Happy New Year 2011 !

I’m sure that you are like me and are looking forward to a very rewarding year in 2011.

I want to help you get off to a great start.

Knowledge is power. It can be motivating. It can lead to fantastic ideas. It can be a catalyst for success. Building it is a gift.

With the gift of knowledge in mind, I compiled some of my favorite articles that I wrote for various industry publications. I’m passing them on to you.

Please let me know if an article or this post spawns an idea that you wish to put into action. Or, just let me know if you want some direction in helping you reach your 2011 goals.

I wish you the best in 2011!

Sincerely,

David W. McMahon

Business Profitability Consultant - "Keep learning, innovating and advancing"

PROFITconsulting, PROFITsystems

davidm@profitsystems.com

Select articles for you:

Let's Simplify Your Inventory – Part 1

Let’s Simplify Your Furniture Inventory - Part 2

Pay For Performance!

Get a better handle on your cash

Eight Techniques to Boost Profit

The Family Factor in Small Business

You Can Harness The Power of e-Marketing – Part 1

Harness The Power Of e-Marketing - Part 2

Financial Management Tools, Techniques, and Lessons from Super bowl XLII

Why Some Businesses Prosper Even in Slow Times – Part 2

Steps to Increase Vendor Credits

Relationship Marketing

What is Bar Coding REALLY Worth?

Dynamic Inventory Management - Part 1

Dynamic Inventory Management - Part 2

Dynamic Inventory Management - Part 3

Why 20% Inventory to Sales is TOO MUCH! (Web of consequences)

Modern Ways To Maximize Your GMROI - Part 1

Modern Ways To Increase GMROI - Part 2

Add 250,000 Gross Margin $$ Without Raising Prices!

Retail Efficiency Ranking

Pay for Performance - It’s a path to success!

Published in Furniture World

“My bottom line is 14%.” That was what a member of one of our performance groups modestly reported recently. “Wow!” and “How?” That was the reaction from the audience.

In a time when businesses with decent profitability are reporting around 5% net income, this company is at the top of their game. Are they just lucky? Are they an anomaly? I think not. I’ve seen similar break out performances many times – in ALL economies.

It comes down to this: to win you must create a business environment that breeds success – everywhere.

You see, a prime reason why top performing companies outperform their average performing peers is they pay extra when their people achieve better results. These successful businesses align their self interests with their employee’s self interests. They have a well executed Pay for Performance strategy (PFP). They understand that everyone deserves to make money – especially when they make the business money.

In this article we will look at how to create a winning PFP strategy for your furniture business. Be sure not to miss Chart #1 on the following page. It provides detailed examples of how you might implement your strategy.

The goal with PFP is to reward performance on the upside, above normal performance levels. This is not intended to replace your regular salaries or bread and butter sales commissions. It is intended to focus people’s attention on helping you accomplish certain business objectives. PFP costs you nothing if executed correctly since you only pay when productivity is increased. Best of all, it gives people a vested interest in your success by focusing their attention on your organizational goals. There are five basic steps to implementing a winning PFP strategy:

Step #1
Set Performance Objectives

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“I don't care how much power, brilliance or energy you have, if you don't harness it and focus it on a specific target, and hold it there you're never going to accomplish as much as your ability warrants.” ~ Zig Ziglar.

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Goals and micro-goals are the basis for PFP. You must know specifically where you need improvement to establish proper goals. Furthermore, you must know specifically how to make that improvement. For example, suppose you realize that your warranty close rate averages 10% on sales that can have product warrantees. Knowing that the best performing operations can close over 90%, it tells you that this is an area of opportunity. Set a performance objective to improve warranty sales. If you achieve this micro-goal, your bigger goals of increasing sales and gross margin could also be realized.

Step #2
Determine The Payment

Once you have your target set, you need to define the motivating element. Define the “carrot” for the “rabbits” to chase. This should be customized to your situation and your people. It could be money, paid time off, merchandise, dinner vouchers, sports’ tickets; you name it, and don’t be afraid to be creative and fun. Let’s say that you interview your sales associates and find that cash should be the “carrot”. And just for fun, let’s make this a team PFP program. After working the numbers, you decide to pay $1,000 per quarter to all sales associates for a 10% increase in the warranty close rate over the previous quarter’s close rate.

Step #3
Define How It Works

Keep it simple. Have the performance metric and term of measurement clearly defined whether it be a month, quarter, or year. Have the people that are responsible for performing, track and measure the metric that you are trying to improve every week. This will keep you moving toward your target. By measuring along the way, you can see if changes in strategy, methods, or further education are needed. When it comes time to assess the final measurement, you will already know if you have obtained the result that you were seeking. In our example, at the end of the quarter, if a close rate of 20% is reached, the team gets to split $1,000. This is all to the up side. There is no loss to the business. Everyone is happy. If not, try again next quarter or make a change to the program.

Step #4
Add, Drop, Change, Replace

Like merchandise, like employees, like vendors, like all things, some PFP programs will work better than others. If you create one that everyone likes, performance clearly improves making it easy to manage. You’ve got a winner. Let your winners run. On the other hand, if you have a PFP program that is not producing the desired results, change it if the metric is important. However, don’t be afraid to drop and replace programs to change the focus of your goals as your organization changes. Let’s say that you get your warranty close rates up to 70% on a consistent basis and you are happy with that; the effort that it might take to get it up to 90% might not be worth the time. Instead, you may decide to discontinue that program and replace it with a PFP that focuses on increasing average sales per individual. Keep your PFP strategy dynamic.

Step #5
Set The Rules

Think of it like a game. Be creative. Keep it simple. Keep it fun. Let others keep score. Results are reported to you – pay when your goals are realized. Cheaters are penalized.

Include Everyone

One important thing to understand when creating your PFP strategy is ALL departments and business partners should be included. Don’t leave anyone out. Improving sales metrics is not the only factor that contributes to increased cash flow and profitability. Every area, from purchasing to accounting, should be considered. You should even consider giving a bonus to your vendors and customers for exceptional performance.

To stimulate your creative side, check out Chart #1 below. You can take these ideas, customize them for your business and people, and get started on producing a PFP strategy.

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David W. McMahon is an inventory management and operations expert. Questions about any aspect of retail operations management or for help implementing the 5 SMART Steps in your business contact David care of FURNITURE WORLD at davidm@furninfo.com

Get a better handle on your cash

Here is an article that I wrote that was published in the latest issue of the WHFA Retailer.

We’ve all heard the saying “Cash is King”. That is very true. The level of liquidity that an organization can maintain determines the ability of that organization to operate each day and to succeed in the future. High liquidity allows organizations to reinvest in themselves to boost efficiency and sales. This reinvestment is the catalyst for expansion which generates even greater cash flow. On the flip side, low liquidity forces companies into cut- backs, tightening of operations and an eventual downward spiral.

Recently some business leaders asked me for advice on figuring cash flow with respect to actual versus money in the bank. They also wanted some specifics on using software and spreadsheets to assist in getting a better handle on their cash flow. With this in mind, I recommend four prime actions:

• Reconcile the bank account

• Generate a Statement of Cash Flow

• Forecast future cash levels

• Track key cash and liquidity metrics

Full Article: Getting a better handle on cash

We ♥ Cartier, Version 2.0: An Updated LOVE

Tinkering with an icon is tricky business: sometimes it works (VW's rounder, cuter, enormously popular reissued Beetle, for example) and sometimes it falls flat (New Coke, anyone?). So when we heard that Cartier was launching more jewelry based on its famous 1970 LOVE bracelet (above, left), we held our breath. Now, having seen the pieces unveiled, the verdict is in–many of the new designs are charming and easy to wear (though we still prefer the original), and there seems to be something for everyone. So one, two, three...and exhale.

The reason we prefer the original has more to do with symbolism than anything else: there's something deeply romantic about fixing a bracelet on one's wrist (using a Cartier screwdriver, of course) and never removing it. We're also fans of yellow gold and think the LOVE bracelet looks its best in that metal. These days, however, many people want white metals: hence the new collection's earrings, necklaces, bracelets and rings in white or yellow gold (and black ceramic), with diamonds or colored stones. Our favorite is a white gold bracelet (above, right) with blue and pink sapphires, purple spinels, amethysts and aquamarines. It's built like the original, but brought up-to-date for 2010. If only all revamped classics could be as good.

Photograph by Vincent Wulveryck © Cartier 2010

Pyrenex & Alexis Mabille: Braving the Elements

We ♥ New York, but not its winters: they're icy, cold and just plain l-o-n-g. So although it's only October, and still relatively mild, we're already planning ahead–which is why this jacket caught our eye. It's part of a capsule collection designed by Alexis Mabille for Pyrenex, a 150-year-old French company specializing in high-quality goose down. If this coat's details are any indication, the partnership–Pyrenex x Alexis Mabille–is just about perfect. (We especially like the quilting, the removable hood, the many pockets and the two-way zipper.) Buy it online via Studio Homme and prepare to laugh at Mother Nature.

Azzedine Alaïa: Fashion's Rebel With a Cause

Fashion's faithful may all worship in different temples–but most make a pilgrimage, sooner or later, to the altar of Azzedine Alaïa. In the larger context of "designer fashion," Alaïa is an anomaly: he ignores trends, turns away retailers who rub him the wrong way and shows (and ships) collections according to his own idiosyncratic schedule. Which at least partially explains why, on Sunday, October 10–several days after most of the fashion flock had left Paris–Alaïa sent his models down his runway for the benefit of a favored few.

Women worship Azzedine Alaïa because Alaïa worships women–it's that simple. Few designers understand a woman's curves better than this nimble Tunisian, which has kept him in demand for 30 years. What did Stephanie Seymour wear to marry Peter Brant in 1995? A clingy white Alaïa gown literally sewn onto her by the designer. What did Naomi Campbell don for her recent court appearance in The Hague? A prim-yet-sexy cream Alaïa dress with a matching cardigan. And what have supermodels, socialites and other beauties been clamoring for since 1980? Alaïa, Alaïa and more Alaïa.

Sunday's show offered classics (like the slinky white column, above left), but some twists, too–namely, ballerina-like silhouettes pairing fitted tops with short, full skirts (imagine Dégas' Little Dancer as Daria and you'll have the idea). Alaïa is no stranger to full skirts, but this was a slight departure–the flare he gives to a skirt has typically sprung from the hip rather than this season's waist. It's a great look, but you've got to have the figure–and, more importantly, the legs–to carry it off. Fashion's gods are many things, but they're not forgiving.

At Versace Home, Bigger & Bolder is Better

Over the years, the Versace Home collection has been hit-or-miss: for every spectacular silk sheet set or porcelain place setting, there's been a handful of less-than-stellar offerings. Lately, however, everything from the men's and women's clothing collections to the brand's image campaigns has been wrestled back into shape. A new, higher standard seems to be the order of the day.

Case in point: Versace Home is now collaborating with the world-famous Venini, an 85-year-old Murano glass making firm, to produce limited-edition bowls and vases. Like many Versace designs, they're not for everyone, but we like them a lot. For one thing, they resonate like original notes from the '80s, playing perfectly into that decade's current revival. They're also big, bold and brash enough to sweep snobbery aside. Sometimes, good taste is just a matter of muscle.

Five SMART steps to making money with inventory – Part 2

Let’s Simplify Your Furniture Inventory - Part 2

Published in Furniture World Magazine - Sept. 22, 2010

In the June/July issue of FURNITURE WORLD Magazine we looked at the first two SMART inventory steps, “Spotting Winning Items” and “Maintaining Them in Stock a Higher Percentage of the Time”. The premise is simple. Furniture retailers need to carry more best sellers because these items make more sales. And, to do so, you must buy as much new merchandise, as often as possible, in order to find new best sellers. What is not obvious to many managers is that you cannot just keep buying new merchandise without getting rid of non-performing items (dogs) first: the dogs. This brings us to the final three SMART inventory steps which will be the topic of this article. Continuing to buy new while not getting rid of the dogs leads to over-inventory, higher expenses, reduced profits, and cash shortages. Companies with record sales have become insolvent due to this reason alone. Don’t let it happen to you.

SMART Step #3:
Auto-identify and Take Action on Dogs

Auto-identifying your dogs means using your computer system to help you find your dogs. I know what some of you are thinking, “I know my dogs. I don’t need a computer to tell me what items are not making me any money.” That thought can only be true if you either carry under $200,000 in inventory or have a team of people tracking each single SKU on a daily basis. Operations with over $500,000 in inventory can have thousands of SKUs, cover twenty merchandise categories, and have ten to twenty primary vendors. You need to query your merchandise data base to flush out non-performers to enable you to take quick action and increase turns. Here is how you can do it:

• Set up an inventory aging schedule (or markdown code) on your
  inventory items.
• Create up to six aging periods in the schedule.
• For each aging period, assign a number of days aged and a desired markdown discount. A typical markdown aging for normally inventoried home furnishing categories is every sixty days. Six periods would be 60 days, 120 days, 180 days, 240 days, 300 days, and 360 days.
  • Query your inventory data once per month for all merchandise that are not best sellers. This will allow you to auto-identify your Dogs.

Once you have the information, take action. The Dogs are not going to disappear just because they have been identified. In Example #1 you can see suggested actions to take once merchandise drifts into subsequent aging levels. Actions can be discounting, spiffing the salespeople, a marketing opportunity, or a combination of actions. As the merchandise gets older, take increasingly decisive actions. If, you had a piece of merchandise on the floor for a year, would you return it to the vendor if you could? One hundred percent of clients answer, “Yes!” So, selling a small minority of inventory at or below cost is the same thing and – a customer will be getting a fantastic deal!

The next question I get is, “How do we maximize our margins?”

SMART Step #4: Reward High Gross Margin Sales

One system of paying commissions stands above the rest - variable sliding based on gross margin percentage. This system aligns the goals of profitability for the company with the salespeople’s goals of making the most commission.

Businesses that move from another commission method to one that pays at a variable rate based on gross margin percent experience an immediate 3%-8% jump in gross margin percentage overall. That translates to a huge increase in bottom line profitability.

So if you currently pay out the same percentage of sales regardless of the margin the merchandise is sold at, this will be the fastest and easiest way you will achieve a greater return on your inventory. Your GMROI will sky rocket. This is also true of operations that supposedly don’t discount. So here is how it works:

• If a salesperson sells an item at a higher gross margin percentage, you will pay a corresponding higher commission percentage.
• If a salesperson sells an item at a lower gross margin percentage, you will pay a corresponding lower commission percentage.
• If a salesperson sells an item at an average gross margin percentage, you will pay an average commission percentage.
  

Moving to Variable Rate Commissions

1. Figure out your percentage of commission on the sale for an average margin sale. By doing this, if nothing changes, everyone gets paid the same and your expense is the same. Refer to Example #2. Note that if an item is sold at a 45% gross margin, there is a 5% commission paid. So, for a $1,000 item, $50 is paid in commission. Very average. Nothing really changes.

2. Set a high gross margin percentage and related high commission percentage. Selling an item at 55% produces a 9% commission, or $90 for a $1,000 item (Example #2). The salesperson will be pleased because they make an extra 4% commission. Your company will by very happy because it makes an extra 10% in GM and extra 6% in profits!

3. Set a low commission percentage and related low commission percentage. The range between the top commission and the bottom commission needs to be at least 5% for variable sliding to work because the incentive is not as strong with anything less than that. In the example, the low commission percentage is 3% at a 40% gross margin sale. If you have a working markdown system in place this will be a minority of items. The salesperson is less likely to discount. They will also STOP bugging the sales manager to lower the price, saving you, the salesperson, and the customer time. Instead of price selling, salespeople will start to use better customer room selling techniques.

4. Set it up right. Do your math right. Make your schedule easy to understand. This is important so everyone fully understands the schedule.

5.Roll it out. Don’t be scared. Tell your salespeople you want to make them partners in your profitability and share more of the gains with them. This is a profit sharing plan. It is a raise! And, for those of you who want to test it first, tell your salespeople that you will run the new system in conjunction with the old way of doing things. Then tell them you will pay them on whichever way makes them the most commission. That will most likely last for one month and the old way will be ancient history.

So, now you know how to spot best sellers and maintain them better. You know how to get rid of dogs faster. And you are going to make a higher gross margin overall doing it!

To gain the biggest benefit you need the highest traffic possible. If you can increase traffic, while practicing the first four SMART steps, you will maximize the impact that the SMART steps have on your overall profitability. The greatest cash flow will be achieved. The final SMART step helps you increase traffic while managing your inventory better. Smart Step #5:

Target Customers in Your Database

The SMART Steps presented so far, cannot be implemented properly without solid retail traffic. The 80/20 principle states that the high majority of your revenue is produced by a minority of your customers. This is not an assumption or guess. Analyze your sales for the past five years and rank them by customer volume. You will likely see the same thing.

That is why knowing your best customers and treating them like gold is so important to any inventory management scenario. They are, in fact, a gold mine. This step is about properly mining the great customer gold mine for repeat business.

First off, this elite group must be treated extra special. Don’t just blast advertise to them. Your best customers should be part of your “VIP club” and receive special notices, gifts, birthday cards or emails, and invitations to private functions.

Segmenting this group separately from the bulk of your database will allow for better communications practices. If you have 50,000 people in your database and you want to have a cocktail party to introduce a new product line, do you want to send out 50,000 invitations? I say no. With this type of event, it is not all about traffic numbers. It’s about the right traffic. You will be better off sending 1,000 personal emails gathered from your salespeople. When your best customers come to the private event, you will actually be able to spend some time with them and properly determine their needs. That’s better than a showroom full of discount seekers, right?

Other than hosting a private VIP sale, there are other key targeted messages that should be sent via email, text, or snail mail to your customers. The purpose is to touch your customer more often with a real reason rather than just the same old holiday weekend discount. Remember, these messages should not go out to your entire data base. You must segment for relevancy. Here are some examples:

• Thank you for visiting our store. Do you have any other
  questions?
  - This message can be sent to anyone who gives you their information, whether they bought or not. It encourages customers to think of you first while they are shopping around.
  

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• Price quote and special information attached.
  - Send a message after a quote has been written up with all the necessary information. This is a great follow-up tool. The more quotes you give, the higher your sales will be – if you follow up.

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• Thank you for your purchase – here is a copy
  of your sales receipt.
  - This message should be sent after each sale. This gives customers a contact name and number should they have any questions or need something else.
  

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• Special order update inside.
  - Every customer wants to know the status of their order. Send them a message like this and it will save them time and make you look like you are really taking care of them.
  

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• Your merchandise is ready. Open to request delivery
  or pick up.
  - Many customers now prefer to do business via email rather than telephone. People don’t like wasting time with telephone tag. Give your customer the gift of convenience.
  

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• Delivery reminder with date and time.
  - Send a reminder that goes right into your customer’s smart phone. They will see that you are an innovative business.
  

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• Take our Satisfaction Survey and get a gift card.
  - After the delivery or pick up, send them a three question survey. You will build valuable information over time. Don’t forget to ask them: “What is your next home furnishings project?”

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• Help for your next project.
  - So now that you have some information on their next project, contact them to give them some ideas. And don’t forget the telephone! It’s still one of the most underutilized direct media devices.
  

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• Mattress ideas for your new
  bedroom set.
  - You should contact people that bought bedroom sets and did not buy mattresses, for example.
  

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• Some area rugs that will make your new living room amazing.
  - You can contact those who bought living room sets without area rugs offering purchase ideas for their new living room.

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• We miss you – here is a gift!
  - Search your past purchase information by last date of purchase.
  

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• Locals night only.
  - It may be a local community that brings people together. Divide your audience by their zip codes and send special messages.
  

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• Room planning demonstration.
  - This may be one for your VIP list. Why not teach your customers how to use your online room planner. Guess what? If you do this, you will have some customers who are better at it than you! You can even host a free design webinar for your customers.
  

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• Free workshop: How to
  accessorize your home.
  - Another one for your VIP list. Offer workshops on home style and décor.
  

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• Fans of Italian Furniture – Have a glass of wine or cappuccino and view the latest introductions from Milan.
  - You may be surprised at the following that some vendors have.
  

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• Happy birthday gift!
  - Most people love to be remembered on special occasions. It’s pretty much a guarantee open.
  

One common question, I get is, “Isn’t this too many messages?” No it isn’t. If you target properly and do it professionally, it will work. Touching your customers more equals higher traffic. On the flip side, if you send these messages to everyone, they will appear to be blasts and get fewer results. Be relevant.

Bottom line: Get to know your customers. Use targeted mediums such as email, the telephone, text, and direct mail to do so. Mass media is advertising. This is relationship marketing. Targeting allows you focus on developing long term relationships on a more personal level with the right people. When a customer becomes a friend then they become a customer for life.

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David W. McMahon is an inventory management and operations expert. Questions about any aspect of retail operations management or for help implementing the 5 SMART Steps in your business contact David care of FURNITURE WORLD at davidm@furninfo.com or call him direct at 800-888-5564.

If the World is Your Oyster, Van Cleef Has its Pearl

OK, we admit it: we have a real weakness for pink gold. And for bold rings. And, for that matter, for Van Cleef & Arpels. Over the years, we've enjoyed working with some of the house's highest of high jewelry, as well as some of its simplest. So imagine our pleasure, walking into VC&A's New York boutique on Fashion's Night Out, to discover its new Perlée collection of pink or white-gold earrings, bracelets and rings (named for those tiny, pearl-like beads). Heaven.

In fact, this perfect little collection has something for everyone, from relatively plain gold bands to flashier styles set with diamonds. And while everything's beautifully made (this is Van Cleef, after all) it's also blissfully free of pretension: most items are so simple and charming, an extravagant uncle, aunt or godparent could even bestow one on a lucky child. Understanding, of course, that Mom would have to keep it safe by wearing it herself (at least for a few years).

At Zilli, Perfection Is All in the (Many) Details

A custom shirt is a little luxury that can make any man feel like Master of the Universe–in the hands of talented tailors, fabric can be coaxed into flattering difficult skin tones, strengthening awkward faces and camouflaging less-than-perfect figures. Think of it as a sort of sartorial sleight-of-hand.

Here at FA2L, we've been lucky enough to enjoy the work of some of the world's best shirt makers–Charvet, Luigi Borrelli and Kiton among them. Most recently, we met the custom director for French label, Zilli. He took some 2o measurements (a "difficult" customer may require 3o) while explaining that he sources fabrics from mills around the world: England, Italy and Switzerland. We chose a sky blue Italian linen. We also chose to add our monogram just below the rib cage, on the left side–hand embroidered in white, with a navy drop shadow, no less.

A month or so later, a lovely box arrived in the mail–and inside was the most beautiful shirt we've ever owned. The collar is crisp, flattering and beautifully mounted; the body is elegantly trim, with long, luxurious tails that tuck perfectly into jeans or khakis; and the monogram is impossibly chic. But then, as the company's US director says, "At Zilli, to be fantastic is a daily task." Our assessment? Mission accomplished.

Photographs by Noël Sutherland. Hair by Davide Marinelli at De Berardinis. Model: Parker at dna models. Fashion assistant: Evie Cutshaw.

Levi's Curve ID for Women: It's a Booty Call

No item of clothing is more basic than blue jeans, but finding a flattering pair is difficult for many women. Levi's hopes to change that with Curve ID, which FA2L recently previewed at the company's New York store on lower Broadway. Our shapely intern (let's call her E.V.) stood patiently while she was measured for her differential–the slope of her curves–and questioned about past experiences: Did waistbands tend to gap? Were jeans that fit her hips too tight elsewhere? Then she was handed two pairs and asked to give them a try.

It's nice when a woman comes out of a dressing room wearing a big smile–and E.V. positively glowed with the combination of sun-kissed skin, good hair (new cut and color) and a pair of bum-flattering, medium-dark jeans that hugged her curves and made her legs look impossibly long. She'd tried on the salesperson's first suggestion, and was so happy she didn't bother with a second opinion. Of course, new jeans require new shoes (and words like Christian Louboutin definitely entered that conversation). Men of New York, beware! E.V. is stepping out, and you guys won't know what's hit you.

Photograph courtesy of Levi's

Addicted to the Scissor Sisters: Any Which Way

From Fashionable Travel to Fashion As Furniture

It's rare to find old Louis Vuitton trunks in good condition, because cases like this usually saw hard use over many years of service. Before air travel turned global circumnavigation into mere hops, skips and jumps, intrepid voyagers packed at least a month's worth of clothes and necessities into serious luggage; loaded it onto carriages, wagons or lorries; transferred it to ocean liners; collected it on the further shore; and continued the process indefinitely. Even a single Grand Tour could sorely test the strength of corners, locks and hinges (not to mention human limits of patience and endurance).

Still, trunks do show up from time to time, and they're always in great demand–not as trunks per se, since only old-school nomads and those hoping to mimic them bother schlepping gear in such an impractical way, but as status coffee tables. Rau Antiques, in New Orleans, currently has two low trunks like the one above, and an enormous, upright wardrobe that would look spectacular in a loft or a walk-in closet. Obviously, they're very expensive, but they're also good investments: the asking price for cases like this tends to go up every year. And even stuffing money in your mattress won't accomplish that.

PETROU\MAN: An Officer, Gentleman & Punk

New York is first and foremost the home of classic sportswear, but its runways and showrooms offer plenty of surprises in the realm of "forward" fashion. Last season, we came across an aggressive collection by Nicolas Petrou, who's toiled at other companies more than 15 years but recently launched his own line, PETROU\MAN, for which he's designing clothes refreshingly in and out of sync with current trends.

Diana Vreeland loved to say that Coco Chanel had very little taste, but all of it was good, whereas Elsa Schiaparelli (Chanel's rival, and a spectacularly inventive designer) had loads of taste, most of it bad. In other words, too much "good taste" can sometimes get in the way of good fashion. We happen to like Petrou's clothes because they're beautifully made but slightly outré: there's an odd, raffish quality to these pieces that suggests layers of traditional British tailoring, early-80s punk rebellion (all those safety pins!) plus a dollop of cool minimalism from the mid-90s. That's a lot to juggle, which is undoubtedly why the collection is only being sold at directional stores like Bellhaus, New York, and Joyce, in Hong Kong. (Of course, you can also check with the New York showroom–just call, or write, and ask very, very nicely.) Meanwhile, the safety pin jacket alone is a thing of beauty–worth, perhaps, even a ticket to China.

From top: 1) Wool tweed anorak and stretch pullover by PETROU\MAN. Velvet scarf by Maison Martin Margiela. 2) Wool topcoat, pants and cotton shirt by PETROU\MAN. Cotton scarf by Dior Homme. Boots by Christian Lacroix Homme. 3 & 4) Tie-dyed cotton jacket with safety pin shoulder details and wool drawstring pants by PETROU\MAN. Cotton shirt by Dior Homme. Stainless steel watch by Baume & Mercier. 5) Leather jacket by PETROU\MAN. Cotton shirt by Costume National Homme.

Photographs by Noël Sutherland. Hair by Davide Marinelli at De Berardinis. Model: Parker at dna models. Fashion assistant: Evie Cutshaw.

In Fashion Land, It's Always Christmas in July

Christmas in July is fashion shorthand for an annual ritual–the unveiling of holiday collections during the hottest month of the year. It's a holdover from earlier eras of long magazine lead times, but we sometimes wonder if it still holds sway because it enforces a certain Darwinian ruthlessness. (Think of it as natural selection for party frocks.) As temperatures climb into the 90s and overheated editors schlep from one appointment to another, their patience, and attention spans, shorten dramatically. Products have one, brief moment in which to shine or wither away. Further proof that fashion is not for weaklings.

Jerome C. Rousseau's tartan pump probably wasn't designed with Yuletide in mind (Vivienne Westwood seems a more likely inspiration than Father Christmas), but seeing it reminds us that so-called holiday items will hit the shelves or be available online anytime between now and the holidays themselves. And therein lies the problem. Most women wouldn't wear this shoe every day, so they don't think to buy it now; however, there are plenty who will miss having it in their closets when parties roll around and it's long-gone from stores. In other words, strike while the iron is hot (whatever that means). It's the beautiful things you don't buy you always regret.

Oribe Sprinkles Moon Dust in Your Hair of Gold

On a recent photo shoot, we watched, fascinated, as Davide Marinelli, a stylist at De Berardinis, New York, used Oribe's 24k Gold Pomade (sold at the salon) to tame Parker's tumbling surfer curls. The product itself is gorgeous–real gold suspended in liquid pomade that looks like molten metal, packaged in an embossed tub worthy of Gianni Versace–and the effect is literally brilliant. Using his fingers, Marinelli applied it along grouped strands; and with each coat, Parker's sun-streaked hair glowed more and more. It brought to mind Marlene Dietrich's wily movie star trick of sifting gold powder over her platinum locks, to catch the director's key lights and form a halo around her head. Of course, in Parker's case the effect was more '80s Bruce Weber-golden boy than '30s silver screen, but that's fashion for you. Each generation seeks a glamorous new version of the Midas touch.

Photograph by Noël Sutherland. Grooming by Davide Marinelli at De Berardinis, New York. Model: Parker at dna models. Fashion assistant: Evie Cutshaw.

Bozeman Watch: Designed in Sight of the Rockies

We love Montana: it's a big, gorgeous, unpretentious state with so much beautiful scenery it looks untouched by whatever happens anywhere else. Ted Turner owns a ranch south of Livingston large enough for bison herds; he also runs a decent steakhouse in Bozeman, where some of those animals end up on the menu. We stumbled across this handsome watch while shopping along Bozeman's Main Street–it's part of a limited series designed by the Bozeman Watch Company, one of few American brands specializing in mechanical timepieces. And although it's made of Swiss and German components (and partially assembled in Switzerland), it has a bold, no-nonsense American sensibility we find very attractive.

This particular model, the Cutthroat 2nd Edition, is named for a native trout that's been luring fishermen to Montana's rivers season after season. It's big (42mm in diameter), housed in a stainless steel case and mounted on a simple leather strap. There are no unnecessary gimmicks, just a sweeping seconds hand, a date window and markers around the outer dial (plus a red-tipped indicator) providing 24-hour GMT. Questions? Visit the website by clicking the company's name, above, or call 1-877-878-1780. Don't be shy: as is the case everywhere in Montana, the people we met in Bozeman couldn't have been nicer.

Wonder Years: Yves Saint Laurent Haute Couture

Last week, the small group of designers who still call themselves couturiers showed their collections in Paris. Some offerings were astonishingly good: Stéphane Rolland's intricately draped mini dresses and long mermaid gowns, Givenchy's vaguely-medieval yet futuristic garments (which could be worn with equal aplomb by 20-something Lady Gaga or 40-something Gloria Guinness) and Karl Lagerfeld's shimmering spill of combustible Chanel, dredged from the depths of his limitless imagination. But two men, at least, were conspicuously absent: Valentino Garavani, who has left the business; and Yves Saint Laurent, who has left the world.

We wonder–do young fashion initiates roll their eyes at the mention of Yves Saint Laurent? It's possible, especially since his later career involved reworking a small set of elements he'd decided were integral to a chic woman's life. Season after season, he offered simple dresses, navy pea coats, perfect jackets and practical tuxedos. And yet, for all his emphasis on wardrobe staples, he could just as easily shake out his handkerchief and scatter flights of fancy like a flock of parakeets.

One such magical display happened in 1988 and yours truly had, if not a ringside seat, then something in the fourth row orchestra, dead center. The setting was Vogue magazine, B.A. (before Anna), and Irving Penn had photographed the Spring couture. In that era, the images were on large-format film, and the long strips were coiled in a flimsy box. (Penn had been shooting for Vogue more than 40 years–he obsessed about photographic details but didn't sweat the small stuff.) It was my job to cut the strips into manageable lengths–something that had caused me great anxiety at first; imagine cutting into Irving Penn's film!–and spread them on light tables in the art department. Then I'd alert Mr. Liberman, Miss Mirabella and the sittings editor, Polly Mellen. But for 15 minutes, while snipping madly, I had the images all to myself. And I was beyond dazzled.

Yves Saint Laurent had taken inspiration from Braque, and done so in a way that literally allowed Christy Turlington or Katoucha to step inside the artist's collages. A naïf guitar (beautifully sequined and beaded) formed the stomacher of one dress; birds hovered in preposterous places on others; and, in a picture that would become the story's opening spread, above, a shocking pink dove wrapped one wing around the neck of that era's Most Beautiful Girl In the World and clasped the front of her gown in its beak. As for me, I was blinded by the light, and could never look at clothes–any clothes–the same way again.

A Phoenix From the Ashes: The House of Versace

It's been a long time since we've felt anything more than nostalgic fondness for Versace products, but Donatella & Co recently kicked everything back into high gear. This was evident on Versace runways the last few seasons, and Fall's message is even stronger thanks to Mario Testino's slightly-tacky/mostly-chic (and decidedly in-your-face) ad campaign. All the elements are there: gorgeous girls, gorgeous boys, killer styling and really good clothes (the top photograph alone makes us want to run out and buy that leather jacket). Best of all, there's not a Medusa head, Greek key or logo in sight–which, for the house that Gianni built, truly represents a brave new design stance.

It's Summer, and the Wardrobe Should Be Easy

Here at FA2L, we love summer clothes but ask a lot of them: they should be comfortable, hold up to considerable wear and tear and, above all, look effortless–when it's 90 degrees in the shade, no one appreciates tricky effects. But that doesn't mean abandoning fashion.

In other words, there are basics, and then there are chic basics. So instead of flip-flops (best kept for the beach), women might want to consider French Sole's comfy, quilted leather ballerina flats from Manhattan's new French Sole Comfort store. Men, if the occasion calls for a tie, should skip heavy silk and try cotton knit versions by J.M. Dickens. As for hats, they're not just good-looking, they're smart: they protect your face and scalp from the broiling sun. This one's by Rod Keenan, who imbues each design with personality to spare. Meanwhile, "the basics" have been left far behind in the wake of a stylish summer.

Polaroid photographs by Anthony Philip Festa, www.anthonyphilipfesta.com.

Burberry Prorsum: I'm Shopping As Fast As I Can

It's official: the fashion industry is jumping the shark by letting fashion junkies pre-order men's clothes and accessories that literally just came down the runway. Balmain did it last season–this time, it's Burberry Prorsum (ostensibly for Spring/Summer 2011). So you can buy a sharp cotton trench, a chic studded shoulder bag or a slim navy military coat now, and receive your order well before anyone else sees these products in stores. But it does beg the question–what's next? Perhaps brands will preview their runway shows, so editors, store buyers and other savvy customers can sit in the audience already dressed in the same clothes being shown on the models. By which point, the hamster wheel of fashion will be turning so fast it may all just become a blur.

Passport to Profit - New Service

PROFITsystems Launches "Passport-to-Profit"

- Home Furniture Business, June 7th, 2010

Furniture retail automation vendor and consultant Profitsystems Inc., Colorado Springs, Col., has launched "Passport-to-Profit," a new program designed primarily for new clients with the goal of getting them up to speed on their business' key metrics. The program is open to current clients as well.

Passport-to-Profit kicks off approximately three months after a client goes live on the software, or existing clients can participate any time they feel the desire for additional help. One of Profitsystems' customer satisfaction representatives works with the client to gather reports that provide baseline metrics on the business. The metrics include things such as GMROI, sales per square foot, and inventory to sales ratio. A senior consultant reviews the reports and metrics and formulates a plan specific to that particular business. The consultant and the client meet to review findings and provide the client a list of concerns and opportunities for the business. The consultant also makes recommendations as to where the owner and manager concentrate their efforts. After six months, the process is repeated to monitor results and offer new insights to keep the client's momentum going.

"We are in a unique situation where we not only have software to help manage a business, but a consulting department that can take a client to the next level, what ever that may be," said Profitsystems COO Shelley Parlin . "Many retailers come to use our software because they are either not able to make the profit that they should, or just can't grow their business with their current tools. Our new Passport-to-Profit project is exciting because from day one we can help them focus on the area where their business needs the most help, and we can provide them the expert advice that will get them there quickly."

In working with retailers to develop the program, Profitsystems found that many business owners know where their trouble spots are but just don't know the best way to overcome them. Others know that they have room for improvement but just can't step back far enough to see what they can change. Often, they have done things a certain way for so long that it doesn't even occur to them that it might not be the best way to do things now.

"Our mission is to make retailers more profitable and our software has incredible tools that do exactly that," said Profitsystems CEO Jeff Niskern . "We also know that owners and managers get pulled in so many directions by the day-to-day operations of their business that effectively tracking everything they have to do is extremely difficult. This new project gives us a great opportunity to step in and help executives look at their businesses with fresh eyes to see what opportunities they have to impact their bottom line."

For more information on Passport-to-Profit contact Wayne McMahon by e-mail.

Polaroid Echoes and Perfect Perfume Memories

Ben Gorham, the creator behind Stockholm-based Byredo, is a compellingly contemporary young man. He's tall, dark and handsome, but also heavily tattooed; his father is Swedish, his mother, Indian, so he grew up around the world; and he's a guy's guy who played professional basketball but then turned from that to dive into perfumery. FA2L was also happy to discover he's a smart conversationalist who enjoys discussing anything except his fragrances, which he generally prefers be allowed to speak for themselves.

Gorham's most recent creation is La Tulipe, which smells exactly like its namesake. There are notes of freesia and vetiver (providing a tenacious base), but the clarion call at the perfume's heart is as sharp, green and pretty as a bowl full of bright Dutch stems. This is no small feat: few, if any, fragrances are based on tulips. Not everyone will love it (soliflores, built around a single flower, are notoriously difficult to wear) but those who do will fall hard. Which is precisely what makes perfume so compelling: like Anthony Philip Festa's polaroid, it resonates in the memory, plays tricks with time and hints at moments, however fleeting, when you felt beautiful, witty or blissfully happy.

Photograph by Anthony Philip Festa.

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Flash Demo #1: PROFITdelivery

We have added a flash demo section to our blog. On the right side column we will post product demos that run automatically in your browser. They are audio as well as video (so make sure your volume is turned up).

Our first is PROFITdelivery. This is our routing and mapping service that interfaces from PROFITprofessional.

The difference between a high profit operation and an average operation with respect to the delivery department is 1% of sales. You will save at least 10% on fuel costs alone!

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