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

[fdmason]

I don't know why H&M doesn't have their own brick and mortar stores if they feel this way. Bottom line is that many of their retailers just are not knowledgeable. They can probably make more money on some of their other product lines and don't dedicate their time and energy into knowing as much as they can about H&M.

I was ready to purchase from a local dealer. I was willing to pay a bit more (within reason). My experience was terrible. Not saying it's H&M's fault, but the dealer I went to just had too many brands that it would be impossible for a salesperson to know them all intimately and when I'm spending 5 figures on anything, I NEED my salesperson to know every inch of the product. Would you buy a car from a dealership that just knew that the car ran on gas and was red? That's how I felt trying to get info on H&M at my local dealer.

Internet sales are a way of life now. Want to compete? Just set the price, period. No discounts, no gouging, no phony "sales." Let customer service determine who gets the sale.

[drcollie]

I think their concerns are valid at H&M - as a B&M store myself I have had so many instances of consumers taking advantage of me that I can't count them - nor shall I because it would make me quit the business! Example:

I had a middle-aged couple recently come into my store 9 times to buy Bradington-Young, and each visit was about 2 hours. They took samples home at least 6 times. I answered probably close to 1,000 questions for them as they peppered me with them non-stop on each visit, I made at least 10 calls to B-Y on their behalf asking for leather stocks, etc. I even looked and planned out their layout of their room on graph paper advising them on scale and placement - all because that is what I do. FINALLY - they decided to order, but said they had to run to go make an appointment and would return. When they came back 2 days later they had a paper they proudly produced email copies of two internet dealers that had better pricing than I did on the models they wanted. How did they beat me on the price? It was Virginia sales tax - he was shopping net-net price. The man said "If you eat the Virginia Sales Tax, we will buy from you because you helped us so much.". At that point, I was furious. I cannot 'eat' the sales tax, that's illegal. And I was not coming off 5% more on my prices so I let them walk - he couldn't believe it! Nor could I. So, I know how upsetting it is to a store when consumers do that. For that reason I will NEVER - EVER say to anyone 'go shop your local dealer and then call me' or solicit sales from out of area. That's unethical and I won't do it as I have been on the receiving end of it too many times.

It cost a lot of money to run a retail operation as well. Some are vertically integrated like that (La-Z-Boy, Ethan Allan, Ashley, Arhaus, Pottery Barn, etc) but you have to have an entirely separate operation from manufacturing and an entire structure dedicated to that. You can be really good at manufacturing or really good at retailing, but its hard to be really good at both. I think H&M is wise to concentrate on doing what they do - best - and that is making the product.

Lack of knowledge of the product by salespeople is nothing buy laziness and lack of motivation to learn. Simple as that. They would rather watch You Tube videos on their iPhone than study the price book on the supplier product they sell. That happens all too much and is the core reason for this forum - as an educational tool on furniture. When I first started this forum, I was far more interested in talking about hard case goods such as chests and chairs and fine woods, but members here took it in the direction of upholstery - and that seems to dominate much of the discussion!

I have been studying H&M's new policy every day now, and I think that in reading it carefully I will still be able to take care of my long distance customers who have been very loyal to me over the years. I'm going to read it another fifty times or so them come up with some solutions.

[needstuff]

A lot of the same things could have happened in the course of an internet sale too though.
You could have been peppered with questions just the same. Except over the phone.
You could have provided them with fabric samples, but by mail. Which is yet more work for you.
They could have caused you to call B-Y to get answers anyway- just over the phone.

On an internet sale you can also be shopped, and asked to match prices.

I imagine these are some of the generic downsides of being a retail product dealer, but many of these downsides ought not be completely eliminated merely because the customer doesn't physically come in. Seems to me.

[Damask]

As much as I understand H&M's dilemma and the local retailers' frustration with people visiting their stores and then ordering online from someone else, I'm totally heartbroken with what's going to happen and who is going to suffer at the end. I don't believe I would be buying H&M based on my experience at the local dealer I visited. I'm buying H&M because I can buy it from YOU Duane. I truly hope you can find a way to still sell long distance! I just found you and I have a list of quite few pieces I really want but there is no way I can buy all of them by 20th this month (closing on my new house is not till the end of August and my mortgage broker would kill me LOL).

One more idea, what about your customers who have the Keeping Room Credit Card? As your loyal and dedicated customers, maybe they could be excluded from these new H&M's limitations?

I need one more clarification please on the internet/phone/fax/mail orders vs. in-store orders shipped to another state.
You mentioned that if someone flies / drives to your store and orders there, the price will still be up to you and not based on the new policy? Even if the furniture would be shipped to another state?
My DH is so impressed with my comments about you that he said he'd drive to your store with me if I want to (when we are ready to order more pieces in few months). 250 miles! That's from a man who won't go furniture shopping with me to a store 15 minutes away or when he finally does, he's ready to leave it within 5 minutes! I know he'd enjoy meeting you, he's a car enthusiast as well

And I also wonder, how exactly is H&M going to enforce this new policy? If I could indeed drive to your store to buy the furniture but then have them shipped to another state, are they going to rely on your confirmation that I was actually there? I know you are an ethical businessman and will follow H&M policy, and I'm definitely not a kind of person who would try to "cheat", but I wonder how this will work out with other sellers who just may not be as ethical...

...
* 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 is a dealer's trading area exactly? The state he's in? Area not covered by another dealer? What is YOUR trading area?

[drcollie]

I spent some time on the phone with the Hancock & Moore company CEO today and we talked over this new policy at length. It's going to be iron-clad and non-wavering, and he expects to lose some short term sales to other brands such as Bradington-Young, Leathercrafit, etc. He is committed to a brick and mortar sale environment and has asked me to adhere to the new policy as its written, so that's the way its going to be on August 1. You can still buy the H&M products from my store (Hancock & Moore, Jessica Charles, Councill) , but it will be 35% off MSRP (currently I discount over 50%) and Town and Country will go away entirely for internet sales.

There is no published MSRP on-line, and the price book is 143 pages, that's too much for me to scan in with a flatbed scanner every 6 months, so its going to be awkward to look at pricing.

The good news is you have three more weeks to get whatever you would like under the current structure. And, until July 20th at the current prices. PLEASE-PLEASE-PLEASE do not wait until the last day on these, I usually get inundated with orders and cannot keep up with the phone calls and orders. I am only one person here at the store, and when I get 30 emails, 20 call-backs and people in the store - plus on the phone it simply overwhelms me and you risk getting shut-out.

A trading area is that commonly served by the local / regional TV and newspaper markets. In my case it would run about 60 miles or so from Washington DC in all directions. Note that if you physically come into my storey - I can still sell at my discounted prices no matter where you live. So there is that one workaround we have - you'll have to take your vacation to Washington DC to see the sights and come stop in! I'm only 5 minutes from Historic Mt. Vernon, VA (George Washington's home)

[Vegas]

Duane, don't forget me! I live in Las Vegas and there is no H&M dealer here. I hope you can work something out with H&M as I do want to buy more in the coming years. I can't just jump in the car and go to California or New Mexico or wherever to see and sit in maybe 3 style of chairs, etc.. Besides that, I just want to buy from you because you have the kind of service and business ethics I haven't had in years! Thanks for your help with my Princeton chair and ottoman, Carmen sofa, and on order Utah tufted chair and ottoman, and English Executive chair. See what I mean? I know I will need new recliners before long too.

[QualityCounts]

As a newbie to this site and this thread, I have to say I am sad to read all about this. I hope H&M comes to its senses, or loses a lot of business and then comes to its senses before its business balance sheet collapses.

[BevoGal]

I don't suppose, as a partial/temporary measure, you could convince them to add an existing-customer grandfather clause allowing you to sell by electronic means to customers who have already done H&M business with you. The argument by the other dealers being they can't compete, you could argue that the competition is over and you won for these customers. If they can't buy H&M, they are more likely to buy another line from you than shop another store. I suppose they would have to offer that loophole to every distance dealer as well, and it would be nearly impossible to enforce without requesting some sort of proof be included with every order - pretty messy for a company still using faxes and (presumably) paper files to a large extent.

I like this idea above. Overall, you really can't force people to suddenly go in to their local store and still buy H&M. Louis Shanks would have scared me off of the brand (they actually drop you off in the H&M section and don't even try to close a sale on those, unless your dripping $$!) and I wouldn't have that beautiful Sundance sectional I love. I was so pleased with my purchase from The Keeping Room that I planned to go back and purchase an ottoman, desk chairs, and any other special pieces I collect through the years. Had I not found the price I did, using my online resources (hello, it's 2013), I know I would have purchased another brand. Ugh, with a degree in marketing, and job experience in brand management (oil and gas), I just hate to see this move that feels a bit backwards and not in support of the modern customer. Thanks, Duane, for filling us in and keeping us posted on new details.

[BevoGal]

Note that if you physically come into my storey - I can still sell at my discounted prices no matter where you live. So there is that one workaround we have - you'll have to take your vacation to Washington DC to see the sights and come stop in! I'm only 5 minutes from Historic Mt. Vernon, VA (George Washington's home)

Southwest Airlines JUST announced direct flights to Washington D.C., so there actually is potential for this =)

[MRSSQRDAWAY]

I hope the owners of H&M are not shutting down all internet sales thru their dealers only to start a direct sale from manufacturer business. As I read others on this site , quite a few of us have no option on buying H&M except thru internet sales. In the area I live there are no dealers that offer any better than Ashley.