DANKS 2005 NATIONAL TRADE SHOW AND CONFERENCE THEY CAME. THEY SAW. THEY LEARNT, AND LAUGHED! Words like “fabulous!”...”fantastic”...”unbelievable”, are just some of the compliments flowing back after the highly-successful Danks “Show of Strength” at Darling Harbour. The four-day event has created an unbelievable stir in the hardware and garden centre community, has set the industry talking and raised the bar on how hardware and garden trade functions like this should be done. NO VACANCY signs were hung at leading hotels at Darling Harbour, as more than 450 HOME members, nearly 300 Thrifty-Link members, and some 133 Plants Plus members, flocked to this Danks “first”. While trade shows and conferences have always been a part of Danks’ business, this was the first trade show followed by a business conference. Another added incentive and applauded by members with young families, was the free accommodation and Kids Club (see inside). In addition, more than 50 supplier and Danks staff were in attendance manning supplier stands at the trade show. D-Day like logistics for the 1400 members and 100-plus children and supplier personnel doesn’t just happen. Behind the smooth procedures and event management was a small hardworking group ensuring the pieces fitted into place. General Manager, John Tregaskis, said it was the most ambitious event organised by Danks. “We called it a ‘Show of Strength’ and we staged it to demonstrate the power of single entities when they come together as a group. Our members are not on their own - they are part of something much bigger. “We had our key suppliers who are national, well-respected and leading organisations, showing Danks members, that as a group they have valuable leverage.” John said the link between all the conference speakers was the focus on people issues - the single most important factor within any business. “It was a huge commitment of finance and human resources, with 85 Danks people attending,” he said. “I’ve congratulated them all for the way they put in. We’ve had very positive feedback about the staff. They generated great enthusiasm for the event which transferred to members and suppliers.” “Show of Strength” was the culmination of good planning and management. National Merchandise Manager, Con Dekazos, commented: “Combining a national trade show with our conference evolved around 18 months ago. Previously, regional trade shows meant suppliers had to present at three events. “This year, only key suppliers and a selected number of trade suppliers who had really supported our business were invited.” The planning committee comprised John Tregaskis, Steven Johnston, Amanda Rodgers, Ian Bould and Con. He said: “We had tremendous response from suppliers, because they immediately saw the benefit of reducing costs in one major event that would attract a huge number of retailers under one roof. And they wanted to be a part of it.” Another member of the committee was National Retail Operations Manager, Steven Johnston. “I think it was a spectacular success. It was a win-win. Suppliers got a better trade show and members got the best conference ever.” “Our earliest indications were record registrations nine months out with most of our retailers registered by June 2004. The incentive of free accommodation on early registration worked. Members saw it as a real saving.” “The sponsors were terrific. Our own stand was also outstanding, particularly the outdoor range. If people were asking ‘are we keeping up with the market?’ we absolutely set them back. They were blown away by the range.” ‘‘ …What a fantastic five days. Congratulations. On talking with other retailers, suppliers and guests, all had a wonderful exciting time. It really was a “Show Of Strength”. Well Done. ’’ Stephen Iser, Hume & Iser HOME Timber & Hardware - National Chairman THANK YOU PLATINUM SPONSORS A major commitment to our “Show of Strength” was the contribution of our platinum sponsors We have a long relationship with Danks. When we GMC first started, Danks was one of the first companies to give us an order. They are a very friendly group to deal with and we valued this opportunity to show our products en masse. ‘‘ ‘‘ In my 25 years in the industry, it is the best I have ever been to, and it was a pleasure to be involved. We have had some very promising leads. Mike Bushe, Northern Region, Sales Manager - Otter Nails ‘‘ was an opportunity to convey the strength of the business that incorporates Dulux, Selleys, Orica Woodcare and Yates. There was a high level of interest from retailers. ” ‘‘ There was no question we would support the Trade Show and Conference at a Platinum sponsorship level. Danks is a very good distributor and has an excellent system in place. ” For Orica Consumer ORICA Consumer Product Group Products, the Trade Show ” Grant Nelson, National Account Manager ORICA Woodcare David Flintoff, GMC General Manager - Sales, Australia/New Zealand WATTYL ’’ ‘‘ ITW Retail Group, Cyclone ITW Industries, Smart Home products, F.H. Prager and ITW Proline, were delighted to be Platinum Sponsors at the ‘Show of Strength’ Conference. The retailer interaction, plus world-class presentations, made the conference an exceptional event. GROUP ” Graeme Sayer, Wattyl Senior Business Manager for Danks business. Neil Connon, Group General Manager, SPL Group Ltd. AWESOME.THAT WAS THE KIDS CLUB! “Shhhh”…With one drawn-out word, Sporting Spectrum’s Laura Connolly, brought a room of eighty children to silence at Danks’ “Show of Strength” Kids Club and twelve enthusiastic staff, had the challenge of catering, amusing and entertaining groups of kids numbering 8 to 11, and ages ranging from 5 to 17 years. All the kids meals and the program was provided free to members. Day one was a trip to Luna Park where Danks T-shirts could be seen everywhere. “These kids are great”, said staff member Ben, as young James Pearson (in his bright yellow tee), was seen on many occasions following his dreams around the Park. Andrew Baker another staff member, faced the challenge from the seven young ladies from Group 7, to brave the Rotor again...and again... and - well, you know! After a lot of persuasion, the McLaren brothers realised the ferry called. Waiting for them all when they got back to Darling Harbour, were their parents - and they were all counted and correct. Fox Studios was the place to be for Day two and that included Lollipops Playground, Adventure Golf, and a tour of the Sydney Cricket Ground for the older kids, with a movie to finish up. Lollipops Playground was the hit of the day, and the kids managed to kick around a football prior to the movie. But it seems Adam Gerasimou from Sporting Spectrum had his work cut out against Scott Taghiaferri. Rodney Copperbottom from the movie Robots was the star of the program on Day two, and told the kids that they could be whatever they wanted to be, no matter what became the thought of the day. Thursday was the adult inclusive program to the Powerhouse Museum, Rocks, and Aquarium etc. Prior to departure, Matthew McLaren positioned himself at the baby grand outside the Bayside Room and in true Harry Connick style, serenaded the group. Well-done Matthew! The Club concluded with an afternoon of ten-pin bowling and amusement games. Plenty of strikes were made throughout the afternoon, from young Peter Katona to Brendan Miller, and the ever-smiling Ryan twins. The amusement games proved a challenge for some but not for Adam Brown, Scott McLaren, Scott Taghiaferri or Nadia Katona, who cleaned up with spot prizes, which they shared with everyone. On the return to Darling Harbour, there was plenty of singing, exchanges of mobile phone numbers, which nearly brought a tear to Felicity Raymond’s eye. It was a great experience and everyone thought it just “awesome!” WE DIDN’T WRITE A WORD ON THIS PAGE! Just to thank you “ for all the work you did for the Danks Convention. It was a super, action-packed five days. We had a wonderful time. Thanks Thanks for for the the kind kind thoughts thoughts and and words. words. ” Jennie and Bob Peck, Carribean HOME Hardware W.A. Winsome and Peter Dreverman, Orbost Hardware. guess it’s looking at new “ Iproducts and seeing how other owners are doing things. It’s definitely beneficial coming down here as we’re expanding our product range with the possibility of going into nursery as well. ” Heather and Brian Coyle, Thrifty-Link Chairman Kenmore Plaza Brisbane. with Lyndal Guterres, Thrifty-Link Brand Manager. Stephen Rule, Plainlands Rural Centre, QLD: Thrifty-Link store owner. who aren’t here are It gives us motivation and ideas. We “ Members “ missing out on something which is take that motivation back home, and quite fantastic. It’s a great display from our major suppliers who show what they have available and the services they offer. There’s no other opportunity quite like it. ” instead of doing nothing, it makes us do something. We share what we have learnt with the staff. I think that anybody who doesn’t come to things like this is really missing out. …Jennie I though the Trade Show was excellent. …Bob ” “ ” Bill Ylias, HOME Hardware, Merewether NSW. Danks put this on is “ Having fantastic because you just we see sales people, we don’t “ While see a lot of southern ones. It’s good Craig Stibbard, Highfields Thrifty-Link Hardware QLD. to see so many products under one roof. We’re seeing products that haven’t been released yet, and we’ve seen them before we get them. We know what we’re getting, and can explain them to everyone. Shannon Borg, Jandakot HOME Hardware W.A. Jill and Trevor Pavy, Brodie Hardware Cloncurry - a Thrifty-Link store. ” couldn’t do it on your own. It brings the suppliers together, and it brings all the storeowners together where they can answer some of your questions. I take a lot of literature and brochures and photos and have staff meetings and discuss the specials. ” not here you’ve missed out “ Ifonyou’re you’ve never been to one, it’s a a lot of opportunities. A lot of “ Ifhuge eye-opener, and you’ll get a learning. A lot of fun and a lot of friendship. You don’t often get opportunities like this to come along for very little cost. If you don’t attend it’s an opportunity missed. ” think it was very well “ Iorganised, and there was a high level of entertainment, the conference was exceptional, and I’d love to have had a session where the Plants Plus could have got together. My wife’s been with IBM for nearly twenty years, she’s been to a few conferences in that time, but nothing as good as what Danks turned on, that’s for sure. ” Justin Taverniti Essendon Garden Centre lot out of it. We go to every stand to look for opportunities, and that’s what business is all about. Danks are really doing everything they can to assist the independent retailer. They do a fantastic job, retailers should make the effort to come. ” “ I think if you don’t attend you miss out on what’s happening and Wayne Pawson, Emmo’s Hardware Yandina, QLD you’re really behind the 8-ball and that flows through to the business. It’s usually the ones who don’t attend who need it the most. Well worth coming to, that’s for sure. ” came down to basically look at “ We the products and talk to other people and see what they are doing. As long as you have the staff, you’ve got to find the time. ” Stephen and Dianne Cooper, Cooper’s HOME Hardware, Bundaberg QLD. Ken and Ellen Choat, Crafers Garden Centre, Crafers South Australia. Parente told us that Danks do “ Lou everything to the ‘nth degree’ at these conferences, and he was right. The logistics of organising an event like this are mindboggling, but you pulled it off brilliantly. The accommodation was wonderful; the speakers varied and fantastically interesting; the drumming was fun; the Harbour cruise was exceptional; the fireworks amazing; the Sky Show was awesome, and the Gala dinner was wonderful. We learnt so much! ” THE GALA NIGHT WHEN AL It was the highlight evening of the Conference. The night when Group members and suppliers from across Australia, learnt who had been selected as the National Retailer of the Year, and those who would go home as State Winners. It was a celebration of hard work, dedication, and commitment, by the ‘best-of-thebest’. In addition, Suppliers were also recognised. It wouldn’t be a Danks conference without a surprise. And who set the tone after the presentation? None other than Jimmy Barnes and his band. Business was soon forgotten as the whole place erupted with people singing, swaying, and dancing to that special Barnes sound. What a Conference! What a Night! NATIONAL STORE OF THE YEAR 2004 MUZZY’S HARDWARE - TOM PRICE WA Greg Musgrave said Muzzy’s Hardware has been a HOME member over the past three years after their shop was destroyed by fire. “We were originally with Mitre 10 but changed over to Danks because of the support they gave us. Our staff were very enthusiastic about the win, and we had a welcoming home party at the airport with a few beers!” Stephen Iser, HOME Chairman congratulates Greg and Sandra Musgrave. The Muzzy’s Hardware team (L-R): Marlina Wishart, Sandra and Greg Musgrave, Jenny Gallaghan, Steven Chant. Back: Yolande Grixti. Front: Greg Beams and Lindy Giles. AND HERE ARE THE STARS FR HOME STORE OF THE YEAR 2004 Muzzy’s Hardware Tom Price - WA Grant’s Timber & Hardware, Wodonga Ibbotts HOME Timber & Hardware Reynella HOME Timber & Hardware Sandra and Greg Musgrave Ali Hutchinson receives award from Stephen Iser, HOME Chairman Paul Ibbott receives award from Stephen Iser, HOME Chairman Dee and Flin Chambers with Stephen Iser, HOME Chairman Lancefield Thrifty-Link Hardware Marshall’s Thrifty-Link Hardware THRIFTY -LINK STORE OF THE YEAR 2004 Highfields Thrifty-Link Hardware, QLD Brian Coyle, Thrifty-Link Chairman (left) with Robert Bryant Craig Stibbard Brenton Marshall PLANTS PLUS STORE OF THE YEAR 2004 Garden Grove Supplies - South Australia Jim Carraill Essendon Garden Centre West Park Plants Plus Garden Grove Supplies Plants Plus Chairman, Rob Vincent, with Justin Taverniti (right) Andrea and Mike McCullagh Jim Carraill (left) with Rob Vincent, Plants Plus Chairman LL THE STARS CAME OUT! THE SPECIAL GUEST WAS THE WORKING CLASS MAN - JIMMY BARNES GALA SUPPLIER WINNERS David Higham from Selleys, HOME Best Supplier of the Year and Richard Hansen from Yates Australia - Thrifty-Link Best Supplier. Con Dekazos, National Merchandise Manager, presents David Ferguson from Insulation Solutions with the Best Supplier - Building Products Award. Richard Hansen from Yates Australia receiving the award for Best Supplier to Thrifty-Link, from Con Dekazos, National Merchandise Manager. ROM EACH STATE David Higham from Selleys, the HOME Best Supplier of the Year. Orica Selleys and Yates Teams Award winners. Mudgee Hardware Peter Endacott receiving award from Stephen Iser, HOME Chairman Town & Country HOME Timber & Hardware Muzzy’s Hardware Tom Price - WA David Martin with Stephen Iser, HOME Chairman Sandra and Greg Musgrave Peter Doyle, Wendy Stuart and Stuart Hosking from the Laminex Group. (L-R): Keith Barrott - Oasis, Jeff Becker - Cooper Tools, David Higham - Selleys, Richard Hansen - Yates, David Ferguson - Insulation Solutions. Show of Strength Sponsors. Tanilba Bay Hardware Lee Wallder receiving the award from Brian Coyle, Thrifty-Link Chairman Highfields Thrifty-Link Hardware, Eaton Hardware Renee and Hugh Thomson Craig Stibbard BEST SUPPLIER STAND - NYLEX WINNER OF THE $10,000 TRAVEL PASSPORT Fernleigh Road Nursery Buderim Landscape Centre Everbloom Garden Centre Danielle and Mark O’Connor Anthony Johnson and Tiffany Sullivan Sue McDougall and Andrew Pankhurst Con Dekazos, National Merchandise Manager presents the $10,000 Travel Passport to Brian and Yvonne Larham of Thrifty-Link’s Water Drop Hardware, WA. SOME OF THE SPEAKERS WHO MADE THE CONFE (Here are some snippets of the presentations) the largest “ It’s hardware-garden centre conference ever, ”said Danks General Manager, John Tregaskis. He told the gathering there had been 1772 people registered for the Trade Show, and 1366 for the Conference a record. He said the shortcoming affecting DC deliveries had been addressed, and over the past nine months some 8 million lines had been shipped from Danks’ DCs. “This has meant a throughput of $313 million to the end of March,” explained John. “Service levels have improved with 93.7% of stocked lines available. John said in the period 2001–04 HOME purchases were up 60.7%; Thrifty-Link were up 24.8%, and Plants Plus for the same period was down 15.8%. He said members had continued to embrace JDS brands of WORX, Earthcore, Boulevard, Tekraft, and Del Terra, and these brands had increased 27.1% on last year. Plumbworx had grown over the past three years, as had MVP. DART which was launched four years ago now has 115 sites and 670 users with six full time dedicated support staff, Xtra Large (XL) store development is already established in seven locations across the country and this “think big” philosophy was seen across the HOME Group. Another 19 stores are awaiting conversion. A further 52 stores are awaiting traditional refits/relays. John said retailers needed to continue to improve their in-store offers with improved layouts; improved merchandising; products that meet their local environment; competitive pricing; using technology to assist managing business; continue effectively to market the Group, and their own operation. “The partnership going forward needs an improved supply chain from source of supply through to the selling shelf in store,” added John. “We need to improve how we communicate with both retailers and suppliers, continue to offer differential products programme, and continue to grow each group’s membership.” “The Consumer Now and Beyond 2010, and how it will Impact on your Business.” Presented by Bernard Salt, KPMG “In 1901, Australians living in suburbia comprised 15%, with 52% of people living in the country,“ said Bernard Salt. “Today, 58% of Australians live in the ‘burbs’, with just 17% living in the country. The fastest growing areas in Australia are the Gold Coast, Casey near Melbourne, Wyndham also near Melbourne, Wanneroo in Western Australia, and Brisbane’s south-west. “When a population shifts, it has a real effect on business, with 10,000 extra residents supporting jobs and spending for; • 3700 new suburban households • 6700 near inner city households • $82 million in retail spending (inc. GST) • $28 million in new supermarket spending (inc. GST) • $11 million in new hardware spending (inc. GST) • Half a K-mart • One cinema screen • 7500c. metres of pre mix concrete. Bernard said while there had been a huge swing to retirees and the over 50s heading to coastal areas, the reverse was the case in the United States, where the fastest areas of growth were desert areas like Phoenix, San Antonio, and Palm Springs. “The growth of household spending over the past decade has seen domestic hardware and household “Ten commandments of small and family businesses.” By By Jason Jason Lea Lea of of Darrell Darrell Lea Lea Chocolate Chocolate Shops Shops Jason Lea, who comes from the famous chocolate family discussed the issues of having family in your business. “Don’t ever overextend a family business from a financial point of view or lack of talent,“ he said. “It’s an instant formula for premature death. Focus on what you know and do the best, and do what’s best for the business. You must not allow family values to override commercial decision-making. The family must service the business, if that happens the family and business will do well together. He said the next 10 subjects were vital. 1. Ask for and accept outside advice from proven competent advisers. 2. Distribute information and communicate - family businesses are traditionally very secretive. 3. Have an Entry and Exit criteria for family members. - Hire slow and fire fast. If people don’t work out, discuss it with them. Don’t let boils fester. 4. Appoint an Independent Board Member or Adviser you respect - They must be unbiased, objective, with no preconceptions. They are experienced and their background is not as important as their experience. 5. Succession Planning - The boss’s job should be taken over by the best person to do the job. It’s the management that keeps the motor going. 6. Phantom Share Schemes or a Sense of Ownership - Unlike a public company private companies who have people working for them have zero sense of ownership. This can be fixed by implementing a phantom type share scheme. 7. Retirement - When a business is suffering it needs to be recognised. It’s the savvy owner who recognises the signs that the business has outgrown him; you’re running out of steam, and not contributing. Sometimes you have to make that decision for other members of the family. 8. Estate Planning, Ownership Spread/Divorce - Divorce can wreck a business. Secretive estate planning by some members of the family can create problems. 9. Non-Family Management - Vital for Success - It’s vital that you develop other than family management. By sharing sensitive information with non-family members you are showing you trust them. You must compensate in a fair manner. 10. Job Specifications for Family Members and Salary Structure - You need to have some degree of discipline. You need to pay the market rate. You must pay the job and not the man. Salaries should not be confused with dividends; any business worth its salt should be able to pay both. “Transformations: Sales Assistant to Sales Professional.” with with Frank Frank Romano Romano spending jumping 150%, while other retailers like nurseries saw an increase of 114% in the same period. Clothing retailers as a comparison saw a 61% increase. Retail spending on hardware in Australia was now $24 billion with the younger states of Queensland, ACT and Northern Territory spending more per capita than older states like Victoria, NSW and Tasmania.” Another feature of the changing Australian purchase pattern was the age women were marrying. “With the Baby Boomers back in 1971 the average was 21, where today the Xer brides were marrying at 29,” Bernard claimed. “In 2006, it will be trendy to be aged 50 something as there will be 3.089 million of us compared with 2.938 million 20 somethings.” Frank Romano told the audience that the purpose of business was to stay in business and too many times both management and their staff forget this. He said the way to being a successful Sales Professional was like a pyramid. At the bottom was embodying integrity. Above that was establishing and maintaining rapport with the customer. Once that has been forged, the sales professional elicits and detects what the customer wants by asking questions. Once these have been answered it’s then up to the sales professional to make it easy – facilitate – the customer to purchase the product. Finally, the tip of the pyramid is labelled: ASK. Frank said there was no such thing as a difficult customer; there are only inflexible salespeople. Underlining every sales transaction was the philosophy that says: “Make Me Feel Special.” How many of us do that when customers come into our stores? RENCE SUCH A SUCCESS “Solving your people problems - The road to ‘The Way.” Mark Mark McKeon McKeon Mischief, Mischief, Motivation, Motivation, Attitude Attitude Pty. Pty. Ltd. Ltd. Conference Conference MC MC Mark asked the question: which way is your business operating? He said businesses, sporting bodies and families operated in one of four ways. “These are: My Way. No Way. Our Way, and finally The Way. The road to The Way requires three essential ingredients: Clearly defined goals and sense of direction. Being able to communicate, and undertaking consistent behaviour. He said there were Five Individual Success Factors needed if you wanted to effectively lead your team. These were: Boundaries what you do, delegate, defer, or delist and what you can’t control. Acceptance - The job is mine. It’s here to stay. The ball is in my court. Self-Confidence - I’m not perfect but I can handle this. I am my own coach. Invest in Yourself - skills, knowledge, ambition, Las Vegas came to Sydney with one tremendous night! The glam, glitter and style of Sammy, Frank and Dean, created a feeling of Las Vegas when GMC sponsored the fantastic RAT PACK Evening at the Casino. The “toones”, the showgirls, the jokes, and laid-back artists made this an evening which will long be remembered - as these photos show! and rewards. No one does this and fails, Consistency - doing the things you need to do day to day. Actually sticking to your plan regardless of the distractions or circumstances. “The ingredients that drive profits.” A A presentation presentation by by James James Kirby Kirby James has a long pedigree as a business journalist, has also completed books on the life and success of three well-known entrepreneurs - Gerry Harvey, Richard Pratt and Janine Allis. He said Richard Pratt’s attitude could be gleaned in two sentences: “It’s so easy for people to take easy options. I despise being bored and having nothing to do.” Janine Allis, who established Boost juices, which now has a turnover of $36 million, said: “Let’s be honest, if I didn’t have my own business, I would never be chief executive of an enterprise this size. I wouldn’t even get an interview.” James said the three highly-successful Australians all came from different backgrounds. Janine Allis worked as a nightclub hostess, model, cabin steward cinema manager, and was a single mum. Gerry Harvey personifies Harvey Norman, while Richard Pratt is more likely to be seen at one of his packaging factories than in an office. After analysing these three A night on the world’s most beautiful harbour businesspeople, James said the six secrets of their success were:1. Personify the brand 2. Roll the Dice 3. Cut the Red Tape 4. Keep it in the family 5. Walk the Talk 6. Do it Now. He said perhaps there was one other secret and that was to have a traumatic childhood! A highlight of the “Show of Strength” conference was the way 1400 plus landlubbers suddenly found their sea legs. The music was right, the food great, and the fireworks display dazzling. Once again thanks to ITW-Group for another Conference highpoint! …AND IT WOULDN’T HAVE BEEN SUCH A GREAT SUCCESS WITHOUT OUR SUPPLIER PARTNERS nylex “YOU NEVER, NEVER KNOW IF YOU NEVER, NEVER GO!” JOHN DANKS & SONS PTY LTD 414 Lower Dandenong Road, Braeside, Victoria 3195 Australia • Telephone 03 9264 5002 • Facsimile 03 9587 1719