BANQUET CHAIR 101 SALES TRAINING

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BANQUET CHAIR 101 SALES TRAINING JORDAN MCINTURF 2017 Shelby Williams

Objectives Be able to identify a quality chair among the choices in the market Review chair construction materials and techniques Fire codes impacting the banquet room How to figure out storage requirements Impact of fabric on cost and durability Learn our product offering and how it fits Learn about our primary competitors

Importance of the banquet room Critical driver of hotel night stays and revenue for the operation The right design of the space drives bookings for the room and hotel nights The right design will drive social and business revenue maximizing the square footage

History of commercial stacking chairs The stack chair was invented by Tri-Par manufacturing in early 1960. Engineer was Peter Barile Sr. Tri-Par was purchased by Shelby Williams in 1968 and continues to sell banquet chairs today First major hotel was Fontainebleau, Miami Beach First folding banquet table 1927 Howe furniture for the Waldorf Astoria in NY

PRODUCT CONSTRUCTION 2017 Shelby Williams

Construction and the 6 F s Frame Foam Fabric Fabrication Freight Fashion (design)

Which is the $22 dollar chair?

8

Frame Construction and Fabrication Steel vs. aluminum Gauge Weight Welds Types of welds Grinding of welds Tack weld

Frame Construction Details Under seat support Stack bars, anti-racking bars (stabilizing bars)

Frame Construction Details Action back mechanisms Invented 1992 Are key for ergonomic movement and comfort

Frame Construction and Fabrication Types of stacking chairs Frame on Frame Straighter stacks, smaller footprint. Strongest method Leg on Leg Straighter stacks, smaller footprint Puts pressure on the legs Seat on seat Bowed stacks, larger footprint Soiling can be an issue Lower stacking limits (4-6) Critical dimensions of the frame or overall chair determine the footprint during storage

Glide and bumper options Swivel glides with Perma-lock spring steel clips Nylon - standard Metal (nickel) - $23 list upcharge per chair Boot reduces scratches when stacking Boots have a few colors available. Frame bumpers reduce damage to the frame when stacked.

Seat Systems Contoured vs. Flat Seat depth variances Deeper seats provide more comfort: 15.5 vs. 17 Waterfall edge Eliminates a pinch point

Seat Systems Types of seat sub straights: Plywood Particle board Plastic hard and perforated Webbing

Seat Systems

Foam Types Flexible polyurethane Molded flexible polyurethane Foam Quality Density Measure of quality Impacts cost 2.3 lb. is a minimum We offer 2.8 lb. ILD Comfort (softness) No cost impact

Finish Options Powder coat Types Polyester, Epoxy, Blended, Acrylic Phosphate washed to remove impurities Multi-step heat cured for a hard finish Plated finishes Bright chrome vs. polished chrome Stainless steel Plating quality: US production only Other colors: Brass, Bronze The impact on the environment Anodized finishes for aluminum New wood grain paint finishes

Fabric Best material for the job Wyzenbeek test 15K, 25K, 100K? What is needed? Polyester based Stain resistant Well priced Stain guard options / backings Crypton, Nanotex Pattern selection and maximizing yield Repeat size can effect the amount of yardage Mixing fabrics on the chair

Fashion (design) Metal vs. Aluminum Bending steel vs. welding aluminum Quality of welds Customization Flexibility of customization Common ways to customize Franchise Designs done by independent designers Can have additional fees built into products.

Freight Chairs are expensive to ship Cubes per truck or container Typical packing wrapped and boxed 40 container = approx. 800 up to 1,000 banquet chairs 20 container = approx. 350 chairs

Fire Codes Fire Codes TB117-2013 vs. The old TB117 Different testing method (smoldering vs. open flame) Purpose is to remove flame retardant chemical toxicity TB133 May require flame barrier to be added to the chair Foam is the culprit ASTM-E84 Building materials testing Does not really apply

Codes Durability BIFMA Standards Static Load Back pull Frequency Weight 250 lbs. Proven performance in the market

Our Limited Lifetime Warranty What is covered Manufacturing defect such as a bad weld What is not covered Damage from abuse, misuse, handling, wear and tear, foam failure, fabric failure How do we compare. The same with like competition for the most part. When you boil down what is covered it is the same.

THE REAL WORLD! 2017 Shelby Williams

Where do all these chairs get stored? Why does it matter? 10 high 1 chair = 24.5 D x 18.5 W 1 Stack of 10 chairs = 5 sq.ft. 500 chairs (50 stacks) = 250 sq.ft. 8 high 1 chair = 24.5 D x 18.5 W 1 Stack of 8 chairs = 5 sq.ft. 500 chairs (63 stacks) = 315 sq.ft. 28% more square footage

A word about chair carts Do you need them? Yes Do they need to be purchased new every time you buy chairs? Yes Do they need to be from the vendor that made the chairs? Yes Can you use a competitors cart? No, our warranty does not cover damage due to inappropriate carts.

How much does your chair weigh? A typical room holds 500 people. A steel chair = 18-20 lbs. A stack of 10 = 190 lbs. 500 steel chairs = 9,500 lbs. total (50 stacks) A aluminum chair = 12-15 lbs. A stack of 10 = 150 lbs. 500 aluminum chairs = 7,000 lbs. total (50 stacks) A typical stack of 10 chairs is 70 at seat height. Equates to lifting 3-4 chairs higher than chest height per stack Creates potential stress / strain issues.

Quoting in a competitive market A customer requests a price on the 8668 with a Grade 2 fabric. What s the price? $150.30 ea. $145.25 ea. $134.80 ea.

Quoting in a competitive market It s all about the information! Qty: 700 chairs Grade 2 fabrics: range from $12-$24 per yd. Fabric: Canter (Grade 2), cost $14.00 yd. $150. 30 $334.00 list (50/10) Grade 2 (0.8 yd.) FOB: Newport Total: $105,210 + freight $145.25 $125.00 ea. Grade 2 (0.8 yd.) Freight included Total: $101,675 $134.80 $125.00 ea. Fabric: Canter - $14.00 yd Fabric yield 0.7 yds Save 70 yds ($980.00) Freight included Total: $94,360

How liability can come into play Liability risk is real for today s hotel owners 1 Claim to create a file costs between $5-10K If it s not litigated it will take up to 2 years to conclude and cost an additional $5-10K to settle. If litigated, the time goes up to 2-3 years and the cost can be between $25k - $200K depending on the injury 1 claim can eat up 100 s of hours of time.

BANQUET CHAIR CATAGORIES 2017 Shelby Williams

Shelby Williams - categories Couture de Light Aluminum frames Comfort de Luxe Aluminum and Steel Non-traditional in style Original Collection Steel Chairs

Couture de Light Manufactured in China Orders over 350 units ship direct to the location. 1000 chairs can fit on 40 foot high cube container. Lead time is driven by the fabric. Production is about 4 weeks Shipping is about 4 weeks. Shipping fabric to china takes 10 days. Getting fabric can be anywhere from 3 days to 16 weeks.

Couture de Light Frames are heavy gauge aluminum with reinforcement under the seat and stack bars where design appropriate. Double umbrella glides Molded foam seats with 2.8 density foam Powder coat frames only Action back mechanism is made from the same fiberglass as a helicopter prop.

Couture de Light Key Competitors MTS Global Allies Bertolini MityLite

Comfort de Luxe Often more comfy, cozy than a traditional banquet chair Some models look more like dining chairs Will not stack as dense as banquet chair making storage a challenge Welded and ground joints Key competitors: Global Allies Gasser, MityLite

The Original Collection 18 gauge steel frames Welded both sides on all joints 14-16 stack bumpers to protect the finish 2.3 cut or 2.8 molded foam depending on if it is Premier or Elite model. Premier has molded foam Elite has molded foam and action back

The Original Collection

The Original Collection Competitors MTS MityLite Bertolini Senova Prince Daniel Paul Chair

Tufgrain Stack Chairs Aluminum/Steel Baked on wood grain in 4 finishes: Walnut, Oak, Beech, Cherry Best solution for look of wood Senior living and casino markets Competition: Duracare Sandler

Wood Stackers

Wood Stack chairs Pros Look great at first. If plywood they may be better as often there are metal to metal fasteners Cons Most not built for everyday use. Dragging tears them up bad When they get loose they can be dangerous. They will chip and nick Very few are designed for maintenance.

COMPETITON 2017 Shelby Williams

Competition - pricing 200 High / Low / Zone Pricing 180 160 140 120 100 80 60 SHELBY WILLIAMS MTS Gasser Global Allies Bertolini Daniel Paul MityLight Senova Low Zone High Low High Zone

Competition market share COMPETITORS - MARKET SHARE Senova 4% Global Allies 9% MityLite 13% MTS 38% Daniel Paul 6% Gasser 16% Bertolini 14%

Competition MTS Wide range styles and price points Can bottom out on price for budget jobs Aluminum and steel frames: Metal has a wider range of options and aggressive prices. Aluminum Salvo, Zevo Steel Omega, Sigma, Elan Seat suspension: ComfortWeb and plywood Warranty 12 year structural Have high style models that are attention getters Catalyst, Piper, Kay Lang

Competition MTS

Competition MTS vs. 8214 Why is th MTS chair $12 cheaper than our 8214?

Competition MTS vs. 8214 MTS Shelby Williams * Cheap wire ganger * Steel RGM * Web seat cheap foam * High density molded foam * NO seat stabilizer bars * Front and rear bars * NO stacking bars * Stacking bars

Competition MTS Original Collection: * Lifetime frame warranty * Front and back frame stabilizing bars to prevent racking * 12 seat to leg weld points for added strength * Plywood seat board, with threaded T-Nut fasteners * 2.3 lb density high quality foam * Concealed back tabs Omega Series: * 12 year frame warranty * Back only frame stabilizing bar * 8 seat to leg weld points for added strength * Particle board seat board with lower quality foam, with threaded T-Nut fasteners. * Also offer a combination of web seat and cheaper foam which wears out and creates a hollow feel. * Lower quality density foam * Have both exposed and concealed back tabs (up-charge for concealed tabs)

Competition Bertolini Steel frames only Tend to be heavy. Waterfall front seats Stack 8 and 6 high Polymer seat foam 20 year structural / 10 yr components Able to hit low price points with cheap models

Competition Gasser Primarily a formal style only Aluminum legs, one steel KL thin version 2 & 4 seat foam Multiple handle and vinyl edge options 10 year warranty Largest market segment is casino gaming

Competition MityLite Diverse product offering Primarily aluminum, with steel options 12 year warranty 1,000 lb capacity 2.5 foam seats, use a waterfall edge to promote comfort Make folding tables and dance floors.

Competition Global Allies Primarily a task chair company All aluminum frames 10 year warranty Stack 8-high Prices tend to be higher, fewer bids On Hilton stack chair program 100% off shore production

Competition Daniel Paul Considered a lower-end brand Fairly limited offering of basic designs Primarily steel frames, some aluminum Use all molded foam 10 year warranty Also sell wood seating for restaurants

Competition Senova Variety of frames styles not unique All aluminum frames 12 year warranty Back only stabilizer bar Market to Country Club, restaurant, and senior living markets as well 100% off shore production They have less than 10 employees

QUESTIONS.? 2017 Shelby Williams