BCA Insider - 2019 New Year Edition

BCA New Year Issue | February 1, 2019

PROTECTING YOUR BUSINESS FROM

CYBER THIEVES

THE #1 MARKETING

MISTAKE

THE POWER OF

TRADE SHOWS

BCA MEMBERS MAKE

BCA Insider – A BCA Member Publication Dedicated to Businesses in the Billiard and Home Leisure Industry.

Anthony Stoeckert

Protecting Your Business From Cyber Thieves

6 Charles S. Donnavan

The Power of Trade Shows

18 Michael Bodley

Preparing for the Future

37 2 | BCA INSIDER • NEW YEAR ISSUE 2019

IN THIS ISSUE

12 22 28 34

The Latest News in Juniors

By BCA Insider Staff

42 48

Smart Steps for Firing Staffers

By Anthony Stoeckert

Such a Colorful World

By Anthony Stoeckert Six Generations of Schmidts

By Keith Loria NSGA Dissects the State of the Industry

By BCA Insider Staff

The #1 Marketing Mistake BCA Members Make

By Brian Offenberger

OPENING LETTER

As we turn the page on 2018, the Billiard Congress of America is looking forward to a great 2019 and we wish you a fantastic year as well.

EDITORIAL EDITOR-IN-CHIEF Keith Loria billiardskeith@gmail.com

CONTRIBUTING WRITERS Michael Bodley Charles S. Donnavan Brian Offenberger Anthony Stoeckert

ADVERTISING MEMBERSHIP MANAGER Shane Tyree shane@bca-pool.com (303) 243-5070 x23

DESIGN/LAYOUT ART DIRECTOR Julie Snee julie.snee@gmail.com

BCA BOARD OF DIRECTORS CHAIRMAN Brian Igielski, GLD Products

VICE-CHAIRMAN

Recently, the association announced that it has agreed to assume oversight and dayto-day management of the Billiard Education Foundation. Honestly, most exhibitors and attendees won’t notice a difference when they walk past the BEF Junior National Tournament this summer during the 36th BCA Expo, but the truth of the matter is that the BCA has taken a giant leap in its effort to help create tomorrow’s customers.

This effort, combined with the BCA’s commitment to hosting the Atlantic Challenge Cup, is a step in the right direction for the future of the game. We recently hosted the fourth annual Atlantic Challenge Cup. And, although the results were not nearly as spectacular as this year’s Team USA Mosconi Cup win, the event itself has stoked a fire for many to identify more ways to encourage and reward kids for playing pool. And, with our Professional Billiard Instructors Association partnering with the BEF to provide junior instruction, a long-term effort to grow the game is beginning to take shape. It’s an effort in which I believe we can all assist.

Moving on to more details about this edition of the BCA Insider called “New Year, New Trends,” we provide strategic business information to support your efforts to run a successful business. You’ll find in-depth coverage on: how to keep your customers’ information safe; the necessary, but difficult art of firing an employee; the new hip and trendy colors of 2019; the power of trade shows and more information about how the BCA is working with junior players to grow the game for us all!

As we all move into 2019 and the dust begins to settle from the holiday hustle and bustle, please take time to send in your annual membership dues payment if you haven’t already done so. Your commitment allows us to continue to support our membership, promote the wonderful game of billiards as well as provide high-quality platforms for junior players to develop a lasting love of cue sports.

Wishing you healthy and prosperous 2019!

Wes Bond, Cue & Case Sales

SECRETARY Dan Pucci, American Heritage Billiards

TREASURER Brian Rosselli, Olhausen Mfg

BOARD MEMBERS Ivan Lee, Iwan Simonis Kim Morrison-Murdock, International Billiards Chance Pack, Champion Shuffleboard David Piha, Greater Southern Home Recreation Ozzy Reynolds, Cuesports International

4 | BCA INSIDER • NEW YEAR ISSUE 2019

BRIAN IGIELSKI,

CHAIRMAN

BCA Insider is published by Billiard Congress of America © 2019 bcainsider.com

PROTECTING YOUR BUSINESS FROM CYBER THIEVES

By Anthony Stoeckert Technology has been a boon for retailers. Business owners can access information about new products and trends in an instant, communicate with customers via email and social media and, best of all, sell products to people all over the world through online sales.

One risk of all these new tools is the potential for security breaches – to your computers, which can affect your business, and to your customers, whose information can be compromised. And that can lead to bitter feelings and damage your store’s reputation.

STEALING INFORMATION Studies show that the number of breaches increases each year.

Breaches make the news when major companies are the victims – the social media giant Facebook announced late last year that photos belonging to nearly 7 million of its users had been compromised. That followed the news that tens of millions of Facebook customers had been hacked earlier in the year.

Marriott also made headlines (the kind companies don’t want) when it was reported that 500 million of its patrons were the victims of cyber theft.

6 | BCA INSIDER • NEW YEAR ISSUE 2019

But small companies and independent businesses also can be the victims of online thievery.

When customers make online purchases from your store, you have access to lots of their information. Keri Lindenmuth, marketing manager for KDG, notes that this information includes credit card numbers, phone numbers, home and email addresses.

“If accounts are password protected, retailers also have passwords on file,” she says. “All of this information can put consumers at risk of identity theft or financial fraud. Even something as simple as a stolen email can result in spam or phishing attempts when a hacker sends a realistic-looking email in the hopes to steal information.”

That information is at risk of being breached by a third party that wants to steal that information, Lindenmuth says.

THE ROLE OF YOUR EMPLOYEES Errors by employees and staff are the most common reason for breaches.

“Internal employee errors account for a majority of breached data,” Lindenmuth says. “An employee may accidentally fall for a phishing email and give away sensitive information. They may expose users’ passwords or credit card information. They may fail to wipe clean old hardware. They may simply not have sensitive data secured with a strong enough password.”

Employees, both old and new, need to be part of your defense.

You don’t want every member of your staff to have knowledge of your protection systems because allowing fewer people to access customer information reduces the chance of a breach and also makes it easier to investigate breaches that do occur.

However, all employees need to know a few things. For example, you know to ignore emails or pop-ups from mysterious firms informing you of a breach because they are scams. But can you be certain that all your employees know this? New employees might panic at one of these warnings, and staffers who aren’t technologically savvy might fall for them.

Keep in mind that these warnings often look as if they’ve come from real, well-known companies, and often use confusing and potentially convincing language that can make the threat look real. Often, it’s difficult to close these windows, and the text and narration make it seem as if you’re in big trouble if the fake warning is ignored.

If no one fell for these scams, they wouldn’t exist. It’s imperative that employees know that they shouldn’t respond to these so-called warnings. They should not reply to an email or click on, share, or respond to pop-ups. Instead, they should immediately notify you, or a designated IT employee. And, of course, employees must be trained not to share passwords and customer information with anyone.

In the event that an employee does share a password with a potential hacker, change that password immediately.

And consider regular meetings with staff to discuss cyber security issues. Read the news for examples of businesses that were hacked, and share articles about ways to protect your information, and your customers’ information.

Stacy Caprio of SmartBooks says training employees to be the No. 1 safeguard of data is a crucial first step to protecting your customers’ data.

“Make sure they are all aware that all computers need to be password-protected and logged out of or turned off every time they step away from the screen,” she says. “They also need to be aware that they cannot write BCAINSIDER.COM | 7

down any sensitive customer information or save that information in non-secure places on their computer.”

that resembles account numbers but which doesn’t make sense to infiltrators.

PROTECTING INFORMATION

SIGNS OF A BREACH

Nate Masterson of Maple Holistics says retailers need to make data security a priority.

One of the most troublesome aspects of breaches is that for the most part, you don’t find out about them until after they occur. However, Lindenmuth says there are clear signs to look for that indicate your system has been infiltrated.

“The liability risk is such that not taking the greatest precaution is grossly negligent,” he says. “All data must be encrypted, access to data should be limited in every way possible. Emphasize the importance of security by having security measures, and destroy data that is unnecessary. Most importantly, make data protection an IT priority.”

“

COMPANIES USUALLY FIND OUT ABOUT BREACHES FROM BANKS, AND NOT FROM THEIR OWN INTERNAL SYSTEMS.”

Those signs include your computer running slowly, you or your customers receiving spam emails, passwords not working, new software or antivirus programs appearing on your computer, popup windows and ads continuously appearing, and losing control of your computer and browser activity.

“If a retailer finds out they’ve been hacked, they should isolate the affected technology, change account passwords, preserve evidence, contact authorities, and, most importantly, tell consumers as soon as possible,” Lindenmuth says.

LEAD THE WAY

Steps that protect information are always being taken. Perhaps the most notable in recent years is the introduction of chip technology on credit cards. The days of customers instinctively swiping cards instead of using the chip reader seem to be over.

Greg Scott is the author of Bullseye Breach: Anatomy of an Electronic Break-In, and Virus Bomb, cybersecurity educational books, which he says are disguised as novels about businesses that fail to protect sensitive information.

Chip credit cards have improved security because they add more protection than magnetic stripes on cards because the chips use technology that makes it harder for thieves to access.

According to Scott, the No. 1 ingredient every business owner, including billiard retailers, needs to protect their customers’ information is the right approach.

Other steps retailers use include “point to point” encryption, which encrypts data so that anyone who infiltrates your system won’t be able to understand it, making it worthless to cyber thieves.

“It all starts with attitude at the top,” Scott says. “Without the right attitude from decision-makers, nothing else matters.

Billiard retailers, and everyone else, should treat information and IT as an asset and not an expense.”

Another helpful tool is tokenization, which essentially replaces your patrons’ real credit card information with data

The right attitude, he says leads to intelligent investment, good topology and proper vigilance.

8 | BCA INSIDER • NEW YEAR ISSUE 2019

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“Good topology means putting all POS systems behind a second firewall and protecting them,” he says. “Proper vigilance means keeping security logs and paying attention to them. It also means doing periodic penetration tests and teaching employees about spam and phishing schemes.”

Mihai Corbuleac, Senior IT consultant at ComputerSupport. com, says businesses should implement as many obstacles as possible between cyber criminals and sensitive information.

“Start by moving all that information to a secured, private network or server,” he says. “Your IT engineers can keep track of everything on both network and server, basically adding another layer of security for your customers. By keeping that data far away behind multiple layers of security, you will be able to prevent more.”

He also suggests limiting the number of employees who have access to customer information.

“This leaves you with fewer systems to protect, and fewer employees who might make an error,” he says. “Also, don’t forget to keep testing for vulnerabilities.”

IN CASE OF A BREACH While taking steps to protect this information can be effective, breaches can happen even under the best online security systems. That makes it vital that you have a plan in place in case of a breach.

“Create a security plan based on categories of risks,” Corbuleac says. “Within logical security, for example, security experts should check employee access to services and applications as a particular risk area, and mobile and device access as another. In case of a data breach you need to minimize its impact, so don’t hesitate to stop the regular communication to and from the impacted systems. Lock the credentials of all involved accounts either suspected or confirmed.”

After that, determine the target of the attack, to prevent the breach from spreading further.

Scott says companies usually find out about breaches from banks, and not from their own internal systems.

“When credit card-issuing banks see fraudulent transactions, they look for common elements leading up to the attempted fraud from the credit cards and then notify retailers,” he says.

“It’s a shame so many retailers have to find out this way, instead of proactively stopping these attacks themselves.”

10 | BCA INSIDER • NEW YEAR ISSUE 2019

WHAT THE LAW SAYS According to the Federal Trade Commission’s website, any business affected by a breach should notify law enforcement, in addition to other businesses and individuals who were affected by the breach.

An important consideration is determining your legal requirements. The website explains that most states have enacted legislation that requires businesses to notify customers of breaches that involve their personal information. There may even be laws that apply to specific situations, so knowing your legal requirements is important.

The Commission recommends calling your local police department immediately because the sooner the cybercrime is reported, the more effective the response can be. In the event your local police department doesn’t investigate information breeches, contact your local FBI office.

Scott agrees that customers need to be notified of breaches immediately.

“Bring in a firm that specializes in forensics and incident response, and get in front of the news cycle and manage the crisis,” he says. “This is the time for visible leadership. Provide explanations and frequent progress and updates, and answer questions honestly and directly to repair credibility with a skeptical public.”

The Federal Trade Commission’s website also notes that the sooner customers are told of a potential compromise, the sooner they can take actions to protect the information. For example, if a cyber-thief acquired a customer’s Social Security number, that information could be used to sign up accounts with other retailers, and to commit tax identity theft.

The sooner a customer is notified, the easier it will be to minimize the damage caused by the breach.

The Commission recommends assigning a point person within your business to contact victims about the breach, what you’re doing in response to the breach, and what the customers should do. The website even has examples of letters you can follow.

It’s all about doing what’s right for your customers, so that everyone is protected, and relationships stay strong.

You should also contact your business’ insurance provider to determine if there are insurance protections available for this kind of threat.

THE LATEST NEWS

IN JUNIORS

By BCA Insider Staff

VIRGIN ISLANDS’ MAHKEAL PARRIS WINS WPA JUNIOR 9-BALL CHAMPIONSHIP More than 60 junior pool players from 27 countries and five continents competed at the WPA World Junior 9-Ball championships in Moscow, Russia from Oct. 30 to Nov. 3, with 17-year-old Virgin Islands’ Mahkeal Parris capturing the crown.

Parris has been playing pool for 12 years and started competing at the age of seven, when he played in the Virgin Islands Billiard Association League, the only junior player to do so.

“My interest in pool started when my parents invested in a salon/barbershop which had a pool table in the barber’s section,” he says. “I started off just hitting balls and eventually one of the barbers started teaching me about the sport. I realized I was talented when I started to win most of the games in the shop.”

He has great memories from winning the championship, but the road there was not an easy one.

“In 2017, we suffered two Category 5 hurricanes in one hurricane season and the pool hall in which I practiced and

competed was completely destroyed,” Parris says. “We had no electricity for months. The islands were in the process of rebuilding when we were asked to compete in the world championship.”

overcome my nervousness.”

That year also saw the loss of his coach, Claude Petersen, who passed away from a heart attack.

“I was having trouble with my break before the tournament started. I consulted with Dr. Cue who gave me a few tips, which was key in my success,” he says. “I felt excitement and I was overjoyed but my strongest emotion was I was happy it was over. The win did not resonate until I got home and saw the welcoming party at the airport and at my high school. I knew then that my win impacted the entire Virgin Islands and the world pool community.”

“We traveled to the BEF junior nationals several times together and I have great memories of him,” he says. “We played on the same team in the Virgin Islands Billiard League. I miss him dearly. Mr. Petersen and my parents are a huge part of my success.”

One thing that Parris was taught by both his coach and parents is the value of hard work and determination, and that helped him with this tournament.

“I learned with hard work, passion and dedication you can overcome obstacles,” Parris says. “I struggled with my nerves both in the semifinals and the finals but my coach, Jerome Anthony, was able to talk to me and I was able to

The hardest part of the tournament, Parris adds, was playing against his teammate Austin Summers.

Looking ahead, Parris’ short-term goal is to win the 2019 BEF 9-Ball Junior Nationals 18 and under and to win the WPA world championship in 2019.

“I also want to focus on my education with college in mind,” he says. “My long-term goal is to play professional pool and maintain a career as a computer engineer.”

BCAINSIDER.COM | 13

BCA TAKES OVER BILLIARD EDUCATION FOUNDATION As of 2019, the Billiard Congress of America will assume oversight and day-today management of the Billiard Education Foundation.

Originally formed in 1993 as a non-profit charity, the Billiard Education Foundation has long been committed to promoting a lifelong love of pool and building the next generation of players through youth programs and academic scholarships.

Among the key programs of the BEF are the annual BEF Junior National 9-Ball Championships, BEF National Qualifier Tournaments, annual selection and support of juniors competing in the WPA World Junior 9-Ball Championships, academic scholarship and awards, Pool in School programming and curriculum development, and junior instruction in partnership with the Professional Billiard Instructors Association.

BILLIARD

“After teaming up to produce the BEF Junior Nationals, Atlantic Challenge Cup and Break and Run Junior Premier Instructional Program, it is evident a partnership is the best way to promote the game to a new generation of players,” says Brian Igielski, BCA’s chairman. “I’d like to thank the Billiard Education Foundation’s Board of Trustees and Billiard Congress of America’s Board of Directors for their support in making junior pool a priority. We look forward to making the most of the support our industry is demonstrating for junior programs.”

“This partnership is a great addition to the ever-growing support we are dedicated to providing junior players and their parents,” says Tom Riccobene, BEF’s former president. “In the foundation’s 30th anniversary year, throughout America more teachers and coaches than ever now recognize that playing pool promotes positive growth in social, cognitive and physical skills. On behalf of these professionals, as well as our fantastic group of volunteers and trustees, we want to thank the Billiard Congress of America for their commitment to help us promote, operate and grow our junior programs.”

14 | BCA INSIDER • NEW YEAR ISSUE 2019

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THE POWER OF

TRADE

By Charles S

Everyone is looking for an experience now. Something to do.

Something that makes them put down their phones and experience a new or innovative product, service or immersive installation. That’s the appeal of exhibiting at a trade show.

Hatfield, Pennsylvania, says that prior to the recession, the store regularly appeared at two trade shows a year, with the goals to sell as many hot tub units as possible and showcase its game room products.

Trade shows have become a new platform with which to think about one’s company and offerings. But in a sea of tables and booths, how does one stand out? For billiard retailers and manufacturers, there are innovative ways to display products, have customers test the products and even play with them during a trade show.

“Once the recession hit, we pulled back from both of these shows for many years. As things started to improve, we picked back up with the larger of the two shows – the Home and Garden outside of Philadelphia, and displayed our game room items,” she says. “I try to put together a ‘room’ with matching finishes and as many different items as possible. We usually have a matching shuffleboard and pool table with a nice bar, stools to match, a pub table and stools, artwork, dart board, and some sort of video game.”

“The secret to success is to study the competition at trade shows, and study brands that do it right that are outside of your industry, and apply it to your brand,” says Beth Lawrence, president & CEO of Beth Lawrence LLC. “As I like to ask my clients, ‘What are the five senses of your brand?’ This leads to creative thinking and crafting an overall experience, rather than setting up a booth and giving away a tchotchke.”

Audra DelConte, owner of Royal Billiard and Recreation, 18 | BCA INSIDER • NEW YEAR ISSUE 2019

Once the show is over, Del Conte always holds a store-wide sale the following weekend to give people a reason to come to the store while they are still top-of-mind.

“We get them curious, tell them that what they are seeing at the show is just a small part of what we offer and then

SHOWS

S. Donnavan

get them in,” she says. “I actually increased our floor space for this coming February’s show as I felt that last year was a great success.”

GET IN FRONT OF PEOPLE David Poulos, director of marketing for the Pinnacle Advisory Group, says trying to drag your target audience out to a factory or showroom is tough when most people are busy, so going to a trade show is a great way to quickly get in front of a lot of people.

“It’s a lifestyle-based industry so why not showcase it in an environment you can create and control,” he says. “Build a man cave in your exhibit, showcase the products in use, and create the ultimate purchaser’s surroundings, things you can’t do on a factory floor.”

One of the great things about a trade show is it offers a captive audience, so it’s important to take full advantage of that.

“This is a great chance to put your best foot forward, and capture some market share,” Poulos says. “A good tradeshow program, with a solid follow-up program and some pre-show marketing, pays for itself by the next quarter if done right, and pays dividends the rest of the year.”

Plus, trade shows are a great opportunity to launch new products.

“You can introduce the new product to the target audience in a very concentrated way at relatively low cost, to a cluster of influencers,” Poulos says. “You can also do some testing and customer research, to see what parts of the product really resonate, what benefits to highlight in the messaging, how to position the product properly, with real buyers in a real commercial environment, while you have their attention.”

There are other reasons, depending upon one’s goals, be it lead generation, new product launch, market testing or simply brand awareness.

BCAINSIDER.COM | 19

THE TRADE SHOW QUIZ Elliott B. Jaffa, a behavioral and marketing psychologist, says a potential exhibitor should take a 10-question Trade Show Quiz to see how well the organization benchmarks against the best.

DOES YOUR COMPANY…

1 2 3 4 5

Have a strategic trade show marketing plan in writing to identify your company’s specific trade show objectives to capture qualified leads?

 Yes  No

Set up a “War Room” to brainstorm and develop your trade show game plan: specific goals and objectives, script options, and a lead development strategy before hitting the road?

 Yes  No Identify the “right” people within your company to staff your booth?

 Yes  No Have one “stop-‘em-dead-in-their tracks” statement or qualifying question to ask an attendee walking by your booth that causes that person to stop, look at your products or services, and listen to your “elevator pitch?”

 Yes  No

Effectively and gently move along the attendee who is not the person who has the authority to make the final decision yet find out the name of the person who has the authority to say, “Yes?”

 Yes  No

6 7 8 9 10

Apply data hygiene: cleaning up your database to rank and segment potential customers and purge the worthless ones?

 Yes  No Use last year’s data (leads, sales, contacts) in preparing for this year’s trade show?

 Yes  No

Strengthen its credibility by asking last year’s satisfied customers to spend a half-hour at your booth to offer testimonials to this year's potential buyers?

 Yes  No

Decide the real three things you want to accomplish by exhibiting at each show to increase business: ROI on your trade show investment (travel expenses, booth rental, salaries, etc.)?

 Yes  No

Send out a mailer or email that actually gets read and draws attendees to your booth?

 Yes  No

Scoring: If you answered, “No” to at least five of these questions, you need to reconsider your trade show strategy.

There are plenty of reasons to exhibit at a trade show. No matter what your reason for attending is, be sure to clearly define your goals beforehand and make a plan.

20 | BCA INSIDER • NEW YEAR ISSUE 2019

WHY GO OUT, WHEN YOU COULD STAY HOME AND RUN-OUT IMPERIAL CAN TURN YOUR HOME INTO YOUR NEW FAVORITE PLACE TO PLAY

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Pantone 16-1546: Living Coral

SUCH A COLORFUL WORLD

By Anthony Stoeckert

Every year, paint companies and design experts announce the newest trends in colors, and billiard retailers can do themselves a big favor by learning about these colors and how they can help their businesses.

Billiard enthusiasts who are designing a new game room, or revamping an old one, will want to feature fashionable and exciting hues in these spaces, and staying on top of these trends allows you to offer insights into elements such as the color of cloth on a pool table, furniture, and other items that are found in game rooms.

In short, Colors of the Year are a valuable tool people use when they are decorating their homes.

“It is a guide that forecasts the popular colors in design,” says Amy Wax, a color expert whose website and blog, www.color911.com offers news and insights about colors. “The Colors of the Year can also serve as inspiration to see what colors would be great to tie in to your decor, and focal pieces like your billiard table.”

She adds that she has decorated her own game room with a “brilliant gold” and she chose a gold fabric for her billiard table.

22 | BCA INSIDER • NEW YEAR ISSUE 2019

“[It] became the focal point in the room,” Wax says. “In contrasting with the dark wood of the table itself, it is absolutely stunning! With gold fabric tied on the table, it reflects the accents in the room and even the Brunswick insignia on the table.”

She adds that Colors of the Year are a design guide, and also a source of inspiration that can give your customers ideas as to how to feature their billiard tables into their décor.

“It also gives you colors that will make your table not just a game table, but an elegant design element in your home,” Wax says.

AND THE COLORS OF THE YEAR ARE… Benjamin Moore’s Color of theYear for 2019 is Metropolitan AF690, which is described as a stylish gray with cool undertones.

“Metropolitan AF-690 illustrates the coveted feeling of restorative quietude and emphasizes the calming role gray plays in society,” says Andrea Magno, a color and design expert for Benjamin Moore. “Not arresting, nor aggressive, this understated yet glamorous gray exudes beauty and balance.”

She says Benjamin Moore’s team of four color and design experts has seen the color emerge in various industries, such as interior design, the arts, design, architecture, pop culture, fashion and home furnishings.

“We continued the conversation to look at other colors that were also influential and would play a role in our annual Color Trends palette of 15 colors,” Magno says. “For 2019, the Color Trends palette ranges from ethereal neutrals to frothy pinks, rich blues and greens.”

Benjamin Moore’s 2019 Color Trends Palette Head Over Heels Cloud White

THE PERFECT SHADE FOR 2019 Pantone is a company famous for its color guides, and it made news late last year by announcing Living Coral as its Color of 2019.

“Vibrant, yet mellow Pantone 16-1546 Living Coral embraces us with warmth and nourishment to provide comfort and buoyancy in our continually shifting environment,” the company announced.

Putnam Ivory

Soft Fern

Pashmina

Beau Green

One of the reasons the company gave for its selection is that it fulfills people’s desire for “authentic and immersive experiences” in reaction to today’s world, in which technology and social media play ever-growing roles.

Kona

“Sociable and spirited, the engaging nature of Pantone 161546 Living Coral welcomes and encourages lighthearted activity,” the company announced in a press release. “Symbolizing our innate need for optimism and joyful pursuits, Pantone 16-1546 Living Coral embodies our desire for playful expression.”

Hunter Green

Furthermore, Pantone explained that Living Coral is a “nurturing color” that is found in natural surroundings yet also has a presence in social media.

Balboa Mist

“Pantone 16-1546 Living Coral emits the desired, familiar, and energizing aspects of color found in nature. In its glorious, yet unfortunately more elusive, display beneath the sea, this vivifying and effervescent color mesmerizes the eye and mind,” the company stated. “Lying at the center of our naturally vivid and chromatic ecosystem, Pantone Living Coral is evocative of how coral reefs provide shelter to a diverse kaleidoscope of color.”

CHOOSING THE COLOR OF THE YEAR Magno says numerous factors are considered when selecting the Color of the Year. The goal, she adds, is to capture “what’s in the year” and offer insights on how prevalent colors are shifting.

Decorators White

Smoke

Metropolitan

Black Pepper

Kendall Charcoal

Hale Navy

BCAINSIDER.COM | 23

“We travel globally and research extensively as we pick up cues that emerge in seemingly disparate industries that can signal a direction for a given color family,” she says. “As we cull through this information and find commonalities in color, we also give a lot of thought to how people select paint colors and which colors are most applicable for the home, while remaining mindful of the color trends of years past. We know that the colors people use in the home are often there for more than a year, more like seven years, so we want to look at color through that lens to guide people through the color-selection process.”

BRINGING THESE COLORS TO BILLIARD ROOMS According to Magno, several of the hot colors for 2019 are ideal for billiard and game rooms. She notes that those spaces often showcase materials such as leather, wool, and rich tones. Colors that complement those include Hunter Green 2041-10, Beau Green 2054-20, or Hale Navy HC-154.

“For a slightly more modern approach look to colors including Kendall Charcoal HC-166, Black Pepper 2130-40 or Pashmina AF-100,” she says. “Each of these hues will serve as a great backdrop to not only the many elements in the room, but also complement the mood of a billiard or game room.”

One benefit to 2019’s popular colors, Magno says, is that they are versatile and allow for many options in the game room.

“If the entire room is being re-designed, think about how the walls, trim and ceiling can tie together for an enveloping feel that enhances that ‘clubby’ mood,” she says. “For example, use Beau Green 2054-10 on the walls, and use Hale Navy HC154 on the trim, and perhaps the ceiling too.”

She also suggests trying Black Pepper 2130-40 on the walls in a matte sheen and in a semi-gloss finish on the trim or millwork.

“This will create a very slight difference in color that is enhanced by the use of lighting in the room,” Magno says. “If a lighter color is best for the room, look to Pashmina AF-100 for the wall color, Balboa Mist OC-27 for the trim, and then opt for a darker color on the ceiling such as Kendall Charcoal HC-166.”

These colors even can be featured in rooms that are being updated and spruced up, not undergoing a complete overhaul.

“The colors in the 2019 palette work very well with a variety of materials and other colors, so if sprucing up the space includes a fresh coat of paint on the walls, these hues will not only complement existing items such as area rugs, furniture 24 | BCA INSIDER • NEW YEAR ISSUE 2019

or window treatments, but they can instantly update the look without a major overhaul,” Magno says.

GETTING OUT THE WORD Billiard retailers can benefit from these colors. When dealing with customers who are designing a game room for a new home, or are redesigning their current game room, offering some insights on popular color trends can help customers choose the right furniture, pool table and other items to complement those colors.

“Bringing the most directional colors to consumers can be achieved in-store by using trend palettes for vignettes that serve as backdrops to billiard tables and other game room pieces,” Magno says. “If consumers can see how paint colors will complement the variety of finishes and materials available for use in game rooms, they will be able to see how wall color can enhance their purchase. This will not only help customers to envision their eventual space, but ease the process in making color and finish selections for every aspect of the game room.”

So make brushing up on 2019’s popular colors a New Year’s resolution, and there’s an excellent chance your effort will pay off with some big sales.

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SIX GENERATIONS OF SCHMIDTS

By Keith Loria A.E. Schmidt, which crafts beautiful pool tables and game room furniture in St. Louis, Missouri, has been family owned and operated since 1850, maintaining a remarkable allegiance to the original ideas of its founder, Ernst Schmidt.

“We have always maintained that quality pool tables should be the focus of our business, that we should be the ‘go-to company’ when no one else can help,” says Kurt Schmidt, who co-owns the company with his wife, Karen. “A pool table hasn’t changed that much in 100 years; in fact we still build one model that came out in 1924. We are all for the family-run mom and pop billiard dealers. They are the backbone 28 | BCA INSIDER • NEW YEAR ISSUE 2019

of this industry year in, year out. They need to be protected and helped in every way possible.

Kurt and Karen Schmidt get help running the company from their three children – the sixth generation of the family to work in the billiard industry.

Michael oversees the factory and makes sure production goes smoothly, Stephanie strives at selling and handles most of the wholesale operations, and Rachel is passionate about designing tables and the behind-the-scenes analytical work.

“All five of us feel a very strong desire to keep the business in the family,” Stephanie says. “In a company as old as ours, we feel very proud of the accom-

plishments of the earlier generations and how they were able to overcome different situations of their time to keep the business going.”

A.E. Schmidt’s dealers know that about the company, and understand the family will do everything in their power to help them be successful.

“All of the family currently involved feel that they are caretakers of an institution built on the backs of the previous generation,” Kurt says. “While all of us have ideas and desires on how the business is to be run, there is a strong devotion from all to respect the trust that has been earned over the years, and to maintain the mutual loyalty to our

dealers and customers. We have stayed true to our core beliefs and our products. I doubt that will change much in the years to come.”

A STORIED HISTORY A.E. Schmidt Billiards was founded by Ernst Schmidt, who immigrated to St. Louis in 1849 with his mother, sister, and brother to escape a Civil War that was ongoing in Germany at the time.

He delayed opening his business for a year because in 1849, gold had been discovered in California, and St. Louis, the largest city of the west, was a jumping off place for the 49ers.

Opening his store officially in 1850, Schmidt specialized in turning ivory and began advertising for billiard balls, ten pin balls, and smoking pipes.

“The balls had to be trued and re-colored every few years; cues needed new ivory or buckhorn ferrules and leather tips attached,” Stephanie says.

“He also began servicing billiard tables. He married in St. Louis and named the company after his wife, Auguste Schmidt. Their son, Oscar, moved to Kansas City for a few years to learn wood working and brought his skills back to A.E. Schmidt Billiards, manufacturing the first pool table for this company.”

KEY DECISIONS Around 2008, Kurt wondered if the industry would continue supporting a domestically made pool table and he was pleased with what he discovered.

“That answer has come loud and clear that this industry still wants a quality hand-built table. More importantly, they want options – lots of them,” he says. “We have based our business on trying to never say no to what the customer wants design-wise. We currently build nearly 70 different models, some of which are private label. While most

This is Bob and his dad

ALL IN THE FAMILY Harold Schmidt, great-grandson of Ernst, acquired North Little Rock, Arkansas-based Jones Brothers Pool Tables in 1959, offering A.E. Schmidt pool tables along with other renowned brands in the industry.

Bob Schmidt, Harold’s son, joined the family business in 1972 helped grow the store into a top outlet in the state, offering shuffleboard tables, table tennis, foosball, air hockey, darts, bars, and card tables and providing customers the most complete game room experience.

“We’re in a 9,600-square-foot retail facility and do all types of repairs to pool tables and have about 26 tables on the floor at all times,” Bob says. “We have a nice selection in town of chess sets and dominoes and darts as well. We do little niche stuff that no one else carries.”

“I studied history in college and I love history and it’s great being part of history in a specialty field like this and one with a great family and a great game,” Bob says.

Another link to the family is Schmidt Billiards and Game Rooms in Columbia, Missouri run by Fred Schmidt (great grandson of Ernst and brother of Bob), since 1983.

“My family history is entwined with the history of billiards in America,” Fred says. “I started learning the trade when I was 15 and worked primarily as a mechanic’s helper. I went to college and kept my hand in it, and thought I would get out of the industry, but when I turned 40, I decided to sell tables and started a store of my own as a dealer.”

Jones Brothers Pool Tables even created an A.E. Schmidt custom pool table for the national Dave & Busters franchise, securing an exclusive distributorship in all the Dave & Busters venues.

His store sells and services new and used pool tables, shuffleboard tables, foosball tables, pool cues, darts, poker and casino supplies, table tennis supplies and Man Cave decor (signs, neon clocks, etc.). His daughter Chloe is now involved as well, furthering the family legacy.

The rich history of Jones Brothers Pool Tables continues with the fifth and sixth generation of the Schmidt family in leadership roles – pursuing contemporary offerings while honoring the company’s commitment to excellence and family fun.

“Kurt and I have a very good working relationship and I’ll purchase tables from my brother to bring them up here to sell and I’ll act as a dealer for him,” Fred says. “It’s nice because I can combine a work trip with a pleasure trip 3-4 times a year. It’s always fun to see family.”

BCAINSIDER.COM | 29

of what we build is semi-custom, we do lots of full-blown customs.”

The company’s flexibility in woods, finishes and designs has been a big help to many of its dealers and has helped A.E. Schmidt greatly expand its dealer presence.

According to Kurt, a top showroom in today’s world is made by what kind of experience you can bring the customer when in your store.

“As of August this year, we implemented that change to our own showroom, by closing a branch store and adding a showroom on the front of our factory,” he says. “We made this decision so that our customers could experience all the stages of our product, from going into the factory to see how the tables are built, then going back in the showroom and building their table exactly how they want. This type of experience really helps close a sale and helps show the customer the value of our product.”

The service component of the business makes up around 15 percent of what the company does.

“We typically run two crews throughout the week who provide everything

from pool table moving services, recovering and delivery of new tables,” Kurt says. “We also can be found doing quite a bit of repair work like cushion replacement, pocket repairs and antique restorations.”

While Kurt shares it’s a fun and rewarding industry, it’s not an easy one. And while it’s necessary for dealers to handle low-priced options, it is equally important to offer a diverse range of products that will appeal to just about anyone who does come through their doors.

“Service must be paramount, offering what the customer can’t get on Amazon is the key,” he says. “If your goal is to be the cheapest supplier in town, you will probably fail. Likewise, the old methods of actually getting a customer to your store has changed. Radio, newsprint and TV no longer cut it.

I think a successful day is captured in one statement: ‘I just got my pool table and I love it.’”

THE SCHMIDT NAME To be worthy of the Schmidt name, it has to be a top-quality product. You don’t need a service contract with a Schmidt table because they last forever.

“In general, the five or six American billiard manufacturers who build over a couple hundred tables a year still build the best tables in the world,” Stephanie says.

“What installers are learning the hard way is that imports may look great on the first install, but many of them have trouble lasting even one move. In our case, you see old Schmidt tables just about everywhere – so we know that they can hold up to just about anything that’s thrown at them. This comes from the company mainly suppling commercial pool rooms in its past. That type of construction has been handed down through the years and is still used in our production.”

In 2018, A.E. Schmidt’s best seller was the Hamilton Model, a transitional style model that is solid wood-dowel pin construction at an affordable price.

Other big sellers were the Hamilton, a transitional type table that is very in style right now; the Topaz, a pedestal-style table which has been a constant in the line for the last seven years; the DeVille, a retro mid-century modern-style table that the designers are loving; and the Scorpio, an entry-level table in a uni-body style but in trend with the “transitional” vibe.

“We also manufacturer our own cue racks, and I would say a cue rack is BCAINSIDER.COM | 31

purchased 25 percent of the time with any table purchase,” Stephanie says. “In our own showroom, we sell Olhausen Shuffleboards, 60-in-1 game units, Amisco bar and counter height stools and the Cornilleau table tennis units on top of everyday supplies such as cues, cloth, tip tools, etc.”

“It’s been an honest year,” Kurt says. “The billiard industry has been in a decline for 10 years now. That doesn’t mean there are not good opportunities out there or positive things happening. The story used to be is a pool table a game or a sport? Frankly, I don’t have that answer – but I know this – it is a piece of furniture. Styles change more rapidly now than they did before. Decorators are now a huge part of this business and dealers that have gone after that business are doing well. For us, our manufacturing business is doing very well, and we sell everything we can build.”

Retail wise, items such as lights, small supplies and two-piece cues are getting hammered by the internet.

That is why the company changed its format completely this year – no slat wall, pegboard or self-serve kiosks in the store.

“You have to ask for what you want, that way we can explain it and direct them to the absolutely correct prod-

32 | BCA INSIDER • NEW YEAR ISSUE 2019

uct,” Stephanie says. “Customers are responding to it, and they seem grateful that a knowledgeable person is helping them. Pool tables continue to be something people will actually visit a store and see, so that has been pretty typical to the past three or four years.”

Reflecting on the legacy of the company, Kurt is proud that it’s now in its sixth generation.

“All the current members feel that we have to live up to what the prior generations have done,” he says. “That’s not to say that we all don’t have ambitions beyond those of the past for this company. Everyone wants to contribute and make their own mark. It seems so basic and simple, but we are one of the few that have not diversified into other industries.”

NSGA DISSECTS THE STATE OF THE INDUSTRY

By BCA Insider Staff The National Sporting Goods Association recently released “Sports Participation: 2018 Edition,” a study on the Billiards/ Pool category in which 34,000 individuals who are ages seven and older were asked their habits on the sport.

The study revealed that in 2017, there were 21 million billiards/pool participants in the U.S., broken up as 13.9 million male players and 7.1 million female players.

Of those that played, 12.4 percent classified themselves as “frequent” players, meaning they played at least 30 times over the course of the year; 50.2 percent said they were “occasional” participants (participated 5 to 29 days in the

year); while 37.4 percent called themselves “infrequent” players (2 to 4 days during 2017).

Participation was most developed within the 18-24 age group, with more than 3.1 million players falling within this age segment. Of those, it was most developed within the West North Central region of the U.S. Additionally, participation was most developed among households with incomes between $100,000 and $150,000.

Here is a look at some of the data that the NSGA collected.

Distribution of Participation

by Lifecyle Demographics 19.5%

19.0% 18.2% 17.4%

16.8%

16.2%

15.7%

15.7% 14.6%

13.9% 12.9% 12.2%

12.1%

11.8%

11.4% 11.2%

10.0%

9.6%

9.1% 7.9%

7.4%

10.0%

10.2%

9.9% 9.1% 7.6%

7.6%

7.0%

6.7%

6.7% 5.8% 5.1% 4.3% 3.6%

Total Affluent Singles Affluent Families

4.8%

4.0%

Frequent Low/Mid Income Singles Low/Mid Income Families

34 | BCA INSIDER • NEW YEAR ISSUE 2019

4.5%

3.4%

Occassional DINKS Affluent Empty Nesters

Working Parents Low/Mid Empty Nesters

3.8%

3.3%

Infrequent Single Parents Age 65+

Participation By Age Group Index 7-11

Participation (MM)

48

0.7

12-17

83

1.5

18-24

143

3.1

25-34

139

4.4

35-44

139

4.0

45-54

102

55-64

3.1

85

2.5

48

65-74 75+

Frequency of Participation in 2017

37.4%

1.3

38

50.2%

0.3

Occassional (5-29 days) Frequent (30 or more days)

Participation By Household Income Index < $15,000

12.4%

Participation (MM) 1.8

77

$15K-$24K

1.9

92

$25K-$34K

1.9

98

$35K-$49K

Infrequent (2-4 days)

2.2

80

$50K-$74K

3.9

109

$75K-$99K

Participation (in millions)

2.6

101

35 $100K-$149K

4.0

134

$150K+

2.7

96

30

28.2

25

Participation By U.S. Region Index

Middle Atlantic

113

2.0

East North Central

120

West North Central

West South Central Mountain Pacific

3.6 134

South Atlantic East South Central

1.1

73

24.0 21.8

20

Participation (MM)

New England

Total Participation Male Participation Female Participation

31.7

1.8

20.0

31.7

19.5

20.8

21.5

21.3

21.0

21.5

21.3

21.0

7.9

7.3

7.1

28.2

15

24.0 12.0

10 5

21.8 10.6

20.0 9.1

8.5

19.5 8.8

8.4

20.8 8.4

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

3.8

91

1.0

83 88

2.2 112 108

1.7 3.7

*Graph data from National Sporting Goods Association,“Sports Participation Single Sport 2018 Edition” [PowerPoint Slides].

BCAINSIDER.COM | 35

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CONNECTING GENERATIONS SINCE 1845

PREPARING FOR THE FUTURE THREE VETERANS OF THE INDUSTRY—A MANUFACTURER, RETAILER AND ROOM OPERATOR—DISCUSS HOW THEY ENVISION THE POOL ROOM OF TOMORROW

By Michael Bodley Though both home game-room connoisseurs and commercial establishments have in recent years embraced the modern – including air hockey, shuffleboard and arcade games – billiard retailers and manufacturers, as well as those who buy pool tables, say they’ve seen a trend toward the traditional this year.

It’s all part of a difficult projection for pool industry types: what customers want in the “pool room of the future” and how to deliver it. Like clothing designers, there’s also a certain impetus on manufacturers and retailers to set the agenda in terms of what is fashionable and what is not.

Throughout the 2000s, and into the 2010s, billiard tables were built bigger and flashier, some featuring built-in lighting, others sporting cloth in wild colors that stood out from the classic shade of tournament blue. Manufacturers of pool balls jumped in by offering their signature shiny, resin-coated spheres in an array of hues consumers had never seem.

Such tables were often made of cheaper materials, compared to those on the upper end of the market. But especially in 2008, when the Great Recession roiled the United States and sales across the home leisure industry plummeted, they offered consumers a lower-cost option for adding a table of their own in the living room.

As the economy has improved, purchases have increased. And many billiard veterans who have been in the business for decades say they cannot quite recall a better time to make money in a business with a market share that remains relatively rather cramped, with a limited revenue ceiling.

VIEW FROM A MANUFACTURER Cris Gould of Legacy Billiards, a billiard manufacturer, says pool dealers apply pressure on manufacturers to

both adapt and anticipate shifting demand for their recreational wares. But the onus is also on the manufacturers to figure out what is trendy – and, more importantly, what will sell.

“We react to what (customers’) needs are,” Gould says. “We sort of drive some of the responses to trends and so forth that our dealers respond to.

The sales are driven by (the dealers).

Overall, what we’re seeing is more consumers are interested in the styles of the product, meaning certainly rustic-style, which has been trending for a while. But they also want some of the finer-finished styles and the gray finishes, crafted out of gray wood – mid-century, modern looks.”

The billiard business is unlike other American industries – again, take clothing, for one – in that stylistic evolutions tend to plod their way along, instead of switching things up with every passing quarter or season.

BCAINSIDER.COM | 37

The snail’s pace, in a way, is a boon to manufacturers and retailers, since they must change the way they do business less often than others. But it also raises the competitive stakes in a business where minutes matter in terms of getting a leg up on rivals. Just like in an Olympic swimming sprint, the athlete with the fastest start off the block and into a streamlined dive, followed by a rapid dolphin kick, has a stellar shot at standing on the gold-medal podium.

VIEW FROM A ROOM OPERATOR Pool rooms will be changing in the future as well, as operators look to attract a younger crowd.

Mark Griffin, who owns Griff’s Bar and Billiards, located about 1.5 miles west of the gambler’s mecca that is The Strip in Las Vegas, says he does not buy much into the idea of following trends and shifting the style and presentation of his pool hall, which is considered one of the finest in the country, by no small measure because of the professionals who come to practice and participate in tournaments that draw competitors the world over.

Though Griffin has intentionally kept prices low – to the tune of $10 for a table for a full eight hours during the slower part of the day, starting when the bar opens, and rising to $10 an hour for a table after 6 p.m. – he is doing so to follow the tact of trying to draw in more casual players via discounted prices. The professionals or semi-pros, who are after quality will pay more, regardless, for a top-shelf experience, he reckons, but regular Joes are less than willing to plunk the cash down on the table.

His table rental fees, unlike some other major pool halls concentrated in New York City and elsewhere, place no caps on the number of players permitted to play on a certain table at a time.

Besides, Griff’s, like just about every 38 | BCA INSIDER • NEW YEAR ISSUE 2019

billiard establishment in the country, generates the bulk of its revenue from high-margin food and drink sales.

Come for the cheap games; stay for the snacks and booze and the talk that is part industry watercooler, part well-meaning trash talk.

The pool hall that greets players from the get-go is dimly lit – save for the lights carefully positioned to bathe the tables, decked out in tournament-grade blue cloth, with just the right touch of illumination. It’s a delicate balance: too much light can be a bit blinding on the eyes; too little and the balls blend in.

The design is old-school to the core, perhaps something straight out of the 1950s, when men came on weekends – and weeknights after work – to swill beer, smoke cigarettes inside (they weren’t bad for you then, remember?) and escape reality for a little while. Griffin has no patience for cigarettes inside – he has banned them, finding the smoke to make rooms permanently reek of the nicotine mixed with carcinogens. And, besides, he says, serious smokers have only to pop outside for a few puffs.

The ceiling is an unobtrusive shade of purple that prevents light from reflecting down onto places where it isn’t wanted. The walls are covered with two-foot high diamonds that evoke the riches vied among by the masters of the game. At the five-foot mark, the walls are covered with a wrap-around mirror that reflects each break, each carefully aligned bridge, each cheeky behind-the-back shot, each moment of the game beloved by those who frequent Griff’s. Bleachers hug the walls beneath the mirrors, offering players who have been there for hours a chance to rest tired legs in between shots, or even take a break to watch another duo duel it out over a new game.

Since Vegas is Vegas, 26 different televisions line the walls, showcasing everything from European football to American football to horse races – all

a potential path to currency for the gamblers who frequent Sin City. There are also touches of comfort for the pool-weary – or the had-one-too-many beers – in the form of white couches that are in view of both the 22 pool tables and the two-dozen-plus TVs. Above the mirrors, artwork hangs that represents the essence of the game, through and through. A rare exception?

Audrey Hepburn. But then again, who doesn’t love Audrey Hepburn?

“We’re pretty traditional, and that’s for good reason,” Griffin says. “We’re a pretty old-style pool hall, no b-bop, no hip-hop, (none of that).”

A complication? Vegas is one of the toughest towns in America to advertise.

The coveted billboards and flashy lights are dominated by the casinos who rake in millions, and TV and radio spots can cost a small fortune. Griffin – like other owners bent on growth – is betting heavily on social media.

He pumps out promotions and specials and spreads word of his signature tournaments via Facebook and other online platforms. And, especially among casual players, he relies on the centuries-old tactic of word of mouth to reel in first-time visitors.

But word of mouth – and its digital counterparts that are worth far more when it comes to exposure, such as Facebook, Yelp and Google reviews – only work if a pool hall is worth a visit, and the all-too-important second visit, in the first place. That’s where Griffin’s obsession with quality comes in, from house Dufferin pool cues, now manufactured, to the chagrin of some retailers, in China, to tables crafted in Indiana by Diamond Billiard Products.

It gets more granular. Unlike the pool halls of yore, smoke-filled establishments that served cheap beer, rail drinks and food that required only a quick microwave zap, Griffin shoots for the opposite.

BCAINSIDER.COM | 39

Well-made drinks mixed by bartenders who know what they’re doing. Food that would not be out of place in an upscale restaurant. Men’s and women’s bathrooms that sparkle and shine.

“You have to have quality, or you’re not going to have players,” Griffin says.

“The pool community is a small community. People talk.”

Down the line, say half a decade, Griffin says of his business that has only been open two years, he would like to create a little more of a social experience – one that, again, is designed to make casual customers as comfortable as repeat visitors and those who play on a higher plane entirely.

That may involve taking out a couple of billiard tables and replacing them with restaurant seating. Or perhaps the bar will be beefed up. Live music is also on the table, but pricey licensing fees complicate matters.

“As time goes on, I see us getting a little more social,” Griffin says. “You’ve got to be careful. You can’t get boxed in. You have to keep trying something new, or you’ll sink.”

VIEW FROM A RETAILER On the seller side, Shane Bouchard of New England’s Maine Home Recreation, says styles are most driven by the booming coastal cities that dot the likes of California and the Eastern Seaboard.

The proposition matches that of other goods – think the California-driven craze for avocados that ballooned nationally earlier this century – in that those outside of the population epicenters may be left behind.

Bouchard, who operates a showroom in Maine, along with his wife and business partner, Allison Bouchard, tries not to worry about it. His company, which keeps the showroom open over sporadic 40 | BCA INSIDER • NEW YEAR ISSUE 2019

hours – or by appointment – has been doing just fine, for quite a while.

Everything the Bouchards sell is direct-to-consumer, eliminating the need to account for the shifting whims and fancies of pool halls and their ilk. Because they’re in a rural area, the Bouchards have embraced the internet earlier and more often than most. Everything they sell can be quoted in an email or over the phone, and the cost of delivery all over New England is factored into the bottom line.

“We’re in an internet age, so what I feel like has happened, because we live in a rural area, is we developed a business model of open-by-appointment,” Bouchard says. “Keep the overhead low; keep small stuff in the warehouse, so you have availability of product. That’s what everybody demands, is availability of products, because they can go on Amazon, make three clicks and have it the next day.”

He does keep an eye on the competition, mainly by visiting BCA exhibitions to spot the latest trends, a recent example being the gray cloth that started booming on the West Coast.

The business sells both used tables in good condition and brand-new ones, the majority new. Bouchard says he has seen no decline in sales of billiard tables in recent years, but he did note an uptick in sales of arcade games, especially older ones.

Much of the increased interest in arcade games, as well as shuffleboard, ping pong and foosball, have been driven by retired customers, Bouchard says. He suspects it’s the result of an improving economy that has made people feel more secure in their retirement, secure enough to create a game room for their grandkids to enjoy.

In the meantime, Bouchard says of his plans, why fix something that isn’t broken?

“The economy is good, very good,” he says. “I’m not really worried about being big and global. I don’t need that kind of headache.”

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SMART STEPS FOR FIRING STAFFERS

By Anthony Stoeckert Firing an employee is never fun. On a practical level, it means giving up hope that the person you hired can handle the responsibilities they were assigned to do, and that means a job search and likely being short-staffed for a bit. Then you have to put in valuable time and resources into training the replacement.

Plus, there is the human side of this decision. Telling someone he or she is out can result in a range of emotions, from sadness to defiance to anger.

But any longtime successful business owner is likely going to have to let someone go at some point. There are the hires who just can’t perform the job well. Other employees get off to a great start, then develop bad habits such as habitual lateness or developing a negative attitude about their work, or even your business.

Then there are more serious issues, such as an employee stealing from the company or exhibiting behavior that is inappropriate or makes their co-workers and customers uncomfortable.

42 | BCA INSIDER • NEW YEAR ISSUE 2019

Firing someone is, of course, different from laying them off. In the latter case, it’s usually because business is slow and you need to find ways to save money. This is easier news to break – the employee didn’t do anything wrong and there’s hope that they can return when things get better. Still, people can still take the news hard, so you need to be prepared for a range of responses.

GIVE THEM A CHANCE Don’t fire someone just because they’ve made one or two missteps, it’s not only irrational, it’s bad business. Everyone makes mistakes now and then, and a lot of people get into slumps where they have a bad few days or even a bad week.

And constantly getting rid of people means an endless cycle of training new employees, which takes away from valuable time that you could devote to improving your business.

So how many chances should someone be given before getting the boot?

“When it comes to performance, there should always be two warnings,” says Mike Moyer of Fair & Square Ventures, LLC. “This is especially important when company equity is at stake. I find that for most people, issuing a warning is harder than just firing someone.

Most people don’t even know how to issue a warning.”

A warning should be given in a professional, one-on-one meeting. In large companies, human resources employees handle this step. There also should be a letter, clearly stating the infraction, and the risks of what will happen if the behavior continues (you can find examples of such letters on the internet). It’s also important not to hold a grudge, and treat the employee fairly after the warning has been issued.

Dan York, CEO of Stellar-eMarketing, Inc. in Nashville says he often gives people several chances before letting them go.

“I’ve never had a number in mind, because good and loyal people should

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be given a lot of chances and actually do make lots of mistakes,” York says. “I simply look at those who don’t change.

Good people who should stay, change.

People that need to be let go, do not.

Simple as that.”

Alex Tran of Hollingsworth says she gives employees three chances before letting them go.

“And the issue should be very important,” she says. “I’ve seen people be let go from a job for being five minutes late. In an office setting, this may not be important, especially if you’re not client facing. In a client-facing position, this is definitely important and warrants discipline.”

JUST THE FACTS York says the decision to fire someone should come with real reasons and a record of those reasons.

“Get your facts together,” he says.

“Whoever is being fired should be fired for facts, such as statistics of non-performance. Letting someone go can get messy, so make it as factbased as possible. Keep emotion and opinions and rumors completely out of the picture.”

It’s also important to sit down with the person, face-to-face, and give them your full attention as you break the news. But there are steps you need to take before that meeting.

BREAKING THE NEWS Perhaps the most dreaded part of the firing process is actually telling the employee that he or she is out. It’s never fun to tell someone they’re losing their livelihood, and aside from that, you don’t know how the person will react.

Will they get upset and beg for another chance? Will they get angry and make a scene, or even get dangerous?

44 | BCA INSIDER • NEW YEAR ISSUE 2019

Because of those possibilities, you need to be smart when giving someone the bad news.

First, step up and do it face to face, even though less personal methods of communication, such as email and texts, could be quicker and less painful for you.

Cat Jones, director of operations for Planting Peace, a global nonprofit organization founded for the purpose of spreading peace, suggests going over the disciplinary steps you laid out that weren’t met, and give a specific reason for the termination of employment.

“Sound caring but firm; this is someone you’ve worked with who hasn’t lived up to your expectations, and while that might be annoying in the moment, overall it’s actually very sad for both of you,” Jones says. “Let your voice express a quiet disappointment; this is someone you truly believed in and gave many chances to stick around.

York also says that in-person is clearly the best method.

“Never do it by text or email,” he says.

“You need to keep the details in writing though, for records in the event that things get ‘messy.’”

He also suggests taking a direct and clear approach. Don’t try to “soften the blow.”

“I always state that, ‘We need to have a serious conversation,’ or some such statement, and then I just lay it on the line,” York says. “It’s better for you and them. There is no way to get around a tough conversation, so just do it and get through it.”

Tran suggests waiting until the employee shows up for their next regular shift, and give them a minute to get settled.

“Let them know that you need to meet one-on-one and discuss the reason for the meeting,” she says. “I would keep it honest, open and professional. It should not be softened.

I would present the documentation and make sure it is thorough so that the employee understands the reason for this decision.”

Moyer says it’s also important to let the employee say their piece and also not take what they say personally.

“The key is to give the employee space to be angry and provide support when possible,” he says. “In other words, don’t take words spoken in anger to heart and be prepared to help in spite of what someone says in the heat of the moment.”

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IT’S BUSINESS, NOT PERSONAL

One important part of the process is to make a checklist of items that need to be collected from your recently fired employee.

Zach Hendrix, co-founder of GreenPal, says owners and supervisors shouldn’t feel sad or responsible about letting someone go, because employees get themselves fired.

The checklist can include keycards, bus passes, computers and laptops, uniforms, any corporate credit cards, etc.

“It has been my experience that usually the person being fired is not totally surprised,” he says. “People know when they are not performing and they know if they did some specific thing that could lead to termination.”

He says he usually starts termination meetings by telling the employee something like, “Well I guess, or believe, you know why we are here today.”

“I do not offer a bunch of small talk and how sorry I am, or ask for any excuses since if we are having this meeting, I have already done my due diligence and I already know the outcome, there’s no room or time for negotiations,” Hendrix says.

Assuming you did your due diligence before firing the employee, be sure to stick to your choice and don’t be swayed by anything your now former staffer says or does.

“Be prepared for excuses, tears, cussing,” Hendrix says. “Allow them to rant for about one to two minutes and then stand up and state, ‘Well if there are no more questions I wish you well,’ and escort them to the door.”

MAKING THE BEST OF A TOUGH SITUATION There is little doubt that firing an employee will be uncomfortable and awkward, but it’s important to stay respectful and try to make the best of the situation.

46 | BCA INSIDER • NEW YEAR ISSUE 2019

Jones says she collects keys and uniforms, but she gives employees the option of keeping their uniform if they want. But she adds that collecting keys isn’t necessarily enough.

“Replace all the locks the employee had keys to, because those key replicating kiosks are everywhere and I’ve seen employers get burned by former employees who made copies of the keys,” she says.

There may even be times when you know the employee you’re letting go is smart and hard-working but just wasn’t the right choice for the job they were hired to do. In that case, you may want to consider offering some assistance in their job search.

“Offering a reference is great,” Tran says. “We recently had to let go of someone and apologized why this position was not a good fit for them, but were willing to help them find an opportunity elsewhere and provide a reference for them.”

THE HARSH REALITY Audra DelConte, owner of Royal Billiard & Recreation, Hatfield, Pennsylvania, has only had to let a couple of people go over her many years in the business.

“It is, of course, never a pleasant thing to do,” she says. “I first make sure that I have documented any issues, along with discussing them with the employee, giving them a fair warning that things must improve. I also have any documented items signed off on by the employee.”

If things don’t improve, she’ll ask them to come into her office to privately let them know they are being let go.

“I ask for their key, instruct them to collect only personal items from their desk or work area, let them know that their last check will be mailed, and that they will receive information regarding insurance, 401K, etc. in the mail,” DelConte says.

Thankfully, she has not had to deal with any real hostile situations, though the last person she fired did get caught stealing money from the company.

“I put cameras in the best locations and waited until I had him on tape in the act,” she says. “I was here the next morning at open to meet him and show him what I had seen – I made him watch the entire thing with me. There was something about this guy, he was kind of a hard-luck Charlie, that made me offer him compassion. We came to an agreement that he would pay me back all that was taken [I had been adding it up] from his last paycheck.”

She did not call the police, though others thought that she should have, and she told him that since she was offering him grace in the situation, she expected him to pay it forward.

THE #1 MARKETING MISTAKE BCA MEMBERS MAKE

By Brian Offenberger CeM, CSMA I’ve been helping companies with their marketing for decades. And for the past five years, I’ve been fortunate enough to help some BCA members make more sales.

During that time, I’ve been asked lots of tough questions. Things like: • How can I grow sales?

• What should I say on my website?

• Can social media bring me new customers?

But the one question that comes up again and again is:

What’s the #1 marketing mistake made by BCA member companies?

That’s a tough one because every situation is different. There are plenty of ways to mess things up.

your hard-earned money with me instead of the other guy.”

Let’s face it…most of us have competitors. Customers can buy similar products and services from other companies. That makes it hard for a customer to differentiate one company from another (except for maybe price).

The way to solve this challenge is to clearly define, then consistently communicate, what marketers call your “unique value proposition” or UVP. Unique describes what makes you different from your competitors. It is the characteristics of your services or products that set you apart from other companies in ways customers are willing to pay for.

There is one mistake I see repeatedly.

It’s a costly mistake. And it’s one that can be easily avoided.

Value defines for your customers what they get for their money. It is the basic worth your product or service brings to buyers.

This big mistake is not clearly communicating to prospective customers why they should shop with them instead of their competitors.

Proposition is your offer or suggestion that something be done, considered, accepted or adopted.

They don’t clearly answer for the customer, “here’s why you should spend 48 | BCA INSIDER • NEW YEAR ISSUE 2019

Your objective is to combine these elements into powerful yet concise statements that:

• Tell how you are unique in ways that are different from your competitors • Describe how your company brings value to the customer Your goal is to tell someone why they should buy from you instead of the other guy in about 10 words or less.

OTHER MISTAKES It’s best to avoid unique value propositions that: • Make claims that others can easily make – lowest prices, friendliest personnel • Make claims that are hard to substantiate prior to purchase – best service, knowledgeable personnel • Are subjective in nature – fastest service, quickest response • Talk about qualities of your company or features of your product – family owned and operated, in business for 10 years, etc.

Keep in mind that customers have expectations that are requirements for anyone they shop with and that featuring these requirements as part of your UVP is usually not in your best interests.

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When we ask companies why a customer should spend with them, most invariably answer with some variation of “great service.” Great service is certainly a necessity but it’s not unique. It can help you stand out after someone has dealt with your company if problems arise.

However, it’s much more important to communicate differences that help you stand out before things get to that point.

• Are things your competitor can’t claim to provide or do • Are what you are – not what you say or want to be • Are simple to understand by all in your target market

Then say it. Offer a money-back guarantee on game room furnishings? Find what it is you do better than others that customers are willing to pay for, communicate it and watch your sales soar.

HOW TO DEVELOP A STRONG UVP

And besides, doesn’t everyone claim to have superior customer service?

The best way to develop your unique value propositions is to:

DO THESE THINGS

• Ask yourself why someone should buy from you instead of the other guy • Listen to buyers and prospects to learn why they bought/didn’t buy • Determine what you can do to provide customer value that others can’t • Emulate best practices of others in non-competing industries

A strong UVP makes sales for your company. Strong UVPs: • Are clear, concise statements • Communicate differences between one product/service/company and others • Are objective or easily verifiable • Communicate real value to a customer

BRIAN OFFENBERGER Brian Offenberger CeM, CSMA, is the founder of Right On – No Bull Marketing, a small business marketing agency. Visit his website at: www.RightOn-NoBull.com.

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