In Our Industry
In our industry in times of trouble, we call out to our friend, advisor and economic forecaster, Jerry Epperson. Jerry, then gives us his sage advice, and we all feel reassured!
Yes, we are in the worst economic crisis since the 80’s to be sure, and it may be worse than that, not quite the “Big D’ but close.
Jerry in his article makes wonderful and correct observations! He lists five, and he may have left a few others on the table, but he hits the points made, out of the ball park! Many of you that know me, make fun of my Ivy League degree. I have two brothers, both PHD’s, and for years I made more than both of them combine. So, I wasn’t so stupid by being in an industry that I loved. One of my brothers has his PHD in Economics an a JD from the University of Texas, specializing in energy production. He’s now lending me the money to survive these hard times. He also takes Jerry’s view, that those who survive will be very well rewarded, both reps, retailers, and suppliers/manufacturers. We all supply a product that the consumer will always need regardless of the current economic conditions! In my opinion we will be the first industry out of current economic troubles. We as an industry have always lagged behind the real estate market. When housing was booming we never saw that proportional up tick of furniture sales to correspond with the housing market. We all know many people who have houses devoid of furniture, but they all have big screen HDTVs!
We as representatives have to become better partners with our retail customers. Firstly, we must travel. The cost of gas has dropped by almost 70% . There really is no excuse not to be in your retailer’s face. I can already hear some say that the way business is so flat, it’s just not economically viable to do the traveling. I disagree! Get out there. You may not write the order, but I can assure you that the retailer will remember your call and you might surprise yourself with an order. I am still doing 30k miles a year in a small territory. Yes, I am stressed out by the situation, but at the same time I feel that I will succeed and make it. You can only make it through hard work, and smart work! The old days of doing business are gone, like the lines of old. It’s more important knowing what your customer wants and needs, but you have to see and talk to him/her face to face. The old adage , “out of sight, out of mind ” is very true. Just ask any bedding rep!
In these trying times Reps should take a closer look at what IHFRA has to offer. Locally and nationally IHFRA has a multitude of benefits for the Rep to take advantage. The Office Depot discount is their best, especially if you do any printing! CLC offer 30-40 % off rates on hotels and motels. We have health insurance, group insurance, and personal liability insurance. Many more benefits are available which will off-set one’s dues. Joining your professional organization could be your best investment in these hard times. We also provide the services of our lawyer to hear your questions and let you know whether or not there is a case. The initial consultation is free of charge!
Now that I have finished offering my own brand of insights, let me get to the meat and potatoes of the issues concerning our Industry! I have several scared cows that I want to attack, beginning with High Point and now Las Vegas! When will they ever learn? It use to be just High Point that ripped us off and treated us as though we were no more than indentured servants, expected to accept their terms and conditions with regards to cost of housing, food, parking and entertainment! Now the entertainment is free, but off campus, you pay and pay. For example, Red Roof Inn, an IHFRA sponsor raised their rates from our special rate of $69 a night to $105 a night, with a 10% discount. How nice of them! Fewer and fewer people are attending market yet they still think they hit the jackpot!
High Point has made some progress and Brian Casey should be recognized and applauded for the hard work and dedication which he has brought to the Market Authority. He was been creative, innovated and most of all, willing to listen. The faults won’t be corrected quickly, but he has made many people stop and hear the message, whether or not they do anything, remains to be seen. If they don’t fix the problem, then they deserve the consequences!
An example of this is what is happening in Las Vegas. The WMC controls the costs of the rooms of the major hotels at that market. Since there are very few people attending, the hotels have all dropped their rates to levels that we have never seen, even before the advent of the WMC.
An example of this is the Monte Carlo Hotel. IHFRA has been staying here from the beginning. We were at $75 a night our first market. Then the WMC took over and rates were $99. Today you can book February’s market stay at $65 a day, except Friday and Saturday, which will be at $110 down from $149. The only thing WMC provides from the hotels is bus service which would cost out to a couple of bucks per day per person.
Las Vegas is no longer the city of value. Everything costs. In the old days food was plentiful and cheap, anything to get you into the Hotel and at the casino! If you search for inexpensive faire it’s going to cost you in terms of time or transportation.
Now we are caught up in the battle between High Point and Las Vegas. Vegas is changing the dates, going after High Point, yet now making it easy for reps to make a choice of which markets to attend. I for one will no longer be attending September market in Las Vegas. It’s too close to High Point and pre-market. Las Vegas will become what it is meant to be, a strong regional market for the Midwest and West. The majors might attend Vegas, but they all come to High Point! High Point has the space to show everything, while Vegas space is too expensive, at a premium! The fourth building has been pushed back, and the concept of 8 buildings looks highly improbable at this time.
There just too many markets, both for reps and retailers. Let’s see, it’s the beginning of February and we have had the Canadian show, Forbidden City, Tupelo, and now Vegas, with pre-market in March and then April market. Only six opportunities to see product in this robust economy! For many retailers once a year is enough. By the time a sample arrives on the floor the retailer has already forgotten he ordered it!
In these dire economic times, we should be conserving expenses. Some of these markets should just go away, and then maybe we’d see more people at those remaining shows. Las Vegas should go back to the Jan-July cycle, while High Point should keep it’s traditional dates. Product is able to be presented at both locations with ease, without air freighting product from one location to the other. Let’s work to keep everyone’s expenses down in these trying times!
Let me know what you think, positive or negative, and ideas you want me to express next time! Hope to hear from you!
Thanks
LeatherItalia Retailer commented:
Ray - funny you should write: "We as representatives have to become better partners with our retail customers." We've been trying to get updated price lists & marketing materials from you since January! Traveling to customers is less important than staying in touch. Perhaps, if you'd return a phone call (or 20) or an e-mail (or 50) you'd be in better shape. I know we only sell about one LI set a month, but one a month is better than none (we can't sell the product without something as simple as the current price list). In 1/10th the time you took to write this blog you could have sent us the price list and would have generated at least 7 sales for you and your company.
a furniture store commented:
Ok, I agree totally that High Point is still a major rip off to the stores, and still a royal pain!!! The hotels/motels are horrible to say the least, and the rooms are just dusted from the last market, and smell horribly!!! I went to Vegas twice and did not find the QUALITY of Vendors that we need for our store. So right now Vegas is out of the question, as I need to spend my time wisely at Market, and my dollars as well. This market I did not go through Market Authority to book my rooms but went to a travel website that I booked both my flight and hotel together, and it was definitely cheaper than going through the Market Authority bookings! During Market I have eaten in restaurants that simply slide the new priced menu (Market priced!) over the last week's menu! Soup, was $3.95, NOW $8,95...it's horrible! But once again, that is market, and you just feel raped and robbed prior to getting on the plane...The vendors at market try to help out with water, sodas, lunches, and dinners in their showrooms, but I noticed last market that they were even cutting back on those "free offerings" --- sad state of affairs, and it is sad for us the retailer who has to go to market, has to do it...as there are not good reps for the most part out there, and as it was said in one post, they are selling to whomever and where ever they can at this point just to make a sale! So, why even have minimums, why even have us register at Market, I have customers tell me that they have been to market --- that makes my blood boil!!! But if you have the money and the time, you can get into market...both Vegas and High Point...I have also quit donating to people who say that they have purchased things on the internet...they are not supporting our local businesses, and yet they want us to support their charities...think about that as well!!!
Jim Green commented:
Ray:
As a former furniture representative myself, in my view, today's economy does not only demand that reps travel to the their customer's locations. It is not even about writing orders to fill retailers' warehouses. It is, I believe, much more than ever, about working with both your factory and with the retailers themselves in finding ways to SELL the product and training retail sales people to be more effective and thus give the retailer a competetive advantage over their competition. It is about helping the retailer sell what they already have so that they can buy more. As blasphemous as this may sound coming from one who worked on your side of the business, it is today, far more about service, creativity, professionalism, and effort than it is about writing orders because orders will come. I strongly believe that your retailers will remember a rep's actions and how it helped sell product much more than just that he/she made a call.
I am sure this is not anything that you did not already recognize but did not have the space in your article to elaborate on. And I couldn't agree more,; today it is about survival for both vendors and retailers. Those that do can only come out of it stronger, more profitable, healthier and, of course, wiser.
Jim Green commented:
Ray:
As a former furniture representative myself, in my view, today's economy does not only demand that reps travel to the their customer's locations. It is not even about writing orders to fill retailers' warehouses. It is, I believe, much more than ever, about working with both your factory and with the retailers themselves in finding ways to SELL the product and training retail sales people to be more effective and thus give the retailer a competetive advantage over their competition. It is about helping the retailer sell what they already have so that they can buy more. As blasphemous as this may sound coming from one who worked on your side of the business, it is today, far more about service, creativity, professionalism, and effort than it is about writing orders because orders will come. I strongly believe that your retailers will remember a rep's actions and how it helped sell product much more than just that he/she made a call.
I am sure this is not anything that you did not already recognize but did not have the space in your article to elaborate on. And I couldn't agree more,; today it is about survival for both vendors and retailers. Those that do can only come out of it stronger, more profitable, healthier and, of course, wiser.
motives commented:
Most reps are horrible there for the good times and nowhere to be found in bad times. Bad times can also mean when a product needs service. I find it more irritating that in these times reps will put their lines in small boutique type shops with no floor space. After years of dedicating valuable floor space to manuf. now we are faced with the smaller stores selling at much less profit margins just to win the sale. Isn't great that there is no protection? As for Vegas.... I would never go back if I didn't have to. I'm tired of being ripped off and scouring for lousy food. Vegas has a Four Seasons Hotel, Excellent Food and awesome entertainment. Highpoint has people still fighting the civil war!
Mary commented:
Whats with the Vegas bashing? You sound like a lousy rep-please dont come to our store! You fat cats have had it easy for way too long.
We stayed at the Bellagio last market for 149.00 and the Wynn this market for 129.00-where else can you stay in a 5 star hotel for that?
I feel the WMC runs a class operation, not crazy of the Sept change-but we'll likely go to both this time around.
peter commented:
Wow I am glad you are not repping our line-what a typical old salesman line of bull.
PS the WMC does not control the hotel rates in vegas, thats the funniest thing I have ever heard!
Its ALWAYS cheaper to book direct with the hotel..
ha ha ha
chris pollard commented:
Ray, glad I didn't have to go to Vegas. I did get fired by my rug line for refusing to go to Vegas in the summer. No big deal. I work everyday. I carry five lines and am the ultimate multitasker. For many companies, reps are like rented mules. Fortunately the only one that ever treated me that way was the rug line. Below is a true story about market.
My friend a retailer decided at the last minute to come to market last fall. On the way down her called a hotel for a room and stated he was coming to the furniture market, the rate for the room was $165! His wife, being the smart one in the family called the same hotel a little while a later and said there was a death in her family and she was coming down for a funeral. Bingo, rate went to $65.00 - True story - welcome to Greensboro, welcome to the market. Both markets are getting what they deserve.
I travel DC, Va., and Md. For those dealers that are left, bus. ain't bad. Everybody has jobs in this area. Ain't gov't grand. By the way. Thomasville BR was specified for a huge job at Andrews Airforce Base. Guess where Thomasville is made, CHINA. Isn't our government great.
