FMG best ideas: From defects to gift cards
Tom Edmonds -- Furniture Today, February 20, 2005
Lake Buena Vista, Fla. — Best idea contests often justify the time and expense involved in attending conferences, and the Furniture Marketing Group's symposium here offered two such contests, one on advertising and marketing, the other on operations.
Here are a handful of the group's ideas. For competitive reasons, the identities of some stores are withheld.
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Merchandise closeouts: Becker Furniture World, Becker, Minn., was investing too much time deluxing closeouts, and too much of it was being returned. The company developed a form listing defects, which purchasing customers sign, acknowledging the imperfections. The form stays with the product through staging and delivery so the service department doesn't attempt to make it perfect.
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Applicant testing: One FMG member has been making better hiring decisions with a two-step service that tests applicants for intelligence and problem-solving skills as well as integrity. The Web-based service provides the retailer with immediate feedback.
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Managing sales representatives: Kammer Furniture, Bluefield, W.Va., has developed a checklist for visiting reps, spelling out the store's expectations for product training, catalog updates and more. Furniture Fair, Fairfield, Ohio, has developed an intranet site that allows reps to key vital product information into the company's operating system, saving both the store and the rep time and headaches.
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Sales training: A couple of FMG members said they're getting tangible results from regular sales training. Dearden's in Los Angeles has created a Dearden's Training Institute, a mandatory half day of training for all 75 salespeople each month. The program's success is obvious: The company had 23 $1 million writers in 2004, up from 11 in 2003.
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Gift cards: Olum's Furniture, Vestal, N.Y., has turned to gift cards instead of discounts. The company rewards large purchases with a card that must be redeemed in six months. They please customers, some of whom don't redeem them. They also are good salve for the occasional disgruntled customer. Gasoline cards worth $25 also have proven particularly effective as promotional tools.
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Accessory add-ons: To pump up business during normally dreary December, Value City Furniture, East Brunswick, N.J., promoted a $100 giveaway in accessories for each $699 item purchased. This gambit generated a 25% sales increase and some happy Christmas shoppers.
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