K Town Furniture Transcription

FM – Hello.

RH – Fred, Roy Hester. Catch you at a good time?

FM – Yes, fine, how you doing?

RH – I’m doin’ good, doin’ good. We’re trying to update our website and I wonder if we could get you just to, your words, we’re not trying to sound scripted, just in your own words, which you do better than anybody, if you were talking to another dealer what you would tell them about Planned Furniture Promotions.

FM – Right.

RH – Now, just in your own words, if you wouldn’t mind just saying a few things.

FM – We were not able to get merchandise from a manufacturer. The bank was going to foreclose on us, and our landlord was breathing down our necks for back rent. And we could not borrow any more money from the bank and we couldn’t, we had $760,000 out there that we had in deposits for customers that we couldn’t deliver the furniture. So we were in a very, very tight spot as far as being able to, and I have used PFP in the past and I felt like if they could come in, they would come to my rescue. And that’s what they did, they came in and we were able to work out a forbearance agreement with the bank, we were able to through our attorneys, work out catching our rent up to date, what we would pay, and got that satisfied, and had about six months of uninterrupted problems and we were able to satisfy every customer that we had and most of them we were able to get the merchandise in for them and we refunded very few. And if we had had to start refunding money that would have really played havoc with our, we would not have been able to have done that and we’d have had all kind of problems with our attorney general. But we were able to satisfy every customer and even to the standpoint of some of the service orders and even some of the shipments were made after the sale periods were over, because the manufacturer couldn’t ship, but we were able to do that and we were able to satisfy the bank for approximately eight months with the revenue generated from PFP’s sale. The sale personnel were very qualified and very good, worked well with our people and they ran a real tight rein on everything, and our accountant checked our books weekly and everything was in perfect order for the whole time of the sale, and it just saved us a lot of problems that we would not have been able to have done otherwise. And we have real estate now that we’re able to try to work forward in selling real estate and hope to get out of all of our problems totally. But without PFP’s sale, we would have had a real problem with foreclosure by the bank, the bank could have tied up our inventory that we had, the landlord could have also tied up our inventory, and none of our inventory was tied up and we were able to sell broom-clean with all the inventory, satisfy all the __________ orders that were out there that we had deposits on, and it made for a much healthier situation for us at the end, and we do not have angry customers, and we had people in our own towns that we would have had to face every week or every month, every time we’d go out on the street, and face them, well we kept the money [?], if it had not been for PFP. PFP enabled us to satisfy all these people and it made for a good sale and we did $5 million counting the rugs in the five-month period. And so, it was run very well, their personnel were strong and their sales people were strong and some of our people made more money during this period of time than they had been making for a long time. So, they, we had several that did extremely well during the sale, working on the floor under PFP.

RH – In the past, you used another promotional sales firm. How would you compare the two, or can you make a comment on that, just as you would say it?

FM – There’s no comparison in another firm that we used for a sale of closing one of our stores. The bookkeeping was superior, the sales staff was superior and the overall management was superior with PFP compared to the other company we’d used.