ALLPRO Independent Magazine March/April 2022

In dependent March/April 2022

O-Gee Paint

A brother sister duo brings hard work and diverse product offerings to their successful business in Miami, Florida

+

Loconsolo Paints

Serving and supporting the Brooklyn, New York community for more than 65 years

B US I N ESS VALUATI ON

B R AND BO OTCA M P

A L L PRO TA L KS

Knowing what your store is worth and how to value it for sale or purchase

Stand out in an oversaturated market with a new or refreshed brand strategy

Spectrum Paint’s Gentry Stafford shares how her family history, education, and involvement in ALLPRO has benefited the business

An ALLPRO® Publication

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AT THE MIKE | FUTURE

@ A L L PROCOR P

GROWTH OF THE ALLPRO INDEPENDENT

MI CHAEL BEAUDOI N Executive Vice President ALLPRO Corporation

hope you enjoy this issue of the ALLPRO Independent as it is our largest issue to date. ALLPRO has been in existence since 1960 and the ALLPRO Independent, which was formerly known as the Scouting Report, has been around since the beginning.

The Scouting Report was designed to be a newsletter serving many of the same functions that the ALLPRO Independent does today such as providing member profiles and allowing suppliers to advertise their brands.

ALLPRO has evolved as a buying group over the years and has become a very recognizable and prominent part of the independent channel. As such,

the ALLPRO Independent has been part of that evolution. What was once a newsletter has now become a much more robust industry publication. In addition to insightful member profiles, we now include professionally edited content designed to help members better run their business. We also now hire professional photographers helping to showcase the members in the best possible manner. The ALLPRO Independent now attracts more advertising amongst the ALLPRO suppliers, who see it as an opportunity to market their key products and brands within the group. This is a result of the group growing and becoming a more influential part of their business.

This process of evolving the publication started in 2017 with the first hire of an outside company to help elevate the publication. After two years, we felt that we could make it more impactful by going with Gallon Creative, given their greater industry experience. This allowed them to better profile the members and help expand the publication. The most recent issues have featured individuals within the membership that help drive the business as well as many best practices that other members can learn from. This issue offers guidance on how to value your business and helps educate members on the latest trends and data.

S P O T L I G H T:

(Continued on page 5)

6 O-GEE PAINT A brother sister duo brings hard work & diverse product offerings to their successful business in Miami, Florida 10 LOCONSOLO PAINTS Serving and supporting the Brooklyn, New York community for more than 65 years

16 ALLPRO TALKS Spectrum Paint’s Gentry Stafford shares how her family history, education, and involvement in ALLPRO has benefited the business

30 ENROLL IN ALLPRO UNIVERSITY Six-Point Creative unveils an innovative learning management system to maximize membership benefits

46 NEW DIGS IN THE NORTHEAST ALLPRO’s new distribution center is up and running in Sterling, Massachusetts

20 BUSINESS VALUATION Knowing what your store is worth & how to value it for sale or purchase

38 BRAND BOOTCAMP Stand out in an oversaturated market with a new or refreshed brand strategy

54 GIFT CARDS Weighing the pros and cons of adding gift cards to your product offerings

March/April 2022 | ALLPRO INDEPENDENT | 3

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INDEPENDENT | ON THE BLOCK

Congratulations to the new additions to our ALLPRO family!

SHARE YOUR NEWS! If you are involved in a community event, special project, charity, or are celebrating a milestone, please share your news with Susie Fontana at susanne.fontana@allprocorp.com.

Welcome to our ALLPRO family! Please join us in welcoming PINTURA PAINT STORE of San Antonio, TX; PINTURAS REM DE MEXICALI of Baja California, Mexico; PRESERVE PAINTS of Birmingham, AL; and WEST SIDE DECORATING CENTER of Saginaw, MI to the ALLPRO family of independent retailers!

Congratulations to the following members on their recent expansions: CANPRO DECORATING PRODUCTS has added new member CENTRO PAINT & DÉCOR LIMITED in Vaughan, ON and NABOR’S PAINT LTD. in Toronto, ON; GUTHRIE PAINT will be opening their second store, located in Clarksville, TN; IN.SIDE.OUT PAINT CENTERS opened their third store, located in Marietta, GA; PAINTERS ALLEY will be opening their fifth store, located in Arlington, WA; RICCIARDI BROS. opened a new store in Mountainside, NJ; SHILPARK PAINT added two new stores, one in Escondido, CA and the other in North Hollywood, CA; and SPECTRUM PAINT COMPANY has opened two new stores in Clearwater, FL and Jenks,

VOLUME 5 ISSUE 2

OK, and will be opening stores in Tampa, FL and Elkhorn, NE soon.

ALLPRO Leadership board president Josh Johnson Executive Vice President Mike Beaudoin Vice President of Merchandising Scott Morath Chief Financial Officer Jonathan Garrett Marketing manager Susie Fontana

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. on the cover: O-Gee Paint's Tiffany Chavez

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

(Continued from page 3)

As a result of the increased popularity of the publication, we have expanded the number of printed copies to go to as many individual stores as possible. In addition, we offer a digital

version that has received increasingly more views.

We look forward to continuing to make this more valuable to everyone by providing relevant information and

profiles that help connect the group.

If you are interested in advertising or being profiled in this publication, please reach out to Susie Fontana, Marketing Manager, for more information.

March/April 2022 | ALLPRO INDEPENDENT | 5

6 | March/April 2022 | ALLPRO INDEPENDENT

SPOTLIGHT | O-GEE PAINT

o-gee paint In the 1950s, a bookkeeper with big dreams named Peggy Schultz was balancing financials for O-Gee Paint, a small paint retailer in Miami, Florida. Today, her children, Peggy Sue and John, own that company, managing two retail locations, a pro center, a warehouse, and eight major departments.

In between those 56 years lies a whole lot of hard work. Peggy purchased the company from the original owners in 1964 after learning as much as possible about the industry and saving the capital required for such an undertaking. In 1988, when the sibling pair came back to the city, the company was ready for expansion, and Peggy officially brought the brother sister duo on board.

In recent years, O-Gee has pivoted to focus on a higher-end market.

“Instead of trying to compete with the Home Depots and the Sherman Williams’, we’re trying to get away from that and find a niche in the craftsman community,” explains Peggy Sue, “and after many years, we’re seeing the benefits.” This shift has been made slowly but surely, adding departments and products only when the team had the knowledge and expertise required. “You can’t just have one little display. It just doesn’t work that way,” clarifies John. “You have to have someone who is going to own the department and work it, and really invest in it.” It’s evident that O-Gee adheres to that classic philosophy: If you’re going to do something, you might as well do it right.

Andrew Wingard - Sales, John Schultz - Vice President, Peggie Schultz (started as a bookkeeper in 1963 and puchased the business in 1981, she's recently retired), Peggy Sue Wingard, President, Tiffany Chavez - Social Media & Marie Chavez.

Images: Tiffani Djiounasz

To our benefit, O-Gee joined the ALLPRO family in 1998, with John speaking about the importance of an e-commerce site before the internet boom (they’ve had their domain active since 1995).

Although the company doesn’t rely on online purchases for revenue, the siblings still stand behind the power of its exposure. “I think its presence there is important, it keeps us active on Google.

But people still aren’t comfortable with ordering paint online,” offers John, adding “paint just isn’t that simple,” and telling a story about a customer who didn’t realize they had ordered two different cans of off-white paint.

As much as John’s prophetic wisdom around the impending internet boom may have helped our members, John and Peggy Sue insist the relationship with ALLPRO is mutually beneficial. “Not only do you get the purchasing power and the recognition by being a member, you become part of the organization that’s looking out for you as an independent dealer. And you also have the ALLPRO branded products that aren’t available in other stores, so people come to you.” Similarly, Peggy Sue likens the trade magazines and ALLPRO shows to mentors. “At each show, I always bring a question to ask

March/April 2022 | ALLPRO INDEPENDENT | 7

other dealers on how they would handle a situation. People love to talk about their businesses. And I get great ideas that I’m able to incorporate into the store.”

Equipped with this competitive edge, a diverse product offering, and the brand recognition their status as a Benjamin Moore supplier affords them, O-Gee has experienced a good deal of success in their demographic shift, despite the hurdles COVID-19 placed in front of many small businesses. “The hardest part about being an independent dealer,” shares John, “is being independent.” Where many struggled to keep product on their shelves, O-Gee was able to maintain their stock and continue serving their community. Major companies often need to take care of their largest clients first, leaving smaller scale operations to fend for themselves when the going gets tough. “If you’re not a franchise, you don’t count,” suggests John.

“ALLPRO helps us count.”

Also among those helping O-Gee’s efforts count is their loyal team of 18 staff members, some who have been with the company for decades. John offers the analogy of a baseball team, each player with their own strengths. “You’ve got a bunch of different players, a lot of different positions, a lot of different talents. You can’t have five first basemen. You’ve got to have one.” After a pause, John laughs.

“And then there’s always a guy out in left field.” Peggy Sue provides a more tender description, hinting at the true affection they feel for what they’ve helped to grow. “They are like a well-used quilt. Some pieces are old, some are new, but everyone working together makes the place warm and comfortable.”

As Peggy Sue and John look forward to another year in the business, they are also working towards achieving their goal of becoming the premier paint department store in Miami. “We have the infrastructure in place to be able to double our sales.” Additionally, Peggy Sue (a self-proclaimed micromanager) has been working hard to improve her employee training processes, which will hopefully afford her at least one day off a week. But mostly, with Peggy Sue and John’s children now working with the company, they are excited by the prospect of passing the legacy down to a third generation.

8 | March/April 2022 | ALLPRO INDEPENDENT

Q:

w h at ' s yo u r fav o r i t e thing about miami?

"THE WEATHER! NO LONG SLEEVES HERE." - JOHN Q : When you ' r e n ot at wor k, what can we fin d you d oin g?

A: Our daddy raised us to work, he didn’t raise us to make money. We don’t have a lot of leisure time. Even when I’m watching TV, I have something in my hands. – John I try to get outside. I have a butterfly garden. Being in the water or sitting by a fire. – Peggy Sue Q : Ear ly r is er or n ight owl?

A: Early riser. – Peggy Sue I tend to burn the candle at both ends. – John Q : What' s you r favor it e pain t colo r?

A: I don’t have a favorite paint color, but I love green for nature, girl scouts, and money. – Peggy Sue

March/April 2022 | ALLPRO INDEPENDENT | 9

Jonathan Chiaro and Paul D’Auria of Loconsolo Paints

10 | March/April 2022 | ALLPRO INDEPENDENT

SPOTLIGHT | LOCONSOLO PAINTS

loconsolo paints he story of Loconsolo Paints began more than 65 years ago with brothers Jack and John Loconsolo – two paint contractors who understood the value of hard work and quality service. The pair opened their first store in Brooklyn, New York in an effort to source their paint products at a more competitive price, but their operation eventually flourished. Today, two of Jack and John’s grandchildren, Jonathan Chiaro and Paul D’Auria, are carrying on their legacy, and making their own mark, too.

Since joining the family business two decades ago, Chiaro and D’Auria have significantly expanded the scope of their operation, adding three new stores to the Loconsolo family.

Additionally, Chiaro, a graduate from New York University’s business school program, founded an outside sales program, helping to diversify their business beyond the local momand-pop retailer. “We’ve been looking for opportunities and growing ever since we came on board,” shares Chiaro. One of those opportunities came in the form of an ALLPRO membership. “The greatest benefit has been the chance to network with other independent retailers and troubleshoot common issues…and understand how they have resolved [them],” explains Chiaro. “It’s that peer-to-peer dynamic.”

Images: Tiffani Djiounasz

Loconsolo is focused on serving the paint and decorating market with a product offering reflective of their demographic, however, they remain open to adapting to changing demands in the market. COVID-19 influenced an expansion of their cleaning and hardware selections. “We’re a flexible organization that evaluates our client’s needs and brings in products accordingly.” This openness to change came in handy in more ways than one as Loconsolo Paints navigated the pandemic in one of the most restricted regions in the US. “We had to keep adjusting with new mandates, new clients, staff concerns. COVID helped us realize how important it is to listen to our employees, to really consider their concerns in your decision-making process. It taught us that consistent communication is tantamount. Your employees have to be able to find stability in your business.”

Chiaro’s team fluctuates between 30 and 35 people, a group he describes as “reliable, hardworking, and honest,” and he’s been careful to ensure the company culture he’s fostered over the years doesn’t take a back seat to their expansion goals. “[We] have to make sure we don’t lose that small mom-and-

March/April 2022 | ALLPRO INDEPENDENT | 11

pop family sort of relationship where people are connected to each other.” By holding regular team meetings, emphasizing teamwork, maintaining an open-door policy, and ensuring he never asks someone else to do a job he wouldn’t do himself, Chiaro ensures the Loconsolo team stays aligned on their goals and in good spirits.

It’s clear that while Chiaro certainly has a handle on the strategy side of things, he also understands that people are a big part of the equation, too. The community that he’s fostered within his own organization extends outwards into the neighborhoods he serves as well. “It’s mostly about listening to the community and hearing what it needs. Whether it’s donating paint for a skate park or donating some materials for benches that are going to be used for an LGBTQ+ project.” At Loconsolo, giving back is a given. Just as COVID-19 was overwhelming hospitals, Loconsolo Paints received one of the last shipments of masks. Chiaro opted to donate all 7,000 of them to local hospitals. Additionally, they avoid waste by passing along any mistints to Habitat for Humanity.

Although they’ve already made tremendous strides in the last two decades, Chiaro and his team have their sights set on more growth, a feat that Benjamin Moore, their major paint manufacturer, will play a big role in. “They have a number of programs which help us grow everything from our sales to our marketing to our store design.” Currently, they are working on expanding their 800-foot flagship store in Coney Island to accommodate a larger decorating department, all the while developing a new e-commerce website.

Chiaro sums up his strategy for 2022 as this: “Continue to grow, expand into every opportunity that presents itself.” We can’t wait to see what’s next!

12 | March/April 2022 | ALLPRO INDEPENDENT

Q:

fav o r i t e t h i n g a b o u t t h e c o m m u n i t i e s yo u s e r v e ?

THE DIVERSITY. NEW YORK CITY IS A MELTING POT. BROOKLYN HAS SO MANY DIFFERENT CULTURES. WILLIAMSBURG HAS A PUERTO RICAN, ITALIAN COMMUNITY. CONEY ISLAND HAS THIS RUSSIAN, HISPANIC COMMUNITY THAT’S REALLY VIBRANT. AND THEN YOU GO INTO THE BRONX WHERE YOU HAVE ITALIAN AND ALBANIAN COMMUNITIES. Q: W h at k i nd of m u s i c i s t y p i c a lly p layin g in you r s how rooms?

A: Depends on the store. We like to keep it PG, but we leave that to our store managers.

There’s more of a hip hop vibe in Williamsburg. Coney Island is more of a classic. In the showroom there’s classical or jazz.

Q: C ok e or P e p s i ?

A: Coke. Coca-Cola with cane sugar.

Q: Fa vori te p ai n t c o lo r a n d wh y ?

A: I would say red. A Ferrari red because it’s passionate, empowering, a little loud, and of course, love. It makes a statement and I think that’s the way to run an organization.

March/April 2022 | ALLPRO INDEPENDENT | 13

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DAILY MIX | ALLPRO TALKS

ALLPRO

TALKS With Gentry Stafford, Spectrum Paint As a self-described “paint kid,” when it comes to duties in the independent paint store, Gentry Stafford has seen and done it all. Stafford’s father, Travis Detter, founded Spectrum Paint when she was just a baby, and she’s been along for the ride ever since, watching and helping as the company has grown to more than 85 stores. Now as the company’s Vice

Allp r o i n dependent : w h at wa s yo u r f i r s t j o b ?

G e n tr y St a f f o r d: My dad, Travis, started Spectrum Paint in 1986 when I was around six months old. I’ve done it all around the store. Saturdays, back when we had one or two stores and my mom worked as a nurse, I would join dad and stamp brochures with our address and logo. I officially got paid as a young teen, going to work with my grandma in the summer doing miscellaneous office work.

AI : W h e n d i d yo u k n ow y o u wa n t e d t o follow i n your f a t h e r's f o o t s t e p s a nd joi n th e Sp e c t r u m t e a m ?

GS: My college degree is in public relations and advertising. During my college summers, I officially learned to tint paint and work in the store. The combination of the two and learning more about the business gave me a hunger to want to join. The year I joined, we had just opened our 14th and 15th stores.

AI : You’re t h e V i c e P r e s i d e n t o f M a r ket in g & Sto re De v e lop m e n t f o r S p e c t r u m P a in t. Wh at doe s your rol e wi t h t h e c o m p a n y c o ns is t of?

GS: I’m responsible for our marketing plan, budget, brand

16 | March/April 2022 | ALLPRO INDEPENDENT

President of Marketing & Store Development, Stafford is using her lifelong knowledge and college degree to advance the company’s strategic goals. We catch up with Stafford to talk about her career in the industry, keys to Spectrum’s company culture, and her other important roles – as a wife and mom to two boys. management, and team. I enjoy working closely with our sales and operations leadership to accomplish our company’s strategic goals.

On the store development side, I work with our operations teams on various aspects of new store locations.

AI: What has been the key to your career success?

GS: Listening and asking a lot of questions. Getting to spend a lot of time with my dad and grandpa has been particularly beneficial in learning so much about this business. Reading, listening to podcasts, and networking have all helped me grow on the marketing side of things.

AI: With more than 85 stores, Spectrum Paint has experienced consistent growth over four decades.

Any words of wisdom for a successful expansion?

GS: Employees. I can think of specific employees in each of our nine regions who are essential to growth in that region. Relationships within the industry and supplier partners have also been key.

AI: Wh at is t he compan y cu lt u r e like at S pect r u m Pain t ? Is it ch allen gin g to main t ain wit h 50 0 + employees ?

GS: Customer-centric. We talk about #thespectrumdifference –

flexibility, freedom, options, stability – a lot of traits and strengths that relate to being an independent paint dealer like so many of our fellow members. At our size, you rely on regional management to share and grow culture. We strive to have the flexibility and response-time of a small company, but broader options than a company-owned store or home center. The heart of Spectrum is people – customers, family, employees – one in the same. One person hustling to take care of customers and sell paint, multiplied by 500, but still the same as when Travis was doing it.

AI: Tell me about the connections or relationships you have created through the paint business.

GS: So many of our Spectrum family members have been around for most of my life! In a world where it can be easy to jump from job/place/relationship to another, there’s something special about working with people for 30, 25, 15, 10 years. In ALLPRO, being paint store owners no matter where in the world you live, brings a special connection. I’ve really enjoyed connecting with second and third generation “paint kids” as we are sometimes called.

AI : W h e n d i d Sp e c t r u m P a i n t b e c o m e a memb er of AL L P RO? H ow h a s i n vo lv e m e n t i n t h e gr ou p benef i te d th e b u s i n e s s ?

GS: In 1994 I believe. Developing relationships and friendships with fellow owners and suppliers has been a huge asset to our business and growth.

AI: Any memorable stories/anecdotes of past ALLPRO events/activities that have been a highlight for you?

GS: My son witnessed his first concert when Jefferson Starship played at one of our spring shows! I’ll forever tell him that. LOL! Going to ALLPRO in Hawaii at age 15 was also really memorable.

I know my age and year because *NSYNC’s second album came out the same week! It was a big deal.

AI : H ow d oe s you r s t o r e u t i li ze /le v e rage the AL L P RO b ran d ?

GS: The ALLPRO brand allows us to sell products that customers can only find in our stores. When you see ALLPRO products being promoted on a flyer or on the job, you think of your local ALLPRO dealer.

AI : What is your favorite Allpro branded product?

GS: I love the ALLPRO plastic buckets and even small mixing containers. On social media, a lot of pros and even builders/designers hide the brand of paint they are using, but I enjoy spotting ALLPRO products in the background. I was once watching a reality tv show that was filmed in one of our markets and one of the leads had a paint project. It wasn’t a paid promo or product placement, she just bought her own paint and had a small project. The only way I could tell that she bought paint from us was her small ALLPRO 2.5-quart mixing container! I was pumped!

AI: T ell u s ab ou t you r r ole on t he AL L PRO Pu r ch as in g Commit t ee an d wh at it entail s.

GS: I’m brand new to the Purchasing Committee, so I’m learning a lot. We review ALLPRO lines, potential suppliers, and report to the board for final decisions. We also work with suppliers on specials and promotions.

AI: What ar e s ome of you r h ob b ies? What do you lik e t o d o in you r f r ee t ime?

GS: My husband and I enjoy serving at our church and in the community. We have two boys - 18 months and five years. We’ve had a ton of fun coaching our son for the first time in sports this year. I love being active, which is a different active now as a mom, but I wouldn’t trade it for the world.

F ast as t F i v e :

T ALKS SK N e tfli x or nov el s ?

b ot h

N e u tr als o r b o l d c o lo r s?

Base b all o r f o o t b a l l ?

f o ot b a l l

E ar ly b i r d o r nig h t ow l ?

C ou n tr y o r R o c k?

neutrals

night owl

pop rock

March/April 2022 | ALLPRO INDEPENDENT | 17

Understanding the Basics of Business Valuation Knowing what your store is worth and how to value it for sale or purchase

If you’re a store owner, chances are that at some point you’ll either sell your store or acquire another business.

But before you go and attach a sales price to your store or put an offer in on an existing establishment, it’s important to assess the complete value of the company.

A business valuation is a beneficial tool to help you determine an equitable purchase or selling price, but it also goes beyond business exchanges. In addition to assessing the financial health and potential of your business, guiding business strategies and tax planning, valuations also help to fairly determine the business assets in the cases of death, disability, disaster, or divorce.

PREPARING FOR VALUATION For business owners purchasing or planning for future growth, transition, or family succession, an accurate valuation is a critical component in determining the actual worth of the company.

Sean Paul purchased Dugan’s from his father-in-law in January 2021 and knows firsthand how important the store valuation process is in acquiring a family business.

“I think that’s one of the biggest hang-ups for ALLPRO members because typically, the owner of the company has multiple children, either involved with the company or not involved,” Paul says, explaining how tricky it can get when the owner’s wealth and what they’ve built is tied to the value of the company. “When these owners are thinking about succession plans, it’s a really difficult plan for them to come up with how they can [support] their children.”

Fortunately for the family, Paul’s unique background as a chartered professional accountant, with a certification in business valuations, along with his understanding of the inner workings of the company, gave him insight and expertise in the valuation and business transaction.

“I worked for the company for five years before [my wife and I] were able to purchase it,” Paul details. “And when I started there, I was a CPA. Instead of going into the financial role of the company, I actually started on the paint counter. And then I worked in the flooring department, and then in the warehouse. And then I drove the transfer truck and then I went to all our locations and did whatever I could do to help. I was able to learn from the ground up at the company, which was awesome. So, I knew a little bit about everything by the time that I was taking the company over.”

Once Paul was promoted to store manager, he was also responsible for the company’s

20 | March/April 2022 | ALLPRO INDEPENDENT

advertising and accounting division. And then approximately a year before he and his wife purchased the company, Paul became the chief financial officer.

“At that point, I was pretty much sitting in an office, taking care of all the finances,” he explains.

Paul’s extensive background in accounting and business valuations, along with the breadth of knowledge in Dugan’s business operations made him extremely qualified to conduct his own business valuation on the company prior to purchasing.

But for stores that don’t have a built-in business valuator, Paul suggests finding and hiring a valuator who has experience in the independent paint industry, and someone you can trust.

“I think 99% of people should hire someone to help if their goal is to sell it at fair market value,” he states. “I would highly recommend finding someone who has experience in a similar industry, similar operations, similar profitability, and in a similar number of locations.”

If you don’t know of any professionals in your area, Paul recommends reaching out to a CPA. In smaller business transactions or a sale to family members, an accountant experienced with business valuation may be able to provide an acceptable sense of a company’s worth. And if you’re hiring someone as part of a business transfer, be careful to select a valuator or accountant who both parties agree on in order to steer clear of disagreements or competing valuations.

VALUING A COMPANY Once you have a valuator that you can trust and have a good rapport with, you’ll need to determine the right level of valuation complexity for your store situation. Depending on the type of transaction, reports range from a simple valuation or a top-level report with limited details, to an estimated report with a mid-range level of detail, to an extremely comprehensive analysis. Comprehensive reports involve a thorough review of information, may include market research, a breakdown of numbers, and are more common in complicated acquisitions. The more detailed the report, the higher the cost and assurance that the valuation correctly reflects the company’s worth.

While there are multiple methods and approaches to valuing a firm, Paul chose to use EBITDA – earnings before interest, taxes, depreciation, and amortization – to conduct the business valuation on Dugan’s and measure the company profitability. EBITDA is a marketbased approach, one of the three most commonly used valuation approaches. A market-based valuation relies on finding and comparing similar public companies and reviewing price/earnings ratios and recent transactions. Income-based valuation is based on the future cash flows of a business, while asset-based valuation is based on the value of the company’s assets after removing all of its liabilities.

Because of COVID-19 and the rollercoaster of the last few years, Paul determined it would be most reasonable to come up with a rolling average over three previous years.

March/April 2022 | ALLPRO INDEPENDENT | 21

“You basically take your bottom line, your net income, and then you go back in and take out depreciation - take out taxes because everyone’s tax situation is different,” Paul explains. “When I bought the company, I actually bought all the company’s assets. So, I was able to come up with my own depreciation strategy based on what assets we bought and how we valued it.”

While Paul purchased the assets of the company, he didn’t buy the stock.

“I actually created a new entity and bought all the assets of the old company,” he explains, adding that depending on the number of successful stores you’re acquiring, you might take EBITDA and multiply by .7. “We have three successful stores at the moment…so basically, I paid a premium because of multiple locations. And that’s a normal thing to do.”

If you’re working with a valuator, be prepared to provide plenty of information – everything from basic financial statements, the prior year’s tax return, business location and facilities ownership, number of employees, to patents and shareholder agreements. In more extreme cases, if an exhaustive report is being prepared, you may be requested to share a sales breakdown by customer, information on supplier concentration, and provide your valuator with an on-site visit.

PRICE & VALUE Once a valuation is established, it’s important to ensure everyone approves before moving forward.

“I presented [the valuation] to my father-in-law, he got in touch with his CPAs and had them review it and make sure they were in agreement on the reasonableness of it. And all parties agreed.”

In addition to his father-in-law consulting outside expertise on the matter, Paul also reached out to a partner at a firm he previously worked at and had him review his assessment to ensure nothing was missed.

After the valuation is complete, the seller and the buyer must agree on a purchase price – a number that can differ from the actual value of the business. It’s important for both parties to understand the difference to guide negotiations and temper expectations if the purchase price doesn’t match the outcome of the valuation.

Following the transaction, both Paul and his father-in-law were pleased with the purchase terms and the stores continue to be successful.

“So, 2020 was our best year ever in the company’s history and in 2021, we did 25% more.”

Sounds like a good value.

22 | March/April 2022 | ALLPRO INDEPENDENT

Top 3 Valuation Methods There are three popular valuation methods, each with a different aspect or variable of a business to determine an accurate number.

MARKET A market-based valuation relies on finding and comparing similar public companies and reviewing price/earnings ratios and recent transactions. To determine a store valuation using this method, you’d apply EBITDA (earnings before interest, taxes, depreciation, and amortization), revenue, or other metrics. A market-based approach is often best used in conjunction with an income-based method when market metrics and public information on companies and transactions isn’t available or fully comparable.

INCOME An income-based approach is based on the future earnings or cash flows of a business. Also called earnings or cash flow approach, if you’re interested in employing an income-based method, you’d need to predict future earnings or profitability and evaluate the risk associated with those cash flows. If you have considerable goodwill or intellectual property, an incomebased approach might be the best method of valuation.

ASSET An asset-based method is determined by the value of the company’s assets after eliminating all its liabilities. For instance, to determine a store valuation using this approach, if you were to sell all your company assets at fair market value, leaving profits to pay off debts, liabilities, and taxes, what would remain? Unlike an income-based approach, an asset-based method is usually used to value business with plenty of physical assets and less goodwill or intellectual property.

“I think 99% of people should hire someone to help if their goal is to sell [their business] at fair market value. I would highly recommend finding someone who has experience in a similar industry, similar operations, similar profitability, and in a similar number of locations.” - Sean Paul, Dugan’s March/April 2022 | ALLPRO INDEPENDENT | 23

Experiences from an Entrepreneur Prism Paint & Design owner Umar Khan gives insight in valuing a store for purchase.

Entrepreneur Umar Khan purchased Huffman Paint and Wallcoverings, a 70-year-old two-generation paint store, just over a year ago. A few months later, Khan opened a second location before acquiring another company that had two stores in a neighboring market. Now newly named, Prism Paint & Design has four locations in North Carolina.

“I was looking to diversify my business portfolio,” Khan says. “I looked at a wide variety of concepts. And at some point, I ended up having a conversation with Benjamin Moore directly about their NEP [New Entrepreneur Program] program.”

Instead of going the NEP route, Khan opted to wait for the right opportunity to purchase an existing location. When the moment presented itself, because of his experience in business development, Khan felt confident completing a full valuation of the store.

“I was very comfortable looking at the P&L [profit and loss],” details Khan. “A big part of the key to the Huffman purchase was that, to [Kerry Jones’] credit, he was very solid with his numbers, his documentation, and his processes. He had an accountant who would keep his monthly P&L, and I was able to verify things that I needed to verify. I was able to take a look at the gross margins, the profit margins, how much he paid himself, how much he paid his employees, and kind of got the full sales history of the business over an extended period of time.”

In addition to being open and straightforward about how he ran the business, the previous owner had an independent valuation completed

by Benjamin Moore which provided Khan with an initial marker.

From there, Khan built up his own valuation, bringing it back to his accountant for review. “[Kerry] wanted to make sure I was viable, and I wanted to make sure his numbers were viable,” he says. “And we both had accountants that were deeply involved with our business, so I think that that brought some order to the conversation.”

24 | March/April 2022 | ALLPRO INDEPENDENT

Following what Khan refers to as a “phenomenal acquisition,” Prism Paint & Design further expanded their reach.

“Because of how well it was going [with the original store], and starting to understand the business considerably more, I realized that a single store operation is definitely more challenging as an independent owner,” Khan states, explaining that expanding and acquiring additional locations would not only expand their purchasing ability and buying power, but it would also provide more affinities in stocking, staffing, and marketing. “It made the overall business a lot more healthy and set up for the long term.”

Khan opened a new Prism Paint & Design store and acquired two already established paint locations. While the original Huffman acquisition gave Khan a blueprint to work off, not everything was interchangeable. According to Khan, one of the challenges of acquisitions in the independent paint industry is the emotion tied to the business.

“Sometimes when you get into the nitty gritty numbers, it can be difficult for the other party to feel like they’re getting full value for what they’ve worked on for essentially decades,” Khan shares.

To move through the store valuation process successfully and sensitively, Khan suggests hiring “a third party who understands business valuations and can break it down in black and white without any of the outside noise.”

A variety of professionals are available to assist with store valuation, including an accountant with valuation expertise, an independent business valuator, or even a supplier such as Benjamin Moore. Bottom line, Khan recommends ALLPRO members dive down into the net return that they’re going to get out of the business they’re buying.

“What is an acceptable time period to get a return on your investment?” he notes. “And then from the seller standpoint, I think [you need to be] open minded to someone who’s giving you a fair offer.”

Business Valuation Benefits Every owner should know what their business is worth. Not only will business valuations provide facts and figures regarding the company’s value, but they allow the owner to measure and plan for future growth. Jump on the business valuation bandwagon and start reaping the following benefits.

UND ERSTANDING YOUR COMPANY ASSETS Accurate numbers are always better than estimates. With a proper valuation process, an owner has more knowledge on how much to reinvest into the store(s) and how much they can get for the company if they put it up for sale.

COMPANY RESALE VALUE Know the value so that you can work towards your ideal sale price.

Even if you don’t plan to sell for another year or two – or ten! – time will allow you to increase the value of the company.

BARGAINING POWER When you know the value of your business, you are better prepared to negotiate when you are ready to sell or when a purchaser has interest in your company. Show buyers what the entire value is, what its assets are, how much it has grown, and how it can continue to thrive.

SUPPORT FROM INVESTORS If ever you need investors to fund business growth or support you through financial hardship, the lender will want to see a comprehensive company valuation report. Investors will feel more confident backing your business when they can identify how their funds will push the company forward.

Valuation Advice for Owners If you’re an owner entering a store valuation scenario, keep this advice top of mind.

REALISTIC EXPECTATIONS Ensure your expectations are reasonable and you have an objective outlook when you venture into a store valuation. Because of your ties to the business, it is common to have an overly optimistic perception of the process of a valuation, value of the store(s), future profits, and interest from prospective purchasers.

REALISTIC ABILITIES If you’re not qualified or don’t have extensive knowledge of store valuations, chances are you should hire an accountant or chartered business valuator. By entering into a valuation on your own, you risk using an incorrect valuation method, applying an improper multiplier, or making various other mistakes.

REALISTIC RESULTS Expect a wider price range rather than a fixed value following a professional store valuation.

March/April 2022 | ALLPRO INDEPENDENT | 25

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ALLPRO University Six-Point Creative unveils innovative learning management system to maximize membership benefits

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If the thought of soft sand between your toes, hot sun on your skin, and clear turquoise water didn’t draw you to the ALLPRO Spring Show in the Bahamas, perhaps the uber talented team from Six-Point Creative and their innovative platform specifically designed for ALLPRO members piqued your interest.

30 | March/April 2022 | ALLPRO INDEPENDENT

he brand strategists and project managers have been working hand-in-hand with the ALLPRO group to create a cutting-edge learning system that helps ALLPRO members maximize their membership.

In addition to showcasing the short snappy videos that help members understand all the opportunities involved in ALLPRO, Brogdon and Stafford were eager to hear from members to create additional content that will meet the direct needs of ALLPRO members.

Ashley Brogdon, Producer for Six-Point Creative and colleague Luke Stafford, Owner of Mondo Mediaworks, attended the Spring Show to unveil ALLPRO University, a training component on the ALLPRO website where members can log on to watch short, educational video modules and learn valuable information on navigating the ins and out of ALLPRO membership.

“This is a fact-finding mission for us. We want [ALLPRO members] to take the classes to learn more about ALLPRO,” says Brogdon of their attendance at the Spring Show, adding that member feedback is invaluable. “We want their input so that we’re creating videos and courses that they want to see.”

“What are all the little nooks and crannies of membership that are maybe getting overlooked?” asks Stafford, explaining that these member benefits could equal significant savings for members. “And how should we build a content learning system that would make it fun but also give all the pertinent information?”

Currently the creative team has created three courses for ALLPRO University, including the ALLPRO Discount Stack, a series of nine short, animated videos (each less than 90 seconds long) that guides members in piling up savings throughout the year, and How to Navigate ALLPROCORP.com for buyers.

March/April 2022 | ALLPRO INDEPENDENT | 31

“I feel like members will get the idea of what we’re going for,” Brogdon says of the current course offerings, but promises there is more to come. “We’re going to be working on this all year - adding more content.”

Six-Point Creative is the perfect problem-solving strategist to work with the ALLPRO group and its members of independently owned paint retailers because of their history and experience with clients in the paint and wall surface preparation area.

“We’re really focused on smaller family-run or closely held businesses,” Brogdon details. “We understand a lot of what their struggles might be and can offer them information to help them grow.”

Eager to enroll in ALLPRO University and start reaping the rewards of completed courses and additional knowledge about your member benefits? Grab your backpack and head back to school with ALLPRO U.

32 | March/April 2022 | ALLPRO INDEPENDENT

Register for courses at www.allprouniversity.com.

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INDEPENDENT | BRAND BOOTCAMP

BRAND BOOTCAMP s consumers become increasingly interested in exercising their purchasing power in alignment with their personal views, values, and identities, the power of branding has picked up new speed.

This is especially true for companies looking to earn the attention of younger generations of shoppers like Gen Z and Millennials. Although branding might be unchartered territory for many small business owners, it doesn’t need to be intimidating. Consider this your crash course.

As per the American Marketing Association (AMA)’s definition from 1960, a brand refers to “a name, term, sign, symbol, or design, or a combination of them which is intended to identify the goods or services of one seller or a group of sellers and to differentiate them from those of competitors.” In the simplest terms, your brand is your way of telling potential and current customers who you are, whether it be through a logo, a tagline, or a set of values.

IT INVOLVES THE FOLLOWING ELEMENTS: 1. Company Name

2. Slogan

3. Logo

All of which, when done well, should help to deliver your business’ message, connect your products/services to your customers, inspire action, and generate loyalty.

38 | March/April 2022 | ALLPRO INDEPENDENT

From professional headshots and company uniforms to social media standards and digital marketing, a brand identity is recognized by your customers across every platform.

IN -H OU SE VS . AG E NCY

BEN E FI TS O F G O O D B R A N D ING Consumers today are bombarded with more messages on a daily basis than ever before. Standing out is imperative in an oversaturated market, and branding is the best way to rise above the noise.

CONS IST E N CY A great brand will have their signature on every piece of media they share, creating brand recognition over time. By having a unified look, feel, and message, your customers will be better able to identify your content in their feed or in an advertisement.

CLA R IT Y By going through the process of branding, you’ll be able to streamline your message and learn how to repeat it across all channels. Eventually, your brand will become synonymous with this message, helping solidify your presence in your niche and attract customers accordingly.

LOYA LT Y Just as companies work to develop their brands, people, especially younger generations, tend to develop personal brands, identifying and aligning with the businesses they frequent. An individual is much more likely to feel this emotional connection if you have a concrete brand identity to latch onto (coupled by great service, of course!).

COMMU N IT Y As your brand becomes more clearly defined and you become better at communicating your message, you’ll also learn to convey your values and participate in your community in a way that reflects those values. This is a great way to network and demonstrate social responsibility.

If the idea of branding feels out of your wheelhouse or you’re not entirely sure where to start, it might be time to consider hiring an agency to help. While most agencies will offer marketing services on a retainer basis, many will only offer a one-time branding overhaul for a set fee.

This is attractive for a lot of small businesses because it equips them with the resources to portray a polished brand identity without breaking the bank. Each agency will have their own packages to choose from, which you can customize according to your company’s needs, but most will include options for the following: •

Business cards

•

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•

Informative brochures

•

Email templates

•

Social media package

•

In-store signage

•

Truck vinyls

March/April 2022 | ALLPRO INDEPENDENT | 39

BRAND STYLE GUIDE:

Primary Logo:

If you haven’t evaluated your company from a brand perspective yet, consider this your opportunity to dip your toes in the water! You can use the following as a guide to create your own version.

MISS ION STATEMENT Consider this your brand’s anchor. Any content created should relate back to this mission statement in some way.

Color Palette:

Slogan:

MAKE LIF E CO LO R F UL

B UYER PERSON A Create a fictional version of your ideal customer. Don’t skip over the details.

Consider their age, gender, motivations, professional status. Whenever you publish anything under your brand, whether it’s an Instagram post or a e-blast, imagine how this person might receive it.

Typography:

GOTH A M BLACK Garamond

COLOR PA LETTE To keep your visuals looking clean and consistent, identify a group of colors that work well together—many brand palettes follow HEX or RGB color codes (this should be an easy one!). These shades should guide your logo design, website, and any ad or event collateral.

Social Media Standards: PA I N T I T

SHOP ONLINE. M U R P H Y P A I N T. C O M

ED ITORIA L STYLE G UIDE You should establish a tone of voice for your brand. Feel free to get as specific as you’d like with approved phrasing to help sell products or services, topics your brand feels comfortable talking about, or anything that should be off limits.

NEW A R R I VA L S .

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40 | March/April 2022 | ALLPRO INDEPENDENT

TYPOG RA PHY This will be the finishing touch on any of your visual communications. It goes beyond font—should inform the links you use, how you portray your copy, and how you display your tagline.

THE STAGE OF SOCIAL MEDIA The invention of Instagram and its subsequent adoption by retailers — everyone from the clothing industry to book dealers — forever changed the branding game. It accelerated the increasing importance of brand identity while also evening the playing field — now, everyone has the platform to share their brand image. Take advantage of the tools at your disposal with a few simple steps:

G ET C HATTY IN THE COMMENTS : Stay active in the comment section of both yours and your community’s posts. Treat every comment as if it were a post — an opportunity to use your brand’s unique voice (whether it’s cheeky, friendly, or expert). This also helps expand your reach to potential customers.

KE E P T H E USE R N AM E ST R AI G H T FORWAR D : There’s no need to get creative with punctuation or special characters in your username. In fact, the simpler the better. You want people to easily be able to search your business name and yours be the first account that pops up.

B RING IT BAC K TO BA S IC S : Whenever you’re sharing a message, image, or any piece of content, always consider how it relates to your main mission statement.

A good test is to imagine you’re a customer that knows nothing about your brand. Does this piece of content tell them what they need to know about who you are?

UP DAT E YO U R P RO F I LE I M AG E : Placing your brand logo as your icon image will help catch the eye of those who might already recognize your brand. (Hint: comment on your community’s posts to increase your follower count—you never know which potential customers might be following them.)

March/April 2022 | ALLPRO INDEPENDENT | 41

10 minute

branding exercise Ta k e some time to re v i e w your brand and b usi ness. Knowing who y o u a re will help build a stro nger brand story.

c o mpany name:

p r oduct: ( w ha t yo u s e ll) p eop l e: ( w ho yo u s ell t o ) p r i ce: ( how a r e yo u p r ice d?) p r om oti on : ( p r o m o t e yo u r pro duct ) p l a ce: ( w her e yo u s ell) compan y st o r y (so u l)

cur r en t tr en ds

m ooD

w ho:

1:

wor ds:

w hat:

2:

w he n:

3:

w he re :

4:

w hy:

5:

compe ti t o r s

h ow wi l l you ear n m edia?

c olor s: Im ages:

tar get m ar gi n:

(don ’t forg e t t h e p r e ss r e le a se )

1.

2.

m ar ket siz e:

3.

top br and a sse t s

i n tel l ec tu al p r op er ty:

attr ibu tes

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1.

1.

2.

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wea k n es s es

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46 | March/April 2022 | ALLPRO INDEPENDENT

New Digs in the Northeast Our brand new, bigger and better Northeast Distribution Center is up and running in Sterling, Massachusetts. The warehouse tandem of Scott Costa and Jeff Aaron are hard at work putting systems in place and taking great care to manage the staples as well as all the new product additions to our growing inventory selection. We caught up with Aaron who shared, “It has been a long and tenuous process to get the warehouse up and running in these challenging times. But it has been worth the time and effort by everyone involved from the ALLPRO team. We are looking forward to being able to ship many new products to our members and to make them more competitive with our new buying ability.”

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March/April 2022 | ALLPRO INDEPENDENT | 47

“The addition of this new warehouse enhances our ability to leverage the buying power of the group to help our members better compete. It gives us the power to buy larger quantities and compete for products impacted by the pandemic. If this new larger warehouse is successful, it will serve as the model moving forward when our leases expire in other warehouses.”

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INDEPENDENT | GIFT CARDS

Are Gift Cards Good for Business?

We Weigh The Pros And Cons Of Adding Gift Cards To Your Product Offerings hen it comes to purchasing a present for that hard-to-please person, gift cards are an obvious choice. And with so many options on the market, there’s something for everyone to enjoy. Gift cards are becoming the go-to for consumers because of their convenience, ease of purchasing, and dependability when Christmas, birthdays, or just about any occasion comes around.

As online shopping continues to revolutionize the retail industry, e-commerce is adding fuel to the fire when it comes to the popularity of gift card programs, making digital and e-gift cards both acceptable and trendy among consumers and recipients.

But are there as many benefits for businesses to sell gift cards? And if not, what are the drawbacks? From promoting your store and services to generating extra sales and engaging new and old customers, there are plenty of reasons for your business to invest in this product option.

But before you order personalized gift cards or install a gift card Shopify app and start selling, consider the advantages – and disadvantages – offering gift cards could have on your company. We break down all the pros and cons when it comes to selling gift cards in store and online.

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Pros: IT’S EASY AND COST EFFECTIVE A simple way to increase sales? Sign us up! Whether you’re adding traditional gift cards at the checkout or offering them for purchase on your company website, selling gift cards is pretty straightforward.

Add to that the fact that the investment and store real estate to stock gift cards is relatively low, incorporating gift cards into your store offerings means low effort for a large return.

IT PROMOTES BRAND AWARENESS Gift card customers are essentially brand ambassadors, spreading the word about your store and services and helping keep your business at the forefront with your audience. When customers choose to give a gift card, it’s either because they’re loyal customers or because they’re sure the recipient will appreciate the paint and other products your store offers. Jump on the gift card bandwagon and start promoting your brand – a small 2x3 inch card can pack as much punch as a large billboard…and it costs a lot less!

IT GENERATES STORE SALES If you’re looking to improve cash flow, consider gift cards. Selling gift cards alongside your regular stocked merchandise will generate

additional revenue – even before you provide products or services.

Then, when that gift card is redeemed, there is a chance the customer will spend more than the amount on the card, giving you an opportunity to upsell and make a higher value sale.

IT INCREASES HOLIDAY SALES Since most shoppers aren’t rushing to buy paint brushes and wallcoverings as stocking stuffers, safe to say that the holidays haven’t equaled big sales for the independent paint store. Until now. Make holidays brighter and the company bank account bigger by offering gift cards. With nontraditional businesses selling memberships, subscriptions, and services (think salons, fitness facilities, and meal prep services) you can join in on the fun by selling gift cards for DIY enthusiasts or a friend or family member saving up for a home renovation or someone hoping to spruce up their space.

IT CREATES CUSTOMER ENGAGEMENT Shoppers who walk in the store or shop online because they have a gift card open a new marketing opportunity for your business. Maximize your gift card program by developing deeper customer relationships and creating amazing experiences for new shoppers.

Cons: IT REQUIRES EXTRA WORK Any new product offering or marketing strategy requires some additional work and people power. In the case of a gift card, you’ll need to account for a bit of a learning curve and some extra book-keeping, especially if you do the business accounting yourself.

IT RISKS YOUR STORE’S REPUTATION Like the best paint and brushes on your store shelves, your gift cards need to be tried, tested, and true. If there are any glitches or issues with the gift card, you’re risking your store reputation and upsetting customers. Ensure that your system is supported and seamless, that everyone on staff knows how to issue and redeem gift cards, and that you have someone available for technical difficulties. At the end of the day, you want the gift card transaction to be smooth and straightforward.

IT CREATES A RISK OF FRAUD Gift card fraud is a growing problem and one that is important to consider before you add them to your merchandise offerings. While there are issues with gift cards if they’re not activated properly, gift cards also open your store to fraudulent activity, like thieves stealing the money off the cards, using stolen credit card information to purchase untraceable gift cards which are then resold for cash, and super savvy scammers using software applications to drain the gift card balances of unsuspecting customers.

Bonus!

Gift cards will extend your holiday season by bringing in customers well into the new year. Capitalize on gift card redemption by engaging new customers and upselling others, ensuring sales continue into the spring season.

Did you know?

Gift card purchases won’t be recorded as regular revenue, rather, the sale should be listed as an agreement to provide product or services for the value of the card. Once the gift card is redeemed, it is then recorded as revenue.

March/April 2022 | ALLPRO INDEPENDENT | 55

Don’t be deterred by the dangers in offering gift cards, as there are plenty of ways to prevent your store and your loyal customers from gift card fraud. If you do your homework, bolster accounting processes, track gift card data, keep an eye on your employees, and enhance your data security, you shouldn’t have a problem turning gift cards into a beneficial revenue stream.

While there are definite risks when it comes to adding gift cards to your e-commerce site or beside the checkout, the rewards outrun the risks. With a few simple steps, gift cards can increase store revenue, build and develop loyal customer relationships, and grow your business.

Gift Card Marketing Ideas to Boost Your Bottom Line Now that you have shiny new gift cards with customized branding and complimentary colors stacked beside your checkout counter, it’s time to make the most out of your investment. Add a few marketing ideas to your arsenal this spring and help your gift cards stand out.

SHARE THE NEWS Tell your best customers that you now offer gift cards by sending an email and announcing it on your social media channels. With email marketing tactics, businesses can target shoppers looking for appropriate gifts for friends who love decorating or family working on a fixer upper.

SOCIAL MEDIA INFLUENCERS Run a contest on a local influencer’s Instagram account and offer gift cards as the prize.

The more you can get your brand message, company name, and products in front of your audience, the better. Encourage followers to repost the contest or entry in their stories or on their feed for additional chances to win.

BOGO PROMO Encourage your customers to purchase gift cards by offering a promotion. For example, give a free $10 gift card for every $50 of gift cards purchased. Many shoppers love the idea of getting a freebie, especially if it’ll go towards a home reno project or design update they’ve been dreaming about. Not only does it give them good value for their money, but it gives them another reason to visit the store. Win-win!

STRATEGIC PLACEMENT While putting gift cards beside the billing counter seems logical, there are plenty of other ways to grab attention from your customers. Consider promoting your gift cards on signage spots like window displays, storefront signs, digital signage, and as sticker reminders on point of purchase plastic bags.

EMPLOYEE COMPETITION Encourage a bit of friendly competition on the sales floor by running a contest between sales staff. After training your employees on the ins and outs of the gift cards, incentivize your team to pitch gift cards to clientele, offering a prize to the staff member who sells the highest value in gift cards.

HOLIDAY DEALS AND DISCOUNTS Sell gift cards at a discounted rate during the holidays. Everyone is in a hurry to get their holiday shopping done, so go ahead and make the decision easy for them. Offer a $100 gift card for $90, or a $150 gift card for $130. While it might seem like you’re giving money away, chances are your shoppers will spend more than the actual card value the next time they’re in the store.

56 | March/April 2022 | ALLPRO INDEPENDENT

On Good Terms Companies need to develop and understand the terms and conditions of their current gift card programs and what happens when a residual balance is unclaimed.

If you’re a business operating out of the United States, you’ll have to follow laws that require you to report any abandoned, intangible property – like remaining balances on gift cards – in accordance with state law. The dormancy period of inactivity usually ranges from three to five years following the gift card purchase.

Because customer information such as name and address won’t be available for the gift cards that you sell, any remaining balances remaining on the cards are reverted back to the company’s state of incorporation. Depending on where you operate your business, you may either be required to escheat unredeemed gift cards, or you may be fully or partially exempted for gift card reporting.

For a best-case scenario, consult with an expert and develop a gift card policy for your store, including a simple set of rules that are easy to understand and properly enforced. A solid policy will prevent debates, protect your company from loss, and keep customers satisfied.

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INDEPENDENT | FINAL COAT

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2. The workhorse of ALLPRO Graco sprayers 3. The marketing maven at Spectrum Paint 6. ColorReader by 7. Shake, shake, shake it off 8. T he geometric stars behind ALLPRO U

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learning modules

10. A top three business valuation method 11. S he’s pretty, pretty, pretty, pretty and got married not long ago

14. I t’s 92.5% pure and the home of 19

the Northeast DC

16. U sed to identify a herd or make your business stand out in a crowd

17. Loconsolo donated this many thousand masks to local hospitals

ACROSS

Crossword puzzle 66 | March/April 2022 | ALLPRO INDEPENDENT

1. A girl’s best friend or Vogel 4. The drop cloth company with one up their sleeve 5. A Benjamin Moore primer or a clean slate 9. A top three business valuation method

13. You don’t hold ‘em or fold ‘em but you might sell them in your store 15. A new member in MI or a story that explores forbidden love and teenage rivalry

11. We recently gathered on this island

18. Extending a small stem rather than a branch

12. Tenth month + weather event

19. A top three business valuation method Answers on page 57.

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