Jim King

Posted by: Diane Capuano

In the May issue of PDR Magazine’s new “Retailer to Retailer” feature, we introduced you to PDRA’s Vice President/Treasurer Jim King, owner of Colormagic in Cookeville, Tenn. Excerpts from that interview are posted below:

Q: Can you provide a bit of background about you and your store?

A: My start in the paint industry was in college. I worked part-time as a stock boy. When I graduated from college with a degree in Wildlife Management, the owner of the store needed a manager. I told him I would serve as manager until he could find someone else to manage the store and if I could look for a job in my major. He became ill, and four years later, I bought the store. Forty years later, I still enjoy the business and hope to have many years to come.

Q: What is it about your business that sets you apart from other paint and decorating stores in your community?

A: We strive to do things that no one else will do. We custom-tint caulk and stain to match whatever the customer brings in. We keep customers’ paint records as far back as 1992. We have the ability to custom-order in small quantities a product that a customer cannot find in our area. We put in new products sooner than most stores. We open at 6:30 in the morning to accommodate our contractors. We will also come in after-hours for our customers.

Q: Can you tell us about your experience with PDRA (and its predecessor organization NDPA)?

A: As far back as I can remember, Colormagic has been involved with the NDPA and the PDRA. When I started to work at the store, we were members of the NDPA (that was 1973). Through the PDRA, my staff has received continuing education. The friends I have made over the years through the PDRA are priceless. The magazine that the PDRA produces is a world of information and is by far the best in the industry. I am proud to be a part of the PDRA and all that it does for the industry.

Q: You serve as the Board of Directors’ Vice President/Treasurer. What are your priorities for your term in office?

A: The mission of the PDRA is to support and educate the independent paint and decorating retailer. My first goal is to be sure we have the best education out there for our members. We have two new online courses (Coatings Specialist and Customer Service Specialist). Both classes are top-notch and are some of the best in our industry, and are very affordable for our members.

We are also involved in helping our members get involved in social media. Social media is how we as independents will reach the new wave of customers. Several of our members are like me and have been an independent dealer for many years. Our vast knowledge of product is great, but we lag behind in how we get it out. We have not grown up with a smart phone in our hands and are intimated by them. That is where the PDRA can help. We have board members that are in the know on social media and have a wealth of information. As a Board, we are working together to improve our annual PDRA show at the National Hardware Show®. (If you have not been in a while, you need to attend).

Last but not least is our “Retailer to Retailer” initiative. We are working on ways to keep all of us connected so we can learn from and share with each other. If our industry is going to flourish, we need to work as a team and not as competitors.

Q: Give us your best “sales pitch” regarding why an independent paint store owner should join PDRA.

A: These are exciting times to be in the paint business. The challenges are greater than they have ever been, but if we work together, our industry can be a viable part of the economy for years to come. If we as owners will band together and share our failures and successes and learn from each other, there is no end to what we can do. If you want your business to grow and survive and reach its full potential, then the PDRA is a must! I have learned more from other dealers than any facet in our industry. We need each other more today than ever before. The PDRA is dedicated to meet the needs of the independent paint and decorating dealer.

Q: Any other thoughts?

A: As I look to the future of our industry, I see more changes than ever before. As someone once told me, blessed are the flexible for they shall not be bent out of shape. We need to be willing to change. To survive the changes in our industry, we need each other. We need to work together (a Band of Brothers). Our future is bright, but only as bright as we make it. Let’s work together to make our industry the best it can be.

The opening ceremony at the National Hardware® Show featured dignitaries from industry associations, including PDRA.

Posted by: Diane Capuano

Perhaps as a harbinger of better times ahead, the PDRA Paint & Accessories Section at the National Hardware Show® was filled with mostly upbeat reports and robust activity.

The show took place May 1-3 at the Las Vegas Convention Center in Las Vegas, Nev. Retailers in attendance received a peak at new products and a chance to chat with key vendors. Exhibitors had a chance to give their best sales pitches to a quality group of attendees eager to move forward in what is hoped to be an improving economy.

The PDRA Paint & Accessories Show is part of the industry’s biggest show. In addition to paint and accessories, the National Hardware Show® also features sections for hardware and tools; housewares; lawn, garden and outdoor living; plumbing and electric; storage and organization; tailgate products; and pet products.

Show attendance this year topped 27,000, a 5-percent increase over 2011. Exhibitors were pleased with both the quantity and quantity of attendance. Among them was David May of Trimaco. “Customers from large to small seemed very enthusiastic and definitely upbeat about the current business environment,” May said. “They seemed more eager for new products and ideas than in the recent past, where the economic state seemed to be holding people in a very conservative attitude toward adding new product as opposed to beating down costs of the current offering. We were very encouraged, and we are definitely signed up for next year.”

Dignitaries from the National Hardware Show®, the National Retail Hardware Association, the Paint & Decorating Retailers Association, Jensen Distribution and Lancaster gathered on the main stage to mark the opening of the show with a blast of colorful confetti. Jeff Baggaley, as association president, represented PDRA. Kevin Harrington, well known from the TV show “Shark Tank,” also came on stage to announce he was on hand to look for innovative products. And, really, what better place to do so than the National Hardware Show®?

In fact, there was a whole room dedicated to the ingenuity of the industry. Known as “Innovation Station,” this special section of the show was bustling with show-goers who wanted to get a firsthand look at the products of the future. This, coupled with the nearby “New Products World” section, provided a great sneak peak on what will be hitting store shelves in the coming year.

The best of American-generated know-how was on display in the “Made in the USA” show sections as well as at many of the other booths throughout the show floor. An added benefit for the paint and decorating sector this year was the co-location of the Lancaster Show at the Las Vegas Hilton, adjacent to the Las Vegas Convention Center. The Lancaster Show provided paint and decorating retailers with more vendors, more products and more opportunities to network and make deals.

Speakers and presentations on the NRHA Main Stage gave additional value to the show experience. The keynote speaker was Michael Bergdahl, former Walmart executive who spoke on the topic of “How to Compete and Win in a Walmart World.” Bergdahl acknowledged that independent retailers can’t compete with Walmart and other discounters on price, so he advised them to compete on other factors. “You are not a discounter, so don’t try to act like a discounter,” Bergdahl told his audience. “Instead, leverage your other strengths—location, convenience, product knowledge and especially service.”

Also offering terrific insights was Sonu Mathew of Benjamin Moore during her presentation entitled: “Connect to Your Customers Through Color Trends.” Among the trends that Mathew identified were “Earth and Sky,” featuring natural elements; “Eclectic Elegance,” a diverse palette that works well in any décor; “Spiced Life,” an urban trend of well-seasoned hues; and “Sense and Sensibility,” featuring timeless colors interpreted for a modern lifestyle. Mathew also identified Benjamin Moore’s Color of the Year: Wythe Blue, a blue-green hue with a cool gray cast.

Another highlight of the show was the presentation of the PDRA Scholarship, generously sponsored by the National Hardware Show®. See this blog entry for details.

The Paint & Decorating Show, in conjunction with the National Hardware Show®, will return to Las Vegas on May 7-9, 2013. Look for details in upcoming blog posts and issues of Paint & Decorating Retailer magazine.

From left: PDRA President Jeff Baggaley; Jerry and Donna Keim; PDRA Board Members Dave Garland and Jim Wolcott; and Richard Russo, director of the National Hardware Show®,

Posted by: Diane Capuano

PDRA member Jerry Keim, Keim’s Paint Center, Rock Island, Ill., traveled to Las Vegas with his wife, Donna, to receive the PDRA $5,000 Scholarship on behalf of high school student Mary Adlfinger of Milan, Ill.

Keim is the PDRA member in good standing who nominated Mary for the award, which is generously sponsored by the National Hardware Show®. The scholarship presentation took place on May 2 on the NRHA Main Stage during the PDRA Paint and Accessories Show held in conjunction with the National Hardware Show®.

Presenting the scholarship to the Keims were PDRA President Jeff Baggaley­; members of the PDRA Board of Directors; and Rich Russo, director of the National Hardware Show®.

Mary is the daughter of Matthew and Doreen Adlfinger and intends to study physical therapy at Saint Ambrose University. Her ultimate goal is to receive a Doctorate in Physical Therapy. An impartial panel of judges selected her as the scholarship winner from a strong field of candidates. Mary was chosen based on the strength of her essay, which showed her commitment to hard work and community service.

Posted by: Diane Capuano

The new Paint & Decorating Retailer app is now live and ready to download onto your iPhone or iPad at both iTunes and the App Store.

The free app provides tools and information designed to assist and promote the independent paint and decorating retailer.

Features on the app include:

• A dealer locator that will allow consumers to locate the nearest retail store member of PDRA;

• An event calendar of major trade shows and buying events in the paint and decorating industry;

• A blog of timely and newsworthy information from the paint and decorating industry;

• An online store that offers PDRA member and non-member prices on books, training manuals, sales aids and other items;

• A member directory that offers exclusive contact information to those who have joined PDRA;

• A color guide that provides consumers with helpful information on how to select a color scheme for their homes;

• A profit margin calculator that provides retailers with a quick and easy way for members to determine how to achieve better ROI on any given product; and

• A square-foot estimator that will allow users to determine how much paint is needed for a given space.

In addition, the app includes access to monthly issues of Paint & Decorating Retailer, a magazine dedicated to the informational needs of paint and decorating store owners, managers and employees. PDR magazine is a vital information source for the industry’s independent retailers, providing them with valuable insights and strategies on how to compete in the marketplace and enlightening them on the latest product introductions, color and design trends as well as environmental and retail regulations.

The PDR portion of the app allows readers to search key words and to access the websites and contact information of advertisers. An archive of past issues will keep Paint & Decorating Retailer always at the fingertips of retailers for easy access to information about trends in the various product categories they sell.

The PDRA app is available in iTunes by clicking on this link. Or you may go to the App Store on your device and search PDRA.

Posted by: Diane Capuano

Mike Fleck has been named to the PDRA Board of Directors, effectively immediately. Mike represents the Eastern region of the United States. He is the owner of Flecks Paint Spot, which has stores in Toms River and Forked River, N.J.

The PDRA Board of Directors is an all-volunteer governance body for the trade association serving the interests of independent paint and decorating retailers.

The Board consists of the president, past president, vice president/treasurer, five regional directors representing the U.S. and Canada as well as one director at large.

Posted by Erik Verryden, National Processing Solutions Inc.

The following post was written by Erik Verryden of National Processing Solutions Inc., PDRA’s partner for credit card processing services. In this post, he covers the following three topics:

1. The impact of the Durbin Amendment on the processing cost of debit cards;
2. The IRS’ watchful eye on your card processing activity; and
3. The ease of signing up for an account with NPS

Impact of the Durbin Amendment

On Oct. 1, 2011, the government stepped into our industry for the first time after complaints of rising costs of debit cards. The government made the decision to lower the “cost” from .95% and .15 cents to .05% and .22 cents.

This was supposed to help small merchants right?  Wrong.

While it would save .83 cents on a $100 sale, there are two oversights that occurred:

1. That new rate only applies to regulated debit cards, meaning it applies to banks having $10 billion-plus in assets or if the card falls under certain parameters. Since October, we have noticed that only 47.13% of all debit cards meet these requirements nationwide.
2. Smaller ticket merchants take the biggest hit. Previously, interchange cost on small tickets was 1.60% plus .05 cents. The percentage really isn’t an issue with items of $20 or less, whereas the transaction fee is.  The new cost being .22 cents really hit these merchants hard.

For those in the home improvement industry, the higher transaction fees might not be that pertinent to most. However, what’s important to know is if you’ve been told that the Durbin Amendment will decrease your cost on every debit card, that is not the case.  With the PDRA and NPS, you will have costs directly passed on from Visa and MasterCard, and thus it is our duty to inform you what these are.

The most common Visa and MasterCard debit costs will be as follows:

•    Regulated Swiped Debit (including Small Ticket)—.05% + .22 cents
•    Non-Regulated Swiped Debit—.95% + .15 cents
•    Keyed Debit—1.60% + .15 cents
•    Small Ticket Non-Regulated Debit—1.60% + .05 cents

IRS Regulations

As some have already noticed, you received a 1099 form from your processor this year. The IRS also stepped into our industry and has a watchful eye on all card income. The IRS has assessed penalties and fees if your Federal Tax ID/SSN and legal name your credit card processor has on file does NOT match what you have on your tax return.  The IRS started assessing a monthly fee of approximately $20, and if it is a mismatch after January 2013, they will withhold 28 percent of all of your funds for up to one year!

The way to prevent this is to make sure your processor has the correct information in your file. If you are a client of ours, we will notify you if you are still a mismatch in our system.

Signing Up for an Account with NPS

One thing I have encountered when sending over applications to a potential merchant is that once the application is opened, they can become overwhelmed. I agree. At first glance, the application can look very confusing.  Keep in mind that these applications are cookie-cutter and written for every business out there, so there are multiple areas that do not pertain to your business.

Here are some helpful tips:

1. Every section that needs to be filled out will have brackets around it on both sides.
2. There are a total of three places for initials, followed by two lines for signatures as well as  the last page with 1 signature required.  So a total of three and three.
3. Include a copy of a depository check and fax or email back to us.
4. Of course, you can ALWAYS have us walk you through the application over the phone. That will take approximately three to five minutes.
5. Once received, it typically takes two to three business days to activate the account
6. If we are using your current terminal, all that is needed after activation is a call from our staff to walk you through a reprogram of that terminal.
7. If you are using a terminal from us, then it will be shipped out to you already programmed. All you need to do is plug it in.

All in all, it’s a real simple process and whether switching mid-month or at the start of the next month, it really makes no difference.  You will not be double billed for your processing costs once your terminal is on our network. All you need to do is call to cancel your current/old processor.

I hope this was informative. If you have any questions, feel free to email me @ erikv@npsmerchant.com.

Posted by: Diane Capuano

To see a vast array of what the paint and paint-related accessories industry has to offer, be sure to attend the the PDRA Show at the National Hardware Show®, taking place May 1-3 at the Las Vegas Convention Center in Las Vegas, Nev.

The PDRA-sponsored Paint & Accessories section will be a showcase for more than 200 manufacturers of paint and paint-related products. Products represented will include: paints, stains, primers, specialty coatings, paint applicators, painting tools, caulks and sealants, painters’ tapes and adhesives, patching and repair products, tarps and dropcloths, paint cleaners, thinners, strippers, removers, tinting and mixing equipment, ladders and scaffolds, safety equipment, decorative accessories and much more.

A complete exhibitor list is available at the PDRA Show section website. Click here for just a sample of what products exhibitors will be displaying.

For the first time this year, The National Hardware Show is co-locating with the Lancaster 2012 Las Vegas Trade Show, taking place May 2 and 3. With the co-location of the Lancaster National Paint Distributor Show, the National Hardware Show is now undoubtedly one of the premiere events for the paint industry and a must-attend opportunity for retailers across all channels selling paint and paint sundries.

While at the show, take advantage of learning opportunities with the NRHA Rethink Retail Conference, which will feature three separate tracks focusing on marketing, training and retail operations and is free for all independent retailers in attendance.

In addition, the NRHA Main Stage will have a number of valuable presentations, including the keynote address: “How to Compete and Win in a Walmart World,” featuring the insights of former Walmart executive Michael Bergdahl. This will take place at 9 – 9:45 a.m. on Tuesday, May 1.

Also on May 1, Sonu Mathew, Benjamin Moore’s Senior Interior Designer, will take to the stage from 4 to 4:45 p.m., to discuss: “Connecting to Your Customers Through Color Trends.” Mathew will reveal the current color trends in home design and how to best leverage them in everyday color explorations with both your professional and DIY customers. She will share all the ins and outs of translating color trends into your day-to-day retail environment.

PDRA members will receive exclusive VIP benefits that will make their show experience all the more enjoyable and also save them valuable time. These include: concierge registration; pre-show FedEx package containing your show badge(s) and show information; new product and vendor information leading up to the show; VIP badge holder, which will give you special access to amenities and events; on-site members-only lounge with free breakfast, lunch, snacks, computer, printer and WiFi; and early access to the show every day. You must wear your VIP badge to receive these benefits.

To make sure you are added to the VIP Badge list, please contact Tina Sullivan by phone at (800) 737-0107, by fax at (636) 229-4750, or email tina@pdra.org (prior to the start of the show).

Stop by PDRA Booth No. 5611 to learn about the money-saving benefits of joining the association. Learn all about the new PDRA Customer Service Specialist Program and even view a free demo. PDRA also will have information on its latest developments in social media, including a new mobile app, as well as affordable digital signage for your store.

PDRA is planning a Welcome Reception, where dealers and manufacturers can network in a relaxed social setting. Check with Tina Sullivan for details at tina@pdra.org or (800) 737-0107, or at the show, visit her at booth #5611.

In addition, you are invited to the PDRA Scholarship presentation, which will take place at 3:30 p.m. on Wednesday, May 2, on the NRHA Main Stage. The PDRA Scholarship is  generously sponsored by the National Hardware Show^®.

Online registration for the show is free through April 30. Click here to register. Be sure to follow us on Twitter and read our blog for the latest show information.

Posted by: Diane Capuano

In the most current edition of “Retailer to Retailer,” we introduce you to PDRA Board Member Charles Smith, Smith Paint Co. Inc., Roswell, N.M. Learn a bit about his background and his work with the PDRA Board in the Q&A interview, below:

Q: Can you provide a bit of background about you and your store?

A: My dad started the business in 1967. I had worked off and on for him through high school and college. After college, I went to work as a bookkeeper for a construction company. It only took a few months to realize that I wasn’t meant to sit behind a desk. I worked as a sales rep for a paint sundry wholesaler for about a year and then as a rep for major paint company for about six years. They were both great jobs, but I wanted to get back to retail. I came back to work “on the other side of the counter” in 1981, and I’ve been here ever since.

Q: What is it about your business that sets you apart from other paint and decorating stores in your community?

A: The only way you can really differentiate yourself from other stores is customer service. We are all selling similar or the same products. Service has always been the main focus of our business. In the 1970s, my dad started keeping color and product records for the contractor and retail trade. We have boxes and boxes of index cards, which we still refer to occasionally. We continue to keep our customers’ purchase histories. I think the greatest asset that sets us apart are our employees. The same people have worked here for years. Customers know they can rely on our years of experience to take care of their needs. If we don’t have an item the customer wants, we will help them find it.

Q: Can you tell us about your experience with PDRA (and its predecessor organization NDPA)?

A: I imagine my dad became a member of the NDPA shortly after he opened his business. We’ve been a member of the NDPA/PDRA for as long as I can remember. Our relationship with the NDPA/PDRA has been very beneficial. Over the years, we participated in employee training programs, newspaper advice columns, personalized “how-to” booklets and insurance programs. The NDPA shows in Chicago and the current PDRA show in Las Vegas offer a wealth of information. Seeing new products, meeting with vendors and other retailers is invaluable to me.

Q: The PDRA Board has been involved in social media in a big way in the last couple of years. What type of social media are you involved in? What role does social media play in helping the business of an independent paint and decorating retailer?

A: I’m slowly becoming more involved with social media. I have a couple of websites and I’ve signed on to LinkedIn. I don’t have my business on Facebook or Twitter yet, but I’m in the process of becoming more involved. There is no doubt as to the importance of social media. Some of my peers on the PDRA Board have totally embraced the use of social media in their businesses and have been very successful. PDRA is in the process of educating our members how to become more involved in social media and how to use it to their best advantage.

Q: Can you tell us a bit about your committee assignment on the PDRA Board and the priorities you have for 2012?

A: I am on the Education Committee. We are in the process of introducing our newest online education program. We have had great success with PDRA Coating specialist program and have followed it up with a new customer service program. Cost will be $79 for PDRA members and $199 for non-members. Your employee can have great technical and product knowledge, but it’s useless if he doesn’t treat the customer properly.

Q: Give us your best “sales pitch” regarding why an independent paint store owner should join PDRA.

A: I’ve been a member of PDRA for over 30 years.  PDRA offers independent retailers many great membership benefits. You have access to education, such as the online paint course and the upcoming customer service training program, both offered to members at a discounted rate. There are also several business benefits, such as discounts on office supplies from Office Max and discounts on shipping services through FedEx and UPS.

My business recently changed  to the PDRA credit card processing program. The membership dues are $149 a year, and we save over twice that amount every month just on credit card processing fees alone. If you don’t save money on the program, you’ll receive a free $100 Visa gift card, so you have nothing to lose by trying it.

I also feel it’s a benefit to attend the annual trade show, which this year takes place May 1-3 in Las Vegas. It’s an opportunity to share your knowledge and experience with other retailers. You learn so much from your peers that you really can’t afford not to go.

PDRA is the independent paint dealer’s connection to the industry. It will keep you updated on new products and industry trends. You will join hundreds of other independent paint retailers like yourself. It’s a great way to stay in touch with your peers—retailer to retailer.

Posted by Diane Capuano

Independent paint and decorating stores in the U.S. ended 2011 on a positive note, posting a 2.9 increase in total sales for the fourth quarter over the same period the year before. For all of 2011, sales posted a gain of 1.9 percent when compared to the entirety of 2010.

In Canada, a strong fourth quarter (with an uptick of 3.5 percent) allowed independent retailers to end the year in slightly positive territory as they posted a gain of 0.2 percent for 2011 when compared to 2010.

In the U.S., paint and window coverings led the way with positive sales gains for 2011. Paint had a particularly strong fourth quarter, with a gain of 3.1 percent over the fourth quarter for last year. That put the product category in positive territory for the year, with a 1.5 percent uptick in sales for the entire year.

Window coverings slumped to a negative 5.7 percent sales change in the fourth quarter, but stronger sales earlier in the year allowed the category to post a 2.2 percent sales gain for the entire calendar year of 2011 when compared to 2010.

Regionally, the South and Midwest posted the best sales gains for the year, though the Northeast is showed strong improvement in the fourth quarter. The West is still lagging behind with falling sales in the neighborhood of 3.5 percent, both for the fourth quarter and the year.

In Canada, paint had a particularly strong fourth quarter, posting an increase of 5.6 over the same quarter of the previous year. This allowed paint to move into positive sales gain for the entire year at a 1.1 percent increase over 2010.

Among the factors leading to this improved sales performance are continuing recovery in the new housing sector (though used home sales are still experiencing declines) and an improvement in the Consumer Confidence Index.

The Pulse Report is a product of the PDRA Research Department. You can take a look at the full report here.

Posted by: Diane Capuano

PDRA has officially launched the new PDRA Customer Service Specialist online course.  As part of the PDRA Board of Directors’ new Retailer-to-Retailer initiative, this powerful new training course has been designed by paint store owners specifically for paint and decorating stores.

The course covers all aspects of professional customer service—from greeting your customers when they first walk through the door to finalizing the sale and everything in between. Chapters include: advantages of dealing with an independent store, selling add-ons, how to explain paint quality, telephone techniques, dealing with angry customers, competing against the “big boxes” and much more.

All totaled, the new course will take from seven to 10 hours to complete and may be taken in multiple settings over a 60-day period. Employees who graduate will have the knowledge they need to interact with your customers for the best possible outcome: increased sales and satisfied, repeat customers.

Paint and decorating retailers, you can be among the first to enroll by clicking on the PDRA Education page and following the instructions. The class fee is $79 for PDRA members and $199 for non-members (U.S. funds).

Non-members, do you want to take advantage of the member price? Then, join PDRA for only $149 and save $120 for every employee who takes the course while also enjoying all the other money-saving benefits of PDRA (Canadian retailers, click here). Both members and non-members are also reminded to check with your suppliers regarding the availability of co-op funds to offset the cost of this course.

Students earning a passing grade will receive a frameable certificate of completion, a press release for local news outlets and a PDRA Customer Service pin.

To view a free online demo, call Tina at 800-737-0107 or email tina@pdra.org.

For more information and to enroll, please visit the PDRA Customer Service Specialist page at the PDRA website.