Mike Root’s Blog

Being from Omaha, I have a better than working knowledge of home grown Berkshire Hathaway Company and its iconic leader Warren Buffett.  As most should know, Berkshire Hathaway is a company that has the highest priced shares traded on the stock market (at one time over $150,000 for one share).  This value has kept Mr. Buffett as one of the top 3 wealthiest people in the world for over a decade.
I have met several people that are original investors and are now worth millions and in some cases billions.  In most cases, except for their philanthropy around Omaha, these people live their daily lives without the ostentatious lifestyle normally associated with such great wealth. 
I personally know families that built marvelous businesses and sold out to Mr. Buffett.  In every case they got up the next morning, went to work, and continued to run the same business with no changes in their personal work effort.  These entrepreneurs turned Berkshire millionaires continued to give every bit of effort working for Warren Buffett as they did for themselves.  They stand in sharp contrast to all the greed that has recently been on display from Wall Street bankers and corporate chieftains who are strictly in it for the money.  The Berkshire folks I have met over the years are a much more respectable group of folks, and truly an embodiment of what has made our country great
There is no better place to get a feel of the inner workings of a Berkshire Hathaway type of company and quality of an entrepreneur that built it than in reading a brand new book entitled How to Build a Business Warren Buffett Would Buy;  The R. C. Willey Story by Jeff Benedict.   It is the story of how a small door to door sales operation started in the Utah countryside turned into a Billion Dollar Retailer.   R. C. Willey is respected by consumers throughout Utah, Nevada, Idaho and California as well as manufacturers in the home furnishings, electronics and appliance industries.
More importantly, this is a story of a remarkable entrepreneur, Bill Child.  He was the reluctant retailer that led this company from 1954 when founder R. C. Willey suddenly passed away.  Bill inherited a business with no assets except customer’s goodwill, and he grew the business over time into a business that Warren Buffett purchased for $175 million in stock.
I would go so far as to say that if you are in the furniture business, the retail business, or you service any type of retail business, this is a must read book (to order go to www.TheRCWilleyStory.com).  This is also a terrific book full of wisdom for the entrepreneur or small businessman who wants to grow his business over time. 
There are no quick fix solutions to growing a main street business.  We are not talking about becoming a Google millionaire.  It takes hard work, dedicated employees, loyal customers and a willingness to try new things so that the business does not become stagnant.  This book encompasses all of that plus what it takes to build a rags to riches story while still holding true to your inner convictions.
I think all my friends that are in the furniture business will empathize with many of the struggles to build a business one sale at a time.  I think many of my friends working in small business will relate to the challenges and the innovation it takes to grow a profitable enterprise.  And, I think many of my friends that are struggling entrepreneurs will be inspired by the success of having a lifetime of hard work rewarded.
One of the chapters that will resonate with any serious business person and can easily be incorporated into your own business philosophy is the 10th Chapter “Rules to Live By”.  These are 8 common sense principles that are backed up by easy to relate anecdotes.  For example, number 4 is simply put - Be Honest.  I loved their saying “If you always tell the truth, you never have to remember what you said”.  If Wall Street and Washington acted with this integrity we wouldn’t have the problems we have today.
In the book Bill Child is quoted as saying “The world changes.  Many of the furniture companies that have gone out of business have done so because they failed to change.”  We have that challenge today in the furniture business (as do many other industries) with lots of change being thrown at us.  It will never be the same because “customers’ needs and expectations change”. 
Whether you are a furniture rep, a retailer or manufacturer, you need to adapt to the changes or be overrun by them.  I know several years ago we saw the erosion of commissions for furniture reps.  We could have complained and got angry that the rep was being squeezed, but the reality was that the business has changed.  We looked at the landscape and realized the large retailers like Walmart figured out a way to make a good living on very thin margins by working on volume.  Consequently we designed our business with a volume model that has served us well. 
Of course there are several other ways to make money including selling luxury products at a premium price to the affluent.  It doesn’t matter what the model as long as you look at the landscape, determine your unique selling proposition and design your business model around serving that customer. 
There are fourteen management principles and philosophies gleaned of decades of hard work and hard knocks that Bill Child lists at the end of the book.  These simple ideas are worth more than a masters in business because they are easy to understand and proven to work. 
Finally, in challenging times like these you can never be complacent.  No matter how successful you have been, as Bill says “You can only stand on the laurels of what you did yesterday for a few minutes.  Then you have the challenges of tomorrow.”  There are definitely challenges and this book will inspire you to relook at your business and build for tomorrow.
I could write for pages about all the great takeaways in this book, but that would be doing a disservice to the author and to you.  There are no excuses not to get the book right now.  Go to www.TheRCWilleyStory.com and order the book.  You will be glad you did.

Though I have met Mr. Buffett in Omaha a few times, the only picture I ever had taken with him was at an R. C. Willey store Grand Opening event in Las Vegas.

Wealth Creating Strategies from the World's Most Successful Entrepreneurs

This past week I was in Chicago at a conference and I was introduced to 900 plus people as an author.  That was pretty cool.  Dan Kennedy, Bill Glazer, Lee Milteer asked me to contribute to a book called Secrets of Peak Performers, Wealth Creating Strategies from the World’s Most Successful Entrepreneurs.  I am very pleased at how the final product came out.

If you would like a copy you can go to www.SecretsofPeakPerformers.com.  There are several very good contributions that can apply to anyone in any occupation.

Be sure to let me know what you think.

That’s right, I just got copies of my new book

Secrets of Peak Performers: Wealth Strategies from the World’s Most Successful Entrepreneurs

It will publicly be launched in Chicago May 1.  I’ll talk more about it then

Here’s the best part, if you aren’t a rep but you want the benefits you can join as an associate member and still get all the discounts.  So read on…

Greetings from Omaha

This email is to share with you details about an organization that could be quite valuable to you in today’s emerging and turbulent economy.  We are all looking for a way to cut expenses and to do a better job as professional furniture sales people.  I have found a gem for you to consider.

As an independent furniture representative for a number of lines, I had not paid much attention to our trade association – The

International Home Furniture Representatives Association (IHFRA).

I feel as a member of the industry I should join my trade organization.  Almost       1200 members  really offers a voice to Furniture Representatives in the Industry, in the local Community through local Chapters and more and more in Washington DC. 

For example, our wonderful politicians are considering legislation to possibly take away our mileage deductions and even put a mileage tax on every mile we drive.  The IHFRA along with the NHFA (Retail trade association) is sponsoring a march on DC to discuss these issues that are important to our industry with Senators and Representatives. 

It is very important that we have a trade Association to stand up for our common good.

That is why I joined the organization, but until recently I was not aware of all the benefits.   Recently, the organization asked me to join their Executive Board as the Secretary Treasurer.  I was thrilled with the honor, but also realized I better find out exactly what the heck the trade Association offered.  I was pleasantly surprised to realize the benefits far exceed the cost to join. 

For less than $12 a month (that’s right 40 cents a day) you will get great stuff!

Here is a listing of a few of the best benefits that members have reported:

·         The lowest discount Office Depot offers any company in the country.  It’s like 2.2 cents a copy so if you make sales presentations and have lots of handouts, this is perfect and can justify the cost of the membership with this discount alone.  This discount applies to most items in the store so you save big when you buy from them.

·         A corporate Lodging Card that gives huge discounts to a number of regional and national hotel chains.  In many cases this is substantially better than the AAA discount.  One night every other month using this card will pay for your dues.  If you use the card monthly you will get back double, triple or quadruple your dues with just this one benefit.  It’s like Free Money!

·         New this year is a discount program with FED EX which I find most useful for getting the attention of your buyers when sending a proposal.  FED EX delivery is great because its perceived value is high and the buyer will open that before he or she opens anything else.  And now this great marketing idea is much less expensive thanks to the discount we get with the IHFRA membership.

·         Jos A. Banks offers some of the best values in suits and business casual attire.  With your membership those great values are even better when you get 20% OFF all regularly priced goods.

These are a couple of ways you can justify paying for the minimal membership fee.  But look what else you get if you are a member of the Association:

1.   A monthly rep newsletter that tells you what you need to know about being a furniture rep.  This comes FREE with the membership and keeps you in touch with furniture industry trends for the Rep.

2.   Access to all kinds of insurance coverage plans

3.   Specials on cell phone plans

4.   Pagers at market

5.   Email notification of factories looking for a new rep

6.   Special parking at North Carolina market

7.   Access to the Rep Member Directory across the country

8.   And the best thing Reps like is what I call the Fast Pass.  It’s the Rep pin that lets you breeze by Security in the market buildings in both High Point and Las Vegas.  No more fumbling for your building pass.  Just wear the pin on your lapel and you buzz right through the lines.

So in order to start saving yourself some money during these hard times and to better your career as a professional furniture sales rep you need to join today.  Apply online at

www.furniturerep.org

Kathy will answer any of your questions and send you an application if requested.  Thanks so much for your interest.  This could be one of the best investments you make in 2009.  

Sincerely,

Mike Root

Mike Root

PS.  If you stop by the office in the IHFC building during market Kathy assures me that she will get you a REP pin (Market Fast Pass) in time to use if you join. 

PSS.  Don’t delay because you will want that Office Depot and Fed Ex discounts when you do your after market follow up.

The following article was published in the monthly newsletter ROOTNOTES

Recently I had the good fortune to be chosen by my peers as the newest member of the Executive Committee of the International Home Furniture Representative’s Association (IHFRA).  It is an Association with almost 1200 Industry Members.  There are a couple of events at the upcoming market for the benefit of the Industry that IHFRA is sponsoring.  They also have good national discount programs in place that more than pay for the annual dues.  Anyone in the industry is welcome to join.

I tell you this because as the new guy in the organization, it appears that a reason I got the job was because I shared with them all the great ways I think they can be a very viable force in the industry.  Let’s face it, times have been tough for our industry and no one is anymore  challenged than the middleman between the factory and the retailer.  Many reps feel all they do is get squeezed on both ends and no one appreciates their efforts. 

I believe the rep still has a valuable place to champion the retailer’s needs back to the factories.  Manufacturer’s strength is making a good quality product that will sell at retail and deliver on time.  The retailer’s job is to merchandise, promote, sell and service the manufacturer’s product.  They don’t want to create the ideas, manufacture or worry about delivery.  The rep’s job is to help both parties understand each other and make the relationship as smooth as possible.  In other words, the good rep’s provide COMMUNICATION between all parties.

What I shared with the nominating committee is the need for the organization to be more proactive  just like all rep’s need to be more proactive.  We need to help dealer’s figure out ways to sell the product to the end consumer with Promotional Ideas. Those ideas in a free report at www.FurniturePromotions.com is one way to do that. 

Another way is with marketing tips found at www.FurnitureInsidersClub.com.

Reps need to help factories have the right product, delivered at the right time to the retailers so that the retailers can satisfy the customer.  Working with retailers to set projections and communicating such to the factories is what I do with all my accounts so that we can stay in stock when the retailer needs it most.

But above all, communication is the key.  My dealers get a monthly newsletter and hopefully find value in it.  I am very intrigued with online social media and have begun to post to this blog.  This is the best place to keep up with all my various marketing projects as well as get my contact info.  You’ll also find me in social media as follows

Facebook: www.facebook.com/people/Mike-Root/768658562

Linked In: www.linkedin.com/in/mikeroot

Twitter: www.twitter/meroot   

People may laugh at this social media stuff and I am still just learning it, but based on early results, I believe it will be imperative for businesses to have a presence there to communicate with their customers.  This nontraditional WEB 2.0 communication where you can interact with your customers online is hitting other industries.  The furniture industry will be right around the corner.  I will be communicating my progress in social media over time on this blog.  I also will be sending out a weekly ezine with marketing tips so make sure I have your email if you would like to be included in this ongoing analysis of how the conversations we have with our customers are changing.  Let me know what you think.

It was almost as cold as when I played Pebble Beach

Earlier this month I looked at the calendar and realized that golf season in Nebraska is just about here.  To try and prepare I scheduled an appointment with my golf instructor, Tom Sieckmann.  He’s a former PGA tour pro, a trainer for Dave Pelz, and a wealth of information.  I’ve taken lessons from Tom over the last couple of years and have seen my golf game improve to the low single digits.

So Tom and I meet at the appointed time at Omaha Country Club only to find the 70 degree temperatures from the week before had quickly disappeared into the 40’s.  Tom and I worked for an hour with little sense of accomplishment on my part as it is early in the season for a guy who lives in a cold weather state.

What I was really excited about was the progress of Tom’s new golf tracking system that he developed after years of teaching.  This system is designed to laser focus in on areas of a golfers game that need extra attention.  This system is not for the ordinary hack golfer, but for the student who really wants to improve.  Tom has taken his experience on the PGA tour along with years of teaching at the highest levels to create a feedback system that until now only those on the PGA Tour Circuit could benefit from. 

Tom indicated I would be able to begin Beta testing this new system within a month or so.  I can hardly wait.  What I know about this system makes me believe I will be able to get my game to the level of a scratch golfer this summer.

Tom has asked I don’t say any more until we have a chance to test it some more.  If you are interested in my progress or if you are interested in learning more about this system to improve your golf game this summer, please respond to this post and I will keep you in the loop.

Until then, let’s hope it thaws out so those of us in colder climates can get to the links soon.

Hit ‘em straight 

Mike

Today, I am at a national furniture association meeting of independent furniture representatives.  We serve a valuable position in the industry representing factories and retailers in the distribution of furniture from manufacturing to the ultimate consumer.  Most of the people involved are individual sales people or teams of sales people.  Our position as salesmen is very similar to representatives in hundreds of other industries from computers to shoes to heavy equipment.  We hear the problems of manufacturers as well as the incredible challenges of retailers in today’s tough economic climate.

It is with this background that I tell you about an in depth discussion we had on the executive committee meeting about the proposed card check legislation.  Through the course of the discussion it was revealed that small and medium based domestic factories in our industry would be forced to shut down if this legislation is passed.  These are not idle threats but rather comments from hard working reps who fear that their livelihood and income of representing these lines could go away if the factories close.  Profits in the furniture industry have eroded significantly over the years as a lot of the manufacturing base has moved overseas or to Mexico.  If you pass the card check proposal, you will deplete the manufacturing sector even more.  And it is not just in my industry but in many.

Then let’s look at the retailers.  I sell to several large retailers including Nebraska Furniture Mart and an equivalent sized retailer in Denver - American Furniture Warehosue.  Jake Jabs owner of American Furniture Warehouse told me he is actively against this legislation and will be testifying before Congress.  Retail margins are so tight, and the consumer climate so difficult for all retailers that adding additional costs and burdens onto struggling retailers will only increase the amount of firms that go out across the country.  This of course will further increase the unemployment nationwide.  Not to mention the added complexity and costs this legislation will incur on stifling small and medium size businesses.

I am 100% against this legislation.  What we need today is help in growing our businesses so we can pay off the massive debt the country inevitably will incur.  If we chase businesses offshore or if we stifle businesses from growing because of onerous legislation like the card check proposal, then the free enterprise system and the entrepreneurial spirit that has made the country great will be sorely challenged. 

You need to look no further than Detroit and the mess of General Motors to see the kind of trouble you will be subjecting the entire country to if you pass the card check legislation. 

Thanks for your considerations,

Your constituent and neighbor,

Mike Root

Over my 30 + year career, I have been selling and marketing products and services, primarily related to the furniture industry.  As a salesman and marketer I have been blown away by this whole concept of social networking. 

I signed up for a Twitter account and within 48 hours I had over 50 people in my network.  My websites are getting hits from people I haven’t met except thru Linked In or Facebook.  It’s an interesting that in the sales world I grew up in, there was lots of one on one interaction.  If you are a retailer you showed the product in a showroom and persuaded the customer to purchase.  As a wholesaler or rep, you meet face to face with buyers at trade shows or their place of business.

But now people will buy over the Internet with people they don’t know and have never met.  The efficiency of the transaction is incredible.  So even the old brick and mortar businesses like furniture sales have to take a look at these new medias and figure out how they play out in their business strategies.

My blog will be a moving picture of what I am learning about these new marketing tools that i think are really cool.  Since my background is furniture many examples may be related to that.  In my humble opinion all businesses are really the same when it comes right down to marketing and sales so these lessons can apply to anyone. 

Since my passion is golf, I hope many more examples will be related to helping others better their golf game through easy tricks I have learned over the years.  You’ll hear alot more about that as the golf season in Nebraska finally becomes a reality sometime around the middle of May

I admire all these individuals who have made such a positive impact on society over the years.  So I think to myself, how can I make a difference in the world today.  If I want to give back because of all I have been blessed with, the easiest way in today’s age is through a blog.  Tell the world of my experiences, and maybe it will help someone else along their path.

A few categories I’ll share with you from time to time are as follows

• Entrepreneurial tips about growing a small business
• Marketing ideas and promotions
• Sales and customer service thoughts
• Working with family in business
• Stuff about the furniture business and sometimes about retailers as well
• Personal and sometimes practical anecdotes
• Travels across the US
• Books I have read and enjoyed (or not and why)
• My favorite category will be golf related because I love golf

I’ll try very hard to tone down any political rhetoric.  It may however, be a challenge for me from time to time to not write about the stupidity of the negative news media that bombards us daily and the complete lack of comprehension from Washington DC of what small businesses and entrepreneurs have to go through.   

I am generally a positive fellow, and that will be the tone I’ll try to set in my blog.  Please be sure to respond anytime with feedback. 

If I don’t hear from anyone I will assume that it’s just my wife and mother reading.  Well I think both of them would want to read what I write —-well at least my mother will want to read what I write —- won’t you mom?