has one regret about using social media. It’s that she considers herself a late adopter and wishes that she had started earlier. She certainly has made up the time. McDougall says that social media has shortened her sales cycle by helping position Lionbridge as the thought leader in her industry. She says, “People know who we are, and who I am, before we actually meet with them.” Now that’s something to tweet about. Maura Schreier-Fleming, founder of BestatSelling.com, works with business and sales professionals so they can sell more and be more productive at work. She wrote Monday Morning Sales Tips and Real-World Selling. Maura is a Dallas based speaker and sales consultant. She can be reached at 972 380 0200. Best@Selling Maura@Bestatselling.com Author of Real-World Selling for Out-of-this-World Results and Monday Morning Sales Tips
Posted by Maura Schreier-Fleming |
December 6th, 2012
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Working a Trade Show Booth: How to Get the Most out of SURFACES|StonExpo/Marmomacc AmericasI have been to many trade shows, and I’m amazed at how few people really know how to connect. The name of the game is to do business, but you can’t do business if you don’t know how to make friends. All of us do business with people we know and trust but how can I trust you if all I get is your business card! What do I do with business cards? I toss a good number of them especially if I can’t remember the person. Here’s the scoop, the attendees know you want to sell to them but getting to know them will put them at ease and help them open up. Not everyone is an immediate sale but why turn a potential customer off? Brush up on your small talk. Too many people spend time trying to showcase products rather than showcasing themselves. Smile and be welcoming. Ask people how they’re doing and how they’re marketing their business. Everyone is in the same boat as we say, and that’s needing customers. Put away your smart phone and schedule time out of the show to get your mail and make your calls. Also limit conversations at your booth with co-workers. Brush up on your social media skills. Saying you don’t do Facebook makes you sound old, antiquated and out of touch. Take a photo with your prospect, upload it to Facebook. This way you’ll remember who they are. Can you help potential customers do more business? Business is being done through partnerships these days—be a good partner. Learn about my business and help me succeed, remember business is tough. Stop telling, selling and start listening. Are you the kind that never asks questions and keeps on selling? Ask me how your product will get customers in my door. Without customers I don’t need anyone’s product. Don’t turn down the press. Take advantage of the press, they’re on your side. Maybe they would appreciate a blog or a video testimonial from you about the show. Ask how you can stay in touch; can you like their Facebook page? Don’t take my photo! People often say, ‘I hate my picture,’ don’t take it. Frankly, this statement sounds ridiculous at our age. Take care of yourself; look good and look for opportunities to be on camera. See if some of your customers will do a video testimonial for your Facebook page. It’s your party. Make small talk with people, ask questions and listen. Make all your customers feel important. Ask about my show goals. I never forgot the vendor who gave me a place to sit and charge my cell phone. I actually gave them some Twitter love. Have some great giveaways. Candy is okay but everyone is watching their weight and cholesterol. Everyone is probably dying for a bottle of water or something cold to drink. Like everyone who shows up even if you don’t! Pay attention to your guests and give them more than they expect. Don’t make snap judgments about potential customers. Salespeople have a tendency to size up customers, decide who’s good and ignore the rest. By asking questions and getting to know people you will build deeper relationships. Don’t forget to stay in touch after the show. This is the time to have a good video email program or an online direct mail program. Take photos with your prospective customer, and either send them a video with a note or a card with the photo. The follow up phone call is necessary but a card with the customer’s photo on it is even cooler. Remember the old saying, ‘consistency is better than good salesmanship.’ P.S. Join us at our booth to charge your cell phone and have a seat! Lisbeth Calandrino, Associate Publisher, Fabulous Floors Magazine, Booth S6506 Lisbeth will share more of her pearls of wisdom during these educational sessions at SURFACES|StonExpo/Marmomacc Americas: How to Provide Killer Customer Service that Will Impact Your Bottom Line at 1:00pm and What Is Fueling Your Customer to Buy? – The Latest Research on Consumer Buying Habits at 4:00pm, both on Tuesday, January 29th. By registering by this Thursday, November 29, you can save more than 50% on Exhibits Only registration plus add Education to your registration at NO ADDITIONAL COST! Click here to register.
Posted by Lisbeth Calandrino |
November 28th, 2012
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Don’t Miss The Train(ing)!Are you tired of ineffective, boring training? Training that was a waste of time, or close to it. Maybe it was too generic, or dull, or a long lecture. Maybe it didn’t address the needs you have or it served the trainer’s business more than it served your business. Maybe you’ve even given up on training because of bad experiences. If so, you could be missing the train(ing). Wouldn’t it be great if there was a way to evaluate training before you spent time in it, so the training you received did deliver results? Well, it turns out there is. This Surfaces blog will help you understand a method you can use to evaluate training programs to make sure you choose well and get results. There are four key questions you should ask a trainer before deciding to take the training. Ask: What have the results been from this training? Training is worthwhile only if it leads to results. Are people who had the training using the training on the job? More importantly, what have the business results been from the training? Has it led to larger tickets, higher prices or margins, higher profits, etc. for retailers who went through the training? The more the trainer can talk about demonstrated skills usage and business results, the more useful the training is likely to be. Ask: Is it really training, or just a lecture? Many “training” programs tell you a lot of things, but aren’t really training. Can you imagine a football team getting ready for a big game by sitting in meeting rooms being told about the new plays by coaches, but then going into the game without ever getting a chance to practice the plays? But that’s what a lot of training is like – the trainer tells your staff things but they never get a chance to practice. For example, it’s one thing to hear about a new hardwood finish, but good training also helps you practice when and how to tell a customer about it in a way she’ll understand and that benefits her. So, ask trainers what they do in the training to give your staff a chance to apply and practice the new skills, with feedback. That way, your staff won’t end up practicing on real customers! Ask: What specifically will the training deliver, and is that what your staff needs? What exactly will your staff be able to do because of this training? The more specific and the more action or skill-oriented the training, the better the results are likely to be. How well will your staff be able to do those things? What is the performance standard for the training (for example, a closing rate improvement)? Is that what your staff needs and is it good enough for you? Ask: What will make the training “stick”? Training research has shown that the three most important things that determine if people remember and use training are what the boss says and does before the training, the design of the training, and what the boss says and does after the training. Ask the trainer about getting their help promoting the training before the fact, and ask about any follow-up plans that are part of the training. You can use these four questions to evaluate training before you invest time and energy into it. You’ll be able to select training that will use your time well and deliver results for your business. That way, you won’t miss the train(ing).
Brian Gracon is a leading trainer in the flooring industry, for “Training that gets result$SM”. You can contact Brian at graconassociates@etcmail.com or 404-771-3405. Brian will provide more detail on these concepts, and tools you can use, during his SURFACES|StonExpo/Marmomacc Americas Education Program “I’m Their Leader! Which Way Did They Go?”, session MO06A, Monday, January 28, 2013, at 11:00a.m. Register before November 29th to receive complimentary Education registration with the cost of Exhibits Only registration. To register, visit www.surfaces.com or www.stonexpo.com.
Posted by Brian Gracon PhD |
November 19th, 2012
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Cash is KingTimes are tough, although there have been hints of improvement. A recent article in Floor Covering News about the NFA, an elite retail group where qualification of entrance is a yearly sales volume of $10,000,000 or more, states that most members are up double digits over last year. My wife, Tara, who owns a Big Bobs franchise, is experiencing the same results. However, few retailers have matched the results of a few years ago which means in many cases, cash is a spare commodity. Early on in my career as a consultant before I morphed into a speaker/educator, I visited many flooring stores on a professional basis. What I found were many retailers who were making decent profits, but couldn’t pay their bills because of 50k, 60k and more in accounts receivable. As a retailer who didn’t bill residential customers, I found this practice that most flooring retailers ascribed to bordering on the absurd. For instance, I know that as a customer, if I walk into Macy’s and walk out with a suit without opening a charge or paying for it, that would lead to my arrest. Customers expect to pay for merchandise. How we, as an industry, arrived at this weird place astounds me. Possibly the only slight difference is that many of our products require installation. Fine, I thought, so why not have the customer pay for the materials up front and pay for labor upon installation? As a young (23 YEAR old) retailer, I had zero cash when I first opened a business (How? is an entrepreneurial story). Not knowing any better, I asked for payment up front. Guess what? No one objected and this was in a sophisticated hard shopping New York City suburb. If you’re from California, I know this is against some kooky law, so please refrain from commenting. Other kooky laws have you paying $6 for gas. Later on in my career as a retailer, I instituted the same procedure in what was then a chain of six stores. For thirteen years we had no accounts receivable. We even got paid for materials on contract work. In casual talks with other retailers, it was obvious they were incredulous. I and another large dealer presented the idea of getting paid for materials up front for commercial work in a contract seminar in Chicago. Most of the audience obviously believed it couldn’t be done. “How?” they demanded to know. Both of us answered in tandem, “We asked!” I go over this in some detail in my on line discussion groups and get the same objections. There is a syndrome among retailers that: “If I can’t do it, it can’t be done!” This is a self-defeating attitude. My wife, Tara, operates in the same fashion. In fact, in today’s economy, people who are buying flooring have the money and are feeling pretty confident, so they are just as willing to pay for material up front as before the recession. With business slow, think about how useful it would be to receive your money right away rather than having all that money tied up in receivables. Cash is King! More information on this and other unique ways of merchandising, advertising, hiring, training, showroom design and other things you can do to separate yourself from the competition will be discussed in my session: Unleashing Your Potential! on Monday, January 28, 2013 @ 11am at SURFACES|StonExpo/Marmomacc Americas 2013. Registration is open now at www.surfaces.com.
Posted by Warren Tyler |
November 12th, 2012
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