WE HAVE OVER 100 YEARS OF EXPERIENCE OPERATING FURNITURE STORES & MANAGING HIGH IMPACT PROMOTIONAL SALES FOR FURNITURE RETAILERS.
WHAT WE DO
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There are times when furniture retailers underperform, have more inventory than their demand justifies, sales slowdown or cash flow is compromised. HIP can help alleviate the stress of these issues with a high impact sales event.
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Cash raising sales are HIP’s bread and butter. The process for creating a cash raising sale is the same as a store closing event. HIP has successfully run 100’s of cash raising events and generated enormous profits for our clients. On numerous occasions we have helped store owners keep their store open and avoid a store closing sale via a HIP led cash raising event.
Helping furniture retailers turn their company around and save their store for future generations is the underlying guiding principle of HIP and is what our company was created to do.
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Cash raising events require more skill, creativity and commitment to execute successfully. These events are where HIP’s extensive experience in promotion and day-to-day retail operations makes an enormous difference.
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The results of our cash raising events are typically comparable to our store closing events. We are equally determined to maximize your financial return regardless of the event we run for your company.
Inventory Buyouts
In certain situations, store owners are interested in a third party purchasing their inventory and assuming control of their store for an event. On a case by case basis HIP can provide this exit strategy.
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Consulting
The co-managers of HIP have many years of experience in the furniture business and operating large stores. We have also developed many relationships in the furniture business and beyond. We can advise our clients on matters including but not limited to marketing, sales, merchandising, financial improvements, real estate transactions and operational improvements.
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Turnarounds
We are experts at maximizing returns when closing stores; however, our true passion is helping store owners keep their stores open. We accomplish that goal in a variety of ways including cash raising events. We call these events “Staying in Business Sales.”
There are many reasons stores close. Changing economic conditions, demographic shifts, sudden changes in management and liquidity events are just some of the issues that can have a significant impact on a company. The key to not going out of business is recognizing issues early and proactively addressing them.
HIP’s principals have real world experience in every aspect of managing distressed furniture retail companies. HIP can assist your company in the following areas:
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Marketing Analysis and strategy
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Sales Strategy
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Merchandising Strategy
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Improve Operational effectiveness
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Re-establishing credit
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Asset Based Lending
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Develop and implement a long-term business strategy
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Effectively communicate and work with your companies’ suppliers, customers and other stakeholders involved in a turnaround
When you hire HIP to assist you in your efforts to turn your company’s performance around, we hit the ground running. We get to work immediately on the issues we can quickly address and will have the largest possible impact on your company’s profitability.
Through our contacts we can address virtually any issue that exists or may arise. In a turnaround situation, many issues are time sensitive and it is critical that an all interested parties move quickly to find an acceptable resolution and effectively communicate those solutions to the various parties involved in the turnaround.
EVENT SALES
Grand Opening Sales
You only have one grand opening for your store. Store owners absolutely must make the most out of a grand opening. Grand openings provide several opportunities. There is the obvious opportunity for a significant promotional event; however, equally important, a huge grand opening event allows you to make a big splash in the market and present a great first impression.
Grand openings need to be coordinated very carefully. HIP has opened dozens of stores from 5,000 square feet to 100,000 square feet. The HIP principals and Managers have an unapparelled expertise in grand opening events. Let us make your grand opening one to remember.
Anniversary Sales
A significant company anniversary is a milestone and should not be wasted. Anniversary sales can be a wonderful time to celebrate the success of your company.
HIP can help you maximize the sales opportunity that is presented by significant store anniversaries.
Retirement Sales
A change in ownership, management or a passing of duties from one generation to another can be an exciting and stressful time for everyone involved. HIP can turn a retirement into a very profitable event.
A HIP run retirement sale will help generate a significant financial return for the store and help the transition from one manager to another be a smooth one.
Going out of business Sales
The store closing process is a specialized and complex procedure that requires the precise knowledge of merchandising and inventory discounting rules.
Because we understand the value of products in specific inventory categories, we are able to implement customized plans that offer you maximum value.
HIP has one goal for Going Out of Business Sales: achieving the highest recovery possible.
Liquidation Sales
Don’t know how or where to begin marketing your excess assets and inventory?
HIP has access to a wide variety of resources and has forged strong relationships in the vendor community to support your company’s liquidation sales.
We can provide you with current industry data to attract prospective clients and drive revenue in almost any market.
No other company has the passion we do for liquidation and no other company can maximize your return like HIP.
FREQUENTLY ASKED QUESTIONS
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Q: What can a promoter do that I cannot do?
A: This question is perhaps the most important question a store owner can ask. HIP’s managers have run 100’s of high impact sales in every state in the country. We have a strategy that works and is time tested. That strategy includes advertising, sales, merchandising and pricing.
These four elements are like the legs on a stool. If one is weak, the stool may fall. The legs must work in harmony to have a successful event and HIP has specific methods that we use that are unique to our company. Store owners are usually good at running day to day store operations; however, our sales are not typical and require a different approach. HIP is an expert at this approach and these events.
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Q: How much business will we do during our event?
A: No company can guarantee what your event will do or even if your event will be successful. If anyone makes this guarantee or predicts with certainty that your event is going to be a wild success you should tread carefully. What we can do is share our typical results.
HIP has planned, organized and executed many high impact events with outstanding results. We almost always exceed our client’s expectations for sales and gross margin. We frequently achieve sales volume in excess of one year’s business in 90 days. In some cases, we have produced multiple years’ worth of sales over a 120-day period.
With that said, and equally as important, we typically finish our sales with a higher gross margin than the store typically achieves in its normal business operations. We are very proud of that accomplishment.
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Q: Where do your salespeople come from?
A: Perhaps nothing is more important to the success of an event than the salespeople we bring into your sale. We strive to match the personalities of the salespeople to your store and your customers. We work with the same salespeople time and time again and only work with the best.
Our sales people are 100% commission. They do not get paid unless they produce and they are true professionals who know us and our system.
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Q: I’ve heard that high impact sales never make money for the retailer. Is that true?
A: It is not true that high impact events never make money for the retailer. It is a fact that HIP has run events for retailers who were on the verge of going out of business and put them back on sound financial footing.
It is true that if an event is poorly planned and executed, if there are undisclosed fees or hidden fees, if there is not absolute transparency on the part of the company you hire to run your sale and you as an owner, or if sound budgeting principles are not followed, many events will lose money and can create an even worse situation for a retailer. HIP does not have hidden fees. We do not charge any administrative or housing fees. We charge a flat fee and it is 100% commission based. Very simply, if we don’t generate sales at an acceptable gross margin we don’t get paid period.
HIP can provide many references from store owners that can share their experiences with you. We are proud to say that our clients have become some of our very good friends.
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Q: We were told that promoters mark up to mark down, is that true?
A: Yes and no. Pricing is determined on a case by case basis. In most cases we find that retailers undervalue the goods they sell. Through the sales process, HIP can typically achieve a better gross margin and more volume than our clients during our events. Our methodology has been honed over the course of many events. With that said, HIP is always sensitive to your store’s credibility and reputation. We want to support and enhance your reputation not damage it.
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Q: What will happen to my employees during the event?
A: HIP works with every store owner to determine the best role for your employees. In many cases we incorporate them into the event and train them on our method of selling. Many of your salespeople will be more effective after we are gone. In fact, in one case we ran an event using only the store’s sales associates and it was a hugely successful event.
In some cases, it is better for the store sales associates to work in a support role. It is different at every event and we will work with you to find the correct solution.
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Q: Our store has been struggling financially and does not have money to advertise or purchase new inventory. How can we get started?
A: On a case by case basis, HIP may provide advertising funds to start an event. Typically, once the event gets started the event will pay for itself. In addition, we may provide inventory to the store to maximize sales. HIP will work with you to get started and maximize the profit of the sale.
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Q: What type of advertising does HIP do?
A: Our advertising strategy is different for every sale. What works for one may not work for another. Advertising is highly specialized. Our ads are almost always more promotional than our client usually runs but that is the nature of our events. As with everything we do, we strive to maintain your reputation while generating extraordinary sales volume and profit.
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Q: You mentioned that one of the keys to a successful event is merchandising? How so?
A: Having the correct merchandise is critical for success! Merchandising is handled by HIP’s two managing partners. HIP does not delegate merchandising to anyone else. HIP has many years of merchandising experience in traditional furniture stores as well as in the promotional business. These two skill sets, while similar, are different and we are highly skilled at both.
If we bring merchandise into a sale we take the risk. You never pay for it until and if it is sold. If the merchandise we supply doesn’t sell we deal with it end of story!
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Q: What is the duration of an event?
A: Duration of our events is highly dependent on many factors such as the community and the theme. We do not run our events into the ground. In our experience, the only thing worse than a sale that ends too early is an sale that runs too long. Typically, our events run from 60 to 120 days.
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Q: What’s my role, as an owner, during the event?
A: You can be as involved as you want to be; however, in many cases our selling method works better when the store owner is not visible on the floor. With that said, we will never ask you to leave or make you feel uncomfortable. We are a guest in your house but you still own the house and we respect that. Above all, we want you to be excited by all the of the buyers we will bring into your store!
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Q: If I want to close my store will you purchase my inventory?
A: Possibly, an inventory buyout is one option we can discuss. The correct exit strategy for you is highly dependent on many factors. Let’s discuss what is best for you and your family.
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Q: Can HIP help sell my fixtures and other non-inventory assets?
A: The simple answer is absolutely!
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Q: How do we get started?
A: Simply can John Dixon or Rodney Finger and let us know when you would like to meet and discuss your event. We will show up ready to go to work and earn your recommendation!