Page 30 - Lighting Magazine December 2019

2020 Forecast
“In 2020, reps will need to figure out how they can best add value to the supply chain by driving business to partner showrooms.” —Ken Lebersfeld,
Capitol Lighting
holidays and UMP, which many showrooms feel undermine their efforts – while talks about how to increase profit margins in the showroom channel de- spite these price hikes are making clear that creative and industrious solutions are more necessary than ever.
Ken Lebersfeld, CEO at lighting retailer Capitol Lighting, says vendors will need to make sure there is enough profit margin for all channels to give end consumers the type of modern customer experi- ence they’re expecting today.
“Currently, profit margins are being reduced by UMP holidays and perceived competition between vendors,” Lebersfeld says. “Vendors and retailers must change their perceptions of each other. Ven- dors can increase UMP multiples and raise prices, and retailers must use that additional margin created to modernize displays and systems to improve the shopping experience.”
Working TogeTher
The idea of all parties in the industry – manufactur- ers, sales representatives, and retailers – working together to achieve success is not new, but it is even more crucial in today’s landscape of online shopping and big box stores.
With the end consumer now owning more power
than ever when it comes to their shopping habits and buying behavior, showrooms must innovate to provide an experience that cannot be replicated online – one that draws people into their brick-and- mortar environments to buy, and keeps them coming back. Working with their rep and vendor partners to collaborate on these experiences is key.
“In 2020, reps will need to figure out how they can best add value to the supply chain by driving business to partner showrooms, helping to create engaging retail displays,” Lebersfeld explains.
A successful partnership between retailer, rep, and manufacturer will be integral to move the lighting showroom channel forward. According to Garofalo, at the recent Lighting One joint Member and Supplier Advisory Council meeting, the impor- tance of partnership and support was the underlying theme in all discussions.
“Partnership ensures profitability and sustainabil- ity to the Lighting One members, suppliers, and the industry, and not divisiveness of circumventing sup- pliers and excluding reps,” Garofalo says.
Drew Mihelish, owner of Western Montana Light- ing in Missoula, Montana, is looking to deepen her vendor partnerships moving into next year, and along the way, working to develop a true understanding of the end consumer the whole industry is trying to target.
“Being a key player in this industry may mean mak- ing big decisions, and to Western Montana Lighting, we are truly looking to collaborate more with ven- dors who support us individually and the showroom industry as a whole,” Mihelish remarks.
This notion of reciprocal support and partnerships is top of mind no matter which party you speak to.
“It will be important now more than ever for manu- facturers to support showrooms that support them; and showrooms in return consolidate the number of manufacturers and products displayed by increased breadth and depth with key aligned partners,” Ga- rofalo says.
Brick-and-mortar lighting stores are still very important to the shopping experience, and as they continue to evolve into 2020, an optimistic attitude on the channel’s success is had by many.
“I believe that our industry is finding its way through the distribution issues slowly but surely,” notes Steve Falk, General Manager at Hermitage Lighting Gallery in Nashville. “I’m confident that we will see our brick-and-mortar showrooms rising up as they find their place in our new landscape.” 
26 enLIGHTenment Magazine | DeceMber 2019
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