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0109 furn world 2:furnworld 1/4/09 4:38 PM Page 50 Ask For Permission “Don’t send unsolicited e-Marketing as it will end up in spam filters or worse yet...” • There are usually several shopping • Receive relevant information when you sages and newslet- choices in that 30 mile area. contact them. ters they want to receive, and out • The majority of your store sales come If you don’t live up to these expecta- from the top 20% of customers. tions, they won’t hesitate to give their busi- of unwanted ness to those that do, such as IKEA and email offers. • Your top customers are also someone Crate and Barrel. Do not send else’s top customers. unsolicited e-Marketing as it Contact with your old and new cus- • Many of your younger customers and tomers should be geared toward value. will end up in your customers spam filters virtually all of your future customers Examples include, contact for past pur- or worse yet, get reported as spam and demand Modern Media – they grew chase, special order update, delivery con- your company will end up on an email up with it. firmation, preferred customer events, e- blacklist. Businesses must by law provide Newsletters, and specific next purchase opt out options. Proper businesses only This is your window of opportunity. You ideas. They do not want spam! send emails if the customer grants per- will eventually need to embrace modern mission. There is no opt-out with old- media, so why not do it before your com- The new consumer does not get the guard media. petition? Change is hard, but playing newspaper, digitally records television Asking permission isn’t difficult. There catch-up is harder. Trying to come from shows, opts out of mailed catalogs on are many ways to get customer emails behind has put the nail in many coffins. www.catalogchoice.org, never looks at online, through entry forms, give-aways the yellow pages and has only one phone – an internet capable mobile phone. (such as a free decorating guide or 4 TIPS TO HARNESS THE Consumers now give permission to chance to win merchandise) or in the POWER OF E-MARKETING only those companies they like and store at the point of contact using a sim- ple dialogue such as this: respect. 1. Always Provide Value And Build “Would you like to sign up as a pre- Relationships: So, the population is not 2. Ask for Permission: New media is ferred customer, for free? We will keep growing that fast. Your baby boomer cus- about permission. Consumers have got- you informed on any orders. And, you will tomers are retiring and have a fixed ten hit over the head for years with inter- get our exclusive email home style income. Your best customer’s sons and ruptive marketing practices. Their TV newsletter. Of course you will get exclu- daughters grew up with the internet and shows are put off by loud yelling car or sive notice of events not open to general email. But, these new buyers are getting furniture commercials, the paper is public” married and will be looking to furnish jammed with garbage that was once Some of you may say, “Most are going their own homes. trees, and their mailbox overflows with to say no!” Well, that may or may not be The key is to communicate in a new junk if not checked each day. If you say, true. What is true is that some will say yes fashion to these baby boomers and their “Well, interruptive advertising has worked and over time you will create a gold mine. tech demanding children. They expect you for me”, I say, “Nothing lasts forever.” One client of mine reported 9 out of 10 to be a savvy marketer so that they can: Consider permission. Now, people email addresses were being obtained have choice – On Demand. They can from his customers, and that he no longer • Find you on the internet easily. does any newspaper marketing. avoid commercials with TiVo, digi cable • Give them a website experience that and satellite. Many aren’t renewing their The next thing I hear from the mouths provides answers all their questions, newspaper subscriptions, instead looking of skeptics is, “Well, I don’t have many has a modern look and excellent for free news online. They are also being email addresses, so it’s not worth it!” functionality. proactive about opting in to email mes- Well, that’s the old-guard in them talk- 50 FURNITURE WORLD January/February 2009
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0109 furn world 2:furnworld 1/4/09 4:38 PM Page 52 Re-allocate Resources ing. The ideal email audi- friends you’ve purchased traditional our industry. What matters is that you start ence is an audience of media from are seldom equipped to in the right way and that you get results. “one”. That is because move your company into the future. They If you are starting from scratch because email can be totally per- generally get paid based on how much you need to redevelop your website, sonalized and targeted. It is media you buy, not on how well it per- depending on your needs, there are actually easier to start a forms. e-Marketing companies are fresh. decent options from $300 to $5,000 per program with fewer emails because Typically they employ forward-looking month. If you want to have search engines you can be sure that email addresses will people who are marketing, database and bring your listings towards the top of be collected properly. The key to success tech wise. They have new ideas and are searches in an average trading area, with e-Marketing is to have smaller tar- results oriented. e-Marketing results are expect to invest another $1,500 per geted message batches. known immediately. This has the advan- month. Add to this some advanced and A general formula that quantifies this tage of allowing savvy marketers to make integrated database email marketing so relationship between successful e- mid-course corrections to work toward you can make segmented queries, and Marketing and the elements that go into improved results. you will probably invest an additional creating an email message is: Here is one example of a forward-look- $1,500 in systems and very little per ing marketing campaign implemented by month. And finally, to make sure that you Degree of Refined Database a home furnishings retailer (Let’s call it do it right the first time, professional train- Segmentation + Relevance of XYZ Furniture). Through a custom data- ing and consulting firms may charge Campaign To the Target Consumer base query, XYZ Furniture segmented its between $1,500 and $2,000 per day. = Level of Response. customer database to identify outside All these costs are minimal when you designers. XYZ then created an email tai- consider the overall ad budget size of A permission based smaller list that is targeted will have much better results than lored to the specific needs of this group. most furniture retailers and the huge a larger list that was obtained through The result was that 90% of the outside opportunity cost of ignoring new media or questionable means. But don’t worry if designers saw the campaign, and 40% of just setting up an average website and your list is sub par. There are ways that them purchased. sending out occasional bulk emails. stores and salespeople can build great I’m not saying get rid of all the old. I lists quickly. It usually takes only one tar- am saying that it is time to transfer adver- NEXT ISSUE geted campaign to pay for a years worth tising dollars to new media partners that Details on how to effectively manage of email media advertising. understand furniture operations, how to your database to produce results. How to Permission marketing does not only craft creative e-Marketing messages, how execute targeted campaigns, and how to include email of course. There is also web to build a useful customer/prospect data- track results. media. With web media, you can drive base, and how to integrate data, mes- traffic to your web site by allocating a cer- sages and vehicles (including traditional Until then, explore your options for new tain amount of your ad budget per month media) into intelligent and result-oriented media partners! to target web searches in a defined area programs. For more information on this close to your stores. Through geo-track- topic, read Leslie Carothers’ excellent David McMahon is Director of e- ing, advertisers such as Google will list FURNITURE WORLD series. Past articles Commerce and business coach for your site by search term. Google “knows” are posted to the marketing management PROFITconsulting. PROFITconsulting is a where your store is through your comput- archives on the furninfo.com website. full service consultancy and marketing er’s IP address and can direct your adver- agency that specializes in retail furniture. tising efficiently to those consumers who 4. Re-allocate resources: So, how FURNITURE WORLD readers can contact are most likely to buy from you. much money should you allocate to your David at [email protected] or call him new partners? Some other industries are direct at 800-888-5564. For more informa- 3. Introduce new media partners: spending 10% or more on e-Marketing, tion on this topic, go to www.furninfo.com Unfortunately, media reps and some old but there aren’t any “rules of thumb” for to read all of David McMahon’s articles. 52 FURNITURE WORLD January/February 2009
0109 trax page 53:trax 1/8/09 9:36 AM Page 53 Add $5000 in NEW Additional Sales Per Salesperson PER MONTH Guaranteed! We Promise a 10 times return on investment in 60-90 days or we take it back. Performance as of Wednesday December 20, 2008 HELLO NATALIE, Every Saturday Morning GOAL Your goal for the month of December 2008 is $53,000 or Hand Each Member 1,766.67 per day. Your current sales volume through 20 days is $29,451.80 or $1472.59 per day. Of Your Sales Team VOLUME SHOULD BE To be on goal your volume should be This Letter Printed $35,333, so you are $5881.20 or 17% behind Target. If you maintain your current sales, your volume at month end will be $44,177.70. Which is $8,822.30 below your goal. The overall Automatically! showroom is 8% below goal for the month. SPOKEN WITH You have spoken with 137 prospective customers and sold 26. Your Closing Ratio was 19% which is 4% below the Other Trax Advantages: showroom average. Your average sale amount is $1132.76, which • Follows-up with unsold customers. is $88.73 below the showroom average of $1,221.49. NEED TO TALK WITH If you maintain your current pace with the • Creates automatic personalized to-do lists same closing ratio and average sales amount you will need to talk for each salesperson. with a total of 109 more customers to attain your goal of $53,000 • Accurate Front Door Traffic Counter (which for the month. Your average sales per day should be $2354.82 or removes non-customer counts). • Identifies over and under staffing. $882.23 more than your current average. • Measures traffic trends over time. TRACK FABRIC PROTECTION, SQUARE FOOTAGE, • Thank-you letters for unsold customers. • Charts customer shopping patterns. WARRANTIES OR UNITS You had a total of 90 pieces of Fabric • Increases advertising efficiency. Protected units and had 79 that were protected. Your closing ratio • Sales & management reports. for Fabric Protection was 87.7 %. The entire showroom sold a total • Simple integrated electronic solution. of 380 pieces of possible protected units and protected 264. The • Creates automatic personalized. overall percentage for the showroom was 69.5 %, which means you thank-you letters for unsold customers. • $5000 x #salespeople ____x 12 months= were 18.2 % above the showroom average. $ _____ (Big Bucks). ITEMS PER SALE AVERAGES Your average items per sale during this period was 2.15 items per sale. You were 0.42 items or 24.3 % above the showroom average of 1.73. MONEY BACK REVENUE PER UP Your Average \"RPU\" Revenue Per Up is GUARANTEE $215.22 (Closing Ratio X Average Sale Amount) This represents the sales dollar value of each individual opportunity you speak with. We guarantee the information The overall average \"RPU\" for the showroom so far during this you gather from our Automated od is $256.56 so you are below by $41.33 per opportunity. Upboard combined with the Traffic Counter will produce an additional $5,000 in revenue per month, per sales person within 90 days, or we will buy TRAX RETAIL PERFORMANCE TRACKING SYSTEMS the system back. Period! INCREASE REVENUES & Know Your Business Better Visit www.TRAXpeople.com and Receive a Free Movie Describing It All or Call 888/646-5462 or Tel: 713/532-1106
0109 furn world 2:furnworld 1/4/09 4:39 PM Page 54 Twelve Step Program To Get ALL EMPLOYEES ON THE SAME PAGE Taking these steps to organize your business will increase the focus and accountability of your people. Organizational Excellence by Ron Wolinski o you find yourself so busy trying have more people, more duties, more cere, truthful and really represents the cul- to “do” business that you don't responsibilities, more sales and more ture of an organization. It must represent have time to manage your busi- deliveries. Without the proper direction the core and foundation of any company Dness? Do you find yourself simply and policies, they may also have more and be the common thread that unifies “putting out fires” and not really making problems. every individual and every process within any progress during the day? Do you find Once a retailer realizes that associates the organization. This vital tool enables that the systems and procedures you used do not really understand what his or her every employee to move in the same direc- yesterday no longer work and are ineffec- company stands for, where it's going, how tion for all the same reasons. A proper tive because you've grown? it's going to get there, and what role asso- mission statement/statement of values Have you found that important business ciates should play, it becomes necessary to allows the organization to grow and evolve functions do not get done correctly or are look closely at the following 12 elements. to the next level. done differently by different people in your Once element #1 is in place and all organization? ELEMENT #1 associates have been familiarized with the basic focus and values of the company, it These are issues that a broad range of Mission Statement is time to review how the company is struc- furniture storeowners and managers bring Statement of Values tured, what roles each department, man- up time after time. As companies grow, Some owners believe that a mission ager and employee plays, and who reports things change. Small companies may not statement is simply a series of words that to who. The goal, of course, is to create have many problems resulting from poor doesn’t accomplish anything. This is cer- accountability. or confused communication and direction tainly the case if a mission statement is because there are fewer employees to deal interpreted as a slogan or an advertising ELEMENT #2: with. Larger stores, and mid-sized chains promotion. This tool only works if it is sin- Organizational Chart Associates in many retail organizations ELEMENT #1 across the country do not work in environ- ments where clear lines of authority exist. SAMPLE MISSION STATEMENT #1 They will, therefore, have the opportunity to ask different managers or owners the Our vision is to provide custom home furnishings that reflect the lifestyle of our clients through superior design, quality same question, in an attempt to get an products, services, and unmatched value. We are committed to exceeding our clients’ expectations through the hard answer that they want to hear. In addition, work, honesty and integrity of our staff of trained professionals and family owners. without a defined chain of command, managers and supervisors will provide SAMPLE MISSION STATEMENT #2 employees with conflicting information regarding the same problem or issue. Our purpose is to provide our customers with unsurpassed service through honesty, integrity, and a long-term relationship When this occurs, everyone loses. There is To accomplish this, our selection of home furnishings must be both unique and of high quality. We must provide a inconsistency in procedure and inconsis- genuine value that far exceeds the competition. Our staff, both sales and support, must provide the highest level of tency with instruction. This, of course, leads professionalism through intensive training and a sincere concern for the needs of our valued customers. to inconsistency in the minds of customers. 54 FURNITURE WORLD January/February 2009
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0109 furn world 2:furnworld 1/4/09 4:39 PM Page 56 ELEMENT #2 ORGANIZATIONAL CHART ELEMENT #3: has nothing to do with the goals and ELEMENT #5 objectives of the company. In such organi- Job Description Communication zations, poor communication between The next step after developing an orga- departments that are in conflict with one Another issue that plagues furniture nizational chart is to develop precise Job another will sabotage organizational retailers is a general lack of Descriptions that illustrate the duties, func- goals, and nobody will even realize it. Communication. Most organizations have tions and responsibilities of each individual few written directives, policies or proce- in the organization. Precise job descrip- dures. This creates problems when situa- tions enable all members of an organiza- ELEMENT #4 tions are handled in different ways depend- tion to understand what management’s Departmental Business Plans ing on the person handling them. expectations are, and how department and In order to unify the organization, bring Inconsistency and uneven performance employee performance will be measured departments together, and work as a team, ends up being expensive for any organiza- and rewarded. A problem common to each department needs to draft and adopt tion, and more importantly, will cause it to most retail organizations in our industry is a Business Plan. These individual plans lose business and sacrifice customer loyal- that associates and managers find them- should be created with the objective of ty. Consequently, policies and procedures selves doing everything. There is lots of contributing to the main corporate plan. need to be put down in writing in an redundancy in their roles. Nobody can be Sharing departmental business plans Operating Procedures Manual that will held accountable because no one is really helps to foster teamwork, because every help to solve a number of problems in charge. endemic to retail organizations. department head has access to informa- You know when accountability is an tion about the direction of every other When new employees have no written issue when you hear, ”I didn't know that department. Better interdepartmental reference to guide them, they need to ask was my job. No one told me.” Even worse, directives give organizations a unified, for help. The most common result is that organizations without job descriptions find clear direction. They also move organiza- the advice they get from co-workers or that processes and procedures are consis- tions towards a goal-oriented problem- managers has a good chance of being tently performed incorrectly. solving approach rather than a simple task inaccurate or inconsistent with corporate A similar problem may also exist at the orientation that emphasizes “putting out goals. department head level. Ill defined organi- fires” and placing “Band-Aids” on prob- Another problem that arises in the zations find that department heads con- lems as they occur. Once everyone is on absence of a written reference guide is that stantly tread water, and live from day to the same page, departmental managers routine verbal communication with day without making progress toward orga- will better understand corporate expecta- Associates permit issues to “fall between nizational goals. Often, each department tions and expect to be held accountable for the cracks” because initiatives and instruc- head will have his or her own agenda that their performance. tions fail to be clearly understood or 56 FURNITURE WORLD January/February 2009
0109 furn world 2:furnworld 1/8/09 3:29 PM Page 57 Finally, you will be on speaking terms with your POS software! “If it ain’t written, it ain’t real.” accomplished. The old saying, “if it ain't written, it ain’t real” should be a motto for retail managers. Verbal instructions that are perceived as merely discussion, have limited short-lived impact. Whether you use hard copy, e-mail or voice mail, a defined communications process must be established to adhere to in every instance. When associates are given a hard copy refer- Custom Design Software ence, they will better understand the needs of the orga- nization and their specific responsibilities based on those needs. introduces ELEMENT #6 Voice Technology Sales Floor Policies -Voice Technology- The sales floor is an area that tends to breed incon- sistencies and conflicts that can only be resolved with “THE BEST JUST GOT BETTER” written Sales Floor Policies. Rules that guide the opera- “THE BEST JUST GOT BETTER” tion of the sales floor are necessary, not only for sales consultants, but also for managers. Without written guidelines, managers are given carte blanche to inter- “Just attach a SEE THE BEST pret corporate policies. Written rules give organizations a better chance of providing consistent responses to microphone or a FURNITURE STORE SOFTWARE IN customers. This helps to avoid confusion and provides a bluetooth device. better customer experience. Floor policies also provide Las Vegas sales management with the tools to illustrate perfor- Use voice commands Bldg. B 16 floor th mance expectations and eliminate “gray areas” of inter- to talk your pretation. computer through OR CALL ELEMENT #7 the sale or 800.884.0806 Policy & Procedure Manual change menus. For Your Free Demo & A Policy and Procedure Manual is a critical tool to It’s simple! 50 Page Presentation help organizations be more consistent, eliminate errors and reduce expenses. Every department should be No training responsible for the development of a precise procedure necessary. manual. As departments grow and add new people, the ori- Most employees entation and learning process becomes critical to its and especially success. To create a policy and procedures manual is not an easy task. Someone within the organization must those who can’t take responsibility as the “policy and procedure cham- type will love pion” and coordinate, organize and manage this this interface.” process. Without the establishment of this tool, the ulti- mate loser will be your customers. They will receive -Jerry Katz, President inconsistent performance, and that in turn will decrease customer loyalty. customdesignsoftware.net [email protected]
0109 furn world 2:furnworld 1/4/09 4:39 PM Page 58 ELEMENTS 7&8 SUMMARY AND RECOMMENDATIONS Employee’s all-around performance. Excellent - Stands out as being one of the best I have. Good - More than fulfills the essential requirements. Satisfactory - does what is necessary. Fair - meets only minimum standards. ELEMENTS #7 & 8 Poor - Not a good prospect for continued employment. Accountability & Employee’s Potential Over The Present Job. Performance Reviews Another area that plagues retail organi- Qualified to advance beyond the next higher job. zations is a lack of accountability. Once a Can reach the next higher level, but can’t tell beyond that. structure is put in place, job descriptions At this time, should not be given more responsibility than he/she has now. established, and policies and procedures to Cannot judge at this time. be followed drafted, it becomes necessary to create some link to accountability for all Identify Associate’s areas of strength: ______________________________________ those areas to be followed. That link is the ________________________________________________________________________ establishment of clearly defined, and scrupulously followed Performance Reviews. Identify Associate’s areas of improvement: __________________________________ Owners and managers observe positive and ________________________________________________________________________ negative employee performance on a daily basis that should be noted and placed in a Supervisor’s Recommendations: ____________________________________________ file for each associate. Every staff member ________________________________________________________________________ must understand that the creation of their job description is directly linked to perfor- Action Plans: ____________________________________________________________ mance reviews. They should also know that ________________________________________________________________________ they will be measured and rewarded based on the fulfillment of the specific responsibil- Associate’s Comments: __________________________________________________ ities listed in their job descriptions. This is ________________________________________________________________________ where accountability is created, and where employee performance can be rewarded Supervisor’s Signature ______________________________ Date ________________ consistently. Associate’s Signature ______________________________ Date ________________ ELEMENT #9 Human Assets The most important asset for most orga- PERFORMANCE AND PROGRESS REVIEW nizations is its people; categorized as Intellectual Assets or Human Assets. Without (refers to chart on following page) successful and effective people, retail orga- DATE ______________________________________________________ nizations cannot succeed. It follows, that NAME ______________________________________________________ when resources are not provided to recruit, STORE ____________________________________________________ interview and hire good people, organiza- DATE OF HIRE ______________________________________________ tions will eventually suffer. NEXT REVIEW ______________________________________________ Jim Collins, in his book. ”Good to Great” stated that we must have the “right FOR THE MOST EFFECTIVE REVIEW DO THE FOLLOWING: people on the bus and the right people in the right seats.” In other words, you can't 1. Evaluate employee on all characteristics pertinent to the job. put a square peg in a round hole. If you do not start with the right people, no matter 2. Be sure your evaluation is on total performance rather than a single what you do, you will not be successful. It is exceptional incident. a simple point that eludes many home fur- nishings retailers. That’s why it is imperative 3. Make your evaluation objectively; do not allow your personal feelings to that you develop an ongoing recruiting pro- influence your judgment. gram. Recruiting is a 24-7 job. It is tough to educate people if they are not up to a task, 4. If you are unfamiliar with an individual’s performance in a certain so the time you spend recruiting, interview- category, simply check the first column. ing and hiring is critical. Spend time 58 FURNITURE WORLD January/February 2009
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0109 furn world 2:furnworld 1/4/09 4:39 PM Page 60 ALL EMPLOYEES ON THE SAME PAGE researching the interview process. tic of a candidate overpowers all other ELEMENT #10 Understand the pitfalls of an unprepared requirements. Above all start with a profile, Ongoing Education and not thought-through interview process. then develop job descriptions and finally Be aware of issues like the “halo effect” develop a checklist to evaluate how every Once the proper people are in place, which occurs when one strong characteris- candidate meets each job requirement. the establishment of an Ongoing Education Program is paramount to the effectiveness of your organization. An area of special concern is sales education. U P F S G E N O A A O X Current economic conditions and reduced ELEMENTS 7&8 A F O R I T I O C retail traffic have created an urgency to R D E M S L I F L take full advantage of every opportunity. L A E PERFORMANCE AND PROGRESS REVIEW I C N The best retailers carefully measure floor A T T traffic, closing rates and average sale. The R O R productivity of each sales associate should Y be tracked and should include their ability PERSONAL TRAITS (ALL PERSONNEL) to sell add-ons to build the sale, attract be- APPEARANCE - neat and well groomed backs and build future business with cur- HEALTH - energetic and appears physically fit rent clients. INDUSTRIOUS - works hard, both mentally and physically Establish sales goals for each sales con- COMPREHENSION - grasps ideas and problems quickly sultant that illustrates their “fair share” of DEPENDABILITY - carries out instructions and responsibilities the store’s monthly and annual sales goal. INITIATIVE - performs properly without instructions and supervision Keep in mind, however, that the productiv- ENTHUSIASM - demonstrates interest and excitement in work ity of sales people does not happen by PUNCTUALITY - prompt in reporting for work itself. Do your part by creating an on-going LOYALTY - constructive attitude toward company, products & policies sales education program that deals with the issues of developing relationships, con- AGGRESSIVENESS - pursues objectives thoroughly sultative selling, providing answers and SELF-CONTROL - uses control in actions and emotions solutions, and becoming a partner with CO-OPERATION - works well with associates and supervisors customers to help them make informed DIPLOMACY - deals with customers skillfully investment decisions. Because customer JOB PERFORMANCE (CLERICAL ADMINISTRATIVE) attitudes have changed along with their ACCURACY - freedom from mistakes/errors buying habits, prepare to be able to deal APTITUDE - capacity for learning and expanding with and address these changing attitudes. NEATNESS - freedom from disorder/irregularities In order for an on-going education pro- ORGANIZATION - systematic approach in planning and implementing task gram to be successful assign someone to PRIORITIES - ability to deal with tasks in order of importance be responsible for it and hold him or her PRODUCTION OUT-PUT accountable for its success. JOB PERFORMANCE (WAREHOUSE/DRIVERS/FINISHERS) COMMUNICATES WITH CUSTOMER - policies and procedures ELEMENT #11 Care of customer’s homes Warehouse & Delivery Crews Condition of equipment An area that receives very little attention Care of handling goods is the proper direction, instruction and edu- Avoids traffic violations cation of Warehouse and Delivery Crews. Avoids accidents We are all aware that the front end gener- ates revenue, and that the back end either Quality of repair work (finisher-serviceman) generates profits or can sabotage hard- Production out-put earned gains. This topic has been covered JOB PERFORMANCE (SALES) in detail in recent issues of FURNITURE Upholstered goods WORLD, but there are still too many retail- Case goods ers out there who have not yet put their Media centers/wall systems warehouse and delivery processes and Accessories procedures in writing. The procedures for Use of sales aids pulling, inspecting, prepping and loading Use of in-home design should be clearly documented with step by Balanced sales-sells categories step instructions to eliminate guesswork Sales volume vs. expectations regarding what needs to be done to satisfy 60 FURNITURE WORLD January/February 2009
Wallbeds ad Jan/Feb/09:Layout 1 1/5/09 7:00 PM Page 61 Recession Fighter! As Gary Osterberg of Gary O Furniture put it some time ago, “I just advertise what is selling, and in times like these, that includes Wallbeds.” For some reason, when things get rough, the whole idea of added sleeping space becomes important to some consumers. We don’t pretend to know the reason, but LOVE the results. Wallbeds are not a cure-all for the times, but sure ease the pain. Our dealers enjoy the advantages of being able to offer a unique product that solves customer’s space problems and can carry a margin. You don’t have to cut pricing on a product that just isn’t offered by everybody in town. CALL TODAY 800-934-6711 Visit Us At Las Vegas World market #C 1540 High Point Furniture Plaza #520 www.wallbedsinfo.com [email protected]
0109 furn world 2:furnworld 1/5/09 6:05 PM Page 62 62 FURNITURE WORLD January/February 2009
0109 furn world 2:furnworld 1/4/09 4:39 PM Page 63 “You know that accountability is an issue when you hear...” Karel Exposition Management your customers. The Nation’s Largest Producer of Regional Your delivery crews are truly ”ambassadors” and should be educated and given the tools they need to be as good as Furniture & Accessory Markets they can be. Acknowledge their importance, and reward them for superior performance so they are able to feel that they are ”part of the team”. KEM’S 2009 ELEMENT #12 MARKET SCHEDULE Customer Service The last area we will examine is Customer Service. Very often retailers don't really understand the objectives of cus- 54th EDISON, NJ • FEBRUARY 1-2-3 tomer service, which is to create customer loyalty and repeat business. Most retailers invest a great deal of money attempting to generate new business, but spend very little to 26th LONG BEACH, CA • MAY 6 & 7 maintain and keep loyal customers. Is there someone in your organization whose responsibility it is to be responsible for delivering effective customer service? Beyond that important element, consider your commitment to formally New 1st PHILADELPHIA, PA • MAY 17 & 18 educating your associates so that they can properly com- municate with your customers. Left to chance, each associ- SUBURBAN PHILADELPHIA ate will deliver his or her own “brand” of customer service. Instead, they should be delivering “your brand”. Written 55th EDISON, NJ • AUGUST 2-3-4 policies and education are a start, but follow-up is required to measure the success of your efforts to ensure a consistent level of service and a maximum level of customer satisfac- tion. Successful customer service is as much of an attitude 18th ORLANDO, FL • AUGUST 21-22-23 as it is a procedure. Attitude towards customers should not be simply a matter of being able to recite policy; it should be a constant effort to look for ways to find solutions and 2nd KANSAS CITY • OCTOBER 4-5 satisfy customers. Obviously, there are many more elements required for retail success but if you put all of these together and see how they are integrated and support one another, you will see the benefit in putting these 12 elements into place in your organization. Ron Wolinski is VP Performance Groups for Profitability Consulting. His expertise in management stems from the positions he has held such as Manager of Training for Art Van Furniture, Vice President of Sales and Marketing with Contact Interiors, President of Behavioral Dimensions, Sales Education for the Simmons Company, National Director of Education and Development for Value City Furniture and most recently, Director of Education and Retail Services for It’s the KEM way! La-Z-Boy, Inc. He consults with retail organizations interna- tionally on Consultative Selling, Communications, FOR BUYER OR EXHIBITOR INFORMATION PLEASE CONTACT: FOR BUYER OR EXHIBITOR INFORMATION PLEASE CONTACT: KAREL EXPOSITION MANAGEMENT Leadership Skills, Organizational Development, Interviewing KAREL EXPOSITION MANAGEMENT Celebrating and Recruiting, and Customer Service. Questions relating to 57 PHONE: 305.792.9990 • FAX: 305.792.9898 this article or to other related topics can be directed to Ron PHONE: 305.792.9990 • FAX: 305.792.9898 at [email protected]. Read more of his articles posted www.kemexpo.com • e-mail: [email protected] Years www.kemexpo.com • e-mail: [email protected] to the www.furninfo.com website or call him direct at 734- 420-3430. MARKET NOT OPEN TO THE PUBLIC • NO PERSON UNDER THE AGE OF 13 ADMITTED PROPER BUSINESS I.D. REQUIRED DATES AND / OR LOCATION ARE SUBJECT TO CHANGE.
0109 furn world 2:furnworld 1/4/09 4:40 PM Page 64 A,B,C & D’S OF IN-HOUSE FINANCING Tips for purchasing the quality of accounts you want in your portfolio. Financing Accounts by Richard M. Hadad f you’ve considered the highly profitable finance end of the busi- or job to job or is he or she stable for reasonable lengths of time? ness and need to know how to buy contracts for in-house cred- A cash flow analysis tells you if he or she has enough money to it, try these simple rules. There are four qualities of contracts to take on another account. If the person pays their existing obliga- Ibuy. The A quality is very easy to purchase. That’s usually the tions, the credit bureau report will tell you. top 20% of the contracts that you look at. The bottom 20% or D Here is a step-by-step guide to buying contracts and evaluating quality is also easy to see, and usually rejected. The middle 60% your account portfolio: are B and C quality. They are the contracts where the most money is made, but need better monitoring and communications. 1. Do you purchase A, B, C or D grade contracts? If you buy A- So how do you decide which customer credit applications to grade contracts the amount of down payment is not as important accept? What do you do if you want to lend to someone with so- as if you purchase B- or C-grade contracts. Usually a down pay- so credit? Down payments and limited credit amounts are a good ment is made for two reasons: First to reduce the amount of the start. You should use all the tools available to you such as credit loan, and second, to give the borrower an investment in the con- applications, credit bureau reports, credit scores, and a cash flow tract, which makes the loan stronger. The bigger the down pay- debt analysis. Is your customer bouncing from address to address ment, the stronger the contract is. Usually B, C and D grade con- tracts demand a higher interest rate, require closer monitoring, and need faster communications. 2. Credit scores are heavily used in determining the quality of a contract, but should not be the only criteria used. Credit score’ accuracy is based on available information. But because so many companies do not report their customer data to credit bureaus, many accounts that would have reduced credit scores if all the information were known. 3. Your credit decision is based on Stability, Ability to Pay, and Willingness to Pay. A. Determining Stability is very important. If the customer is changing addresses and jobs frequently, the risk of delin- quency or default of the contract increases. B. Analyzing Ability to Pay is equally important. If the borrower has too much of his disposable income contractually commit- ted, he or she will have a difficult time making payments on your contract. This is a simple analysis: you must determine the ratio of committed obligations of the family, compared to the total take-home pay. In other words, how much is coming in, and how much is going out? You must consider all the fixed expenses of the borrower, including your prospective loan, and adjust the percentage ratio accordingly. C. Willingness to Pay is evident in credit bureau reports. If the accounts are shown to be often delinquent, either the borrow- er has too many fixed expenses (he or she isn’t able to pay all obligations) or chooses not to make payments. In either case, this increases the riskiness of the account. When you analyze factors A, B and C on the credit application, you can determine the grade of contract that you have the option to write, and your credit decision is then made. If it is an A grade
0109 furn world 2:furnworld 1/4/09 4:40 PM Page 65 There’s never been a better time to call us than times like “If you don’t set the payment policy, your customers will, these. For nearly a century, retailers have depended and you won’t like it.” on the Lynch Sales Company to be there through thick and thin, helping them reduce inventory while improving cash flow and profits. And today is no contract, you can choose to extend the credit amount as it is, different. Regardless of economic climate, you can with little or no down payment. B or C grade contracts warrant depend on our 95 years of stability, because we have a larger down payment, or perhaps a smaller loan (you might helped our retail clients weather every economic be able to divide the sale into two parts, for example). You storm since 1914. might choose to buy C or D grade contracts only if they have a cosigner. You must always remember, “If you extend credit, you must collect it”. In fact, we originated the entire concept of promotional sales to generate cash, expand or change Another option is to use the Risk Management section of a credit management software package to track the credit scores location, remodel stores, or update their inventory – all and the debt ratio percentage of the accounts you approve. designed to make successful stores even more Such a package should be able to automatically grade the successful, regardless of market conditions. quality of contracts in your portfolio so that if you find that the ratings are low – that is, your account portfolio isn’t performing as well as you’d like - you can increase the credit and debt ratio data numbers as the basis for purchasing of future accounts. This allows you to purchase the quality of accounts that you want in your account portfolio. Using these automated tools will substitute for years of experience. There is an old saying in the credit industry that, “You collect your account when you make it”. So when you make the orig- inal contract, don’t forget to ask the borrower if they can make the payment each month. Don’t forget to inform them of the importance of making their payments on time each consecutive month. Instruct them that if they cannot make their payment to Circa 1930 Lynch Sales Company Event call you to explain why. You will be justifiably happy with the performance of your contracts if you follow these few guide- Isn’t this the perfect time for a Lynch Sale event? OUR lines. clients are doing substantial business even during If you do not have a credit policy, it is important that you these harsh economic times.Call today for an outline make one. A good policy is to have your finance person pre- of our copyrighted SALE PLANS. Find out how a Lynch pare the contract for the customer’s signature(s). The first thing Sale can help your business weather the current storm that should be said is “Thank You” for doing business with us. and prepare for the future. Don’t forget to thank the customer to reassure them that they are appreciated. Verify the terms of the contract. Go over the U N C O M P R O M I S I N G I N T E G R I T Y. U N P A R A L L E L E D R E S U LT S . terms of the sale and verify the original amount, interest rate, payment due date and payment amount. Ask if the payment date is good for them so they can have their payments on time, LYNCH and verify the payment amount. Remember that if you don’t set a payment policy, your customers will, and you won’t like it. S Sa al le es s C Co om mp pa an ny y ® Richard M. Hadad is President of American Software & E Es st ta ab bl li is sh he ed d 1 19 91 14 4 Computers, Inc., developer of CreditStar, a specialized software 161 OTTAWA AVENUE N.W., SUITE 300-F package that allows home furnishings retailers to finance their GRAND RAPIDS, MICHIGAN 49503 own sales instead of giving profits away to the banks and finance companies. The company also provides outsourced pro- TEL: 800 824-2238 cessing solutions for furniture retailers. Questions on any aspect WWW.LYNCHSALES.COM of in-store financing can be directed to Richard Hadad at [email protected] or call him directly at 1-800-617-8271. Serving the United States, Canada, and the United Kingdom Copyright 2009 Lynch Brothers Licensing Corporation
1-09 design 1:04-05 2 design 1/5/09 2:25 PM Page 66 Design A.A. Laun Classic Flame Sligh
1-09 design 1:04-05 2 design 1/5/09 2:26 PM Page 67 Lind Midi Agio January/February 2008 FURNITURE WORLD 67
1-09 design 2:04-05 2 design 1/5/09 2:27 PM Page 68 Design Wallbeds Darafeev
1-09 design 2:04-05 2 design 1/5/09 2:28 PM Page 69 Newton Kathy Ireland by Omnia Habersham Fashion Newton Bed January/February 2009 FURNITURE WORLD 69
1-09 design 3:04-05 2 design 1/5/09 2:29 PM Page 70 Design Avenue Six Dinec
1-09 design 3:04-05 2 design 1/5/09 2:30 PM Page 71 Sterling Industries Naturescast Bermex January/February 2009 FURNITURE WORLD 71
1-09 design 4:04-05 2 design 1/5/09 2:31 PM Page 72 Design Howard Miller Four Hands Phillips Collection
1-09 design 4:04-05 2 design 1/5/09 2:31 PM Page 73 Capel Dutailier Elran January/February 2009 FURNITURE WORLD 73
0109 tags 74:Layout 1 1/1/09 1:35 PM Page 74 5” x 7” SLIT TAGS • FAX ORDER 800-784-8488 Order Form On Following Page Or Order Online at www.furninfo.com Increase Impulse Sales Every Day! Now in packs • Bright, bold messages attract buyers and help close deals. of • Every tag has ample room for 100! your pricing and benefit copy. • Slotted Tags slip over retail and manufacturer tags. Order # WxH 5 Pks. 6-11 Pks. 12+ Pks. HSL____-__ 5\"x7\" 11.85 Pk. 11.26 Pk. 10.67 Pk. Please specify order code listed under tag picture. Shipping additional Tagging Guns • Tagging Needles & Vinyl Envelopes (Pack of 100) Add Shipping Call 877-235-3095 Minimum Order: 5 Packs (500 Tags) 5 Pks. $8.50 for more information. 4-11 Pks. 15.50 12+ Pks. call All 5”x7” Tags Only $11.85/Pack of 100 HSL711-E1 HSL085-F1 HSL251-W1 HSL307-A1 HSL307-S1 HSL007-X1 HSL306-00 HSL023-B3 HSL047-00 HSL085-P1 HSL520-G1 HSL159-G1 HSL235-K1 HSL018-X1 HSL206-B1 HSL035-A1 HSL218-D1 HSL217-D1 HSL178-X1 HSL306-G1 HSL224-00 HSL128-B1 HSL085-00 HSL135-K1 HSL540-E1 HSL085-S1 HSL085-X1 HSL101-00 HSL085-A1 HSL023-00 HSL085-C2 HSL033-T1 USE HANDY FW SHOPPER ORDER FORM or Call Toll-Free 877-235-3095 / 914-235-3095
01/09- GUIDE & order 75:furniture world 1/1/09 10:04 AM Page 75 THE MOST PRODUCTIVE $1.95 YOU'VE EVER INVESTED IN YOUR FLOOR SALES TEAM FURNITURE WORLD SALES EDUCATION GUIDES 16-24 PAGES OF FOCUSED PRODUCT, STYLES & SKILLS! ORDER Fax: 800-784-8488 CALL 877-235-3095 - Use Order Form Below or visit our new online store at www.furninfo.com Many chains and independent retail furniture stores use these 16-24 page guides to teach styles, construction, woods, interior design, furniture terms and fabrics. Over 600,000 guides sold. Perfect for new employees and reference. Quantity Discounts. Call for more information or order below. EDUCATIONAL GUIDES ORDER FORM (minimum order 5 guides total) $1.95 EACH - specify quantity 1. LEATHER _ _ _ _ _ 11. STYLES I _ _ _ _ _ 21. FABRIC APPROPRIATENESS _ _ _ _ _ 2. UPHOLSTERY _ _ _ _ _ 12. ACCESSORIES _ _ _ _ _ 20. SEMINAR WORKBOOK I _ _ _ _ _ 3. FABRICS & POLYMERS _ _ _ _ _ 13. METAL FURNITURE _ _ _ _ _ 23. YOUTH / JUVENILE FURN. _ _ _ _ _ 4. BEDDING (temporarily out of stock) _ _ _ _ _ 14. BEDROOM FURNITURE _ _ _ _ _ 24. ORIENTAL RUGS _ _ _ _ _ 5. DINING ROOM _ _ _ _ _ 15. THE CHAIR _ _ _ _ _ 25. EXAM (FOR 5) _ _ _ _ _ 6. OUTDOOR/ CASUAL _ _ _ _ _ 16. MOTION UPH. (temporarily out of stock) _ _ _ _ _ 26. 44 CLOSES SALES GUIDE _ _ _ _ _ 7. CONVERTIBLE UPHOL. _ _ _ _ _ 17. CLOCKS _ _ _ _ _ # GUIDES X $1.95 = _ _ _ _ _ 8. OCCASIONAL FURN.(temp. out of stock) _ _ _ _ _ 18. INTERIOR DESIGN _ _ _ _ _ 9. HISTORY OF STYLES _ _ _ _ _ 19. WOODS & FINISHES _ _ _ _ _ Guides 16-24 pages for retail sales training. Discounts on 100 or more. Call FURNITURE 10. MORE HIST STYLES _ _ _ _ _ 20. LAMPS & LIGHTING _ _ _ _ _ WORLD at 877-235-3095. EDUCATIONAL BOOKS, MULTIMEDIA & FW SUBSCRIPTION QUANTITY COST FURNITURE PRODUCT KNOWLEDGE ONLINE COURSE $449 single store license (order on www.furnituresalestraining.com) AUDIO MP3 SALES AUDIO DOWNLOADS (see the full library of audio files online at the www.furinfo.com “FW Online Store) ITʼS BUYING, SILLY! (sales technique book by Peter Marino - 80 pages) $14.95 ea. _____________ _____________ GOLDEN RULES OF SELLING BEDDING (100Pg) $12.50 ea. _____________ _____________ STOP LOSING THOSE BEDDING SALES BOOK (140 pages) $38.50 ea. _____________ _____________ STOP LOSING THOSE BEDDING SALES DVD OR VIDEO (plus guide & book) $149 ea. _____________ _____________ FURNITURE WORLD SUBSC. 1 YR-$19 (USA)• 3YR-$39 (USA) • Canada-$29 • Other $85 _____________ _____________ SLIT TAGS 5X7 STYLE NUMBER & DESCRIPTION QUANTITY COST ------------------------ ------------------ ---------------- See previous page for Tags. Use separate page if necessary... ------------------------ ------------------ ---------------- order guns needles & barbs ------------------------ ------------------ ---------------- Total Shipping & Handling ------------------ ---------------- TOTAL COST FOR ALL ITEMS __________ FA X CREDIT CARD ORDERS OR SEND CHECK FURNITURE WORLD (US FUNDS ONLY) PMB437•1333A NORTH AVE., NEW ROCHELLE, NY 10804 Allow two week delivery - Rush orders call (914)235-3095. FAX: 1-914-235-3278 • Out of USA postage additional COMPANY _______________________________________ ATTN: ______________________________ MAILING ADDRESS (NO P.O. BOX)________________________________________________________ _______________________________________________ PHONE ____________________________ [ ] Check Enclosed or [ ] Please Charge to My Credit Card [ ] Retailer [ ] Manufacturer Master Card Visa (circle one) ____________________________________________________________ Expire Date ___________________________ Signature _____________________________
0109 furn world 2:furnworld 1/4/09 4:40 PM Page 76 Subscribe! FURNITURE WORLD Magazine Six powerful issues. In-depth articles on retail marketing, finance, operations, sales and financial management. Subscribe Online At www.furninfo.com Don’t Take a Gamble Don’t Take a Gamble Win Big with DGA Win Big with DGA I In nt te eg gr ri it ty y & & E Ex xp pe er ri ie en nc ce e M Ma at tt te er rs s Our goal is to provide you with the best support possible. DG Associates is a Sales Promotion and Consulting firm comprised of experienced professionals offering customized services to meet the needs of the furniture industry. David Geddeis and David Geddeis, Jr. direct DG Associates and have developed a proven method of successful and profitable sales p romotions. Together they have over 60 years of furniture experience to draw upon. DGA can help you reach your goals. Customized Events • Cash Raisings • Going Out Of Business Todd Mitchell • Inventory Overstock • Retirement West Coast Regional Manager • Lost Our Lease • Grand Openings • Inventory Support Available D D D D We provide the Energy Influx to Produce the Sales G G G G your Store Needs for Profit. All inquires kept in strictest confidence. References furnished upon request. Visit www.dg-associates.com or EMAIL [email protected] A As ss so oc ci ia at te es s,, L L A As ss so oc ci ia at te es s,, L LL LC C L LC C 76 FURNITURE WORLD January/February 2009 3703 N. Main St., Suite 201, Rockford, IL 61103 815/ 877-3382 • 800/ 551-5864
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0109 furn world 2:furnworld 1/4/09 4:40 PM Page 78 “The Cathy-Cam is amazing! After our first session, our showroom enjoyed a $27,000 weekend! Clients actually look forward to their design consultant’s return... Thank you Cathy!” - Ryan Rottum, Sales Manager, Norwalk the Furniture Idea. •Personal Online Sales & Design Associate Coaching: Easy, affordable one-on-one scheduled coaching sessions. All you need is a microphone •Web cam• High Speed Internet • 7.5 Messenger. •Pre-employment interviews: Use me to conduct interviews of your candidates. I’ll interpret the “Intervieweze!” You will save time and money. •Delivery Staff Coaching: Empower your Delivery Staff! coach them on WHAT to say – HOW to say it BEFORE they knock on “Ethel’s” door. They’ll make the LAST IMPRESSION that LASTS! •The cost to you as low as $40.00! For More Information on this program, call Cathy Finney Toll Free at 877-FINNYFX (346-6939) or email soar303@comcast .net Discover the Difference. Discover the business benefits of STORIS Management Systems, a leading Retail Solutions and Services Provider for retailers of all sizes. Over 350 retailers have installed and rely on our solutions to integrate operations, streamline processes and outperform the competition. Point of Sale Inventory Control Business Intelligence InTouch CRM Customer Service Merchandising Supply Chain Management eCommerce Take a Closer Look... Call: 888-4-STORIS Visit: www.storis.com
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0109 index page 80:furniture world 1/5/09 6:52 PM Page 80 ADVERTISER & DESIGN EDITORIAL INDEX & CONTACT INFORMATION COMPANY TELEPHONE EMAIL PAGE# COMPANY TELEPHONE EMAIL PAGE# A.A. Laun 920-894-7441 [email protected] 45 Dutailier Furniture 800-363-9817 [email protected] Covers 1, 2 & 4 Arc Way Trolleys 800-263-1338 [email protected] 62 EASI www.easidemographicsondemand.com 62 Agio 800-416-3511 [email protected] 23 Educational Guides 877-235-3095 [email protected] 75 Alan Morgan 800-346-3625 [email protected] 7 Elran 800-361-6546 [email protected] 21 Ashley Furniture 608-323-3377 www.ashleyfurniture.com 3-5 Fashion Bed Group 800-825-5233 [email protected] 69 Avenue Six 818-933-0801 [email protected] 70 Four Hands 512-371-7575 [email protected] 72 Baseline Licensing Group 757-217-1821 [email protected] 32 Furniture Team 717-361-7858 [email protected] 44 Bermex 819-227-2284 [email protected] 71 Furniture Wizard 619-482-2613 [email protected] 46-47 Bolger Group Consulting 740-503-8875 [email protected] 79 Galt Display Rack 800-461-3892 [email protected] 30 Capel 800-382-6574 [email protected] 29 Genesis Software 509-536-4739 [email protected] 59 CathyCam 877-346-6939 [email protected] 79 Guardsman FurniturePro 800-486-6377 [email protected] 40 Chateau Imports 416-752-2424 [email protected] 43 Habersham 706-886-1476 [email protected] 69 Classic Flame 561-330-3201 [email protected] 66 HFIA 800-942-4663 [email protected] 64 Coastal Marketing & Incentives 866-541-8077 [email protected] 35 High Point Market 888-363-1709 [email protected] 27 CreditStar Financing Software 800-617-8271 [email protected] 40 Howard Miller 616-772-9131 [email protected] 72 Custom Design Software 800-884-0806 [email protected] 57 Huppe 819-758-1529 [email protected] 36-37 Darafeev 909-613-1818 [email protected] 39 International Industries 954-979-3368 [email protected] 34 DG Associates 800-551-5864 [email protected] 76 Joya Sleep Systems 336-431-2356 [email protected] 9, 15 Dinec 819-227-2284 [email protected] 70 JSF 336-841-5133 [email protected] 62 Kaleidoscope Partnership 713-705-2482 [email protected] 26 Karel Expositions 305-792-9990 [email protected] 63 Kathy Ireland Home by Omnia 909-393-4400 [email protected] 10-11 Keystone Wholesale Show 717-393-6466 [email protected] 42 Lind 905-405-1233 [email protected] 41 Lynch Sales 800-824-2238 [email protected] 65 mi-di 819-227-2284 [email protected] 67 Morry Dickter 800-521-9953 [email protected] 77, 78 NaturesCast 702-616-3683 [email protected] 71 Newton Furnishings 519-595-7621 [email protected] 16 Phillips Collection 336-882-7400 [email protected] 72 Planned Furn. Promotions 800-472-5242 [email protected] 79 PROFITSystems 866-595-9376 [email protected] 49, 51 Service Lamp 800-222-5267 [email protected] 33 Sligh Furniture 616-394-9366 [email protected] 66 Slit Tags 877-235-3095 [email protected] 74 Sports Home Plaza 757-217-1821 [email protected] 32 Sterling Furniture 678-282-1000 [email protected] 71 Storis 888-478-6747 [email protected] 13 Travel America 877-993-6835 [email protected] 17 Trax 888-646-5462 [email protected] 77 Truck Skin 877-866-7546 [email protected] Cover 3 Twin Star Home 561-330-3201 [email protected] 25 VIFA 2009 (84-8)54042463-39143851 [email protected] 31 Wallbeds 800-882-2258 [email protected] 61 WHFA 916-960-0349 [email protected] 49 World Market Center 702-599-9621 [email protected] 19 80 FURNITURE WORLD January/ February 2009
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