Business Building – Tips to Increase Profit Margins

It’s a shame so many consumers get confused by the difference between markups and profit margins – as do not a few business owners. The difference between a 100% markup versus a 50% margin is vast. Yet, it is often impossible to explain it in ways that the average person understands that your profit margin is not really two times what you paid but merely half the selling price. Further, that bit of profit above the cost of merchandise must then be used to cover the overhead incurred by running your business: salaries and benefits, rent, utilities, insurance, training, investing in new products, the list at times seems endless!

Too often, if a potential client learns of such a markup they will scream, “That’s a 100% profit” and run as fast as they can from you, leaving you in their dust like the Road Runner does to Wile E Coyote!

On the other hand, finding ways to protect and increase profit margins whenever possible is critical to the success of your business, whether you're an interior designer or luxury furnishings dealer.

These thoughts came to us thanks to a recent article at the Business of Home website titled, “Stocking dealers get better pricing on product. Here’s how you become one.”

Becoming a Stocking Dealer will Increase Profit Margins

“The discounted pricing trade brands offer designers allows them a better margin on the products they place in their projects. But many companies also offer an even deeper discount – one that comes with more strings, but that can radically transform [your] firm’s bottom line.”

Or, more simply, the more you buy the better your price. This means, by stocking the furnishings you most often place in your client’s homes in your showroom, making them available for immediate delivery, will get you deeper discounts.

While this is a fairly standard practice for furniture dealers, interior designers may find it difficult to alter their order-as-you-go business model. However, there are many perks to becoming a stocking dealer beyond potentially realizing an exponential return on investment.

Benefits of Becoming a Factory Direct Product Dealer

The benefits of building these more direct relationships with your vendors will often include much more than deeper discounts on their products. These may include improved access to “ [fabric] swatches, samples, and detailed product questions, [and] access to a vendor’s internal online product catalog so [you] can instantly check price lists, see if items are in stock, and monitor shipments.” And, as the article explains … Wait, there’s more!

• Setting up Your Space – Before pursuing any sort of partnership with a brand, most designers must overcome one major hurdle: the retail space. Stocking dealer relationships are typically contingent upon a designer owning a physical shop or showroom where products can be displayed and sold. It makes sense: Brands are investing in their retail partners by offering better margins in exchange for sales floor exposure and a resulting increase in orders.

• Getting A Foot in the Door – After you’ve pinned down your brick-and-mortar strategy, the next step to landing that coveted stocking dealer partnership is meeting with the vendor’s regional sales representative, who acts as a gatekeeper. Home furnishings trade shows like High Point Market are a good place to begin putting a face to the names behind promising brands.

• Making a Deal – While setting yourself up for success and courting the right brand are key to the process of netting a brand partnership, there’s another crucial step to take before inking a deal: Doing your due diligence to make sure that the brand is a fit for you. Then, it’s time to hammer out the terms of the financial arrangement, including a minimum opening order and requirements for annual spending.

• The Payoff for Dealers – Though each brand’s approach to signing a stocking dealer varies widely, there’s a benefit to that as well – designers have space to negotiate a partnership that best fits their business. With a basic knowledge of how the process works and a willingness to go out and hustle, you’re already on your way.

Needless to say, there are other ways for designers to increase profit margins on product sales. If you are curious about what some of these might be, Ted is available for business consulting to help. Simply Get in touch with TD Fall today.

Furnishing Lead Times at the Beginning of 2022

We have some good news and some bad news about furnishing lead times at the beginning of 2022. Let's start with the good news, shall we? It’s not too surprising that it comes from the industry leader, Kravet:

“Say goodbye to long lead times. With our dedication to getting you what you need when you need it, Kravet is always offering innovative solutions to your time-sensitive needs.”

• An astounding 90% of Kravet fabrics are in stock and ready to ship within 24 hours.

• Kravet Furniture is offering their QuickShip frames, paired with 150+ fabrics, produced in 10-12 weeks. This is less than half the current industry lead times.

• They offer same-day shipping for in-stock memos plus FREE FedEx 2nd day air shipping (which we can drop-ship directly to your clients).

Need something even quicker? Contact TD Fall & Co today and we will get you what you need!

Bad News About Furnishing Lead Times

According to an article at the global freight booking platform Freightos.com, the somewhat optimistic predictions for the new year have been slow to be realized.

“With ongoing pandemic-related delays and closures, non-stop demand for ocean freight from Asia to the US, and a lack of capacity, ocean rates are still very elevated and transit times volatile. Transpacific ocean rates have been more stable at the start of the year. Despite this stabilizing trend, rates remain 8-9 [times] higher than the pre-pandemic norm.

“Continued disrupted schedules and port congestion, combined with omicron slowdowns and Lunar New Year, mean that importers have yet to see any significant improvement in shipping conditions in 2022.”

Trucking Delays and Shipping Cost Increases

“With high demand from consumers, importers are rushing to replenish inventory, causing capacity in trucking to tighten and driving rates up. Now many observers warn that quarantine rules for returning truckers could cause significant delays even if goods manufactured over the holiday are ready to ship.

“Overwhelmed trucking, warehouse, and rail logistics are also contributing to the port delays, and to the overall slog in end-to-end logistics.

“Freightos.com marketplace data shows that in September, China-US ocean shipments took an average of 80 days to arrive at their final destination, 85% longer than in September 2019.” (emphasis added)

What You Can Do

Despite potential delays and high freight shipping costs, there are a few steps importers can take right now. Here are a few ideas to help you navigate the current freight market:

• Compare at least a few quotes and modes to make sure you are getting the best cost and most efficient service possible.

• Buffer your freight budget and transit time for changes. Costs due to unforeseen delays or limited capacity can arise, so be prepared.

• Explore warehousing options to mitigate the effects of lowered demand and business restrictions in the US.

• Pay attention to the profitability of your goods and consider if a pivot could be worthwhile. Additionally, remember to factor in freight costs when assessing profitability.

Here at TD Fall, we’re doing all we can to keep our ear to the ground (or ocean, as the case may be) where furnishing lead times and shipping delays are concerned.

And, as always, Ted is available with more than 25 years of experience and industry contacts he can put at your disposal with his business consulting services. Get in touch with TD Fall today.

Furnishings Labor Shortage – What’s Going On?

It seems everywhere you go online or on TV, the news about the supply chain is grim and getting grimmer. (Is “grimmer” a word? Autocorrect seems to think so!) Yet, all of the stories seem the same – shipping has slowed, there’s a container shortage, and the ports of entry on the West Coast are overloaded. Then too, we hear, it’s difficult if not impossible to find workers and the shortage of skilled workers has led to a furnishings labor shortage that may last indefinitely.

Oy, what’s going on?

According to many experts, and despite news sources, the real issue is not so much a transportation bottleneck as it is a labor shortage in virtually every industry. Yes, shipping containers are in short supply and leasing them is more expensive than ever. Cargos ships from the Far East are filled to bursting and must wait to offload outside their usual ports before docking. Then, offloading them is taking days or weeks rather than hours because stevedores are also in short supply.

According to an opinion piece from Jerry Epperson, Founder/Managing Director of Mann, Armistead & Epperson, Ltd. at FurnitureToday.com, the ongoing labor shortage in the US is not limited to the furnishings industry but has become a universal problem. (This is true for not only skilled but unskilled factory workers.)

He wrote, “In September the consumer media seemed uninterested, while in October, they woke to the severity of the problems and offered daily coverage. A few recent articles were encouraging with container shipping costs trending down slowly, fewer Asian factory closings dictated by the COVID-19, and major efforts at the larger ports to improve congestion and get things moving.

“The problem everyone faces is labor. I just read a long thesis about the labor issue by the New York Times that found that American families are so well off financially that fewer need to work. Yes, the stock market and home prices are up handsomely, and Uncle Sam has been generous recently with pandemic-related giveaways, but it still doesn’t feel right for 4.3 million [workers] to walk off their jobs in August.”

The Skilled Labor Shortage is Very Real

In a piece from March at BusinessWire.com, we learn that “While millions of Americans affected by pandemic job loss are still looking for work, the number of skilled trade jobs in the U.S. is far outpacing the supply of qualified workers to fill them. A new analysis by the skilled trades division of staffing leader PeopleReady finds that the most in-demand skilled trade jobs are remaining unfilled the longest, roughly a month on average, due to the shortage of qualified workers.” (emphasis added)

Further, “The skilled trades are in dire need of workers right now, with a particularly high demand for apprentice-level and skilled labor positions. These are steady, well-paying jobs that hold a bright future, even in an unpredictable economic climate,” said Jill Quinn, executive leader of PeopleReady Skilled Trades. “For the millions of Americans who are struggling in their job hunt right now, our message is simple: Consider a career in the skilled trades.”

The reason(s) for the scarcity of high-quality and artisanal workers are two-fold (at least). While it is true that “The skilled trades labor shortage, predominantly driven by a mass exit of baby boomers retiring from the sector, can be an opportunity for people looking for work, especially those who have little to no experience in the skilled trades and need job training.” (emphasis added)

It also appears to be true that “Although the skills shortage in manufacturing has been a pervasive issue for the past several years, our research shows us that far more manufacturers today (54%) than a year ago (38%) are having a particularly hard timing finding candidates with the right skills to fill critical job openings. At the same time, 54% of manufacturers say that negative industry perceptions are impacting their ability to recruit Millennial and Gen Z talent, which is equally challenging.” (emphasis added)

It’s a Nuts and Bolts Issue (Literally)

As an interesting side note, the supply chain problems for luxury furnishings extends beyond the foam shortage and shipping issues we’ve mentioned before.

In an unusual source for industry-related news, Slate.com, we’re told, “Additional fallout from the February storms [which is the original cause of the ongoing foam shortage] has left other factories playing catch-up in churning out domestic supplies of nuts, bolts, fabrics, drawer rails, and brackets for holding together chairs and shelves. This tends to affect more expensive products.” (emphasis added)

And, “Lumber is the other crucial raw material for furniture that’s become much pricier and more difficult to come by … [and] a lopsided supply-and-demand dynamic has been playing out in the sector. There’s been a run on wood not only due to the demand for furniture, but also because of a boom in home building and renovations. At the same time, sawmills pared back operations after the Great Recession and now don’t have the capacity to ramp up production, even if the timber they want to cut is in plentiful supply.” (emphasis added)

Unfortunately, it seems few solutions for any of these problems are being offered by “experts” in the media. However, despite that lack of advice on how to fix things, good news can be found, as evidenced by an article at WoodWorkingNetwork.com:

This included increases in orders as well as decreases in order backlogs. We also saw increases in furniture production and, despite the soft labor market nationwide, employment numbers in October were also on the rise.

“The furniture manufacturing industry experienced strong sales and orders in October and was ranked as the third-highest growth sector in the rankings compiled by the Institute for Supply Management (ISM) in its latest report on manufacturing activity.”

Patience and Optimism are Needed

Based on what we’re seeing currently, not everything is negative so patient optimism seems to be the order of the day. And, though the furnishings labor shortage remains a moderately short and serious long-term problem, we may be seeing light at the end of the tunnel.

Ted remains available for business consulting to the trade and may have the answers you need to cope with our current market. Call us today for the latest on lead times from the Kravet Family of Brands

Online Marketing & The Value of Researching the Competition

Knowledge is a wonderful thing, yet real-world experience is even more valuable. It’s likely because of the importance placed on what’s known as ‘book learnin’ that so many experts take certain details of their niche for granted. That is, they expect their clients to know things they do not. Not only does this happen among interior designers, furnishing dealers, and manufacturers, it frequently happens among those they rely on to support them: for example, business coaches and online marketing experts.

One of the areas in which this commonly happens is market research. Many think they know what the term means yet find it difficult to explain or perform well. It’s a bit like the phrase, “I can’t describe it, but I know it when I see it.”

Well, that’s  really not good enough for the person who is supposed to be doing it – or for the person who needs it done – and done well.

First, we ask, what exactly is “market research”? According to the online dictionary Wiktionary, it is “The systematic collection and evaluation of data regarding customers' preferences for actual and potential products and services.”

That’s a nice, concise explanation as far as it goes but, it’s all about the wants and/or needs of potential customers or clients. Where it falls apart, at least for our purposes, is that it never mentions the competition. After all, none of us live or work in a vacuum free from competition. And, just as it’s critical to know what the market demands, it’s equally important to know how and if other businesses are meeting that demand.

What’s the Other Guy Doing?

Quite simply, if you don’t know what “the other guy or gal” is doing in your market, your chances of cutting into their customer base are low indeed. Further, the business coach or online marketing expert you may have hired will be inclined to believe you already know not only how important this is, but also that you either know it or know how to find out. (That is what we mean about experts taking things for granted, by the way.)

And now, we offer some guidance on how to perform market research on your competition:

What services are the busiest interior designers in your area offering? This one is pretty easy to answer. Jump online and check out the websites or social media profiles of the top designers or dealers in your area and look at their “Services Provided” or “Products” section. For designers, how do they describe their services and what are you seeing most often? For retailers, which lines are being offered in your market, and to what extent?

For both, are they a full-service provider or do they make more of a “one and done” type of impression? For the latter, it should be obvious you could fill in the gaps. (More on that a bit later.)

Which categories of design services are not being offered in your area? Again, researching the competition will enable you to build a list of the most frequently mentioned services or product lines being offered in your area. This list can then be compared to other possible services or product lines that are missing from your market.

That is the list you want to focus on – what we call the “List of What is Possible”. That is, the design services and/or product lines you believe can make an impression on potential clients who are currently unable to find them.

What home renovation or design challenges do customers have in your area? This is an area where the details matter. So many designers go for The Big Job and forget the importance – and number – of smaller and potentially more profitable projects. While it’s great to work on high-dollar, high-profile projects, it’s also a fact of life that many such jobs are quoted with lower margins and end up costing more than anticipated, reducing profits even further. (Landing those jobs is also an ego boost that a sharp designer shouldn’t need.)

Choosing to focus on a higher volume of higher-margin projects that can be completed more quickly is a fantastic path to building your business and your reputation. And, since interior design is a local business (as we keep saying), building your rep as a creative, reliable professional will be your key to long-term success. (PLUS – smaller projects often offer the potential for more repeat business; that is, instead of renovating an entire house, doing one room at a time over time.)

What Are You Doing?

Finding voids in your market is well and good but will have little value if you are unable or unwilling to fill them. Doing so will require that you rethink your business model to better fit those areas. You may even find that the most needed, and potentially most profitable, service categories are not your favorites. However, if your goal is to build your business rather than to tickle your own fancy, you may need to bite the bullet and offer them.

With these thoughts in mind, expand your research by asking yourself:

Which design services can I provide that are unique, superior, or at a more competitive price point? How can I help homeowners solve their unmet renovation or design challenges? Is there a need for a pro with a different pricing structure?

In what other categories could I perform design work? How many competitors in my potential other categories are in my service area? Is there a need for a pro who can take on small and mid-sized projects?

What will set me apart from the local competition? What can I offer that is different, better, done more quickly, or at a better value? Which lines of furniture, fabrics, wallcoverings, rugs, mirrors, pillows, and lighting might have an impact on your market and, in our current jumbled world, which of them have shorter lead times and/or greater availability?

Use these questions to research your area and to evaluate your own business. Your market research must include all of these factors to see if there’s an unmet need you can fulfill to attract new and/or repeat clients and close more deals.

If you struggle with research for online marketing of your furniture or design business, consider working with a more experienced consultant. Ted is available for such business consulting to the trade. Just… Get in touch with TD Fall today.

The Supply Chain – Make that the Supply Ball and Chain

It’s all well and good for a blog like this one to share hot home design trends and uber-cool new home furnishing lines from various manufacturers like Kravet but – there just hadda’ be a “but”, right – but, we still have serious supply chain issues. And, according to some, the problems won’t be ending any time soon.

We don’t want to beat a dead horse on this subject but, while this particular horse is very ill, it’s still far from meeting its maker.

In a recent article at BusinessOfHome.com, author/editor Ray Allegrezza began a multi-part series that purports to analyze the problems with the supply chain and predict some sort of resolution. (Or, at least the potential for resolving these challenges!)

“Perfect storm isn't just a metaphor,” he declares. “In February, severe ice storms shut down the power grid in the Gulf of Mexico, shuttering four major chemical plants in Texas and another in Louisiana, which drastically reduced the availability of chemicals needed to produce foam used for furniture.

“Key upholstery sources began telling customers to expect a series of price hikes on goods, [along] with surcharges to help offset skyrocketing container and transportation costs. And since this was all part of the movie we are calling “The Perfect Storm”, this series of problems – raw material shortages; price hikes for fabric, foam, wood, metal, and more; and related disruptions in trucking, logistics, workforce, and beyond – hit precisely when demand was going through the roof.”

The “Perfect Storm”, indeed.

Doxing the West Coast Docks

Is it doxing if the info you share is true and already public? Who knows.

What we do know for certain is that the largest ports in the US; Los Angeles and Long Beach in the San Pedro harbor of Southern California, usually handle the great majority of imports from Asia. Currently, however, some 100-150 container ships are floating nearby and unable to dock and unload.

Further, once a ship does unload its cargo, there is a backlog of containers waiting for trucks – and drivers – to haul them across the country. Ports up the coast in San Francisco and Seattle simply do not have the capacity to handle the overload.

As a result, other ports in Texas, Georgia, and even Florida have begun to see a substantial increase in shipping. This, despite the added time and expense of traversing the Panama Canal (if it’s not backed up, as well).  These ports are also nowhere near as large as those in Southern California, meaning they do not have the capacity needed to relieve the backlog anytime soon.

If patience truly is a virtue, those of us in the furnishings and design industries must learn to possess ourselves with it.

“Another indicator that industry challenges will persist is a just-tabulated survey taken among 1,500 independent sales reps who are members of the International Home Furnishings Representatives Association. When the survey asked them to share how the pandemic has impacted their businesses and when they foresee these issues improving, 33 percent said mid-2022. Another 29 percent said late next year – and, tellingly, 30 percent said things would not improve until the very end of next year.”

So, according to the sales reps, those who should know since they exist between the manufacturers, dealers, and designers, we’re in for another six to twelve months of this craziness!

What Can You Do?

Besides being patient and hoping things get better for no discernable reason other than faith, the best path for dealers and designers to cope with the supply chain mess is to keep working with suppliers you know and trust. Keep these relationships open at all costs, and keep the lines of communication as wide open as possible between you, your suppliers, and your clients.

Further, it’s our fervent hope that you think of TD Fall as one of those reliable suppliers. We also hope that our relationship with you has made you confident in our ability to not only meet your product needs, but that we also keep you informed of anything that may impact them. If you have questions or need more product information, feel free to… Get in touch with TD Fall today.

Furniture Delivery Delays – Why Are They Getting Longer Instead of Improving?

OK, before we get into the subject of furniture delivery delays, there is something that simply MUST be said. Covid-19 did not cause shipping delays – in ours or any industry. No virus in the history of the world can cause that. However, the reaction to it can, including lock-downs, stay-at-home orders, mask mandates, factory shutdowns, and the myriad of other restrictions that were placed on individuals and businesses.

Having said that, the question must be asked, where does that leave us?

Well, it too often leaves us with delays in delivering the furnishings we’ve been accustomed to getting much more quickly for our clients, and you for yours. Sometimes ridiculous delays, perhaps up to nine months! (Yes, we’re aware that is a sentence fragment but it was the best way to clarify and emphasize the point. Sorry, not sorry!)

So, where does that leave us? Looking for answers from some slightly unusual sources. Now, news sites may not be considered unusual sources for any number of subjects but, in this case, we’re thinking industry sources could be a bit too optimistic. Because of this, we trolled a few sites that would give us the skinny without self-interest as their motivation (hopefully).

Why Is This Happening?

Be advised that some of the reports we chose were published in late spring and early to mid-summer when all of the craziness began – or became recognized. And, some product categories have either not been heavily impacted or are beginning to recover nicely. Still, it cannot be denied or avoided when dealing with homeowners, there are still some serious problems leading to unprecedented lead times for fine furnishings.

As one of the stories from a local ABC affiliate in the Cleveland area explained, “Increased demand, plus truck driver shortages, shipping docks and ports being packed, supply chain logistics issues, and storms in Texas and the southeast impacting factories that make a chemical needed in sofas and mattresses – well, it’s all caused longer than ever lead times.”

Earlier this year, furnishing lead times began to grow from a few weeks to a couple of months. Soon though, four to six months became the norm for many furniture suppliers. Now, thanks to those shortages and the lack of skilled labor, combined with the trucking problems and backlogs at some of the largest harbors and piers, nine to ten-month lead times are not out of the question.

An interesting development we found at CNN was the impact on a source many have no idea is critical to the furnishings supply chain: the country of Vietnam. That’s right, our former enemy has become a major competitor to China as a supplier of clothing and shoes (Nike), as well as upholstered furniture.

According to the article, this summer was a tough time in the Southeast Asian country as they suffered from a dramatic rise in Covid cases. “With factories in Vietnam shutting down due to the outbreak, the front-end of the United States furniture supply chain is badly affected, said Mark Schumacher, CEO of Home Furnishings Association, an industry group representing more than 1,500 retailers.”

Unfortunately, the industry has not fully recovered from these delays, especially in areas that were already struggling thanks to the winter freeze and storms that affected foam deliveries so dramatically.

A Perfect Storm – When Demand is Greater Than Supply

As many have said, the situation has become a perfect storm of homebound people deciding to upgrade their furnishings while the suppliers are struggling to supply even the most basic items: upholstered chairs and sofas, mattresses, and dining room sets. Much like a traffic accident during rush hour, once the flow is halted, the backup (or, in this case, backlog) grows beyond the ability of those in the rear to make progress – or even to know why they’re stuck!

And so it was and, to a significant extent remains, in the furnishings industry.

It’s not ALL bad news though. For example, here at TD Fall, we’ve begun to see a nice uptick in availability from more than a few manufacturers. Fine rugs and wall coverings were only marginally affected, most commonly due to shipping issues rather than a lack of components or labor.

Also, most of our suppliers have had little to no problems shipping accessory items and complementary pieces. Because of this, and as we suggested in a previous post on strategies for coping with delivery delays, many interior designers and furnishing retailers are delivering orders piecemeal where possible. That is, for many clients, something is better than nothing and this can make handling extended lead times easier for all involved.

As we shared then, and continue to believe, “You must… Be open with clients. Never hide extended lead times or other availability issues. Always communicate in both directions: with clients and suppliers. Always share the results of your communication as needed – not just when it might benefit you in some way. (Getting the bad news out of the way upfront will nearly always benefit you in the long run.)” (Is it OK to quote ourselves? Oh well, we did so… )

What’s Next?

Normally, a significant spike in demand like the one we’ve seen in our industry would have all of us drooling at the potential for a big jump in sales or design projects. Instead, 2021 has caused more tears of frustration than feelings of joy at such possibilities.

There is, however, a light at the end of the tunnel. In fact, if our experience at the recent High Point Fall Market is any indication of where we’re headed, optimism should be your next choice. Frankly, we had one helluva showing and, based on what we heard from our clients, fully expect the increased interest to continue.

We’re also seeing lead times gradually shrinking and are delighted that we can deliver more quickly than many expected.

Of course, part of that is thanks to the long relationship we’ve built with the industry leader, Kravet. With so many brands in so many categories, and because they ARE the industry leader with the power to demand exceptional service from their suppliers, product has begun to flow again. Granted, there can be hitches in the giddy-up even for a powerhouse like them but, overall, their century of experience and business relationships has helped us help our clients take care of business where others may struggle.

That said, most of our other lines are improving as well.

So, if you're frustrated, take a bit of comfort in knowing you're not alone. Then, if you're ready to find ways to move past some of those frustrating furniture delivery delays and make your design clients happy… Get in touch with TD Fall today.

The 80/20 Rule of Business – Have You Heard of It?

Have you heard of the 80/20 Rule? It’s kinda cool, and can be kinda sad. Named for the original proponent of the concept, Vilfredo Pareto (1848-1923), the Pareto Principle outlines the concept of disproportion. Or, to put it more simply, life’s not fair!

And, while the exact percentages may shift here and there based on circumstance, it has value when applied to things such as effort vs outcomes, allocation of resources, and even revenue flow.

“More generally, the Pareto Principle is the observation that most things in life are not distributed evenly. It can mean all of the following things:

• 20% of the input creates 80% of the result

• 20% of the workers produce 80% of the result

• 20% of the customers create 80% of the revenue

• 20% of the bugs cause 80% of the crashes

• 20% of the features cause 80% of the usage

Also, recognize that the numbers don’t have to be ‘20%’ and ‘80%’ exactly. The key point is that most things in life (effort, reward, output) are not distributed evenly – some contribute more than others.” (BetterExplained.com)

Pareto Principle in Business & Selling

When it comes to sales in general, and this is very general, approximately 80% of sales will come from 20% of the products or services being offered. Does this mean you can shave all those furnishing catalogs down to one-fifth of what the manufacturers offer and present your clients with a streamlined version of the things you might present to them? No!

As an example, we know a former sporting goods salesman who represented a wholesale operation with multiple manufacturers and some ten thousand products available. Ten Thousand! Did he offer every one of those products to every customer? Of course not. He focused his efforts on the best sellers – but – he also knew that without the other 8,000 or so items in his catalog and warehouse, the peripheral, seldom-sold items, he would not be considered a full-service dealer.

In other words, there is just some stuff you need to have available to be considered legitimate and professional – even if you don’t sell much of it often.

For an interior designer, that might mean working with a local, artisan furniture company as well as a full-service, industry-leading furnishing manufacturer like Kravet.

80/20 Rule Not Written in Stone!

While the 80/20 Rule is a great guide for a small business owner with a few employees or sub-contractors they work with, it’s important to remember that this is not an inflexible law of nature like, say, gravity. The Pareto Principle is an observation of human nature more than anything else and should be understood as such.

Having said that, it’s also important to keep in mind that:

“The Pareto Principle helps you realize that the majority of results come from a minority of inputs. Knowing this, if…

• 20% of workers contribute 80% of results: Focus on rewarding these employees.

• 20% of bugs contribute 80% of crashes: Focus on fixing these bugs first.

• 20% of customers contribute 80% of revenue: Focus on satisfying these customers.

The examples go on. The point is to realize that you can often focus your effort on the 20% that makes a difference, instead of the 80% that doesn’t add much.” But never forget it’s available to you.

So, stick to the one-fifth (or so) of the stuff that matters and the rest will usually take care of itself.

In the meantime, if you think you could use some help figuring out where your most important 20% is, and where that 80% benefit will come from, Ted is available for business consulting to interior designers and furnishing dealers, virtually and face-to-face locally. Just… Get in touch with TD Fall today.

Hot Home Design Trends – Tips for Interior Designers and Furnishing Dealers

What’s hot in home design trends this year? Home office designs. Flexible, dedicated spaces. Going green – the color, not the practice. And… Pillows! Wait, wut?

Yes, according to the folks at Houzz.com, the latest trends in home design and renovations show spikes in interest for everything from home theaters to reimagined kitchens and bathrooms, and from home gyms to accent pillows. Again with the pillows? WLP? (We Love Pillows)!

In an article from August, author Mitchell Parker explained how the online design and renovation site performed an analysis of searches among their audience between 2020 and 2021. Their goal was “to see how home design interests are changing” over the past year. And, while searches may not always translate to actions by consumers, we can certainly perceive trends for which we should be prepared.

(Oh, and, we’ll get to the pillow thing soon. We promise.)

Dedicate Yourself to Creating Dedicated Activity Spaces

Perhaps most interesting for interior designers and furniture dealers, interest in dedicated activity spaces showed a marked increase over the 12 months examined.

Thanks in large part to the pandemic, or the steps imposed by outside forces to “curb” it, the home has increasingly become the 24/7 center of activity for many families. As Parker explains, “The local gym, bar, theater, and office turned hyper-local as people made room to accommodate these activities at home. It’s a major shift in how people think about their homes and one that probably isn’t going away anytime soon.”

Clearly, the Houzz search data on dedicated activity spaces speak for itself:

While the trend toward home offices is to be expected, there is far more going on in American homes than we might have anticipated. Seeing these numbers, the sharp interior designer will be ready for prospective clients who are part of these trends – or wish to be.

Green is The Color of The Moment

“Green is having a moment – and not just in one area of the home, but in several. Searches for green kitchen cabinets were up 829%.”

From decadent to delicious, the color green is as versatile as your imagination can, well, imagine it being. Long neglected in home décor and design, the color can provide a sense of warmth and comfort unequaled by other, more popular, hues.

“I think green is trending for a few reasons,” color consultant Jennifer Ott says. “First off, after years of whites, grays, and cool blues being popular, it seems folks are moving more toward warmer hues. Green bridges warm and cool, so it’s a good transition between the two. It works well with white and gray but also tans and creams.”

Not to be outdone, Kravet’s Lee Jofa line features the color as integral to their new Mindoro Collection.

Decorating for Comfort and Style at Multiple Levels

No longer exclusive to elites, home decorating has reached all levels of income and style.

“Renovations to kitchens and bathrooms command a lot of the home design conversation. But decorating seems to be experiencing a particular boom in interest. Searches for home accents increased a whopping 2,417%, while searches for decorative accents rose 799%.”

Still not convinced? “Searches increased significantly for velvet sofas (121%), gold wall mirrors (606%), and gold table lamps (1,166%). The search for champagne, likely in connection with champagne bronze finishes, increased 846%.”

Oh, hey… Did we happen to mention pillows? Why did we? Well… “Interest in accent pillows is taking off too. Searches on Houzz skyrocketed 5,050%.” That’s why!

Here are links to our in stock pillows from:

• Kravet Décor

• Jaipur Living

“Jennifer Wundrow Interior Design used a stylish mix of color and pattern in the accent pillows shown [above] to tie together various tones and patterns for a cohesive design.”

There’s plenty more to unpack from the article but, us being who we are, we have our own home design trends to share. Just click here to find out more and… Get in touch with TD Fall today.

Inbound Marketing vs Content Marketing (What’s the diff, if any?)

Online marketing. Internet marketing. Social media marketing. Video marketing. Email marketing. Inbound marketing. Content marketing. “Do this one or your business will die!” “Do that one and your business will grow!” “Do the other thing and your business is guaranteed to grow/die/get better/fail/be profitable/never make money!”

But wait. With the internet being universal, aren’t all those things kinda the same these days? Not so much.

You see, some of these things are broad marketing strategies while others are more specific types of marketing techniques. For example, the two in our title this week: inbound marketing versus content marketing.

As part of your broad-based online marketing strategy, content marketing is aimed at your target audience in general. Inbound marketing is directed at a clearly identified type of potential client; a “buyer persona” that you create as the perfect client for your services (or products).

Content Marketing Strategy

As defined by Wikipedia, “Content marketing is a form of marketing focused on creating, publishing, and distributing content for a targeted audience online.” As you can see, there is nothing about a “persona” or “profile” in this definition of content marketing. Here, your target audience is pretty much anyone who might be interested in your services. This requires you to generate content that has a broad appeal to a diverse audience.

This may be very easy, or very hard. That is, it can be difficult to avoid stating the obvious or sharing platitudes when you write for such an audience because it’s often difficult to focus on exactly who may be interested in your content. It can also be seen as intrusive (and possibly unwanted). On the other hand, when you get it right, the appeal of such content can be far-reaching and may generate interest among folks you had no idea might wish to do business with you.

Such an audience might be defined as:

• Homeowners

• Local

• Single or married with kids

• Mid- to upper-mid income range

• Likely works for others

• Active on social media

• Pain points are a bit vague and generalized

• May be interested in DIY training

As you can see, these are essentially categories of people who may someday wish to work with an interior designer or buy from a luxury furniture store. Such timeframes and wishes are by definition vague, as are the categories. However, it is possible to generate interest with content marketing, which can then be used to engage your audience in a more targeted fashion: for example, email campaigns or newsletter subscriptions.

Inbound Marketing Strategy

Requiring in-depth research and marketing know-how, “Inbound marketing is a business methodology that attracts customers by creating valuable content and experiences tailored to them. While outbound marketing interrupts your audience with content they don’t always want, inbound marketing forms connections they are looking for and solves problems they already have.” (Hubspot.com)

Further, inbound marketing focuses on building a website, its content, and a clearly defined audience. The strategy here is targeted to encourage readers to “perform an action such as inquire, buy a product, or complete a form”. (Spyralitics.com)

Inbound marketing content is interactive. It’s targeted, purposeful, and helpful. It is not intrusive (and therefore not unwanted), because you're providing your audience with content they’re searching for – and need.

Your targeted “buyer persona” or “ideal client profile” for an inbound marketing strategy might include:

• Owns a home worth $1 million or more

• Lives in a specific, high-end local neighborhood(s)

• Is a married female with a family

• Enjoys an upper-income range for your area

• May work in a creative profession

• Likely small business owner, entrepreneur, or other professional

• Is active on specific social media platforms

• Has well-defined needs and desires, with distinctive (perhaps unique) pain points

• Appreciates expert knowledge and professional services from a creative influencer

As you can see, the profile of your potential audience here is far more specific and targeted. It can be narrowed even further with additional research and based upon experiences with previous clients. That is, clients you’ve most enjoyed working with in the past.

Stated simply, inbound marketing does not rely upon a silhouette of what is possible in your audience, but a portrait of who you want your audience to be.

While we do not happen to offer inbound marketing or content marketing support at TD Fall, we do have contacts who can. And, of course, Ted is available for general marketing and business consulting to the industry. Get in touch with TD Fall today.

Interior Designers Job Description – 7 Hated Aspects of Entrepreneurship

If we take a look at the contemporary interior designers' job description, we find something interesting. And, when we say, “job description”, we’re talking about a real-world, marketplace-driven depiction.

Few will doubt that the most powerful reason for becoming an independent designer is freedom: not only creative freedom but, hopefully, financial freedom, as well. And yet… While you (FINALLY) get to be The Boss, there are aspects of entrepreneurship that are truly mind-numbing and energy-draining, things that can make the cost of that freedom seem incredibly expensive.

This was brought to mind by an article we found titled, 20 Entrepreneurs Reveal What They Hate About Being an Entrepreneur. While it doesn’t offer many solutions, those suggestions come from us, the list can't help but make one take some time to think things through a bit more deeply. We’ve chosen our Top 7 from the list but, don’t hesitate to check it out yourself. (It’s a doozy!)

7 Costs of Business Independence

• Risk – The financial risk involved with a business startup is perhaps the most common reason an interior designer might not take the leap into working for herself (or himself). Getting started is an incredible challenge of course, but dealing with the unstable nature of business in general – and interior design in particular – can definitely keep you up at night. Ultimately, you need faith to make it happen, in yourself and your business purpose.

• Responsibility – When things go right, there’s no better feeling AND you get all the praise! But, when things go wrong – you're on the hook for it – forever and for always! After all, you're now The Boss (see above), and that means you will be held to account for ANY problems that develop in a remodeling or design project. Acceptance is key here. You asked for it, you got it. Accept responsibility and keep moving forward.

• Micromanaging – Taking care of mundane business tasks, the “paperwork” of old, is a total drag, whether actual paper or digital records. From creating invoices to writing checks for everything, and so much more, every detail must be managed and the buck can only stop with you! In the beginning, this should be something you can live with. Eventually, though, you'll need to learn to delegate tasks and, for a micro-manager, that ain’t easy!

• Timesuck – Oy, the hours you’ll put in! Time management (or the lack thereof) is perhaps the most common complaint among even the most successful entrepreneurs. There simply are not enough hours in the day so, working past midnight and on weekends becomes commonplace. And, you can pretty much forget about taking a vacation for the first few years – at least. (See below)

• Team building – Once your design business is on a roll, further growth will require team-building skills not taught in most design schools. Heck, it’s not taught in most business schools. (Not real-world skills, anyway!) Often, by the time you accept that you need help, you're well past the point where you should have sought it. This can make your search feel desperate, to the point you’re willing to accept almost anyone with a pulse. Instead, get started early and give yourself time to grow into accepting help even as your business continues to grow. (And maybe even take a vacation.)

• Delegation – Similar to team building, delegating tasks to others is nearly always a challenge to a far-seeing entrepreneur. Will they share your vision? Can they further your mission? And, once you get used to doing everything yourself, which is inevitable with a startup, issues of competency and trust rear their heads. Hey, you gotta start sometime and, if your family no longer recognizes you when you occasionally make it home in time for dinner, well…

• It’s lonely at the top – Well, not really, since everyone and their brother are making demands of you! But, you get the drift here. All of that responsibility and risk, that managing of projects and people, the energy-sapping time demands, and the need to rely on others are decidedly NOT the reasons you started your interior design business.

Unfortunately, these are just some of the costs of satisfying your entrepreneurial spirit and going out on your own. Are they worth it? You betcha’! (Just ask Ted.)

While there are no easy answers, and all platitudes suck, you can find some peace and reduce stress through mindfulness, acceptance, and gratitude. Stay conscious of your purpose, not just your business vision or mission. Accept that, for a while at least, these costs can only be borne by you but that, in the long run, things will get better. And finally, be grateful that you are able your pursue your dreams and are on the way to making them real. (That’s a Big Deal, right there!)

Need help? As always, Ted remains available to help you get there with business consulting to the trade, locally or virtually. (Or, virtually local. Whatever!) So, feel free to … Get in touch with TD Fall today.