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Home Furnishings: Multiple Check Boosts Sales

Posted by Tom Lombardo | Wed, Jun 18, 2014 @ 04:10 PM

High Point MarketIndustry analysts at the High Point Market show in April and the International Contemporary Furniture Fair in May exhibited a level of optimism almost as alluring as the gorgeous exhibits themselves – something furniture store owners and managers haven’t heard in quite a while. If they’re right and if this year signals the beginning of a long-term recovery, then every new customer you meet could become a stable one who brings you referrals.

Understanding who they are, why they’re in your store, what they want and how they want to pay may have the potential to boost your profitability now and to set you up for significant expansion over the next year.

Who They Are

Homeowners make up most of your clientèle, and the analyst’s optimism largely arose from the housing market. Home ownership peaked in 2005 at 69% and has declined steadily ever since; at 65.2% it is now at its lowest rate since 1995.

Housing starts were anemic throughout the Great Recession, but this year they are finally on track to break a million, making this the first time they’ve approached the historic norm of 1.5 million.

Why They’re in Your Store

So, for the first time in years a significant portion of your customers need to furnish their new home, and few things in life are as wonderful as a homemaker looking to do just that. Now that there are more of them out there, you need to be sure they stop at your store. As the venerable Jerry Epperson said to the High Point Market crowd, “If you act like you’re still in a recession, you will be.”

He recommends sprucing up your parking lot, putting bright and interesting displays where they can be seen from the street, and throwing away your “Huge Sale Today Only” sign (especially if it’s been hanging over your door for months). He says successful stores re-arrange their entire showroom every two to three weeks so each time a customer returns it looks different, which can accelerate throughput.

A recent study identified things that repel shoppers: the dubious “Sale!” promotions Epperson cautioned against topped the list, along with overheated stores, loud music and salespeople who make them feel “old." Furniture stores were one of the top five offenders, and since that newly minted homemaker will probably visit you and all your competitors before making a purchase, your store’s presentation could easily be the differentiator that closes the deal for you.

What They Want

Let big-box warehouses compete with online retailers to sell generic furnishings as cheaply as possible – you know that over the recession a great many high-end stores went out of business, and now that those customers are back in the market that’s the demographic you want to target.

They’re tired of all furniture looking alike, and they’re ready to make their home look unique. Beige is out and color is in – especially blues. People want glamour, they want pleats, they want tables that make a statement, and they want everything to be environmentally responsible. They also want metallic leather – a lot of metallic leather, which now accounts for nearly 38% of the high-end chairs and couches sold.

How They Want to Pay

You’ve rearranged your showroom often enough so your customer has seen everything three times, each time in a different way. The music is low, the temperature is pleasant, the price tags don’t scream “Buy NOW!” and – most importantly perhaps – your salesperson has made your customer feel young.

Her satisfaction couldn’t be higher. Now that she’s ready to pay, you need to be certain that you can close the deal. She learned some tough lessons from the recession, and she’s one of the consumers who pushed down the nationwide prevalence of credit cards 64%.

She doesn’t want to finance anything. She might be interested in layaway, but you have something even better: a multiple check option that lets her write two to four checks to be deposited over the course of the next thirty days. This is one area where big box and online retailers – and probably your local rivals as well – cannot compete

Depending on your check processing provider, each of those checks could be guaranteed, and if they are you can enjoy watching your gleeful customer take everything home right away with the knowledge that you’ll get paid even if one of her checks bounces.

Oh, one last thing – as she bounds out the door to beat the delivery truck back to her house, be sure to ask for a referral! Click here to learn how to make this happen.

 

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Topics: Home Furnishings, Increase Sales, Multiple Check

Written by Tom Lombardo