Article Number : 1060 |
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| Date | 5/17/2006 9:02:32 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=1060 |
| Abstract | By Steven Feldman Atlantic City, N.J.—It’s been four years since Bayard Sales rolled out the Baylink marketing program to its core dealers. How successful has it been? According to Don Wohlfarth Jr... |
| Article | By Steven Feldman Atlantic City, N.J.—It’s been four years since Bayard Sales rolled out the Baylink marketing program to its core dealers. How successful has it been? According to Don Wohlfarth Jr., president of Bayard, about one-third of the company’s active customers are now Baylink dealers, representing 63% of the distributor’s business. Baylink launched in 2002 with 233 members. After a couple of years of growth, the group skyrocketed last year with about 240 additions. Membership now stands at 576 and is projected to reach 700 by year’s end. It begs the question, “Why?” Wohlfarth highlighted its competitive edge over other industry groups. Take retail groups, for example. “The buying groups don’t truck it, they don’t provide credit, they don’t provide service. What they’ve done is create a group of 500 to 1,000 retailers and leveraged that into buying power.” He recalled reading the number one reason many retailers join these groups is for is a sense of belonging, followed by marketing and branding, a rebate program and pricing, in that order. “If you make a commitment to a good distributor, I can’t see the difference between that and a buying group,” said Baylink member Marc Goldman, The Paint Store, Mercerville, N.J. “Bayard can make me competitive with anything across the board.” As for other distributor-oriented groups, like Flooring Plus, Wohlfarth noted that program is on a national basis. “Our program is geared toward the needs of our Mid-Atlantic dealers.” And when it comes to the manufacturer groups, Wohlfarth said Baylink can offer much more variety than any single manufacturer can. “Look at carpet. We can go to Beaulieu, Shaw, Mohawk and Dixie, take their best-selling products [and offer that to our dealers in one display].” In addition, Wohlfarth said one of the biggest differences is the cost of commitment is much less. “We don’t charge anything for our dealers to be part of the program. There are no monthly or annual fees.” Here’s what is required: Dealers must have 75% of Bayard’s core displays (Mercier, Kahrs, Congo S-1000, DuraCeramic, Pergo Emerald and Diamond, and private-label Berber Boutique, Home Décor and Quickship carpet); they must have an overwhelming desire to give Baylink the business, and they must be proactive in promoting Baylink in the marketplace. Baylink dealers like Dave Buhrman, Cloud 9 Flooring, Kennet Square, Pa., see value in the program. Buhrman, a founding member, said Baylink has enhanced his marketing expertise and showroom. “Because it buys from such a broad range of suppliers, we get access to product we normally wouldn’t have access to. And it is able to run price promotions we normally would not be able to do.” He also believes Bayard’s service is the best in industry. “You place an order, you know when you are going to get it.” The Paint Store’s Goldman, also a charter member, said Baylink gives his customers a sense that “my store is bigger than just me. That means they have confidence they are getting a strong price structure. Plus, I now have more clout to handle my own complaints. I know that when I negotiate a claim with a manufacturer it will take care of the problem because of my alliance with Baylink.” What lies ahead? Donnie Wohlfarth, Baylink coordinator and third-generation Wohlfarth to join Bayard, pinpoints technology as the next frontier. “Our vision is to take advantage of technology and show dealers how much we can do for them. Take online ordering. We would love to go completely on-line, but only 9% of our dealers currently take advantage of this.” He also believes Bayard’s new Web site will be an asset to Baylink members. “It allows dealers to utilize our site as a marketing tool.” One aspect he is particularly excited about is a function that will allow the customer to select her flooring and room dimensions, and the exact amount of flooring needed is then sent to the dealer for quotes. |