iPads can enhance, some say revolutionize, selling in the home furnishings industry
Susan Dickenson -- Home Accents Today, 7/21/2011 10:34:54 AM
Parts 1 and 2 in this 3-part series about the iPad and how tablet computing is changing the way the home accents industry does business, ran in the June and July issues of Home Accents Today. Part 3, to publish in August, examines some of the uses for tablets at retail, in stores and online.
In Parts 1 and 2, home furnishings manufacturers, sales reps and software developers discussed the catalog and presentation apps they’re using, and have developed, to enhance the wholesale sales, presentation and organization processes.
Apple sold nearly 15 million iPads in 2010. IDC market intelligence group predicts that 44 million tablets will ship worldwide this year, and as many as 70 million units in 2012. Almost weekly, an introduction or upgrade of a competing tablet device is announced. But, so far, it appears to be the iPad that has found a niche with sellers of home furnishings as a more efficient way to present and sell lamps, wall décor, accessories, rugs and accent furniture.
Several manufacturers and reps saw the potential, early on: An ultra-lightweight computer with exceptional photo quality, an easy and intuitive operating system, significant storage and processing capacity, long-lasting battery power, and the ability to communicate with the home office 24/7 from just about anywhere.
For those early adopters, the iPad is replacing product photos and catalogs, enhancing their sales presentations and keeping them better organized. Some of them have taken it a step farther by developing in-house applications for a bigger user audience, distributing them via Apple's online app store.
Some early iPad adopters were at the Spring High Point Market, touting the device as the ideal tool for product presentation, selling and/or order-taking. Everyone interviewed by Home Accents Today on the subject agreed it's a great way to visually present and sell product, but there's still room for a lot more players. For those who haven't tapped into tablets yet, it's the "When?" "Where do I start?" and "At what price?" questions that remain.
CHICAGO-BASED PORT 68 GOT ON BOARD EARLY with its own sales and presentation app for the iPad, developed relatively inexpensively in-house. Michael Yip, president of the lighting and accents company, said it has dramatically improved his sales process and customers "love it."
"We have about 10 people using the iPad, and the sales reps put their other lines on it as well. All of our product photos and information - about 450 products - are kept up to date, and reps can check inventory and delivery information by email or phone call," he said.
Yip said Port 68's IT department suggested the idea, built the company's iPad catalog using iBooks, and didn't purchase any additional software. "We chose to go this route for several reasons, most of all the photo quality and 
Kelly Billingsley, sales and marketing VP at botanicals manufacturer NDI, said her salespeople and customers love NDI’s new Urnicus-developed app, which launched in May.
ease of use, and plan to find more ways to enhance our operations in the future," he said.
JOHN PINION, AN AUSTIN, TEXAS-BASED MANUFACTURER'S REP, said the iPad makes the selling process more fluid, and his life much easier. "Within a few years, I see every manufacturer's representative having an iPad as a selling tool. Retailers will have access to each supplier's catalog, pricelist and website on their iPads so they'll never have to leave the customer to go find a catalog."
Pinion's sentiments are shared by reps who see the iPad as an especially useful tool for its potential to vastly reduce the amount of catalogs, paper, photo cards and other selling materials they carry and try to keep organized.
"I would say that the iPad is even more important in the accents category where vendors deal with more SKUs than case goods, upholstery and mattress suppliers," Pinion said. "The pictures come out much better than the print version, and you can magnify sections of the page or product features with a simple motion of the finger."
Pinion is doing it all himself - uploading PDFs of his catalog, building the presentations and using the iPad to pitch his products.
"Uploading a PDF can be done through iTunes' free software to your free iBooks application, which reads books and PDF files. Or, you can save email attachments directly to iBooks. I also use Good Reader, a 99-cent application, to organize all of my catalogs, pricelists and other correspondence," he said. "You can put documents onto Good Reader wirelessly, through iTunes or as an email attachment."
The iPad can hold photos in a photo section, but Pinion recommends Photosort ($1.99) for sorting. "This allows you to use finger movements to create your own photo presentations in minutes. I make a customized presentation of what I want to pitch to each dealer by creating a photo folder that I can display from. I then take the pictures from Photosort and import them into a Keynote presentation - iPad's version of Powerpoint - that tells the story of my product."
Afterward, said Pinion, you can email the presentation to the customer from your iPad. "Dropbox is a great free tool for files that are too large to email. I just upload it to Dropbox, and email a link from Dropbox to my customer to download it."
THOUGH GUILDMASTER CEO STEVE CROWDER owns an iPad and calls himself a fan of the technology, he's not ready to take the plunge with his sales team - yet. "I come from several different industries, and I've seen this happen before with new technology," he said. "You get the early adopters, maybe 5% or 10% of people who are willing to pay any price to get that cool new technology. Then you get this next group that sort of follows them - you definitely saw it with the iPods, iPhones. There's a price point they (Apple) have to reach in order to pull another 30% to 40% - maybe 50% - penetration in the market. Then they have to supply the same technology at about half the cost. So my guess is that iPads, within the next 18 months, are going to get down to either $99 or $149."
Crowder says he was visited by several iPad applications vendors in his High Point showroom this spring. "At the October (2010) market, Lexington was the only company working on an iPad app that I knew of, and no one came and talked to me," he said. "This last market, five companies came by - four that I saw personally and another that dropped off contact information. My guess is that number will quadruple in October (2011). It just makes sense - everybody's going to chase that."
"There's this attraction ... that ‘Oh man we're gonna miss it; we've got to get on board with this,' but here's a great illustration. When I went on the (Guildmaster retail) road tour I took a Flip video with me. Brand new thing. Everyone who saw it was blown away. It was so convenient - with the built-in USB you just stick it into your laptop, look at the movie, load to Facebook, send to friends... I should have gotten a royalty for all the Flip videos I probably sold. And then Cisco, who owns the Flip video, said they're killing it!
"I look at that and think that's the danger in making huge investments in things that may or may not be sustainable. You're real excited about this iPad application, and you're selling it to them, but are you going to be around in a couple years to provide the updates, fixes, maintenance?"
PART 2: SOFTWARE PROVIDERS CREATE INNOVATIVE SALES TOOLS FOR IPAD
In Part 2, we give the floor to three software companies that have taken the sales technology beyond the basic cataloging, presentation and organizational functions by developing apps that integrate everything with the accounting office, the inventory system, the factory, the sales manager, the customer and just about every other link in the chain. The iPad's operating system and wireless capabilities enable "syncing" of the information entered by the salesperson every day, on demand or each time the app is launched. As product info, pricing and photos are added and deleted, these apps can also force updates to make sure the sales person is accessing current, accurate data.
SUPERCAT SOLUTIONS
One such software developer is SuperCat Solutions, which debuted its new eCat system to manufacturers, reps and media at the April High Point Market.
ECat got its start in the Sarreid showroom and grew with the help of a six-man technical development team under the direction of Sarreid Operations Manager Steve Thrasher. The resulting iPad app went through six months of testing and tweaking by Sarreid's multi-line reps before it was sold off in January to SuperCat, a company formed by the software designer, investors and software company that created it, with Thrasher as president.
Big picture, Thrasher said he sees it as a game changer. "In a couple years, this will be everywhere," he said. Like Pinion, Thrasher sees the technology as being even better suited for home accents and gift companies, where a large selection of products are sold using paper sales materials.
He explained the design philosophy behind the system. "Some reps would have to carry well over 100 pounds in product materials to have a company's full catalog available," he said. "As a result, they would only have materials on their best-selling items, meaning a number of products would never even be shown to potential buyers.
"Some of our early research tried to virtualize the ‘stack' idea, which is a method commonly used by reps," Thrasher continued. "The ‘stack' idea describes how when going through sales materials with a retailer, the rep will make a ‘yes,' ‘no' and ‘maybe' stack depending on the retailer's preferences. The eCat translates this idea by allowing the rep to make virtual stacks while viewing products."
Thrasher said reps report selling more with the technology because the visual effect of seeing a final order on the iPad is less intimidating than the hard copy system in which the buyer would look at a long list and then start marking off items.
"Our users have a lot of flexibility and independence in controlling how product is displayed on the iPad, how it is grouped into types and collections, what pricing levels are displayed, etc. It enables companies to push out special groupings of products to the iPad to support promos, direct container sales and other special situations. And it allows them to segment their distribution within territories down to the collection level so they can have multiple reps in the same territory using eCat to sell different parts of their product line offerings."
Thrasher said it can all be done without tech support. "One of the differences between us and the competition is that we hired a team of programmers and designers who specialize in work for the iPad and iPhone," he said. "By using professionals, we were able to make eCat beautiful, the Apple way. The money that SuperCat has spent up front on professional design and programming has resulted in an app that is very fast, highly functional and very easy for non-technical users to use. The quality and reliability of our product is very high."
Charles Hoffman, sales and marketing VP at Sarreid, said eCat has changed the way he works in "significant" and "unexpected" ways. "I'm now so close to and engaged with what's happening with our merchandise, inventory, and orders. I see a copy of every order the minute it comes in so I can interact with the reps right away about what they are doing for the company and customers. Every night I go through the product by category to see what's happening with the lines, what vendors are delivering, where we are out of stock, and how the promos are selling. The amount of information I'm getting by looking at our product lines and orders visually like this is absolutely incredible. I can't imagine now what I'd do without it."
Daniel Allen of Somerset Bay and Modern History, the second company to sign up for eCat, said the app has greatly enhanced the sales representative to customer experience. "The iPad's vivid photo display and eCat's self-organizing functionality will have a big impact on the furniture industry going forward."
SuperCat Solutions is now in the process of gathering ideas for a dealer/designer app. "We want to offer our current eCat customers the option of providing a branded app to their dealers that is specifically crafted to meet the needs of retailers and designers," Thrasher said. "We plan to give the functional specifications to our app designers in July with the goal of rolling the dealer/designer app out in the third or fourth quarter."
SuperCat Solutions website is www.supercatsolutions.com.
URNICUS
Another big player in this arena is Urnicus, the creation of Ryan Bradburn. Bradburn's family owns The Bradburn Gallery and Elizabeth Marshall, high-end designer/manufacturers of decorative lighting, accessories, wall décor 
and accent furniture. The two companies produce around 300 new samples every six months, with about half that number being discontinued within one year.
Bradburn used to provide his sales reps with 4x6 "cheaters" of each product, with photos and pricing/information labels, a method that was costly to produce (color corrections, printing and distribution costs), difficult to maintain (sales reps were using discontinued photography and out-of-date pricing), and often overwhelming to present. "Two thousand SKUs was just too much for our customers," Bradburn said. "(The reaction was) ‘Oh, God, not that huge freaking stack of photos again - I just don't have time.'"
As an early iPad user, Bradburn saw potential in the device's features as a way to overcome these issues. "The iPad's large backlit screen created a beautiful presentation form that resonated much better with customers than the photos. The ability to incorporate a backend database and networking meant the iPad could always have the most up-to-date photos and info from a central location."
Bradburn decided to develop his own Bradburn Gallery app, which is distributed to users in the Apple Store. The user can select whether to update the app manually, or have it update automatically each time it is launched.
"In the upper right-hand corner of the application is an icon that looks like an arrow in the shape of a circle," Bradburn explained. "Tapping this icon downloads all stock information, price updates, new items, updated photography, and removes all discontinued items. All of our applications include a base set of images so users may start using the application immediately upon download. If additional photos are available, they will begin to download in the background without disrupting the user."
From Urnicus' iPad Screen Shots album: "This is a typical landing page... client provided custom artwork and advised how to organize their product groupings." Click on the photo for more.
Apps he develops for other companies through his company, Urnicus, are distributed under the client's name and branding (logo) in the Apple Store. The user/manufacturer can market its app to reps and dealers as "available in the App Store," restricting access with login credentials. Sales reps, for example, can access more info than other groups; dealers can present catalog and PDF tearsheets with different pricing levels and restrict select item groups (in-stock, discontinued, best sellers, favorites) to certain logins.
Bradburn points out that the system not only helps sales reps stay organized, but it's also a tremendous tool for the retailer or showroom salesperson, as everything he or she needs is right there.
Kelly Billingsley, sales and marketing vice president at botanicals manufacturer NDI, said her salespeople and customers love NDI's new Urnicus-developed app, which launched in May.
"NDI takes great pride in our printed catalog, but there's only so much the customer can see in printed photos," Billingsley said. "The NDI app for iPad gives our sales force and our customers the ability to zoom in on our products and really get an up-close and personal look at the detail in each custom design. Our app also provides the best and most up-to-date source for NDI product details and stock availability. When new products are added, or old items are discontinued or out of stock, the app will automatically reflect those changes in real time after each refresh. Our product line now has the ability to extend itself beyond the printed catalog, transforming our line into a living thing that can grow and adjust to the market."
Urnicus' website is www.urnicus.com.
REPZIO
RepZio, the first developer of a customizable sales app for the iPad, was founded in June 2010 by brothers Alexander and Maxwell Fraser, in a move they say combined one brother's home furnishings sales experience with the other's "technological prowess." Alex Fraser said RepZio is currently being used in many different industries (in addition to the home furnishings industry), is designed for use by wholesalers, distributors and retailers, and offers a comprehensive showroom solution complete with scanner and ePrint capabilities.
"Our application, which has a patent pending, is customized to each specific company and industry - it's not just the same thing with different products. It comes with an elaborate back-end management system - our app is synchronized with each manufacturer's data every time the application is launched. When you place an order, the order is instantly submitted to the factory, the buyer and the territory manager via email, fax or file export. The order is also linked to high-resolution images on the server that the buyer can print or email. Our app also works with a Bluetooth scanner for quick entry - during the rush of market, you can scan and submit a 100-item order in minutes."
Fraser said RepZio supports unlimited SKUs and virtually unlimited tiered pricing levels, and facilitates customization of furniture and upholstered goods. "Our application even allows buyers to sign for orders right on the iPad using their finger," Fraser said. 
Screenshot from RepZio's Flickr photostream: "Large Photo, with quick add-to-order and bookmarks." Click on photo to see more.
Norfolk, Va.-based Furniture Classics Ltd. contracted with RepZio. Alex Boyer, vice president of sales and marketing at Furniture Classics, said the technology has already proven to be a generator of larger average orders, with fewer items deleted from consideration during the selection and buying process. "Sales representatives experience a new dynamic in presentation by sitting ‘with' the client rather than ‘across from,'" Boyer said.
Regarding the impact of the iPad's photographic presentations, Boyer echoed the sentiments of the others interviewed for this article. "One rep reported that a customer hesitated on a new introduction photograph, but when the hi-res image was presented on the iPad, the customer was instantly delighted and ordered two units." The presentation and order process has become more streamlined and efficient, he added, because reps don't have to handle as many sales aid materials.
As for arming his sales staff with the hardware, Boyer said the company purchased iPads for its reps and gave them the option of financing through commission deductions. "We also have offered incentives for the first couple months out, such as a free iPad to the rep writing the most orders," he said. "Even our reps that have just recently learned to text with their mobile phone have embraced the technology - and love it!"
Boyer expects the technology to gain even more acceptance as a useful tool at the showroom and retail levels, and is investing in it. "RepZio has experience in website development, so they're developing with us, the first website skin around the iPad application, allowing instant B-to-B with our customers, and a new experience for B-to-C with consumers. We will launch the new website in early summer."
RepZio's website is www.repzio.com.
Next month, we'll examine some of the uses for iPads and tablets at retail, both in stores and online.
Alex Lemonde-Gray contributed to this article.
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