Weathering the storm with cooperation, respect
Jerry Epperson -- Furniture Today, March 16, 2009
Everyone who knew the late Fred Friedman respected him and enjoyed his insight into our business. I still remember visiting his office at Carls in Coconut Creek, Fla., and discussing industry trends and sharing some thoughts.
When it came to mattresses, Fred told me why one manufacturer would always have prime placements on his floor. I won't mention the company's name but it starts with an “S.”
It seems that around 1980, his store had a horrific fire and the expected financial losses. Fred was quickly cut off by many of his suppliers over credit concerns, but one large mattress manufacturer expanded his credit line and shipped to Carls when others were running away. He said he would never forget that loyalty, and would always do business with them.
We all miss Fred, but it seems we need to remember what resulted when he had that fire in his store.
Manufacturers and importers tell me they have never had as many retailers on credit watch or worse yet, credit hold. They cannot get credit insurance on some large, important customers. Everyday they face the most difficult decisions because they need the orders, but can they afford to ship to questionable retailers?
Even before the extreme economic trauma of the last few months, the larger, successful retailers had become more demanding in service, quality and believe it or not, price. Too often, the manufacturer or importer was faced with either to selling our industry's largest and most demanding retailers with profit margins that were barely there, or selling to smaller retailers at good prices but taking other risks, like credit.
In the past three years, we have been losing furniture stores at an alarming rate. Yes, some retailers are expanding — but not very many, especially now.
There are no easy answers but it appears that nothing works better than the truth, on both sides. The more confident the manufacturer/importer, rep and the retailer are that they are hearing the truth, the more comfortable they can all be working through times of constrained bank credit and a reluctant consumer. Yes, there will be some losses, but hopefully these can be minimized with cooperation.
I know it sounds like I am asking for a group hug, but I am not. What we needed is empathy, patience, and valuing relationships that have taken years to develop. Decide who you want on your team — and let them know.
And thank you Fred for all you did for our industry.
-
Improved sales bode well at Vegas
Feb 6, 2012 -
Conn's Sales off 15%; Furniture a Bright Spot
Aug 29, 2011 -
Second-Tier Producers Hopeful About 2011
Dec 24, 2010
Specialty retailer LoveSac introduces new store design
Kincaid Furniture honors Jimmy and Rosalynn Carter for Habitat work
Omnia Furniture ends relationship with Kathy Ireland Worldwide
Belfort Furniture, Lawrance Furniture are NHFA Retailers of Year
Singapore furniture show expecting increased turnout
Featured Company
-
Brandwise Inc.
Brandwise serves a model - not just an industry - by integrating, automating, and optimizing the entire sales channel, from wholesale Suppliers to their Reps and the Retailers they service. In short, our software helps Reps and Suppliers sell more and create... more
VIEW ALL GALLERIES
