Letters to the Editor

By Furniture Today Staff -- Furniture Today, April 14, 2002

The good and bad of TV coverage

Dear Mr. Wald,

The leadership of the National Home Furnishings Assn. is pleased the "Today" show highlighted furniture in a recent segment. The membership of our association comprises 2,500 retail home furnishings companies representing approximately 10,000 stores in all 50 states. We are pleased about the exposure of the products our members sell, because many people do not fully realize the positive effect that a beautiful home, appointed with comfortable, fashionable furniture, has on their lives. Most people spend a lot more time at home than anywhere else, and yet, many do not invest the time and money to make their homes as attractive, pleasant and comfortable as they can be.

We were pleased about the attention brought to furniture, but we were disappointed the coverage focused on North Carolina outlets. Every town and city in all 50 states has one or more local home furnishings stores that provide quality products and exceptional service to their customers. We should not overlook the fact that these local retailers lend financial and personal support to the communities where they do business, and we believe that they offer great value and prices for their customers.

Our association gathers statistics from all areas of the country, and we are well aware of the average markup on furniture. Of course, each individual company decides its pricing policies. Our figures indicate that if stores are truly discounting their furniture 40, 50, 60 or 75 percent off, they probably will not be in business long because these discounts far exceed the average markup. We think that if you were to shop at five or six stores for the same piece of furniture, you would find the prices at each store to be competitive in the marketplace.

Your segment did not mention additional interstate delivery charges from North Carolina or about how merchandise would be serviced by an out-of-state source in case of damage or other problems. Both of these can represent considerable additional costs and time to the purchaser. With a local retailer, shipping is included, up front, in the price of the furniture, not as an additional charge. In case of problems, the local retailer is available to take care of matters promptly. Most often, local retailers inspect the merchandise and polish it before it is delivered to the customer.

Most people are not looking just for furniture; they are looking for a beautiful home and comfortable environment. They often visit a store from two to five times to find exactly the right combination that works for them. This can be very difficult to do locally, let alone from hundreds of miles away. Many store salespeople have some training in design, style and colors and can be of tremendous help to their customers.

It is true that many manufacturers do have outlet stores. However, we don't know of one reputable manufacturer that puts first-line furniture (to be sold at a discount) in their outlet stores. They do put furniture that has been shipped back and repaired, furniture that cannot be sold as first line and, of course, furniture lines that are discontinued. All of it is great furniture at a great price.

We encourage you to plan additional segments on the value and desirability of home furnishings, spotlighting local retailers as the source for them. There are other fine associations that also can provide assistance and information, like the American Furniture Manufacturers Assn.

We would be pleased to provide you with assistance and information to help consumers make the right furniture choices and get great value for their money in their local communities.

Sincerely,

Howard Haimsohn, president

Steve DeHaan, executive vice president

A strong, unified voice would help

I remember Ray Allegrezza suggesting that all the industry groups unite at Furniture/Today's Leadership Conference. Your point is smart and well made.

As a maker of antique reproduction furniture, we don't belong to any of the industry groups — can't see where we would receive any value for our membership. We would certainly join a unified industry association. Unity would require several brave and unselfish acts. Hopefully, the current groups can put the interest of their constituents (and the industry) ahead of their own personal interests and merge. A strong, unified voice would help the industry.

Here's a name for the new group: American Home & Habitat Assn. For an industry that loves acronyms, this is a good one: AHHA (ah ha!). My suggested slogan: Home Beautiful Home.

Gat Caperton, Tom Seely Furniture, Berkeley Springs, W.V.

Home show needed support, and got none

My interest in Ray Allegrezza's column about promoting our industry is huge ("Would a unified voice stimulate more business?" Feb. 25, page 39).

Some six years ago, the Metropolitan Furnishings Assn. of New Jersey embarked upon a program to promote our livelihood, the furniture industry. We perceived that the consumer's discretionary income was being wooed by the auto industry and the boating industry (among others) not only in advertising but particularly in shows. So we did one of our own.

We rented more than 100,000 square feet in the New Jersey Exposition Center. Through our member stores we presented product in all style periods and price points, from Danish modern to true imported French antiques, from promotional to premium, all presented in room settings, right down to window and wall treatments. It was really something of which to be proud.

The "majors" didn't need us. They had multiple outlets for the consumer to see their goods. Our independents had a great show, exposing their products to consumers outside their normal trading area, writing new business and attracting a new customer base. The effort our independent retailers had to make in order to move, set up, sell, remove and still maintain their stores was super. The cost was much too high.

We looked for help. The Home Furnishings Council arranged for an appearance by Joy Philbin. It was terrific. We contacted most of the associations mentioned in Ray's column, and had the retailers contact the manufacturers of the furniture they were displaying. We needed support, and got none.

We were told that if they gave to us, they would have to give to all. That may be true, but it sure is shortsighted. We could see furniture expositions held nationwide, even leading to a Furniture Month. Ah. well, we did get some coverage and support in Furniture/Today by David Perry, and you printed a letter to the editor which I wrote about the lack of support.

Today, the show has merged with a traditional home show and is only attractive to the more aggressive merchants. It is no longer a presentation of what our industry is about. What a missed opportunity.

Alan B. Granetz, executive director MFA of N.J., Somerville, N.J.

Causey's shopping tips are an affront

As a third-generation owner of a high-end local furniture store in central Virginia, I have always felt like I provided a service to our community.

As the dot-com industry and other firms come and go, we have been here for 75 years, employing 10 to 15 people, providing service, standing behind our products and trying to do the right thing for all our customers. We also give daily discounts of 25% to 50% off suggested retail. I think we are typical of stores representing our industry.

I personally view the "Today" show segment featuring Kimberly Causey giving her furniture buying tips as an affront to our industry that demands a strong response. Most of what she states is a blatant lie and cannot go unchallenged.

Purchasing furniture is not easy and there is service involved. We need to get credit for that.

It's also time for manufacturers to stand up and help out. Too many manufacturers want it both ways. They want the showroom and service local stores provide, but the volume, they think, comes from big discounters. It's called redistribution of sales, not additional sales.

Greg Hamm, president and owner, Gilmore, Hamm & Snyder, Charlottesville, Va.

Engel's Kmart column irresponsible

Clint Engel's column (Feb. 4) depicting Kmart as a higher-priced store to shop than Wal-Mart is untrue as well as irresponsible, and certainly not based on any research performed by him. An excellent example: Thanksgiving 2001, Wal-Mart featured a DVD for $74.95 while Kmart's was $69.95, and Kmart could furnish many such examples. A man as knowledgeable as Engel regarding retail understands that no one retailer provides the lowest price on all items all the time.

Kmart does some $37 billion per year in sales, and while there are some financial issues, there are many satisfied customers, and I doubt whether a single pair of pants Engel purchased and wasn't satisfied with is sufficient documentation to base a premise on and to chastise a company for.

Engel's column is not only irresponsible, but he never has written an article prior to the Kmart bankruptcy advising your readers in advance of how he justified his position on Kmart. All he has done is jump on a bandwagon — a hollow one at that.

One last thing: writers are not that different than retailers. Even though Engel personally has not won a Pulitzer Prize for literature, I am sure he feels that there is a place for him in the industry.

Barry Spitzer, president, Planet 3

Planet 3 is an importer that does business with Kmart and other retailers.

Mfrs. should back private-label efforts

I am writing in response to your front-page article about shopping tips to purchase furniture ("TV show's discount shopping tips rile industry," March 11). I did not see the segment on NBC's "Today" show, but from what I read in your article, the show was quite damaging to the industry.

Maybe this could be a wakeup call to manufacturers to start supplying retailers with private-label catalogs, so this shopping online or through 800 numbers can be prevented.

I have been trying for many years to have the fabric industry do the same. I recently made a stand with my fabric suppliers, demanding private-label samples, or that their reps come in to cover my samples with my logo paper.

The situation in the furniture industry is no different than what Schumacher went through years ago with a lawsuit to protect their wallpaper retailers from the 800-number suppliers found in the back of the decorating publications like House Beautiful.

The industry has to change the suggested retail price policy to simply a wholesale price. The wholesaler also should have the option of offering either a name-brand catalog or a private-label catalog. The fabric industry needs to do this as well. They have to protect the local merchant and the area sales representative.

In regard to the reps, they should start complaining to their management about all the sales they are losing in their territories, and maybe have commissions redistributed based on where the goods were shipped to rather than where the order was placed.

A rep for one of my biggest furniture suppliers lost a very large sale to a North Carolina discounter recently and said his hands were tied. I might have been able to match the price with the client, but didn't even have that opportunity.

I am sure there are many clients that my sales rep and I have lost to this shopping mode. The only alternative for my business is private label, hopefully with support from my suppliers. If not, I will find other suppliers who will satisfy my needs and cherish the business they receive from us!

Richard Harary, Richard's Interior Design, New York City

Fair turnabout?

The High Point Market Authority is going about the "gouging problem" all wrong. They should simply announce that the local hotels and restaurants have instituted Mimimum Retail Prices and no one is allowed to discuss or question the practice.

We should be able to relate to that. Our industry uses MRP to gouge consumers all year long, so having consumers do it to us for just a couple weeks should be fair turnabout.

Dwight Ball, Winston-Salem, N.C.

Deliver right or die

I am writing in response to Michael Greene's column, "Here's to little things that pay big dividends" (March 4, page 70).

I agree with his observation that it is the little things in life that ultimately pay the big dividends. Planning, attention to detail and proper execution will lead to success. Not only is this an important lesson to teach children, but a serious lesson to teach retailers in our business.

I have witnessed furniture retailers succeed in many important aspects of their business — store location, showroom layout, furniture display, advertising, selecting salespeople and pricing — only to fail when it comes to warehousing and home delivery. This often leads to their downfall.

What the most successful retailers in our industry understand is that the logistical end of their business is as important as the sales end. If a retailer focuses all of his or her attention on opening stores, and warehousing and home delivery is handled without the same effort, success will be extremely difficult to achieve.

The last opportunity your company has to leave a positive impression with the customer is with home delivery of the furniture. The failure or success of the delivery will determine if that customer comes back to your store to buy again, or if they bad-mouth your store to everyone they know.

Retailers should think of their operation as two distinct business, sales and home delivery. Just as you try to hire the most experienced, professional and talented people to work in your showroom, it is equally important you make the same effort in selecting your delivery people. Ask yourself these questions about them: Are these the best people I can find to represent my company? Are they, on a daily basis, enhancing my store's reputation for service?

Furniture companies should think of home delivery as a form of advertising and a way to increase sales, not just as another cost. The right people delivering your furniture can increase your sales and enhance the reputation of your business. Conversely, the wrong people delivering your furniture can put you out of business. How much will that cost you?

Patrick D. Cory, director of marketing, Cory Home Delivery Service