TRAINING MANUAL

- 2 -

TABLE OF CONTENTS

Cariloha bamboo introduction 4 Soft 9 Cool 11 Clean 13 Green 15 FTD Display 18 Fill in the Gap 20 Reading the Customer 23 Hi-Lo Philo 24 Closing the Sale 26 Up-selling/Suggestion Selling 28 Features, Attributes & Benefits 30 Asking & Listening 31 Objections 34 Service & Experience 38 Promotions 40 Bamboo Tees 44 Women’s V-Neck & Scoop Neck Tee 47 Bamboo Polos 49 Bamboo Hats 51 Bamboo Bedding 52 Bamboo Towels & Hand Towels 54 Women’s Apparel 55 Men’s Apparel 58 Bamboo Belt 60 Employee Essentials 61

- 3 -

INTRODUCTION

- 4 -

CARILOHA & BAMBOO Cariloha is the Caribbean’s exclusive destination to discover Bamboo. Customers will be captivated and intrigued by this eco-friendly product line. Cariloha’s Bamboo offers customers a unique shopping experience – blending stylish, comfortable and practical clothing & merchandise with an environment friendly vibe. Bamboo is something we should all live with! What is Bamboo? Bamboo is largely considered a woody plant; however is really a true grass. It can be found in many parts of the world, but is primarily grown in East Asia and South East Asia – where it’s used from everything from a building material to a food source! As it relates to Cariloha’s Bamboo line, Sales Associates should remember the four key qualities essential to creating a sense of urgency in the customers’ minds regarding our Bamboo product line: Soft, Cool, Clean and Green. Bamboo means soft because when made into fabric it’s actually two times softer than cotton. Bamboo means cool because it’s two to three times cooler than cotton. Bamboo means clean because its natural qualities actually help to eliminate bacteria, specifically bacteria which lead to body odor – without the help of pesticides or chemical fertilizers. Finally, Bamboo means green because it’s one of the most sustainable resources in the world. Bamboo is Soft, Cool, Clean and Green. Why Bamboo? Our customers will be surprised to learn from you about the many different uses of Bamboo. You are the expert – you’re the tour guide. It’s up to you to educate them on the many features, attributes and benefits of our Bamboo products. The following facts about Bamboo should be shared with your customers – but not all at once! Helpful Hint: you will be able to influence how excited a customer gets…or doesn’t get when learning about Bamboo. Try changing the tone in your voice when going from point to point, be aware of what your body is saying to the customer – a slouching and relaxed posture conveys your lack of interest in what you’re saying, as opposed to an upright and animated posture (using hands, facial expressions, etc.) conveys your interest and excitement in what you’re sharing. Bamboo Facts – the actual plant

Bamboo is the strongest plant on earth – comparable to the strength of steel. In many East Asian and South East Asian countries bamboo is used as scaffolding!

Bamboo is the world’s most useful plant. More materials can be produced out of bamboo than any other plant known to man.

Bamboo possesses a natural antibacterial quality which fights, among other things, bad odor. This is done naturally without the use of pesticides or chemical fertilizers.

- 5 -

In its wood form, bamboo is as hard as oak!

Bamboo is the world’s most sustainable and renewable plant. It replenishes itself naturally – it can actually grow at a rate of up to 4 feet per day!

Consider this – If you were building a house that was 2,500 square feet you would need approximately 30,000 square feet of normal timber to complete the project. If you were to build the same size house from bamboo you would only need 2,500 square feet of raw bamboo to complete the job! Consequently, it would take approximately 30 years for the normal timber to replenish itself; in contrast, it would only take 3 years to replenish the bamboo used to build the house!

Bamboo Facts – as they relate to products

Those that have worn bamboo universally agree that it is the world’s most comfortable fabric, as soft as silk.

Bamboo is actually two times softer than cotton.

Because of its inherent antibacterial qualities, shirts made from bamboo actually help to fight body odor.

Clothes made from bamboo are generally three degrees cooler than clothes made from cotton.

Bamboo is dry – it naturally wicks away moisture from your body.

Bamboo clothes offer proven UV protection from the sun’s harmful rays.

Products made from bamboo are 100% biodegradable – saving our environment and giving back to our environment.

The Tour Guide Mentality As a Cariloha employee you should consider yourself a tour guide – especially when selling our unique Bamboo product line. Your job is to introduce customers to something completely new, take them on a “tour” of the in-store “Bamboo Forest”, and make sure they understand the benefits of purchasing Bamboo products. Give your customers an informative and energetic tour - just as you would take a friend on a tour of your old neighborhood, the house you grew up in or one of your favorite vacation spots. Helpful Hint: Greeting customers is an important part of the sales process. In your greeting you need to get two points across – a welcome to Cariloha and an introduction to Bamboo. Try something like: “Welcome to Cariloha featuring Bamboo – I’m (sales associate) and I’ll be your guide today.” How do we convert hard bamboo to soft bamboo? Harvest – this is where you talk about the natural replenishing power of bamboo. Talk about the fun facts above that have to do with bamboo’s ability to regenerate itself in

- 6 -

a short amount of time. Drive home the point that bamboo is the world’s fastest self-replenishing plant. Season – this is where you talk about the hard and strong physical qualities of bamboo. To illustrate this point take the two bamboo sticks attached to the display and hit them together. Allow your customers to do the same. Drive home the point that bamboo is a hard substance at one point during the process. Husk – this is where you talk about the beginning of the process of creating soft material out of an otherwise hard and tough substance. Use the sample of bamboo with the exposed husk to help your customers understand this point. These husky fibers are what will soon become one of the world’s softest fabrics. Separate – this is where you show your customers the process it takes to get the actual bamboo fibers they just barely touched to become thread. Spin – talk about how the importance of creating the perfect thread and how we have mastered this process! Cut & Sew – use the fabric sample attached to the display to illustrate the softness factor – this is how bamboo stacks up to cotton. Encourage your customers to feel the difference between the two fabrics for themselves! Explaining it Much of Cariloha’s bamboo clothing is labeled, “viscose from bamboo.” When customers ask what “viscose” is, formulate your response in the following way: Viscose is a fabric that is made from the pulp of bamboo, thus the labeling “viscose from bamboo.” When asked about the actual process of making our bamboo fibers, refer your customers to our unique bamboo process, Harvest, Season, Husk and Separate. This same treatment process - approved by the Global Organic Textile Standard (GOTS) is very similar to the way organic cotton, soap and paper is produced. 100% Quality Guarantee We are convinced of our Cariloha bamboo products’ quality – and durability. Although the product is soft to the touch and very lightweight, it’s still durable and lasts. All of Cariloha’s bamboo products have a 90-day satisfaction guarantee. If the customer is not satisfied with our products, for whatever reason, they can return it to corporate within 90 days for a full refund or exchange. Beyond that, all Cariloha products come with a 100% lifetime quality guarantee. This guarantee states that Cariloha will replace our bamboo products, no questions asked when quality (outside of the normal wear and tear) is at question. If a customer has a product that does not live up to the standards Cariloha has set for quality products, they can simply go to cariloha.com (found on the back of the tag) and find instructions as to how to return their product

- 7 -

for a replacement and/or a full refund. Cariloha will always take care of our valued customers. Helpful Hint You will be able to influence how excited a customer gets…or doesn’t get when learning about Cariloha bamboo. Try changing the tone in your voice when going from point to point, be aware of what your body is saying to the customer – a slouching and relaxed posture conveys your lack of interest in what you’re saying, as opposed to an upright and animated posture (using hands, facial expressions, etc.) conveys your interest and excitement in what you’re sharing. In Conclusion We strongly encourage you to review this Bamboo section to be able to explain clearly to your customers why Bamboo is such an incredible product. Your ability to effectively educate your customers about the Bamboo product line will create value in their minds, and, this will in turn instill a desire and an impulse to purchase. Suggestions for Study The purpose of the sales-training manual is to provide valuable instruction to employees, empower them through product knowledge and effective sales skills, and to help them achieve success not only as Cariloha employees but also in every other facet of life. This sales-training manual promotes team study and participation. We encourage you to follow the lesson schedule, providing an important sales training lesson each week. As you read and study the sales-training manual, take notes and ask questions. Participation is always the key to understanding and retaining information. Try to adhere to the following study guidelines:

Read the lesson for the upcoming week, and be prepared for conversation and participation during the store training meeting.

The manager might assign specific parts of the scheduled chapter of the sales training manual to individual employees. Employees should come to the store training meeting prepared to discuss their assignment.

The sales training manual is designed to be able to enhance the instructional side of your store training meeting while the rest of the meeting (goals, policies, procedures, etc.) will stay the same.

We are confident that if you study this sales training manual and participate in the

store training meetings as it is outlined, you will see an increase in sales and in personal development. Take advantage of this opportunity

and push yourself and others to succeed. Good luck!

- 8 -

SOFT, COOL, CLEAN & GREEN

- 9 -

SOFT Cariloha’s bamboo products are characterized by 4 unique qualities – Soft, Cool, Clean and Green. Understanding each of these qualities and how they relate to our products will help you understand how to effectively create that “urgency to buy” in your customers’ minds. In this video section we’re going to focus on “Soft.” There’s nothing quite like putting on a soft shirt – or wrapping yourself up in a soft blanket – drying off with a soft towel or jumping into soft sheets when going to bed…you don’t really appreciate those ordinary luxuries until you’ve experienced the other side… Cariloha’s bamboo clothing and fabric makes those luxurious occurrences more common. Your customers need to be educated on the softness factor of our products – here are a few helpful hints: Helpful Hints First and foremost – use the educational panels found in the store. These panels are there to HELP you with the sale. They are an awesome point of reference and a great way to kick off any sale conversation. These educational panels are strategically placed in your store to allow for an easy transition to specific products – and to help you remember key points. It’s important to use the educational panels that correspond specifically with the product you’re working with…for instance, use the “Soft” educational panel when working with towels, t-shirts or bed sheets – things that are soft… Here are some important facts and even one-liners to use when pushing the “Soft” factor…

1. Use touch to your advantage when selling the “soft” factor! Let customers feel how soft bamboo is – and how it compares to regular cotton. Let them touch the samples and feel the difference for themselves. Allowing customers to touch and feel the product is one of the most important things you can do when selling the product.

2. Bamboo is widely considered one of the world’s most comfortable materials 3. Bamboo is twice as soft as regular cotton

o Be cautious to downplay cotton too much as we do sell cotton blend products. Simply put, emphasize that although cotton is a very comfortable fabric, bamboo is even more comfortable and soft.

4. Bamboo is simply “Crazy Soft.” It doesn’t pill. Pilling occurs when small balls of fabric pull away from the material – making the garment look full of lint or loose fabric.

5. All of Cariloha’s bamboo tees are pre-shrunk. Garment shrinkage will be minimal.

- 10 -

6. Bamboo clothing is more wrinkle resistant than cotton. While cotton shirts and clothing require a hot iron to get those wrinkles out, bamboo clothing only requires minimal ironing at a lower temperature.

7. Bamboo clothing offers luxurious softness coupled with a flowing and gentle fit. Bamboo isn’t meant to be tight or restrictive. It’s body responsive in more ways than one.

8. Bamboo clothing and fabrics are also more economical when compared to other like fabrics like silk or cashmere. For example, silk sheets for a queen sized bed can range anywhere from $350-$600, depending on the type of silk and seams.

o A great line you can say when selling bamboo clothing and fabric products – based on the bamboo/silk comparison – is: “bamboo is softer than silk, at half the price!”

In Conclusion So, in conclusion the main points you’ll want to consider for the “soft” factor include: using the educational panels that correspond to what you’re selling, pushing that bamboo is twice as soft as regular cotton! Pushing that bamboo clothing offers luxurious softness at half the price of fabrics like silk or cashmere! Cariloha’s bamboo clothing and fabrics are not only soft…they’re crazy soft!

- 11 -

Cool Cariloha’s bamboo products are characterized by 4 unique qualities – Soft, Cool, Clean and Green. Understanding each of these qualities and how they relate to our products will help you understand how to effectively create that “urgency to buy” in your customers’ minds. In this video section we’re going to focus on “Cool.” The “cool” factor as it relates to Cariloha’s bamboo products actually has two meanings – cool, like, “dude, Cariloha’s products are cool,” and cool like, “dude, Cariloha’s products are cool – and keep me cool” It’s true! Thanks to the specific blends that go into our bamboo fabric, you’ll actually feel the difference between regular cotton and bamboo. Check out the following “cool” facts and helpful hints about our bamboo fabric: Helpful Hints First and foremost – use the educational panels found in the store. These panels are there to HELP you with the sale. They are an awesome point of reference and a great way to kick off any sale conversation. These educational panels are strategically placed in your store to allow for an easy transition to specific products – and to help you remember key points. It’s important to use the educational panels that correspond specifically with the product you’re working with…for instance, use the “Cool” educational panel when working with t-shirts, towels or bed sheets – things that are cool…

1. Our bamboo fabric is actually thermal regulating. If your body is hot, it will help it to cool down; conversely, if your body is cool or cold, it will help to warm your body up.

2. Our bamboo fabric is breathable - unlike hemp or synthetic fabrics. o This is an important point to discuss with your customers. A breathable

fabric will decrease their perspiration, decreasing the chance for body odor due to intense perspiration.

3. When we say cool we mean it! Our bamboo fabric is actually two to three degrees cooler than regular cotton.

4. One feature relating to the extreme coolness of our bamboo fabric is the fact that it’s quick drying. Once it gets wet it doesn’t stay that way for long! Again, a big point when selling.

5. Make sure you tell customers that our bamboo fabric wicks away moisture. Moisture-wicking is extremely important when it comes to keeping your body cool and comfortable. Moisture-wicking comes into play when the body perspires. The fabric absorbs very little water/moisture – and spreads it along the outside of the fabric – keeping you dry.

- 12 -

In Conclusion You’re now armed with some great selling points referring to the “cool” attributes of bamboo. Let’s wrap things up by reviewing the main points you’ll want to consider for the “cool” factor. Make sure you’re using the educational panels that correspond to what you’re selling; our bamboo fabric is thermal regulating – if your body is cool it will help you warm up, if your body is hot, it will help you cool down; our bamboo fabric is breathable unlike hemp or synthetic materials – extreme comfort! Push that bamboo fabric is two to three times cooler than regular cotton! And, last but not least make sure you talk about how quick drying our bamboo fabric is – and how it actually wicks moisture away from your body! So, if they want to be cool…make sure they’re wearing bamboo!

- 13 -

Clean Cariloha’s bamboo clothing and products are characterized by 4 unique qualities – Soft, Cool, Clean and Green. Understanding each of these qualities and how they relate to our products will help you understand how to effectively create that “urgency to buy” in your customers’ minds. In this video section we’re going to focus on “Clean.” Bamboo the plant is pretty amazing! Apart from the incredible facts found in the introduction to Cariloha, bamboo possesses natural anti-bacterial properties. These properties allow bamboo to be grown without the use of pesticides or herbicides! Insects and pests don’t bother the plant thanks to these anti-bacterial properties. Bamboo is a clean plant both in its natural properties and in the way it’s grown. Customers will love to hear about the clean properties of the bamboo plant as you guide them through the sales process. Helpful Hints Now let’s check out some helpful hints which will help you cover the “clean” factor… First and foremost – use the educational panels found in the store. These panels are there to HELP you with the sale. They are an awesome point of reference and a great way to kick off any sale conversation. These educational panels are strategically placed in your store to allow for an easy transition to specific products – and to help you remember key points. It’s important to use the educational panels that correspond specifically with the product you’re working with…for instance, use the “Clean” educational panel when working with towels or bed sheets – things that are clean…

1. As mentioned – bamboo is anti-bacterial, thanks to a substance called “bamboo kun.” It actually fights the bacteria that causes odor in its natural habitat.

2. Bamboo is also anti-fungal. Thanks to the microbial fighting qualities of natural bamboo, the bacteria and microbes which cause fungus to grow are stomped out – again, another amazing characteristic of the bamboo plant.

3. Bamboo is hypo-allergenic. Bamboo’s natural properties make it non-irritating to the skin by limiting the spread of pollens and dust. This makes it a pleasant alternative for anyone with allergies.

4. The bamboo plant also protects against harmful UVA & UVB rays! In Conclusion So, when it comes to the “clean” factor of bamboo remember to cover the following points as you’re selling to your customers! Remember to touch on how amazingly clean the bamboo plant is – how it’s grown without the use of pesticides and herbicides! The anti-bacterial nature of bamboo fights odor. Talk about how the

- 14 -

bamboo plant is naturally anti-fungal – thanks to its antimicrobial properties (antimicrobial meaning anti-bacterial). Assure customers of bamboo’s hypoallergenic properties – the plant is one of the safest plants in the world for those who have allergic reactions to nature. And finally, bamboo naturally protects against the sun’s harmful rays – UVA and UVB rays. No wonder bamboo is the world’s most useful plant!

- 15 -

Green Cariloha’s bamboo clothing and products are characterized by 4 unique qualities – Soft, Cool, Clean and Green. Understanding each of these qualities and how they relate to our products will help you understand how to effectively create that “urgency to buy” in your customers’ minds. In this video section we’re going to focus on “Green.” In today’s world being eco-friendly and aware of the environment is extremely important. Many businesses have focused a great deal of energy and resources into ensuring their environmental responsibility. Cariloha is no different. We put the utmost importance on not only being aware of our environment, but looking for ways we can help do our part to be eco-friendly. That’s where bamboo comes in. Green is one of the most intriguing characteristics of bamboo. It’s truly a miracle plant! Your customers will love hearing about how eco-friendly bamboo is; and they’ll relate to Cariloha’s efforts of being environmentally responsible. So, what does it mean to be “green?” Quite simply it means being conscious of the impact we’re leaving on the environment, and being educated about being environmentally friendly. Let’s check out some of the ways that bamboo typifies going “green” with these helpful hints… Helpful Hints First and foremost – use the educational panels found in the store. These panels are there to HELP you with the sale. They are an awesome point of reference and a great way to kick off any sale conversation. These educational panels are strategically placed in your store to allow for an easy transition to specific products – and to help you remember key points. It’s important to use the educational panels that correspond specifically with the product you’re working with…for instance, use the “Green” educational panel when talking about where bamboo comes from, how it’s grown and how eco-friendly the plant is!

1. Bamboo is the most sustainable and the most renewable resource on the planet! Certain species can grow up to 4 feet per day, depending on the location of the bamboo field and the soil.

2. Bamboo grows rapidly and can be harvested in 3-5 years. It is the fastest growing plant on earth.

3. Bamboo does not require the use of tractors, pesticides or fertilizers to grow! Its antibacterial, meaning that it naturally repels insects and pests (with its bamboo kun).

4. Bamboo doesn’t require replanting as its root network sprouts new shoots quickly.

5. Bamboo requires no irrigation – making it extremely eco-friendly in water conscious areas.

- 16 -

6. Bamboo is widely considered an eco-friendly replacement for silk. 7. Bamboo plantations are large factories for photosynthesis – reducing

greenhouse gasses. Bamboo absorbs 5X the amount of Carbon Monoxide and produces about 35% more oxygen than an equivalent stand of trees. As such, bamboo is a critical element in the balance of oxygen and carbon dioxide in the atmosphere.

8. Where does your bamboo come from? This is can be a two-step answer based on your customer. Your first response should go something like this: “All of our bamboo yarn is certified through a world-wide standard ensuring the highest quality bamboo and eco-friendly processes.”

o If asked for a geographical location, your second response should be that our certified bamboo fields are located Asia.

In Conclusion So, in review of everything “green” – make sure to bring into the sales equation the fact that Cariloha has “green” as one of its main focuses, that the company is dedicated to do what it can to be eco-friendly and environmentally aware… Talk about the “green” qualities of bamboo – how bamboo is the most sustainable and renewable resource on the planet; how bamboo is grown without the use of pollutant tractors, pesticides or other harmful chemicals; that bamboo requires no irrigation and doesn’t require replanting – allowing for long standing bamboo fields; finally, touch on how bamboo effects even the air we breathe – how it’s able to absorb carbon monoxide and produce more oxygen than an equivalent stand of trees! Show your customers why at the end of the day bamboo is the eco-friendly choice!

- 17 -

SALES SKILLS & TECHNIQUES

- 18 -

FEEL THE DIFFERENCE DISPLAY

By covering this position we ensure that all customers entering Cariloha receive an awesome welcome, a quick interactive demonstration encouraging them to “Feel the Difference,” and are directed to the Bamboo product with an urgency to buy. While all Cariloha employees are considered “tour guides” and should refer to themselves as such, each employee should have an opportunity to fulfill this store position during the day. Feel the Difference Display When fulfilling this position, the Cariloha employee should be at or within close proximity of the Feel the Difference (FTD) Display (within 5-7 seconds). The employee at the FTD Display is responsible for welcoming guests to Cariloha, giving a quick and effective demonstration where the customer feels the difference between various bamboo and cotton products, and then following up themselves or letting another Cariloha sales associate begin the sales process. Use the display during your tour – it will help to organize your presentation. Again, the goal is to greet each customer within 5 - 7 seconds of them entering your store. Once you’ve done this, your next goal is to demonstrate the product; this is when you move into your “demo” mode… Demo Mode There are three simple steps in your FTD Display “demo mode.” These steps are:

1. Do a sensory demonstration 2. Hi-Lo Philo

Let’s talk about all three steps… Sensory Demo The first and most important step in the FTD Display “demo mode” is doing a sensory demonstration. This is simply doing a demonstration of the bamboo product and making sure they touch or feel the product in order to create the physical attachment and sensory recognition that bamboo goes from being hard to soft, and the softness is…well, crazy soft! Make sure they feel both the bamboo and the cotton. Try to get them to feel the cotton products first, to create a baseline sense, and then finish with the soft feel of the bamboo. This is where you can use some great lines – stuff like, “you have to feel how soft this is,” and “you’re not going to believe how soft this is if I tell you, you have to try it for yourself,” and “are you ready to feel the most comfortable fabric you’ve ever felt?” Make sure at some point you use the phrase, “Feel the Difference,” as in, “Can you feel the difference between the cotton and the bamboo products?”

- 19 -

Hi-Lo Philo The last step in the FTD “demo mode” is employing the Hi-Lo Philo. As discussed in other training (Pedersen Worldwide Sales Training), the Hi-Lo Philo is demonstrating high ticket items first, then moving down to the lower ticket items. This is done in an effort to increase your ADPT. Once you’ve given your customers a “Sensory Demo,” introduce them to a specific product – one that has a high ticket value – like the sheets, towels, or blankets. If/when they decide to go with the high ticket item it will be much easier for you, and much more natural for your customer, to purchase other products down the line. Helpful Hints

1. As a Tour Guide your responsibility is to ensure all guests visiting Cariloha receive a welcome and a demonstration at the FTD Display. Make sure at least one employee is within 5-7 seconds from the FTD Display and the entrance to your store.

2. When you greet guests, make it fun as you break into your Demo Mode – tell them that if they “Feel the Difference,” they’ll receive a free promotional item! (the bamboo lei) It’s a great ice-breaker!

3. Your demonstration doesn’t need to last long (and it shouldn’t!). The ideal demonstration should be less than 20 seconds. To get you started, try this out:

a. Hi! Welcome to Cariloha where everything is made out of bamboo! Let me show you what makes bamboo so special (using the bamboo & cotton cloth). First, feel the cotton – now, feel the bamboo. Can you feel the difference? Take a look around the store – be sure to feel the sheets and towels and how amazingly soft they are. My name is _________, if you have any questions just let me or any other sales associate know – enjoy!

4. The ideal situation is for an employee to be able to stay as close to the front of the store – and the FTD Display as possible all day – however on a busy day sometimes that’s difficult. We want to be able to maximize sales every day with every customer, and many times this may mean the FTD Display will be serving double duty – as a display unit and a sales associate. The ideal way to handle this scenario is illustrated below:

a. You’re working with a customer when a new guest(s) walk into the store

b. Say something like, “Can you please excuse me for a minute? – I need to go greet these guests. I’ll be right back.” Go to greet the guests coming in – give them a welcome and a demo – then return to the customers you were helping.

5. Jump into the Hi-Lo Philo straight after giving the customer a great sensory demonstration!

6. Multi-task! As a FTD guide you’ll need to be able to perfect the art of multi-tasking, doing more than one thing at a time. You’ll need to help customers as well as be aware of the new customers entering the store.

- 20 -

7. Body language – you say a lot to the customer by the way you approach them and greet them – without saying any words at all. Greet them with enthusiasm! Smile – stand up straight and be confident. You’re in charge. Look your customers in the eye and be attentive!

Be sure to use the FTD Display. It’s designed with you, the sales associate in mind. One of its main purposes in design is to assist with the sale. The display is there to help you meet, greet, and eventually sell to your customers. Practice Makes Perfect Take time in your store training meeting to practice using the FTD Display. Use the following role play scenarios to get you started:

Practice getting your introduction and demonstration down to 20 seconds or less. Be precise with your wording and make sure you get the point across.

Practice statement greetings as opposed to question greetings in your approach at the FTD Display:

o Statement EX: “Welcome to Cariloha where everything in our store is made from bamboo – let me give you a quick demonstration.”

Practice a scenario when you’re working with a customer and new guests enter the store. What do you do? What do you say?

o It’s in the way you excuse yourself from your customers that will allow you to come back and work with them. Be polite, smile, and help them feel that although you have another responsibility, they are still a priority.

In Conclusion So, in review – we talked about the importance of greeting each customer who comes into the store – and doing so with the right attitude, urgency and frame of mind. We talked about making it a goal to address each customer within 5 - 7 seconds of them coming into your Cariloha store. We talked about the 2 steps when you get into Demo Mode while at the FTD Display: A Sensory Demonstration and the Hi-Lo Philo. We then went over the importance of using the FTD Display – it will help you to keep everything straight and organized in your mind regarding your approach. Good luck!

SALES FLOOR STRATEGY – “FILL IN THE GAP” Being coordinated and organized in your sales approach leads to effective customer service and a great shopping experience for your customers. It’s important to know features, attributes and benefits of Cariloha’s bamboo products, however without a strategy in place of how to share those FABs with your customers you won’t get much accomplished. Cariloha’s sales floor strategy is best described as a “fill in the gap” approach. We feel this is the most effective way to organize your sales efforts on the sales floor – here’s why…

- 21 -

Fill In The Gap This sales floor strategy is one that will allow you as a sales associate to be able to help customers not only in different sections in your Cariloha store, but will allow you to stay with and work with clients who require more assistance. Unlike sales strategies where sales associates are “confined” to a specific section or zone, a fill in the gap strategy allows the sales associate to “float” in order to help customers no matter where they’re located in the store. Sales associates are encouraged to be mindful and observant of where their fellow sales associates are helping customers on the floor. Look for the “gaps” on the sales floor. “Gaps” is referring to where customers are browsing on the sales floor where there is no Cariloha sales associate presence. When you see a gap, go fill it. Go to that area and help those customers. Look for where your fellow sales associates are not, and go to that space. Float, and fill in the gap. Multi-tasking With the implementation of the Fill in the Gap strategy you will find more and more that you will need to perfect your ability to multi-task. You’ll need to help customers in one area, then – when you see a gap not being filled – you’ll need to leave the customers you’re working with (give them space for a minute, let them shop) and go to fill in the gap. Many times you’ll find yourself working with more than one customer at a time. Just like a waiter in a restaurant works with a number of different tables, all at the same time, you’ll be doing the same thing – you’ll just be selling bamboo products instead of refilling drinks and telling customers about the soup de jour! It’s important that you multi-task and that you do so in an organized, efficient and polite manner. It’s your job to make sure each guest feels like they’re the only guest. Helpful Hints

1. It’s great to create a rapport with your customers – that sales relationship will go a long way when selling high ticket transactions. Remember, you’re guiding the customer through the sales process – you help determine when customers need more or less of your assistance. Do this by reading their body language – focusing on verbal and non-verbal signs.

2. When you need to fill in the gap and you’re working with a customer make the transition comfortable and normal. Try using their name when transitioning from them to another client you’re working with – explain what you’re doing and that you’ll be returning quickly, for example:

o “Mr. Jones, if you’ll excuse me for one moment please – I need to hurry and greet these customers – I’ll be right back…”

3. Use your good judgment when breaking away from customers. If you sense that breaking away at a given time would either anger or frustrate your customer – or that you would lose a sale by doing so – stay with them until you receive the sign (verbal or non-verbal) that they’re ready to close the sale.

- 22 -

4. Stay on your toes! Keep names, sales situations and other information about each customer straight!

5. When selling Cariloha products make sure you use the guarantee as a sales tool. By doing this you create legitimacy and security in your customers’ minds. They feel they can trust what they’re purchasing and they feel secure knowing that we stand behind all products.

o Cariloha’s “90 Day 100% Quality Guarantee” states that if you’re not 100% satisfied with the softness or durability of our bamboo products you can send them back to Cariloha – using Cariloha.com – for a full refund.

o EX: “Mr. Jones, one of the best things about all of our Cariloha products is our “90 Day 100% Quality Guarantee” which states that if for any reason you’re not 100% satisfied with the softness or durability of our products you can simply return them for a full refund.”

6. Use the educational panels in the store whenever possible. Guide the customer to the nearest educational panel (if they haven’t already begun the purchasing process) to explain and demonstrate our bamboo products. Make sure you’re well versed in product knowledge so you can answer any questions your customers may have.

Practice Makes Perfect Take time in your store training meeting to discuss and practice role-play scenarios using the “Fill In The Gap” sales floor strategy. Make sure you employ the sales training skills and techniques covered in this chapter when practicing the different sales scenarios.

Practice a scenario when you fill in the gap on the sales floor when there are customers in two different areas and you need to work with each of these customers.

Practice a scenario when you are working with a customer and you have to break away as you notice a gap isn’t being filled.

Practice a scenario when you can’t break away from a customer you’re working with, but you notice another Cariloha Sales Associate folding shirts in another section of the store – how do you get their attention and have them fill in the gap?

In Conclusion Okay, so in this video section we discussed Cariloha’s sales floor strategy – “fill in the gap.” We discussed what this means and the importance of multi-tasking. We also reviewed how we can politely and smoothly transition from working with a customer to filling the gap in another section and working with another customer. Organization is crucial when employing the fill in the gap sales floor strategy. Make sure you and your fellow sales associates create a game plan before the store opens!

- 23 -

Organization is crucial when employing the fill in the gap sales floor strategy. Make sure you and your fellow sales associates create a game plan before the store opens!

READING THE CUSTOMER Good sales associates have the ability, whether practiced or naturally inherent, to read other people and to adjust and adapt to their varying personalities. Selling is a complex activity. You have to deal with hundreds of different types of personalities on a daily basis and to find a way to satisfy each one. Consider the following way of thinking: As a sales associate you deal with each customer as a unique human being. Customers do not “check” their personalities or problems before they come into a store. They come in as the sum total of all of their past experiences. That experience could be the fight they just had with their parents, children or friends; the driver who cut them off in the parking lot; the other shopper who bumped them in the mall; and numerous other problems and irritations of the week, year or lifetime….Dealing with human beings is one of the most complex jobs on earth. Every customer is different, and even the same customer is different each time you see him or her. The complexities of trying to match a product with the needs of this very complex customer are a challenge indeed. It requires that you not only have an excellent understanding of your product, but that you also have a thorough understanding of your customer and his needs.1 Taking Notice Spend time evaluating your clientele and preparing your fellow sales associates with the skills necessary to read the customer. Reading the customer ranges from taking notice of their personal sense of style to engaging yourself in conversation and asking “find out” questions. If customers seem like they are in a hurry, they probably are and probably won’t be in the mood to participate in any store activities. They want to get in, find what they want, and get out – and that is fine. Other customers may have the afternoon to kill and will be in more of a disposition to enjoy a long Cariloha experience. Learn to read certain customers. For example, if a customer enters the store and blows right by the first employee and heads right to the watch display without making solid eye contact, you probably don’t want to try to get in their face with an aggressive sales pitch. Casually go over, ask them if they have seen what is so special about our products, and offer your assistance if they need it. Your customers will give you signs if they wish to participate or not in the Cariloha Experience. Signs that they may not want to participate would be:

1 Retail Selling Ain’t Brain Surgery; pgs. 2-3

- 24 -

No eye contact, one-word responses.

They ignore you.

Heavy sighing when you are helping them or when they are in line.

They are constantly checking their watch.

They don’t respond to your questions – they just keep on asking you questions.

Signs that they may want to participate and be helped would be:

Constant eye contact, smiles.

Arms unfolded, busy touching the product.

They initiate conversation. They answer your questions.

They ask you questions and await your response.

Find Out Questions These are questions that you ask the customer when you are beginning to establish the sales relationship with them. Ask these questions without letting the customer know why you are asking them. Use your sense of humor. Combine find-out questions with open-ended questions. You want to gather as much information about the customer as you can so that you can put yourself in the best position to sell them product. Here are a few examples of “find out questions”:

“Are you shopping for yourself today or someone else?”

“What do you do for a living?”

“What types of products most interest you?”

“Are you just starting out your shopping day, or are you on the way out?”

“Is there something that you are particularly interested in?”

Reading the customer is half the battle when it comes to retail selling and is one of the most important skills that a sales associate can perfect. If you can get along with every customer and know how to satisfy their needs, you will make long-lasting impacts not only on the customer but also on the sales associates who observe you.

HI-LO PHILO The Hi-Lo Philo is the main weapon in your arsenal of sales training skills to reach the highest possible average dollar per transaction or ADPT. The essence of the Hi-Lo Philo is to push and sell the most expensive products in the store first to the customers. If you start a sale at $75, your ADPT has just begun at $75. Everything that the customer purchases in addition to the $75 will just help to increase the ADPT. The goal is to up-

- 25 -

sell lower priced items instead of trying to add a high priced item when the sale in the customer’s mind is already finished. Show It Off The key to the Hi-Lo Philo is to exhibit the high-end products – put them everywhere. When possible, employees should wear these high-end products so the customer can see them on actual people and not just mannequins. Invite the customer to look around the store after you have tried to sell them the high-ticket item; don’t let them off the hook. Your job is to sell the customer on the high-ticket products, make sure they know that they won’t find anything like what you have anywhere else. Learn the features attributes and benefits of the high-ticket items and have confidence in their quality. Build confidence in yourself that you can sell the expensive items and that people want to buy them. It’s all in your approach. If you seem hesitant, or can’t give the customer solid reasons on why they should spend the money to purchase the product, your customer will sense it and will not buy. Start high and progressively go lower when selling. In stores that have implemented the Hi-Lo Philo, the ADPT has increased and has maintained itself at a consistently high level. No matter where you are and what your situation is in your store, the Hi-Lo Philo will work to increase your ADPT, guaranteed. Apply it Use this section as your practice session. Take turns implementing the Hi-Lo Philo in role-playing situations. Practice the following scenarios:

Customers enter the store and want to look around. They aren’t looking for anything in particular. Sell them some sheets, a towel set, or a bamboo polo. Start “Hi” end “low.”

Customers have already purchased watch and are headed to the cash register to complete the sale. Approach them and instill in them a desire to buy a lower ticket item. Start “Hi” end “low.”

A female customer is only interested in purchasing a bamboo belt. Implement the Hi-Lo Philo with her. Without being pushy, suggest a higher ticket item to her (like a hand bag) and instill in her a desire to purchase it. Start “Hi” end “low.”

For some of us, applying the Hi-Lo Philo may be difficult as it seems more difficult to sell customers high-ticket items. Remember that just because we as Sales Associates wouldn’t buy or haven’t purchased many high-ticket items doesn’t mean our customers feel the same way. Customers come from all types of backgrounds – those who can and will spend money on high-ticket Cariloha items often visit our stores. Don’t be afraid to employ the Hi-Lo Philo!

- 26 -

CLOSING THE SALE Like many other selling techniques, closing the sale is a process. It has a beginning and an end. If you follow the process and the natural ebb and flow of the sale, you will almost certainly close the sale without having to think about which technique to use and what would be most effective. James E. Dion outlines the following ideas and strategies in his book Retail Selling Ain’t Brain Surgery. Buying Signals Customers will give you a number of buying signals when they are ready to purchase a product. Buying signals are either verbal or non-verbal. An example of a verbal buying signal would be something like a customer saying, “This is the one, I’ll take it,” or “Can you imagine what so and so will say when she sees me with this?” Customers show non-verbal buying signals when they take product to the cash register or check their pocket or purse to make sure they have their method of payment ready. You have to be on the lookout continually for these sometimes-subtle buying signals. Types of Closes 1. The Either/Or Close This technique is an easier one to master. You assume that the customer is ready to purchase because you have observed a buying signal. Ask the customer the following types of questions:

“Will that be cash or charge?”

“Would you like me to put it in a bag or would you prefer to wear it right now?”

“Would you like the extra-large or the large?”

“Are you going to take this with you or would you like it delivered?” These closes work well because you are asking the customer questions that require positive answers. What do you do if the customer says, “Wait a minute; I’m not ready to buy just yet?” James Dion observes that the best response in this situation is to ask the customer “why.” When a customer has given you a buying signal and then questions something at the close you have to ask why. Dion insists that we ask the customer why it is that they aren’t ready to buy. The answer that the customer gives you will provide you with the necessary information to solve their doubts. Both the hidden objection and need for more information will help you make sure that you fully understand the customer’s needs and do not sell what is not needed. Don’t be frustrated by a failed close. It will help you make a good sale if you remember to ask why.

- 27 -

2. The Assume the Sale Close Begin by escorting the customer to the cash register as if to ring up the sale. Use this technique when the customer has given a clear verbal or non-verbal buying signal. Just start walking to the register with the product and the customer will follow. You can add the “either/or close” if you want to sell an additional item. 3. The Balance Sheet Close This technique is used when the customer doesn’t give a very clear buying signal, but you can tell that they are on the verge of saying yes. The essence of this close is simply restating the benefits of the product that match expressed customer needs. (List the assets of the product – why it’s so cool.) If there are any negative or small details the customer is concerned with, mention them also. This close is successful because the assets outweigh the liabilities or negative points. Use this technique on hesitant customers who are really considering all the facts. Don’t try this close unless you have carefully probed all the customer’s needs and matched the benefits of your product to those needs. CAUTION: if you have not fully developed a list of benefits, this close will not work. 4. The Last Chance Close Only use this close if it is true! In the “last chance” close, remind the customer of the possible lost opportunity if they don’t purchase the product now. Use this close if the customer will honestly miss the purchase opportunity. Here are some examples of the “last chance” close:

“This is the last one in stock, and we aren’t getting any more. I would hate for you to lose the chance to have it.”

“The sale or promotion ends today, and tomorrow it goes back to the regular price.”

“We may be getting more in, but we never know what colors or sizes are coming, and there may be a style change.”

“There was a customer in earlier who wanted this and said they might be back. Since we can’t put it on hold, she may come back in and buy it.”

Using the “last chance” close when it is true and appropriate, is not only an excellent strategy, it is great customer service. If you inform the customer of a time or quantity constraint, they will not be angry with you if they choose to wait and miss the buying opportunity. But remember; use this close only when there is truly just one chance for the customer.1

1 Retail Selling Ain’t Brain Surgery; pgs. 72-76

- 28 -

Remember Don’t talk yourselves out of a close. Know when to stop talking! Many sales associates lose sales because they miss buying signals and move to close the sale. Sometimes there is a temptation to continue talking to your customer, particularly if you’re enjoying the exchange. Nevertheless, once you have seen or heard a buying signal, your job is to close the sale! Your customer is telling you that they are ready, willing and able to buy. James Dion adds that the ideal distance during the close is two to three feet. This is the closest you will come to the customer. Don’t try to close a sale while you are standing far away…the customer expects you to be with them at this stage.

UP-SELLING/SUGGESTION SELLING The goal for all sales associates at Cariloha is to maximize every sale. By doing this, your ADPT will increase. After the customer has purchased any of the high-end items, the sale is still not complete. Your job is to be constantly aware of what the customer can add-on to the product that they have already committed to buy. Up-selling is an art and takes a little practice. Once you are comfortable with it there is no stopping you! You should always look to up-sell with every purchase. Whether you’re up-selling some candles to a customer or neckties you can always have the confidence that the product will impress the customer. Keys to Up-Selling

Pay attention to what customers purchase. Suggest items that will combine or coordinate with outfits they are buying or wearing. Explain that all our accessories are specially designed to combine with any Cariloha outfit. Suggest the sale.

Pay attention to the conversations you have with the customer. When they mention kids, friends, brothers or sisters, that’s your cue to suggest they buy the perfect gift for whoever is not with them. Come up with one-liners to help break the ice and to help the conversation take on less of a sales approach and more of an informative, sincere conversation. A few examples of one-liners for this situation would be:

o “You can’t go home with just one of these…imagine the family strife

that would be caused…it’s easier to share more than less.” o “Do you think that your brother/sister would like one of these as well?” o “Now that you’ve purchased something for someone else – you need to

get something for yourself. You deserve it!” o “You never know if you’ll be back – it might be easier to get it today.”

- 29 -

Strategically place up-selling items in various parts of the store. Expose the customer to these items through repetition. When they are getting ready to head to the cash register, ask them questions like:

o “Did you see the bamboo belts yet? They are very appealing – I think

you’d like them.” o “Before you check out, I have to show you a great little handbag you

might be interested in.” o “What else would you be taking with you today?”

Suggestion Selling Suggestion Sales, as outlined by James Dion, is suggesting additional items after the customer has purchased an item. This skill is different from the traditional up-selling techniques of pushing items on customers pre-purchase. Suggestion sales allow customers to choose the item, and the sales associate suggests other items that would complement the item that they purchased. The sales associate gives the customer a choice. It’s done in a soft-selling manner. The sales associate suggests to the customer an additional item as follows: Customer purchases a bamboo polo. The sales associate observes the purchase. Sales Associate: That’s a great purchase…another item that really goes well with that bamboo polo is a herringbone hat. If you plan on doing any golfing in this polo, the hat would be a great addition! This approach is not pushy or improper. It’s customer service. The sales associate must understand how to suggest. Dion points out that we should never wait for the customer to come to us with the “if they wanted it they would have asked” attitude. The sales associate must suggest items. We should never think that the customer is finished shopping or doesn’t want anything else. “Let’s assume that a store had 100 customers in a day, all of whom would have spent an additional $10 if they were just asked. Based on the estimate of 100 customers a day, how much money went unspent that day? Answer: $1,000. When you take into account that the store is most likely open 360 days a year, how much money did that store potentially lose in lost opportunity? Answer: $360,000 Even if every customer would have spent only five dollars more, the additional business to that store would have totaled $180,000! Research now tells us for every

- 30 -

dollar spent in a store, the customer would have spent another dollar if asked or encouraged.”1 One of the key points to up-selling is getting to know your customer. Find out where they’re from. Find out who they are shopping for. Find out specific names and ages for who they are shopping for. You can even go as far as asking what their specific likes and dislikes are, always under the pretext of providing them with the perfect Cariloha gift. When you use names, likes and dislikes, you personalize the shopping experience for the customer – it’s always a great selling technique. Up-selling is maximizing each sale.

FEATURES, ATTRIBUTES & BENEFITS FEATURES are things about the product that we can see, touch, taste or hear. Features are what we observe about the product. Ex: the fabric a shirt is made out of. ATTRIBUTES are what the product features do. Ex: the fabric of the shirt makes it soft to the touch. It is lightweight or heavyweight. BENEFITS are taking the product’s features and attributes and explaining, not just what they do, but what they can do for the customer. Ex: The strong fabric of this shirt will make you feel like you are wearing two shirts instead of just one. “A benefit statement always evokes the customer’s enjoyment of gain from the product.” – James Dion. Applying this sales technique may take some practice. Here is an example of using features, attributes and then benefits when selling a Cariloha product: A woman walks into the store and begins to look around at the various products. She stops at the handbags display and begins to take interest. The sales associate approaches the woman and begins to read the customer by noticing mannerisms and by asking appropriate find-out questions. In this case, mannerisms would be anything from the woman pulling different handbags off the display to exploring the inside of the bag, to trying the bag out on her shoulder or arm. Apply it: Appropriate find-out questions, in this case, would be questions such as:

“Are you looking for a new handbag for you or for someone else?” Note: the question is an “either/or” question. This question is effective because it doesn’t require a “yes” or “no” response from the customer.

Judging from the customer’s response, you would then base your explanation of the different features of the handbag the customer is looking at. If the customer responds

1 Retail Selling Ain’t Brain Surgery; pg. 43

- 31 -

to your question that she is indeed looking for a handbag for herself, because she is looking for something to compliment her outfits, you would focus your energy to explain the following handbag features:

The handbag is perfect for any occasion because of its design and unique style.

The handbag is practical – it will be able to accommodate whatever she needs to put in it.

Attributes to explain would be that because the handbag is made with high-quality fibers and materials and every handbag has an element of bamboo, it will last a long time. A benefit statement would be to let the customer know that Cariloha’s hand bags are all unique – hand made, so they’re one of a kind. This benefit shows the customer, in a tangible way, what the handbag will do and how it will fulfill a specific need. A benefit statement would be something such as: “This handbag is the perfect accent to any outfit. Remember, it’s as unique as you are since it’s hand crafted! You’ll probably end up looking for outfits that go with your handbag!” When perfecting this sales skill, just remember the following simple steps:

1. Read the customer 2. Ask appropriate find out questions 3. Share features and attributes based on the customer’s response to your

find-out questions 4. Listen 5. Apply benefit statements where appropriate 6. Close the sale

By mastering this sales skill, you will spend less time trying to convince people that they should purchase a product that they have no interest in and more time selling items to customers who you have listened to and have pinpointed their interests and needs. You will be a more efficient and effective sales associate in your Cariloha store.

ASKING & LISTENING

Asking customers appropriate questions to find out for whom and what they are looking for is a sales skill that is greatly underrated. Success as a sales associate is tied closely to asking questions, listening to and internalizing what customers are saying, and then how it relates to the sale, ultimately fulfilling their need. Without listening to what the customer wants and needs, you will have a hard time closing sales on a consistent basis. What Are You Talking About? How many times has the following situation happened to you?

- 32 -

You are selling on the floor and a customer approaches you and asks you if you carry a certain style or type of shirt, possibly Tommy Bahama or another name brand. You answer the customer that unfortunately, you don’t carry those shirts and you give them a suggestion on a store that may carry them. Does this situation seem familiar? All too often we sell ourselves short by not asking appropriate questions that give us the opportunity to communicate with the customer. Many times customers speak in generalities – maybe the “Tommy Bahama” shirt was a style of shirt and not necessarily an actual Tommy Bahama shirt. Many times what we perceive to be specific because of the particular product that we are selling is oftentimes general when coming from customers. They know what they’re looking for, but they don’t know where to find it! That’s where you come in! Greeting the Customer When you’re selling, it’s easy to do what feels comfortable even though it may not be the most effective way of doing things. We do what we have seen others do in the same situation. One of the most common phrases that we hear on sales floors is, “may I help you?” Although used by the majority of sales people, it’s not an effective question or greeting. What are you really saying when you ask, “may I help you?” Imagine that you invite someone over for dinner. They arrive to your house, knock on your door, and the first thing you say to them on your front porch is, “What do you want to drink?” In most cases, your invitation to get someone a drink will be received more readily after they have come in, taken off their coats and made themselves comfortable.1 Think of this process when you meet and greet customers. Allow them some time to get comfortable and then find out their needs. After you greet the customer, allow them to look around and find a comfort level. Open-ended Questions Mastering the art of asking open-ended questions will ensure your success as a Cariloha sales associate. What is an open-ended question? It’s any question that cannot be answered with just a yes or a no. Your entire goal when asking questions is to get the customers to talk about themselves as much as possible. The more information you gather about your customer, the more you will fit specific products to them. Here are some open-ended question examples:

“Tell me a little about the person you are purchasing this for.”

“What do you plan on doing with this product?”

“What do you think about this kind of product?”

“What kind of occasion is this gift for?” Use the 10/90 rule when asking open-ended questions. Talk and ask effective questions about 10% of the time, and your customers should talk about what they

1 Retail Selling Ain’t Brain Surgery; pg. 22

- 33 -

need about 90% of the time. Again, your goal is to find out as much information about the customer as you can so that you can zero in on what their actual need is and what specific product will be a great fit for them. Listen! Did You Hear That? James Dion reminds us of the following fact: The average human can process about 950 words per minute. The average human can speak about 150 words per minute. What do you think happens when we are listening to someone who is talking at 150 words per minute and we have all that space left over? In most cases, we use this leftover space to think of other things – what we are going to say back to that person, what we are going to do that night, how we are going to find time to count all that stock that just came in, etc.1 Adding to those facts, the average person can listen to a 15-minute talk that is of great interest to them and 10 minutes after the talk remember about 10 percent of what was said. As a Cariloha sales associate, you need to develop an acute skill of paying attention to what the customer is saying – listen to them. Customers love it when they have your undivided attention. They want to feel like they are the only customers in the store. Maintain eye contact with them and call them by name. Internalize family member names and where they are from – incorporate those things during the sale. Apply it

Practice greeting customers. Make them feel welcome in your store.

Make a list of open-ended questions. Consult with other sales associates in your store and create the master list of open-ended questions. Practice these questions with each other and then run them past your customers.

Have one person in your group get up and talk about themselves for 10 minutes or so. Don’t take any notes on what they say – just try to remember what they are saying. Go around the room and take turns repeating back what the person was talking about. How do the details change from person to person? Practice repeating in your head what the person is saying.

Remember to ask find-out questions – you may have what the customer is looking for and just not know it! Be patient and ask the appropriate questions. Let the customer feel comfortable while shopping – go out of your way to make their shopping experience easy and worry-free. Practice asking open-ended questions and perfect your listening skills. Do these things and your value as a sales associate will increase dramatically.

1 Retail Selling Ain’t Brain Surgery; pg. 24-25

- 34 -

OBJECTIONS

How many times has it happened to you? You’re explaining a product to a customer when they say something like, “I just don’t think it’s what I’m looking for right now,” or “That’s just too much money, I can’t justify paying that much money for a leather wallet.” Ouch! Why doesn’t the customer just give you a paper cut and pour lemon juice in it? That’s the biggest fear associated with being a sales associate – dealing with customer objections and losing the sale because you couldn’t resolve their concern. In this sales phase, we can provide you with the necessary instruction so that when you come face to face with customer objections, you can confront them with ease. Coping With New Ideas A funny fact about people is that they embrace change and new ideas about as much as oil mixes with water. People always want to be the best in whatever they do. They want to be the ones who have all the answers, and people always want to know everything about everything. It’s inherently difficult for human beings to cope with change. It takes us out of our comfort zone and forces us to try something that we’re unaccustomed to. Human beings are creatures of habit in everything – especially when it comes to shopping. Sales associates should understand that just because a customer rejects a product initially doesn’t mean he doesn’t like it and won’t buy it. How many times have you been shopping, seen a product and disliked it only to come back an hour or a day later to purchase it? It happens all the time. Customers can and do change their minds – you can speed up the process. Handling Objections James Dion reminds us that some objections result from poor communication on the sales associate’s part and some are due to a lack of understanding or trust from the customer. Many sales are lost because sales associates fail to properly answer an objection. An objection is not a rejection of the sale by a customer – most often it is a cry for help, for more information, or simply for reassurance.1 Here are three crucial keys that Cariloha sales associates need to practice when it comes to customer objections.

Repeat the objection back to the customer. Do this for the following reasons: o You want to ensure that you really understand the objection. o You are telling the customer that you are concerned about their

feelings. Customers want sales associates to pay attention to their concerns.

o You give yourself time to identify the exact nature of the objection and form an appropriate response.2

1 Retail Selling Ain’t Brain Surgery; pg. 56 2 Retail Selling Ain’t Brain Surgery; pg. 59

- 35 -

Typical Types of Objections The three most typical types of customer objections are Skepticism, Confusion and Perceived Drawback. Consider these three types of customer objections in more depth as follows: Skepticism A skeptic objection is when a customer does not believe something you have said about the product or the performance of the product. The customer is basically saying that they don’t believe you. The customer may be basing this belief on an experience that they may have had with a similar product, or something that they heard from a friend, even possibly something that they read about the product. This customer won’t purchase anything until they believe that the product is different from what they now understand it to be. Here are a couple examples of objections due to skepticism:

“I don’t like this one. I had a shirt just like this and it shrunk.”

“This can’t be durable, it’s too thin.”

“This doesn’t feel like real leather.”

“There is no way that you can guarantee that it is handmade.” How should you deal with this type of an objection? (I knew you were going to ask that!)

1. Repeat the objection 2. Offer Proof: Provide the customer with proof to sway their opinion of the

product. Don’t invent proof – it must be true. The most effective proof is a personal testimony of the product – your response to the objection would go something like this: “So you’re concerned the shirt will shrink? Well, I have the same shirt, and I have put it in the dryer on many occasions and it has never shrunk!” Remember, you cannot make up proof.1

Confusion Confused objections means customers are not hearing what you said about the product or are misunderstanding something that you have said. Confusion is identified easily because it is based on a mistake the customer has made. Here are some examples:

“I thought this was 100% bamboo – this says it’s bamboo viscose.”

“I wanted something that I could iron constantly.”

“So this is real leather?” “I thought you said the bamboo lining was real but the leather wasn’t real…”

1 Retail Selling Ain’t Brain Surgery; pg. 58-59

- 36 -

The key to handling confusion is to clarify the misunderstanding by blaming yourself for poor communication. You are the one in charge of the sale so it is your fault if there is any confusion.

1. Repeat the objection 2. Take the blame 3. Clarify the miscommunication1

Perceived Drawback When a customer objects to something that is wrong with the product, the objection is based on perceived drawback. Customers are objecting to a real problem that they have with the product. It’s the most difficult objection to handle from customers – it causes the most lost sales.2 James Dion suggests the following way of thinking and course of action. Do we own anything that is perfect? Do you know anyone who is perfect? Isn’t there something about your best friend, your roommate, your brother or sister that if you could change you would? What about the way you look? The fact of the matter is that no one is perfect and no one has anything that is perfect. All of us have to accept the negative things in people or things and focus more on the positive. Most people tend to balance things out – take the good with the bad. We add up all the pros, list the cons, and see if things can work out. Human beings do this in every aspect of their lives and shopping is no exception. Your job as Cariloha sales associates is to help the customer decide if the pros of our product outweigh the cons. Help the customer make the decision if what they are objecting to is a small or large part of the product. Don’t let the customer not purchase the product if one small dislike overshadows various positive things.3 Let’s say that the customer objects to the price of a watch – it’s a perceived drawback by them. You might approach answering a perceived drawback objection like this: “So your concern is that the sheets cost too much money? I can definitely see how you would feel that way – I’m sure you don’t pay this much for sheets every day. I know that the sheets appear to be more that what you had planned on spending, but you did like the incredible softness of these sheets, you did like the color of the sheets – you said that your wife would absolutely love it, and you did like the free drop shipping promotion as well. I really think that when you look at all you’ll get from purchasing these sheets – the luxurious softness, the color, you friend’s reaction, the free drop shipping right to your door, it’s hard to find a reason not to buy it for the suggested price.”

1 Retail Selling Ain’t Brain Surgery; pg. 60

2 Retail Selling Ain’t Brain Surgery; pg. 61

3 Retail Selling Ain’t Brain Surgery; pg. 62

- 37 -

This is smooth! Notice the approach in answering this objection:

1. Repeat the objection or concern to clarify it to the customer. 2. Sympathize with the customer – show your ability to be on the level with

them. 3. Remind the customer of all the benefits that they liked about the product. 4. Summarize the benefits in an easy-to-understand statement. This summary

demonstrates to the customer that all the pros outweigh the cons. Apply it Practice in your sales training meetings overcoming the three types of objections. Challenge yourselves by being difficult customers. When the going gets tough, don’t resort back to what you always have done – push yourselves to follow the training guidelines outlined in this sales phase. It will be a little uncomfortable at first but stay with it and soon it will be second nature.

- 38 -

THE SERVICE AND THE EXPERIENCE

You have to have fun at work – or you’ll go crazy! The true Cariloha shopping experience is based around that philosophy – selling the service and experience to each customer. If we as sales associates aren’t making people smile, or making them happy – or helping them to feel comfortable – when they come into our store we’ve missed the point. Fun is something that doesn’t just appear out of nowhere – it’s something you bring from inside. Fun needs to be regenerated every day – in your own way. Selling the service and experience in Cariloha begins with you having fun at work, and passing that fun on to the customer. When selling the service to customers you should always remember the 10 Customer Service Essentials. These 10 essential items will serve as a checklist of sorts when you’re helping customers through the buying process:

1. Warmly greet and welcome every customer into the store. 2. Associates should always be friendly and smile. 3. When a customer asks for something, associates always take them directly to

the merchandise. 4. Train associates so they have the knowledge and ability to help customers

make an informed buying decision. 5. Focus the store’s policies, procedures, and systems on enhancing customer

experiences. 6. Make it easy to buy. 7. Willingly take back merchandise customers don’t like or want. 8. Quickly repair or replace broken merchandise. 9. Provide a pleasant shopping experience to every customer. 10. Thank customers for their business and invite them back.

Selling the experience is an essential part of our core sales philosophy. Our goal is to have customers remember their vacation not just because of where they went, but because they visited a Cariloha store. We want to them to get caught up in the moment – forgetting about their worries for a while. Disneyland does this so well – we get so caught up in enjoying the moment that we forget we’re spending so much money on expensive food, snacks, souvenirs and more! It’s all worth it! Have you been to a major sporting event or concert? How much did you pay for food? Was it more expensive than purchasing it at a local fast-food restaurant? I’m sure it was – but you did it because it was “part of the experience.” When you sell the experience you break down barriers. Smile at customers – be creative in the way you approach them and do your demonstrations. Customers want to be entertained – so give it to them! No matter what – YOU HAVE TO HAVE FUN AT WORK! No one wants to deal with a bitter employee. Customers can tell if you love

- 39 -

your job or if you hate your job – and I’ll bet you can guess which type of employee has more success. The Cariloha Way is selling the service and the experience – those are the most important things that Cariloha sells. In Conclusion So, in review - what is Cariloha? It’s fun loving! It’s happy! It’s care free – it’s the vibe you get when the fun-loving style of the Caribbean meets the friendly spirit of aloha. Involve your customers – get them saying “CARIL-OOOOO-HA!!” Create that fun loving vibe in your store. Sell the service and the experience and everything else will fall into place.

- 40 -

PROMOTIONS Promotions are a part of any retail shopping experience. You see it all the time – buy this, and get that for free; buy this and get any of these items 50% off; for a limited time sign up for this and get a discount, etc. Promotions are the carrot in front of the horse that makes it run! Promotions serve two main purposes: generate interest among the shopping public and increase sales. They also serve secondary purposes – perceived as benefits by customers – instilling even more of a desire to purchase by the customer. At Cariloha we have specific promotions designed to create interest and increase sales… Free Lei The first promotion we’ll discuss is the “free lei” promotion. This promotion is designed to not only generate interest – but it generates energy as well! The free lei promotion is simply, when customers come into your store with either verbal instructions (from a cruise ship port and shopping guide, or a hotel manager/concierge) or a coupon to yell out “CARIL-OOOOOO-HA!” as loud as they can, and they do so without any prompting by you – they receive a free lei! Pretty simple and easy. The customer can also receive a free lei by simply feeling the difference at our FTD Display. Free Drop Shipping The next promotion which Cariloha offers to our customers is our “Free Drop Shipping” promotion. To increase the amount of product sold and to offer that perceived service benefit, Cariloha offers customers the option to make in store purchases that will be shipped for FREE to a location of their choice within the Continental United States via UPS Ground. It’s interesting to note that when we introduced this promotion, sales for our towels and sheets increased by 300%! Many cruise ship passengers love our sheets, but don’t want the burden of carrying them around for the rest of their vacation. This is a huge convenience that has proven to be an extremely valuable up-sell feature. Cariloha is very often the only merchant that offers a drop shipping service in most ports of call! At this time, sheets and towels will be the only product allowed for this type of purchase. Great Service This is a great selling point to customers - they won’t have to worry about carrying heavy sheets and towels with them through the port, back to the ship, back to their hotel, and then to their home. Customers simply purchase their Cariloha sheets and towels in your store, provide shipping information, pay for the product and that product arrives to their door in most cases between 7 – 9 business days! This is how it all works – including what you need to do as sales associates to ensure everything is processed accurately…

- 41 -

SOP for Drop Shipping

Cashiers must verbally confirm the shipping information before closing the

transaction.

Cashiers need to communicate any issues or special needs the same day as the

transaction.

Customers can expect their product to arrive in 7-9 business days.

Account Managers will be finalizing orders each day before 11:00 a.m. MST.

This offer is only valid for customers shipping within the Continental U.S

o Continental U.S. does not include Puerto Rico, Alaska, or Hawaii.

Again, only sheets and towels will be drop shipped.

Now, let’s take a look at the actual steps you’ll need to follow in order to ring up and process a drop shipping transaction…

1. Select Customer

a. This is completed like normal.

2. Add Customer Product

a. The new “Drop Ship SKUs” provided below need to be entered into

POS for a drop ship transaction to be effective.

i. DO NOT ENTER THE NORMAL PRODUCT SKU.

b. Product for normal in-store purchase can be entered on this same

transaction.

i. Scan items like normal.

3. Enter Customer Shipping Information

a. Press Ctrl + F7: Ship To to bring up the Ship To Addresses box.

b. Click New.

c. Type the customer’s name into the Name box.

d. Type the street name and number in the Address box.

e. Type the City, State, and Zip.

f. Type the Telephone and Email.

Example: John Doe 5741 Fortuna Ave. San Diego, CA 96051 702-362-6528 pow2ride@yahoo.com

g. Click OK.

h. Click OK again.

- 42 -

4. Tender Customer Transaction

a. Verify customer name and shipping address.

b. Enter new sheet and towel Drop Ship SKUs.

5. Complete the rest of the transaction like normal.

Cross Promoting Cross promoting is one of the advantages for stores under the Pedersen Worldwide family of brands. Del Sol stores are able to promote Cariloha – and Cariloha is able to promote Del Sol. This is a unique advantage that we should always look to take advantage of. Increased foot traffic and sales in one store should mean the same for the other. We work hand in hand to promote each other and to increase sales!

At the end of the sales process make sure the customer knows about Del Sol. Explain the Wow Card promotion to the customer. Make sure the customer understands that two shirts and a tote bag are for Del Sol, not Cariloha.

o Show the customer the Wow Card to make sure there is no confusion regarding the promotion.

Look to display a rack of Del Sol Wow Cards at the register. Push them with every transaction.

As an employee of a Pedersen Worldwide brand, it’s a great idea to have knowledge of promotions going on at Del Sol. Stay up-to-date on the latest promotions.

When promoting Del Sol to your customers it’s a great idea to refer to specific employees by name. This adds familiarity and gives the customer confidence in who they’ll meet at Del Sol.

Where available and time permitting, help the customer locate Del Sol either with verbal instructions or using their ship map or city map.

In Conclusion In this training section we went over the following things: the free lei promotion, the free drop shipping promotion and how to cross promote with our other stores. Make sure you not only know about the promotions in Cariloha, but you understand them and you can easily transition to those promotions during your sale. Letting your customers know about our awesome promotions is great customer service and allows for a better shopping experience.

- 43 -

CARILOHA PRODUCTS

- 44 -

BAMBOO TEES

Cariloha offers customers a variety of bamboo shirts – in style, design and color. Customers can’t believe the difference! To feel is to believe! Selling Cariloha shirts is a practice in enlivening the senses – educating your customers on the features and attributes of bamboo clothing, and instilling a desire to purchase by sharing the benefits. Below you’ll find a list of features and attributes, and helpful hints on how to share the benefits with your customers.

All Cariloha bamboo tees come with a 90-day 100% guaranteed satisfaction for quality, durability and supreme SOFTNESS, or your money back.

5.4 oz. Shirt – 70% viscose from bamboo / 30% organic cotton.

Machine washable cold with like colors. Tumble dry low. o Encourage your customers to dry their bamboo tees on low to avoid

any further shrinking from the 30% organic cotton. Although Cariloha’s bamboo tees are preshrunk, there still may be minimal shrinking when dried at high heat.

o Avoid the use of fabric softener when washing Cariloha’s bamboo tees. Fabric softener tends to build up on the bamboo fibers and actually can make the bamboo fabric less soft.

Fabric is 3 degrees cooler than cotton and wicks moisture away from your body.

Sizing: o Men’s: S-2XL o Women’s: XS-2XL o Youth: YXS-YL

Available colors: o Men’s: White, Navy, Black, Brown, Caribbean Blue, Orange o Women’s: White, Black, Brown, Pink, Silver Grey o Youth: White, Black

Retail Price: o Men’s & Women’s: $34 o Youth: $24

Summary As a review – here are some helpful hints…

Bamboo t-shirts are CRAZY soft! Sell your customers on how soft and comfortable they are!

Bamboo shirts hold their color well. Push this as a benefit statement!

- 45 -

Customers LOVE the comfort and breathability of our Cariloha bamboo shirts – push this as a benefit statement to your customers.

Consider focusing on Cariloha’s bamboo shirts as a high quality souvenir.

The uniqueness of the product is a great selling point for our Cariloha bamboo shirts!

Use the website on the t-shirt’s tagless tag to re-emphasize the guarantee to your customers.

Use the guarantee in each sale as a selling point. Customers want to hear about how we’ll stand behind our products.

Cariloha offers customers a very unique and high quality product. Feel confident in the product you’re selling. When you show confidence in what you’re selling to customers they will pick up on that and will feel secure with their purchase.

Helpful Hints

*Some Cariloha shirts and polos offer viscose processing, which is an eco-friendly way to process the bamboo fibers. You may see tags on our shirts that say “100% polyester from bamboo.” This is actually a way for U.S. Customs to classify the bamboo made material as a textile. Bamboo isn’t an option right now as a fabric. From the beginning to the end of the clothing production process, bamboo goes through a similar process as polyester. This is why some of our shirts are tagged as such. This doesn’t mean our shirts are made of polyester, or aren’t made of bamboo, it’s simply a way to categorize our unique bamboo product.

Bamboo shirts hold their color well, polos especially. Push this as a benefit statement!

Customers LOVE the comfort and breathability of our Cariloha bamboo shirts – push this as a benefit statement to your customers.

Consider focusing on Cariloha’s bamboo shirts as a high quality souvenir.

The uniqueness of the product is a great selling point for our Cariloha bamboo shirts!

Use the website on the t-shirt’s tagless tag to re-emphasize the guarantee to your customers.

Use the guarantee in each sale as a selling point. Customers want to hear about how we’ll stand behind our products.

Practice Makes Perfect Take a few minutes to practice the following sales activities:

Practice a basic T-shirt sale. Share features and attributes and resolve all the concerns. After the role play, critique the sale and give other possible suggestions.

- 46 -

Practice a difficult T-shirt sale. The customer doesn’t want to pay $34 for a T-shirt. They have never spent that much money on a T-shirt. They say they can go down the street and purchase five T-shirts for $20! What is so great about a Cariloha Tee? Resolve any doubts and answer all questions. When the role play is finished give good feedback.

Practice a T-shirt sale as an up-sell to another item.

Practice a sale when you use the 90 Day 100% Guarantee to close the sale.

Cariloha offers customers a very unique and high quality product. Feel confident in the product you’re selling. When you show confidence in what you’re selling to customers they will pick up on that and will feel secure with their purchase.

- 47 -

WOMEN’S V-NECK & SCOOP NECK TEE Cariloha offers customers a variety of bamboo shirts, for women specifically – in style, design and color. Such is the case with the women’s V-neck and scoop neck tees. They are a little different than the traditional crew tees, let’s have a look…

100% guaranteed satisfaction for quality, durability and supreme SOFTNESS, or your money back.

5.4 oz. Shirt – 70% *Viscose from Bamboo / 30% Organic Cotton.

Machine washable cold with like colors. Tumble dry low. o Encourage your customers to dry their bamboo tees on low to avoid

any further shrinking from the 30% organic cotton. Although Cariloha’s bamboo tees are preshrunk, there still may be minimal shrinking when dried at high heat.

o Avoid the use of fabric softener when washing Cariloha’s bamboo tees. Fabric softener tends to build up on the bamboo fibers and actually can make the bamboo fabric less soft.

Fabric that’s 3 degrees cooler than cotton and wicks moisture away from your body.

Sizing: XS-2XL

Available colors: Green, Coral, Plum, Teal

Retail Price: $34 In Conclusion As a review – here are some helpful hints…

1. Bamboo t-shirts are CRAZY soft! Sell your customers on how soft and comfortable they are!

2. Bamboo shirts hold their color well. Push this as a benefit statement! 3. Customers LOVE the comfort and breathability of our Cariloha bamboo shirts –

push this as a benefit statement to your customers. 4. Consider focusing on Cariloha’s bamboo shirts as a high quality souvenir. 5. There are no name drop options or design options for these shirts. They do

have a small “Cariloha” icon but that’s it. Use the point that there is no name drop or design on the shirt to push it as a layering option. They can wear these shirts as compliments to outfits.

a. This is particularly appealing given the thermal regulating and moisture-wicking properties of our bamboo products.

6. Use the website on the t-shirt’s tag-less tag to re-emphasize the guarantee to your customers.

7. Use the guarantee in each sale as a selling point. Customers want to hear about how we’ll stand behind our products.

- 48 -

Cariloha offers customers a very unique and high quality product. Feel confident in the product you’re selling. When you show confidence in what you’re selling to customers they will pick up on that and will feel secure with their purchase

- 49 -

BAMBOO POLOS It’s always great to have options for your wardrobe – that’s one of the reasons why Cariloha offers a great variety of bamboo polos – for both men and women. These polos are a higher priced item. As such, you’ll need to be able to be knowledgeable about them and be able to fit each polo to your customer by using solid benefit statements…

All Cariloha bamboo men’s and women’s polos come with a 90-day 100% guaranteed satisfaction for quality, durability and supreme SOFTNESS, or your money back.

Cariloha offers the following bamboo polo options for men and women: o Men and women’s jacquard bamboo polo o Men’s original bamboo polo o Men’s adrift bamboo polo o Women’s pique bamboo polo o Women’s glenora bamboo polo

Let’s start with the men’s and women’s jacquard bamboo polo o This polo is made of 100% polyester from bamboo o It’s offered in sizes S-2XL for men, and XS-2XL for women o The color options for men are blue, red and green, while the color

options for women are dusty blue, red and green. o This polo has a relaxed collar and a classy button placket o Retail price - $55

Moving on to the men’s original polo o This polo is made of 100% polyester from bamboo o It’s available in sizes S-2XL o It comes in green, white and black o It’s a more generous cut with a structured collar o Retail price - $45

The Men’s adrift polo is next o This polo has a different fabric composition than the jacquard and

original polo – it has 57% Viscose from Bamboo/38% Organic Cotton/5% Spandex-Terry

This polo will feel more like cotton and has a stretch property because of the spandex-terry

o It’s available in sizes S-2XL o This polo comes in black, light blue and white o This polo will feel more like a traditional polo – a little heavier than the

jacquard and original polos o Retail price - $60

Now let’s look at the women’s pique bamboo polo o This polo is made of 100% polyester from bamboo

- 50 -

o It comes in sizes XS-2XL o It’s offered in white, green and black o This polo has a more generous cut for ladies o Retail price - $45

Last but not least – the women’s Glenora Polo o Like the men’s adrift polo, the glenora polo is made of 57% Viscose

from Bamboo/38% Organic Cotton/5% Spandex-Terry Again, this polo will feel more like cotton and will have a stretch

property thanks to the spandex-terry combination o The glenora polo is offered in sizes XS-2XL o It comes in light yellow, light blue and white o This polo is more of a form-fitting option for women o Retail price - $55 o Machine washable cold with like colors. Tumble dry low. o Encourage your customers to dry their bamboo polos on low to ensure

maximum softness and fabric performance. o Avoid the use of fabric softener when washing Cariloha’s bamboo

polos. Fabric softener tends to build up on the bamboo fibers and actually can make the bamboo fabric less soft.

Fabric is 3 degrees cooler than cotton and wicks moisture away from your body.

In Conclusion As a review – here are some helpful hints…

1. Bamboo polos are CRAZY soft! Sell your customers on how soft and comfortable they are!

2. Bamboo polos come in a variety of colors and fits – which one is best for you customer?

3. Customers LOVE the comfort and breathability of our Cariloha bamboo polos – push this as a benefit statement to your customers.

4. Remind your customers of the moisture wicking qualities of bamboo. This is very important as customers expect a higher priced item to perform well – whether they’re on the golf course or just going out to eat.

5. Our bamboo polos are thermal regulating – if their body is warm the polo will keep them cool, if their body is cold, the polo will help keep them warm!

6. Use the guarantee in each sale as a selling point. Customers want to hear about how we’ll stand behind our products.

Cariloha offers customers a very unique and high quality product. Feel confident in the product you’re selling. When you show confidence in what you’re selling to customers they will pick up on that and will feel secure with their purchase

- 51 -

BAMBOO HATS

Cariloha features a wide variety of quality caps – all made of ultra-soft bamboo. Each is designed with popular, classic designs and name dropped embroidery. With a variety of styles, colors, and embroidery designs available, there’s a hat for every Cariloha customer. Cariloha’s bamboo hats are made of either 60% Rayon from Bamboo/ 40% cotton twill (traditional hats) or 65% organic cotton/35% bamboo charcoal (herringbone collection) They boast either an adjustable Velcro closure, or buckle closure and a comfortable sweatband. They’re breathable, and they offer UV protection (important benefit for those who may be a little thin up top). Colors offered are: Indigo, Black, Pink and Sandstone, Golden Orange, Green, Cranberry, Navy, Natural, Ash and Sand. The price of our bamboo hats is $20 for the traditional hats, and $30 for the herringbone collection. Customize It! Customize the shopping experience for those customers looking for hats. Many people are very particular when it comes to what kind of hat they like to wear. Be sensitive to this. Ask open- ended questions to find out if the customer is looking for any specific type of fit or shape. Help customers feel comfortable as they try on our headwear, while making the buying decision. Use the features and attributes outlined in this training to help you fit the benefits to the customer. Check out the following helpful hints and role-play scenarios:

Push the fact that our bamboo hats offer UV protection. This is a great selling point as they not only block the sun with the visor, they protect the scalp from unwanted sun burns.

The Velcro and buckle closures are important features as they’re durable and can fit most heads. They’re washable and resistant to moisture.

Always touch on the 100% guarantee of our products. Help the customer feel secure while purchasing.

In Conclusion Remember to push the fact that our hats have the inherent UV protection quality from the bamboo! They’re the softest and most comfortable hat and they come in a wide variety of color options! Make sure to touch on the guarantee during your sale.

- 52 -

BAMBOO BEDDING Softer than silk – and at a fraction of the price! It’s true! Did you know that some silk and cashmere king and queen sheets can run as high as $600!! Bamboo sheets offer the same luxurious softness – and are thermal regulating and easier to maintain – at a fraction of the cost!! Cariloha’s bamboo bedding is made from 100% viscose from bamboo – that means they’re undeniably soft! This also means that our sheets are thermal regulating – super important when sleeping! These sheets will keep you cool when it’s hot and warm when it’s cool. Silk and cashmere simply don’t have those qualities. Our bamboo sheets have a very deep 18” pocket so as to fit all offered sized mattresses easily.

a. Colors offered are: blue, ivory, white, sage and tan – in all sizes (Cal King, King, Queen, Full and Twin).

b. Retail price for the Cal King size sheets is $160 c. Retail price for the King size sheets is $160 d. Retail price for the Queen size sheets is $140 e. Retail price for the Full sheets is $120 f. Retail price for the Twin sheets is $100

i. Standard pillowcases - $40 ii. King pillowcases - $45

Drop Shipping One great benefit to purchasing Cariloha’s bamboo bedding is our free drop shipping promotion. This goes above and beyond what most retailers would be willing to offer their customers. It’s selling the experience and the service. We offer customers the luxury of courtesy – by shipping their new sheets right to their door. Indeed an industry first. What else would you expect from Cariloha? So, as a helpful review…

LET THEM TOUCH IT!! Cariloha’s bamboo bedding is an affordable luxury. When selling our bedding focus on how great they feel – use the display when selling – let your customers touch and feel the softness and compare that to regular cotton sheets.

Make sure you touch on the thermal regulating qualities of our bamboo sheets. This is a specific feature that will perform for your customers. Also, make sure you cover the fact that our sheets have a deep 18” pocket which will fit any of the offered mattress sizes with ease.

Make sure you cover the free drop shipping promotion when selling these bamboo sheets. Cariloha will ship their brand new sheets to their door absolutely free within the Continental U.S. What’s better than fresh bamboo sheets waiting at their door when they come back from vacation?

- 53 -

Who likes product guarantees? Your customers do! Touch on the 90-day 100% Satisfaction guarantee.

- 54 -

BAMBOO TOWELS & HAND TOWELS I don’t care who you are – you have to appreciate a soft towel on your face or body – it’s just one of those daily luxuries that we should all be afforded. That’s what is so awesome about Cariloha’s bamboo towels – they’re crazy soft and well within any budget. What’s more – they’re durable, and they stay soft wash after wash! Cariloha’s bamboo towels are made from 100% bamboo – that means they’re soft and durable. They’re very absorbent and don’t pill. The bamboo qualities help the towels to dry quickly, helping to control odor. Cariloha offers 2 options for our bamboo towels – bamboo towel sets and bamboo bath towels. The bamboo towel set includes a wash cloth, a hand towel and a bath towel. The bamboo bath towel is just a single large bath towel.

Colors offered in the bamboo towel sets are: white, brown, taupe, blue and green.

They retail for $55

Colors offered in the bamboo bath towels are: white, blue, brown and black.

They retail for $30. One great benefit to purchasing Cariloha’s bamboo towels is our free drop shipping promotion. This goes above and beyond what most retailers would be willing to offer their customers. It’s selling the experience and the service. We offer customers the luxury of courtesy – by shipping their new towels right to their door. Indeed an industry first. What else would you expect from Cariloha? So, as a helpful review…

LET THEM TOUCH IT!! Cariloha’s bamboo towels are an affordable every day luxury. When selling these towels focus on how great they feel – use the display when selling – let your customers touch and feel the softness. Really sell the sensory aspects of the towels through great demonstrations.

Make sure you cover the free drop shipping promotion when selling these bamboo towels. Cariloha will ship their brand new towels to their door absolutely free within the Continental U.S. What’s better than fresh bamboo towels waiting at their door when they come back from vacation?

Cover the in-store special promotion: when customers buy 3 individual bath towels, they get the fourth at 50% off!

Who likes product guarantees? Your customers do! Touch on the 90-day 100% Satisfaction guarantee.

- 55 -

WOMEN’S APPAREL In addition to Cariloha’s signature tees, bath and bedding and polos, we offer a variety of clothing options for both men and women. The following are clothing options specifically for women – all made from bamboo and all stylish and practical. You’ll see the potential for combining outfits – this is done by design in order to push the up-sell… Let’s check out the different options in women’s apparel.

Cross Front Tank o Made from 57% Viscose from Bamboo/38% Organic Cotton/5%

Spandex-Terry This mix of material makes this tank soft and feeling more like

cotton. There will be an elastic feel to the fit because of the spandex-terry. This tank is form-fitting

o Sizes available are XS-2XL o Colors offered are: chocolate & light blue; and sage & white o Goes great with any type of bottom – leggings, shorts, skirts or pants o Retail price - $50

Halter Dress o This is a full body dress – form-fitting with an open back. Perfect for any

occasion. o Made from 57% Viscose from Bamboo/38% Organic Cotton/5%

Spandex-Terry This material may shrink a little – maybe ¼ of an inch

o Sizes available – XS-2XL o Colors offered are: chocolate & light blue; sage & white; and

kaleidoscope. o Retail price - $85

Misty Jacket o This is a cool, lightweight jacket great for running around town – or for

active wear. It’s part of a clothing combination, so push the up-sell with the corresponding Misty Capri. It also has a cool embroidered design on the front which adds to the texture of the jacket.

o Made from 57% Viscose from Bamboo/38% Organic Cotton/5% Spandex-Terry

A nice, soft feel – thermal regulating and form-fitting as well o Sizes available – XS-2XL o Colors offered are: light blue & chocolate; and chocolate and cream o Retail price - $80

Misty Capri o The matching combo to the Misty Jacket. It has two front pockets and a

draw-string waist.

- 56 -

o Made from 57% Viscose from Bamboo/38% Organic Cotton/5% Spandex-Terry

Because of the fabric mix, these capris will feel more comfortable – more like lounge wear than the other Harper capris.

o Sizes available – XS-2XL o Colors offered are: light blue, and chocolate o Retail price - $70

Harper Capri o A little dressier than the Misty Capri. Has a button waist closure – two

front hip pockets and two additional cargo pockets on the side. It has legging ties to adjust the Capri to the desired length.

o Made from 57% Viscose from Bamboo/38% Organic Cotton/5% Spandex-Terry

o Sizes available – XS-2XL o Colors offered are: khaki, light blue and sage o Retail price - $85

Sydney Skirt o A flowing long skirt – dresses up any outfit. o Made from 60% Organic Cotton/40% Viscose from Bamboo

It’s very comfortable and cool when it’s hot! o Sizes available – XS-2XL. Comes with a draw-string waist. o Colors offered are: white and chocolate o Retail price - $70

Machine washable cold with like colors. Tumble dry low. o Encourage your customers to dry their bamboo women’s apparel on

low to ensure maximum softness and fabric performance. o Avoid the use of fabric softener when washing Cariloha’s bamboo

women’s apparel. Fabric softener tends to build up on the bamboo fibers and actually can make the bamboo fabric less soft.

Fabric is 3 degrees cooler than cotton and wicks moisture away from your body.

In Conclusion By way of review of the women’s apparel – if you didn’t catch it before, this is your last chance!

LET THEM TOUCH IT!! Cariloha’s bamboo women’s apparel is an everyday luxury. When selling these products focus on how great they feel – use the display when selling – let your customers touch and feel the softness. Really sell the many clothing combinations – help your customers mix and match outfits by suggesting combinations!

Talk about the qualities of bamboo clothing – thermal regulating, moisture wicking – make sure the customer can see these features. These products are

- 57 -

high ticket items – show confidence in them by demonstrating them early on in the sale.

Cariloha’s bamboo women’s apparel is durable – long lasting. Assure your customers it’s money well spent, not only because of the softness of the products, but the practicality of them. You can wear them anywhere and anytime – not just on vacation.

Who likes product guarantees? Your customers do! Touch on the 90-day 100% Satisfaction guarantee.

- 58 -

MEN’S APPAREL In addition to Cariloha’s signature tees, bath and bedding and polos, we offer a variety of clothing options for both men and women. The following are clothing options specifically for men – all made from bamboo and all stylish and practical. You’ll see the potential for combining shirts and shorts – this is done by design in order to push the up-sell… Let’s check out the different options in men’s apparel.

Biscayne Short Sleeve Shirt o A classic full button shirt – with a pocket. Smaller stripes allow for a

less-colorful option; straight hem at the bottom. o Made from 57% Viscose from Bamboo/38% Organic Cotton/5%

Spandex-Terry This shirt feels lightweight but durable. True to size and more of

a fitted style as opposed to an open and flowing fit. o Sizes available – S-2XL o Retail price - $80

Nags Head Short Sleeve Shirt o Companion to the Biscayne shirt – more drastic in color as the stripes

are a little thicker – more solid color pattern with a front pocket. o Made from 60% Organic Cotton/40% Viscose from Bamboo

Offers more of a loose fit – more of a gentle fit o Sizes available – S-2XL o Retail price - $80

Short Sleeve Solid Shirt o Nice solid color full button shirt – includes a front pocket. o Made from 57% Viscose from Bamboo/38% Organic Cotton/5%

Spandex-Terry This shirt feels like it has a little stretch to it – it’s more of a fit

like the Biscayne. o Sizes available – S-2XL o Color options are: navy & white o Retail price - $80

Cuddy Cargo Short o Basic cargo shorts for men. 6 pockets total – two side cargo pockets.

Goes great with the button up shirts – great for suggestion selling – suggest the entire collection!

o Made from 55% Organic Cotton/45% Viscose from Bamboo Twill Durable, yet comfortable. Not rigid or stiff.

o Sizes available – Men’s waist 32-42 o Colors offered are: black, khaki & olive green

Goes with any of the shirts we offer! Suggest the sale! o Retail price - $65

- 59 -

Machine washable cold with like colors. Tumble dry low. o Encourage your customers to dry their bamboo men’s apparel on low

to ensure maximum softness and fabric performance. o Avoid the use of fabric softener when washing Cariloha’s bamboo

men’s apparel. Fabric softener tends to build up on the bamboo fibers and actually can make the bamboo fabric less soft.

Fabric is 3 degrees cooler than cotton and wicks moisture away from your body.

In Conclusion Let’s take a look at some helpful hints when selling the Cariloha bamboo men’s apparel:

LET THEM TOUCH IT!! Cariloha’s bamboo men’s apparel is an everyday luxury. When selling these products focus on how great they feel – use the display when selling – let your customers touch and feel the softness. Really sell the many clothing combinations – help your customers mix and match outfits by suggesting combinations!

Talk about the qualities of bamboo clothing – thermal regulating, moisture wicking – make sure the customer can see these features. These products are high ticket items – show confidence in them by demonstrating them early on in the sale.

Cariloha’s bamboo men’s apparel is durable – long lasting. Assure your customers it is money well spent, not only because of the softness of the products, but the practicality of them. You can wear them anywhere and anytime – not just on vacation.

Who likes product guarantees? Your customers do! Touch on the 90-day 100% Satisfaction guarantee.

- 60 -

BAMBOO BELT One of the unique clothing accessories Cariloha offers is a hand crafted bamboo belt – featuring alternating coconut and bamboo sections. This is a stylish and island inspired accessory that can be the missing piece to any Cariloha outfit. Colors available: Natural Retail price: $20 Helpful Hints

Cariloha’s bamboo belt is versatile and can go with many different styles of clothing.

This bamboo belt is adjustable – able to fit most sized shoppers. This is an important part of the sale – show how the belt adjusts to different sizes, demonstrate it as a sales associate.

Cariloha’s bamboo belt is island inspired to the core. Point out to your customers that it not only has bamboo sections, but coconut sections as well.

Push this belt as a practical luxury. It’s a conversation piece. How many friends of theirs can say they have a bamboo/coconut belt? Push this when forming your benefit statement to your customer.

Practice Makes Perfect Try some role-play scenarios using the following ideas:

Role-play a scenario where the customer wants to purchase the belt but isn’t sure for what occasions they would wear it – and for that reason they’re unsure. Close the sale.

Explain the benefits of having a bamboo belt to a customer.

This item is a unique clothing accessory to many clothing options. Use the bamboo belt as a great up-sell item after the customer has purchased higher ticket items.

- 61 -

EMPLOYEE ESSENTIALS (extended training regarding employee expectations)

- 62 -

EMPLOYEE ESSENTIALS #1

GENERAL POLICIES & PROCEDURES At Cariloha, we are committed to “soft, cool, clean and green” – the style of the Caribbean meets the Spirit of Aloha. That’s Cariloha’s mission. Nothing really sums up what we do better. In our pursuit of achieving our mission, we need structure to maintain a high level of professionalism and equality in the workplace. Just like any business, community or educational setting, Cariloha has certain policies and rules that help govern the business and maintain the image that we wish to portray to our customers and the public. You are an important part of this image because what you do and how you do it directly reflects Cariloha to the public. As you abide by these guidelines, your fellow employees will respect you and they, in turn, will be motivated to follow your example. When you are at work, we ask for your support and compliance to the following policies and procedures put into place by Cariloha’s executive committee: (1) Cariloha has in place a zero-tolerance policy with regards to the following items:

Theft

Dishonesty

Working under the influence (alcohol or drugs)

Illegal drugs of any kind

Pornography of any kind

Sexual Harassment (2) While at Cariloha, employees are expected to wear Cariloha attire on the sales

floor. (3) Employees are expected to arrive to work on time for their corresponding shift. (4) Employees are to work when scheduled unless prior arrangements have been

made. (5) The owner/manager will make you aware of any other local rules and regulations,

policies or procedures pertinent to their specific store. We appreciate your adherence to these and other policies and procedures set forth in your Cariloha location. We also appreciate your positive attitudes and willingness to help others see the importance of following these guidelines. Take ownership in the workplace. Make it the type of working environment that you have always wanted to be a part of. If you see fellow co-workers disobeying these rules, feel empowered to remind them of the rules. If they fail to comply and you see the situation getting worse, talk to your manager. Your manager will handle all situations with the highest

- 63 -

sense of urgency and professionalism. Feel confident that any and all conversations regarding such issues will be confidential. These policies govern all who work for Cariloha in any given capacity within the store. No one is above these rules. When new employees are hired, you and the manager take the responsibility of training the new employee on the business culture and the rules that are in place. Individual store owners may also have additional rules, policies and guidelines to abide by. Know and understand each one. Commit yourself to following the rules. You can show by example that the rules are important, and everyone can still have fun at work with a set of specific policies. If all employees sell themselves on the culture of Cariloha, and the need therein to abide by the rules with a positive attitude, the store will have success in sales, employee-management relations and employee-customer relations. Years ago in Athens, Greece, every young man who reached the age of 18 made a special oath to the city of Athens. Taking the oath was an act of respect and honor. They promised to uphold all good things and to shun the bad and negative things. The oath is called the Athenian Creed:

Athenian Creed

We will never bring disgrace on this our city by an act of dishonesty or cowardice, We will fight for the ideals and sacred things of the City, both alone and with many, We will revere and obey the City’s laws, and will do our best to incite a like reverence and respect in those above us who are prone to annul them or set them at naught, We will strive increasingly to quicken the public sense of civic duty, Thus in all these ways we will transmit this City, not lessened, but greater and more beautiful than it was transmitted to us.

This creed is applicable to Cariloha and what we want to accomplish in every store; the feeling of oneness and special unity. Let’s take a page out of history and commit ourselves to upholding the rules, and to making your Cariloha store a modern-day Athens. What are some other ways you can show support for the policies of your specific store? Make a goal to live by any and all company rules and regulations if you are not doing so right now. Share that goal with your manager. Is there a certain rule that is hard for you to comply with? Focus on that difficulty and make a goal to overcome that specific area. Talk with your manager so that he/she is aware. They will be able to help you. Do you know of any employee who is currently not abiding by the company policies? If you do, talk with the store manager

- 64 -

immediately. The manager will try to help them resolve any doubts or questions they may have.

- 65 -

EMPLOYEE ESSENTIALS #2 EMERGENCY PROCEDURES The movie Apollo 13 starring Tom Hanks is an incredible film. We can learn so much from the circumstances and situations portrayed in the movie. What could have been one of the most disastrous space missions ever, turned out to be one of the most famous stories of heroism in our time. The astronauts of Apollo 13 encountered so many obstacles that could have gone wrong. The scientists at NASA were responsible for so many little bits of research that could have been overlooked. All of the required calculations had to be perfect. It’s no coincidence those three astronauts returned home to their native earth safely. NASA has a standard operating procedure, a standard emergency plan, and even a contingency plan, but nothing could have prepared them for the challenges they faced in bringing the spacecraft safely to earth that day. How did they do it? That’s simple, they never stopped trying and they thought through every action, asking themselves the question: “If I do this, what will be the outcome?” “How will the outcome affect other variables and the outcome of those?” We encourage that kind of thinking in any Cariloha store from any employee or manager. Stop and Think In creating this emergency procedure chapter, the most important procedure we can teach and emphasize is systematic analysis. Think of how your decision will affect your outcome and other possible outcomes. We can’t predict every emergency that will occur within a Cariloha store – one of a million things could happen and have happened. What we can do is teach and practice the following: NOTHING IS EVER IMPOSSIBLE, ANYTHING AND EVERYTHING CAN BE RESOLVED. As employees in Cariloha stores, we should always convey the “own it” and “resolve it” mentality. Customers should always feel that we are in a position to handle their biggest concern or smallest inquiry. Imagine what would have happened if the scientists at NASA would have quit and dismissed Apollo 13 as an impossible problem. Imagine what would have happened if the astronauts would have settled for less than a solution to their problem. A lesson we continuously teach in our management teams is as follows: “give me the facts, and I’ll add the emotion later.” When an emergency arises and information needs to be conveyed to a manager or owner, or to corporate, you should know that solutions will be made at a quicker rate if just the facts are presented in an unbiased way. Present your managers with the facts and let them process those facts. No one benefits from having employees and customers emotionally distraught. As an employee, you are always in control; never panicking. Remember absolutely nothing is impossible, and anything and everything can be resolved. Keep your cool, treat others with respect, and include the facts not the emotion.

- 66 -

Here are a few problems that may arise and some solutions to these problems: Your manager may have additional procedures. Follow the lead of your manager.

Credit Card rejected or denied: Assure the customer that it’s probably the machine or the connection and try again. If the card does not process, assure them that it may be the bank or a customer care precaution. Ask them if they have another credit card or any other means to cover the purchase amount. If not, and they need to call the bank to activate the card, if there isn’t a long line; allow them to use the telephone. If there is a long line, direct them to the nearest public telephone.

Power Outage: If the power goes out in your store, and there is no light, remain calm and composed. Kindly guide the customers to the door and help them out of the store. In the event of a power outage, close the store to avoid any risk of theft and personal injury. Keep a flash light ready in case of any emergencies. Secure the point of sale machines against any power surges for when the power comes back on. If the phones are working, call the power company to find out the extent of the black-out and an approximate time for power restoration. Depending on the location, you may still remain open as long as customers can pay with cash or a traveler’s check. Receipt booklets should be in every store, allowing for hand-written receipts. Once the power comes back on, enter the transactions into the POS system.

Absence of product: If you experience an absence or shortage of product due to unusually high demand of a certain style or product, please follow these steps. Fill the empty shelf with a different product. When asked about the availability of the product, inform them that due to high demand we are currently out of the product. If they ask you to check in the back, do so even though you may know that there is no more of the product in stock. Try to sell the customer on another similar product or something that will appeal to them.

Just like in any other place of business, problems will happen occasionally. Your manager should have a well-outlined plan of emergency for specific issues that may come up in your area. Make sure you review these emergency procedures often to prepare for the unexpected. Again, we want to stress the importance of you as an employee having the ability to solve problems. Think through the results of your decisions before you make them, and ask yourself how they will affect other outcomes. When faced with a problem that your manager needs to be made aware of, simply relay the facts and let your manager add the emotions. Keep your cool and help everyone else do the same. You will be surprised how the training to handle possible problems will help you most when you least expect it. Remember, there are no problems, just solutions.

- 67 -

EMPLOYEE ESSENTIALS #3 Creating the ultimate Cariloha Experience has much to do with the professional look of Cariloha. Store Cleanliness and Merchandising Merchandising product correctly and effectively is one of the hidden gems in retail. Cariloha’s Design department has provided specific details about proper merchandising techniques for your individual Cariloha store in Cariloha’s Store Display Manual. Please consult this manual for answers about proper display and merchandising of any product. If a product is displayed in the correct manner, sales will soar. If the same product is displayed in an ineffective manner, no one will see it, touch it, or buy it. In the book Why We Buy, by Paco Underhill, the importance of displaying a product is brilliantly illustrated using the following example: All shoppers reach right, most of them being right handed. Imagine standing at a shelf, facing it—it’s easiest to grab items to the right of where you stand, rather than reaching your arm across your body to the left. In fact, as you reach, your hand may inadvertently brush a product to the right of the one you’re reaching for. So if a store wishes to place something into the hand of a shopper, it should be displayed just slightly to the right of where he or she will be standing. Plan-o-grams, the map of which products are stocked where on a shelf, are determined with this in mind: If you’re stocking cookies, for instance, the most popular brand goes dead center—at the bull’s eye—and the brand you’re trying to build goes just to the right of it. (Why We Buy, pgs. 77-78) Merchandising and displaying products is a science. Give special attention when choosing what to display and how to display it. Take some time and ask yourself the following questions: (Share your answers with your manager.)

What designs fit better in your specific location? What sells better?

Are there bottlenecks in your floor plan? Are there areas where your product may be missed?

What will stop the customer? What will communicate to them that everything we have is made of bamboo?

Are all accessories grouped together? Is merchandise highly visible to promote sales and to prevent theft?

Consult the store display manual for the correct procedures and suggestions to remedy any of these situations.

All members of the Cariloha team should play a part in the up-keep and organization of the store. Begin the day clean and organized, and end the day the same way.

- 68 -

Those employees who work in the morning need to arrive a little early to make sure the store is suitable for guests. Here are a few items that you should go over before opening:

Dust and clean the window display

Dust all surface areas

Tidy and update all mannequins’ clothes and jewelry

Sweep walkway in front of the front door

Clean door mat

Adjust music to the proper level Just as the employees who begin the day need to arrive a little early, the employees who end the day need to plan on staying a few extra minutes to take care of the following responsibilities:

Refold all shirts that have been unfolded and straighten them

Ensure that all shirts are on the proper shelves and hung up.

Ensure that all shirts have size stickers or all shelves have size tags

Organize the cash wrap

Mop or vacuum the floor

Water plants

Clean dressing room and bathroom Every team member is expected to participate in these responsibilities. The look, feel and cleanliness of the store will reflect how it is run, and your dedication to the operation. In the quest to provide the ultimate Cariloha Experience, you will need to cover each of the points discussed in this chapter. Prepare the store by cleaning up and keeping things organized, which will prepare your customers to have a shopping experience like none other on earth!