Case Study of Friedmans Appliance Center
The Friedmans concept first began in 1975 when Arthur Friedman opened Friedmans Microwave Ovens in Oakland, California. Microwave cooking was new and the store not only sold microwave ovens but offered classes to teach customers how to use them. (The Oakland store still sells only microwave ovens and is still owned by Art and Merle Friedman). Then in 1976 the first franchise store opened in Pleasant Hill, California and the franchise eventually grew to over 120 stores nationwide. Art Friedmans' philosophy focused on service to the customer and the community, trained sales personnel and a friendly environment in which to shop.
In 1980 Bob Atkins opened a Friedmans store in Pasadena, California and brought Art's philosophy to appliance sales in Southern California. After opening five more locations from Oxnard to Irvine, Bob concentrated his efforts in Long Beach in 1984. In 1994 he expanded the Long Beach location into a full line appliance store. In 2004 Bob and his wife Pat began construction on their own 26,200 sq. ft. building which tripled the prior showroom floor space. Bob and Pat continued to honor the Friedmans philosophy and they designed their beautiful new store for the customer's convenience and shopping enjoyment.
Friedmans Appliance Kitchen and Bath offers a complete selection of the latest major kitchen appliances and has been the place to shop in the Southern California area since 1984. Friedmans believes in providing value as well as unparalleled customer service before, during and after the sale.
Why we were called:
- To assist the Company with growth (they had been a previous client but like so many did not continue when the recession hit).
- To get the business back on track for potential sale of the business.
- To understand where they had taken their eye off the ball and to help them understand why they were losing money.
- Interested in possibly selling the business.
- Possible employee who might be interested in purchasing the business.
- Children not interested in any part of the business.
- Clients reaching retirement age.
What we accomplished:
- We have installed usable financials and dashboards to follow the flow of business.
- We have added processes and procedures designed to the company on the road toward growth.
- We assisted in the development of the sales team and the understanding of how to hire the right people.
- We helped them realize that they did not have to do giveaways of delivery and set-ups.
- The company is now profitable.
- The owners now have proper staff in place to allow them to not have to work in the business every day.
- The company now has clear lines of communication which has allowed for greater accountability.
- They have been able to increase profit through Gross Margin.
- Now that the business is fun again not such a strong desire to sell immediately.
- Financials are in place. Everyone closely follows the business and see where the money is going.
- Job descriptions are being utilized and everyone has a clear understanding of what is expected and that they will be held accountable for.
- Pro-formas are used to justify additional expenses before decisions are made.
- Management team meetings are held weekly and ideas/issues are resolved by the team.
- In between visits we communicate via telephone, text and email.
Because of the commitment of the owners to do whatever was needed to turn the business around, they have succeeded. Their passion is felt by the team who in turn is much more engaged than they have ever been. The business has been able to grow in many areas that were previously underperforming. The staff continues to grow but more importantly people are put into positons and roles that they can excel at. Each person is reviewed regularly and provided task agreements and improvement agreements to help with their continued success. The clients are also getting ready to go into their fourth follow up agreement with JRM. They maintain the ongoing visits as they understand the value of the relationship and how it continues to help them grow the business and stay focused on the areas that need to be improved upon. Our relationship is based on mutual respect and a deep understanding of what continually needs to be monitored to make sure the company is secure and moving in the right direction.