PFP


Monday, April 29th, 2013

Well-Known North Carolina High-End retailer, Baker Furniture Co. entrusts PFP with their last and biggest sale event!

Author: Planned Furniture Promotions

Baker Furniture in Cramerton (standing L-R) owners Jim and Sandra VanPelt and (sitting L-R) their children who help run the business Greg VanPelt and Holly Hite

As covered by the Gaston Gazette, April 2013   (Cramerton is a close suburb of Charlotte, NC)

A 60-year-old Gaston County tradition is coming to an end.

Baker Furniture Co. in Cramerton plans to close by the end of July, having furnished local homes for three generations.

Owners Jim and Sandra Van Pelt say the time is right to stop working 12-hour days and start spending that time with their four grandchildren.

Customers have come to expect the VIP treatment from the business. Sandra Van Pelt often travels to customers’ homes to measure spaces before placing orders.

Baker’s has built a reputation of carrying high-end brands.

It’s come a long way since Sandra Van Pelt’s father, Floyd “Red” Baker, opened the store in 1949 in his garage.

He sold discount furniture to people still recovering from the Great Depression.

Sandra Van Pelt recounts how the business was born. Her parents drove to Hickory to buy a mahogany bedroom suite from a manufacturer. Baker, hunting a bargain, asked if he could get a good deal.

The salesman agreed, but on the condition that Baker buy six bedroom suites instead of one.

The couple made the deal. They put one set of furniture in their home and the other five on the lawn for sale. Customers soon arrived, and “Red” Baker watched the business continuously expand until his death in 1985.

That’s when Jim and Sandra Van Pelt became owners. Their grown children, Greg Van Pelt and Holly Hite, also work at the store.

Less attention to quality

For the last five years, annual sales at the furniture store have totaled $5 million, said Jim Van Pelt. He and his wife take pride in serving discerning clients from Charleston, S.C., to Atlanta.

But the Charlotte region provides loyal customers who, Sandra Van Pelt says, wouldn’t go anywhere else to buy furniture.

“In a small business like this, your customers become your family,” Jim Van Pelt said. “So that’s the bittersweet part.”

Styles and customer habits have changed dramatically over the decades.

Two decades ago, clients wanted everything in a living room to match. From the draperies to the armchairs to the sofa, the “matchy-matchy” style was the rage.

But these days, eclectic styles are in fashion and anything goes.

The Van Pelts have filled fewer custom furniture orders in recent years. Some customers lost interest in picking out solid wood frames, flipping through sample books and selecting ornate fabrics.

They want to walk in a furniture showroom, scout out items they think will look good and leave with the purchases in tow, Sandra Van Pelt said.

Many customers are also paying less attention to quality and are more focused on the price tag.

“Most people have become a lot more conscious of price because of the economy,” she said. “Even people that have money, they’re not throwing it away. They’re still careful with how they spend it.”

‘Personalized attention’

Beverly Cole of Gastonia has moved several times over the past five decades. And the staff at Baker Furniture Co. has been there to help her redecorate each home.

“They wanted to please you so much. I really do think that’s the thing that Gastonia is going to miss so much,” she said. “You knew when you went over there, if you couldn’t find it, they were going to order it for you. That personalized attention is going to be hard to come by now.”

She can’t recall exactly how many furniture pieces she’s bought from the Van Pelts. Since 1960, they’ve helped her select beds, living room furnishings, dining room tables and framed pictures.

After recently moving into an apartment, she found herself once again calling on the services of the Van Pelts. They helped find a headboard for a bed that matches her night stand.

Then Sandra Van Pelt arrived to help her place furniture in different rooms.

“I’m going to miss them terribly,” Cole said. “It’s been a wonderful relationship with needing furniture and having some wonderful people to buy it from.”

Closing out

The store is still fully stocked. The Van Pelts replenish the showroom with items from an on-site warehouse. They hope to have all furniture and rugs liquidated by the end of July.

Jim Van Pelt said the property and 40,000-square-foot brick building are for sale.

The business has always been on Market Street. Additions and renovations have been made over the years to accommodate more showroom space.

Sandra Van Pelt said longtime customers hear about the store closing and stop by to greet her. Then they cry together and remember the friendships made.

It’s emotional because she’s been involved in the business all her life.

“We have always strived to sell people good furniture and give them choices,” she said.

As covered by the Gaston Gazette, April 2013

Tuesday, March 19th, 2013

The Importance of Broom Clean!

Author: Planned Furniture Promotions

If you are liquidating, closing or moving, it’s critically important to sell it all.   It’s easy to sell the cream off of the top, few promoters can sell it all.  When PFP offers a “Broom Clean Guarantee“, we mean it!

Savvy Spaces, Charlotte, NC:  One day after selling every single piece of their significant inventory…  at a profit!

Wednesday, February 20th, 2013

Can’t decide if reinvention is the answer?

Author: Planned Furniture Promotions

Many retailers that we work with are struggling, looking for new sources of cash flow and concerned about what their future may hold.  In many (if not most) cases, they wait too long.  The thought is often that business will return, it will be just like the good old days.  Two of our clients found the answers that they were looking for in books.   We’ll pass those recommendations along to you here….

Whether you’re trying to decide whether to close, reinvent or improve your business, these books are both full of great ideas.  Enjoy…

Necessary Endings by Dr Henry Cloud

Leadership and Self Deception by the Arbinger Institute

Wednesday, February 20th, 2013

Greenbaum’s event being handled by PFP

Author: Planned Furniture Promotions

As Reported at Northjersey.com:

A high-end, heirloom-quality furniture manufacturer and seller that has called Paterson home for more than 60 years — whose clients include actors, kings and billionaires — is closing its massive showroom in the city’s downtown to open one closer to customers in Bergen County.

Jimmy Greenbaum and daughter Susan Greenbaum Gross, owners of Greenbaum Interiors. A 30,000-square-foot factory will remain in Paterson after the family closes its showroom.

VIOREL FLORESCU / STAFF PHOTOGRAPHER
Jimmy Greenbaum and daughter Susan Greenbaum Gross, owners of Greenbaum Interiors. A 30,000-square-foot factory will remain in Paterson after the family closes its showroom.

The decision by Greenbaum Interiors to shutter its 100,000-square-foot showroom, while leaving a company-owned, 30,000-square-foot factory in Paterson, is the latest blow to the state’s third-most populous city, dramatically diminishing the presence of a high-profile business that draws customers from North Jersey and New York State.

Greenbaum Interiors notified customers of its plans by mail last week and email this week, touting a sale that will slash prices by up to 65 percent to reduce its inventory enough to fit into a smaller showroom in Bergen County.

“If people won’t come here, there is nothing I can say or do to make them come,” said Susan Greenbaum Gross, president of Greenbaum Interiors. “We have to be close to our customers.”

No Bergen property has yet been identified. But the company, which has 55 employees, is looking for a 10,000-square-foot to 14,000-square-foot space at the northern end of Route 17 to house a showroom expected to open in the fall with 15 employees.

That would leave 35 workers and a 5,000-square-foot showroom in the Paterson factory, which will sell furniture. Greenbaum Interiors also has a 7,500-square-foot showroom with five employees in Morristown.

The company’s wealthy clients have included actor Eddie Murphy, who bought for his homes in Englewood and California; King Hussein of Jordan; and a Russian billionaire, whom the company declined to identify and who bought an entire houseful of furniture that was shipped to Russia.

Mayor Jeffery Jones said the Greenbaum family briefed him two weeks ago on its plan to close the Paterson showroom, but did not mention moving to Bergen County.

“It’s a big loss,” Jones said, though he noted that the company will retain a significant presence in the city.

“The clientele doesn’t come from Paterson, but the workers do,” he said. “The labor, the work, the storage, the repair — all that stays in our city.”

See the balance of the article, CLICK HERE

Sunday, February 17th, 2013

Be Careful Whom You Trust With Advice

Author: Planned Furniture Promotions

It’s important to see why someone would push you to use one company over another.

You have to ask….  What is their motivation?

Most retailers have long and mutually profitable relationships with the professional sales reps that call on them.  Over the years, they usually develop strong friendships, founded on trust and

Sales pros that recommend PFP do it for the right reason

honesty.  The hundreds of sales professionals, that recommend PFP, do so because they feel that we are the best company to assist their customers.  They know that by using PFP, they have the best chance for recovery, whether it’s to save a struggling business, or to use the PFP copyrighted “What If?” program.  A “What If” promotion allows a store to completely reinvent their business model with a relevant and profitable new structure.  Bottom line, if a sales representative recommends PFP, they’re doing it because they believe we can help, not for their own remuneration.  The most they can hope for from PFP is orders to support a sale, but even then, we only buy lines that are “right” for an event and that provide outstanding value.

As an example, we see a lot of correspondence going to sales reps like the following letter sent by a promoter.  Unfortunately, these “lead fee” programs are very common.  The point is, it’s important to understand the motivation of the person that may be pushing one promoter over another.

The following is a letter that was emailed to hundreds of sales reps nationwide.  This is only one example, we’ve seen many….

PROMOTER LETTER (NOT FROM PFP):

When you give us a referral, here is what you can expect from (Company Name Removed):

The majority of you have been in your respective territories for many years and the retail relationships that you have developed and nurtured, in many cases, have also become close friendships.  Relationships that your retailer/friend has come to depend on for: product knowledge, market/competitive advice, sales/product presentations for their staff in addition to a number of other various “business caps” you wear for which they solicit your input.  That puts you in a unique situation to also make recommendations when their daily sales and margins are falling, they are over-inventoried, floor samples need freshening and the resources to do so are lacking, they have a backlog of sold/undelivered orders that are on credit hold among numerous other signs of distress.  NOW, you can make a recommendation to those same retailers/friends when you recognize the signs of distress, or they simply reach out asking for your help.

AND…we’ve strengthened our rep referral program. We will pay you a guaranteed $4,000 for every referral made to us that we convert to a sale (emphasis added). Here is how it works…if you provide me with a retailers name and contact info and that retailer is expecting my call, when we sign that sale, you will be paid a guaranteed $4,000 or .5%, whichever is greater.  For example…if the sale does $500,000, you will receive $4,000 and if that same sale does $1,500,000, you will be paid $7,500….if it does $3,000,000, you will earn $15,000, etc.  Payments are sent to you on a weekly basis during the term of the event.  AND….we’ll buy from you the lines you’re representing to use in the sale; so, you’ll generate a revenue stream from both sides of the event.

AGAIN, the above is a PROMOTER LETTER (NOT FROM PFP):

Wednesday, February 13th, 2013

PFP to handle historic store closing at Henco Furniture

Author: Planned Furniture Promotions

As covered by Memphis Channel 3

“CLICK HERE TO SEE THE VIDEO”

As covered by the Memphis Commercial Appeal

West Tennessee’s Henco Furniture announces closing

Entrepreneur and longtime retailer Tom Hendrix wants customers to know that his homespun television commercials promising that “It’s worth the drive” to visit Henco Furniture in Selmer, Tenn., are still true, but now there’s an expiration date attached.

The expansive furniture store, located about 80 miles east of Memphis at 205 Henco Drive in the Selmer Industrial Park, is closing after 17 years in business. Hendrix, who turns 81 in April, made the announcement on Tuesday and said he plans to devote the next chapter in his life to penning his autobiography. A going-out-of-business sale is now under way, but the official closing date depends on how long it takes to move the remaining merchandise.

“When I turned 80 last year I told my wife Sherry Lynne that I thought 80 to 90 would be my best years,” Hendrix said. “I’ve always wanted to write a book, but it takes time to do it, so that’s what I’m going to focus on now. That and spending more time with my family.”

Hendrix said that although he’s enjoyed running the family-owned business, it just wasn’t feasible for his daughters — Leigh Anne McWhorter of Nashville and Susan O’Connell of Corinth, Miss. — to uproot their lives and move their young children back to Selmer to take over day-to-day operations.

And economic factors played a significant role in the decision, Hendrix said.

From a high of around 100 employees, the staff has fallen to around 40 workers after the fallout from the recession. And while the store used to post sales of more than $1 million a month, that figure has been cut at least in half since 2008 and the effort to maintain operations was becoming exhausting.

“It’s sort of like owning a dairy farm because you’ve got to get up early and milk the cows every day. You’ve got to love it and live it,” Hendrix said. “They’ve got their lives elsewhere and this was not the right career for them.”

It certainly didn’t seem like an obvious career for Hendrix, either, at least not at the start.

After decades as an entrepreneur and working in a variety of venues, Hendrix came out of retirement in 1996 to open his furniture showroom. With no prior experience in furniture sales, he focused on building personal connections with customers and creating a family-friendly environment that served as shopping emporium and tourist destination.

“My wife and I were motor-homing it across the country and I told her that at I had a lot of productive years in me and needed to do something else,” Hendrix recalled. “I decided to open up a furniture place near where I grew up and make it a place where the parents would love to visit and the kids would cry when they had to leave.”

To do that, Hendrix fashioned his facility as a destination spot, transforming more than 200,000 square feet of showroom and warehouse space into a homey village that included a restaurant, soda fountain and offered cookies at the front of the store and popcorn in the back. Henco featured a Main Street theme with various storefronts that led to different merchandise areas.

“I was working at a bank at the time when Mr. Hendrix came in and wanted a loan to recreate this small town, furniture store kind of place within an industrial park and I thought he was crazy at first,” said Ted Moore, executive director of the McNairy County Economic Development Commission. “But we made the loan and he made the business successful and Henco has had a great impact on our community.”

Spread out over 40 acres, the site drew customers from six states and was the second-highest tax generator in the county, said Russell Ingle, director of Chamber programs for the McNairy Regional Alliance. The Chamber of Commerce promoted the facility as both a shopping outlet and a tourist destination.

“Lots of groups like the Rotary Club met there and it was a hub for social networking activities,” Ingle said. “It was a great attraction for our community and we’re going to miss it.”

Hendrix’s daughter Susan O’Connell said she’d also miss the store, but that she knew her parents were looking forward to spending lots of time with their seven grandchildren.

“We’re sad about leaving all the customers and employees because they’ve been like family to us, but we want to look at this as a celebration of my father’s career and what he’s meant to so many people,” O’Connell said. “He’s not closing the book, he’s just turning the page to start the next chapter in his story.”

Henco Furniture will continue to discount its merchandise and remain open until the stock is depleted, Hendrix said, but there’s no way of knowing how long that will take. In the meantime, the property is being listed with a real estate agency in the hope of transforming the space into something else once the final sale has been rung up.

“It’s still worth the drive, but you need to get on the road and make the trip today,” Hendrix said. “We’ll be waiting for you.”

Monday, February 11th, 2013

PFP handles prestigious Nashville Furniture Closing after 67 years

Author: Planned Furniture Promotions

PFP handles store closing after 67 years

Saturday, January 26th, 2013

Do you know “The Rule of Twenty”?

Author: TomLiddell

The Rule of Twenty is a very simple way to…

Watch expenses, gauge sales success, evaluate profits and the viability of your business.  

Many retailers go through their daily ritual with no real comprehension of whether they’re profitable or not.  After all, it’s a very difficult job to run a retail store today.  Just keeping up with all of the new tax rules is a full time job in itself.  Some make important decisions on expenses, such as software, trucks and new expansions, without ever truly evaluating how it may help or hurt them.

There is a quick and easy way to look at finances in a furniture business: Does it meet “The Rule of Twenty”?

Profitable stores usually net somewhere around 5% of sales, very few will be higher and in today’s business climate, most will be lower.  Broken down, 5% is 1/20 of 100%.

SPENDING:  If you “spend” $1000 on something for your store (needed or not), you’ll have to sell twenty times that number, or $20,000 in product, to generate enough capital to justify the purchase of the item.  In other words, a $35 box of business cards actually costs about $700 in sales.  It’s a very quick and simple way to look at expenses.

ADVERTISING:   If you spend $5000 on an ad, how much business did it create?  To get to zero, before any profit can be realized, you would have to do about twenty times the cost of the ad, or about $100,000 in sales.  Obviously, building your brand has long-term value and it’s nearly impossible to gauge the value of an ad over a long period of time, however,  short term, this is a good rule of thumb.

MARGIN EROSION:   A consumer is pleading for a deal, do you give him the discount to close the deal?  At what point does it “cost you” money to give up the margin?  You can apply the Rule of Twenty here as well.   For every dollar you discount an item (below your break even), you have to sell twenty more to get back to zero.

BORROWING MONEY:   Everyone does it from time to time.  You go through all of your reserves, maybe even mortgage your home or use personal credit cards.  After all, it seems like business will recover, right?  Why not borrow $300,000 to pay off the past due bills and shore up the business.   Using The Rule of Twenty, if you borrow the 300,000, you will have to create 6  million dollars in “new” revenue to pay it off.  Not only is this shocking to most, but it also fails to consider that the business was already losing money.  There is very little chance that the borrowed money will make the retailer profitable again, it’s usually used to put out smoldering fires.  Don’t forget the interest on the loan as well, plus  the time that you’ll spend managing and servicing the loan.

For retailers that are too busy, wearing five different hats in their business, this is a quick and easy evaluation tool that we hope helps you!

A PFP consultation is free, confidential, easy to schedule and there is no obligation.  Planned Furniture Promotions, call us today, we can help.   

Friday, December 28th, 2012

PFP to handle Clapp Bros. event

Author: Planned Furniture Promotions

Many of the nations finest family owned furniture retailers choose PFP to conduct their last and final sale.  After all, you only get one shot at handling it properly and professionally and PFP’s reputation is unsurpassed for handling events such as this.  Here’s another example of a PFP operated event, as covered by “The Times News” in Burlington, NC.

Clapp Brothers Furniture, open since 1936, to shut

By MollyMcGowan/Times-News/Burlington, NC

Published: Thursday, December 27, 2012 at 17:15 PM.

Jerry Clapp

A Burlington furniture business that has been family owned and operated for three generations is closing in April.

Jerry Clapp, 62, plans to retire in the spring, after dedicating 46 years to Clapp Brothers Furniture, located at 505 E. Webb Ave. in Burlington.

According to a news release, Clapp’s grandfather, C.F. “Dutch” Clapp, entered the furniture business in the 1920s at Rich & Thompson Furniture and Undertaking, which is now Rich & Thompson Funeral and Cremation Service.

In 1936, Dutch and his four sons founded Clapp Brothers Furniture; in 1995 his son Charles Clapp and grandson Jerry bought all shares of the business, and Charles eventually retired.

Now Jerry Clapp says he’s ready to retire and fish at his summer home in Beaufort and play guitar more often with “The Attractions” band.

“It’s a 77-year-old business but I don’t have any children to leave it to,” so he’s selling his furniture and leaving it, Clapp said. He still has a sales book from 1925 with his grandfather’s handwriting on receipts from furniture sales.

“I started when I was 16, delivering furniture after school, and I’ve been here ever since,” Clapp said. For the past 30 years, he’s also purchased the furniture from manufacturers, displayed it in his store and sold it.

Clapp Brothers Furniture carries furniture from brands like Basset, Riverside, Lane, Kingsdown and Broyhill, according to the release. Clapp said the company has always stuck with older brands “that have been around as long as we have.”

“We always tried to carry quality furniture,” he said. And the family company was focused on customer service, and often did furniture repairs, as well.

“I think that’s what kept us going for 77 years,” Clapp said.

“With this final sale, we’re celebrating the three generations of my family who have been privileged to serve so many customers in the Triad community over these many sales,” Clapp said in the news release. “Offering our customers these tremendous deals on quality furniture is one way we can say ‘thank you’ to all our loyal customers.”

The store will sell all its furniture at reduced prices before closing, at which point Clapp will retire. “It’s bittersweet, but it was just time,” he said.

Thursday, October 4th, 2012

PFP named to handle prestigious “Leo Burke Furniture” Closing Event

Author: Planned Furniture Promotions

Reprinted from the Richmond-Times-Dispatch, Richmond, VA

Leo Burke Furniture store closing after 54 years

Jack Burke has taken lots of risks over the years with his family-owned furniture store business.

Now, he’s taking the biggest gamble ever: shutting down the Leo Burke Furniture store in Carytown that his father started in 1958 with a bankruptcy furniture sale.

“It just makes more sense to go out now while we are on top rather than keep pressing on,” Burke said Wednesday.

“There was no big epiphany. We have run a good business for 54 years,” said Burke, the company’s president. “This is a business decision like any other we would have to make. We are always looking at the trends and decided that it made sense to do it now.”

Leo Burke Furniture, which has operated a single location at 3108 W. Cary St., will close this summer. A bankruptcy furniture sale of its entire inventory, including rugs, has begun.

Burke blamed the slowing economy and changing consumer habits as reasons for closing the store.

“I hate to see it, but we have seen a lot of our premier furniture stores close up nationally,” said Wallace E. Epperson Jr., a longtime furniture-industry analyst with Richmond-based Mann, Armistead & Epperson Ltd.

Jack Burke of Leo Burke Furniture assisting a consumer in the store

High-end furniture retailers have suffered in recent years as manufacturers have closed or greatly reduced their offerings, Epperson said.

Most industry analysts would not have expected high-end furniture retailers and manufacturers to be hard hit during the recession, Epperson said, because their core customers — more affluent shoppers — are spending money and are not credit risky.

But those shoppers also are buying better-looking yet cheaper-priced imports that have flooded the market, he said.

“The imports look so good. If you want a leather sofa you can buy one for $2,000 that looks like a $6,000 one,” Epperson said. “As a consumer, it is just difficult to pay that kind of multiple price. As a retailer, how do you compete with that?”

Burke said many of his store’s vendors have gone out of business. “These were ones that were important to us, lines that our customers had became accustomed to buying from us,” Burke said.

In 2007, Burke reduced the size of the store to about 9,000 square feet from 19,000 square feet. That took the store’s size back to what it had been in 1992 when a fire damaged it.

While reducing the store size, Burke said the sales per square foot remained about the same as before.

The company is private and does not release financial figures. Burke declined to provide any guidance of how the store has performed in recent years.

Leo Burke Furniture’s closing comes as another longtime Carytown retailer also is closing. Pirouzan Oriental Rugs is shutting down after 27 years, citing changing consumer tastes coupled with the downturn in the economy.

The announcement of Leo Burke Furniture’s closing, and it’s impending bankruptcy furniture sale — a notice was sent to some longtime customers in the past week — has given Burke time to reminisce about the store with shoppers who have come in and told him what they bought over the years.

“I think this is all happy emotions,” Burke said.

The closing is not a time to shed tears, but a period to celebrate, he said.

“We have had a great business and a great run and I’ve been doing this for 33 years,” Burke said. “I think it is time for celebration. I am excited about it. I see this as a celebration than any other emotion.”