Newsleak November 2004 No Pics

Transcription

Chip Conley to Keynote DPHA Seventh
Annual Conference
Volume 7 No. 1
February 2008
1
Chip Conley Keynotes DPHA
2008 Conference
DPHA KBIS Breakfast
3-4
President’s Message
Board and Sponsors
7
It’s the Economy, Stupid!
8
DPHA Sponsorship
Opportunities
12
Do You Get the Message?
October 24-26, at the J.W. Marriott Hotel at Desert
Ridge, Phoenix, AZ
Chip Conley is the Chief Executive Officer
of Joie de Vivre Hospitality that owns and
manages more than 40 boutique hotels in
Northern California. Conley and his company rode the wave of the dotcom explosion to become one of the three most
prominent boutique hoteliers in the United
States. USA Today profiled Conley along
with Julia Roberts and Michael Eisner as
one of “fourteen Americans to watch in
2001.” Conley muses in his best selling
book, Peak: How Great Companies Get
Their Mojo from Maslow, “Little did I
know that the real thing to ‘watch’ in
2001 would be that I didn’t jump off the
Golden Gate Bridge.”
15
continued on page 5
DPHA 2008 Awards Program
16-17
Data Standard Takes a
Quantum Leap Forward
DPHA Revises Faucet Manual
20
Award Profile: Miller’s Fine
Decorative Hardware and
Plumbing
26
Gold Circle Profile:
KWC America
28
Newsleak Goes Color
30-31
New Members
The Upside of a Down
Economy
ISH Wish
33
Greenwashing
The dotcom
industry
imploded in
2001 sending
Conley from a
genius to being
the most vulnerable hotelier
in America.
Seemingly
overnight
Conley’s assets
became liabilities. He was unsure if his
business would survive. Depressed and
worried, Conley left his office one day in
the middle of the afternoon and wandered
to a nearby bookstore where he browsed
Michael Rockstroh to Keynote KBIS
Breakfast
Competitive Threats and Opportunities the Focus
Michael Rockstroh, founder of the RB
Strategy Group, will present the keynote
address at the 2008 DPHA KBIS
Breakfast, Saturday, April 12, 2008 at the
Hyatt Regency at McCormick Place,
Chicago, IL, from 7:30am-10:00am.
Rockstroh will provide an intelligence
report on the decorative plumbing and
hardware industry to help DPHA members better understand competitive threats
and actions that they can take to respond
to them. He will offer a review on where
the industry is headed, mapping risks that
the independent dealer and their suppliers
face and explaining where the windows
of opportunity lie. He will relate strategies that dealers, manufacturers and representatives can employ to improve their
competitive position and describe how to
sustain competitive advantages that lead
to continued growth and profitability.
Additionally, he will describe how to
determine who your true competitors are,
their business models and how to identify
their strengths, weaknesses, opportunities
and threats. He also will relate best practices of related industries that cater to the
luxury homeowners by presenting case
studies of successes.
continued on page 7
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16760 Stagg Street, Suite 201 Van Nuys, CA 91406 t: 818.304.7300 f: 818.304.7301 www.acsspecs.com
President’s
Message
DPHA President Debbie Miller
DPHA’s mission is to provide members with competitive advantages.
By the end of the first quarter, the
Technology Committee will help
assure that our mission is accomplished. Under the astute direction
of Committee Chair David
Goldberg (Union Hardware), DPHA
has been working with Eclipse,
which has agreed to incorporate the
DPHA Data Standard into their
software. Those of you who know
me realize that I am not the most
technologically oriented person.
However, I do understand the value
of time. I can place a dollar and
cents figure on accuracy. By the end
of the first quarter, DPHA members
that use Eclipse will receive a competitive advantage. When manufacturers that comply with the DPHA
Data Standard change their price
lists, Eclipse users’ systems will
automatically be updated. No
longer will staff have to upload new
pricing information. It will be performed seamlessly without the need
for human involvement. This
enables DPHA members to issue
with absolute confidence price
quotes that are accurate. The
DPHA Data Standard will start to
save DPHA members hundreds if
not thousands of hours of time
preparing proposals. DPHA memFebruary 1, 2008
Providing Competitive
Advantages
bers can use the Data Standard to
prepare detailed responses to
requests for proposal that include
product pictures, specifications and
installation instructions. Eclipse is
only the first step. Soon other software manufacturers will be on
board, providing additional benefits
to our members and creating new
competitive advantages. The
February Question of the Month
asks what can be done to make it
easier to sell and specify projects.
One answer is to comply with the
Data Standard. Those that don’t
will soon find themselves at a competitive disadvantage.
The DPHA Membership Committee
has had a busy start to 2008. The
Committee chaired by Debby Stehr
(Stehr Enterprises) and David
Crossley (Duravit) is in the midst of
the 2008 retention campaign and
has started planning the 2008 slate
of Regional Meetings. Regional
Meetings serve a dual purpose.
They are intended to introduce
DPHA to prospective members and
illustrate firsthand the community
that DPHA has created. They also
provide opportunities for DPHA
members to expose more of their
staff to the programs and benefits
that DPHA membership affords.
The Membership Committee also is
responsible for DPHA’s KBIS
Breakfast. Last year, more than 500
members attended and this year we
expect a larger turnout. Featured
speaker Michael Rockstroh will
provide an overview of the competitive challenges confronting independent dealers and manufacturers and
representatives serving the independent channel and actions that they
can take to effectively address them.
The breakfast is only one aspect of
DPHA’s involvement at KBIS. We
will again be exhibiting to make our
presence felt, showcasing our education program, message brochures,
annual conference, regional meetings, technology tools and other
DPHA membership benefits.
The KBIS Breakfast Program is a
prelude to the Fall Conference. The
Program Committee has established
Trends as the conference theme.
Programs on the latest trends in
advertising, branding, sales techniques and motivating staff will be
featured. Our hat is off to Program
Committee co-chairs Vicki Findley
(Miller’s Fine Decorative Hardware
& Plumbing) and Steve Weinberg
(The Glassmith Shop).
Education Committee Chair Faye
Norton (Designer Hardware by
Faye) continues to deliver new products that help members train their
staffs and explain to clients and customers reasons why DPHA member
showrooms should be the destination of choice for decorative plumbing and hardware. DPHA’s message
brochure program is profiled in this
issue of Newsleak. Enclosed with
this issue (to dealers), are copies of
all of the message brochures. The
Education Committee also is to be
commended for its recent update of
the faucet training manual. The
DPHA Education Program represents the industry’s most comprehensive training tool to familiarize
showroom staff, customer service
representatives and others new to
the industry with the technical,
functional and performance
continued on page 24
NEWSLEAK 3
DPHA Board of Directors
President: Debbie Miller, Millers
Decorative Plumbing & Hardware
(Dania, FL)
President-Elect: Jonathan Wood, Brasstech
(Santa Ana, CA)
Secretary: Steve Weinberg, The Glassmith
Shop (Summit, NJ)
Treasurer: Barry Goldberg, Union Hardware
(Bethesda, MD)
Immediate Past President: Jeff Robboy, Baci
by Remcraft (Opa-Locka, FL)
Directors
Melissa Allen (Cobblestone Court)
Jim Babbitt (Hot2Cold)
Larry Brodey (JACLO Industries)
Jeff Burton (The Bath and Beyond)
Chuck Butch (Altmans)
Tony Carter (Carter Hardware, Inc.)
*David Crossley (Duravit USA)
Caspar DeJong (Legacy Brass, Inc.)
Jack Fase (Alno, Inc.)
Bill Fiddler (Fiddler’s, Inc.)
Kimberly Freschette (BainUltra)
Jamie Gregg (Colonial Bronze)
Marilyn Hermance
(Westheimer Plumbing & Hardware)
Dick Isaacs (Mariner America)
Sarah Jenkinson (Barber Wilsons & Co./
Black Country Heritage)
Larry Kaluzna (Waterware)
Mary Labowitz (Premier Marketing)
*Bob Lando (Community Home Supply)
Joe Long (J. Long & Associates)
Tim Murphy (Klaff’s)
Tony Musso (Italbrass)
Faye Norton (Designer Hardware by Faye)
Ron Raffel (Raffel Sales)
Jim Rennolds (Neptune International)
Mark Rohl (ROHL, LLC)
Jody Rosenberg (Sonia America)
Al Rykus (Watermark Designs)
Steve Shedden (Shedden Sales Company)
*Debby Stehr (Stehr Enterprises)
Stuart Stern (S&H Hardware of NJ)
Jim Tomafsky
(Mountain Plumbing Products)
* Executive Committee Members
A Publication of the Decorative
Plumbing & Hardware Association
Volume 7 No. 1
DPHA’s mission is to provide competitive advantages to
manufacturers, representative agencies, and independent
dealers of decorative plumbing and hardware.
Gold Circle Sponsors
Alno Inc.
Aquabrass International, Inc.
Baci by Remcraft
BainUltra
Brasstech
Colonial Bronze
de la Frontera
Dornbracht, Americas
Forte Buying Group
Ginger Company
Graff
Hot2Cold
Jado
JACLO Industries
Kallista
KWC America, Inc.
Lacava Designs
Legacy Brass
Linkasink
Linnea, LLC
Methven USA, Inc.
Mountain Plumbing
Products
Native Trails
Neptune International
Omnia Industries, Inc.
Porcher
ROHL, LLC
Sonia America
Toto USA, Inc.
Victoria & Albert Bath
Von Morris Corp.
Patrons
American Faucets &
Coatings Corporation
Blanco America
Julien, Inc.
Kimball & Young
Laufen Bathrooms
Partners
Barber Wilsons &
Co./Black Country
Heritage
Bates & Bates
Berenson/R.
Christensen
Hardware
Danze Faucets
Brass Elegans
Forms + Fixtures
Sponsors
Jensen Industries
Stabeck Sales &
Marketing
Water Decor
Newsleak is published 8 times a year by DPHA, 7900 Wisconsin
Avenue, Suite 305, Bethesda, MD 20814; 1-888-411-8477; 301907-9326 (f); [email protected]; www.dpha.net.
February 1, 2008
NEWSLEAK 4
Chip Conley continued from page 1
the racks of the psychology section. There he became reacquainted with the works of Abraham
Maslow. He delved into Maslow’s
Hierarchy of Needs and concluded
that if he could apply Maslow’s
principles to his business operations, not only would Joie de Vivre
survive, but is would thrive.
Conley writes, “Rather than purely
living in trench warfare for half a
decade, we decided to focus on the
higher needs of our employees,
customers and investors. Creating
peak experiences for these three
constituencies helped us to create
peak performance for my company. And almost exactly seven
years later, our annual revenues
are triple what they were back
then.”
Maslow’s Hierarchy of Needs
claims that all individuals have
basic survival needs such as food,
water, sleep, and safety. As those
needs are satisfied, individuals
focus on social/belonging needs or
esteem needs or the way in which
individuals connect with one
another. The highest rung on
Maslow’s pyramid is self-actualization that allows individuals to
have continuous peak experiences
in their lives. Conley learned from
Maslow that great leaders need to
understand what motivates
employees and customers. During
the worst downturn in his company’s history, Conley discovered
that employees and customers have
a hierarchy of needs. Conley
claims that unfortunately most
companies focus on base survival
needs and lose track of the higher
needs of employees and customers.
Conley will explain his proven
techniques for motivating employees and customers and how to use
those techniques to foster better
relationships and build an enduring and profitable corporate culFebruary 1, 2008
ture. At Joie de Vivre, the theories
have worked. Employee turnover
at the hotel chain is half of industry average even though salaries
and benefits are comparable to
other chains.
Conley has created different
Maslowian pyramids for his
employees, customers and
investors. The employee pyramid
works as follows. The lowest rung
is money (survival). The second
rung is recognition (success) and
the third rung is transformation.
Conley acknowledges that people
come to work for a paycheck and
feel good about their jobs when
they are recognized for their contributions. However, when
employees view their positions as a
way to express their own values
because they align themselves with
the company’s mission, it can create a meaningful transformation in
the employee’s life. In other words,
the paycheck provides motivation,
recognition creates loyalty and
meaning sparks inspiration. The
hospitality industry has a number
of relatively low-paying jobs. To
exemplify his approach, Conley
emphasizes the impact that each
employee makes on the guest expe-
rience rather than tasks such as
making beds and cleaning toilets.
Conley understands the important
role that employees play. They are
his first priority because if the
employees are not happy they cannot make customers happy. In the
hospitality industry, most of
Conley’s competitors spend more
money on the physical appearance
of their properties than they do on
training staff to deliver exceptional
performance. The number one
reason why a guest would return
to a hotel is the service that they
received during their stay. The
number one reason a customer
would return to a showroom or
recommend a showroom to a
friend or peer is the quality of service that they received.
The same approach applied to customers begins with meeting expectations that create satisfaction, but
that is not enough. The second
level of Conley’s customer pyramid
finds that customers make a commitment when both their expectations and desires are met. The top
rung of the customer pyramid is
when businesses meet their unrecognized needs.
To achieve evangelic loyalty
among clientele, businesses need to
add value and experiences that
customers cannot obtain elsewhere. Doing so elevates the customer to the third rung of the customer pyramid that Conley terms
“unrecognized needs.” In the decorative plumbing and hardware
industry, meeting unrecognized
needs may be easier than in other
industries because many customers
usually don’t know what their
needs are. Meeting unrecognized
needs may include training
installers about the nuances of a
particular product at the start of a
multifamily or hospitality project.
continued on page 6
NEWSLEAK 5
Chip Conley continued from page 5
Conley started Joie de Vivre Hospitality with virtually
Meeting unrecognized needs may include labeling
each component to identify the location where it is to no industry experience. The company now comprises
more than 40 award-winning properties, in excess of
be installed. It may also include using the DPHA
2,500 employees and annual revenues of nearly $200
Door Hardware Take Off to help assure proper
million. Each property is designed to produce what
placement of new hardware. Conley argues that
Conley terms,
“rather than fight“identity refreshing in the trenches
“Rather than fighting in the trenches every day and
ment” for guests.
every day and just
just dropping prices to get sales traction, consider
Inspiration is
dropping prices to
how you can appeal to the higher needs of your
gleaned from
get sales traction,
popular magaconsider how you
prospective customers…In a time when everything
zines such as
can appeal to the
has become commoditized, differentiating yourself
Rolling Stone,
higher needs of
and your product is the sign of a peak performer.”
The New York,
your prospective
Wired and
customers…In a
Dwell. Conley
time when everything has become commoditized, differentiating your- has been honored with numerous hospitality industry
awards. Most recently, the San Francisco Business
self and your product is the sign of a peak perTimes named him the Bay Area’s Most Innovative
former.”
CEO.
In the keynote address, Conley will describe his
approach and the results that he has enjoyed such as
higher customer retention rates than almost every
other hotel chain. On Friday, October 24, he will
conduct a workshop that teaches how to apply his
techniques to create peak experiences with your customers and employees.
February 1, 2008
NEWSLEAK 6
It’s the Economy, Stupid!
By Debby Stehr, Stehr Enterprises
James Carville’s prophetic insight that propelled Bill
Clinton to the presidency in 1992 has a familiar
ring. 2008 is shaping up to be a very interesting
year. Nationwide housing starts are at 20-year lows.
Recently, we have seen the stock market rise to
record highs and then in the last couple of months
plummet by hundreds of points at a time. The economic pundits refer to this as “market corrections.”
Banks and lending institutions have announced
record foreclosures and stricter lending policies,
making it extremely difficult and much more expensive to obtain a mortgage.
firm up their balance sheets. Depending on the
region of the country, the economic outlook is tenuous at best and recessionary at worst. The National
Association of Realtors announced that home prices
in Miami and Tampa have dipped by approximately
11.5%. Similar declines have occurred in several of
the hottest housing markets in the country. Home
prices have plummeted by 11.1% in San Diego,
10.7% in Las Vegas and 10.6% in Phoenix, according to the S&P/Case Shiller index. As of October,
home prices in 10 major metropolitan areas fell a
record 6.7%, reports The Wall Street Journal.
The subprime mortgage meltdown continues to
wreak havoc across all segments of the economy.
Citigroup, Morgan Stanley, Merrill Lynch, Bear
Stearns and many other of the leading institutional
investors and financiers have gone with hat in hand
to the Far East, Asia, and the Middle East to help
Normally, double-digit declines in home prices create
a buyers market, however there are no buyers.
Contributing to economic woes is the loss of consumer confidence and sky-high domestic manufaccontinued on page 9
KBIS Breakfast continued from page 1
The economy is changing. After a decade of explosive growth in the decorative plumbing and hardware industry, we have hit a soft spot. As a result,
there is a changing set of drivers from competitors.
Rockstroh will explain the realities that big box and
multibranch retailers face and what they mean to
independent showrooms and their suppliers.
Michael Rockstroh is an expert in strategic planning,
product marketing and process alignment with
extensive domestic and international experience in
the branded goods sector. He has assembled an
impressive record of performance helping companies
become market leaders. He also understands our
industry, having served as a consultant for at least
two DPHA members. His strategies also have been
used by leading national big box retailers that
include Sears, Best Buy and Circuit City, as well as
regional specialty and wholesale companies. He has
led major strategic branding initiatives for Bosch,
Siemens and Motorola. Prior to founding the RB
Strategy Group, Rockstroh was Senior Vice President
of marketing and sales for Bosch-Siemens
Corporation, where he led major strategic initiatives
both domestically and internationally.
February 1, 2008
In addition to the breakfast, DPHA will be exhibiting once again at KBIS (booth S1062). DPHA’s
Membership Committee has set several goals for our
KBIS participation. One is to recruit new members.
DPHA has become the largest decorative plumbing
and hardware association in the world, with nearly
500 members. Our second goal is to showcase the
products and services that DPHA offers and the benefits that DPHA has developed that provide competitive advantages to DPHA members. DPHA’s exhibit
will showcase the industry’s most comprehensive
education program, the industry’s only point of purchase consumer brochures that explain why the independent showroom must be the destination of choice
for decorative plumbing and hardware, and the technology tools that DPHA has developed that save
time and money.
The cost to attend the breakfast is $65 per person.
Reserve online at www.dpha.net.
NEWSLEAK 7
DPHA Sponsorship Opportunities
DPHA announced a menu of sponsorship opportunities available to showrooms, manufacturers and
representatives. Each level of sponsorship provides
different marketing benefits. However, the most
significant benefit that you receive when electing
to serve as a DPHA corporate sponsor is the statement you make to the industry.
Your sponsorship tells the industry that you
believe in DPHA's mission and programs. You are
not only talking the talk, you are walking the walk
to enhance professionalism and improve quality in
the decorative plumbing and hardware industry.
DPHA CORPORATE SPONSORSHIP
OPPORTUNITIES
DPHA CONFERENCE SPONSORSHIP
OPPORTUNITIES
GOLD CIRCLE ($3,500)
• Recognition as a corporate sponsor in each
Newsleak
• Recognition as a corporate sponsor on the
web site
• A plaque recognizing the firm as a corporate
sponsor for their office
• A corporate/product profile in Newsleak
• Marquis signage at DPHA events
• Recognition in each section of the DPHA
Education Program
• First opportunity to reserve display space at
the Product Showcase
KEYNOTE SPEAKER SPONSOR ($5,000)
• Recognition as a conference sponsor at all events
• Recognition as conference sponsor in Newsleak
• Recognition on all advertising and marketing
media issued to promote the conference
PATRONS ($2,500)
Newsleak
web site
• A plaque recognizing the firm as a corporate
sponsor for their office
• Second opportunity to reserve display space at
PARTNERS ($1,500)
Newsleak
web site
• Third opportunity to reserve display space at
CONFERENCE SPONSOR ($5,000)
• Recognition as a conference sponsor at all events
• Recognition as conference sponsor in Newsleak
• Recognition as educational event sponsor
BANQUET SPONSOR ($3,000)
• Recognition as banquet sponsor at the banquet
• Recognition as banquet sponsor in Newsleak
• Premier signage at the banquet
RECEPTION SPONSOR ($3,000)
• Recognition as reception sponsor at the reception
• Recognition as reception sponsor in Newsleak
• Premier signage at the reception
LUNCH SPONSOR ($2,000)
• Recognition as luncheon sponsor at the luncheon
• Recognition as luncheon sponsor in Newsleak
• Premier signage at the luncheon
BREAKFAST SPONSOR ($1,000)
• Recognition as breakfast sponsor at breakfast
• Recognition as breakfast sponsor in Newsleak
• Premier signage at the breakfast
If you are interested in a corporate or conference
sponsorship, contact Tom Cohn in the DPHA office
at 1-888-411-8477.
SPONSORS ($750)
web site
• Fourth opportunity to reserve display space at
February 1, 2008
NEWSLEAK 8
It’s the Economy Stupid continued from page 7
turing prices. The cost of oil
rose by 50% last year. Unrest in
the Middle East and threats
from dictators of oil-producing
nations such as Hugo Chavez of
Venezuela and Mahmoud
Ahmadinejad of Iran offer little
hope that energy costs will stabilize. And we are in an election year. If history holds true
Debby Stehr
to form, the economy will be flat
in 2008 as this has been the case every year in which
two non-incumbents vie for the presidency.
There is a great deal of economic uncertainty about
where things are going. Nonetheless, certain segments of the decorative plumbing and hardware
industry do not apparently believe that economic
conditions apply to them, evidenced by their desire
to increase sales anywhere from 10 to 30% in 2008.
While a 30% increase in sales may not be realistic in
most areas of the country, times of economic uncertainty and downturns can create opportunities for
the best representative agencies to shine. However,
we cannot go it alone. Manufacturers, representatives and dealers must recognize and understand that
now, more than ever, we must work together if we
are going to respond effectively to the hands that we
are being dealt. Manufacturers need to provide the
tools necessary to maintain and expand market
share. These include targeting architects, designers
and custom builders through aggressive marketing
and advertising campaigns, introducing new and
innovative products and most importantly making it
easy for dealers to specify and sell products.
Making It Easy to Sell Product
Making it easy to sell products begins with understanding what drives and motivates showroom staff
to specify one product over another. One of the
valuable lessons that DPHA has taught the industry
at its last three annual conferences is that selling
high-end products has little to do with the product
itself. Keynote speakers ranging from the head of
retail practice at the Boston Consulting Group
Michael Silverstein, retail anthropologist Paco
Underhill and retailer extraordinaire Jack Mitchell
all said the same thing. Each recognized the need
for outstanding products. However, products alone
February 1, 2008
do not drive sales. It’s relationships established with
buyers that are key to selling products.
Representatives in the field make or break
relationships.
Representatives establish relationships by creating
comfort zones for showroom staff to sell specific
lines. Through training and maintaining a constant
presence, representatives teach showroom professionals to believe in a product, understand its
nuances and be comfortable with and confident in
presenting a product line to end users.
Representatives shine when they not only teach sales
staff how to sell a product, but also the keys to selling in a luxury environment to luxury consumers.
This is accomplished by ensuring literature is up to
date, describing how to use price books and through
after sales support.
Representatives understand that a typical showroom
has hundreds of lines. In order to feel confident in
selling a particular product, showroom staff need to
appear like experts to their customers so that their
customers become repeat clients. If they don’t know
how to use literature or are not familiar with a
product line, they won’t direct customers to those
products. Our job as representatives is to create a
comfort zone with a line that helps ensure sales professionals look good in front of their customers.
It is unreasonable for a manufacturer or representative to expect showroom staff to provide the time or
attention to learn a line in a single training session.
Lasting relationships result from working one on
one with individual sales professionals, walking
them through new literature page by page and pointing out new products. Success is obtained by highlighting different aspects of a line each time you visit
a showroom. Often, the time allotted is limited,
making it necessary to have a constant presence in
the showroom through frequent visits, newsletters,
e-blasts, new product announcements, formal and
informal training sessions, webcasts and news
updates. Take advantage of the time in the showroom by providing sales professionals with small
bites at each training session. Focus on product features that are unique, unusual or an aspect that the
sales people may have forgotten about.
Making products easier to sell requires an understanding of what causes customers pain. Pain can be
NEWSLEAK 9
It’s the Economy Stupid continued from page 9
inflicted or avoided based on processes used to
announce price increases. Companies cause pain
when they issue an email stating, “Effective at the
first of the month there will be a 10% increase
across the board. Add the increase to orders when
you submit them.” Dealers incur pain when their
literature is out of date. Manufacturers inflict pain
if they fail to produce new products. Dealers and
representatives incur pain if customer service
departments can’t answer simple questions and if
delivery deadlines are not met.
Manufacturers ease pain if they comply with the
DPHA Data Standard. The DPHA Data Standard
uses standardized Excel spreadsheet columns to
transmit pricing and product information. There
are currently two compliance levels. Level 1 simply
requires manufacturers to place price information in
correct columns. It’s basic and takes a couple of
hours if a company’s computer system can download data into an Excel spreadsheet. Level 2 of the
DPHA Data Standard requires manufacturers to
include URL addresses that point to information
that includes specifications, pictures, installation
instructions and parts. In doing so, the standard
makes a giant leap in capitalizing on the power of
the Internet. By blending two separate systems into
a single system – price lists and web sites – both
systems benefit from each other. A dealer’s inhouse software can now link directly to web site
files. As a result, dealers and representatives can
prepare responses to requests for proposals that
include pictures, diagrams, specifications, and
installation instructions by pressing the print icon
on their software program.
Making products easier to sell in an iffy economy
also requires offering specials, display upgrades and
discounts and new products to replace tired lines.
According to several manufacturers that we represent, products introduced in the last five years represent 70% of the sales volume. Manufacturers
that want their representatives and showrooms to
increase sales by 10 to 30% need to have new product offerings that can help achieve those goals.
with showrooms and the trade for themselves and
their manufacturers. Representatives build relationships by visiting job sites and resolving installation
shortcomings. Representatives create value by
training installers on project work and walking
them through the nuances of today’s highly sophisticated decorative plumbing and hardware products. DPHA has another tool to help educate the
trades. The Association’s new Message to
Installers clearly illustrates the advantages installers
obtain from partnering with independent showrooms.
2008 is not the first, nor will it be the last time,
that the industry faces a difficult economic climate.
Unfortunately, when the economy dips, there is a
tendency to blame national sales managers and representative agencies. We will see sweeping changes
because too many in the industry still do not realize
that it truly is not the product that is most important. Outstanding products abound. It’s relationships that sell products. Many in the industry will
be best served by focusing on relationships with the
three principal components in the supply chain and
doing everything in their power to reinforce them.
Independent representatives are in the field every
day. They understand and appreciate local market
conditions. There is no substitute for being accessible when needed. To a very real extent, the representative is the brand. Partnering together, manufacturers, dealers and representatives can help ease the
pain that a down economy brings and ensure that
when opportunities arise, they are capitalized upon.
This article appeared in the February 2008 issue of
Kitchen & Bath Design News. It is reprinted with
permission.
Representatives in the field create value by providing technical assistance that avoids problems and
the showroom knows that the representative is
there to cover their back. We all know that many
contractors don’t necessarily read installation
instructions. Representatives that have the expertise
to answer technical questions build relationships
February 1, 2008
NEWSLEAK 10
Happy Selling 2008
The past year was full of great memories! We wish you a Happy New Year.
I]Z WZhi ^h nZi id XdbZ ^c '%%-
Jody Rosenberg Awarded for Outstanding Achievement
National Sales Manager Jody Rosenberg was recognized for his commitment,
enthusiasm, passion and strong leadership of the Sonia North American
market as the first-ever recipient of the Jose Maria Ferrer Beltran Outstanding
Achievement Award, named after the company’s owner.
From left to right:
Ozzie Silva, Jody Rosenberg, Jose Roca, Martin Siwy
Congratulations to Sonia Sales Reps
Sonia awards ceremony takes place at the annual sales meeting
in the Dominican Republic.
From left to right:
Steve Toor of ST Sales receives Top Sales Producer Award.
Tim Vander Wall of InterArchitectural Products wins Above
and Beyond Award. Ted Howell and Lauren Slankard of
Western Sales accept Sales Rep of the Year Award.
Our Team Continues to Grow
We welcome Stephen LaMachia, in his position as Eastern Regional
Sales Manager. LaMachia joins Sonia with an advanced understanding
of the market and over seven years of sales experience.
To continue the exceptional customer service that Sonia strives for,
Barr Tinney has been recruited and is responsible for all customer support
related duties.
Sonia America, Inc.
1.888.SONIAUS
www.sonia-sa.com
Do You Get the Message?
DPHA’s January Question of the Month asked,
“How are you using DPHA’s consumer message
brochures, what successes have you realized and
what other tools do you use to educate your clients,
customers and prospects? There were few responses, and many of those that did respond failed to
understand why the brochures were developed.
One reason for the lack of response may be that
members do not know how to effectively use message brochures to obtain competitive advantages.
DPHA developed the messages for dealers to give to
customers to explain why a DPHA showroom is
superior to others. It is one thing for the showroom to say that it has a knowledgeable staff and
more diverse product lines. It’s another when an
independent trade organization outlines the quality
of service that customers should expect and deserve.
DPHA created the message brochure program to
provide a third-party endorsement of the value that
a professional showroom creates. Each brochure
explains in simple terms why a DPHA member
showroom should be the destination of choice for
decorative plumbing and hardware. In order to
maximize the effectiveness of the brochures, they
should be reviewed at staff meetings. Owners
should provide guidance on how they are to be used
and where they are displayed. Several showroom
owners reported that they place the brochures dealing with specific product types next to displays of
those products. Other showrooms have placed all
of the brochures in a central location. Additionally,
the brochures help to make a
complete sale because they
address many add on opportunities that are often forgotten or overlooked.
How many of your sales staff
look forward to helping customers select cabinet hardware? If your staff is typical
of others, the answer to the
question is not many. In fact,
one showroom owner reported that her staff runs the other
way when someone comes in
holding a knob or carrying a
cabinet drawer. The DPHA
Cabinet Hardware Message
was developed specifically to
February 1, 2008
allow showrooms to provide service to customers
without sales staff having to spend considerable
amounts of time to sell a couple of knobs and pulls.
The message explains the difference between a knob
and a pull, provides guidance to customers on positioning of knobs and pulls and the steps to take if
they are replacing existing cabinet hardware. The
message includes a checklist and a ruler in both
inches and centimeters that customers can use to
measure center to center on the pulls in your showroom and on the drawers and cabinets in their
home. The message serves as a “do-it-yourself”
guide to selecting cabinet hardware that helps
reduce the amount of time showroom professionals
have to spend. Several showrooms report that they
have strategically placed the message brochures in
their cabinet hardware sections with great success.
How many times have showrooms complained
about installers? On the DPHA web site and during many Education Committee meetings, the issue
of installer shortcomings is frequently discussed.
Einstein said, “The definition of insanity is to do
the same thing over and over again and expect a
different result.” DPHA developed the Message to
Installers to help showrooms obtain a different
result. The Message to Installers relates numerous
reasons why it is in an installer’s best interest to
partner with a DPHA showroom. The Message to
Installers is not intended to be displayed openly in
the showroom. Instead, it is
designed for distribution as a
direct mail piece that DPHA
members can use to introduce
or re-introduce the showroom
to the installation community.
The message is designed to be
given to installers that come
to the showroom and to serve
as a handout during training
sessions. With the economy
in flux, now is the ideal time
to develop and present training sessions that will help
installers increase their profitability – what’s in it for
them and reduce the number
of installation errors that
occur on site – what’s in it for you.
NEWSLEAK 12
Message Brochures continued from page 12
Similarly, DPHA developed
messages for architects,
designers and homebuilders.
Each message explains why it
is in the best interest of the
trades to partner with a
DPHA member showroom.
The message emphasizes that
DPHA members save the
trades time, help avoid and
mitigate common problems.
DPHA explains to designers
that “DPHA members showrooms understand that there
are many products that can
meet the needs of any project.
However, extraordinary
results can only be achieved
by knowing the best solution for every project. The
DPHA member showroom is a sounding board and
technical resource to help assure that the best solutions are obtained for your clients and your projects.”
Gerry Layo played to rave reviews at the DPHA
2006 Colorado Springs Conference. His guidance
to members was to maintain at least monthly contact with customers and prospects. Issue newsletters, new product announcements, vignette changes
in the showroom and other newsworthy information that allows you to maintain a line of communication. Layo called them touch points. Message
brochures are touch points.
The Lavatory Faucet message explains that the
lavatory faucet sets the stage for all metallic components in the bath. The DPHA
showroom is the ideal venue to
educate discriminating buyers
because of unique product
lines, extensive inventory and
superior ability to determine
and meet customer requirements. A comprehensive
checklist is included that identifies complimentary components that can be overlooked,
serving as a reminder to help
clients achieve a complete and
coordinated look.
The Shower Systems message
also emphasizes the valueFebruary 1, 2008
added benefits that a DPHA showroom contributes
to a project’s success. The message emphasizes that
a DPHA showroom can be a
valuable source of assistance
to installers, who despite
experience levels, may be
working with components for
the first time.
The Care and Maintenance
message identifies primary
considerations customers
should discuss with showroom
professionals when selecting
decorative hardware and
plumbing products. Guidance
is offered to care for products
once they are purchased.
The Locks and Lock Sets message explains the differences
between mortise and tubular
installations and the primary
lock functions. The message
relates that the professional
showroom can provide the
counsel necessary for customers to select door hardware.
The Accessories message
explains, decorative bath
accessories featured in independent showrooms combine
the perfect mix of form and function. They explain
to customers that accessories sold in showrooms
can serve as a personal valet to
warm a towel on a cold winter
day or keep a robe within
reach as clients emerge from a
shower or bath. Customers are
advised that when considering
decorative bath accessories to
keep in mind that the small
details often make the biggest
difference. The message
emphasizes that a knowledgeable showroom professional
can guide customers through
the intricacies of selecting
accessories and help to assure
that the products selected comcontinued on page 15
NEWSLEAK 14
DPHA Announces 2008 Awards Program
Awards Committee co-chairs Jim Tomafsky
(Mountain Plumbing Products), Melissa Allen
(Cobblestone Court) and Tim Murphy (Klaff’s)
announced that DPHA is accepting applications
and nominations for the 2008 DPHA Awards
Program. All nominations must be made by peers
(except the Innovative Product of the Year category).
The Program's goals are to recognize outstanding
accomplishments in the decorative plumbing and
hardware industry, create industry awareness and
spotlight exceptional individuals, companies and
products. Award entries are judged by the Awards
Committee. If you would like to serve on the
Awards Committee send an email to
[email protected].
DPHA offers the following awards to be presented
at the DPHA Annual Conference October 25,
2008, at the J.W. Marriott at Desert Ridge,
Phoenix, AZ:
DPHA Professionals of the Year
(Showrooms, Manufacturers and
Representatives)
The Awards recognize representatives of DPHA
members who have made outstanding contributions
to advance the DPH profession based on:
●
Degree of involvement in DPHA activities
●
Personal achievements in the industry
●
Pursuit of personal improvement and
education
●
Job performance and accomplishments
●
Involvement in and support of other DPHrelated organizations
●
Public recognition for a deed or
accomplishment which may or may not
pertain to the DPH industry but reflects
favorably on the individual as a DPHA
member.
Message Brochures continued from page 14
a message from
pliment the other fixtures,
components and space.
DPHA also produced an
accompanying checklist that
serves as a valuable tool to
help assure a complete look
for the bath and helps avoid
missing opportunities for add
on sales of items that many
customers may not consider
or know about.
The recently published
Lavatory Bowls message
relates that “selecting a bowl
for a lavatory is one of the
first decisions made when building a new or renovating an existing bath. The message reviews different mounting options and explains how customers
can create value for their homes and projects by
partnering with showroom professionals.
showroom and a business that simply exists to sell
product is clearly evident by the questions that a
sales associate asks. Showroom professionals create
value by asking the right questions to understand
your goals. This process allows the showroom professional to take a holistic view and focus on the
technical aspects of a project so that customers and
clients can concentrate on style and appearance.”
Copies of DPHA’s message brochures are available
at a cost of $30 per 100 for the product brochures
or $30 per 50 for the messages directed at the
trades. A copy of each brochure and an order form
are enclosed with this issue of Newsleak.
Each brochure includes a statement similar to the
following, “The difference between a professional
February 1, 2008
NEWSLEAK 15
DPHA Data Standard Provides Competitive
Advantages
Eclipse Users and Others to Have Systems Automatically Updated
required and some are not. As time goes on and
DPHA Technology Committee Chair David
compliance spreads across the industry, more
Goldberg (Union Hardware) has scored another
required fields will be added.
monumental breakthrough that will benefit DPHA
members and provide them with distinct competitive
Manufacturers can use the Data Standard to transadvantages. Eclipse users and those using other
mit pricing and product information that can be
software programs will soon have their systems
used by almost every point of sale, inventory,
automatically updated every time a manufacturer
accounting, project management and ordering softthat complies with the DPHA Data Standard
ware system. The
uploads a
standard creates a
price
common data format
increase.
Imagine how much time, energy and stress
that enables everyone
The human
will be eliminated knowing that the pricing
in the industry to use
element has
in your system is accurate.
the same information
been elimiin the same way.
nated!
Compliance with the
Imagine how
standard permits different computer systems to look
much time, energy and stress will be eliminated
at the same spot for the same information.
knowing that the pricing in your system is accurate.
Imagine which manufacturers dealers will want to
There currently are two compliance levels. Level 1
specify if they are asked for a request for proposal?
simply requires manufacturers to place price inforWill it be the manufacturers whose pricing they
mation in the correct columns. It’s basic and takes a
know is accurate? Will it be manufacturers whose
couple of hours to comply with if you can download
product pictures, specifications and installation
pricing into an Excel spreadsheet.
instructions are available at a touch of the button?
Or will it be manufacturers that send a note saying,
Level 2 requires vendors to include URL addresses
“Effective February 1, all prices increased by 10%.
that point to information that includes specs, picUpdate your systems on your own?”
tures, installation instructions and parts. In doing so,
the Data Standard makes a giant leap in enabling
How to Comply with the DPHA
our industry to capitalize on the power of the
Data Standard
Internet.
The Data Standard is nothing more than an Excel
spreadsheet that uses standardized columns to transmit pricing and product information. It is important
to emphasize that this standard does not mandate
what information is placed within specific fields, the
format of the information within a field or how to
number finishes. It does ask that all finish information be placed in the same column. If you look on
an Excel spreadsheet, the standard requires that
item/SKU numbers be placed in column A, finish
information in column B, finish description in column C, description of the product in column D,
manufacturer suggested retail price in column E, net
price in column F, etc. Some of the columns are
February 1, 2008
By blending two separate systems into a single system (price lists and web sites), both systems benefit
from each other. The web site used by consumers
can now have full information organized with a full
database of information. A dealer’s in-house system
can now link directly to a file containing specs, pictures, installation instructions and parts diagrams.
DPHA has a template that manufacturers can use. It
is available on the DPHA website at
http://www.dpha.net/data.html.
NEWSLEAK 16
DPHA Revises Faucet Manual
DPHA published the first volume on faucets in its
heralded Education Program in 2003. The milestone event marked the first time in history that a
training manual had been developed specifically to
familiarize decorative plumbing and hardware professionals with high-end faucetry. The manual
provided both technical guidance and sales techniques. Five years later, the DPHA Education
Committee has updated the faucet manual to
include a style guide and to reflect changes in
industry practices.
The DPHA Education Program is a modular
approach to help those new to the decorative
plumbing and hardware industry understand the
technical and aesthetic difference of products sold
in showrooms. Each manual is a basic sales and
product training guide for a particular product or
suite of products. Baseline information is present-
DPHA Data Standard continued from page 16
Since the last issue of Newsleak was published, the
following manufacturers have seen the light and
complied with the DPHA Data Standard: American
Faucets and Coatings, Classic Brass, Duravit USA,
Jado and Native Trails. Others that have earned a
competitive advantage with the DPHA membership
include:
Alno
Altmans
Baci by Remcraft
Barber Wilsons & Co./Black Country Heritage
Barclay Products, Ltd.
Bates & Bates
Brasstech
Bristol & Bath
Colonial Bronze
Environmental Water Systems
Ginger Company
Hansgrohe
Harrington Brass Works
Jaclo Industries
Julien
Kallista, Inc.
Kimball & Young
Legacy Brass
Linkasink
February 1, 2008
MGS USA
Methven
Nostalgic Warehouse
Oliveri, Tasman Sinkware North America
Omnia
Phylrich
Sonia America, Inc.
Sonoma Forge
Steamist
Stone Forest
Thermasol Steambath
Victoria & Albert
Villeroy and Boch
Watermark Designs
Zehnder America, Inc.
Given its importance, compliance with the standard
should be at the top of every DPHA manufacturer’s
priority list. For more information on complying
with the Data Standard, contact David Goldberg at
301-654-7810 or send him an email at
[email protected].
NEWSLEAK 17
Awards continued from page 15
Peer nominations are required. Nominations must
describe how the nominee has excelled in each or any
of the criteria.
Past Showroom Recipients
Charlie Goldberg (2003)
Julie Koch (2004)
Debbie Miller (2005)
Faye Norton (2006)
Marilyn Hermance (2007)
Past Manufacturer Recipients
Jeff Valles (2003)
Ken Rohl (2004)
Naomi Neilson (2005)
Jamie Gregg (2006)
David Crossley (2007)
Past Representative Recipients
Mary Labowitz (2003)
Debby Stehr (2004)
Jim Babbitt (2005)
Dan Beaudet (2006)
Bob Marshall (2007)
DPHA Showrooms of the Year
The Award recognizes different showrooms based on
their size (less than 3,000 square feet and more than
2,999 square feet). The Award recognizes outstanding business practices, customer service, human
resource practices and industry support. Criteria to
evaluate nominees are:
●
●
●
●
●
●
Training programs
Marketing programs
Customer service
Involvement in and support of the industry
Merchandising
Innovative presentation of decorative
plumbing and hardware products within the
showroom
Nominations should describe the showroom’s training and customer service programs; relate their
approach to merchandising and basis for that
approach; provide examples of marketing efforts;
describe degree of involvement in DPH-related industries, and provide pictures of the showroom showing
innovative presentations of different products and
services.
Previous Winners
The Bath and Beyond (2003)
Waterware (2004)
Renaissance Molding and Design (2004)
Designer Hardware by Faye (2005)
Eurobath & Tile (2005)
Community Home Supply (2006)
Sonoma Kitchen & Bath (2006)
Miller’s Fine Decorative Hardware & Plumbing
(2007)
Chicago Brass (2007)
Innovative New Product
The awards recognize technological and design innovations in either decorative plumbing or hardware
products released in the last 18 months.
Nominations are accepted via application.
Applicants should describe the innovativeness of the
product and why it is deserving of recognition.
Previous Winners
BainUltra Temazkal (2003)
KWC Murano (2004)
Water Decor’s Bridge Faucet (2005)
KWC Waterstation (2006)
Julien’s Bench Toilet (2007)
Beyerle’s Exposed Stainless Steel Sliding Door System
(2007)
Customer Service Department of the
Year
This award recognizes a customer service department
of manufacturers based on responsiveness, courtesy,
knowledge, ability to go above and beyond and overall performance.
Past Winners
BainUltra (2005)
Environmental Water Systems (2006)
Rohl, LLC (2007)
Rep Agencies of the Year
Two awards will be given based on the agency size.
One for organizations with three or fewer employees
and one for agencies with more than three employees.
February 1, 2008
NEWSLEAK 18
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Award
SPOTLIGHT
Winner
Miller’s Fine Decorative
Hardware & Plumbing
Miller’s Fine Decorative Hardware & Plumbing in
Jupiter, FL was named the 2007 DPHA Showroom of
the Year. The Award recognizes outstanding business
practices, customer service, human resource practices
and industry support. The criteria to evaluate nominees are:
●
●
●
●
●
●
Training programs
Marketing programs
Customer service
Merchandising
Innovative presentation of decorative plumbing
and hardware products within the showroom
Given the criteria, it seems obvious why Miller’s Fine
Decorative Hardware & Plumbing was honored by its
peers. The showroom was created by Sid Miller and
opened its doors on October 18, 1989. Sid tapped
Vicki Findley to manage operations. Vicki had come
to Miller’s after nearly a decade of experience in the
plumbing and hardware industry. She started her
career as a fresh-faced teenager, working for Castle
Supply in Sarasota in 1980. Her first position was in
front of a computer screen where she inputted data.
Having had a taste of the industry, Vicki landed her
next position working for a plumbing contractor who
later decided to build a showroom. During this time,
Vicki received her first experience selling in a showroom environment while at the same time appreciating
the daily challenges faced by plumbing contractors.
Five years later another opportunity presented itself
and Vicki went to work for Annamary Kennel at the
Plumbing Place in Sarasota.
At the Plumbing Place, Vicki learned the showroom
business and became attracted to it. “I always had an
interest in design,” Vicki related. “While I was working in showrooms I felt that many of the projects that
we were involved with were part interior design. I
decided to take design courses at night to act on my
passion.” Passion is one of the many attributes that
Vicki brought to the table when she met with Sid
Miller to discuss a new showroom he planned to open
in Jupiter. “He was not looking for anyone in particular,” Vicki recalls, “however, we connected immediately. Sid was a wealth of knowledge. He had an infectious and explosive personality,” Vicki stated.
Vicki viewed Sid Miller as a father-type figure who
served as a mentor, coach and friend. “For five years,
February 1, 2008
NEWSLEAK 20
Miller’s Profile continued from page 20
I managed the Jupiter showroom, hiring staff, buying
products, marketing, merchandising and running every
aspect of the operations except for accounts payable.”
Vicki’s efforts made the showroom successful. It was
so successful that Vicki approached Sid about her
future. Sid recognized Vicki’s contributions and asked
her to buy him out. And that’s what she did. Five
years to the day after Miller’s in Jupiter opened, Vicki
Findley became the owner.
“In a single day, I went from employee to boss,” Vicki
said. “I never had any formal business training, but I
always had an appreciation that in order to run a successful business you had to be sufficiently capitalized.”
Vicki took financial life lessons learned from her
father who was a CPA and began to apply them to
Miller’s when she purchased the showroom.
One of the criteria for being named Showroom of the
Year is customer service. Having nearly a decade of
showroom experience, Vicki understood the mind of
the luxury consumer and how to assure that their
needs are met. “Part of our success is attributed to
our ability to listen to customer needs and wants,”
Vicki stated. Miller’s Jupiter caters primarily to the
trades. Vicki leveraged her experience working with a
plumbing contractor to establish trade relations that
have become long-term clients. “I understand the contractor’s perspective,” Vicki stated. “I am genuinely
concerned with who they are, where they are going
and the projects that they have coming up. We provided value-added services to build partnerships with
the trades. We have been and always will be loyal to
our contractors and, in return, they are loyal to us.”
Vicki explained that contractors want to be in control
of a project so she lets them. Working with experienced contractors also helps to eliminate problems
that plague a number of projects. “Working with
knowledgeable and experienced trade professionals is
one of the secrets to our success. Our projects rarely
have installation issues because of the expertise of our
clientele.”
Miller’s Jupiter compliments its understanding of the
needs of trade professionals with superior customer
service. Vicki explained, “I always sell the service
instead of the price.” Service means going the extra
mile to make it easier to buy and install products that
Miller’s Jupiter sells. “We never simply drop off a
delivery of product to a job site and let the installer
figure out what is what and where it goes,” Vicki stated. Instead, every component is inspected before it is
sent to a job site and each box is labeled identifying
the correct venue where the component is to be
installed.
Customer service is enhanced by the fact that sales
professionals’ only responsibility is sales. “We have
segmented responsibilities where sales people only sell.
There are dedicated customer service responsibilities
where staff members are tasked with ensuring that
specifications books are accurate and with tracking
the status of orders. There is another team member
who has primary responsibility for RGAs and parts.
There are dedicated team members whose sole focus is
customer service. Segmenting responsibilities enables
Miller’s Jupiter to deliver exceptional customer service.
Marketing effectiveness is another key criterion for
being honored as Showroom of the Year. Miller’s
Jupiter has excelled in that arena as well. “I’ve been
fortunate to choose the right marketing avenues,”
Vicki explained. “I was able to get in on the ground
floor of several influential publications when they first
started publishing. Today, magazines such as Florida
Design are stalwarts among design professionals. We
have been advertising with Florida Design almost as
long as it has been published.” The advertisements
February 1, 2008
NEWSLEAK 21
Miller’s Profile continued from page 21
that Vicki places cater to the luxury consumer. They
stress not only design differences, but also the experiential differences that customers can expect from
Miller’s Jupiter.
The showroom itself is a reflection of the owner, stylish and elegant with a hint of whimsy. Vicki is a stickler for creating the right impression. She is uncompromising when it comes to the appearance of the showroom. Vicki and her team recognize that first impressions in the showroom business can be lasting.
Particular attention is paid to creating visually appealing window displays that are changed frequently.
Her approach to showroom displays is positively
unique. “Instead of simply placing together vignettes,
we try to tell a story with each display,” Vicki said.
The displays feature more than decorative plumbing
and hardware components. Each display is carefully
decorated with accessories, towels, soaps, etc. Almost
everything that you see in the Miller’s Jupiter showroom on a display is available for sale. Displays are
changed frequently to keep the showroom from stagnating. Miller’s sponsors four designer events annually in the showroom. It is important the showroom’s
appearance to be fresh and inviting not only for repeat
customers but also for the staff.
Vicki understands and appreciates the value of real
estate and wants to make the most of her turf. She
also realizes her strengths and limitations. “I know
what I don’t know,” Vicki explained. And when she
needs assistance, she is not afraid to ask for help. She
turned to Hank Darlington to help her better understand the financial operations of running a decorative
plumbing and hardware showroom and to take it to
the next level. Vicki relies on the DPHA Education
Program to help train her staff. She uses DPHA’s consumer message brochures to effectively educate her
customers and build better relationships with the
trades. She relies on designers to help with color
schemes for her showroom and showroom displays.
Vicki uses the DPHA employee evaluation program to
assess if prospective employees are the right fit for her
corporate culture. She capitalizes on team member’s
talents to create meaningful differences that set her
apart from the competition. “I have a team member
who has a skill with flower arrangements. We use her
talent to help enhance our displays. One team member
has a contact that does mural painting and another
who has design talents.” In fact, staff generates most
of the display ideas that contribute to the showroom’s
success. “Allowing team members to create displays
February 1, 2008
that capitalize on their talents is essential and helps to
assure that the staff is part of the decision-making
process,” Vicki said.
Vicki is a firm believer in empowering her staff by asking them to provide input regarding product lines,
advertising campaigns, receivables and financial operations and almost every aspect of the showroom. It is
her willingness and ability to empower her employees
that has enabled Miller’s Jupiter to lay claim to having
one of the most experienced and professional staffs in
South Florida. “At this point, I can guarantee that we
have the most professional, knowledgeable staff within
40 miles of the showroom,” Vicki claimed. “My team
is goal oriented and has a do-whatever-it-takes attitude
to help ensure that we are successful. Being named
Showroom of the Year was an honor that was shared
by the entire team.”
Up Close
Name: Vicki Findley
Title: President
Company: Miller’s Fine
Decorative Hardware &
Plumbing, Jupiter, FL
Hobbies: Horseback Riding, Pilates, Going to
the Beach
Favorite Place to Horseback Ride: Any Beach
Favorite Movie: American President
Changes She Would Like to Make to the DPH
Industry: Have showrooms be showrooms and
have wholesalers wholesale.
Persons She Would Like to Have Dinner With:
Robert Redford, Oprah Winfrey and Sid Miller
NEWSLEAK 22
Bathroom vanities for winners!
DPHA Revises Faucet Manual continued from page 17
ed, enabling showroom staff and others to quickly
become familiar with operating requirements, terminology and relationship selling.
Faucets presents specific concepts, materials and
application processes in an easy-to-understand format. Included in the manual are suggested questions
that sales professionals need to ask to obtain a better
understanding of buyers’ needs and preferences. At
the end of the chapter is a “Chapter Review.” The
review includes a series of multiple choice questions,
matching questions and critical thinking questions.
The Chapter Review helps showroom principals and
managers evaluate employee knowledge and the
amount of information retained. It helps to identify
future training needs and offers guidance to prepare
employees to sell in a showroom environment.
The objectives of the Faucets manual are to:
•
•
•
•
•
•
•
Explain the different types of faucets on the
market
Explain the difference in materials used to
manufacture faucets
Explain the different types of valves used to
make faucets
Review faucet styles
Explain different drain options
Discuss hands-free faucets
Define industry nomenclature
The manual explains pictorially and verbally the difference between single-hole, four-inch center sets,
eight-inch, centerspread, wall-mounted, bridge and
other types of faucets. The range of materials used
to manufacture faucets is discussed. New to the
2008 edition of the Faucets is a style guide. The
general characteristics of traditional, transitional,
contemporary, English Country, Asian,
Southwestern, Gothic and Eclectic faucet styles are
described. DPHA advises showroom sales staff to
ask clients about the style of their home so that they
can direct them to products that match. Showroom
sales professionals need to be familiar with different
styles to demonstrate their expertise and establish an
immediate rapport. The style guide was added to
help sales staff direct customers and clients to the
faucets that fit the décor of their home.
The manual includes a section on hands-free
faucetry, which is expected to become increasingly
important as the green movement makes further
inroads into American consumer preferences.
Additionally, there is a section on faucet valves that
describes the functional and performance differences
between ceramic discs, compression and ball valves.
The Lavatory Drain section describes the differences
between pop-up drains, lift and turn drains, stainers
and bowls that employ drains with chains and stoppers.
The manual also addresses coverplates, escutcheons,
aerators and the direction handles should turn.
DPHA members may download a copy of the revised
faucet manual from the DPHA members’ only section of the web site, www.dpha.net. The DPHA
Education Program is not sold to nonmembers at
any price.
President’s Message continued from page 3
differences between products sold in showrooms and
those sold elsewhere.
The Awards Committee, under the direction of cochairs Melissa Allen (Cobblestone Court), Tim
Murphy (Klaff’s) and Jim Tomafsky (Mountain
Plumbing Products), has kicked off DPHA’s 2008
Awards Program. Previous award winner profiles
now appear on the web site. In the near future,
members will be able to submit nominations online.
The goal of the DPHA Awards Program is to recog-
DECEMBER 15, 2007
nize and promote outstanding achievement in our
industry. Nominating peers helps DPHA achieve this
goal.
DPHA committees are clicking on all cylinders to
bring the membership dynamic programs and benefits
that create true competitive advantages.
Debbie Miller
President
NEWSLEAK 24
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800.776.0711
East
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Coast: 800.631.1601
800.631.1601
www.thermasol.com
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Gold Circle
Sponsor
SPOTLIGHT
KWC America
In 1874, a Swiss entrepreneur Adolf Karrer
established a manufacturing company in
Unterkulm, Switzerland to make mechanical musical boxes. In 1880, he added a
foundry to the factory without the slightest
idea that this small, local foundry would
mark the beginning of a long journey that
in the twenty first century, would lead to
the internationally renown company, KWC AG. In
1897, Walter Ruginbuehl began to manufacture
faucets, producing the first small “gas taps.” By
1902, the company parted with musical boxes forever,
preferring the music of the finest metals tuned to the
highest quality in the production of performance-driven faucets.
When Chris Marshall, the new president and CEO of
KWC America, visited Unterkulm after joining the
company in February 2007, he was struck by the
beauty of this charming, quaint little town nestled in
the glory of magnificent Alps. Smitten by the beauty
of the centuries-old, classic Swiss landscape, Marshall
was greeted with a presentation of KWC’s top-notch,
modern faucets
that are the
very reflection
of everything
cutting-edge
and innovative
in the kitchen
and bath industry today. “I
could see that
KWC product
designers are
clearly inspired
by their surroundings,”
recalls Marshall
who prior to
KWC held various executive
positions in the
kitchen and
bath industry
Hansacanyon
including group
February 1, 2008
vice president of Masco Corporation and
president of Hansgrohe, Inc. “KWC does
not focus on its competitors, but on how to
build better products that offer innovative
design and superior function,” he says.
Headquartered in Norcross, GA, KWC
America is part of the HANSA Group and
one of the leading suppliers of luxury kitchen and
bath faucets, sinks, shower systems and accessories in
North America. In the 1980s, KWC was acquired by
HANSA whose products KWC America sells in addition to the KWC brand. For more than 130 years,
KWC has defined Swiss excellence, being number one
in its product category with nearly a 40% market
share in Switzerland. The company is proud to be the
first faucet manufacturer in Switzerland to receive the
ISO 9001 Quality Assurance Certificate.
HANSA is world-renown for its innovative and
groundbreaking designs in the bathroom industry.
According to a national German survey of plumbing
professionals, HANSA has been the number one
plumbing brand among German plumbers for 15 consecutive surveys. Plumbing professionals in other
parts of Europe have specified the brand for decades
due to its unprecedented reliability and safety. Many
HANSA bathroom products are the creations of the
legendary automobile designer, Bruno Sacco, who used
to work as head designer for Daimler-Benz
(Mercedes). HANSA also works with other prominent German designers and designer firms such as
NOA Design that have brought the company numerous prestigious awards.
Both the KWC and HANSA brands continue to evolve
in Europe and the United States. “KWC will remain
an exclusive Swiss luxury brand focused on innovative
kitchen faucets and sinks with a specific distribution
strategy that targets high-end showrooms,” says
Marshall. “HANSA will continue to deliver a full
range of bath products on a semi-exclusive basis,
offering uncompromising quality, design and service.”
In addition to building on KWC’s momentum, part of
NEWSLEAK 26
KWC America Profile continued from page 26
Marshall’s efforts is to ensure the successful long- term
development of HANSA products in North America.
The initial introduction of HANSA in North America
spurred serious interest in the brand, but showed that
the products needed to be better tailored to the technical requirements of the U.S. market. “Now we are
ramping up to successfully reintroduce a HANSA that
has a lot in store for the American consumer,”
Marshall explains. “Our goal is to offer our direct
customers the best of both worlds as it relates to
returns on investment versus high consumer demand.”
Marshall is convinced that despite the fact that traditional-style products still account for the biggest volume of sales in the U.S. kitchen and bath market, the
trend is moving in the direction that favors modern
European design, and it’s not a fleeting fascination
with the sleek and stylish foreign looks, but a trend
that will stay.
ing custom-made
shower systems or
designing customized kitchens as
the company has
learned that these
services have
become increasingly
popular with consumers. Other
courses explain the
technical side of
KWC and HANSA
products to make
sure that attendees
Hansaclear Lux Hand Shower
walk away with
knowledge and skills
they need to install them.
“Our mission is to be understood, advocated, and be
the product of choice for the design community in the
United States,” says Marshall. “We reach out to
design professionals through a series of design and
support programs. We plan to train more than 1,000
plumbing professionals annually,” he relates. KWC
America’s dedication to progressive training is
strengthened by the creation of its new, 9,000 sq. ft.
training facility Aquapunkt™ located just north of
Atlanta, GA. The name Aquapunkt™, derived from
the words “aqua” meaning water and the German
word “punkt” meaning point, represents a meeting
place to experience water in all of its forms and functions. Aquapunkt™ will train sales professionals, interior designers, architects and plumbers and provide
them with the
tools they need to
specify, sell, and
service KWC and
HANSA products.
KWC America has kept busy ensuring the effectiveness
and wide reach of its training programs. The challenge of promoting two foreign brands is not an easy
one, and the company president is acutely aware of
the differences between the European and U.S. markets. “Working with two world-class companies
offers us a lot of product opportunities. However, we
have to be diligent and make sure that they all are
ready for the North American market,” Marshall
explains. “In Europe, it is customary to use one-hole
faucets, but in America the three-hole faucet is more
commonplace. We received a lot of feedback from our
customers, and in response, HANSA has begun to
develop new three-hole faucets. Also, European
plumbing professionals are used to thermostatic
valves, while American installers deal primarily with
pressure balance valves, so we are ramping up this
assortment as well.”
Hansastela
February 1, 2008
The company
relies on showrooms to connect
its products with
the design community and tailors its training
programs “to
make specification and selling a
lot easier.” Some
of its programs
are specifically
devoted to specify-
The company is not limiting its efforts just to accommodating the needs of the American market. It also
takes on some pioneering roles, for example, in developing products for an aging population and people
with limited physical abilities. Europeans representing
these groups don’t favor bath and kitchen products
with hard to grip levers or designs that are difficult to
use. They have created demand for “universal design”
products – various hands-free and touch-pad devices
that can be used by all. The trick is not to produce
faucets whose design obviously serves physically challenged demographics. “Nobody likes to be reminded
of their challenges and prefers to use universal products that, instead of showing people’s weaknesses,
appeal to their vitality. KWC and HANSA are comcontinued on page 29
NEWSLEAK 27
Newsleak Color Advertising Opportunities
Newsleak is DPHA's official newsletter. The publication supports the organization's mission to increase
professionalism and assist in the development of stronger partnerships among independent showrooms,
manufacturers and manufacturer representatives. Established in 2002, DPHA is the nation's largest association of decorative plumbing and hardware professionals. Newsleak is published 8 times a year and
issued to nearly 500 DPHA members. Rates and specifications for advertisements are as follows:
Member Rates 4 Color Ads
Size
1X
3X
1/4
$525 $1,335
1/2
$670 $1,800
Full
$1,015 $2,610
8X
$3,00
$4,500
$6,000
Nonmember Rates 4 Color Ads
Size
1X
3X
8X
1/4
$1,050 $2,055 $6,000
1/2
$1,335 $3,600 $9,000
Full
$2,025 $5,220 $12,000
Member Rates 2 Color Ads
Size
1X
3X
1/4
$350 $890
1/2
$445 $1,200
Full
$675 $1,740
8X
$2,000
$3,000
$4,000
Nonmember Rates 2 Color Ads
Size
1X
3X
8X
1/4
$700
$1,780 $4,000
1/2
$890
$2,400 $6,000
Full
$1,350 $3,480 $8,000
Rates are not subject to agency commissions.
PREFERRED LOCATIONS
Back Cover add 25% of the cost
Inside Front Cover add 20% to the cost
Inside Back Cover add 15% to the cost
Two color black and PMS 876 (metallic gold)
Dimensions
1/4 = 7.25 wide by 2.25 high or 3.5 wide by 5 high
1/2 = 7.25 wide by 5 high or 3.5 wide by 10 high
Full = 7.5 wide by 10 high
For more information, contact DPHA at 1-888-411-8477.
Awards continued from page 18
Criteria for the award include:
●
●
●
●
●
Training programs
Customer service
Professionalism
Demonstrated ability to create value for lines
and showrooms
Cool Lines USA (2006)
Silvertip Marketing (2007)
Magruder Associates (2007)
Nominations are due June 15. Download nomination
forms online at www.dpha.net. To obtain more information, call the DPHA office at 1-888-411-8477.
Previous Winners
Williams Marketing (2005)
Luxury Marketing (2005)
Hot2Cold (2006)
February 1, 2008
NEWSLEAK 28
KWC America Profile continued from page 27
mitted to producing these kinds of
products,” says
Marshall.
One example is
the Hansacanyon
faucet that features a touch-pad
control for ease of
operation and illuminates the stream
Hansamurano E
of water with a
LED light band that
changes from blue to red indicating the water’s temperature. As observed by the industry’s media, “this
thing is guaranteed to blow the minds of your bathroom guests,” but it is also extremely user-friendly.
The newest addition to the award-winning
Hansamurano collection, Hansamurano E faucet features a proximity sensor and a manually operated
temperature preset mechanism. The sensor allows
the faucet to create a cascading waterfall of water in
response to the wave of a hand or by touching the
faucet. The water flow automatically stops when the
pre-set running time elapses or when the sensor is
activated a second time.
Supporting innovative design and function helps
both brands be widely noticed and appreciated in the
super competitive marketplace. The acumen of
HANSA Group’s designers comes to the consumer
on both sides of the Atlantic in the form of frequent
product extensions, new products and series. For
example, the new Hansacolourshower offers an
experience of a new kind of wellness that pampers
you with lighting
effects in all colors of
the rainbow in addition to enjoying the
pleasures of a gentle
stream of water from
above or a water
massage with the
showerhead from the
side. This shower
system uses high-performance LED lights
that create a chromatherapytic effect
to reduce stress and
promote well-being.
The
Hansamotion
February 1, 2008
Hansacolourshower and the Hansaclear lux hand
shower cover the entire color spectrum from soothing shades of blue and green to energizing tones of
red and orange.
HANSA also has responded creatively to the emerging trend that inspires people to experience water in
Hansacolourshower
forms found in nature. A 2007 Good Design winner,
the Hansamotion faucet captures the grace and beauty of a naturally flowing river, according to NOA’s
chief designer Michael Lammel. As the water pours
into the basin, the water takes on a fascinating braided form as it flows across the curved body of the fitting. “In order to design the Hansamotion collection, I toured and studied numerous rivers and lakes
to truly understand how water moves throughout
nature,” said the designer. “My goal was to design a
faucet that mirrors the beauty of nature, while still
maintaining the functionality needed in a home bath
environment.”
Innovative design and new product offerings provide
KWC America a competitive advantage and helps the
company to promote and sell its brands. DPHA also
is here to help. “Among the many benefits of KWC
America’s participation with DPHA, is the ability to
effectively reach the leading decorative plumbing and
hardware professionals,” says Marshall. “KWC and
HANSA have unique features and benefits that only
a professional can appreciate. Our research indicates
that more discerning consumers utilize industry professionals when determining products for their home.
This is why DPHA is a key partner to our company.”
KWC America is looking forward to further invigorating its brands and bringing the best of European
design to the United States.
NEWSLEAK 29
New Members
DPHA offers a hearty welcome aboard to the following new members:
Dealers
Lee Supply, 6610 Guion Road, P.O. Box 681430,
Indianapolis, IN 46268; 317-844-4434; 317-7055338 (f); [email protected] (e);
www.leesupply.net. The DPHA contact is Kelly
Dolan. The company operates eight showrooms.
New York Hardware, 1603 Superior Avenue, Costa
Mesa, CA 92627; 949-631-0631; 949-631-0613 (f);
[email protected] (e);
www.nyhardware.com. The DPHA liaison is Scott
Sarkisian. David Wilke sponsored the application.
Rim Plumbing & Heating Supply, Inc., 28 Jones
Street, Newburgh, NY 12550, 845-565-5220; 845565-3908 (f); [email protected] (e);
www.rimsupply.com. The DPHA contact is
Operations Manager Roxanne Lopilato. The company operates two showrooms. David Goldberg from
Damar Sales sponsored the application.
Vic’s Supply Company, Inc., 1864 Goodyear Avenue,
Ventura, CA 93003; 805-643-4565; 805-650-5400
(f); [email protected] (e);
www.vicssupply.com. Company President Andy
Lyskin is the contact.
Manufacturers
Houzer, 26 Van Dyke Avenue, New Brunswick, NJ
08901; 800-880-3639; 877-880-3654 (f);
[email protected] (e); www.houzersink.com. Ken
Fey, VP of Sales and Marketing, is the DPHA liaison.
The company specializes in bathroom and kitchen
sinks. Jim Rennolds, Al Rykus and John Strong sponsored the application.
Sedona Bronze Sinks, 2107 Yavapai Drive, Sedona,
AZ 86336; 928-204-2913 (p & f);
[email protected] and [email protected].
Co-owners Robert Myers and Richard Koury are the
DPHA contacts. The company manufactures bathroom sinks.
Sherle Wagner International, 300 E. 62nd Street, New
York, NY 10065; 212-758-3300; 317-466-1091 (f);
[email protected] (e);
www.sherlewagner.com. John Cairo is the DPHA
February 1, 2008
contact. Jeff Burton sponsored the application.
Sherle Wagner manufactures accessories, sinks, tubs,
vanities, lighting, toilets/bidets, bathroom faucets and
fixtures, cabinet hardware and wallpaper.
Representatives
RG Marketing Group, Inc., 1916 Crain Highway
South, Suite 20; Glen Burnie, MD 21061; 410-7878744; 410-787-9449 (f); [email protected] (e);
www.rgmgi.com. Julie Latzo is the DPHA contact.
The rep agency serves Pennsylvania, DC, Maryland,
Virginia, West Virginia, Delaware and Southern New
Jersey. Jamie Gregg sponsored the application.
K.L. Nicolai & Associates, Inc., 2440 North Glassell
Street, Suite E, Orange, CA 92865; 714-974-6334;
714-282-2841 (f); [email protected] (e);
www.klnicolai.com. Kristi Nicolai is the DPHA contact. The agency serves California, Nevada, Arizona
and New Mexico. Mike Mayo sponsored the application.
The Ronald T. Scala Company, Inc., 5934 N.
Wildwood, Chicago, IL 606036; 773-774-9651; 773774-9653 (f); [email protected] (e);
www.rtscala.com. Ronald T. Scala is the DPHA contact for this agency that services N. Illinois, Indiana,
Michigan and Wisconsin. Al Rykus, Tony Musso,
C.J. Schnakenberg and Bob Lando served as
application sponsors.
Steadfast Sales & Marketing, Inc., 423 Diem Woods
Drive, New Holland, PA 17557; 717-351-0472; 717351-0473 (f); [email protected] (e);
www.steadfastsales.com. Douglas Ellsworth is the
DPHA liaison. The agency serves New Jersey,
Delaware and Eastern Pennsylvania.
Ultimate Marketing Associates, Inc., 1165-D Chess
Drive, Foster City, CA 94404; 650-287-4340; 650287-4344 (f); [email protected] (e);
www.ultimatemarketing.com. Bob Bredel is the
DPHA contact. The agency serves Southern
California, Arizona and New Mexico.
NEWSLEAK 30
The Upside of a Down Economy
The picture does not look bright. Oil prices have
surpassed the $100 a barrel milestone before heading south. The dollar has reached an all-time low
against the euro. Many an economist believe that
inflation is a problem and recession is around the
corner if it has not already arrived. The subprime
mortgage debacle continues to weigh heavily on the
economy. Yes, 2008 is shaping up to be challenging
indeed. That does not mean you have to throw in
the towel and try to simply survive until the
rebound occurs. In fact, down economies historically have created opportunities for savvy entrepreneurs.
call centers in Tampa, Chicago and Dallas. The
decisions that major corporations make can benefit
the stealth and nimble independent business
because they provide access to talent that may be
laid off or looking to better their position with your
company.
Taking a glass is half full approach can yield significant benefits. It begins by accepting the fact certain
things you simply cannot control. There are other
elements of your business in which you have total
control. Can you take advantage of the softening
real estate market to buy your building, open in
new locations or negotiate lease terms even if your
lease is not up for renewal?
The downturn in real estate markets also may
prompt many homeowners to look at making
improvements instead of buying new. It is far easier to obtain a home equity loan than it is to qualify
for a new mortgage. Now is the time to expand
your marketing efforts as opposed to cutting back.
Sponsor new product introductions, training sessions, design competitions and other activities that
appeal to the design community and trades.
Showrooms, representatives and manufacturers can
partner to delve into niche markets that may not
have been served or have been under served.
Recent postings on the DPHA web site report that
multibranch retailers and publicly traded companies
are discounting for the first time, slashing expenses
and employees. According to the February 1
Atlanta Journal Constitution, Home Depot
announced that it was cutting its workforce by
10% at its headquarters. Two months earlier Big
Orange reported a 27% decline in third quarter
earnings and announced that it was closing three
Focusing on profits instead of sales is another effective strategy to respond to a tough economic climate. If you expect your sales volume to decline,
focus on profitability rather than growth. Analyze
the lines/showrooms that provide the greatest
return on investment.
There is a natural tendency to look at the downside
of every situation. There are opportunities in down
markets that if properly capitalized upon can make
lemonade out of lemons.
ISH Wish
DPHA Wish
DPHA will soon be surveying members to determine if anyone is interested in DPHA organizing
a trip to ISH, March 10-14, 2009. If there is sufficient interest, DPHA will make arrangements to
tour the international show with the possibility of
visiting European factories as part of the trip.
We can’t provide a lot of details until we know
how many people would be interested. Please be
on the lookout for the survey to be issued at the
end of February.
The DPHA Membership Committee is currently
surveying members to determine members’ familiarity with the benefits of DPHA membership, the
extent members take advantage of the benefits
available and to determine future benefits that
members would like for DPHA to provide in the
future. One of DPHA’s strategic objectives is to
perform a needs assessment. This survey is a first
step in accomplishing that goal. Please log onto the
DPHA web site, www.dpha.net, and complete the
survey.
February 1, 2008
NEWSLEAK 31
Greenwashing
The recent surge of environmental awareness in the
country has had a profound effect on construction.
The green building movement is gaining momentum,
and developers, hoteliers and homeowners are trying
to find ways to “green” their practices when they
can. That often involves buying green products.
However, these well-intentioned attempts and goodwill from industry professionals can easily be harmed
or negated by the rise of “greenwashing” – false or
misleading green marketing claims.
According to a study of environmental claims in
North American consumer markets, well-intentioned
consumers may be misled into purchasing products
that do not deliver on their environmental promises.
PA-based TerraChoice Environmental Marketing Inc.
conducted a survey of 1,018 consumer products bearing 1,753 environmental claims in six category-leading big box stores. It found that of the 1,018 products, all but one “made claims that are demonstrably
false or that risk misleading intended audiences.”
The study identified six patterns, or six sins of greenwashing, all of which relate to an act of misleading
consumers regarding the environmental practices of a
company or the environmental benefits of a product
or service. It tested claims of the products surveyed
against current best practices in environmental marketing. The sources for these best practices include
the International Organization for Standardization
(ISO), the U.S. Federal Trade Commission, U.S.
Environmental Protection Agency, Consumers Union,
and the Canadian Consumer Affairs Branch.
The six sins of greenwashing identified in the
TerraChoice study are:
•
•
•
•
•
•
Sin
Sin
Sin
Sin
Sin
Sin
of
of
of
of
of
of
the Hidden Trade-Off
No Proof
Vagueness
Irrelevance
Fibbing
Lesser of Two Evils
Sins of Hidden Trade-Off and No
Proof
The Sin of the Hidden Trade-Off was the most common sin encountered in 57% of the products.
According to the TerraChoice study, this sin is committed by suggesting a product is “green” based on a
February 1, 2008
single environmental attribute (the recycled content
of paper or metal, for example) or an unreasonably
narrow set of attributes (recycled content and chlorine free bleaching) without attention to other important, or even more important, environmental issues
(such as global warming, energy and water consumption and impacts on forests). “Such claims are not
usually false, but are used to paint a ‘greener’ picture
of the product than a more complete environmental
analysis would support,” the study found. For example, insulation products often claim indoor air quality
benefits without attention to other environmental
aspects such as recycled content, which could be so
low that the product cannot be recycled in an environmentally safe manner.
Product groups that are primarily affected by the Sin
of the Hidden Trade-Off include office technology
(printers, copiers, fax machines, ink cartridges) that
promote energy efficiency without attention to hazardous material content, indoor air quality or compatibility with recycled paper. Other product groups
frequently guilty of greenwashing are laundry and
dish detergents, air fresheners, bathroom cleaners,
flooring laminate, bags, multi-purpose cleaners, wood
panels and pesticides.
The second most frequent sin, Sin of No Proof
(26%), is defined as any environmental claim that
cannot be substantiated by easily accessible supporting information or by a reliable third-party certification. For example, many lamps and lights claim
energy efficiency without any supporting evidence or
certification.
Sins of Vagueness and Irrelevance
The Sin of Vagueness (11%) is committed by products whose green claims are so poorly defined or
broad that their real meaning is likely to be misunderstood by the consumer. For example, garden insecticides promoted as “chemical-free” commit the sin
of vagueness. “Chemical-free” and “Non-toxic” are
one of the most common greenwashing statements.
“Nothing is free of chemicals” and “everything is
toxic in sufficient dosage,” explains TerraChoice. All
plants, animals, humans and the products they produce are made of chemicals. Such seemingly innocuous substances as water, oxygen and salt all are
NEWSLEAK 33
Greenwashing continued from page 33
potentially hazardous. Other familiar claims like “All
Natural,” “Green”, “Environmentally friendly”, or
“Eco-conscious” are “utterly meaningless without
elaboration,” claims TerraChoice. The green claims
of “100% natural” bathroom cleaners surveyed in its
study did not explain what natural is.
The Sin of Irrelevance is more rare and accounts for
just 4% of green claims. This sin is committed by
making an environmental claim that may be truthful
but is unimportant and unhelpful for consumers seeking environmentally preferable products. For example, some products claim that they are free from chlorofluorocarbons (CFCs) – a principal contributor to
ozone depletion, even though CFCs have been banned
for almost 30 years, and no manufacturer includes
them in their products. However, the CFC-free claim
for insecticides, window cleaners and disinfectants
can be easily found in the market. CFC-free claims
are totally irrelevant and may serve to distract the
consumer from finding a truly greener option.
Sins of Fibbing and Lesser of
Two Evils
The Sin of Lesser of Two Evils (1%) is the sin of
making green claims that may be true within the
product category, but the whole category is of questionable environmental value. The most common
examples include “green” insecticides and herbicides
and “organic” cigarettes.
Finally, the Sin of Fibbing is committed by making
false environmental claims. The TerraChoice study
found that only a few products commit the Sin of
Fibbing by misusing or misrepresenting the certification by an independent authority. For example, a
caulking product may claim to be “Energy Star” registered, but the official Energy Star web site suggests
this is false.
How to Avoid Greenwashing?
The TerraChoice study showed that greenwashing is
pervasive and harmful to the consumer and to the
manufacturers making those claims. Greenwashing
misleads well-intentioned consumers into buying
products that do not deliver on their environmental
promise. It slows down the penetration of real environmental innovation in the marketplace by taking
market share away from products that offer more
February 1, 2008
legitimate environmental benefits. It also may contribute to cynicism and doubt about all environmental
claims, which can result in fewer financial incentives
for green product innovation and manufacturing and
more government regulations.
To counteract green washing practices, the government and standard-setting organizations are becoming
more proactive. The U.S. Federal Trade Commission
has developed guidelines for proper use of environmental claims. The International Organization for
Standardization, in ISO 14024, establishes guidelines
for proper use of environmental information.
Notwithstanding these efforts, greenwashing continues to be widespread. TerraChoice suggests looking
for reliable eco-labels such as EcoLogoCM or Green
Seal. Eco-labeling is included in ISO 14024 standards
and recognized around the world. If a product has
EcoLogoCM or Green Seal label, it means that it has
been certified by a qualified and independent thirdparty.
Increasingly, decorative plumbing and hardware manufacturers are striving to improve the environmental
performance of their products. Caution should be
exercised. Making claims that showerheads are green
because they include flow restrictors may not tell the
entire story. Flow restrictors are required by code. If
you sell 1.6 gallon toilets as green that also could be
interpreted as misleading because they also are
required by code. Decorative plumbing and hardware
products by their very nature cannot easily be environmentally friendly. Most brass fixtures contain
lead. Shower system with multiple spray devices and
large soaking, jetted or air tubs are not water
efficient.
Genuine environmental leadership is rewarded in the
marketplace by price premiums, public respect and
increased visibility. Americans who increasingly use
their spending as an expression of their environmental
commitment are potential customers. This is why it
is important not to get discouraged by the flow of
false or misleading green marketing, but use better
judgment in marketing and selling products that are
genuinely environmentally preferable. Doing so will
benefit your business, your customers and the planet.
NEWSLEAK 34
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