3 Key Messages From IBS - Can you afford not to know them?

Jenn-Air New Oiled Bronze Suite

Having just finished the IBS show last week, it is fresh on my mind. Attendance was down, but I noted that everyone I spoke to had a compelling reason to attend. The mood of the show attendees was positive, optimistic, yet realistic. Builders were searching for solutions to support differentiating their homes, increasing their profitability, and better meeting consumer needs. It was the most 'consumer-centric' builder show I have ever attended. And maybe that is a good thing...

Among the exhibits that were well received, there were some common themes that builders seemed engaged in - The big 3:

Innovation - (Including the categories of Green, Energy Efficiency and Health such as Indoor Air Quality)
Aesthetics - (Design and Differentiation)
Emerging Consumer Markets - (Including Multi Family, Affordable Housing, Custom/Urban/High Rise and Mixed Use Developments)

Innovation was everywhere with the big product brands; focus on green, high efficiency, easier installation, increase in product features...In the Heat & Glo, Heatilator and Quadra-Fire booth key standouts included the Quadra-Fire EDGE, the first ever pellet fireplace, which was profiled on Apartment Therapy and HGTV. We had plenty to discuss with builders in AFUE rated product and high efficiency options, as well as patented IPI pilot technology, which saves a home owner $15 monthly on the gas bill by only lighting when needed versus a standing pilot.

The Quadra-Fire EDGE Pellet Fireplace, with contemporary front

Direct-Vent gas fireplaces also were the preferred product discussed by builders interested in earning LEED points or building to NAHB Green Building Standards. Watch this short video about Fireplaces that Green the Home.

Progress Lighting was showcasing tons of innovation in design, Energy Star fixtures, and new LED versions. The Westin series had recently received the 2008 Lighting for Tomorrow award - the 15w fixtures are ENERGY STAR qualified – the mark of quality for energy efficient, green friendly lighting and have a lifeline of 10,000 hours. The clean lines of this collection were appealing, well designed, and should be a great product for upgrade and option sales. The Progress booth was beautiful!

The Westin Lighting Collection from Progress

Aesthetics were also keenly on the mind of the builders I met. This had a great deal to do with the competitive buyers market right now, and the continuing consumer focus on design.

In the upper end, there were many ground breaking products that took your breath away - Whirlpool's launch of the Jenn-Air Oiled Bronze Suite was a standout. The warm copper and bronze tones had a striated finish and a lovely texture.

Jenn-Aire's New Oiled Bronze Suite

Heat & Glo showcased a number of unique contemporary and transitional looks. The move up and custom builders seemed very engaged in the new see thru large format Escape See Thru direct-vent gas fireplace, shown with a new texture and color in a beautiful Macchiato cast surround, (surround available in Summer 09).

Heat & Glo Escape See Thru Large Format Direct-Vent Gas Fireplace

Contemporary design was in demand by the upper end builder, the Heat & Glo RED 60" direct-vent linear fireplace was very well received. (Available Summer, 2009) We showed it wrapped in Absolute Black Granite, a very clean and compelling statement.

Heat & Glo Red 60

Emerging Consumer Markets were a common discussion point for agile builders seeking to capture the upcoming Gen Y market, as well as those building and developing mixed use, upper end urban multi family, active adult and even affordable housing. Heatilator had a terrific response on the Aveo Fireplace, which has a terrific price point and frames in less than a foot. Because storage is a great selling point with multi-family, we show cased the Aveo in an available optional shelving surround. (Isn't it adorable?!)

Heatilator Aveo Direct-Vent Gas Fireplace, frames in 11 1/2"

All in all, it was a terrific show, with the focus in the 'right stuff' that will help builders (and manufacturers) position themselves for success in Innovation, Design and with Emerging Markets.

I enjoyed meeting many of you who sought me out at the show. The 'Profit Solutions' Presentation that I presented at the show was well attended, by builders, design and architects. Click here to watch a short webinar if you were unable to attend. (yep, that's my voice...)

I also had several interviews, including this impromptu 30 second interview by Jim Adams of NewHomesDirectory.com. Yikes - could you sell your product in 30 seconds? Sometimes that is all we have! A little lipstick could have been helpful, but considering no notice, not bad. :)

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Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Krisann is a member of the Retail Design Institute. Contact her at brownkr@hearthnhome.com or 952-985-6537.

Opening Our Eyes to the Possibilities of 2009

"The real voyage of discovery consists not in seeking new landscapes but in having new eyes." Marcel Proust

2008 is almost over. Can I hear a 'hellya'?!

"Fresh Eyes" ~ Although painful, the challenges we have been presented in 2008 have helped us all approach each day a bit differently, and with purpose. In the home building industry, we are all 'Doing more with less'. We have eliminated the unnecessary, and raised our eyes to focus on the biggest opportunities and the fastest returns. I would venture to guess we are all smarter, leaner and more efficient, and absolutely more customer focused than we have been in a long time. That can't be a bad thing in the long run.

"Leaders keep their eyes on the horizon, not just on the bottom line." Warren Bennis


2009 will bring continued challenges ahead for us in the home building industry, but also a great deal of opportunity. The bottom line, we have hopefully all learned from Albert Einstein, who defined Insanity as "Doing the same thing over and over again and expecting different results."

2009 Opportunities include approaching existing home buyer groups differently; from how we sell to female and Hispanic home buyers, for example, to the product offerings and options we offer to differentiate your home from the next builder's. Green building products and practices and indoor air quality will continue to become more important as the consumer becomes more educated.

Emerging home buying groups, like the graduating Generation Y multi-family group and Move Up but Scale Down baby boomers will offer new opportunities for those of us who can change our approach, our product offering, our option catalogues and the fundamental way we relate to the home buying consumer.

"You cannot depend on your eyes when your imagination is out of focus." Mark Twain

The biggest opportunity for all of us is to continue challenging ourselves: reinventing, focusing on what is most important, and keeping our eyes up. In yoga, we are told that our posture and our body will follow our gaze. After learning all we can from 2008, let's turn our eyes forward, and upward, to make the most of 2009. We are all smarter than we have ever been. We can do this!

Thanks so much for your readership this year. Congratulations on everything you have learned and applied and on your personal and professional growth in 2008.

Happy New Year.

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Stop by and meet Krisann at IBS, in the Hearth and Home Technologies booth.

International Builder's Show

Las Vegas Convention Center

January 20-23, 2009

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Krisann is a member of the Institute of Store Planners, now the Retail Design Institute. Contact her at brownkr@hearthnhome.com or 952-985-6537.

European Kitchen Design Review

Mix of Natural Wood With Stainless Steel and Laminate - Zurich

Many of you know about my recent trip to Europe, including Amsterdam, Zurich, Lucerne and Milan. I brought back photos of kitchens that emphasize some common design elements. Enjoy!

Stand outs to me included:

• Mix of man made/technical materials with organic naturals
• Clean Lines
• Smaller footprint
• Use of graphic elements emanating from nature
• Key focus on great lighting

Graphic design elements and terrific lighting

Graphic design elements - etched glass room divider

The jury is out on this chandelier...

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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor and lifestyle trends.

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Krisann is a member of the Institute of Store Planners, now the Retail Design Institute. Contact her at brownkr@hearthnhome.com or 952-985-6537.

Betting On A Little Luxury

Heatilator Caliber Direct Vent Fireplace and Luxurious Blue Pearl Granite Surround

CVS drugstores recently announced the launch of a new (very) high end beauty shop, named "Beauty 360". The new concept will be strategically placed next to some drugstore locations, and will carry luxury skin care, cosmetics and fragrances, and offer manicures and other beauty treatments. Their positioning seems to compete with the luxury Sephora stores (now, there is a spot to kill an afternoon and a few hundred dollars!). Mary Lou Gardner, the senior category manager for beauty, is quoted as saying "If you create the right environment, you can sell any brand."

Unique retailer J Crew is also headed upscale, with a new focus of creating exciting spaces where shoppers want to "hang out", and bringing even more luxury into the brand, from higher end fabrics to high end details in the garment finishes. Even Godiva Chocolates is still opening new stores in traditional and lifestyle malls across the continent.

A recent post on EBrand marketing points out that even though customers are spending less in the market place overall, they are not giving up affordable luxuries. Creating a beautiful browsing experience enhances this consumer experience.

Most of us have chosen not to give up our Starbuck's habit, nor stop wearing cosmetics or getting our nails done. What does this mean to you and your design center?

Consumers are willing to invest in small luxuries that create a personal home environment unlike any other. The 'smaller' upgrades are often higher in gross margin, and the mark up less noticeable to a consumer than in a category such as , say, appliances , which may be price comparison shopped by the consumer on the Internet or local big boxes. Of course, it is mandatory to stay below the 'psychological price barrier', or it will not appeal to the consumer. In example, we will increase incidents and overall volume of upgraded fireplace surrounds when pricing is $999.00 versus $1100.00. Profit and margin are much better in the long run.

Focusing the design center experience on the experience takes the consumer eye off of upgrades and options as commodities, (read PRICE) and helps the consumer look forward to their home, as they 'designed' it, and the fact that it is unlike any other home. This also differentiates you as a builder. The experience can start before the consumer enters, continue through the browsing, consulting and selection process, and even end with a hand written thank you note.

Experience is about emotion, and for those of you who have heard me speak lately, you know I believe emotion connects with your home buyer unlike anything else. In "Unleash the Emotional Appeal Of Your Product" Rita McGrath, Harvard Business Review, McGrath drives us to strongly consider our target consumer segments, and the lifestyles and behaviors that make up these segments. She asks us to consider the situation of the consumer; their mindset, fears and expectations. Finally, consider the emotions that you can appeal to. The article encourages experimenting, and trial and error as you find what works the best with whom.

At Hearth and Home, we are having exceptional results offering affordable luxury in fireplace surrounds. Our assortment includes a few extremely design oriented, rich granites and marbles that are priced as 'best' in the good, better, best of our assortment. For a relatively small price, we find consumers (both at retail and in new construction applications) are very willing to pay for 'What I like" or "What matches" or in the active adult and move up - semi custom market "What I want". Blue pearl granite and marron brown marble are selling to move up, semi and custom and active adult buyers with terrific results.

Review your product assortment in every category for 'affordable luxury'. Place the best items high (yet touchable) in your displays, and let me know how it goes. We will talk about product placement and consumer perceptions of value in a future post. In the meantime, I'm off to Starbuck's.

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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor and lifestyle trends.

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Krisann is a member of the Institute of Store Planners, now the Retail Design Institute. Contact her at brownkr@hearthnhome.com or 952-985-6537.