IMPORTANT changes in Hancock & Moore-Jessica Charles-Councill furniture AUGUST 1

[drcollie]

Its no secret that I do a lot of business with the Hancock & Moore companies which include not only H&M, but Jessica Charles and Councill. I like the way they do business and the quality of their product line. When you believe in a product, its a whole lot easier to enthusiastically sell it. A large portion of this site discusses these brands and they are the primary sales engine for my store and livelihood as well. There are new policies in sales and distribution going into effect on August 1, 2013 that will change the way and price that I sell these brands. I knew last year it was coming, I could hear the drumbeats back in 2012. And now that day has officially arrived.

The H&M companies believe that sales are ideally done in a brick and mortar environment with trained sales personnel so you can see and test the furniture in person as well as much easier returns for issues/problems etc. The internet sales/phone orders have always been a sticking point because of heavy discounting of the products, and they have made a decision to exercise control in that regard. I am a team player with them and a partner in promoting and selling the brand so I will adhere to the policies they set in place and not waver from them. I do that not only for the terms of the policy, but for the respect I have for the gentlemen that run the companies. This will effectively shut down most all long-distance sales not only from my store - but all that sell long-distance, I believe.

Effective August 1, 2013 there is a new Sales and Distribution Policy that will effectively eliminate steep discounts on the Hancock & Moore family of brands. This is much more than a simple price increase, there will be a minimum selling price going into effect. It will also effectively eliminate the entire Town and Country promotion for mail order / internet sales. Here's what is going to happen on August 1, 2013:

* Minimum Selling Price that ANY dealer can sell to you will be 35% off MSRP for orders is taken over the phone, via computer, email, etc. Using an example... a $ 10,000 sofa MSRP can not be sold for less than $ 6,500. That cannot include free shipping or any other additional incentives. Dealers violating this policy will be in jeopardy of losing their dealership. That is a huge difference between what that $ 10,000 MSRP sofa can be currently ordered for. I will not post the price I sell that 'example' sofa for currently but it would currently be less than $5,000.

* Town and Country Items will also follow the 35% off MSRP pricing example. That, in effect, negates the Town & Country promotion entirely for those not buying brick and mortar locally.

* In-store sales within a dealer's trading area will not be affected by this policy. A dealer can sell to anyone in their store at any price they choose.

* What this means to you as a consumer: After August 1, you will most likely get a better price on any Hancock & Moore / Jessica Charles / Councill product by purchasing locally in your area from an authorized dealer.

I will continue to provide expert information on the H&M family of products via the forum - this has always been first and foremost an information forum done free of charge and as a service to those who have questions about furniture. After August 1st I will look to build up my local business around the Washington DC area in these brands as I expect long distance sales of this product line to slow considerably with this new minimum price policy going into effect, and less inclined to spend several hours per day to quote prices via PM and email for folks outside of my trading area (i.e., regional sales). One thing to note as well - this applies to every H&M dealer that sells long-distance, not just my store.

During the remainder of June, and through July 31st, I will continue to take orders on these brands at my usual discounted prices. A general price increase has arrived that goes into effect on July 22nd as well, but in looking through it its not too severe, certainly not compared to what goes into effect on August 1st.