Tuesday, April 14, 2009

50/50/50 and a free Turkey at Thanksgiving!

I plan to use this blog to shoot my mouth off whenever I feel like it, which is most of the time these days. Today's rant will be about multiple level discounts. What kind of morons in the Window Covering world are happy with the current multiple discount level system? You know, the 50/50/20/5 and a free turkey at Thanksgiving nonesense!

Who likes this archaic system? Is it the dealer who likes to offer 79% off to the consumer who thinks she's getting the bargain of the century? I mean really, do you think there are any idiots out there who really think 79% off is realistic?

I like what the some folks call keystoning, at least that's what I think it's called.

You know, where the Retail pricing is exactly double your cost. Isn't this simpler for all?

Maybe not, in business I like to know my cost and figure my selling price as I see fit. In my case this would be known as cost pricing. If I were a dealer, all I would want would be net pricing. I would force (this should be a clue to all that I am an ignorant idealist!) my fabricators to give me all my prices in Excel form at net price levels. Wouldn't this be the best solution in the industry?


Just tell me what it cost and I'll figure the rest out! And keep your trip promotions and incentive programs for the lemmings who haven't figured out there's no such thing as a free lunch! Doh!

And even if the lunch were free, what kind of morons go on trips planned around industry trade shows? I mean come on dude! Do you think your supplier might, I mean just might, have an alterior motive for keeping you from the most important industry gather of the year? Give me a break!

I look forward to reading your comments.

Graber Direct


ADVERTORIAL in Visions Magazine


Dealers and Manufacturer Unite
SPRINGS WINDOW FASHIONS DEBUTS NEW DEALER MARKETING
PROGRAM

For the past 70 yews, Springs Window Fashions has been providing quality window treatments
under the Graber brand name, with a reputation built on a solid foundation of service and
reliability. This year in an effort to synergize its acquisitions under one umbrella and offer its
customers the best possible in sales, service and marketing programs, Springs has introduced its
new dealer marketing program Graber Direct.

A Direct link

The new program available to current and new dealers, provides an opportunity for dealers to
partner more directly with the manufacturer The response so far? "Extremely positive,' says Sal
Parente, director of sales, Style Side for Springs Window Fashions LLC "The industry leading
customer service team and world class Manufacture facilities have exceeded dealers' service
expectations.'

So what sets this program apart from other dealer programs? Parente explains it this way "In the
age of eliminating waste, this program provides our dealers with a direct link to the manufacturer
by steamlining the purchase process our dealers are in tune with the latest products, programs
and services the industry can offer." This includes support from more than 50 field sales
representatives, 45 inside sales associates and the business knowledge from Springs' finance,
operations and marketing dedepartment to help dealers better manage their business.

Far-Reaching Benefits

How does this new program benefit Graber dealers? Simple. Working directly with the
manufacturer allows the dealer to take advantage of business building programs they have never
had access to before explains Amy Dakin senior marketing manager, Style Side Division for
Springs Window Fashions LLC. These perks include:

* High-Quality • has a 70-year history of providing firstclass, reliable window treatments, with
some of the lowest remake statistics in the industry. And they're installer preferred.

* Quick Ship Convenience-Graber Direct ships 98.5 percent of orders in 72 hours or less, with
live order tracking available at graberdirect.com

* Superior Customer Service Graber Direct provides a dedicated customer service staff to answer
calls right away with no automated recordings. If a remake is ever necessary it will receive
priority treatment, often finished just hours after the call.

• Online Ordering and Quoting Tool-Featuring easy to navigate drop-down menus and live order
tracking Graber Direct's Online Ordering and Quoting Tool allows dealers to generate detailed
product quotes for their customers, and also receive a 2 percent discount when placing an order
online.

* Up-to-Date Communication- GraberDirect provides a direct link to the manufacturer with
instant access to new promotions updated product information new marketing materials current
price lists and a free electronic newsletter-at graberdirect.com

* Lead Generation Program-Dealers will save time, money and effort with Graber Direct's Lead
Generation Program, providing dealers with a steady flow of qualified leads.

• Passport to Adventure-earn an exotic vacation just by selling Graber
window treatments through Graber's exclusive dealer incentive program
Passport to Adventure.

• Consumer Financing ProgramGraber's Partners in Profit' credit card program gives dealers
another option to offer their customers, with features like low monthly payments, 24-hour
access to account information and online payment options.

* Dealer Locator-All Graber Direct dealers are listed in Graber's online Dealer Locator complete
with a detailed map and phone number listing of dealers in the area.

• Partner Plus Dealer Loyalty Program-This loyalty program offers great rebates, sampling
discounts, specialized training programs, print and web advertising resources and more.
With its numerous dealer incentives it's no wonder Springs Window Fashions has already found
success with its new Graber Direct program. -Don't take my word for it. Open an account and
find out for yourself, challenges Parente.

HD, Good Bad or Ugly!?

Hunter seems to creep into every discussion we have on almost any subject. Well, I for one have had it! Here?s a topic all about Hunter Douglas so we can hopefully rant and rave all we want:-)

Like many of us here, I have watched the tentacles of HD find their way into every nook and cranny of the Window Treatment business. The question I am asking today is this:

Is the Window Treatment business better or worse, richer or poorer, in sickness or health after the last 10 years of domination by Hunter Douglas?

Conservative estimates put Hunter's share of the US custom business at 35% but if you add the wholesale supply side of their business, namely Turnils, maybe this percentage is closer to 45%. That's pretty impressive if it's accurate but their market share is really not indicative of their place in the business.

HD has been responsible for the majority of industry product innovation throughout their history. "Oh yeah, well they've been lucky!" you might say! Well, I remember a story I heard when Jack Nicklaus won his second Masters with a 60ft putt on the 18th green. Later, a reporter commented to Jack that he had a lucky putt to win. Jack quipped, "it's funny, the harder I practice the luckier I get!"

There can be no doubt that HD works harder and spends more money on R and D than any other company in our business. This together with superb implementation makes HD the powerhouse they are today. (Okay Rory, keep it real!)

So, the question is HD, Good, Bad or Ugly? In my opinion, without the influence of HD pushing the envelope while edging the value of window coverings ever higher, most of us would still be fighting over venetian, vertical, pleated and roller shade sales for low prices and razor thin margins.

"Oh come on Rory, you?re full of it!" you say, "but I offer proof" I say. Today the retail price of Luminette for a 78x84 window is about $1100. At this price there is a whole world of product options available for the smart retailer to offer the consumer. The all important point is that the value of the window covering has been raised.

I was in Heimtex, Frankfurt last week and spent some time in the window covering hall. You wouldn?t believe how many companies were showing pleated shade systems and roller shade fabric collections. The majority of the European blind market is stuck in a time capsule. Sure HD is dominant in Europe but their consumer marketing across the continent has been nowhere near as effective as in the US.

So there you have it, I am convinced that HD is one of the greatest forces for good in our industry. The next greatest influence on the consumer is probably Smith and Noble pushing the new product envelope with millions and millions of their beautiful catalogs dropped in the mailboxes of the most affluent homes in the country. (Hmmm, is there anyone I have left out in my sycophantic rave?)

I know this to be true because my company exploits the nooks and crannies of the business left by HD in their mission to innovate the Next Big Thing!

So come on Pros, call me a sell out, call me a traitor:-) but tell me what you think and where you think the business would be without the HD we all love to hate.

Followers