scouting report - may/june 2014

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An ALLPRO ® Publication VOL. 23, ISSUE 9 MAY / JUNE 2014 By: Scott Morath From a strategic standpoint that means taking a step back and looking at the big picture. What are your goals and do you have the assets or resources to achieve those goals? Do you have a plan in place? If so, do you need to adjust that plan? What are some things you could do differently to better position yourself? In this issue we try to offer up a few things to help spur new ideas or reconsider things you may have dismissed in the past. Matt Docherty of HERO Products has contributed a short article on how to assess your overall business and develop a roadmap for it. We also look at ALLPRO member The Color House. They’ve revamped their digital presence and are beginning to see the fruits of their efforts with increased website traffic and greater engagement with their customers. We re-introduce you to blogging and our initiative with ALLPRO member Hirshfield’s to facilitate an ALLPRO blog that members can use as a resource to build a larger online presence. In the Company Profiles section we introduce you to new supplier partners Epoxi-Tech, Jotun Paints, and Plutonium Paint. You probably saw each at the show but may not have been able to spend as much time as you would’ve liked learning about who they are. Each brings something different to the table that may provide you with a distinct opportunity in your market. In conclusion, I hope you’ll take the time to read through this issue and carefully consider the material presented. While there is no guaranteed formula for success, there are helpful ideas and success stories. Each may inspire and help you figure out where to go from here. Where to Go From Here You won’t hear it from politicians or pundits (at least not in a mid-term election year) and you probably won’t hear it espoused by business analysts for fear of speaking too soon. However, if you take a moment to look at the indicators, or at least the ones our industry measures, you may begin to recognize the signs of an economy that is stable and growing again. Reports from Kiplinger, the National Association of Home Builders, the US Census Bureau, and Dept. of Housing and Urban Development all speak of continued confidence and stability. Now, by stable and growing I don’t mean the kind of stable and growing our industry experienced during the housing boom. If you’re waiting for those days to return don’t hold your breath. We are stable and growing incrementally at a much more measured pace but it’s growth nonetheless. That incremental growth will, of course, be tempered by the opportunities that lie ahead. Meaning today’s post recession consumers are much more conscientious about spending money. They’re more apt to live within their means rather than make large purchases on credit or finance large home projects. Likewise, business owners in general are much leaner, operating with a greater focus on being efficient and also less willing to incur debt. In short, consumers aren’t willing to spend as much as they once were which means there’s not as much meat on the proverbial bone. And retailers are still just as hungry as ever but there’s less to go around, so the competition is particularly intense. That means you have to be smarter, work harder, and maximize resources even more so than before to continue to compete.

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Where to go from here, branding your business, The Color House - Growing their online presence, reasons why your store should blog, company profiles, FYI, and news and views.

TRANSCRIPT

Page 1: Scouting Report - May/June 2014

An ALLPRO® Publication VOL. 23, ISSUE 9 MAY / JUNE 2014

By: Scott Morath

From a strategic standpoint that means taking astep back and looking at the big picture. What areyour goals and do you have the assets or resourcesto achieve those goals? Do you have a plan inplace? If so, do you need to adjust that plan? Whatare some things you could do differently to betterposition yourself? In this issue we try to offer up a

few things to help spurnew ideas or reconsiderthings you may havedismissed in the past.

Matt Docherty of HEROProducts has contributed ashort article on how toassess your overallbusiness and develop aroadmap for it. We alsolook at ALLPRO memberThe Color House. They’verevamped their digitalpresence and are beginningto see the fruits of their

efforts with increased website traffic and greaterengagement with their customers.

We re-introduce you to blogging and our initiativewith ALLPRO member Hirshfield’s to facilitate anALLPRO blog that members can use as a resourceto build a larger online presence. In the CompanyProfiles section we introduce you to new supplierpartners Epoxi-Tech, Jotun Paints, and PlutoniumPaint. You probably saw each at the show but maynot have been able to spend as much time as youwould’ve liked learning about who they are. Eachbrings something different to the table that mayprovide you with a distinct opportunity in yourmarket.

In conclusion, I hope you’ll take the time to readthrough this issue and carefully consider thematerial presented. While there is no guaranteedformula for success, there are helpful ideas andsuccess stories. Each may inspire and help youfigure out where to go from here.

Where to Go From HereYou won’t hear it from politicians or pundits (atleast not in a mid-term election year) and youprobably won’t hear it espoused by businessanalysts for fear of speaking too soon. However, ifyou take a moment to look at the indicators, or atleast the ones our industry measures, you maybegin to recognize the signs of an economy that isstable and growing again.

Reports from Kiplinger, theNational Association ofHome Builders, the USCensus Bureau, and Dept.of Housing and UrbanDevelopment all speak ofcontinued confidence andstability. Now, by stableand growing I don’t meanthe kind of stable andgrowing our industryexperienced during thehousing boom. If you’rewaiting for those days toreturn don’t hold your breath. We are stable andgrowing incrementally at a much more measuredpace but it’s growth nonetheless.

That incremental growth will, of course, betempered by the opportunities that lie ahead.Meaning today’s post recession consumers aremuch more conscientious about spending money.They’re more apt to live within their means ratherthan make large purchases on credit or financelarge home projects. Likewise, business owners ingeneral are much leaner, operating with a greaterfocus on being efficient and also less willing toincur debt. In short, consumers aren’t willing tospend as much as they once were which meansthere’s not as much meat on the proverbial bone.And retailers are still just as hungry as ever butthere’s less to go around, so the competition isparticularly intense. That means you have to besmarter, work harder, and maximize resources evenmore so than before to continue to compete.

Page 2: Scouting Report - May/June 2014

branding is typically mistaken for company identity,naming or logos. When developing your brand,start by asking yourself these questions;

• Does your brand accurately reflect what youwant you to be?

• Does your brand create a compelling point ofdistinction that gives you a competitive edge?

• What are you doing about the gaps that existbetween what you are and what you could be?

It is a common myth that simple BrandManagement breeds success - whereas quiteoften, this is not the case. Many businesses forgetto manage their brand, while others believe theydo, when in fact they are only focusing oncompany identity. By contrast, the most successfulcompanies focus on strategic brand maintenanceas it relates to every aspect of their business. Thesecompanies understand that logos and messagesare mere tools that are used in conjunction withmeaningful touch points, toward creating emotionalconnections with your customers. Thesecompanies forge brand loyalty and this branddevelopment / management is not a one-timeevent, but rather a forever EARN, and an ongoingprocess toward driving business results – as yourBrand is continually evolving – or dying.

We must remember that everyday markets change,and so do customer perceptions, consequently,Brand Assessment requires continual reevaluationand a commitment to brand validation in every partof your company. Brand management helps youand your staff re-commit to the vision and goals ofyour business, ensuring consistent and accurateapplication of your brand across the organization.Remember the only thing constant is change, andwe operate in a changing marketplace. Competitorschange; consumer perceptions change; yourcustomers’ values change; and your products andservices change. That’s why all successfulorganizations periodically reassess and refresh theirbrands. A brand assessment provides anopportunity to evaluate the strength of your brand,to underscore the value of your brand withcustomers, and to reposition the brand, ifnecessary, to reflect changes in your market.Finally, it ensures accurate application across theorganization. Evaluate your brand, both internallyand externally, identifying the gaps between whatyou want your brand to be represented and howyour customers perceive your brand in themarketplace. This continual focus enables yourbusiness to grow and prosper – as successfulbrands stem from solid brand strategies.

Now it’s time to put your brand into action, and

Branding Your BusinessBy: Matt Docherty, VP of Sales HERO Products

Every business whether an individual retaillocation, multiple outlet retailer or a largecorporation, needs a plan to market its business.This plan should include all of the following; aDefined marketing strategy, a roadmap allowingpath toward Implementation and a timelinemeasuring the Executables toward yourobjectives. Without these three criticalcomponents, your company will not survive &D.I.E. in the business world, as it would be virtuallyimpossible to inform your community about theessential reason for the existence of your businessand about all the products you offer & that areavailable to them.

The foundation of any successful business beginswith how you, as an independent retailer, chooseto market & advertise your company and products.This may be accomplished in different methods,but should always begin with a Brand Assessment.The 1st step in this process is to conduct anoverview of where your company currently ‘fits’into the marketplace. This is typicallyaccomplished by reviewing your product categorysegments along with current market share.

Brand Overview - if you’re in business, believe itor not you have a brand. Chances are, you don’tthink about it very often. In fact you may not evenknow what it is, but one thing is definite: Yourbrand is all your customers know about you. It’snot the products you sell; it’s not the services youoffer. Your brand doesn’t even exist in materialform. Rather your brand is a perception – aconcept that exists in the mind of your customer.Brands tap into all aspects of your customers’decision-making process, and create a point ofdistinction between you and your competitors. Infact, your brand is the most influential thing yourcustomer will ever know about you. The beauty ofbrand is that you can control it. Better yet, you getto choose it. And if you take a proactive approachto managing your brand, you’ll be well on yourway to controlling your success. And yet all thewhile, your brand singularly determines the futureof your business.

Brand Development isn’t about your logo. In fact

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Page 3: Scouting Report - May/June 2014

ALLPRO member Color House, with three stores in Providence, RI, recently underwent a completeredesign of their company website and onlinepresence in general. We sat down with ownersDoug and Jean Hauser to get the skinny on theirdigital transformation and how it’s benefited their business.

SR: What first made you decide to design a newwebsite and how does it differ from your old one?

CH: We wanted a fresh and innovative web site thatwould let our customers understand more aboutwho The Color House is versus what The ColorHouse sells, whileattracting a youngerclientele. Previouslywe used amanufacturerprovided host sitebut our goal is reallyto brand ColorHouse and connectwith the localcommunity. Weweren’t able to dothat with the formatof the old site.

What was yourprocess fordesigning the newwebsite? Did youhave certainattributes in mindwhen developing it?

We interviewednumerous web designers before settling on the onewe felt would be the best for us. We spent a lot oftime looking at all sorts of web sites, not only paintand design related, to get ideas of how we wantedours to look. It was important to us that our site wasuser friendly but also informative and edgy.

How did you decide on adding a designconsultation appointment sign up? What successhave you seen from this feature so far?

When reviewing other sites we noticed that they hadthe design appointment sign up as a feature. It hasbeen very successful for us! We are still working outsome of the kinks but it allows you to immediatelycontact customers who are interested in our services.

What made you decide to add a news board? Whatkind of news do you usually feature on this forumand do you think it benefits users?

We use our news board for our blog and also to postany prevalent information on paint and design. We

have been getting a lot of positive feedback soapparently people are reading and benefiting from it!We plan to create “How-To” videos and post themhere in the future as well.

In reference to your team page, do you think addingprofiles about your employees benefits first timecustomers visiting the store?

Our team page is one of our favorite pages. I think itpersonalizes The Color House to our customers andalso puts a face to a name when either first timecustomers visit our stores or someone calls onthe telephone.

You have integrated linksto your Facebook, Twitter,Pinterest and other socialmedia pages directly intoyour site. Have you seenan increase in site visitorssince adding these links?

Our website is still veryfresh and we are currentlyworking on making oursocial media more effectivefor us, so we can’t saydefinitively that increases insite traffic are due to that.

Overall what success haveyou seen with the newwebsite?

We have seen animpressive leap in trafficsince we launched our newwebsite. Aside from all of

the online appointments we are receiving, the overallfoot traffic in our stores has greatly increased.

How important do you feel having a companywebsite is to a business?

In this day and age is it vital to have a companywebsite.

Do you have any advice to member companies whodo not yet have a company website and areinterested in starting this endeavor?

I think it is important to do your research and takeyour time when launching a new website. It took usa full year before we were ready to go live.

With that, we’re sure Color House’s efforts to builda larger digital presence will continue to pay dividends in the long run. Be sure to visitwww.thecolorhouse.com and see for yourself someof the features and tools Color House has integratedinto their new website.

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The Color House - Growing Their Online Presence

Page 4: Scouting Report - May/June 2014

Reasons Why Your Store Should BlogYou may have heard the word "blog" thrown aroundhere and there in meetings and on the Internet.You've no doubt heard that your business shouldhave one of these blogs and that it's very important.It's understood that a blog is a valuable tool for yourbusiness, but is it powerful enough to be worth yourtime and effort?

The Stats on Blogging

According to website Socialmediatoday.com, thereare a number of stats that support the notion thatblogging is good for your business:

• 77% of internet users (that’s everyone) read blogs.

• 53% of blog readers are age 21 – 35-year olds. A much sought after demographic in any industry.

• Small businesses with blogs generate 126% more leads.

• Interesting content is one of the top 3 reasons thatpeople follow a brand on social media.

• 97% of companies that blog have 97% moreinbound links.

• Websites with blogs have 434% more indexed pages.

• Websites with blogs have 97% more indexed links.

• 61% of US consumers have made a purchase based on a blog post.

• 90% of consumers find customer content useful.

• 82% enjoy reading relevant content from brands.

• 70% of consumers learn about a company through articles rather than ads.

As you can see from the above there are some verycompelling stats that may help you decide if it’sworth your time and energy. If you decide it issomething you want to explore and learn moreabout, here is the what, why, and how of bloggingfor your business.

What is a blog?

A blog is short for weblog. AKA a blog is an onlineplatform for sharing information and supporting yourbusiness. The person who writes to the blog (you!),is called a blogger. Your role as blogger is to addcontent known as "post", to the blog. Simply put, ablog is a place for your company to shareinformation and expertise!

How do I set up a blog?

Setting up a blog with Wordpress does not take along time. Fill in the basics, and customize later. Ifyou need step-by-step directions on how to set up aWordPress account there's a link listed below.

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What is blogging?

Blogging means to give your company a voice. Ablog is a place to talk about new products, orservices, discuss timely topics or market trends, andshare expert advice. This is where you can let yourbrand’s personality shine. Blogging is meant toshow your audience what you're all about!

The ALLPRO® blog provides content for membersto customize and use on their own blogs. Check outThe Color House and see how they personalized apost on Window Treatments for the Nursery withquotes from their designers. Blog content shouldfeature tutorials, tricks and tips of the trade, andvideo. One helpful hint - don't make every blog postabout a sale or promotion happening in your store.In real life, would you want to spend your daytalking to someone who constantly bragged aboutthemselves? Nope, didn't think so!

Why is it important to my business?

Aside from the stats already mentioned, a bloggives you a greater online presence and allows youto share valuable insight and information about yourbusiness. You are establishing yourself as a localexpert in your field and a trusted source for yourcustomers. Think about it this way; your blog isyour PR, customer service, and newsletter all rolledinto one!

What a blog does is create those importantrelationships that build loyalty and ultimately lead tosales. You'll become a reliable resource forinformation on your industry and be top-of-mind forcustomers when they are ready to buy.

According to Al Kinnear of Bigeye Productions oneof the most valuable aspects of a blog is that “it is a

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Page 5: Scouting Report - May/June 2014

Jotun supplies coatings for plants, terminals, oil & gas facilities, pipelines, and tank farms, and industrial applications.

• In 1920, Jotun's founder, Odd Gleditsch Sr., opened a combined color/ship supply store in Sandefjord, Norway. It was a good time for the whaling industry, and Gleditsch Sr. soon worked his way into the business of supplier to the whaling fleets in Sandefjord,Tønsberg, and Larvik. As sales to the whaling fleets increased, Gleditsch Sr. saw the potential in manufacturing the paint himself. On 12th March 1926,Gleditsch Sr. invited shareholders to subscribe to the new company and Jotun Kemiske Fabrik A/S was founded, with Odd Gleditsch Sr. as managing director.The company has since grown into one of the biggest international paint companies in the world. Today the Jotun Group has total sales of (US) 952 million and operates 71 companies in 45 countries, and 36 production facilities in 19 countries. The company is represented in more than 90 countries around the world.

Plutonium Paint

• Founded: 2011

• Location: Southfield, Michigan

• Telephone: (248) 827-1451

• Website: www.plutoniumpaint.com

• Current President: Barry Fleischer

• ALLPRO Contact(s): Barry Fleischer, William Korman and Matt Kallie

• # Full-Time Employees: 8

• Plutonium Paint manufactures the most premium aerosol paint made in the US. We work closely with our dealers on developing new vertical markets to sell to. We primarily use social media and magazine ads to create product awareness. Our primary customers are arts, arts & crafts, do-it-yourself, movie & stagedesign, manufacturing, contractors, and interiordecorators.

• Started in Detroit in 2011 and went to market at that time selling primarily to the art market. In 2012 webegan selling to paint and hardware stores and are happy to have been approved as an ALLPRO supplier partner in 2013.

Epoxi-Tech, Inc.

• Founded: 1994

• Location: Madison Heights, Michigan

• Telephone: (586) 530-6105

• Website: www.epoxi-tech.com

• Current President: Simon Palushaj

• ALLPRO Contacts: Jim Hay and Kerry Buffington

• Epoxi-Tech, Inc. is a manufacturer of innovative products with an emphasis on floor coatings. Epoxi-Tech, Inc. manufactures epoxy floor coatings, decorative flakes, patching materials, decorative concrete products, anti-graffiti coatings andcommercial roof coatings.

• Epoxi-Tech was founded in 1994. Since that time,Epoxi-Tech, Inc. has pioneered a wide array of patented products that include: Epoxy coatings and patching material, diamond grinders, concrete polishing tools, decorative flakes and commercial roof coatings. We remain on the cutting gedge of developing products for the industry. We also distribute products from our related companies;Diamabrush, Granx and Poly-All Roof Coatings.

Jotun Paints, Inc.

• Founded: 1920

• Location: Sandefjord, Norway

• Telephone: (206) 718-3977

• Website: www.jotun.com

• Current President: Bjorn Abraham Bache, President,Jotun Paints, USA

• ALLPRO Contacts: Katrina Johnson, Dave Evans, and Ron Wise

• # Full-Time Employees: 8740 (worldwide)

• At Jotun, we protect property by providing solutions that not only enhance the appearance of your asset but also ensures long-lasting durability. Our range of paints and coatings are inspired by technology, designed to meet the latest industry standards and developed with sustainability in mind. Our specialties include coatings for corrosion and fouling protection ofmetal substrates and passive fire protection of steel.

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ALLPRO®

Company ProfilesALLPRO has had the good fortune to add the highest qualitycompanies in the industry to the group. We are pleased toprofile some of our member companies and supplier partners.

Page 6: Scouting Report - May/June 2014

FYIMarch/April RetractionIn the last issue of the Scouting Report we ran a member profile on Shelby Paint and Wallcovering. Thearticle, titled “Vision Statement,” included an excerpt from Shelby Paint’s vision statement, which articulatedan image of where the company would like to be by 2016. This vision included the goal of having salesagreements in place with two fellow members – Teknicolors, Inc. and Northeastern Paint Supply. While theexcerpt was not intended to convey conditions as they exist today but rather as Shelby Paint would like themto be in the years ahead, it nonetheless created confusion and disorder among those companies involved. Inan effort to mitigate the confusion we issued a retraction via e-mail to all of our members and suppliers butwould like to reiterate that retraction here. To that end, neither Teknicolors, Inc. nor Northeastern Paint Supplyhas a sales agreement in place with Shelby Paint. We apologize for the confusion and sincerely hope it wasshort lived by all involved. As an organization we will certainly be more stringent in our editing process toensure this type of error doesn’t occur again.

Member HappeningsCongratulations to ALLPRO members Clement’s Paint, Mallory Paint Store, Powell Paint Center, Reno PaintMart and Spectrum Paint East. Each company has opened a new store location within the past few months.

Congratulations to ALLPRO member Ricciardi Brothers who recently acquired Old City Paints, adding ninelocations to their total number of stores. Also, Miller Paint recently acquired Denfeld Paints, adding twolocations to their total number of stores. And finally, Spectrum Paint has acquired the assets of allPROfessional Paint and Coatings stores located in the greater Kansas City area, Lawrence, Kansas, as well asOmaha and Lincoln, Nebraska. The new stores will operate as Spectrum Paint North, LLC.

We’d like to welcome two new members to the ALLPRO family of retailers – Gainesville Paint of Gainesville,GA and Joseph’s Paint & Wallpaper of Alexandria, LA. Gainesville Paint operates one location and has beenin business since 1958. Joseph’s Paint & Wallpaper also operates a single location and has been in businesssince 1932.

ALLPRO StaffWe knew this day would eventually come but it is no less easy to report that ALLPRO’s Vice President ofBusiness Development and industry icon, Vic Meier, has officially announced his retirement date. Vic, who isa close friend and colleague to just about everyone in our industry, will be retiring at the end of the 2014Spring Show in Orlando, FL. While we will certainly address this in greater detail in the months ahead, wewanted to provide a brief notice to each of our readers well in advance of Vic’s actual retirement.

Furthermore, we’d like to advise you that our Marketing Coordinator, Kelley Anderson, recently moved on toanother job opportunity here in the local Tampa area. Kelley was only with ALLPRO for a short period butduring that time got to know many of our members and supplier partners alike and contributed to theorganization in a positive way. We wish her success in this new endeavor. However, since time and the tideswait for no man, we have hired a new Marketing Coordinator to fill the position. Look for an officialintroduction and short bio on our new Coordinator in the next issue of the Scouting Report.

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2014 Stockholder MeetingThe Westin Michigan Ave.Chicago, IL, Oct 23 – 25th

2015 Spring Show & Sales MeetingRosen Shingle Creek

Orlando, FL, Mar 18th – 22nd

2015 Stockholder MeetingGrand Hyatt Atlanta in Buckhead

Atlanta, GA, Nov 4th – 7th

2016 Spring Show & Sales MeetingJW Marriott Desert Springs Resort & Spa

Palm Desert, CA, Mar 16th – 20th

2016 Stockholder MeetingThe Westin Michigan Ave.Chicago, IL, Nov 3rd – 6th

2017 Spring Show & Sales MeetingThe Westin Diplomat

Hollywood, FL, Mar 8th – 12th

IMPORTANT DATES TO REMEMBER …

Page 7: Scouting Report - May/June 2014

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asked time and time again from yourcustomers? Additionally, the suppliers youroutinely deal with can contribute as well.

Lastly, the new ALLPRO blog was setupprimarily for ALLPRO members to use as aresource for blogging. Content will be addedon our blog weekly and you can use thatcontent in your own blog. It’s simply a matterof copy and pasting the content. Granted, notall of the posts will be usable depending onyour store format and focus, so it’s a good ideato have the other sources mentioned above tohelp generate content.

What is the return on investment?

The value of blogging isn't measurable withdollar signs. Like we said earlier, blogging is allabout building and maintaining relationships.It's about becoming an invaluable resource toyour customers so that they turn to you whenin need.

Blogging is also about being found online. If acustomer can't find you, they won't purchasefrom you! Over time your blog becomes alibrary of information - information that you can use on Twitter, Facebook, Pinterest, oreven articles for a local publication. Now thatyou're an expert on blogging, give seriousconsideration to starting your own company blog.

To sign up for the ALLPRO® blog visit us atwww.allprocorp.wordpress.org and click the“Follow” button. If there are topics you'd like tosee featured on the blog please send yoursuggestions to Marsha at Hirshfield's. We're alsolooking for blog posts and videos fromALLPRO® supplier partners. We really hope youtake advantage of the ALLPRO® blog and use itto promote your business.

If you need more comprehensive help getting ablog up and running contact Al Kinnear atBigeye Productions. Bigeye specializes indeveloping and hosting professional and costeffective websites for retailers in the paint &decorating products industry. Bigeye can setupa blog for your company for as little as $400.

Links:

How to start a blog -http://www.wikihow.com/Start-a-Blog

[email protected] or phone (612) 374-0203

simple way to create and maintain dynamic contenton your website. You can integrate the blog rightinto to your front page and as you update your blog,viola, you have an update on your site – an updatesthat drive traffic to your site.”

Additionally, “Blog users will often sign up to receiveall the latest blog articles, which provides for anothereasy way to stay in touch directly with your retailclient base.”

How much time and energy does it take?

It's easy to neglect your blog. It's easy to justifyskipping a week of posts, because other "moreimportant" tasks came up. Don't let that happen!Blogging is an important task! Make a monthlycalendar with timely topics that you think yourcustomers will be interested in. The key is to postwith consistency. Begin with a minimum of one blogpost a week. If possible, try to publish it on the same day each week so customers know when to expect it.

Once you've established your blog and a voice for it,see if your employees are interested in adding theirinput to it!

Guest blog posts help you avoid burnout, addhelpful perspectives, and showcases the talent youhave on staff.

Along those lines, Al recommends finding anindividual or individuals in the store system that areexcited about blogging and who can lead yourblogging efforts. He says, “Generally this comes inthe form of folks in their 20’s or 30’s. Once you findthis person, empower them to “own” the blog andyou will find that they bring dynamic content to thetable on a regular basis.”

Ideas for blog posts can also come from yourcustomers. What questions do your sales people get

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Page 8: Scouting Report - May/June 2014

News and ViewsBetter Times AheadA recent issue of The Kiplinger Letter alluded to a March peak inconsumer confidence levels as a sign that consumers are “warmingup to the idea of better times ahead.” Specifically, Kiplinger reportedthat consumer confidence hit a six year high in March and was asignal of rising optimism that would further spur the economyalong…once the weather warms up. Kiplinger projects secondquarter GDP growth should be in the 2.5% to 3% range. However,the report also cautioned that retailers should not count on a bigjump in sales from federal tax refunds. Despite the fact that refundsare nearly 5% higher than last year, they are only averaging about$3,300 per household. It’s expected that half of all Americans willput their refund into savings or use it to pay off credit cards or applyit to everyday expenses. Furthermore, those who do plan to spendthe money will do so on things like automobiles, electronics, furnitureor other household goods.

NAHB Confidence Holding Also SteadyAccording to the National Association of Home Builders (NAHB) Aprilreport, builder confidence is remaining steady. The NAHB conducts amonthly survey of home builders to develop the Housing MarketIndex (HMI), which gauges builder perceptions of single family homesales and sales expectations for the next six months. According tothe HMI, current sales conditions held steady at 51 (any numberabove 50 indicates that more builders view conditions as good ratherthan poor). The component of the HMI measuring expectations forfuture sales rose four points in April to 57. According to NAHBChairman Kevin Kelley, “Builder confidence has been in a holdingpattern the last three months. Looking ahead as the spring seasongets into full swing and demand increases, builders are expectingsales prospects to improve in the months ahead.”

More Jobs but Smaller Pay HikesThe April 4th edition of the Kiplinger Letter cited March’s job growthof 192,000 as a positive sign for the rest of the year. Specifically,Kiplinger expects an average monthly gain in job growth of 200,000for the year. While that’s enough to match normal growth in thelabor force it’s unfortunately not enough to soak up millions of long-term jobless and part-timers who can’t find work. Additionally,according to Kiplinger, those in the work force will only see a smallincrease in wages of .25% this year. Adjust for inflation and thatequates to a nominal .5%. With U.S. industries operating at 78.4%compared with the 80.1% historical average there’s not enoughpressure in the job markets to push wages much higher. Kiplingeranticipates it’ll be mid-2015 before we see more vigorous hikes in wages. Still, .5% is better than the twoconsecutive years of declines in real wages seen in 2011 and 2012 and may help bolster consumerspending a bit.

Housing StatsAccording to the Census Bureau and the Department of Housing and Urban Development privately –ownedhousing starts in March were at a seasonally adjusted annual rate of 946,000. This is 2.8% above therevised February estimate of 920,000 but 5.9% below the March 2013 rate of 1,005,000. Single familyhousing starts in March were at a rate of 635,000, which is 6% above the revised February figure of599,000. Building permits issued on privately-owned housing units in March were at a seasonally adjustedannual rate of 990,000, which is 2.4% below the revised February rate of 1,014,000 but is 11.2% above theMarch 2013 estimate of 890,000.

Editor/ProductionScott Morath

ProofersJulia ThomasLori HeartsfieldSusan Nichols

Contributing WritersScott Morath, - ALLPRO

Matt Docherty, - HERO Products

ALLPRO® PresidentMichael Gleason

Exec. Vice PresidentJoe Poliseo

SUGGESTIONS WELCOMEYour suggestions, ideas, articles and

comments are encouraged.

The Scouting Report is an important communications media for ALLPRO®.

Mail all correspondence to:The Scouting Reportc /o ALLPRO® Corporation

4946 Joanne Kearney Blvd.

Tampa, FL 33619 • (813) 628-4800

Website: www.allprocorp.com

The Scouting Report is a bimonthly publicationof the ALLPRO® Corporation.

Printed on recycled paper