Where is your mindset for 2012?
BY PETER SCHOR
Showroom specialist
As I review the last several years of my 40+ year career, I encourage you to create a more positive attitude and to look for solutions to improve your success in these tough economic times.
How do you see 2012 for you and your showroom? Is the glass half empty or half full?
There is lots of positive thinking and solution-orientated wisdom for 2012. In my November 2011 column, I expanded on David Kohler’s ideas from the Southern Wholesaler Association convention keynote presentation. In his speech, Kohler offered the following advice and solutions:
• You can succeed in this environment. In many ways, it’s better than what we’ve seen in other recessions. Consumer mindset is shifting, creating opportunity and change. Every segment of the market cares about value.
• Let’s focus on what we can control and what is possible. We can overcome adversity and find ways to succeed in any environment.
• The Internet is the single biggest factor impacting business in my lifetime. I want to use our presence on the Internet to drive more traffic to our distributors. That speaks to our distributors having both a strong physical presence as well as an online one.
• My father (Herbert Kohler) said if it’s worth doing, it’s worth measuring. What gets measured gets managed. What gets managed gets improved. We will still live by that philosophy.
On December 4, I received an informative e-newsletter, Year End Economic Outlook, from Steven Kleber, president of Kleber & Associates. Steven is an expert in the kitchen and bath industry in marketing, advertising, public relations and social media. In his newsletter, he spoke about positive outlooks for 2012. He cited these facts:
• December began with the stock market’s best performance in almost three years.
• The unemployment rate fell to a 21/2 year low, while the number of Americans who signed contracts to buy homes surged to the highest level in a year. Homebuilders are now as confident as they were in May 2010.
• What’s more, consumer confidence rose by the most since April 2003, on the heels of record-breaking retail sales from Black Friday and Cyber Monday. And it wasn’t all flat screens and iPads; Home Depot shares are now at a 52-week high.
• U.S. factory activity expanded to its highest level since June, while construction spending climbed to an annual rate of some $800 billion, led by housing and commercial starts.
• The Census Department released its monthly New Residential Homes Report showing a 1.3% monthly increase and an 8.87% increase year-over-year. The inventory of new homes has now fallen to the lowest level seen in the last 47 years.
• The U.S. is on target to invest more than $337 billion on our homes, with annualized private residential fixed investment rising 3% for the quarter, based on the Bureau Economic Analysis. Significantly, this is only the second increase since 2006, and this time it’s not boosted by artificial government tax-credit stimulus.
• While shadow foreclosure inventory and the European economic community both appear to be held in check (at least for now) by coordinated institutional effort, I remain quite optimistic for the new year. How about you?”
Jonathan Sweet, editor in chief of The HousingZone.com, wrote a multi-page article published on 12/2/2011, called “Nine reasons to be optimistic about housing.” You can read the full article at www.housingzone.com/industry-data-research/9-reasons-be-optimistic-about-housing). He said, “There have been a lot of positive signs for a housing (and broader economic recovery) coming out lately. Here are nine reasons why we might be looking at a better 2012 than 2011 in the residential construction market.
• Unemployment drops to lowest point since 2009.
• Pending home sales were up 10.3% in October.
• Housing affordability is at record levels.
• Consumer confidence is up heading into year-end.
• Existing home sales make a surprising October jump.
• Residential construction spending up 3.4%.
• Construction industry adds most jobs since 2006.
• Builder confidence is at an 18-month high.
• Single-family starts increased in October.”
My deepest area of expertise is in bath/plumbing products in the hotel industry. I have read a dozen articles written by leading hoteliers in magazines and mainstream newspapers such as USA Today that indicate that the hotel industry is doing well. Some examples include: Hotel Interactive, a 24/7 online hotel news source, reporting on the 17th annual lodging conference in Phoenix, said that, “Confidence is higher than it has been in years and financially focused folks are happy!”; USA Today, 9/27/2011, “Hotel industry sees ‘positive activity’”; USA Today: “Travelers check back into luxury hotels”; USA Today, 10/28/2011, “Hotel industry expects check-ins to rise in 2012”.
“Where are the solutions for increasing your sales in these tougher economic times?”
The following articles are included in the archived section of my showroom columns in The Wholesaler (www.thewholesaler.com). Go to the website and click on Archives. Trust me, most of the answers are there.
• October 2011, “Selling luxury goods in a tough economy”
• August 2011, “Meeting the challenge of today’s economy”
• July 2011, “Creating The Experience in your showroom”
• February 2009, “Stress reduction in these tough economic times”
• January 2008, “Making 2008 your best year”
I saved the best article for last. The January 2008 article listed 33 ways to increase your sales and gross profits, save time, increase productivity and improve your showroom.
Attention readers: I care 100% about plumbing wholesaler showrooms and your wellbeing. Please send me an e-mail to tell me, besides the economy, what problems and challenges you face? I will respond to you and, if you give me permission, I will publish the problem and solution (without using your name or company) so that others can see that there are solutions to common challenges.
In the meantime, let 2012 be a great year for you, your family, and your showrooms!
Peter Schor, president of Dynamic Results Inc, is a bath/plumbing industry speaker, educator, author, columnist and consultant in the many segments of our industry. For the past 20 years, he conducted seminars and speaks at numerous conventions. Schor has great expertise in the field of showrooms and hotel bathrooms and has won many industry awards. He also consults manufacturers in taking their products to market in the areas of sales, marketing and public relations. Schor can be reached at 1302 Longhorn Lane, Lincoln, CA. 95648, phone 916/408-5346, fax: 916/408-5899. e-mail pschor@dynamicresultsinc.com or visit his web site: www.dynamicresultsonline.com.