CALHOUN, GA.—Citing the tough economic climate, Faus announced that as of June 3, it changed its distribution strategy and is going directly to the specialty retailers.

Juan Flores, Faus’ president, said the economy and the state of the industry have created an opportunity for a new business model that will allow the company to take its products, merchandising and programs directly to retailers. The current state of affairs “demand tough decisions and this is the best way to service our existing and future customers.”

The decision was made, he told FCNews, following Faus’ success of having to go direct after the demise of Hoboken Floors which affected about 1,000 of its retail customers. In addition, it has been handling its national accounts via the direct route.

Faus will utilize the same method to service its other 1,400 accounts across the country. “Logistics is not the hard part,” Flores said. “We have already been working with regional companies. We have our own 200,000 square foot warehouse here with inventory that we make in the U.S.”

Inventory is also warehoused around the country via the logistics companies, in places such as Reno, Nev.; Chicago; Seattle, as well as in the Northeast, Mid-Atlantic, West Coast and Florida.

“The biggest challenge is not logistics,” Flores emphasized. “It’s telling the Faus story on a personal level. The best way to tell our unique story is to do it ourselves.” The important thing to note, added Ken Freedman, Faus’ director of sales, “We still handle all the customer service contact.” The new strategy will allow the company’s sales force to have a more personal relationship with customers “and take destiny into our own hands.”

Under the system, noted Steve Ehrlich, Faus’ director of marketing, dealers will be able to order online, receive expert customer service support and “get high-quality service from our dedicated sales force.”

Flores said the company going direct should not be taken as a sign it is cutting back. In fact, regional sales managers will have the ability to grow their sales forces as needed. Plus, executives including Flores, Freedman and Ehrlich will be on the road more visiting with dealers.

“Even in the tough economic times,” he concluded, “we continue to make large investments in our product lines and factories and will continue to do so. And when the economy rebounds, we will be in a position to invest even more in our sales force and consumer ads.”

For more on Faus, please call 888.231.3287.