Half a Century of Furniture Rep Wisdom
My father Emmet Root, a still active Furniture Rep with over 50 years experience in the industry, wrote the following article for the publication RootNotes. He has seen many business slumps over the decades and has always felt there was a significant need for the traveling furniture salesman. In this article he suggests that times may be changing. For a complimentary copy of RootNotes Online register at www.MikeRoot.com. Here’s what Emmet wrote:
A frightening scenario is taking place in the rep business. From conversations with dealers who are close to several factory salesmen, a report from associates in the Midwest and visits at annual golf outings we are concerned that independent reps are forced with a herculean struggle. A squeeze from fewer dealers, reduced commissions, and dramatically increased costs is causing may experienced salesmen to question their future.
The two factors that are exacerbating the struggle are: the Ashley model as well as the growth of the large retail stores. Firstly, the Ashley model, which floods territories with factory salesmen with lots of product and a small geography. Because of their model of being a manufacturer, a distributor, and a retailer, Ashley blankets states. Their network dominates many independent retailers who dislike having their furniture in all competitor’s stores but are hooked on the breadth of the line and the quick service. The second factor hurting factory salesmen is the growth of the retail giants. Chain stores, Mega furniture retailers, the internet, and national rent to own chains are gobbling up an increasing percentage of the furniture dollar.
The days of covering a state town by town and writing orders along the way is caput. So much business now takes place in management meetings with major buyers or at either High Point or Las Vegas shows that the “road” is for service, training, or an occasional special or closeout. The demise of the independent rep has been predicted since the 60’s when Levitz, Wickes, Sears and a few others were going to be factory direct. This time around the Perfect Storm of lost commissions and extraordinary expenses may do the trick!
This trend saddens us because the smaller dealer will have less service if they choose not to turn over their entire store to Ashley. The large stores will still partner with key account sales execs to build their programs. But as an industry will we be better off if the independent rep disappears? Will the lack of selection and service lead to the demise of the independent furniture store? Let us know your comments
Geoff commented:
What a disappointing article. The reasoning is flawed in the assumption that indpendent reps that work for Ashley are somehow not independent reps. Most of my fellow indpendent Ashley reps are industry veterans and have worked for the finest manufacturers for the past several decades before coming to Ashley, which I am proud to have represented for the last 13 years. We are a part of the IHFRA community. I have served on my local IHFRA Board for the last 4 years, acting in every capacity including President of my chapter. We work hard with major dealers, independents and others who value our model. My experience with my customers is they buy from me and the company I represent because it is in their best interest, because they are getting the best I can give them and because it helps them do what they are there today: satisfy their customers, make a living and compete in the marketplace. I would think someone concerned with the future of the manufacturer's rep would recognize the contribution of the independent rep in Ashley's rise over the last 30 years and not denigrate the hard work we do.
Thom commented:
Mike, you ask, Will we be better off if the independent rep disappears? All anyone asks of the "independent rep" is to know your product, be accessible to everyone and do your very best. For reps like Jeff, that is what we want to hear. He is someone that we need in this industry!
Ultimately, I think it is up to each independent rep to decide if he or she wants to be an asset or liability. The industry eventually will weed out the liabilities, sooner or later.
Jeff Giagnocavo commented:
Thom, you may call me anytime you like 717.226.2932 The fact of the matter is you are right there is a large majority of reps that are liabilities and not assets, I would like to think I am an asset to my retailers and factories. I know of other reps that are the same, and I know other reps that are not. I do my best to make myself available and when I can't answer the phone I do my best to return all calls ASAP. At the end of the day I do my best. And to Mike Root, I love the direction you have taken this column in it is refreshing.
Thom commented:
For the independent reps that "know their stuff" and on are "top of things", you are the exceptions that we all love. Sadly, the demise of the "independent rep" will occur because factories and retailers have realized that the majority of reps are liabilities, not assests. The "independent rep" only obtains more lines to cover the loss of income. Less time to learn the line which translates into sub-par reps. So who wins? Not the factory, not the retailer and definitely not the store saleperson trying to close a sale. Try and call an independent rep on the weekend, or after 5... see who answers?
Jeff Giagnocavo commented:
Although I agree with your assesment of the current 2 business models you list, I wholeheartedly disagree that it is the demise of the independent rep. Until the day comes that all other companies who are not Ashley decide that they do not want business the need for an independent rep remains, unless they can overnight develop the marketing and distribution of Ashley, but even then they just become a "me too" company. I do also agree that the rise of large chains disrupts the territory and hurts the reps income. Hopefully companies will recognize that sales live and die by what happens on the floor and training, updates, and sales how to cannot be taught from the ivory towers of head offices and tradeshows. I am fortunate to work for companies that realize this need for me to be a part of the business done with large stores. No doubt expenses are a problem but I have offset a large amount of expense money by utilizing the IHFRA discounts available to members. At the end of the day retailers only buy Ashley because it is easy and not really better. I view my job as showing the dealer why my line is better and I can show the dealer how to make it is easy to buy/source. At the end of the day I am working much harder now than ever, and I hope long term that the seeds laid today result in fruitful things later, but for now I choose to push on and work with my retailers to help them better promote and win the customer, those that know me know this and have access to my site for promotional and retailing ideas to better their business.
