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Business
Model

House of Paint & Décor has a completely transparent operating structure and flat management design to ensure that all members are continuously aware of changes and developments within the company and to effect swift decision making. The company is structured as follows:

Legendary Retail Brands Ltd

All the House of Paint & Décor Trademarks and intellectual property is housed in Legendary Retail Brands which has three (3) directors. These positions are reviewed annually by means of a democratic voting process to ensure efficient and effective control of the business.

House of Paint & Décor (Pty) Ltd

House of Paint & Décor (Pty) Ltd is the operational company which is managed according to all the Rules and Regulations of Corporate Governance and is represented by the National Executive Committee (NEC) made up of three (3) Legendary Retail Brands Directors, elected members from the House of Paint & Décor store base and House of Paint & Décor Management. Monthly NEC Meetings take place to review the Financial Performance of the Business together with the alignment and implementation of the agreed strategic initiatives.

Members’ Marketing Fees

Based on the completion of a detailed Marketing Assessment for each and every individual members, the member contributes to his specific marketing requirements and to an overall marketing fund for high level House of Paint & Décor Brand initiatives. These costs and relative income are transparent and are reviewed on an ongoing basis and in the instance that possible savings may be achieved these savings are passed directly onto the member automatically. All member and supplier marketing income / rebates goes into direct expenditure on the House of Paint & Décor Brand therefore House of Paint & Décor Members pay no royalties and there are no other hidden costs.

The Competitive Edge

Due to House of Paint & Décor’s low cost operating model, the supplier rebate requirement for the administration of the House of Paint & Décor Support Centre is minimal which allows the suppliers to trade competitively with each and every House of Paint & Décor member.

Suppliers

All House of Paint & Décor’s Preferred Suppliers are specifically graded to ensure maximum support for the supplier whilst ensuring the member remains competitive and is able to offer their customers the correct assortment of products. The members’ throughput is analysed every month where opportunities are identified in order to continually improve supplier performance or loyalty which in turn has increased supplier loyalty to House of Paint & Décor.

House of Paint & Décor partners with their suppliers at a strategic level to ensure the supplier also sees benefit from the House o Paint Relationship in terms of increased support.

Advertising and Product

Forums

The marketing and product forums are facilitated by House of Paint & Décor Support Centre but are fully represented by members not only regionally but with sound product and marketing experience. This wealth of experience ensures effective supplier participation, product category detail and effective marketing initiatives.