2. Presented By: Randy Lavercombe Ashley FurnitureLeatherLeather Nature’s Fabric

3. The Ashley Leather Story The Ashley Leather Story

4. Why Train? “For lack of training, they lacked Knowledge. For lack of Knowledge, they lacked Confidence. For lack of Confidence, they lacked Victory.” - Julius Caesar

5. The Leather Spell BASIC Needs: something to sit on. SECURITY Needs: ease of cleaning & low design risk Value-Price. SOCIAL Needs: to create a warm, comfortable environment for friends and family. EGO Needs: to impress others. Self Actualization-Need the ultimate in comfort, elegance and tasteful design.

6. Why People Want Leather? u Leather is a natural product, not man-made u It’s inherent attributes affect both our senses and emotions - a total aesthetic experience u It’s the strongest fabric and most workable natural material known to man u Leather provides more Prestige, Durability, Eye Appeal and Feel than any other material of its type! u Leather NEVER goes out of style

7. Everyone Has Experienced It! u Shoes u Hand bags u Wallets u Travel gear u Clothes u Furniture u Car Seats u Gloves u Baseballs u Belts u Bindings u Bridals u Harnesses u Saddles And Much, Much More...

9. Selling Process ZRomance ZValue ZComfort ZDurability ZVersatility ZChoice ZCare ZQuality ZRomance ZValue ZComfort ZDurability ZVersatility ZChoice ZCare ZQuality

10. The History of Leather A Valued Commodity from the Beginning ROMANCE THE STORY

11. History shows……………. u Leather making, not farming, is the world’s oldest trade (600,000 years) u First used for warmth - clothing, doors, floor/wall coverings & tents u Second use was animal control - Bridles & Reins u Also used for carrying water, shields, slingshots, & footwear u Records show that fine leather was as richly prized by royalty as gold, silver, ivory & gems. Long heritage u Every village had a tanner

12. History shows……………. u The basic steps in the tanning process have not changed over the years u First the hair and fat must be removed from the hide u Then the natural oils and fluids must be removed and replaced so the hide will remain flexible and not decompose over time u Lastly the hide must be stabilized and finished to the look and softness desired Beaming Room - The First Steps in Tanning

13. History shows……………. Early Drying & Finishing Room u For centuries the animal’s brain, liver and kidneys were used as tanning agents u The original process of repeated soaking and scraping took 1 year u In Middle-Age Europe, tree bark was used - the tannins (tannic acid) were easier to work with & shortened process to six months Hence the term “Tanning” u In 1890, use of Chromium salts shortened the tanning process from many months to mere days

14. The Art of Leather Processing Today

15. Hides.. The Raw Material u The most important factor in determining the quality & final cost of a leather is the Basic Raw Material - the Hide. Supply & Demand u The vast majority of hides used to make upholstery leather are Cow or Steer hides, because of their size. u Some companies use pig hides and Water Buffalo. They are heavily corrected and by many not even considered in the leather family. u Only one-third of the hides produced worldwide are suitable for upholstery, the others are too flawed. u Domestic and European hides tend to be bigger and are usually best suited for the better leather tannages. u The lesser the “quality” of the hide, the more that must be done to make it usable in upholstery. This causes stiffness and heavy correction

16. Hides.. The Raw Material u South America is the largest supplier of leather in the world. u Brazil has the largest standing herds 3 to 500,000 open range. Argentinean hides better. Smaller herds!! u Domestic and European hides tend to be bigger and are usually best suited for the better leather tannages. u The lesser the “quality” of the hide, the more that must be done to make it usable in upholstery.

17. Hides.. Facts u Leather High Value Word u There are no leather POLICE. u Don’t get sold down. Leather purse takes 3 feet of leather and costs $100-$500. u An ottoman takes 30 feet of leather u A sectional takes 12-14 hides (hide is 45 sq ft to the hide). Romance-Talk up the story!!! u Figure it out! How do the other guys make so inexpensive leather furniture.

18. Leather Upholstery Hides Anline Premium Select - 5% Full Grain-Semi-Aniline -10% Embossed, Pigment & Top Coated - 20% Used for clothing, shoes belts,industrial and automotive - since these products can be made of smaller pieces. Upholstery patterns use large pieces for cushions, backs, etc. - 65% % of Total Hides Available Approx. Total Top Grain Hides

19. Basic Steps to Making Leather u Tanning - Hair & Natural Oils/Fluids Are Removed from the Hide u Dyeing & Fatliquoring - Coloring and Preservation of Hide Takes Place u Correcting - Removal/Masking of Flaws on Hide Surface (Scars, Bites, etc.) u Finishing - Final Coloring, Special Effects and/or Protection Are Applied u Milling - The Final Softening of Hides

20. Leather Tanning All Hides Are Equal u Tanning is the chemical process we described earlier, that takes place to preserve & stabilize the hide. u The Tanning process has changed little since 1890’s, but new equipment has made it more COST efficient. u After the hide has gone through this process which removes all hair and tissue, the hide is bluish in color (from the chromium salts), it’s now called a “WET BLUES”. u The hide is fairly stable, but still needs further steps to restore oils & flexibility, plus add stability. u Hides are now split, then sorted according to look & # of flaws, this determines the hides final “quality”.

21. Tanning In the beginning all hides are equal. During the tanning process, hides are placed in a rotating drum for UP TO 24 hrs. The hair is removed and the hides take on a bluish tone. After this step the hides are called “WET BLUES”.

22. Leather Dyeing & Fatliquoring u The hide is soaked in a solution of natural dye and other chemicals until the color has penetrated all the way through and the oils are restored. u Similar to a wood stain, dyes have no masking characteristics and allow for all of nature’s markings to show through - hides are now called “crusts”. u Although true “aniline” dyes are no longer used by anyone, this process is still referred to as “aniline dying” and the leathers as being “aniline dyed”. u The most premium hides would now go directly to milling (softening) & become “Pure Aniline” leather.

23. Dyeing & Fatliquoring The Hides rotate for approximately 8 hours

24. Leather Correcting u In order to be able to use more hides and get better yield in upholstery, many hides are “corrected”. u This means that hides with blemishes or poor grain are sanded or “buffed” to remove a minute layer of material and level the surface slightly. u They are later imprinted or embossed with an artificial grain to restore the look of leather. u Virtually all lower priced, Top Grain leathers are corrected and offer a great value to the consumer, even though they usually are not as supple as Full Top Grain leathers (uncorrected hides).

25. Correcting

26. Leather Finishing u First a thin, opaque base coat of pigment is applied as a primer for the top layer of color. u A final color coat is then applied to give the hide a more uniform appearance and cover flaws. (Pigmented) u A clear top coat of polyurethane is usually applied to most leathers. It provides a consistent luster level and also acts as a protective barrier between you and the actual hide. This final microscopic finish layer improves durability and makes cleaning a snap. u Hides finished this way are often referred to as “semi- aniline” or “Aniline-Plus” and are very popular today.

27. Finishing

28. Milling u The final step before leather hides are measured and shipped to the manufacturer. u It is a process in which the tanned hides are tumbled in rotating drums, using a combination of heat and moisture to soften the hand and/or enhance the grain. u The longer they are milled, the softer the leather - and the more costly. u The finest leathers may be milled for up to 12 –24 hours.

30. Understanding the Marks of Quality Leather

31. Markings are a product of nature and in no way affect the strength or wearability of the leather. In fact, these markings are indeed the unique characteristics which are your customer’s assurance of genuine leather!

34. Leather Markings & Color u Signs of natural beauty in leather include: healed scars, insect bites, stretch marks, fat wrinkles, tight pores, backbone impressions, brands and neck/belly wrinkles. Best leathers u Pure and Full Anilines, Nubucks and other “Naked Leathers” will show their natural markings the most, since they receive all their coloring from transparent dyes in the initial drum dying process and have no correction or opaque pigment layers applied in finishing.

35. Leather Markings & Color u Color will vary from hide to hide and even within the same hide. This is important to note, especially since it takes two or more hides to make a sofa or chair. u “Naked Leathers”, including Nubucks, Pure and Full Anilines, will vary the most. u Semi-Anilines and Aniline-Plus ® Leathers have very little color variation from hide to hide. This is due to the opaque pigment applied during the finishing process.

36. The Language of Leather

37. u Crust - Leather that has been tanned, dyed and dried, but not corrected, finished or milled. u Aniline Dying - The total immersion process that uses transparent, nontoxic dyes in large rotating drums to color leather throughout. u Corrected Grain - Leather on which the outer surface of the grain has been removed by light sanding/buffing and a new grain has been added. u Crocking - Transferring of a color or finish from leather to other materials by rubbing or abrasion. u Drum Dying - A dyeing process in which leather is immersed in dye and tumbled in a rotating drum, thus ensuring maximum dye penetration.

38. Glossary Terms

39. The Language of Leather u Fatliquoring - The process of replacing the oils that have been leached from the hide during the first phase of tanning. Today this is done during the initial, drum dying stage. u Embossing - Impressing a pattern onto the surface of the hide to create a motif or texture. A uniform pattern is created, usually to disguise natural defects or blemishes. Sometimes this is also done to created visually exciting designs (Crocodile). Most often this step recreates the look of the leather’s natural grain which has been removed by sanding or buffing. Embossing usually compresses the leather making it less supple.

41. The Language of Leather u Fat Wrinkle - Natural wrinkles in the leather grain that are a part of its unique beauty. Like other natural markings, these are only visible in top grain leathers. u Correcting - Processes that mask or remove surface defects. Performed before finishing steps - i.e. buffing, sanding, and embossing. u Finishing - Processes performed after the dyeing and correcting steps - such as waxing, hand rubbing, & the application of flame- proofing, waterproofing or stain repellent.

42. The Language of Leather u Pure Aniline - Leather that receives its color only from the drum dying process and is then milled - no correcting done or finishes applied. u Full Aniline - Leather receiving its color mainly from drum dying, but may also have a topical stain (hand rubbed with a transparent dye), wax, oil and/or a water repellent, applied during finishing. u Aniline Dying - The total immersion process that uses transparent, nontoxic dyes in large rotating drums to color leather throughout

43. The Language of Leather u Full Grain - A Top Grain leather that has been tanned, dyed and finished, but has not been sanded or embossed. Also referred to as “Full Top Grain”. u Split - the under portion of a hide that has been split into two or more layers. Splits may be finished and embossed to simulate a full top grain. However, they are not nearly as strong, stable or supple as the Top Grain. They are also much less expensive (about half the cost). Splits are not desirable on upholstered furniture, but are available from some promotional manufactures - they are sold as leather.

44. Top Grain Split Layers

45. The Language of Leather u Hand Antiqued - Also referred to as “Hand Rubbing”, is the process where skilled craftsmen hand rub a contrasting color onto the surface of the leather to accentuate the natural grain or embossing. u A true Sauvage (French for two-tone) treatment would be an example of a hand rubbed effect. u These looks can be reproduced by a roller printing process using a Kela machine. However the hand method is “the real thing” and looks it! u This is one of the most costly effects available.

47. The Language of Leather u Natural Grain - Leather whose grain has not been altered in any way, so the appearance of the natural grain is apparent - no sanding or embossing. u Milling - The last step, a process in which the tanned hides are tumbled in rotating drums, using a combination of heat and moisture to soften the hand or enhance the grain. The longer they are milled, the softer the leather - and the more costly.

48. The Language of Leather u Nubuck Aniline - A very select, top grain, aniline dyed hide, from which the top hair cell layer has been removed through buffing. This creates a “suede like” nap effect. u These leathers are a bit more absorbent than others, so the customer must be more discerning in their use. u Being a full aniline product (only getting their color from the drum dying process), Nubucks also are subject to some color variation from hide to hide. u The finest examples are hand buffed.

50. The Language of Leather u Patina - A surface luster that develops on all top grain leathers as they are used. These leathers grow more beautiful and softer with the passing of time. u Pull-Up (Pulled) - Leather that derives some of its color, visual effect and hand from waxes or oils added during the finishing process. u Top Coat - Transparent, synthetic resin applied to create a thin protective coating. It can also provide a high gloss, semi gloss or matte finish.

51. The Language of Leather u Pigmented - Leather whose surface is coated with pigment or an opaque solution to cover surface flaws and provide final coloration. These offer the most color consistency between hides and the most stain resistance. ® (Leather Match) u Leather-Finesse® (Leather Match) - The use of matching vinyl instead of leather on furniture areas that are less subject to body contact, typically the sides and back. u Hand - The sensory (touch/feel) quality of a leather’s texture after it has been tanned and finished. “Hand” is related to quality and price.

53. Leather Care How do I take care of my Investment?

54. Care & Cleaning of Leather Leather is a natural material and, when properly cared for, it will maintain its beauty and appearance for many years

55. General Care Tips for Leather Each leather type has its own care and cleaning specifications, but there are also some generalizations to maintain the beauty and comfort.

56. Always Offer Leather Protection See Your Store Manager for Details

57. Increase your Sales Sell Leather

58. Frequently asked questions Frequently asked questions u Is Leather hard to maintain ? u Is Leather expensive ? u Is Leather cold, hot and stiff ? u Will Leather look good with my Other Furnishings?

59. u Offer Leather to all customers u Explain the benefits of Leather u Leather is economical, outlast fabric 4 to 1 & no professional cleaning is necessary u Don’t pre-judge customers. Everyone enjoys the pride of owning leather u Invite your customer to sit and experience the benefits of leather u Leather is the best value on your floor u Pride of ownership, prestige, value, flexibility How do we sell more Leather

60. Ashley’s 4S’s Ratings Like all diamonds have the 4 C’s Leather has it’s 4 S’s u Cut u Color u Clarity u Carats DIAMONDS

61. Ashley Leather Product Knowing the 4S’s Rating

62. Ashley’s 4S’s Ratings u Softness u Surface Grain u Special Effect u Serviceability

63. Softness u Softness is the essential and defining characteristic of leather. The exquisite hand of a fine leather leaves an unmatched sensory impression. u The overall comfort level and cost of your leather is directly linked to the softness quotient.

64. Softness u 4 = Nature Soft Rarest and most expensive leathers u 3 = Techno Soft Suppleness created with technology u 2 = Flexi Soft Leathers enhanced through mechanical action u 1 = Firm Leathers boasting tremendous “value”

65. Surface Grain u Surface Grain mirrors the Softness category u The more intact the original Surface Grain is, the more natural and soft the leather is u Alteration of leather’s Surface Grain creates a specific relationship to the cost of the leather. u The cost is reduced in proportion to the amount of grain removed from it. This is because the hide can now have more defects and, since there are many more of this type of hides available, they are less expensive as a raw material.

66. Surface Grain u 4 = Full Grain or Full Top Grain Key word “Full” meaning 100% natural grain, typically expensive u 3 = Top Grain Originally a full grain which has been altered through light sanding, barely noticeable to the naked eye. u 2 = Corrected & Embossed Grain A top grain leather that has been thoroughly sanded and embossed w/a grain pattern u 1 = Split & Embossed Grain The second layer split from a full grain hide is heavily pigmented and embossed

67. Special Effect u Leather is often indexed into narrow categories when in fact, countless varieties are available because of special effects created by the tannery u The cost of Special Effect leather is in direct relation to the expertise, effort, and degree of difficulty required to create the various looks

68. Special Effect u 4 = Defined by more than two special effects such as hand rubbing, heavy texture, or metallic finishes u 3 =Active Effect Injection of oil or wax to create a color- burst when stretched during the upholstery process u 2 = Mechanical Effects Color or surface effects on leather created with automated techniques, ie: a printed Kela effect or reptile embossed look u 1 =Uniform Color A leather sprayed with a coating of pigmentation creating uniform color

69. Serviceability u It is important to match your customer’s lifestyle to the serviceability that is applicable for each tannage. u Leather is a versatile material that offers many distinct choices in this area. u They range from easy care leathers with high soil and wear resistance, to those more focused on fashion and style.

70. Serviceability u 4 =Minimal Resistance Expensive and luxurious typically a nubuck or suede u 3 = Natural Resistance the most expensive and elegant of all leathers, typically pure and naked will gain a patina over time u 2 = Standard Resistance Impervious to most spills and stains, best for residential requirements u 1 = Maximum Resistance Impervious to spills and stains, best for heavy- duty or commercial requirements

71. Using the 4S’s to Select Leather The 4S’s will help take out the guess work in leather shopping by giving you the right leather for your customers lifestyle

72. Meeting Each Customer’s Requirements is the Key to Service u Customers want the following: u Style u Value u Comfort u Quality u A Long Lasting, Durable Product u A“Brand Name”they trust for Performance u Pride of Ownership u Ashley Leather Delivers All of the Above!

73. Competitive Pricing La-Z-Boy’s leather merchandising allows customers to easily upgrade in Value and Comfort

74. La-Z-Boy Strengths u La-Z-Boy Product Quality u La-Z-Boy Product Selection u La-Z-Boy Color Selection u La-Z-Boy Competitive Pricing u La-Z-Boy Service u La-Z-Boy Brand Name & Reputation

75. Next Step In Selling Leather.... u Shop Your Competition Regularly u Know what your customers will be seeing and hearing in your area. u Be Familiar With Your Leather Program u Remember “Customers buy the sales person first!” u Offer Leather to All Your Customers u Don’t insult your customers by prejudging them - most people want leather and will pay for it! u Enjoy the rewards of more satisfied buyers then ever!

76. Thank you …. Randy Lavercombe