Hearthlist Digest #329 - Friday, August 13, 1999 Article(s) by "Craig Issod" <[email protected]> HPA Retail Sales Training Program Videotapes by "Sue Kalish" <[email protected]>
(back) Subject: Article(s) From: Craig Issod <[email protected]> Date: Thu, 12 Aug 1999 22:35:41 -0500 I'm writing some articles for a newsletter...since nothing is going on here, I'll post them here. Those that are not blessed (wired) will not see this article for weeks! Opinions welcome! The Internet is here... and it WILL effect your business Some love it, some hate it, some ignore it...but no one can doubt that the internet is already having a profound impact on the way people do business. Information and the internet move at the speed of light, creating unprecedented change in business and marketing infrastructure. Some examples: 1. Borders Books, the so-called "Category Killer" superstore Book Seller is worth (on the Stock Market) about 1 Billion dollars. Amazon.com, an online book seller with no retail outlets, is now worth well over 15 billion dollars. Do you think Borders saw Amazon coming? Of course not! 2. Etoys, an online toy retailer, is valued at almost 4 billion dollars...and did not exist even one year ago. 3. Forty percent of consumers who recently bought a car or truck used the Internet to help them shop, up from 25 percent a year ago, according to initial results of a J.D. Power and Associates survey. The big questions for many manufacturers are: 1. What effect these trends will have on the hearth business? 2. How can a hearth related business benefit from the net? The answer to #1 is easy. The net WILL have a large impact on ALL consumer products, especially those that require extensive consumer research. Many hearth products fit this mold. Here's an example: Old Days (pre-net) - Joe Customer enters local hearth shop and purchases stove from dealers stock. Customer purchases insulated chimney (house-brand) and installs stove by himself. Customer calls and visits retailer often with his questions about stove problems and/or operation. Today ( post-net) - Joe Customer researches on the internet (at HearthNet, Manufacturers & Retailers sites) and shops only in stores that have the brands he has researched...he may even contact the stores by phone/email since he already is fairly sure of exactly the model he wants. He also finds out that some brands of insulated chimney have better features than others, so Joe requests a brand by name. Since the retailer with the stove may not have this brand of chimney, Joe splits his money (and loyalty) between two or more retailers or online sellers. During and after installation, Joe gets many of his technical questions answered by online resources provided by the product manufacturer and/or hearth directories (i.e. HearthNet). Future (2-5+ years) - Joe Customer researches on the internet (at HearthNet and Manufacturers sites. He views full-motion video of the stoves and fireplaces, along with 3D views, audio sales pitches, pricing, heat calculations, etc. He then sends a "shopbot" (shopping robot) out on the net to fetch the best price and terms. The robot finds a great deal at an online retailer 550 miles away, however the robot also sent out a bid for the best freight bid and was able to quote Joe $50.00 to deliver the stove and chimney to his home. The online retailer was also able to (automatically) suggest an entire range of accessories and supplies, everything from tool sets to fire starters. The retailer offers package incentives for Joe to bundle these with his stove and chimney, so Joe spends 20% more on his total order. Joe purchases with his credit card or online "wallet" (cybercash) and the stove is shipped within 24 hours. This entire transaction occurs without 1 hour and with no phone calls or email. OK, so it's clearly evident that certain businesses will benefit from the growth of the net, but will yours? Ask yourself these questions: 1. Does your company have a short term and long term strategic plan regarding the internet? 2. Has your company allocated a reasonable percentage of our marketing dollars and programs toward the internet? For most hearth related companies, this should range from 20% to 50%+ of marketing dollars. 3. Does your company have both employees in sales, marketing and IS that understand the internet? Does your company have an outside internet consultant? 4. Do you have an internet site? Is the site up to date and does it offer customers ALL the information about your product and where to buy it? 5. Are your products AND internet site unique or clearly better than the competition? For many, there are other questions: 1. Should we (or our dealers) sell our products online? or create a private brand to sell online? 2. Should we use the internet to communicate with our suppliers, vendors and customers? How much hearth business will be done online? The billion dollar question...the answer can only be guessed - here's my take: The hearth business in the US and Canada is in excess of 1 billion dollars per year, so we'll use that as a figure. I estimate that within 3-5 years: 1. 60%+ (600 million dollars worth) of these purchases will be researched on the internet. 2. 15-25% (200 million dollars worth) of these products will actually be purchased on the internet. While some things will change, much will also remain the same. Hearth Manufacturers AND retailers who provide personal service, valuable knowledge, expert installation and quality products will prosper. Take some time SOON to evaluate your companys internet strategy - it'll pay off big dividends in the future. ------------------------------------------------------ Craig Issod HearthNet at http://www.hearth.com [email protected] Everything your Hearth Desires ------------------------------------------------------ ------------------------------------------------------
(back) Subject: HPA Retail Sales Training Program Videotapes From: Sue Kalish <[email protected]> Date: Fri, 13 Aug 1999 10:02:30 -0500 HPA has contacted The Friedman Group (who owns the copyright to the program jointly with HPA) to inquire how to obtain additional copies of the video portion of the program. The training program is packaged in sets of videos and workbooks, so HPA does not have additional sets of tapes to sell. HPA has a list of companies who purchased the program in case someone would like to contact another dealer in their area to borrow the tapes. Other suggestions are also welcome. The HPA Retail Sales Training Program is an excellent one, customized for hearth dealers who always need capable salespersons on the showroom floor. With the busy season coming (or is it already here?) every hearth dealer needs a sharp sales staff. Please call me if you have any questions, 703-522-0086. Sue Kalish, HPA