ALLPRO Independent March/April 2020

Ind epe n de nt March/April 2020

EAST BAY PAINT CENTER M A RKETING MEM O:

Develop your Digital Storefront.

DECOR D ONE RIG HT: Explore the World of Window Treatments

H A P PY BIRTH DAY There is a Centenarian Among Us! An ALLPRO® Publication

PAT H WAY S TO PROFIT

AT THE MIKE | COMPETE

@ A L L PROCOR P

ALLPRO’S PATH TO PROFITABILITY Meeting to deliver that same opportunity at the end of the year, which should give our members additional savings leading up to the spring show.

Pool Buys

MI CHAEL BEAUDOI N Executive Vice President ALLPRO Corporation embers face a tough business climate that includes rising healthcare costs, a tight labor market on top of compressed margins due to an increasingly competitive industry. It is more important than ever that members utilize the resources available to them and maximize the group benefit.

There are many ways ALLPRO works to help its members enhance their ability to compete and make money.

ALLPRO Shows

S P O T L I G H T:

chattanooga paint and decorating

Volume Discounts

ALLPRO has worked hard to add volume buy discounts to many of our programs with savings up to an additional 10% on some suppliers. Researching the programs on the supplier bulletins will help you determine if there are more options to save when purchasing larger orders.

Volume Incentive Program

The VIP or rebates are a growing feature to the group. As more members participate with a supplier, the entire group wins as our year-end rebate is greater. You can monitor these rebates on the ALLPRO website under the member/resources/quarterly VIP tab.

Understanding the rebates will help you coordinate your purchases and maximize this benefit. 100% of all rebates go to the members in percentage to their purchases, and in many cases, this is unbudgeted income that is delivered in the first quarter when it is needed most. Everybody, including the supplier, wins when we grow our purchases and earn additional rebates.

Supplier Engagement

Wild Card Promotions

The shows are designed to allow members to buy at a significant savings just as the main selling season is starting to kick into gear. The deals are even greater when using the show only deals that are becoming more aggressive and deliver additional value.

We’ve recently added the “ALLPRO Store” to the shows that deliver the ALLPRO brand at up to a 50% discount.

Planning your purchasing to take advantage of the best show deals gives you the ability to complete at a greater level, while still maintaining margins. We have also recently expanded exhibits at the Stockholder

east bay paint center

We have been working hard to utilize the distribution centers combined with our buying power to conduct “pool buys” on several “A” items that are important to the members. Participating in these pool buys helps our members compete with the national chains, who also make these large purchases, as well as add profitability to their business.

We are looking for ways to partner with more suppliers and expand these programs to more products. The addition of the Midwest warehouse will also help expand this program.

run the first month of each quarter, for 45 days.

We partner with our suppliers by securing promotions which we pass 100% along to our members. We target mostly our best-selling products and suppliers for these promotions.

This is also a great way to save without having to place large orders. The Quarterly Promotions are emailed out and are also located on the promotions tab on the DC website.

Many of our suppliers offer a “wild card” promotion which gives members the ability to purchase at a discount outside the spring and fall selling periods. This is a great program to take advantage of when you have an opportunity to secure a large job since it can be utilized whenever you need it. You can research which suppliers offer a Wild Card promotion by going to the promotions tab on the ALLPRO website.

DC Quarterly Promotions When purchasing products through the

distribution centers, you can save money by utilizing the quarterly promotions that typically

One of the greatest benefits of ALLPRO is your ability to have a relationship with your suppliers. We have some of the absolute best suppliers in the industry that are committed to our group. Make sure that you are investing the time to engage them and build a relationship with your salesperson. They will work with you in many ways to take advantage of all the tools that the supplier has available to enhance your business and help you be profitable and win business.

The above are just a few of the many ways ALLPRO members can utilize their membership to enhance their ability to compete and be profitable. We will always strive as a group to continue to add to these benefits.

14 Pathways to Profit Dan Tratensek offers advice and formulas to boost your bottom line

26 Décor Done Right Implement Window Treatments into Your Store

18 Marketing Memo Put your Online Sales On-Point

36 Proposed PACOA Expansion Big growth on the Horizon for PACOA

38 Final Coat: An ALLPRO Member Milestone

March/April 2020 | ALLPRO INDEPENDENT | 3

INDEPENDENTS | ON THE BLOCK

Congratulations to all the new additions to our ALLPRO family!

Please join us in welcoming the following new members who joined the ALLPRO family of independent retailers since the beginning of the year:

VOLUME 3 ISSUE 2

BRACKIN PAINT & SUPPLY of Dothan, AL; Canpro Decorating Products new member ATLANTIC PAINT LTD of Langley, BC; EAGLE PAINT & WALLPAPER CO. of Englewood, NJ; ENTERPRISE PAINT & INDUSTRIAL of Enterprise, AL; IDEAL HOME & PAINT of St. George, UT; in.SIDE.out PAINT CENTERS of Marietta, GA; MARK’S PAINT MART of Oakland, CA; and ROBERTS DECORATOR SUPPLY of Sherman, TX.

ALLPRO Leadership President Elliot Greenberg Executive Vice President Mike Beaudoin Vice President of Merchandising Scott Morath Marketing Coordinator Susie Fontana

CANPRO DECORATING PRODUCTS added two new locations: COLOUR X5 in Toronto, ON and SPEERS PAINT & DÉCOR OF BRAMPTON in Brampton, ON; CHATTANOOGA PAINT & DECORATING added a new store in Ooltewah, TN; HARRISON PAINT CO. added a new store in West Monroe, LA; MALLORY PAINT STORE opened a new store in Lacey, WA; MCCORMICK PAINTS added a new store in Yorktown, VA; SPECTRUM PAINT CO. added new stores in Charleston, SC and Roanoke, VA; and THE COLOR HOUSE opened a new location in Greenville, RI.

About ALLPRO Independent We are a bimonthly publication dedicated to strengthening the ALLPRO community with relevant stories and news. Your suggestions, opinions and feedback are encouraged.

In Memoriam:

How to Reach Us Write to us at ALLPRO Corporation 4946 Joanne Kearney Blvd., Tampa, FL 33619 Or contact us at 813.628.4800 or by email at allpro@allprocorp.com All publishing services provided by Gallon Creative www.galloncreative.com

Edward J. Richard Sr.

Edward J. Richard, Sr., 92, passed away on December 18, 2019, after a lengthy illness. Born in 1927 in Cullman, Alabama, he spent his childhood in Cincinnati, Ohio, along with his nine siblings.

Edward leaves behind the love of his life, his wife of 66 years, Ruth. He was a dedicated, loving family man and fathered four children: Debbie Richards (Russ); Pam Anastasio (Toby); Eddie Richard Jr.; Eric Richard (Lea Anne). Grandchildren: Toby Anastasio, Jr. (Sheri); Ryan Walski (Crystal); Eddie Richard III; Tanya Donoghue (Billy); Chad Richard (Shelly); Justin Richard (Kristina); Jacob Richard (Jenni); Rachel Nicholson (Zachary); Falon Brown (Chris); Brandon Williams; Hannah Richards-Whitesell (Zack); Logan Richards; and the late Tara Marie Westerman.

Edward also leaves fifteen great-grandchildren.

Edward enjoyed a full and happy life. He served in the Merchant Marines from 1947-1953 and traveled the world. He never tired of sharing the adventures he enjoyed during his service.

He and Ruth founded Richard’s Paint Mfg. Co., Inc. in 1953 and grew the business until their retirement. He had the pleasure of watching his legacy continue to grow and thrive in the hands of his children: Eric, Eddie, Debbie and Pam, as well as grandchildren: Justin, Chad and Eddie III.

4 | March/April 2020 | ALLPRO INDEPENDENT

Congratulations to the following members on their recent expansions:

Edward had a wonderful sense of humor and enjoyed playing pranks and joking around with his family, friends and even strangers.

His years in the Merchant Marines left him with a love of the water and a sense of adventure. He traveled the world with Ruth, his children and grandchildren. For weeks on end they enjoyed sailing the Bahamas and fishing in the Keys as well as winter on the slopes of Colorado and Tahoe. He also loved his RV and traveled to every state in the country including Alaska.

Edward will be missed by all who knew him: family, friends, employees and life-long customers.

In lieu of flowers, memorials may be directed to the Hospice of St. Francis, 6905 N Wickham Road, Suite 403, Melbourne FL 32940 EDWARD J. RICHARD WAS A FIXTURE IN THE INDUSTRY AND THE ENTIRE ALLPRO FAMILY WILL GREATLY MISS HIS FUN LOVING PERSONALITY AND ADVENTUROUS NATURE. WE HOLD EDward’S FAMILY, FRIENDS AND THE ENTIRE TEAM AT RICHARD’S PAINT CLOSE IN OUR THOUGHTS. EDward WILL BE DEEPLY MISSED.

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6 | March/April 2020 | ALLPRO INDEPENDENT

SPOTLIGHT | EAST BAY PAINT CENTER

east bay paint center hen Bob Langbein purchased East Bay Paint Center from its previous owners (a husband and wife team), the store was doing about 500 thousand dollars in sales a year. This year, after twenty-five years under its new ownership, they have a six million dollar budget. With Bob’s leadership, East Bay Paint Center grew into one of the largest single-store Benjamin Moore retailers in the United States, a testament to his steadfast belief in a tried-and-true business philosophy: “be the best at what you do.”

After high school, Bob earned a degree in business while following in his grandfather’s footsteps working as a wildland firefighter, an occupation that proved very fulfilling to Bob, who continued with the organization for several years after graduating.

Eventually, Bob began to feel as though it was now or never to utilize his degree, and joined the Sherwin Williams advanced management training program, going on to work for the company for thirteen years, until hearing about a Benjamin Moore store up for sale from an encouraging colleague. Bob’s experience, business savvy, and passion made him the right person for the job, and he took over the operation in 1995. We were able to catch up with Bob’s daughter, Carey, who works alongside her father at the store, to get a better sense of how they’ve managed their exponential growth and what they have planned for the future.

Carey elaborated on the philosophy that’s taken East Bay to where they are now, discussing how they spend a lot of time at their store talking about what it means to be the best at what you do. “With Benjamin Moore, you’re not always going to have the cheapest can of paint, and you’re not 50 stores that can serve everyone in every market. But what we can do is provide really great service to people in our location, have great employees, have good pricing and good products and be the best at what we do every day. And that really hasn’t changed at all over the years—I don’t think Bob has ever faltered on that.” Singing her dad’s praises appears to come naturally to Carey, which isn’t always an easy task for a father/daughter duo with blurred lines between work life and home life. But Carey has nothing but admiration for her dad turned boss. “Some people are afraid to admit when they’ve made a mistake, but my dad is a big believer in taking a levelheaded approach to make it better.” Elaborating, Carey states, “he understands that customer relationships are for life.”

Also instrumental in their success has been Bob’s ability to create a workspace that people genuinely enjoy coming to everyday.

“There are so many inside jokes and laughs and pictures and memories over the last 25 years,” chuckles Carey. “But I would also say that his philosophy plays into what he expects and wants from everyone. He doesn’t put any limits on anyone—he genuinely believes that anyone in his store can do anything.” It seems clear

March/April 2020 | ALLPRO INDEPENDENT | 7

Q:

w h at ’ s b o b ’ s fav o r i t e

lo c a l s p ot ?

CAREY: HE LOVES A LOCAL BAR CALLED CLUB MALLARD. IT’S A FUN SPOT, AND THEY’RE ACTUALLY RENOVATING USING OUR PAINT RIGHT NOW. Q: C of f e e or te a ?

A: Coffee Q: Stay i n or go o u t ?

A: My Dad’s a pretty social guy. He has a lot of friends and activities to keep up with.

Q: W h at d oe s yo u r d a d d o w h e n h e’s n o t a t wo r k ?

A: He’s equally as passionate about his hobbies as he is his work. He’s an avid golfer and he loves fly fishing!

East Bay P ai nt C e n t e r’ s fr i e ndly and kn owle d ge a b le sta f f h as be e n p r o u d ly serv i ng th e i r lo c a l c omm u ni ty of A lb a n y, C al i f orni a si nc e 1 9 9 5 a n d ha s e arne d t h e p r e s t i ge o f bei ng one of th e la r ge s t si ngl e- store B e n ja m i n Moore re tai l e r s i n t h e Uni t e d St ate s. E a s t B a y P a i n t C ente r i s h e av i ly i n v e s t e d i n i t s c om muni t y, wi t h t i e s to t h e Al b any R o t a r y C lu b , the Al b any C h a m b e r o f C omm e rc e , th e A lb a n y Li t t le L eag u e , and th e A lb a n y Educ at i on F und .

that Bob is the type of boss that intuitively motivates his employees to rise to their own potential—perhaps one of the reasons their team of 14 have managed to stay such a tight-knit group. Carey describes their team as a diverse group of individuals with strong industry backgrounds. “They really bring a lot to the table,” shares Carey.

But Carey makes it clear the thing she values the most about the team is that the relationships clearly transcend business.

“There have been a number of personal things we’ve had happen in the store and in our lives, and it’s always been really impressive how we show up for each other.”

Carey explains what it’s meant for Bob to have ALLPRO in his corner throughout his tenure with East Bay Paint Center.

From a personal perspective, Bob has made many lifelong friendships through the organization; people he really looks forward to seeing at ALLPRO events. From a professional perspective, Carey praises the plethora of resources made available to members. “It’s the first place we look when we’re seeking out a new vendor or a refresh on a website.” In fact, East Bay Paints is looking into revamping their digital presence in 2020, with a new logo already

8 | March/April 2020 | ALLPRO INDEPENDENT

designed and waiting to be unveiled.

“We’re really excited about it!” she gushes.

They also hope to rely more heavily on a social media strategy and online marketing more readily, looking to experiment with services like MailChimp to help increase the reach of their marketing dollars and alleviate some of the leg-work for management. “I think as a small business owner, you wear a lot of different hats and usually when something new comes up, it’s just another badge to add to the hat. These new services can really help with that,” explains Carey.

Although East Bay Paint Center is clearly up for whatever challenges the future might hold and ever evolving with new perspectives and changes, it’s unlikely we’ll see any disruption of their core values, which have enabled their massive success over the years. “We are in an age when things are becoming super digital and less personal, but I think there is always that space for human connection,” shares Carey, offering a few final thoughts.

A sincere congratulations goes out to Bob, Carey, and the rest of the East Bay Paint Center team for 25 years in business.

Your ALLPRO family wishes you many more years of continued success!

WATERLOO, ONTARIO

•

RENO, NEVADA

•

VANCOUVER, BRITISH COLUMBIA

10 | March/April 2020 | ALLPRO INDEPENDENT

SPOTLIGHT | CHATTANOOGA PAINT AND DECORATING

Daisy Moffatt Photography

chattanooga paint and decorating n the last several decades since opening its doors in 1985, Chattanooga Paint & Decorating has changed hands a number of times, but it seems to have found its leader in James Praytor, who purchased the company when the then-owner, who had been running the operation since 1991, stumbled into some personal and health related issues that took him away from the job. James had been working at the store since 1991—originally in a part-time capacity as he worked his way through college—and officially took over the store in 2012 alongside his wife. Although James describes himself as “too lenient” of a boss, he’s clearly engineered a recipe for success, as last year they opened a second location to fill a gap in the market that their county’s rapid expansion has left. “Our locations have grown farther apart from where the construction is,” reiterates James, “so with Benjamin Moore’s help, I was able to jump on the boat and we were lucky enough to find some good people to move over there and run the store.” Reflecting, James says, “you’ve got to seize those moments when they come.”

Despite their county’s recent (and rapid) development, James says the Chattanooga community has been able to retain that small-town feel that he’s come to love, a characteristic that seems to be mirrored in the smaller community that has wound itself around James’ store, too. “We’re really more of a family than a work place, so I try to bring new people in that are going fit into that family and not cause waves. Because you don’t want to come to work every day if there’s conflict. It’s been difficult at times, but we’ve been very fortunate in finding good people and retaining them. Our turnover is extremely low.” Perhaps part of the reason Chattanooga is able to retain such great people is that James understands the

importance of empowering his employees, which, in turn, allows him to maintain balance between his role as a father and husband and his role as a boss. “There are sometimes when I work at home, but most of the time when I leave work, I leave work. And it’s just something you have to teach yourself. You can’t do it all.”

James elaborates, sharing how “teaching and educating the staff really helps alleviate a lot of that stress of worrying about what’s going on when you’re not there.”

The education piece is also one of the main things that sets Chattanooga apart in a competitive market—why they have customers that have been returning for decades. “We try to offer the best customer service there is,” shares James. “It doesn’t matter if you’re a homeowner or our biggest contractor, you still get the same level of service.” James explains how having great products is one thing, but great customer service is what gets you that repeat business.

And for James, that higher-tier of customer service stems from investing in his staff’s education, as well as his own, something he praises ALLPRO for helping with.

“I could call up almost any [ALLPRO] member and they are willing to discuss a problem you are having or help you out or suggest something they are doing that’s working,” says James, adding, “at all these shows or events, the breakout sessions are great. Most people don’t get a chance to sit down and listen to another member say ‘we’ve been through these mistakes, you shouldn’t do that’—you wouldn’t normally get that otherwise.” In addition, James recalls the struggles of being a small fish in a big pond before their ALLPRO days: “being originally a single-store location, a lot of vendors won’t even talk to you. With ALLPRO, you have access just like the multi-store operations.” With more selection comes better offerings, especially for independent retailers, whose

March/April 2020 | ALLPRO INDEPENDENT | 11

Q:

W h at

d o yo u

d o w h e n yo u ’ r e n ot at w o r k ?

OST OF THE TIME IT’S M ATTENDING KIDS EVENTS. I’VE GOT TWO BOYS SO A LOT OF SPORTING EVENTS. BESIDES THAT, HANGING OUT BY THE POOL. WE GO BOATING ALL THE TIME. I’VE GOT A ROAD RACING CAR THAT I RACE ON OCCASION. strength is their ability to hand-pick their assortments. “You can choose the best of this company, and the best of that company, and then offer that to your customers, so they know where to go if they want the best product selection.”

Some of these products, James shares, he has customers driving upwards of an hour-and-a-half to get their hands on, like the Benjamin Moore Natura Line, which has zero VOC and is virtually odorless.

“We brought that in immediately,” shares James, stating it spoke to where the market is heading. “It’s gotten a lot easier to carry green products these days, with most of your major manufacturers building a green aspect into their product, and Benjamin Moore has been at the forefront of that.” Although offering green products in store was more than a strategic move, it’s indicative of the way in which James operates his business, which is all about giving back to his community, helping push the needle in the right direction where he

Q: F avor it e Local S pot t o Vis it: A: The Riverfront. There’s a huge aquarium, large dock space, open green space. There’s a lot going on there all the time and it’s just cool to go hang out or crowd watch.

Q : Cok e or Pepsi?

A: It’s gotta be Coke.

Q : S u n r is e or Sunset?

A: Sunset

can. Chattanooga Paint frequently donates products and raises money for not-forprofits; when Habitat for Humanity was in town, Chattanooga Paint eagerly supplied materials, and they frequently assist their school system with donations of gift cards and products to raise funds.

Looking to the future, James is optimistic—and ambitious, hoping to continue their growth and expand their sales team by opening two or three more stores in the next few years. But his eyes are still focused on maintaining his store’s key differentiators: “Continue offering the best product and the best customer service in our area. That’s all we can do. Sell ourselves as the most educated personnel, the best product, and the best service on the market.”

We have no doubt we’ll be seeing and hearing more from James in the next few years, and we wish him the best of luck and a sincere congratulations on his success so far!

We’re proud to have you on our team!

C hat t an ooga Pain t & D ecor at in g has b een pr oudly serving t heir local commu n it y in H ixs on , T en n es s ee s ince 1985, a n d open ed u p it s s econ d s t or e in t he ar ea j u st l ast y ear. T he in d epen d en t ly- own ed r et ailer is an autho rized B en j amin Moor e d ealer an d s pecializ es in in t erio r and e xt er ior pain t an d s t ain s u pplies an d commercial-grade t o high - en d coat in gs .

12 | March/April 2020 | ALLPRO INDEPENDENT

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STOCKHOLDERS | IN DEPTH

pathways to profit At this past Fall’s ALLPRO Stockholder Meeting, Dan Tratensek, the Executive Vice-President of North American Retailer Hardware Association and the Executive Editor of Hardware Retailing Magazine, treated our attendees to an enlightening presentation aimed at illustrating the potential pathways to profit available to retailers hoping to achieve their business goals in 2020. Although Dan’s work is focused primarily on the hardware industry, his insights are universally applicable. As Dan phrases it, “All retailer models are the same, whether you’re selling bowling balls or paint cans.” Success, Dan says, is entirely rooted in a keen attention to the details—the small things that add up to create big impacts.

an points out the ways in which many retailers define their businesses by their top line (the sales they are generating). While this figure is incredibly important, particularly for measuring the altitude of your company (the margins you have to work with), Dan argues for a more holistic approach, one that places equal weighting on the bottom line (net operating profit), as well as everything that happens between the two.

When you start to look closely at these smaller aspects that contribute to a business’ overall health, you can better identify potential areas of improvement and better articulate an actionable plan for growth.

These middle components, Dan argues, make the difference between an average operation and a highly successful one.

Just as people tend to identify with their top line, they also tend to budget and plan with the sole purpose of raising that number.

Because of this, they also tend to pin their plans for growth on external factors, like a new housing complex finishing construction nearby. By looking more closely at the bottom line and dissecting the contributing factors that occur between the top line and the bottom, you’re taking control of your growth and planning in accordance with internal factors which are subject to your own influence. “You could double your sales next year and you could still lose money,” shared Dan, in an effort to illustrate his point.

Another challenge for retailers is understanding how to measure the success of their business. Most look to the previous year’s numbers to ensure they are trending in the right direction, but the reality is that

14 | March/April 2020 | ALLPRO INDEPENDENT

gives retailers little information in terms of how they relate to their peers. Eager to create a better model of comparison, the NRHA teamed up with the PDRA for a study, called “The Cost of Doing Business,” that collected 100 paint retailer’s financial reports, anonymized and crunched their numbers to produce a data set reflective of the industry as a whole. The NHRA then evaluated their findings and separated the retailers whose net operating profits were in the top 25%. They wanted to discover what it was these top performers were doing differently, and what other paint retailers could do to replicate that success. What they found was that these key differentiators all occurred in that oftenoverlooked middle space between the top and the bottom line. The top performers had an average net operating profit of 6.1%, while average performers had a net operating profit of 2.3%. Elaborating, Dan shared that these top performers had 4% lower payroll expenses (higher sales per employee and better management of employee hours), 62% higher sales per transaction, and higher sales and inventory per square foot (better use of space by offering a great selection of products), contributing to lower operating costs overall by 360 basis points. By increasing the efficiency of their businesses in these seemingly small ways, they were able to make a significant impact on their bottom line in tangible ways. These Key Performance Indictors (KPI’s) accounted for a 3.8% difference in net profits. And the best part? These are all factors that can be controlled internally.

Ways to improve Your Bottom Line: training Knowledgeable employees make all the difference in increasing transaction size.

Watching Hours Ensure you only have the staff in-store that’s needed for the amount of traffic you expect to see.

Expand your offerings When there is a wider offering of products, people tend to purchase more.

Evaluate Your Use of Space Look to fill in dead spots in your store, or perhaps, you might want to look at downsizing.

he best way to go about enacting change within your own business is to pick a few of these KPI’s and develop three approaches for each that will help you get closer to your goal. It’s also crucial to monitor the efficacy of those changes in order to measure your efforts against the results they are generating.

Dan’s model is all about looking first at your bottom line, and then at your revenue equation, because that determines how this revenue will be organized and utilized as it comes in. Once you have a firm grasp on your bottom line you can move on to focus on how you’ll increase your overall sales using the revenue equation.

What we see looking at this equation is that by targeting and influencing any one of these contributing factors (store traffic, conversion rate, or transaction size), it creates an exponential increase in your overall revenue. Pick one (or more!) of these aspects to target and create actionable plans around them.

s to r e t r a f f i c engagements)

( c u s to m e r

(percent

c o n v e r s i o n r at e o f e n g a g e m e n t s t u r n e d i n to s a l e s )

av e r a g e t r a n s a c t i o n s i z e

Revenue

March/April 2020 | ALLPRO INDEPENDENT | 15

Store Traffic:

Conversion Rate:

• Find a way of measuring your current store traffic (ask your security company, add frontdoor or cash area activity trackers)

• Customer Satisfaction Surveys: offer an incentive for customers to fill out a survey that will help you understand what you’re doing well.

• Increase current customer visits (follow up with customers who haven’t been around in a while, offer promos to returning customers, offer in-store bounce-back coupons, loyalty program) • Increase brand awareness to bring new people in the door (community involvement, outside sales program, outreach, advertising, implement a digital marketing strategy, create prospect lists)

• Learn from those who aren’t shopping with you: so you can learn what you could be doing better.

• Ask customers who come in and don’t purchase anything why they left without buying anything: Most of the time, people report leaving empty-handed because they couldn’t find what they were looking for; 80% of the time, the store actually had what they wanted.

• Training: Ensure your staff is knowledgeable about your in-store offerings and inventory to eliminate any missed opportunities.

Pro Tip Reach out to contractors or local businesses who aren’t buying from you and ask what your competitors are doing that you’re not.

[Try: “We’d love to earn your business, but in the mean-time, could you tell us what is keeping you with our competitor?”]

Transaction Size: • Training: Again, this is where your staff’s expertise is huge.

Knowing when to suggest an additional item (and what that item should be) can make a huge impact.

• Cross Selling: Invest in products specifically geared toward building transaction sizes for people who are already buying stuff from you. It can be as simple as carrying garbage bags in-store (every contractor needs plenty of them!).

he best way to measure the overall health of your business T and the impact of your efforts year over year is to plug your own numbers into the strategic profit model, which Dan calls the ultimate report card for your business. This combines several data points to give you a better understanding of the return you’re earning on your investments. By working backwards to this equation, you’re able to identify potential areas of improvement and move toward profitable solutions.

16 | March/April 2020 | ALLPRO INDEPENDENT

Preliminary equations profit margin

asset turnover

Return o n assets

tota l assets

net worth

financial l everage

Strategic Profit Model return on assets

financial leverage

Return o n net wo rth

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INDEPENDENT | MARKETING MEMO

build your digital sales offering: shopify eople have been singing the praises of digital marketing for some time now, but for so many of us, the concept still feels foreign and unfamiliar. Between the sheer number of platforms, tools, and capabilities, it can be hard to know where to start, or which spaces to grow into if you’re already in the online world. It’s easy to let the intimidation factor overwhelm and deter, but the reality is that the benefits of having a consistent and efficient digital presence are so lucrative, you can’t afford not to! For sales professionals utilizing online tools, 63% reported that they saw an increase in

their sales. Additionally, businesses who have employees that are social-media savvy are six-times more likely to surpass their sales goals. Although these stats seem to speak for themselves, a lot of people get tripped up when they have already invested dollars in a marketing campaign or social media pages, and feel they aren’t seeing a return. While this is certainly frustrating, it doesn’t mean that digital marketing won’t work for your brand. It just means that you need to re-think your approach. In fact, although these platforms provide an amazing opportunity to build community and increase brand awareness, it works best

18 | March/April 2020 | ALLPRO INDEPENDENT

when you remember your original mission: to sell more!

Every time you or one of your staff members engages with a potential customer, it’s another potential sale. This is true whether they are in your store or on your Instagram. In your store, you’ve invested in training and educating those employees so that they can guide your patrons through the experience and hopefully, get them to the cash register. Think of the online platforms you’re on as a virtual version of your store: how can you better engineer it so that those sales opportunities are as plentiful as that in-person interaction?

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Build your digital sales offering: shopify – continued Shopify, one of the best-known brands in the e-commerce world, is a great tool for small business owners, allowing you to “tag” products in your social media posts that can lead to an instant sale. Essentially, the software enables you to upload all your products (or however many you choose) to your very own Shopify store, and then link back to that product in your Shopify store through any relevant images or posts. They have

been instrumental in the democratization of e-commerce software, which used to be very complicated to set up, requiring the help of highly specialized workers. Today, it’s easy to set up, and can be done in as little as fifteen minutes. They also allow for easy management and tracking of shipping requirements, inventory, and sales. They have a number of different plan types, allowing you to find the right fit for your business.

Pro Tip Sometimes with online sales, you’ll see a spike in sales from a different region. That’s great!

It means your reach is expanding. Encourage out-of-towners to continue to purchase through you by including a little coupon for their next purchase inside your shipping envelope.

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20 | March/April 2020 | ALLPRO INDEPENDENT

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DÉCOR | DONE RIGHT

26 | March/April 2020 | ALLPRO INDEPENDENT

Décor Done Right: Window Treatments This article is based on a presentation given by Shannon Scarrella of Hirshfield’s Paint and Sharon McGuckin of JC Licht at November 2019’s ALLPRO Stockholder Meeting. great way to diversify your inventory, increase your cash flow, and add value and convenience to your brand is through adding window treatments to your product and service offerings. Particularly if you are just starting to branch out into décor offerings, window treatments are a tremendous place to start. Why? In the United States alone, window treatments is an eleven billion dollar industry, with 70% of that revenue driven by consumers who are already decorating.

This means that a good chunk of that market is already walking through independent retailers’ doors every day. That means you already have an advantage over the big-box window treatment stores, since they pay between $100 and $200 per new customer acquisition; you’ll be selling to existing customers who have already trusted you with their paint color! Additionally, the sale cycle of window treatments differs significantly from the paint cycle, with a jump occurring in November and December which can help make up for the downturn in cash flow that occurs for many paint dealers in the throes of winter.

Many retailers will tell you one of the toughest things about being a paint dealer surrounded by massive chain stores like Home Depot is price competition. We focus on quality rather than low prices in the independent paint world, but window treatments offer a significant advantage. Their margins are between 38 and 60%, which allows you to drop your margin on paint when you need to focus on being competitive. Another advantage here is that there is very little risk involved, with 50% paid upfront at the time of the purchase, and no need to hold massive amounts of inventory in-store.

You’ll also need to choose a sales model that works for your business. Some opt to offer the service in-store, others provide in-home consultations, and some offer a hybrid of both. Note that in-home offerings can be sold at a higher price, and typically generate more sales. Another option is to invest in a to-the-trade model, by selling to other professionals already working in the industry. There are benefits to each model, but what will be most profitable and beneficial for your company will depend on you, your staff, and the resources you have available to you.

When it comes to making space for any new service or product, you’ll need the appropriate tools to make the endeavor successful.

Ensure you have a well-thought out system in place before you give it a trial-run. Implement any scheduling software you need to your computers and operating systems. Without a reliable tracking system to track your numbers, you won’t be able to measure the impact you’re having, and, more importantly, you won’t have the data you need to make an evidenced-based decision about whether you want to continue year after year with it. Create a display in-store to raise awareness (experts suggest 40-400 square feet dedicated to a display in-store), and make sure your employees are offering it as a service to their customers. This can generate a huge amount of sales, but not without investing some marketing dollars and man power in spreading the word. Get yourself and your staff excited about it with vendor training programs and ensure you have everyone on board.

Make sure you set a goal for yourself and keep at it! These small shifts in strategy can have a huge overall impact in terms of bringing in sales, all while adding value to your customers’ shopping experience.

March/April 2020 | ALLPRO INDEPENDENT | 27

DÉCOR | DONE RIGHT

To execute a window treatment offering in your store, you’ll need: SALESPERSON: In - S t or e: This could be someone already in-house that is looking to expand their horizons.

Are they great with their customer engagement?

Knowledgeable about your products?

In - H ome: This person should have a high degree of professionalism, since they’ll have to maintain control even when their surroundings are unfamiliar. They’ll also need to be good at actively seeking out sales opportunities.

Local D es ign er : If you already have a connection with a designer in your area, this could be a good place to start, as most are usually looking to expand their business.

INSTALLER:

In the United States alone, window treatments is an eleven billion dollar industry, with 70% of that revenue driven by consumers who are already decorating. This means that a good chunk of that market is already walking through independent retailers’ doors every day.

28 | March/April 2020 | ALLPRO INDEPENDENT

This person will be the last person to give an impression of your business, so their demeanor and professionalism is key to getting a returning customer.

In - S t or e: Maybe this person is already working for you, and is comfortable navigating the city and being in other people’s homes.

Con t r act or : Perhaps you already have a relationship with a contractor that is looking to pick up some new business.

Local Han d yman : Trust is the key ingredient in this relationship, so it doesn’t really matter where you find this person, it just matters that they have the skills that you need and you trust them to represent your brand well.

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DÉCOR | DONE RIGHT

compensation model: different ways to reward your staff and maintain profit margins There are pros and cons to each model, but what works for you and your staff is a conversation that should occur well before customers are involved.

H OU R LY: Plus 1.5%-3% of the sale.

S PIF F S : If your salesperson is working in-home, you should compensate them for the lead.

COMMIS S ION : 10-12% of sale, or 20-25% of the gross profit margin (this takes into account installation, product costs, freight, and errors) S ALAR Y PLU S : This is a good model to start with before moving toward commission-only payments.

ALL P R O W I N DO W T R E A T M E N T V E N D ORS : SPRINGS WINDOW FASHIONS/GRABER: Full-line window treatment dealer with offerings in commercial, residential, hard, and soft treatments.

SHADES OF COLOR

BY COMFORTEX WINDOW FASHIONS An exclusive program for ALLPRO members, includes cellular and roller shades in 16 colors that pair perfectly with Benjamin Moore and PPG paint colors.

30 | March/April 2020 | ALLPRO INDEPENDENT

LAFAYETTE INTERIOR FASHIONS: Family owned with a full line of products.

HORIZONS WINDOW FASHIONS: Operates as the daughter company of Springs Window Fashions and offers top treatments, draperies, side panels, hardware, and roller shades.

t o y y

treatment offering in your store, you’ll need:

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Proposed PACOA Expansion ne of our valued wholesalers, PACOA, is planning to add 22,300 square feet to their headquarters located in Port Washington—a project estimated to cost $6.8 million dollars. The expansion will enable PACOA to consolidate products currently spread out among several commercial warehouses in Suffolk County and 30 tractor trailers.

Over the years, PACOA has asserted itself as a leader in our industry, taking enormous strides since the company’s founding in 1969. PACOA, also known as Paint Applicator Corp. of America, first planted its roots in the basement of a Merrick, Long Island home, where the owners assembled paint roller frames and delivered them to stores in the metropolitan area from the trunks of their cars. In 2005, the family-owned business made its move to Port Washington with the assistance of tax breaks provided by the Nassau County Industrial Development Agency. Now, they are seeking an additional round of tax incentives to complete their proposed improvements. The IDA unanimously agreed to formulate a plan to help negotiate a tax-break deal for PACOA. The company’s owner, Steven Geismar, whose father and grandfather originally founded PACOA, told the IDA, “We provide next-day delivery and that’s what our competitor cannot do. But we need the space to do it, to bring in more people to the facility so that we can do it cost effectively.”

36 | March/April 2020 | ALLPRO INDEPENDENT

The following article has been adapted from James T. Madore’s December 26th, 2019 Press Release.

PACOA currently employs 127 employees in the Metropolitan area, Pennsylvania, and New England. Their proposed expansion is projected to add an estimated six to ten jobs to the PACOA payroll within five years, shares the company’s real estate attorney, Daniel J. Baker, adding that PACOA exceeded their hiring commitment from their 2005 deal with the IDA, which they made in exchange for 12 years of property tax savings. This time around, PACOA is requesting 15 years of property tax savings, a sales-tax exemption of up to $405,550 on the purchases of construction related materials and equipment, as well as $50,900 off the mortgage recording tax.

Baker claims PACOA is “busting at the seams” but its growth is off Long Island, and that “opens the door to having the facility somewhere else.” Baker elaborates, sharing that a move is “not what Mr. Geismar wants. He was born and raised here. But without the tax benefits to provide for this expansion, the company will not be able to stay.”

IDA chairman, Richard Kessel, says PACOA is not a huge operation and therefore isn’t the typical business that the government usually extends assistance to, but because of their growth, he claims they are “the kind of business that we should be helping.”

The ALLPRO family wishes Steven and PACOA all the best with their expansion plans!

FINAL COAT | MEMBER MILESTONE

100 YEARS IN BUSINESS: BORN PAINT This year, one of our ALLPRO family members is celebrating 100 years in business, a massive milestone which many of us hope to emulate. We want to extend a sincere congratulations to the entire team at Born Paint for this very special anniversary and all their success over the years.

orn Paint opened its doors in 1920 and has been proudly serving their community in downtown Peoria, Illinois ever since. It’s current owner, Paul Berres Jr., is proud to be continuing his grandfather’s legacy, who became involved with Born Paint back in 1950. They also own a second location in Bloomington, Illinois, called Don Smith Paint, which is celebrating their diamond anniversary this year, their 75th year in business. They offer services that DIY-ers, contractors, and industrial customers have been relying on for a full

century now, with many of their current customers being grandchildren of some of the store’s first customers in those early days.

They credit their success to their diverse range of offerings (architectural, industrial, automotive), their ability to retain great employees over long periods, and their staff’s genuine concern for their customers’ needs.

Born Paint became an ALLPRO member in 2002 and Paul shares that membership has helped elevate their business in numerous ways, “Gaining friends and being able to ‘talk shop’ with so many knowledgeable people from across the country is priceless.

38 | March/April 2020 | ALLPRO INDEPENDENT

We all seem to have the same struggles and aspirations.” Looking toward the future, Paul and his two brothers, who have spent the majority of their lives enmeshed in the business, so much so that they “don’t know what else they would do with themselves,” hope to maintain their status as the “go to” paint store and a great partner to their many customers. If Paul and his team make it look easy, it’s because they share in the adage, “When you enjoy what you do it’s never work.”

We’re so proud to have you in the ALLPRO family, Born Paint!

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