KAIZEN PROFITSystsms Program a resounding success!

Furniture World Magazine

The last of 3 advanced KAIZEN meetings in 1997 concluded December 9th in Breckenridge, CO with over half of the participating retailers enjoying 10% operating profit margins, according to Rick Stark, CFO of PROFITsystems, Inc., director of the program. The KAIZEN program, now in its fifth year, was modeled after the "20-group" concept in the automobile dealership industry. Non-competitive retailers get together several times each year to share ideas, problems, and opportunities. The success of the program is measured by improvement in bottom-line profitability, with a goal of at least 10% operating profit to sales ratio. More than half of the attendees were able to accomplish this goal in 1997, with half of the remaining participants achieving at least 5% bottom-line profit. The KAIZEN concept (from the Japanese words "Kai" and "Zen" meaning "good change") has become very widely accepted worldwide in the last few years. It's premise is that change comes about slowly, not in quantum leaps, and that superior results in any industry come about as a result of working on all aspects of the business, looking for continuing small improvements. Retailers involved in the KAIZEN program this year have continuously refined their operations to improve their margins and turn rates, trim expenses, and implement other efficiencies to maximize profitability. Thirteen retail operations were represented by 20 attendees, including Saks Furniture, Niagara Falls, Ontario; Circle Furniture, Boston, MA; Michael's Furniture Galleries, Lafayette, IN; Rod Kush Furniture, Omaha, NE; House of Denmark, Atlanta, GA; Parlin Furniture, Battle Creek, Ml; Bear's Town & Country, Franklin, PA; Dane Design, Wichita, KS; Karen's Furniture, Quakertown, PA; Rock Bottom World of Furniture, Stockton, CA; Main Street Furniture, Jacksonville, AR; Benfatti Furniture, Pueblo, CO; and Wood & Kidder Furniture, Burlington, VT. PROFITsystems will continue the advanced program next year for these stores, and in addition, will have a separate group of 20 retailers starting out in the program for the first time. Retailers interested in learning more about the program can contact Rick Stark at 800-888-5565 in Colorado Springs. For more information on PROFITsystems, e-mail them at: jeff@profitsystems.net