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Hearth & Home July 2016

Richard Wright
Publisher/Editor,
Hearth & Home Magazine
www.hearthandhome.com

Perspective: Got Milk?

Many individuals and industries have looked at the “Got Milk?” campaign with unabashed envy (remember the milk mustache?), and why not? It began in 1993 with a $23 million annual budget, ended in 2014, and was one of the top ad campaigns in the history of advertising.

In 1993-1994, the hearth industry came up with $2 million for a campaign in about 17 shelter magazines. The tag line was “Fire Works,” but the campaign didn’t – work, that is. It was more “Spilled Milk” than “Got Milk?”

Would it be possible for the hearth industry, or the patio furniture industry, or the barbecue industry to come up with that kind of money every year for a decade or two? Theoretically, yes; practically, no. It would be as tough as getting milk from a stone.

Instead, the way we (meaning the three industries) can best increase consumer awareness and make homeowners truly covet our products is to continue placing high-quality products – not the cheap stuff – in millions of homes every year.

That’s where the hearth industry made its greatest mistake decades ago, and it continues today. The greatest numbers of hearth units sold each year are fireplaces, primarily gas, and the largest channel is through new construction.

The sad fact is that through all the years, from the dawn of the new hearth industry around 1980 to today, the main products going into new construction have been the least expensive fireplaces the industry has to offer.

So when relatives, friends and neighbors come visiting, what do they see? They see a boring fireplace that doesn’t get them excited, and certainly doesn’t make them want one for their home. But consider this: If an average of 20 non-immediate-family members visited each new home that has a fireplace during that home’s first year (that’s very conservative), it would represent exposure to about 15 million people (20 X 750,000 homes).

Over the 35 years since 1980, the hearth industry could have reached, and impressed, 525 million people. But the industry is still not putting its best foot forward – not even close.

That’s what Roger Oxford, SVP of Strategic Accounts for Hearth & Home Technologies, is trying to change right now (see article Start Selling!).

That task is more difficult for the barbecue industry because it gets its largest number of unit sales through the Big Box stores, making the average price of a grill pathetically low, say around $200.

The patio furniture industry is in much better shape than either the hearth or barbecue industries. Millions of groups of high-quality furniture go out to homes every year through a large variety of channels: patio retailers, mainline furniture stores, designers, architects, landscape architects, Internet sellers and catalogs. Even product sold through Big Box stores is of very decent quality – for the most part.

It becomes a self-driving machine, where those 20 people going into the home every year leave with a desire to purchase patio furniture.

Got Furniture?

More Stories in this Issue

Disregarding the Line

By Tom Lassiter

Gary Pettitt saw that the line between indoor and outdoor living spaces was disappearing, so he created products – and a company – to capitalize on that change.

» Continue

Single & Lovin' It!

By Lisa Readie Mayer

Single-person households are on the rise, so what does that mean for manufacturers and retailers of hearth and outdoor living products?

» Continue

Close Quarters

By Lisa Readie Mayer

Forget about living large. The Tiny House trend is gaining traction, and developing into another market for your products. Don’t laugh!

» Continue

Start Selling!

By Richard Wright

Roger Oxford is determined to increase the percent of fireplaces in new homes, and to improve sales of higher-end products.

» Continue

Let's Talk!

By Lisa Readie Mayer

How to open up conversations with your customers about the variety of cool barbecue accessories on the market that will lead to more sales.

» Continue

Volatile!

By Bill Sendelback

Sales of pellet stoves are highly dependent on outside factors, namely cold weather and relatively high prices of fossil fuels.

» Continue

Unpredictable!

By Bill Sendelback

Lacking a crystal ball, pellet fuel suppliers are at the mercy of outside forces, and perhaps are in a more precarious situation than their brethren, pellet stove manufacturers.

» Continue

2016 May Business Climate

In early June, Hearth & Home faxed a survey to 2,500 specialty retailers of hearth, barbecue and patio products, asking them to compare May 2016 sales to May 2015. The accompanying charts and selected comments are from the 234 useable returns.

» Continue